611.60 d 31/24

Memorandum by the Under Secretary of State (Grew)

The Finnish Minister left with me today the appended revised draft as a counter proposal of the Finnish Government for an exchange of notes to establish a modus vivendi for reciprocal most-favored-nation treatment. I said that we would study the matter and, if necessary, would request him to come again to the Department to explain any points in the revised draft which might not be clear.

With respect to the consular provisions, the Minister said that these had been incorporated in the draft as they would tend to commend the document to Parliament which, without them, might not favor the proposed procedure.

J. C. G[rew]
[Enclosure]

Revised Draft for cm Exchange of Notes Between the Finnish and American Governments

Sir: I have the honor to make the following statement of my understanding of the agreement reached through recent conversations held at Washington on behalf of the Government of the United States and the Government of Finland with reference to the treatment which the United States shall accord to the commerce, navigation, citizens, corporations and Consuls General, Consuls, Vice Consuls [Page 89] and Consular Agents of Finland and which Finland shall accord to the commerce, navigation, citizens, corporations and Consuls General, Consuls, Vice Consuls and Consular Agents of the United States.

These conversations have disclosed a mutual understanding between the two Governments which is that in respect to import and export duties, light, harbor, port and tonnage dues and all other charges affecting commerce and navigation, as well as in respect to transit, warehousing and other facilities, and the treatment of commercial travelers’ samples, and in respect of any taxes, imposts or charges of whatever denomination, the United States will accord to Finland, and Finland will accord to the United States, its territories and possessions, unconditional most-favored-nation treatment; and that in the matter of licensing or prohibitions of imports or exports, each country, so far as it at any time maintains such a system, will accord to the commerce of the other treatment as favorable, with respect to commodities, valuations and quantities, as may be accorded to the commerce of any other country.

It is understood that

No higher or other duties shall in any case, be imposed on the importation into or disposition in the United States, its territories or possessions, of any articles the produce or manufacture of Finland than are or shall be payable on like articles the produce or manufacture of any foreign country;

No higher or other duties shall, in any case, be imposed on the importation into or disposition in Finland of any articles the produce or manufacture of the United States, its territories or possessions, than are or shall be payable on like articles the produce or manufacture of any foreign country;

Similarly, no higher or other duties shall be imposed in the United States, its territories or possessions, or in Finland, on the exportation of any articles to the other or to any territory or possession of the other, than are payable on the exportation of like articles to any foreign country;

The citizens and corporations of the United States, its territories and colonies, shall be accorded in Finland, and the citizens and corporations of Finland, shall be accorded in the United States, its territories and colonies in every respect a treatment not less favorable than that which is accorded to the citizens and corporations of the most favored nation.

The Consuls General, Consuls, Vice Consuls and Consular Agents of the United States and Finland, in the territories and colonies of the other, shall enjoy all of the rights, privileges, liberties, favors, exemptions and immunities that, are enjoyed by consular officers of the same rank and quality of the most favored nation.

[Page 90]

Every concession with respect to any duty, charge or regulation affecting commerce and navigation, or treatment of citizens and corporations, or concerning the rights and privileges of Consuls General, Consuls, Vice Consuls and Consular Agents now accorded, or that may hereafter be accorded by the United States or by Finland, by law, proclamation, decree or commercial treaty or agreement, to any third country will become immediately applicable without request and without compensation to the commerce, navigation, or treatment of citizens and corporations, or concerning the rights and privileges of Consuls General, Consuls, Vice Consuls and Consular Agents of Finland and of the United States and its territories and possessions, respectively:

Provided that this understanding does not relate to

(1)
The treatment which the United States accords or may hereafter accord to the commerce of Cuba or any of the territories or possessions of the United States or the Panama Canal Zone, or to the treatment which is or may hereafter be accorded to the commerce of the United States with any of its territories or possessions or to the commerce of its territories or possessions with one another.
(2)
The treatment which Finland actually accords or may hereafter accord to Esthonia; the treatment in regard to the employment of pilots which Finland actually accords or may hereafter accord to Sweden in respect to navigation north of 59 degrees north latitude; the treatment which Finland actually accords or may hereafter accord to Russia in regard to fishing and sealing in the Arctic waters of Finland; nor the treatment which Finland accords to France in Article 6 of the Treaty of Commerce concluded between Finland and France July 13, 19214
(3)
Prohibitions or restrictions of a sanitary character or designed to protect human, animal or plant life.

It is understood that the present arrangement, with the exception of the stipulations concerning customs duties and navigation, shall not become operative until both parties have notified each other that the necessary legislative measures have been carried out, but that the stipulations concerning customs duties and navigation shall be applied after the expiration of thirty days from the day I shall have received your confirmation of this arrangement. The arrangement shall, thereupon, be in force until the ordinary Treaty of commerce, navigation and consular representation to be concluded, shall have come into force, unless, prior to that time, either contracting party shall have given notice of its intention to terminate the same, in which case this arrangement shall cease to be in force three months after the notice of termination.

I shall be glad to have your confirmation of the accord thus reached.

Accept, Sir, etc.

  1. League of Nations, Treaty Series, vol. xxix, p. 445.↩