711.632/24

The Secretary of State to the Minister in Austria (Washburn)

No. 605

Sir: In further reference to Articles XI and XII of the Treaty of Friendship, Commerce and Consular Rights, under negotiation between the United States and Austria, you are instructed as follows:

You may call the attention of the Austrian negotiators to Article XIV of the Treaty of Friendship, Commerce and Consular Rights, between the United States and Estonia, signed December 23, 1925, two copies of which are enclosed,91 which contains a most favored nation clause in regard to the treatment of commercial travelers, and to paragraph 2 of the Protocol of that Treaty relating to certificates of identification of such travelers. (Treaty Series No. 736).

If the Government of Austria should desire the substitution of an Article stipulating generally for most favored nation treatment for commercial travelers instead of Articles XI and XII of the draft under negotiation, this Government would be willing to give consideration to agreeing thereto.

An article drafted by this Government combining the provisions of paragraph 2 of the Protocol of the Treaty with Estonia, somewhat modified, with Article XIV of that Treaty, has been included in drafts of treaties of friendship, commerce and consular rights which this Government has submitted to other countries. The Article reads:

“Commercial travelers representing manufacturers, merchants and traders domiciled in the territories of either High Contracting Party shall on their entry into and sojourn in the territories of the other Party and on their departure therefrom be accorded the most favored nation treatment in respect of customs and other privileges and of all charges and taxes of whatever denomination applicable to them or to their samples.

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“If either High Contracting Party require the presentation of an authentic document establishing the identity and authority of a commercial traveler, a signed statement by the concern or concerns represented, certified by a consular officer of the country of destination shall be accepted as satisfactory.”

You will observe that the first paragraph provides for the most favored nation treatment of commercial travelers representing manufacturers, merchants, or traders, domiciled in the territories of one of the Contracting Parties upon their entrance into, sojourn within and departure from the territories of the other. The second paragraph covers the cases where a certificate of identity of the commercial traveler may be required. This Government will be glad to agree to the inclusion of this Article in the treaty under negotiation with Austria instead of Articles XI and XII of the original draft, if after consideration of the facts in regard to the treatment which would be accorded under such an Article to American commercial travelers in Austria, it should decide that that treatment would be satisfactory. Under the Article stipulating for most favored nation treatment, Austrian commercial travelers in the United States would be entitled to the benefit of the provisions of Articles XI and XII of the Treaty of 1925 between the United States and Hungary and of Articles XIV and XV of the Treaty of 1923 between the United States and Germany, so long as those treaties remain in force. It is to be noted, therefore, that Austrian commercial travelers in the United States will enjoy the same treatment under the most favored nation clause as they would enjoy under Articles XI and XII as originally drafted. Before you agree to the insertion of this Article in the Treaty with Austria the Department would be glad to receive from you a report on the treatment which American commercial travelers in Austria would be entitled to receive thereunder in order that further instructions may be given you in regard to it. The Department is taking this question up with the Department of Commerce which may already have sufficient information in regard to the treatment accorded commercial travelers under Austrian laws and regulations, to enable this Government to reach a decision and telegraph instructions to you before receiving a report from you.

The Department does not desire to introduce any new questions into the negotiations with Austria which would cause delay in completing them. It will be satisfactory to this Government if, before further instructions are sent to you concerning the provisions relating to commercial travelers, the Treaty is signed having Articles XI and XII of the original draft included therein, modified pursuant to your despatches and the Department’s instructions preceding this instruction. It is thought, however, that consideration of the foregoing by the Legation and the Austrian Foreign Office may be useful.

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Two copies of the Article in regard to commercial travelers hereinabove quoted are enclosed. If it is included in the Treaty, Articles XI and XII of the draft should be dropped out, the new Article should be numbered Article XI and Articles XIII and following of the draft should be renumbered Articles XII and following.

I am [etc.]

Frank B. Kellogg