611.7131/105: Telegram
The Acting Secretary of State to the Minister in Rumania (Wilson)
17. Your despatch 461, July 5. Please take up negotiation of provisional commercial agreement immediately and endeavor to obtain agreement to following changes in Rumanian draft:
Preamble. Substitute form used in provisional commercial agreement signed February 1, 1926, between the United States and Latvia, Treaty Series 740, for that employed in Rumanian draft.
Article I, Paragraph 2. Substitute following for second paragraph of Article I:
“The natural or manufactured products of each country, in everything concerning importation, exportation, warehousing, transportation, transit, and, in general, all sorts of commercial matters, shall also enjoy in the territories of the other country the treatment accorded the most favored nation.”
Apart from minor textual changes suggested in the interest of clarity the only change above proposed is the omission from the [Page 796] Rumanian draft of the clause pertaining to the treatment of shipping. In view of the fact that common practice of maritime nations is to accord national rather than merely most-favored-nation treatment to shipping, it is suggested that in lieu of the shipping provision in Paragraph 2 of Article I of the Rumanian draft the following new paragraph be added as the final paragraph of Article I:
“Vessels of either country, in everything concerning navigation in the waters and ports of the other country, including duties and charges levied on such vessels or their cargoes, shall enjoy national treatment, provided, however, that the coasting trade of each country is exempt from the provisions of this paragraph.”
Article II. Substitute the following:
“the most-favored-nation treatment shall apply also to the amount and the collection of import duties and other duties as well as to customs formalities and their application, to procedure, to the conditions of payment of customs duties and other duties, to the classification of goods, to the interpretation of customs tariffs and to the methods of analysis of goods.”
You will observe that aside from minor differences the words “la garantie”, which do not appear to add anything to the meaning, have been omitted. If, however, the Rumanian Government desires their retention you should telegraph explanation and ask instructions.
Article IV, Subdivision (c). Substitute the words “in economic or customs union with either contracting party” for the words “for the purpose of conclusion of an economic entente or of a customs union”. This revision is intended merely to make it clear that preferences should not be granted except in the actual consummation of an economic or customs union.
Article IV, Subdivision (d). You should request that the provisions of this subdivision be omitted from the agreement. You may point out that the comprehensive nature of the exemption therein provided for and the uncertainty as to the circumstances in which exception from the obligation to grant most-favored-nation treatment might be claimed, make this Government unwilling to accept such a provision. Moreover, it does not seem essential to deal with the difficult question presented by this proposed exception in connection with a provisional agreement of this kind, which is only intended to be of short duration and which can be terminated by either party on short notice. The matter should be left for discussion in connection with the negotiation of the definitive treaty.
The text of Article XIII and of last sentence of Article I of draft treaty of commerce and navigation enclosed with instruction 101 of March 2013 should be proposed as new subdivisions of Article IV [Page 797] of the provisional agreement, substituting the word “agreement” for “treaty” therein. These provisions, which pertain, respectively, to treatment of commerce of Cuba, Panama Canal Zone and dependencies of United States and to sanitary measures and regulations for enforcement of police or revenue laws are standard provisions of treaties and agreements concluded by United States.
Article V. Substitute the following for the first paragraph of this article:
“The present agreement shall enter into force on September 1, 1930, and unless sooner terminated by mutual agreement shall continue in force for six months and thereafter until thirty days after notice of its termination shall have been given by either party.”
The purpose of the foregoing proposal is to obviate the difficulties and inconvenience incident to renewing the agreement from time to time in case the treaty negotiations are not completed by March 1, 1931.
The following provision should be added to the first paragraph of Article V:
“Should either Government be prevented by future action of its legislature from carrying out the terms of this agreement, the obligations thereof shall thereupon lapse.”
The foregoing provision is customarily included in agreements entered into by the United States which are not submitted to the Senate. It is not contemplated that this agreement will be submitted to the United States Senate for its advice and consent to ratification.
If all of the foregoing proposals are agreed to by the Rumanian Government and no other changes are made, you are authorized to sign the agreement on behalf of this Government. Any proposals for other changes should be communicated by telegraph to the Department, which will instruct you by telegraph in the premises.
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