The Secretary of State to the Minister Resident in Iraq ( Knabenshue )
Sir: Pursuant to its telegram No. 14 of June 29, 1936, 5.00 p.m.,2 the Department sends you herewith a draft of a treaty of commerce and navigation between the United States and Iraq. In accordance with the suggestion you made in a conference in the Department on September 14, 1936, the draft follows very closely the treaty of commerce and navigation between the United States and Turkey signed at Ankara October 1, 1929.3 Three copies of that treaty are also enclosed.
A slight change has been made in Article I by substituting in the first line the phrase “the method of levying such duties” for the phrase “including surtaxes and coefficients of increase”. The substituted phrase is believed to be more comprehensive. At the end of the first article the exceptions to the most-favored-nation provision in respect of commerce have been elaborated and clarified.
- Article II, paragraph 2, of the draft herewith enclosed amplifies and clarifies the stipulation for most-favored-nation treatment in respect of quotas. It is the view of the Department that most-favored-nation treatment in respect of quotas and exchange control require that the allocations made under quotas or exchange control will be equal to the share of the trade in a particular commodity enjoyed in a previous representative period.
- Article III of the enclosed draft is similar to the corresponding article of the treaty with Turkey except that a number of exceptions stipulated in the treaty with Turkey are omitted as inapplicable in the case of Iraq. Article IV is more elaborate than the corresponding article in the Turkish treaty but differs very little in substance.
- Article V of the enclosed draft which provides for most-favored-nation treatment in respect of civil aircraft merely confirms the advantages now guaranteed under the existing tripartite convention.4
- Article VI defines the relationship between the proposed treaty and the tripartite convention.
You are requested to inform the Department by telegraph as to the attitude of the Iraqi Government towards the enclosed draft. If accepted as drafted the Department will send you full powers. You should make preparations to have the final text translated into Arabic and engrossed at Baghdad.
Very truly yours,