711.90G2/7

The Secretary of State to the Minister Resident in Iraq ( Knabenshue )

No. 242

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,

For the Secretary of State:
E. Walton Moore
[Enclosure]

Draft of Treaty of Commerce and Navigation Between the United States of America and the Kingdom of Iraq

Preamble

The United States of America and the Kingdom of Iraq, taking cognizance of the provisions of Article 7 of the Convention, signed at London, January 9, 1930, to which the United States of America, Great Britain, and Iraq are Parties, whereby on the termination of the special relations existing between His Britannic Majesty and His Majesty the King of Iraq, negotiations shall be entered into between the United States and Iraq for the conclusion of a treaty in regard to their future relations, have resolved to conclude a treaty of Commerce and Navigation and for that purpose have appointed as their plenipotentiaries;

The President of the United States of America:

and His Majesty the King of Iraq:

Who, having communicated to each other their full powers found to be in due form, have agreed upon the following articles:

Article I

In respect of import and export duties, all other charges imposed on or in connection with importation or exportation, and the method of levying such duties and charges, as well as in respect of transit, warehousing and customs formalities, and the treatment of commercial traveler’s samples, the United States of America will accord to Iraq and Iraq will accord to the United States of America, its territories and possessions, unconditional most-favored-nation treatment.

Therefore, no higher or other duties shall be imposed on the importation into or the disposition in the United States of America, its territories or possessions, of any articles the produce or manufacture of Iraq than are or shall be payable on like articles the produce or manufacture of any other foreign country.

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

Similarly, no higher or other duties shall be imposed in the United States of America, its territories or possessions, or in Iraq, 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 other foreign country;

Any advantage, of whatsoever kind, which either High Contracting Party may extend to any article, the growth, produce or manufacture of any other foreign country shall simultaneously and unconditionally, without request and without compensation, be extended to the like article the growth, produce or manufacture of the other High Contracting Party.

The stipulations of this Treaty regarding the treatment to be accorded by each High Contracting Party to the commerce of the other do not extend:

(a)
to the advantages now accorded or which may hereafter be accorded by the United States of America, its territories or possessions or the Panama Canal Zone to one another or to the Republic of Cuba. The provisions of this paragraph shall continue to apply in respect of any advantages now or hereafter accorded by the United States of America, its territories or possessions or the Panama Canal Zone to one another, irrespective of any change in the political status of any of the territories or possessions of the United States of America.
(b)
to any advantages in customs matters which Iraq may grant to goods the produce or manufacture of Turkey, or of any country whose territory was in 1914 wholly included in the Ottoman Empire in Asia;
(c)
to any advantages which are, or may in the future be accorded by either Party to purely border traffic within a zone not exceeding ten miles (15 kilometers) wide on either side of the customs frontier;
(d)
to any advantages in customs matters which are, or may in the future be accorded to States in customs union with either High Contracting Party so long as such advantages are not accorded to any other State.

Article II

In all that concerns matters of prohibitions or restrictions on importations and exportations each of the two countries will accord, whenever they may have recourse to the said prohibitions or restrictions, to the commerce of the other country treatment equally favorable to that which is accorded to any other country.

In the event either country establishes or maintains import or customs quotas, or other quantitative restrictions, or any system of [Page 770] foreign exchange control, the share of the total permissible importation of any product or of the total exchange made available for importation of any product of the other country shall be equal to the share in the trade in such product which such other country enjoyed in a previous representative period.

Article III

Vessels of the United States of America will enjoy in Iraq and Iraqi vessels will enjoy in the United States of America the same treatment as national vessels.

The coasting trade of the High Contracting Parties is exempt from the provisions of this Article and from the other provisions of this Treaty, and is to be regulated according to the laws of each High Contracting Party in relation thereto. It is agreed, however, that vessels of either High Contracting Party shall enjoy within the territory of the other with respect to the coasting trade the most-favored-nation treatment.

Article IV

Nothing in this Treaty shall be construed to prevent the adoption of measures prohibiting or restricting the exportation or importation of gold or silver, or to prevent the adoption of such measures as either High Contracting Party may see fit with respect to the prohibition, or the control, of the export or sale for export, of arms, ammunition, or implements of war, and, in exceptional circumstances, of all other commodities.

Nothing in this Treaty shall be construed to restrict the right of either High Contracting Party to impose, on such terms as it may see fit, prohibitions or restrictions designed to protect human, animal, or plant health or life, or regulations for the enforcement of revenue or police laws.

Article V

The aircraft of the United States of America shall continue to receive in Iraq the most-favored-nation treatment; provided that the benefit of this provision cannot be claimed in respect of any matter in regard to which the aircraft of Iraq does not receive in the United States of America the most-favored-nation treatment.

Article VI

The present Treaty shall, from the day on which it comes into force supplant Article 7 of the convention between the United States of America and Great Britain and Iraq signed at London January 9, 1930, in so far as commerce and navigation are concerned.

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Article VII

The present Treaty shall take effect in all of its provisions on the day of the exchange of ratifications, and shall continue in force for the term of three years from that day.

If within one year before the expiration of three years from the day on which the present Treaty shall come into force, neither High Contracting Party notifies to the other an intention of terminating the Treaty upon the expiration of the aforesaid period of three years, the Treaty shall remain in full force and effect after the aforesaid period and until one year from such a time as either of the High Contracting Parties shall have notified to the other an intention of terminating the Treaty.

Article VIII

The present Treaty shall be ratified, and the ratifications thereof shall be exchanged at . . . . . as soon as possible.

In witness whereof the respective Plenipotentiaries have signed the present Treaty and have affixed their seals thereto.

Done in duplicate, in English and Arabic, of which texts, in case of divergence, the English shall prevail, at Baghdad this day of . . . . . . ., 193 . .

  1. Ibid., p. 405.
  2. Ibid., 1929, vol. iii, p. 838.
  3. The convention signed at London, January 9, 1930, by the United States, Great Britain, and Iraq, Ibid., 1930, vol. iii, p. 302.