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.
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.
[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.
[Page 769]
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.
[Page 771]
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 . .
