711.90G2/18: Telegram (part air)

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

11. In continuation of my telegram number 6, April 1 [14], 1 p.m., regarding negotiations commercial treaty, the Iraq Government desires to eliminate entirely the last paragraph article 2 because “the Iraq Government does not wish the inclusion of such a provision in a treaty based on most favored nation treatment and to create a precedent for itself in this respect by accepting the paragraph in question”.

The Iraq Government desires a free hand to deal with other nations such as Japan which has flooded Iraq market without importing anything of consequence and which has already caused Iraq to impose trade restrictions against Japan. As trade balance between United States and Iraq is in favor of latter it is extremely unlikely that the elimination of the paragraph in question would prejudice our interest.

The Iraq Government desires also to amend the last paragraph article 4 to read as follows: after the word “life,” line 4, as follows “or national treasures of artistic historical or archaeological value or [Page 773] regulations for the enforcement of revenue or police laws, or prohibitions or restrictions applied to products which as regards prohibition or trade are or may in the future be subject within the country to state monopoly or monopolies exercised under state control”.

If for any reasons amendments suggested by Iraq Government are not acceptable please telegraph counter proposals in order that negotiations may be expedited. In the meantime I respectfully recommend that my full powers be sent by air mail so as to enable me to sign treaty before my departure on leave early in July which is essential for reasons of health.