The Minister in Siam (Neville) to the Secretary of State
[Received October 16—1:55 p.m.]
28. Department’s instruction No. 194 and telegram No. 21, October 12, 3 p.m. Siamese accept Draft 2 with following modifications:
Article 1, paragraph 1, delete “or” through “favored-nation”; provide for favored-nation treatment in final protocol;
Paragraph 3 delete “just” add after “compensation” “according to law” or “on same terms as nationals”;
Paragraph 4 delete “or” through “favored-nation”;
Paragraph 7 immovable property, willing to accept wording of present treaty or omit reference thereto;
Paragraph 8 insert “iron” before “phosphate”.
Article 3: delete under any obligations references to control of international payment, including sub-paragraphs a, b, c and final paragraph, substituting “if either High Contracting Party establishes or maintains, directly or indirectly, any form of control of the means of international payment, it shall in this respect apply to the other High Contracting Party the most-favored-nation treatment.”
Delete Article 4, to reappear in exchange of notes.[Page 862]
Article 7, delete “and export bounties”. Siamese Government pays no bounties and prefers to have no reference thereto in treaties.
Article 8 delete pilotage. Siamese Government charges lower fees for small Siamese coasting vessels.
Article 9, satisfactory but insert as paragraph I “It is agreed that the customs tariffs applicable to articles, the produce or manufacture of either of the high contracting parties imported into the territories of the other, shall be regulated by the laws of the country of importation.” This phrase is desired for use before the Assembly.
Article 11, insert as final paragraph “The national fisheries of the High Contracting Parties are likewise exempt from the provisions of this treaty.”
Article 15 paragraph 5, delete “legal or equitable” substituting “rightful” as Siamese code does not recognize equity.
Article 18 subsection 3, Department’s understanding is correct, the wording is a Geneva formula; delete subsection 5, inserting text unchanged in final protocol.
Article 20, substitute “include” for “comprise” and delete “claim and,” to avoid serious difficulties in translation.
Article 21, for paragraphs 1 and 2, substitute paragraphs 1 and 2 of article 27 of draft 1.
Article 22 paragraph 1, delete all after “soon as possible.”
Final protocol as follows: “At the moment of proceeding this day to the signature of the Treaty of Friendship, Commerce and Navigation between the Kingdom of Siam and the United States of America, the plenipotentiaries of the two High Contracting Parties have agreed as follows:
- It is understood that in all matters for which national treatment is provided in this, the nationals of each of the High Contracting Parties shall not be treated by the other less favorably than the nationals of any other country
- It is understood that the provisions of article 7 shall not be deemed to preclude either of the High Contracting Parties from charging differing rates of license fees for the sale of imported spiritous liquors and of spiritous liquors manufactured by or under license from the State
- It is understood that the provisions prescribing most-favored-nation treatment in this do not apply to any 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, or to 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. In witness whereof, et cetera.”
Siamese Government agrees to exchange of notes in regard to mission lands and settlement of land titles now in dispute in the sense [Page 863]desired by Department. In regard to monopolies suggests following exchange of notes:
“In the event of the establishment of a monopoly for the importation, production or sale of a particular commodity for the profit either of the Government or of a private individual or organization, my Government agrees that in respect of the foreign purchases of such monopoly the commerce of your country shall receive fair and equitable treatment. To this end it is agreed that in making its foreign purchases of any product such monopoly will be influenced solely by those considerations, such as price, quality, marketability, and terms of sale, which would ordinarily be taken into account by a private commercial enterprise interested solely in purchasing such product on the most favorable terms.”