Foreign Relations of the United States Diplomatic Papers, 1937, The Far East, Volume IV

711.922/101a: Telegram

The Acting Secretary of State to the Minister in Siam (Neville)

Washington, November 2, 1937—7 p.m.

26. Department’s 25 of November 2, 5 p.m. Confirmation of agreement reached as follows on Draft 2:

• Article 1, paragraph 1 delete “or on the same terms as the nationals of the most favored nation.” Otherwise unchanged.
• Article 1, paragraphs 2 and 3 unchanged.
• Article 1, paragraph 4 delete “or nationals of the most favored nation.”
• Article 1, paragraphs 5 and 6 unchanged.
• Article 1, paragraphs 7 and 8 subject to final disposition in accordance with Department’s telegram No. 24 of November 1.
• Article 1, paragraphs 9 and 10 unchanged.
• Article 2 unchanged.
• Article 3 unchanged, except omit all references to control of international payment, including sub-paragraphs (a), (b), (c). Final paragraph of Article 3 unchanged.
• Article 4 omitted.
• Articles 5 and 6 unchanged.
• Article 7. Delete “and export bounties.” Otherwise unchanged.
• Article 8 unchanged.
• Article 9, paragraph 1 unchanged. Second paragraph as follows:

  “It is understood 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.”

• Articles 10, 11, 12, 13 and 14 unchanged.
• Article 15 substitute “rightful” for “legal or equitable” in paragraph 5. Otherwise article unchanged.
• Articles 16 and 17 unchanged.
• Article 18, paragraph 5 omitted, but otherwise article unchanged.
• Article 19 unchanged.
• Article 20, substitute “include” for “comprise” and delete “claim and.” Otherwise unchanged.
• Article 21, paragraphs 1 and 2 omitted and paragraphs 1 and 2 of Article 27 of Draft 1 substituted therefor. Paragraph 3 unchanged.
• Article 22, paragraph 1 reads “This treaty shall be ratified, and the ratifications thereof shall be exchanged at Bangkok”. Second paragraph unchanged.

In engrossing treaty, protocol and exchange of notes be careful that the name of the United States appears first in the copy to be retained by you.

Text of protocol follows. Note changed preamble.

“At the moment of proceeding this day to the signature of the treaty of friendship, commerce and navigation between the United States of America and the Kingdom of Siam, the undersigned Plenipotentiaries have adopted the present Protocol which will have the same validity as if the provisions thereof were inserted in the text of the treaty to which it refers.

• “(1) It is understood that in all matters for which national treatment is provided in this treaty, 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.
• “(2) It is understood that the provisions of Article 6 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.
• “(3) It is understood that the provisions prescribing most-favored-nation treatment in this treaty 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.
• “(4) It is understood that the payment of just compensation provided for in Article 1, paragraph 3, shall be determined by due process of law, without prejudice to settlement according to international law.
• “(5) It is understood that the most-favored-nation treatment in respect of the control of the means of international payment provided for in the seventh paragraph of Article 3 of this treaty shall be applied unconditionally, and that such control shall be administered so as not to influence to the disadvantage of the other High Contracting Party the competitive relationships between articles originating in the territories of such party and similar articles originating in third countries and so as not to impair the operation of any other provisions of this treaty.
• “(6) It is understood that in the application of the provisions of Article 7, Siam reserves the right to apply, in the matter of compulsory pilotage, the provisions of the convention and statute on the international regime of maritime ports, signed at Geneva, December 9, 1923.
• “(7) It is understood that Siam reserves her national fisheries, which shall continue to be regulated by her national laws.
• “(8) In the event of the establishment of a monopoly for the importation, production or sale of a particular commodity by the Government, or by a private individual or organization under authority of the Government, each Government agrees that in respect of the foreign purchases of such monopoly the commerce of the other 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.”

End of protocol. Please check foregoing against your records and telegraph urgently any discrepancies.

Welles