The Secretary of State to the Chief of the Iranian Trade and Economic Commission ( Saleh )

My Dear Mr. Saleh: Pursuant to our conversation yesterday, I enclose a copy of the standard general provisions72 which have been developed for inclusion in trade agreements. These are substantially the same as those which have been included in many trade agreements to which the United States is a party. However, it should be noted that the enclosed provisions allowed for more flexibility in operation than those included in trade agreements entered into prior to the war. In this connection, you may wish to note particularly Articles 12, 13, and 16 (h) of the draft provisions.

These standard provisions reflect the general principles followed by the Government of the United States in its commercial policy. They have been formulated with two main objectives in view, namely (1) to ensure, for all trade between the two parties to the agreement, mutual equality of treatment with respect to all forms of trade and payments control as well as with respect to customs duties and subsidiary charges of all kinds and (2) to define and safeguard the concessions on specific commodities granted by the two countries to each other.

The provisions which relate to the first of these two objectives are contained in Articles 1 to 6 of the attached draft general provisions. These Articles are not confined in their application to the commodities enumerated in the two Schedules but contain provisions concerning the treatment by each country of its whole trade with the other country.

Articles 7 to 13 contain provisions which relate to the second objective and are confined in their application to the commodities which [Page 278] will be enumerated in the two Schedules forming an integral part of the agreement.

The third group of Articles, 14 to 20, provides for the application of the Agreement.

I will be glad to have any comments you may wish to make regarding the enclosed general provisions, with particular reference to your country.

May I emphasize that it is desirable that both Governments make every effort to avoid any publicity in regard to any proposals under discussion, or even to the fact that such discussions are in progress, until such time as formal announcement of intention to negotiate is agreed upon.

Sincerely yours,

For the Secretary of State:
Harry C. Hawkins

Chief, Division of Commercial Policy and Agreements
  1. Not attached to file copy.