711.002/11–546
Memorandum Prepared in the Division of Commercial Policy1
Status of Commercial Treaty Program
CP has well under way a major program for the negotiation of treaties of friendship, commerce and navigation. The program is designed to modernize and extend the coverage of existing treaties, some of which are more than a century old.2 These instruments determine the basic treaty rights of American nationals, corporations, goods and vessels in foreign countries. In most respects they are completely mutual, assuring the other country the same rights as are obtained by the United States. They complement the provisions of the draft ITO Charter with respect to trade barriers.3
Treaties with more than twenty countries, including some of the most important trading nations, are under consideration.4 Negotiations [Page 1368] with China were concluded and a treaty signed November 4.5 We are actively negotiating with the Lebanon and hope to reach agreement soon. Drafts have been presented to the Governments of the Philippines, Canada, the United Kingdom, Brazil, Egypt and Chile and will be presented to the Governments of Australia and Cuba in the near future. France and the U.S.S.R. have expressed a willingness to negotiate. Work is well advanced on draft treaties for Afghanistan, Iran and Portugal. An interim agreement with the Yemen, containing establishment, consular and commercial provisions was signed May 4, 1946.6
- Forwarded on November 5 by the Chief of the Division of Commercial Policy (Brown) to the Under Secretary of State for Economic Affairs (Clayton).↩
- The planning for the modernization and extension of the commercial treaty structure of the United States began in the Department of State in 1944. The impetus for the program lay in the fact that as of the 1940’s there were in force fewer than 30 “reasonably comprehensive” commercial treaties, more than half concluded in the 19th century, and of these “a considerable number” in the period 1800–1850. Additionally, there were in effect some 40 treaties and executive agreements, exclusive of reciprocal trade agreements under the Act of 1934, which dealt in some measure with subjects “appropriate for inclusion in such general treaties”. (Department of State Classified Weekly Report, Current Economic Developments, Issue No. 31, January 21, 1946, p. 9)↩
- For documentation on this matter see ante, pp. 1263 ff.↩
- In December 1944 the top-echelon interdepartmental Executive Committee for Economic Foreign Policy (regarding this committee, see footnote 36, p. 1283) recommended that the Department of State should “press forward” with the negotiation of treaties of friendship, commerce and navigation (FCN treaties) with the countries of Latin America. A similar recommendation was made by the committee in April 1945 in respect of the countries of the Near and Middle East. ( Ibid., p. 9) General draft articles were of course modified and adapted to the institutions and practices of individual countries.↩
- This, the first FCN treaty negotiated under the new program, had a special background. The treaty of January 11, 1943 between the United States and China provided for the initiation of discussions for an FCN treaty not later than 6 months after the ending of the war. Actually a draft was presented to the Chinese Government on April 2, 1945 for use as a basis for discussion. See vol. x, bracketed note, p. 1227.↩
- Documentation regarding these bilateral discussions may be found in the appropriate regional volumes. In the Department’s office lot files there are two collections dealing with the United States effort to modernize the commercial treaty system. The papers are arranged on a country basis dealing with the United States effort to modernize the commercial treaty system, Lot 58–D814, “Chronological Files of the Commercial Treaties Branch [of the Division of Commercial Policy]” (1 box), and Lot 59–D669, “Negotiating Texts Used in Postwar FCN Treaty Program” (2 boxes).↩