C.F.M. Files: Lot M–88: Box 2061: CFM Documents

Proposals by the United States Delegation to the Council of Foreign Ministers

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C.F.M. (46) 55

Provisions Regarding General Economic Relations: Treaties of Peace With Rumania, Bulgaria, and Hungary

There is attached a draft article proposed by the United States Delegation for inclusion in the treaty of peace with Rumania. The United States Delegation proposes that the same article, mutatis [Page 297] mutandis, be included in the treaties of peace with Bulgaria and Hungary.

[Enclosure]

Draft Article on General Economic Relations Proposed by United States Delegation73

Pending the conclusion of more comprehensive commercial treaties or agreements between Rumania and the United Nations, the Rumanian Government undertakes, during the three years following the entry into force of this treaty, to accord to each of the United Nations which, in fact, reciprocally, accord similar treatment in like matters to Rumania the following treatment with respect to commerce:

(a)
In all that concerns duties and charges in importation or exportation, the internal taxation of imported goods and all regulations pertaining thereto, the United Nations shall be granted unconditional most-favored-nation treatment.
(b)
In all other matters affecting importation and exportation, there shall be no arbitrary discrimination against any of the United Nations in favor of any other country, whether or not a United Nation.
(c)
Natural and legal persons who are nationals of any of the United Nations shall be granted national and most-favored-nation treatment in all matters pertaining to commerce, industry, shipping, and other forms of business activity within Rumania. This provision shall not be understood, however, to preclude Rumania from restricting the exploitation of natural resources to Rumanian nationals provided that most-favored-nation treatment is accorded, nor shall it preclude Rumania from restricting the coasting trade to Rumanian vessels and the vessels of any of the United Nations which permit Rumanian vessels to engage in the coasting trade of their territories. It is further understood that this paragraph shall not apply to civil aviation, but Rumania will grant no exclusive or discriminatory right to any country with regard to the operation of civil aircraft in international traffic and will afford all the United Nations equality of opportunity in obtaining international commercial aviation rights in Rumanian territory.
(d)
The property in Rumania of natural and legal persons who are nationals of any of the United Nations shall not be taken except by due process of law and upon the payment of just and effective compensation.

The foregoing undertakings by Rumania shall be understood to be subject to the exceptions customarily included in commercial treaties concluded by Rumania prior to 1939, and the provisions with respect to reciprocity by each of the United Nations shall be understood to [Page 298] be subject to the exceptions customarily included in the commercial treaties concluded by that power.

[In a letter dated May 7, 1946, President Truman answered Austrian President Renner’s letter of February 6, 1946, regarding Austria, Europe, and the South Tyrol. The text of President Truman’s letter is included in telegram 467, May 9, 1946, to Vienna, repeated to Paris as 2210, Secdel 218, Volume V, page 340.]

  1. The substance of this draft article was discussed by the Council of Foreign Ministers during its 11th Meeting, May 7, 1946, 11 a.m.; see the United States Delegation Record and the Record of Decisions of that meeting, pp. 258 and 270, respectively.