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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa

Iraq,   pp. 767-784 PDF (6.7 MB)

Page 775

ment as essential to the satisfactory regulation of our commercial
relations with other countries.
  Provisions similar to those included in the second paragraph of
Article II, but considerably more detailed, are included in the recip-
rocal trade agreements concluded by the United States and in all
commercial treaties now under negotiation. These provisions are
considered to be a necessary complement to the provisions for non-
discriminatory treatment in respect of customs duties and similar
matters embodied in the most-favored-nation clause. While the De-
partment does not, of course, anticipate that either country will dis-
criminate against the other in the matter of import quotas and ex-
change control, it would not be disposed, in view of the fact that the
important principle embodied in the paragraph is customarily in-
cluded in all recent trade agreements and draft treaties, to accede to
the omission of that paragraph in the present treaty. In conveying
the foregoing to the Iraq Government, you should point out that
the provision in question, since it relates only to trade between the
United States and Iraq, does not obligate the Iraq Government to
extend similar treatment to other countries except as such extension
might be required by treaties or agreements to which Iraq is a party.
  For your information, the Department does not consider the ques-
tion of restriction of Japanese imports as particularly relevant in this-
connection, since it is understood that Iraq has no treaty or agree-
ment with Japan providing for most-favored-nation treatment and
since the Iraq Government is now applying special restrictive meas-
ures to imports from Japan.
  The additional reservations suggested by the Iraq Government for
insertion in the last paragraph of Article IV are acceptable to the
Department, subject to the inclusion of a guarantee of non-discrimi-
natory treatment with respect to the matters covered by the paragraph
and with regard to the foreign purchases of monopoly organizations.
The paragraph in question would be acceptable to the Department in
the following form:
  Subject to the requirement that, under like circumstances and con-
ditions, there shall be no arbitrary discrimination by either High
Contracting Party against the other High Contracting Party in favor
of any third country, nothing in this Treaty shall be construed to re-
strict the right of either High Contracting Party to impose (1)
prohibitions or restrictions designed to protect human, animal, or
plant health or life or national treasures of artistic, historical, or
archeological value; (2) prohibitions or restrictions applied to prod-
ucts which as regards prohibition or trade are or may in the future
be subject to state monopoly or monopolies exercised under state con-
trol; or (3) regulations for the enforcement of revenue or police laws.

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