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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 776

  Each of the High Contracting Parties agrees that, in respect of
the foreign purchases of any state monopoly for the importation, pro-
duction, or sale of any commodity or of any agency having such
monopoly privileges, the commerce of the other High Contracting
Party shall receive fair and equitable treatment, and that, in making
its foreign purchases, such monopoly or agency will be influenced
solely by those considerations which would normally be taken into
account by a private commercial enterprise interested solely in pur-
chasing goods on the most favorable terms.
  Very truly yours,                    For the Secretary of State:
                                                R. WALTON MOORE
The Minister Resident in Iraq (Knabenshue) to the Secretary of State
No. 909-Diplomatic                    BAGHDAD, December 8, 1937.
                                         [Received December 22.]
  SIR: I have the honor to refer to the Legation's despatch no. 860
of August 28, 1937,12 reporting that it had in a note dated August 24
presented to the Foreign Office the Department's observations on and
suggested changes in the amendments submitted by Iraq to the draft
Treaty of Commerce and Navigation under negotiation between our
two Governments.
  I have now received from the Foreign Office in reply a note dated
November 27, 1937, having as its enclosure a draft of the Treaty incor-
porating the proposals already agreed upon between the two Govern-
ments and in addition those amendments proposed in the accompany-
ing note. The note and the draft Treaty were both submitted in
Arabic. However, an English text of the Treaty was also enclosed
and the English of the accompanying note (the language in which it
was drafted) was furnished the Legation by the courtesy of the Legal
Adviser of the Foreign Office. Copies of the English texts of this
note and the draft Treaty are enclosed herewith.
  The Department will note from the enclosures that the Iraqi Gov-
ernment has now accepted Article II with the addition of an intro-
ductory clause and that in Article III the clause concerning the treat-
ment of national vessels has been re-phrased. The phrase "within
the country" has again been inserted by Iraq in clause 2, paragraph
2 of Article IV. In place of the original Article V, the omission of
which at our suggestion is accepted, Iraq has submitted a new Article
reserving to itself the right, should measures taken or maintained by
the United States seriously affect its chief exports, to request the
United States to open negotiations and if agreement be not reached
"2Not printed.

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