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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
(1937)

Iraq,   pp. 767-784 PDF (6.7 MB)


Page 777


777
IRAQ
within three months from its request, to terminate the Treaty
immediately.
  It is believed that all the changes proposed by Iraq can be accepted
with the possible exception of Article V. If acceptable as submitted,
there are a few errors of punctuation and spelling in the present
draft which can be corrected in the final draft. In this connection,
it is believed that the Department will desire to change the word
"traveler's" as used in the first paragraph of Article I of the
text
originally submitted by us, to the plural form of the word. The
Department's attention is also called to the substitution in this draft
of the word "production" in clause 2, paragraph 2 of Article IV
for
the word "prohibition" between the words "which as regards"
and
"or trade are". The word "prohibition" was first submitted
to the
Department in my telegram no. 11 of June 2, 11 [1] A. M., but it
was changed to "production" in the draft submitted with my despatch
no. 820 of July 7, 1937.
  Subsequent to the submission of the Legation's note of August 24
to the Foreign Office, the Legation inquired from time to time as to
the progress that was being made. On September 22, the Legal
Adviser, Mr. Archibald McDougall, inquired of Mr. Satterthwaite,
then Charge d'Affaires, whether there was anything in our file which
would assist in the interpretation of the sentence regarding Article
II in the Legation's note to the Foreign Office of August 24 reading as
follows:
  "In conveying the foregoing to the Iraqi Government, I have been
instructed to point out that thie provision in question, since it relates
only to trade between the United States and Iraq, does not obligate
the Iraqi 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."
  Mr. McDougall was informed that no additional comment on
this particular point could be found in the file. However, the fol-
lowing paragraph from the Department's instruction no. 242 of
January 18, 1937 was read to him:
  "It is the view of the Department that most-favored-nation treat-
ment in respect of quotas and exchange control requires that the
allocations made under quotas or exchange control will be equal to
the share of the trade in a particular commodity enjoyed in a previous
representative period."
  The following paragraph of the Department's instruction no. 261
of July 19, 1937, was also read to him:
  "For your information, the Department does not consider the
question of restriction of Japanese imports as particularly relevant
in this connection, since it is understood that Iraq has no treaty or
agreement with Japan providing for most-favored-nation treatment
982609-54O---- 50


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