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United States Department of State / Foreign relations of the United States diplomatic papers, 1934. Europe, Near East and Africa

Netherlands,   pp. 627-641 PDF (5.6 MB)

Page 628

11, 1924,61in the latter of which it was stated that the Secretary of State
understood that the United States and the Netherlands applied most-
favored-nation treatment to the commerce between the two countries
and that the United States for its part did not contemplate making
any departure from that principle. As it was held that in the ab-
sence of a treaty it would be impossible to extend to the Netherlands
the same treatment accorded to Germany and Great Britain it was
agreed that a most-favored-nation treaty should be concluded between
the United States and the Netherlands.
  The provisions of the proposed treaty, with the exception of Ar-
ticle 3, are similar to those which have customarily been included in
previous simple most-favored-nation treaties concluded by the United
States with other countries. Article 3, however, concerns such com-
paratively new restrictions on trade as rations, contingents, quotas,
customs quotas, monopolies, et cetera, and has been drafted with a
view to establishing the principle that if either party sets up a system
of quantitative restriction or control of imports or sales of any article,
the share of the permissible trade allotted to the other party shall not
be less in proportion than the share of the total trade enjoyed by that
party prior to the establishment of the restriction. I shall be pleased
to receive any comments that you may have with regard to this article
or any suggestions for its improvement that you may care to make.
  It will be noted that the present draft treaty is not an agreement
of the type contemplated by the bill now pending in Congress which
would authorize the President to enter into reciprocal trade agree-
ments involving reductions in duties and modifications in other trade
barriers. This bill has been passed by the House and has been re-
ported favorably by the Senate Committee on Finance. If and when
this bill shall have been enacted into law it is expected that negotiations
will from time to time be instituted with foreign governments with a
view to concluding reciprocal trade agreements. The Department is
not in a position to advise you at this time whether the Netherlands
will be among the countries with which such agreements will be sought.
  Exploratory conversations were instituted some time ago with sev-
eral countries with a view to concluding reciprocal trade agreements.
In the case of Colombia these conversations led to the signing of an
agreement.8 This agreement will not be brought into force until after
the pending legislation shall have been enacted. The exploratory
conversations with other countries are largely in abeyance pending the
enactment of this legislation.
"Foreign Relations, 1924, vol. II, p. 481.
7The Trade Agreements Act, approved June 12, 1934; 48 Stat. 943.
8 Unperfected trade agreement, signed December 15, 1933, Foreign RelaUtons,
1933, vol. v, p. 217.

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