Papers Relating to the Foreign Relations of the United States

for giving them effect, does not render the proposal to include them in the modus vivendi acceptable to the Government of the United States for the reason that it is impracticable for the Federal Government to undertake to obtain the necessary legislation. The Government of the United States, accordingly, must ask the Government of Finland to omit the matter of internal taxation from the proposed modus vivendi and leave it for consideration when the proposed commercial treaty is under negotiation.

The counter-draft contains a paragraph according most-favorednation treatment to citizens and corporations of Finland in the United States and to citizens and corporations of the United States in Finland. Here, also, authority, except when exercised through treaty, is divided between the Federal Government and the governments of the States. The latter may within their sphere discriminate between nationals and aliens and between domestic and foreign corporations. It is, therefore, not practicable for the Government of the United States to consider this proposal of the Finnish Government except in the negotiation of a treaty.

The counter-draft also contains a paragraph according mostfavored-nation treatment to consular officers. It has not been the practice of the United States to enter into agreements permitting the exercise of consular functions in this country otherwise than by treaty and this Government regards it as impracticable to enter into such an agreement in an exchange of notes. The Government of the United States must, accordingly, request that the Government of Finland defer consideration of consular rights until such time as a treaty may be under negotiation between the two countries.

To the exceptions from the matters to which the proposed modus vivendi relates the Government of Finland adds the following:

The treatment in regard to the employment of pilots which Finland actually accords or may hereafter accord to Sweden in respect to navigation north of 59° north latitude; the treatment which Finland actually accords or may hereafter accord to Russia in regard to fishing and sealing in the Arctic waters of Finland; nor the treatment which Finland accords to France in Article 6 of the Treaty of Commerce concluded between Finland and France July 13, 1921.

In view of the fact that the United States must ask that matters relating to navigation be excluded from the pending modus vivendi, the first of these exceptions becomes irrelevant. Likewise, as the subjects of fishing and sealing are not embraced in the notes, an exception with respect to particular privileges in these matters is unnecessary. The Government of the United States is glad to accede to the wishes of the Government of Finland and to except from the matters to which the modus vivendi relates the treatment which

Finland accords to France in Article 6 of the Treaty of Commerce of July 13, 1921.

It is noted that the exception "or regulations for the enforcement of police or revenue laws", contained in the paragraph the fourth from the end of the original draft, does not appear in the counterdraft. This exception is deemed important by the Government of the United States and it is requested that the Government of Finland agree to its retention in the modus vivendi.

In view of the fact that the United States must insist upon confining the present exchange of notes to the subject of commerce, it is assumed that the Government of Finland will not care to retain the proposal for changing the provisions of the original note in regard to the coming into force of the modus vivendi. The Government of the United States must, moreover, request the retention of the following language in the paragraph relating to the termination of the arrangement:

but should either party be prevented by future action of its legislature from carrying out the terms of this arrangement, the obligations thereof shall thereupon lapse.

The proposed modus vivendi is an executive agreement and not a treaty. It should be made clear, therefore, that the provisions of the modus vivendi will be dominated by legislation which the Congress of the United States or the Parliament of Finland may in the future enact.

A draft of a note prepared by the Department of State in accordance with the foregoing explanations is attached hereto for the consideration of the Government of Finland."

611.60 d 31/32a

The Secretary of State to the Finnish Minister (Åström)

WASHINGTON, May 2, 1925.

SIR: I have the honor to make the following statement of my understanding of the agreement reached through recent conversations held at Washington on behalf of the Government of the United States and the Government of Finland with reference to the treatment which the United States shall accord to the commerce of Finland and which Finland shall accord to the commerce of the United States.

These conversations have disclosed a mutual understanding between the two Governments which is that in respect to import and ex

Not printed; the notes exchanged May 2 (printed infra) are substantially the same as this draft, the principal modification being the date on which the agreement was to go into effect.

port duties and other duties and charges affecting commerce, as well as in respect to transit, warehousing and other facilities, and the treatment of commercial travelers' samples, the United States will accord to Finland, and Finland will accord to the United States, its territories and possessions, unconditional most-favored-nation treatment; and that in the matter of licensing or prohibitions of imports or exports, each country, so far as it at any time maintains such a system, will accord to the commerce of the other treatment as favorable, with respect to commodities, valuations and quantities, as may be accorded to the commerce of any other country.

It is understood that,

No higher or other duties shall be imposed on the importation into or disposition in the United States, its territories or possessions, of any articles the produce or manufacture of Finland than are or shall be payable on like articles the produce or manufacture of any foreign country;

No higher or other duties shall be imposed on the importation into or disposition in Finland of any articles the produce or manufacture of the United States, its territories or possessions, than are or shall be payable on like articles the produce or manufacture of any foreign country;

Similarly, no higher or other duties shall be imposed in the United States, its territories or possessions, or in Finland, on the exportation of any articles to the other or to any territory or possession of the other than are payable on the exportation of like articles to any foreign country;

Every concession with respect to any duty, charge or regulation affecting commerce now accorded or that may hereafter be accorded by the United States or by Finland, by law, proclamation, decree or commercial treaty or agreement, to any third country will become immediately applicable without request and without compensation to the commerce of Finland and of the United States and its territories and possessions, respectively:

Provided that this understanding does not relate to

(1) The treatment which the United States accords or may here- . after accord to the commerce of Cuba or any of the territories or possessions of the United States or the Panama Canal Zone, or the treatment which is or may hereafter be accorded to the commerce of the United States with any of its territories or possessions or to the commerce of its territories or possessions with one another.

(2) The treatment which Finland accords or may hereafter accord to the commerce of Esthonia or the treatment which Finland accords to France in Article 6 of the Treaty of Commerce concluded between Finland and France on July 13, 1921.

(3) Prohibitions or restrictions of a sanitary character or designed to protect human, animal or plant life or regulations for the enforce

ment of police or revenue laws of the United States or of Finland relating to merchandise the importation or transportation of which is prohibited.

The present arrangement, in so far as it concerns import and export duties, shall become operative on the 15th day after the day I shall have received your confirmation of this agreement; in respect of all other matters it shall become operative when the Government of Finland shall have notified the Government of the United States that the legislative measures necessary for the purpose have been completed in Finland.

The present arrangement shall, unless sooner terminated by mutual agreement, continue in force until thirty days after notice of its termination shall have been given by either party; but should either party be prevented by future action of its legislature from carrying out the terms of this arrangement, the obligations thereof shall thereupon lapse.

I shall be glad to have your confirmation of the accord thus reached.

Accept [etc.]

611.60 d 31/32

FRANK B. KELLOGG

The Finnish Minister (Åström) to the Secretary of State

WASHINGTON, May 2, 1925.

SIR: I have the honor to make the following statement of my understanding of the agreement reached through recent conversations held at Washington on behalf of the Government of Finland and the Government of the United States with reference to the treatment which Finland shall accord to the commerce of the United States and which the United States shall accord to the commerce of Finland.

These conversations have disclosed a mutual understanding between the two Governments which is that in respect to import and export duties and other duties and charges affecting commerce, as well as in respect to transit, warehousing and other facilities, and the treatment of commercial travelers' samples, Finland will accord to the United States, its territories and possessions, and the United States will accord to Finland, unconditional most-favored-nation treatment; and that in the matter of licensing or prohibitions of imports or exports, each country, so far as it at any time maintains such a system, will accord to the commerce of the other treatment as favorable, with respect to commodities, valuations and quantities, as may be accorded to the commerce of any other country.

It is understood that,

No higher or other duties shall be imposed on the importation. into or disposition in the United States, its territories or possessions, of any articles the produce or manufacture of Finland than are or shall be payable on like articles the produce or manufacture of any foreign country;

Similarly, no higher or other duties shall be imposed in Finland, or in the United States, its territories or possessions, on the exportation of any articles to the other or to any territory or possession of the other than are payable on the exportation of like articles to any foreign country;

Every concession with respect to any duty, charge or regulation affecting commerce now accorded or that may hereafter be accorded by Finland or by the United States, by law, proclamation, decree or commercial treaty or agreement, to any third country will become immediately applicable without request and without compensation to the commerce of the United States and its territories and possessions and of Finland, respectively:

Provided that this understanding does not relate to

The treatment which Finland accords or may hereafter accord to the commerce of Esthonia or the treatment which Finland accords to France in Article 6 of the Treaty of Commerce concluded between Finland and France on July 13, 1921.

The treatment which the United States accords or may hereafter accord to the commerce of Cuba or any of the territories or possessions of the United States or the Panama Canal Zone, or the treatment which is or may hereafter be accorded to the commerce of the United States with any of its territories or possessions or to the commerce of its territories or possessions with one another.

Prohibitions or restrictions of a sanitary character or designed to protect human, animal or plant life or regulations for the enforcement of police or revenue laws of Finland or of the United States relating to merchandise the importation or transportation of which is prohibited.

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