forth and provided for in the said Agreement and the two Schedules thereunto annexed are required and appropriate to carry out the said Agreement: NOW, THEREFORE, I, Franklin D. Roosevelt, President of the United States of America, acting under the authority conferred by the said Tariff Act of 1930, as amended by the said Act of June 12, 1934, do hereby proclaim the said Agreement including the said Schedules, to the end that the whole and every part thereof may be observed and fulfilled with good faith by the United States of America and the citizens thereof on and from the third day of June, one thousand nine hundred and thirty-five; Pursuant to the proviso in Section 350, (a) (2) of the said Tariff Act of 1930, as amended by the said Act of June 12, 1934, I shall from time to time notify the Secretary of the Treasury of the countries with respect to which application of the duties herein proclaimed is to be suspended. IN TESTIMONY WHEREOF, I have hereunto set my hand and caused the seal of the United States of America to be affixed. DONE at the city of Washington this fourth day of May, in the year of our Lord one thousand nine hundred and thirty-five, and of the In[SEAL] dependence of the United States of America the one hundred and fifty-ninth. By the President: CORDELL HULL Secretary of State. FRANKLIN D ROOSEVELT RECIPROCAL TRADE AGREEMENT BETWEEN THE UNITED STATES AND SWEDEN On May 25, 1935, a reciprocal trade agreement between the United States and Sweden was signed at Washington. This is the fifth agreement to be negotiated under the authority granted the President by the Trade Agreements Act of June 12, 1934. The other agreements concluded are those with the Belgo-Luxemburg Economic Union, Brazil, Cuba, and Haiti. The general provisions of this agreement are similar to those contained in trade agreements previously concluded. The salient features of the articles regarding most-favored-nation treatment, quota provisions, and the conditions under which a concession may be withdrawn are given below: Under article I, the United States and Sweden each agree to accord to the commerce of the other unconditional most-favored-nation treatment in respect of customs duties and related matters. This means that if either the United States or Sweden reduces any customs duty, either autonomously or in connection with a trade agreement with a third country, the like article of the other country will immediately get the benefit of the reduced rate. The practical importance of this assurance is that exporters in each country will continue to be able to compete in the other country on a parity with other foreign producers and that the concessions which each country has granted to the other will not be impaired through the granting of greater concessions to a third country. Article II extends the principle of equality of treatment to quotas. It provides that in the event a quota is established by either country, it shall allot to the other country a share equivalent to the proportion of the trade which it would normally enjoy. Article IX provides similarly for fair and equitable treatment in regard to any form of exchange control. Article VII provides in general that no quota shall be established by either country on those articles of the other country on which concessions are granted in the trade agreement. However, this provision does not apply to quotas imposed in conjunction with governmental measures, such as the National Industrial Recovery Act in this country, which operate to regulate or control the production, market supply, or prices of like domestic articles. Before establishing or changing any such quota, the Government proposing to take such action must notify the other Government and if there is disagreement with respect to the proposed action, such other Government has the right to terminate the entire trade agreement. The article thus permits the imposition of quotas where such action is necessary to effectuate other domestic policies, but by giving the other party a right of terminating the entire agreement, it tends to confine such action to cases in which it is clearly necessary. Under the provisions of article XIV, each country reserves the right to withdraw any concession or to impose a quota on the article in question if, as a result of the extension of the concession to other countries, a third country obtains the major benefit and an unduly large increase in importations occurs. This provision is designed to safeguard domestic industries against the possibility of particularly severe competition from a country other than the one which is a party to the trade agreement. The great care with which products are chosen for inclusion in a trade agreement and the fact that concessions are confined to products of which the other country has been the principal or an important source of imports into this country makes it reasonable for the domestic interests which may be affected to count, in general, on their principal foreign competition coming from the country with which the trade agreement is concluded. If it should happen, however, that another country should derive the major benefit of a reduced duty and total importations increase unduly, action as provided for in this article could be taken. It should be noted, however, that before such action is taken, notice must be given to the other party, and that the latter has the right to terminate the entire trade agreement if it does not agree to the withdrawal of the concession or to the imposition of a quota. The agreement provides that it shall be ratified by the King of Sweden with the consent of the Riksdag and approved by the President of the United States. It shall enter into force on the thirtieth day after the exchange of the instruments of ratification and approval and shall remain in force for a term of 3 years unless terminated pursuant to the provisions of articles VII, X, or XIV. Unless the Government of either party has given notice of its intention to terminate the agreement at least 6 months before the expiration of the term of 3 years, it shall remain in force thereafter subject to termination under articles VII, X, or XIV, until 6 months from such time as either party shall have given notice to the other party. AGREEMENT TO REFRAIN FROM INVOKING THE OBLIGATIONS OF THE MOST-FAVORED-NATION CLAUSE IN RESPECT OF CERTAIN MULTILATERAL CONVENTIONS" Guatemala The Director General of the Pan American Union informed the Secretary of State by a letter dated May 15, 1935, that the agreement to refrain from invoking the obligations of the most-favored-nation clause in respect of certain multilateral conventions, which was opened for signature at the Pan American Union on July 15, 1934, was signed on behalf of Guatemala by the Guatemalan Minister at Washington on May 11, 1935. The agreement has been signed by the United States of America, the Belgo-Luxemburg Economic Union, Cuba, Guatemala, Panama, and Nicaragua. TREATY OF FRIENDSHIP, COMMERCE, AND CONSULAR RIGHTS BETWEEN THE UNITED STATES AND GERMANY (TREATY SERIES, No. 725)7 On October 13, 1934, the German Government gave notice of its intention to modify article VII of the treaty of friendship, commerce, and consular rights between the United States and Germany signed December 8, 1923. This article provides for most-favored-nation treatment in customs matters. Under article XXXI of the treaty, which sets forth the procedure as to termination, such notice would have resulted in termination of the entire treaty as of October 14, 1935, unless the modifications were agreed upon by the two Governments before that date. In order to avoid termination of the whole treaty, which contains valuable provisions in respect of the residence and establishment of citizens of each country in the other and provisions relating to navigation and consular rights, this Government on April 24, 1935, addressed the following note to the German Ambassador at Washington: "I have the honor to refer to the note of October 13, 1934, in which the German Embassy, pursuant to instructions from its Government, 6 See Bulletin No. 66, March 1935, p. 11. See Bulletin No. 61, October 1934, p. 13. gives notice of intention to modify Article VII of the existing Treaty of Friendship, Commerce and Consular Rights between the United States and Germany. The United States Government hereby accepts the notice thus given. "Article XXXI of the Treaty of 1923, to which reference also is made in the Embassy's note, reads as follows: "The present treaty shall remain in full force for the term of ten years from the date of the exchange of ratifications, on which date. it shall begin to take effect in all of its provisions. "If within one year before the expiration of the aforesaid period of ten years neither High Contracting Party notifies to the other an intention of modifying, by change or omission, any of the provisions of any of the articles in this Treaty or of terminating it upon the expiration of the aforesaid period, the Treaty shall remain in full force and effect after the aforesaid period and until one year from such a time as either of the High Contracting Parties shall have notified to the other an intention of modifying or terminating the Treaty.' "The foregoing provisions are construed by this Government as providing that the entire Treaty shall cease to have force or effect at the expiration of the term of ten years from the date of the exchange of ratifications, if at least one year before the expiration of that period, either Government should notify to the other Government an intention to modify or terminate the Treaty. As the exchange of ratifications was effected on October 14, 1925, the notice given to this Government by the German Government on October 13, last, would have the effect of terminating the entire Treaty on October 14, 1935, unless before that date an agreement is reached between the two Governments in respect of the modification desired by your Government. "In order to avoid termination of the entire Treaty of Friendship, Commerce and Consular Rights of 1923, between the United States and Germany, on October 14, 1935, I have the honor to state that this Government would be glad to enter immediately into an agreement with your Government modifying the provisions of Article VII of the Treaty. Such an agreement, a draft of which is enclosed, would terminate those provisions of Article VII which provide for mostfavored-nation treatment in respect of the treatment to be accorded by each country to goods originating in the other. "As you are aware, modification of a treaty under American constitutional procedure requires Congressional action. Since the Congress of the United States will probably adjourn in a comparatively short time until January, 1936, it is suggested that the German Government indicate as early as possible whether the enclosed draft agreement meets with its approval in order that the requisite action may be sought from the Congress of the United States before its adjournment. On May 24, 1935, the German Ambassador replied to the above note stating that his Government would be glad to enter immediately into negotiations for the conclusion of an agreement modifying the terms of article VII. FISHERIES CONVENTION FOR THE REGULATION OF WHALING (TREATY SERIES, No. 880) 8 Ecuador By a circular letter dated April 30, 1935, the Secretary General of the League of Nations informed the Secretary of State that the instrument of accession of Ecuador to the convention on whaling signed at Geneva on September 24, 1931, was deposited with the Secretariat on April 13, 1935. LABOR CONVENTIONS OF THE INTERNATIONAL LABOR CONFERENCE Canada According to a communication from the League of Nations dated May 8, 1935, the ratification by Canada of the convention concerning the creation of minimum wage fixing machinery, adopted by the International Labor Conference at its eleventh session, was registered with the Secretariat on April 25, 1935. Spain By a communication dated May 8, 1935, the Secretary General of the League of Nations informed the Secretary of State that the ratification by Spain of the convention concerning fee-charging employment agencies, adopted by the International Labor Conference at its seventeenth session, was registered with the Secretariat on April 27, 1935. NINETEENTH SESSION OF THE INTERNATIONAL LABOR CONFERENCE AND SEVENTY-FIRST SESSION OF THE GOVERNING BODY OF THE INTERNATIONAL LABOR OFFICE This Government has appointed the following persons in the capacities indicated to attend the Nineteenth Session of the International Labor Conference which is to be convened at Geneva, Switzerland, on June 4, 1935: Delegates: For the Government: Dr. Walton Hamilton, Member of the National Industrial Miss Grace Abbott, formerly Chief of the Children's Bu- * See Bulletin No. 62, November 1934, p. 13. |