Paris Peace Conf. 185.1/15
In the preparation of this paper we have had various conferences with
Professor A. A. Young, and he is
in agreement with us as to the paper.
[Enclosure]
Article C.—Declaration for Equality of Trade
Conditions
The Powers signatory to the Agreement for a League of Nations declare
as a part of said Agreement:21
[Page 330]
1. For the purposes of this Declaration every dominion, colony,
protectorate, dependency, or possession having now a tariff system
in any measure distinct from that applicable to the country with
which it is politically connected, shall be regarded as a State.
[Note: A distinction between what may be called, “Economic units” and
“Units of sovereignty” must be recognized.]
2. While for every State there may be freely adopted and from time to
time freely changed, a system of export and import prohibitions and
duties, port dues, traffic rates, inspection methods and fees, and
other trade charges, and also laws and regulations embodying the
same or relating thereto, any and every such system, law and
Regulation shall at any given time as to the rest of the world be
fixed and single, and shall also at any given time as to the rest of
the world be equal and without discrimination, difference, or
preference, direct or indirect.
[The general rule of Equality and of the Open Door.]
3. Every State shall accord to the vessels of other States as
favorable treatment as respects tonnage dues, harbor and port
charges, facilities for stationing, loading and unloading, and other
similar and corresponding charges and facilities as it accords to
vessels whose home ports are within its territory.
[Equality as to vessels, etc., going farther than the most favored
nation principle.]
4. Every State shall accord to goods exported therefrom in the
vessels of other States, or imported thereinto in such vessels, as
favorable treatment as respects export and import prohibitions and
duties, inspection methods and charges, traffic rates, trade charges
of every kind, internal taxes, and other similar or corresponding
matters, as it accords to similar goods exported therefrom or
imported thereinto in vessels whose home ports are within its
territory.
[Equality as to cargoes, etc., going farther than the most favored
nation principle.]
5. Export and import duties and other trade charges shall be without
discrimination or preference, direct or indirect, based upon the
place of intermediate or original origin, or of intermediate or
ultimate destination of vessel or of goods.
[This would affect such duties as the French “Surtax d’êntrepot” and
United States differential duties on imports via Canada.]
6. No State shall grant direct or indirect bounties on exports.
[An anti-dumping clause.]
7. Nothing in this Declaration contained shall be deemed to limit or
affect the rights or privileges of any Member Power relating to its
coasting trade.
[The Coasting Trade.]
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8. No existing national law or regulation, and no existing
international agreement or arrangement shall be deemed to be
affected by any of the provisions of Articles 2, 3, 4, and 5 of this
Declaration.
[This limits the effect of Articles 2, 3, 4, and 5 to the
future.]
9. While for the purposes of this Declaration the Dominion of Canada,
Newfoundland, the Commonwealth of Australia, the Union of South
Africa, and the Dominion of New Zealand are each to be regarded as
States under the provisions of Article 1, they may, notwithstanding
the provisions of Article 2, make preferential arrangements, inter se and/or with Great Britain.
[Preference within the British Empire.]
10. Notwithstanding the provisions of Article 2, States whose
territorial limits are wholly or partly within the continent of
Europe may enter into agreements inter se in
the nature of Customs Unions covering contiguous territory.
[Customs Unions in Europe.]
11. Notwithstanding the provisions of Article 2, agreements in the
nature of Customs Unions, covering territory within the American
continents, may be entered into.
[Customs Unions under the Monroe Doctrine.]
12. A State engaged in trade or commerce shall not in respect thereof
have or be deemed to have any of the rights, privileges, immunities,
duties, or obligations of sovereignty.
[The State as a trader.]
13. No part of the revenues of any State, whether in kind or in cash,
shall be pledged or assigned to any other State, its citizens or
subjects.
[A prohibition of a limitation on independence through finance. See
similar language in the Anglo-Russian Convention of Aug. 31, 1907,
regarding Thibet.]
14. In each and every State there shall be adequate protection of
fair and legitimate international trade, and adequate protection
against the use of unfair methods of competition in international
trade. To this end the Member Powers agree to bind themselves by the
provisions of the International Convention for the Protection of
Industrial Property, with Final Protocol, signed at Washington, 2
June, 1911,22 which is hereby
incorporated in and made an integral part of this Declaration.
[The United States is a party to this Convention.]
15. (The Member Powers agree to bind themselves by the provisions of
the Convention for the Protection of Literary and Artistic
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Works, signed at Berlin,
13 November, 1908,23 which is
hereby incorporated in and made an integral part of this
Declaration.)
[This is not suggested as an American proposal but as a proposal
likely to be made by Great Britain, the Power chiefly interested.
Its adoption would be contrary to the policy of the United States
expressed in the Copyright Act of 1909, Vol. 35, Stats, at Large,
page 1078, substantially requiring copyrighted books in English to
be printed from type set within the United States.]
Note by the Technical Advisors Regarding the
Foregoing Declaration for Equality of Trade Conditions
(Article C)
Provisions for an International Trade Commission, regarded as a
desirable, if not an essential part of a Declaration of this
character, are under preparation.
