of either high contracting party to impose, on such terms as it may see fit, prohibitions or restrictions of a sanitary character designed to protect human, animal, or plant life, or regulations for the enforcement of police or revenue laws.

Each of the high contracting parties binds itself unconditionally to impose no higher or other duties or conditions and no prohibition on the importation of any article, the growth, produce, or manufacture of the territories of the other than are or shall be imposed on the importation of any like article the growth, produce, or manufacture of any other foreign country.

Each of the high contracting parties also binds itself unconditionally to impose no higher or other charges or other restrictions or prohibitions on goods exported to the territories of the other high contracting party than are imposed on goods exported to any other foreign country.

Any advantage of whatsoever kind which either high contracting party may extend to any article, the growth, produce, or manufacture of any other foreign country shall simultaneously and unconditionally, without request and without compensation, be extended to the like article the growth, produce, or manufacture of the other high contracting party.

All the articles which are or may be legally imported from foreign countries into ports of the United States in United States vessels may likewise be imported into those ports in German vessels without being liable to any other or higher duties or charges whatsoever than if such articles were imported in United States vessels; and, reciprocally, all articles which are or may be legally imported from foreign countries into the ports of Germany in German vessels may likewise be imported into these ports in United States vessels without being liable to any other or higher duties or charges whatsoever than if such were imported from foreign countries in German vessels. With respect to the amount and collection of duties on imports and exports of every kind, each of the two high contracting parties binds itself to give to the nationals, vessels, and goods of the other the advantage of every favor, privilege,

or immunity which it shall have accorded to the nationals, vessels, and goods of a third State, and regardless of whether such favored State shall have been accorded such treatment gratuitously or in return for reciprocal compensatory treatment. Every such favor, privilege, or immunity which shall hereafter be granted the nationals, vessels, or goods of a third State shall simultaneously and unconditionally, without request and without compensation, be extended to the other high contracting party for the benefit of itself, its nationals, and vessels.

The stipulations of this article shall apply to the importation of goods into and the exportation of goods from all areas within the German customs lines, but shall not extend to the treatment which either contracting party shall accord to purely border traffic within a zone not exceeding 10 miles (15 kilometers) wide on either side of its customs frontier, or to the treatment which is accorded by the United States to the commerce of Cuba under the provisions of the commercial convention concluded by the United States and Cuba on December II, 1902, or any other commercial convention which hereafter may be concluded by the United States with Cuba, or to the commerce of the United States with any of its dependencies and the Panama Canal Zone under existing or future laws.1

1 Article VII. Congressional Record (unbound), Feb. 7, 1924, pp. 2042, et seq. (2043). The Senate in this case removed the injunction to secrecy without having previously consented to ratification. Complete text also published in Board of Trade Journal, Feb. 28, 1924, pp. 283, et seq. Articles VIII and IX, of interest in the present connection, are as follows:

"The nationals and merchandise of each high contracting party within the territories of the other shall receive the same treatment as nationals and merchandise of the country with regard to internal taxes, transit duties, charges in respect to warehousing and other facilities, and the amount of drawbacks and bounties.

"No duties of tonnage, harbor, pilotage, lighthouse, quarantine, or other similar or corresponding duties or charges of whatever denomination, levied in the name or for the profit of the Government, public

Having thus made use of a most-favored-nation clause that seems to be sufficient for the purpose of putting into effect a commercial policy such as that outlined in this monograph, the American Government is doubtless confronted with the question of the compatibility of such provisions with the treaty systems of the states with which treaties are to be sought. Can treaties the contents of which are centered around an unconditional most-favorednation clause be said to have a reasonable hope of acceptability when measured by the requirements of other treaty systems?

A foregoing chapter has set forth some of the difficulties arising from the tariff policies of other countries. The chief object of the present chapter is to inquire whether the commercial treaties that have succeeded or survived the World War reaction may upon examination prove to have been correctly counted as an aid in the development of the new American commercial policy. As limitations of space forbid an examination of the treaty systems of all of the countries with which new treaties may be desirable, much less the score of countries the American treaties with which seem to need revising-unconditioning-resort must be had to brief discussions of certain treaties of a few countries which present typical problems for the negotiators of the United States. For this purpose the choice of Spain, Finland, Poland, Russia, Czechoslovakia, Australia and the Central American states seems likely to yield the maximum benefit. The cited treaties of certain of these countries

functionaries, private individuals, corporations, or establishments of any kind shall be imposed in the ports of the territories of either country upon the vessels of the other, which shall not equally, under the same conditions, be imposed on national vessels. Such equality of treatment shall apply reciprocally to the vessels of the two countries, respectively, from whatever place they may arrive and whatever may be their place of destination."

with France and Italy will exhibit and contrast the treaty policies of those two countries.1

1

65. SPAIN

Spain is one of the more important states of Europe in respect to both population and area. From the earliest times it has occupied a notable place in the foreign relations of the United States, both political and economic. It is a good customer of the United States, importing in the record year 1920 nearly 150 million dollars' worth of American goods— chiefly raw cotton,2 wheat and, in increasing amounts, manufactured products, such as machinery and automobiles. In return Spain sends to the United States large quantities of olives and olive oil, nuts, fruits and vegetables, cork, skins and pyrites, amounting in each of the last few years, however, to less than half the value of Spain's imports from this country. Continental Spain and the neighboring Spanish islands contain upwards of 20 million inhabitants; the colonies nearly one million.

Since the World War Spain's commercial policy has apparently been very greatly influenced by its war-born industrial enterprise. In former years Spain had devoted almost its entire energy to agriculture and to its natural resources.

At the present time the discriminations practiced by Spain against American commerce appear to be limited to the pref

1In Italy there is reported to be insistent advocacy of equality of treatment in commercial treaties. This stand is consistent with Italian policy since the Kingdom was constituted and is based on Italian endeavors to secure foreign markets for its national products.

'35% of the total in 1921.

'In 1912 the total exports from the United States to Spain amounted to $31,671,556; in 1921, to $69,197,443; in 1922, to $70,931,175.-Statistical Abstract of the United States, 1921, and figures obtained from Department of Commerce.

Imports into the United States from Spain amounted to $22,221,201 in 1912; to $26,159,927 in 1921; to $28,668,681 in 1922 (ibid.).

erential treatment accorded to a few products of Italy,1 to Portugal and to the Spanish dependencies. But the action of Spain in formally denouncing, effective November 5, 1923, the commercial agreement concluded with the United States on August 1, 1906, which agreement contained a most-favored-nation clause, may be the prelude of more serious and less justifiable discriminatory treatment. This action emphasized the immediate necessity of a treaty with Spain providing for unconditional most-favored-nation treatment and negotiations were actively commenced about June 1, 1923.

For the purpose of studying present tendencies in Spanish commercial policy the recently-concluded treaties with Great Britain, France, Switzerland and Norway seem most illuminating.

'Under treaty effective December 10, 1923. Commerce Reports, January 14, 1924, p. 122, e. g., sulphur.

'The free importation of the products of Andorra, and certain existing classifications for the collection of harbor and other dues which favor the goods of Europe as compared with those brought from another continent, seem unworthy of mention here. It is doubtful whether the latter instance may properly be pronounced discriminatory in principle.

'The commercial agreement of Aug. 1, 1906, was one of the "argol agreements" concluded under the tariff act of 1897 (supra, ch. ii). So far as the United States was concerned it was terminated at the expiration of one year following notice given on Aug. 7, 1909, after the passage of the new tariff act of that year. In acknowledging the action of the United States by which Spain was accorded the minimum schedule of the Act of 1909, the Spanish Government indicated that it would continue to accord favorable treatment to the ships and products of the United States. Just prior to November 5, 1923, Spain informed the United States that it would agree to a six months' extension of time during which American goods should continue to be admitted as theretofore. It was expressly stipulated, however, that concessions accorded under treaties thereafter concluded would not be extended to the United States. Extension to May 5, 1925, was later agreed to.

The essential clauses of the 1906 agreement are quoted in subdivision 37 (g), supra.