ARTICLE VII

This agreement shall take effect after its approval by the Contracting Parties in accordance with their respective Constitutional methods. Upon the exchange of ratifications of this convention, which shall take place at Washington as soon as possible, the Convention between the United States of America and the Dominican Republic providing for the assistance of the United States in the collection and application of the customs revenues, concluded and signed at the City of Santo Domingo on the 8th day of February, 1907, shall be deemed to be abrogated.

Done in duplicate in the English and Spanish languages at the City of Washington this 27th day of December, nineteen hundred and twenty-four.

EXCHANGE OF NOTES BETWEEN THE UNITED STATES AND THE DOMINICAN REPUBLIC ACCORDING MUTUAL UNCONDITIONAL MOST-FAVORED-NATION TREATMENT IN CUSTOMS MATTERS

611.3931/8a

The Secretary of State to President Coolidge

WASHINGTON, June 20, 1924.

MY DEAR MR. PRESIDENT: It appears that the approaching visit to Washington of the President-elect of the Dominican Republic will offer a most favorable opportunity to discuss with him and with the members of his party various questions of importance affecting the relations between the United States and the Dominican Republic. Among these questions is the proposed revision of the Dominican customs tariff, which will presumably be undertaken immediately after the new Constitutional Government of the Dominican Republic is installed. Under the terms of the Convention between the United States and the Dominican Republic of 1907, the consent of the President of the United States is required before any modification of its customs tariff can be made by the Dominican Government.

The principal export of the Dominican Republic is sugar. Owing to the fact that Porto Rico is able to import sugar into the United States free of all duty and that Cuba is enabled to import sugar into the United States with a preferential rate of 20%, Dominican sugar is unable to compete in the United States market with the sugar pro

duced in either of those two Islands, and consequently, all sugar exported from the Dominican Republic is sold either in Europe or in Canada. Because of this situation, it is possible that the Dominican Government, when it undertakes the revision of its customs tariff, will determine that it is to its best advantage to grant preferential rates to Great Britain or to certain European Nations. To preclude the possibility, should this be undertaken, of American exporters finding themselves in a disadvantageous position in the Dominican Republic, it has occurred to me that it might be desirable to undertake with the new Dominican Government an exchange of notes similar to the notes which this Government has recently exchanged with the Governments of Brazil 4 and Czecho-Slovakia,35 and which are now being negotiated with Nicaragua 36 and with Poland. The effect of this exchange of notes would constitute an agreement between the two Governments pending the arrival of a convenient time for the conclusion of a comprehensive commercial treaty, by which each country will maintain for the commerce of the other a basis of equality with the commerce of every foreign country, an exception will of course be made in the case of the United States to allow for the preferential rates granted by the United States to Cuba.

Should this suggestion meet with your approval, I will endeavor to reach an agreement in principle in this matter with the Presidentelect of the Dominican Republic in order that the suggested notes may be exchanged as soon as possible after his inauguration as Constitutional President of the Republic.

Faithfully yours,

CHARLES E. HUGHES

611.3931/14a

The Secretary of State to the Dominican Minister (Ariza)

WASHINGTON, September 25, 1924. SIR: I have the honor to make the following statement of my understanding of the agreement reached through recent conversations held at Washington by representatives of the Government of the United States and the Government of the Dominican Republic with reference to the treatment which the United States shall accord to the commerce of the Dominican Republic and which the Dominican Republic 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,

export and other duties and charges affecting commerce, as well as in respect to transit, warehousing and other facilities, the United States will accord to the Dominican Republic and the Dominican Republic will accord to the United States, its territories and possessions, unconditional most-favored-nation treatment.

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 the Dominican Republic 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 the Dominican Republic 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 the Dominican Republic 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 or charge affecting commerce now accorded or that may hereafter be accorded by the United States or by the Dominican Republic, by law, proclamation, decree or commercial treaty or agreement, to the products of any third country will become immediately applicable without request and without compensation to the commerce of the Dominican Republic and of the United States, its territories and possessions, respectively: Provided that this understanding does not relate to

(1) 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 to 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) 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.

The present arrangement shall become operative on the day of signature and, unless sooner terminated by mutual agreement, shall 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.]

CHARLES E. HUGHES

611.3931/14

The Dominican Minister (Ariza) to the Secretary of State

[Translation]

WASHINGTON, September 25, 1924.

MR. SECRETARY OF STATE: I have the honor to acknowledge receipt of the note dated this day in which your Excellency sums up the agreement reached in the conferences recently held in this city between the Government of the United States and the Government of the Dominican Republic concerning the treatment which the United States will grant to the commerce of the Dominican Republic and which the Dominican Republic will grant to the commerce of the United States.

Those conferences disclosed a mutual understanding between the two Governments which is that with regard to importation, exportation and other duties and dues to which commerce is subject as also with regard to the transit, storage, and other facilities, the United States, its territories or possessions will grant to the Dominican Republic, and the Dominican Republic will grant to the United States, its territories or possessions, unconditional most favored nation treatment.

It is understood that there shall not be imposed duties of importation or of disposal in the United States, its territories or possessions on articles that are the products of the soil or of the industry of the Dominican Republic higher or other than those that are, or may be payable on said articles when they proceed from the soil or the industry of any other foreign country and, in the same manner, there shall not be levied duties of importation or disposal in the Dominican Republic on articles that are the products of the soil or of the industry of the United States, its territories or possessions higher or other than those which are or may be payable on said articles when they proceed from the soil or the industry of any other foreign country whatsoever.

In the same sense there shall not be imposed in the United States, its territories or possessions, nor in the Dominican Republic on articles exported from one country to the other or to any territory or possession of the other, export duties higher or other than those that are or may be assessed when the said articles are exported to any other foreign country whatsoever.

Any concession granted or that may be hereafter granted by the United States, or by the Dominican Republic by means of a law, decree, resolution, or agreement on the products of any other country with respect to the duties or dues that affect commerce, will as of right extend without request or compensation of any kind to the commerce of the Dominican Republic and that of the United States, its territories and possessions respectively.

Provided, however, that this understanding does not refer:

1. To the treatment that the United States now 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 to the treatment that is granted or may be granted to the commerce between the United States and any of its territories or possessions or to the commerce of its territories and possessions with one another.

2. To the prohibitions or restrictions of a sanitary character or for the protection of human beings, animals or plants, or the regulations for the enforcement of the revenue or police laws.

It is understood that this agreement will go into effect immediately upon the date of its signature and unless terminated before, by common accord, will continue in force until thirty days shall have elapsed after the notice given by one party to the other of its intention to terminate the agreement; but in case either one of the two parties should be unable to fulfill the terms of this agreement by reason of future action of its legislature the obligations which it imposes will be without effect.

I have the honor to inform your Excellency that I have received instructions from my Government to confirm this agreement and to send to Your Excellency this note in reply to yours.

I avail myself [etc.]

J. C. ARIZA

PURCHASE OF THE PROPERTIES OF THE SANTO DOMINGO WATER, LIGHT AND POWER COMPANY BY THE DOMINICAN GOVERNMENT *

839.6463/136: Telegram

The Secretary of State to the Minister in the Dominican Republic

(Russell)

WASHINGTON, January 26, 1924-6 p.m. 1. Your 3, January 17, 11 A. M.38 Department considers proposed bond issue should cover provision for issuance of bonds to Santo Domingo Water, Light and Power Company pursuant to obligations

37 For previous correspondence concerning the properties of the Santo Domingo Water, Light and Power Co., see Foreign Relations, 1923, vol. 1, pp. 918 ff. 38 Not printed.