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STATES.

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INICI Is me Ier of remain in force for another DE IT. - subject always in respect zather side of the desire to propose I perod off & Tear to the right on either side to pose is grombed score, three months before its expiraes in the Treaty, ani to the provision that dates are nog sreed upon before the close of de perod f xe rear. The Treaty shall lapse.

Parties be prevented either by judicial decision or Jesave ice the giving full efect to the provisions of ber of the High Contracting the presens ready, the said Treaty shall automatically lapse, and I such lapse or whenever this Treaty shall cease to be to toe, each High Contracting Party shall enjoy all the nes which it would have possessed had this Treaty not been

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The present Convention shall be duly ratified by the President of the United States of America, by and with the advice and consent of the Senate thereof, and by Her Majesty the Queen of the Netherlands; and the ratifications shall be exchanged at Washington as soon as possible.

In witness whereof, the respective Plenipotentiaries have signed the present Convention in duplicate in the English and Dutch languages, and have thereunto affixed their seals.

Done at the City of Washington, this 21st day of August, in the year of our Lord 1924.

CHARLES EVANS HUGHES.

DE GRAEFF.

(Seal)

(Seal)

Exchange of Notes.

(No. 1.)-The Netherlands Minister to the Secretary of State of the United States.

Sir,

Légation des Pays-Bas,

Washington, D.C., August 21, 1924. In connection with the signing to-day of a Convention pertaining to avoid difficulties which might arise between our two Governments in connection with the laws in force in the United States on the subject of alcoholic beverages and in pursuance of our previous correspondence on the subject, I have the honour to inform you that the Royal Government understands that in the event of the adhesion by the United States to the Protocol of the 16th December, 1920, (3) under which the Permanent Court of International Justice has been created at The Hague, the Government of the United States will not be averse to considering a modification of the said Convention, or the making of a separate Agreement, providing that claims as mentioned in Article 4 of that Convention, which cannot be settled in the way as indicated in the first paragraph of that Article, shall be referred to the Permanent Court of International Justice instead of the Permanent Court of Arbitration.

I shall be glad to have you confirm this understanding on behalf of your Government.

Accept, Sir, &c.

DE GRAEFF.

(No. 2.)-The Secretary of State of the United States to the

Sir,

Netherlands Minister.

Department of State,

Washington, August 21, 1924. I have the honour to acknowledge the receipt of your note of to-day's date, in which you were so good as to inform me, in connection with the signing this day of the Convention between the United States and the Netherlands to aid in the prevention of the smuggling of intoxicating liquors into the United States, that the Government of the Netherlands understands that in the event of the adhesion by the Government of the United States to the Protocol of the 16th December, 1920, under which the Permanent Court of International Justice has been created at The Hague, the Government of the United States will not be averse to considering a modification of the said Convention, or the making of a separate Agreement, providing that claims mentioned in Article 4 of that Convention which cannot be settled in the

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(3) Vol. XCIV, page 860.

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way indicated in the first paragraph of that Article shall be referred to the Permanent Court of International Justice instead of to the Permanent Court of Arbitration.

Complying with your request for confirmation of this understanding, I have the honour to state that the Netherlands Government's understanding of the attitude of the Government of the United States in this respect is correct, and that in the event that the Senate gives its assent to the proposal made by the President on the 24th February, 1923, that it consent under certain stated conditions to the adhesion by the United States to the Protocol of the 16th December, 1920, under which the Permanent Court of International Justice has been created at The Hague, the Government of the United States will not be averse to considering a modification of the Convention this day signed, or the making of a separate Agreement, providing for the reference of claims mentioned in Article 4 of the Convention which cannot be settled in the way indicated in the first paragraph of that Article, to the Permanent Court of International Justice instead of to the Permanent Court of Arbitration.

Accept, Sir, &c.

CHARLES E. HUGHES.

EXCHANGE OF NOTES between the United States of America and Nicaragua respecting the Commercial Relations between the Two Countries. Managua, June 11/July 11, 1924. (1)

(No. 1.) The American Chargé d'Affaires ad interim to the Minister for Foreign Affairs of Nicaragua.

Mr. Minister,

United States Legation,

Managua, June 11, 1924. I HAVE the honour to communicate to your Excellency my understanding of the views developed by the conversations which have recently taken place at Managua on behalf of the Governments of the United States and Nicaragua, with reference to the treatment which the United States shall accord to the commerce of Nicaragua and which Nicaragua shall accord to the commerce of the United States.

These conversations have disclosed mutual understanding between the two Governments which is, that in respect to import, export and other duties and charges affecting commerce, the United States will accord to Nicaragua and

(1) "United States Treaty Series, No. 697."

Nicaragua will accord to the United States unconditional most-favoured-nation treatment with, however, the exception of:

1. The special treatment which the United States accords or may hereafter accord to importations from Cuba;

2. Special treatment of commerce between the United States and its dependencies and the Panama Canal zone and among the dependencies of the United States; and

3. The treatment which Nicaragua accords or may hereafter accord to importations from or exportations to Costa Rica, Guatemala, Honduras or Salvador.

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The true meaning and effect of this engagement is that no higher tariff or other duties shall be imposed on the importation into the United States of any articles the produce or manufacture of Nicaragua than are or shall be payable on the importation of like articles the produce or manufacture of any foreign country with the exception of Cuba.

"That no higher or other duties shall be imposed on the importation into Nicaragua of any article the produce or manufacture of the United States than are or shall be payable on like articles the produce or manufacture of any foreign country with the exception of Costa Rica, Guatemala, Honduras or Salvador.

"That, similarly, no higher or other duties or charges. shall be imposed in either of the two countries on the exportation of any articles to the other than are payable on the exportation of the like articles to any foreign country with the exception of those mentioned above."

It is understood that, with the above-mentioned exceptions, every concession with respect to any duty affecting commerce now accorded or that hereafter may be accorded by the United States or by Nicaragua 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 Nicaragua and the United States respectively.

It is, however, the purpose of the United States and Nicaragua and it is herein expressly declared that the provisions of this arrangement shall not be construed to affect the right of the United States and Nicaragua to impose, on such terms as they 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..

The present Arrangement may be terminated by either party on thirty days' notice. In the event, however, that either the United States or Nicaragua shall be prevented by legislative action from giving full effect to the provisions of

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this Arrangement, it shall automatically lapse. I shall be glad to have your confirmation of the accord thus reached. I avail, &c.

WALTER C. THURSTON.

(No. 2.) The Minister for Foreign Affairs of Nicaragua to the American Chargé d'Affaires ad interim.

(Translation.)

Sir,

Republic of Nicaragua National Palace,
Managua, July 11, 1924.

I HAVE the honour to communicate to your Excellency my understanding of the views developed in the conversations recently had in Managua on behalf of the Governments of Nicaragua and the United States with reference to the treatment which Nicaragua shall accord to the commerce of the United States and which the United States shall accord to the commerce of Nicaragua.

These conversations have demonstrated mutual understanding between the two Governments which is that in respect to import, export and other duties and charges affecting commerce Nicaragua will accord to the United States and the United States will accord to Nicaragua unconditional most-favoured-nation treatment with, however, the following exceptions:

1. The treatment which Nicaragua accords or may hereafter accord to importations from or exportations to Costa Rica, Guatemala, Honduras or Salvador;

2. The special treatment which the United States accords or may hereafter accord to importations from Cuba; and

3. The special treatment of commerce between the United States and its dependencies and the Panama Canal zone and among the dependencies of the United States.

The true meaning and effect of this engagement is “that no higher tariff or other duties shall be imposed on the importation into Nicaragua of any articles the produce or manufacture of the United States than are or shall be payable on the importation of like articles the manufacture or produce of any foreign country with the exception of Costa Rica, Guatemala, Honduras and Salvador.

"That no higher tariff or other duties shall be imposed on the importation into the United States of any article the produce or manufacture of Nicaragua than are or shall be payable on like articles the produce or manufacture of any foreign country with the exception of Cuba.

"That, similarly, no higher or other duties or charges shall be imposed in either of the two countries on the exportation of any articles to the other than are or will be

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