When an enterprise of one of the contracting States carries on business in the other State through an employee or agent, established there, who has general authority to negotiate and conclude contracts or has a stock of merchandise from which he regularly fills orders which he receives, this enterprise shall be deemed to have a permanent establishment in the latter State. But the fact that an enterprise of one of the contracting States has business dealings in the other State through a bona fide commission agent or broker shall not be held to mean that such enterprise has a permanent establishment in the latter State. Insurance enterprises shall be considered as having a permanent establishment in one of the States as soon as they receive premiums from or insure risks in the territory of that State. (b) The term "enterprise" includes every form of undertaking whether carried on by an individual, partnership, corporation, or any other entity. (c) The term "enterprise of one of the contracting States" means, as the case may be, "United States enterprise" or "French enterprise". (d) The term "United States enterprise" means an enterprise carried on in the United States of America by a resident of the United States of America or by a United States corporation or other entity. The term "United States corporation or other entity" means a partnership, corporation or other entity created or organized in the United States of America or under the law of the United States of America or of any State or Territory of the United States of America. (e) The term "French enterprise" is defined in the same manner, mutatis mutandis, as the term "United States enterprise". IV The term "life annuities" referred to in Article 8 of this Convention means a stated sum payable periodically at stated times during life, or during a specified number of years to the person who has paid the premiums or a gross sum for such an obligation. V Citizens and corporations or other entities of one of the contracting States within the other contracting State shall not be subjected as regards the taxes referred to in the present Convention, to the payment of higher taxes than are imposed upon the citizens or corporations or other entities of such latter State. VI The provisions of the present Convention shall not be construed to restrict in any manner any exemption, deduction, credit, allowance, or other advantage accorded by the laws of one of the contracting States in the determination of the tax imposed by such State. VII Documents and information contained therein, transmitted under the provisions of this Convention by one of the contracting States to the other contracting State shall not be published, revealed or disclosed to any person except to the extent permitted under the laws of the latter State with respect to similar documents or information. VIII 26 As used in this Convention the term "competent authority" or "competent authorities" means, in the case of the United States of America, the Secretary of the Treasury and in the case of France, the Minister of Finance. IX The term "United States of America" as used in this Convention in a geographic sense includes only the States, the Territories of Alaska and Hawaii, and the District of Columbia. X The term "France", when used in a geographic sense, indicates continental France, exclusive of Algeria and the Colonies. XI Should any difficulty or doubt arise as to the interpretation or application of the present Convention, or its relationship to Conventions between one of the contracting States and any other State, the competent authorities of the contracting States may settle the question by mutual agreement. Done in duplicate at PARIS, this 25th day of July, 1939. WILLIAM C. BULLITT For a modification of para. VIII, see convention of Oct. 18, 1946 (TIAS 1982), post, p. 1183. COMMERCIAL EXCHANGES IN NORTH AFRICA (MURPHY-WEYGAND AGREEMENT) Memorandum of conversation between Robert D. Murphy, American Confirmed by France March 10, 1941 1941 For. Rel. (II) 226 The general phases of the supply of French North Africa with commodities essential to maintain the economic structure in that area were discussed. It was emphasized in the conversation that any agreement on this subject would be, of course, for negotiation between Marshal Pétain's Government and the United States Government in Washington. However, for the purpose of establishing immediately the progress made in the conversations at Lisbon and Tangier on this subject, and to permit the shipment at once of certain goods already ordered in the United States, it was considered necessary to prepare this memorandum, subject naturally to Marshal Pétain's approval. The proposal of the American Government which General Weygand is disposed to recommend to Marshal Pétain contemplates that the shipment of supplies to French North Africa: (1) will not result in building up excessive stocks of commodities; (2) that steps will be taken to insure that such goods, as well as similar goods, shall be consumed in French North Africa and shall not be reexported in any form; (3) with the foregoing in mind the American Government would be authorized to designate American officials for control purposes at ports and on the railways; (4) in the event of a violation of the understanding that such goods would not be reexported, American economic cooperation with French North Africa would automatically and permanently terminate. The American Government, it was understood, would be prepared to facilitate the supply of the essential needs of French Morocco, and also Algeria and Tunisia as well as to unblock adequate French funds now in the United States for the purpose, subject to the foregoing conditions. It was also thought desirable for the successful operation of this understanding that an economic and trade expert, qualified in French African affairs, would be appointed in the United States. Such expert would be attached to the French Embassy in Washington. LEND-LEASE 1 Exchange of notes at London September 3, 1942 56 Stat. 1614; Executive Agreement Series 273 The Representative of the French National Committee to the American Military Representative COMITE NATIONAL FRANÇAIS Le Commissaire National aux Affaires Etrangères PF/BB 4 CARLTON GARDENS. S.W. 1 Whitehall 5444 3RD SEPTEMBER 1942 The French National Committee sets forth below its understanding of the principles governing the provision of reciprocal aid by the United States of America to Fighting France and by Fighting France to the United States. 1. The United States of America will continue to supply Fighting France with such defense articles, defense services and defense information as the President shall authorize to be transferred or provided. 2. Fighting France will continue to contribute to the defense of the United States of America and the strengthening thereof and will provide such articles, services, facilities or information as it may be in a position to supply. 3. The fundamental principle to be followed in providing such aid is that the war production and war resources of Fighting France and of the United States of America should be used by the armed forces of each in the ways which most effectively utilize available materials, manpower, production facilities and shipping space. While each retains the right of final decision in the light of its own potentialities and responsibilities, decisions as to the most effective use of resources shall so far as possible be made in common, pursuant to common plans for winning the war. 4. As to financing the provision of such aid within the fields mentioned below, it is the Committee's understanding that the general principle to be 1 1 See also lend-lease settlement agreements of May 28, 1946 (TIAS 1928, post, p. 1126); Feb. 27, 1948 (TIAS 1930, post, p. 1245); Mar. 14, 1949 (TIAS 1935 and 1936, post, pp. 1300 and 1304); and Jan. 30, 1958 (9 UST 67; TIAS 3979). applied to the point at which the common war effort is most effective is that as large a portion as possible of the articles and services to be provided by each to the other shall be in the form of reciprocal aid. It is accordingly the Committee's understanding that the United States Government will provide in accordance with the Act of March 11, 1941,2 the share of its war production made available to Fighting France. Fighting France will provide on the same terms and as reciprocal aid so much of its war production made available to the United States as it authorizes in accordance with the principles enunciated in the letter. 5. Within territories under the control of Fighting France or within the same theater of operations, the National Committee will provide the United States or its armed forces with the following types of assistance as such reciprocal aid when it is found that they can most effectively be procured in territory under the control of Fighting France. (A). Military equipment, munitions and military and naval stores. (B). Other supplies, materials, facilities and services for the United States forces except for the pay and allowances of such forces, administrative expenses and such local purchases as its official establishments may make other than through the official establishments of Fighting France as specified in paragraph 6. (C). Supplies, materials and services except for the wages and salaries of United States citizens needed in the construction of military projects, tasks and similar capital works required for the common war effort in territory under the control of Fighting France or in the same theater of operations to the extent that such territory is the most practicable source of supply. 6. The practical application of the principles formulated in the letter including the procedure by which requests for aid are made and acted upon shall be worked out by agreement as occasion may require, through the appropriate military or civilian administrative authorities. Requests by the United States forces for such aid will be presented by their duly authorized authorities to official agencies of Fighting France which will be designated or established in the areas where United States forces are located for the purpose of facilitating the provision of reciprocal aid. 7. It is the Committee's understanding that all such aid accepted by the President of the United States or his authorized representatives from Fighting France will be received as a benefit to the United States under the Act of March 11, 1941. In so far as circumstances will permit, appropriate record of aid received under this arrangement, except for miscellaneous facilities and services, will be kept by each. 255 Stat. 31. |