modities which may be legally exported from or imported into their respective territories to or from any other foreign country, and not to exercise any discrimination against such trade, as compared with that carried on with any other foreign country, or to place any impediments in the way of banking, credit and financial operations for the purpose of such trade, but subject always to legislation generally applicable in the respective countries. It is understood that nothing in this article shall prevent either party from regulating the trade in arms and ammunition under general provisions of law which are applicable to the import of arms and ammunition from, or their export to foreign countries.

Nothing in this Article shall be construed as overriding the provisions of any general international convention which is binding on either party by which the trade in any particular article is or may be regulated (as for example, the Opium Convention).1

The Anglo-Russian trade agreement deals with a variety of other matters such as the equal treatment of ships in ports, clearing the seas of mines, renewal of postal and telegraphic communication and refraining from propaganda and hostile action. Canada adhered to the agreement as from July 3, 1921.2

Recognition de jure was not considered as effected by the conclusion of this agreement.

Germany and Russia signed a temporary commercial agreement at Berlin, May 6, 1921,3 chiefly for the purpose of resuming something approaching normal relations and of promoting trade. Its contents relate mainly, therefore, to the status of the official representatives of each country in

'League of Nations Treaty Series, vol. iv, pp. 129-130. (Treaty No. 104).

'See Commercial Intelligence Journal, August 12, 1922.

'The agreement is by its terms effective from date of signature. See New York World, May 8, 1921.

the other, to the opening and keeping open of means of communication, to passports, to legalization of documents, and to the rights and privileges of the respective nationals in the territory of the other country. The German representation in Russia is specifically authorized "to import, free of customs taxation, the materials necessary for the maintenance of its office business, as well as for the furnishing of its quarters"; also "necessary food supplies and requisite articles for the support of the German personnel, up to 40 kilograms per person and month." By Article X,

The German Government assures to Russian ships, and the Russian Government to German ships, in their territorial waters and harbors, treatment according to international usage. In case hereafter Russian ships in the merchant trade are granted any special privileges, as state-owned ships, in connection with shipping charges, the Russian Government assures the same privileges to German merchant vessels.

In that case, however, a ship of one of the contracting parties in the harbors of the other party may be made accountable for such money claims as are immediately connected with this ship, as, for instance, harbor tolls, cost of repairs, and claims for damages for shipping collisions.

The treaty which was concluded at Rapallo on April 16, 1922,1 by German and Russian representatives to the Genoa Conference, finally restores normal diplomatic relations between the two countries which were severed by the World War. In accordance with its terms,

1Except for a provision relating to expenditures for war prisoners and to certain other war matters, and for Article 4 (quoted below) the treaty is by its terms immediately effective. Ratifications were exchanged Jan. 31, 1923. The exchange of ratifications covers the extension of the Rapallo Treaty to the other Soviet Republics.

'Rathenau and Tschitscherin.

Both Governments are agreed furthermore that the principle of most-favored-nation shall apply to the general judicial position of the one party in the territory of the other party as well as for the general regulation of trade and economic relations. The principle does not include privileges or facilities which the Soviet Government accords to another Soviet republic or to a similar state which was formerly a component part of the former Russian Empire.1

Italy and Russia have concluded a comprehensive commercial treaty, the ratifications of which were exchanged on March 7, 1924. This treaty is supplemented by a customs convention in which the two countries grant each other most-favored-nation treatment for products which enter particularly into their respective trade.

Italy obtains important reductions in Russian tariff rates; for example, seventy-five per centum on lemons and sixty per centum on other fresh fruit, including oranges. Italian wines, olive oil, marble blocks and slabs, sulphur, certain textiles, farm machinery and automobiles are among the other beneficiaries. In return Italy accords to Russia certain reductions on raw materials.2

Denmark and Russia signed a trade agreement on April 23, 1923, and ratifications were exchanged on June 15, following. According to Article II,

Both parties agree by every means to facilitate trade between the two other countries; such trade shall be carried on in conformity with the legislation in force in each country. Trade between the two countries shall not be subjected to other restrictions or other or higher duties than those imposed on the trade with any other country. Denmark shall, however, not be entitled to claim the special rights and privileges accorded by Russia to a country which has recognised or may recognise

'Art. 4.

2 See Messaggero (Rome), March 8, 1924.

Russia de jure unless Denmark is willing to accord to Russia the corresponding compensations.

1

It is evident that nothing in the treaties here describedand the same may be said for Russian treaties generally— is necessarily antagonistic to the new American commercial policy. It is all but certain that a treaty reciprocally according unconditional most-favored-nation treatment would, if offered by the United States as a means of recognition, be willingly accepted by the Soviet authorities.

69. CZECHOSLOVAKIA

The Republic of Czechoslovakia occupies an area that formerly constituted the northwestern portion of the AustroHungarian Empire. It is apparently the most successful of the war-born states, a fact due not only to the intelligence of its leaders but to its natural advantages and highlydeveloped industrial organization. Czechoslovakia may be thought of as primarily an industrial country; in addition, however, it is able to produce some foodstuffs for export. Coal, iron and other minerals are found in large quantities and there are extensive forests. The population is about fourteen millions. Imports to Czechoslovakia from the United States were valued at less than one and one-half millions of dollars in 1921.2 During the same period Czechoslovakia's exports to the United States amounted to more than eight millions. A considerably larger market for American goods could probably be developed in the event of the relaxation of the stringent system of restrictions now in force.

The new republic made early and active efforts to develop

1Board of Trade Journal, July 5, 1923. "Other," the thirteenth word is probably not intended.

"Statistical Abstract of the United States, 1921, p. 446. Doubtless there was in addition some indirect importation of American goods.

a widespread system of commercial treaties. Negotiations have been undertaken with almost every country in Europe, as well as with Japan and Australia, and have resulted in a large number of agreements.1 Brief mention may here be accorded to four of them— concluded with France, Italy, Portugal and Greece.

France and Czechoslovakia signed an elaborate commercial convention on November 4, 1920. As in the later Franco-Polish and Franco-Finnish treaties, there was serious deviation from the principle of equality of treatment in order to permit special treatment for long lists of commodities.

Czechoslovakia, however, accorded most-favored-nation treatment to natural or manufactured products originating in or coming from France, her colonies and possessions with respect to import duties and to surtaxes, coefficients and increases. The same treatment was also to be accorded to certain listed foodstuffs and colonial products of whatever origin, provided they were imported by French firms. Czechoslovakia reserved the right, however, to make exceptions, under certain circumstances, in favor of bordering

states.

France, in return, granted its minimum tariff rates to a specified list of natural or manufactured goods originating

'In regard to the earlier agreements, see Handbook, p. 33. The liberality of Czechoslovakia in dealing with the other Austro-Hungarian succession states is noteworthy. The treaty signed with Great Britain, July 14, 1923, is especially noteworthy; text, Board of Trade Journal, July 19, 1923, p. 76.

'Effective April 28, 1921; denounced by the French Government, February 2, 1923; prorogued by decree of May 30 until July 15, 1923, under certain stated conditions. Negotiations for a new treaty were promptly begun (Commerce Reports, March 12 and June 18, 1923) and a revised commercial convention was put into force as from Sept. 1 (Board of Trade Journal, Sept. 13, 1923, p. 273.