purchase during the period beginning with the date of your acceptance of the proposal herein contained and ending March 31, 1945; it being understood that all rubber tendered thereafter to Development shall be purchased in accordance with Article Fifth of the aforesaid exchange of notes without the payment of the above-mentioned premium, unless our respective governments shall have agreed in writing to a continuance of the premium thereafter. It is expressly understood and agreed that after making appropriate allowances for differences in grades and quality "the fixed price" as applied to weak fine smoked ball on the basis of delivered weights at San Fernando de Atabapo and other established stations in Federal Territorio Amazonas shall be 35 cents (U. S. Cy.) per pound (Kgs. 0.4536).

Second: In view of the fact that the aforesaid premium is being paid in order (a) to offset increased wages, living costs and other items affecting the cost of rubber production; and (b) to provide a stimulus to maximum production, it is understood and agreed that Development shall discontinue at the earliest practicable date all supplemental payments such as food and recruiting bonuses or other contributions heretofore made by it. However, Development shall continue to furnish, during the period of the premium payment herein provided for, facilities for transporting rubber on the Orinoco River to Sanariapo and Morganito. It is understood that the Venezuelan Government, during the period of the premium payment herein provided for, shall pay an incentive premium of 10 cents (U. S. Cy.) per pound (Kgs. 0.4536) for all rubber produced in Venezuela and in order to offset the high cost of production in Federal Territorio Amazonas shall pay an additional production premium of 19.61 cents (U. S. Cy.) per pound (Kgs. 0.4536) for rubber produced within the boundaries of said territory. It is further understood that the resultant total of price and premiums for smoked ball weak fine rubber produced in Federal Territorio Amazonas amounting to 76.28 cents (U. S. Cy.) per pound shall be distributed in accordance with the following schedule to be established by the Venezuelan Government.

Major Contractors

Sub-Contractors

Producers

4.08 cents (U. S. Cy.) per pound (Kgs. 0.4536) 13.62 cents (U. S. Cy.) per pound (Kgs. 0.4536) 58.58 cents (U. S. Cy.) per pound (Kgs. 0.4536)

The above schedule of distribution shall be applied in like proportion with respect to the corresponding differences in price for other types and qualities of rubber produced in said territory.

Third: The Government of the United States of Venezuela shall cooperate with Development in the following respects:

1. Restrict the use of tires, tubes, and other finished rubber products for essential purposes only, with the ultimate objective of reducing to the greatest extent practicable the quota of rubber allocated to the United States of Venezuela for domestic consumption.

2. Encourage the use in the United States of Venezuela of synthetic and reclaimed rubber to the greatest extent practicable.

3. Announce publicly the establishment of the new prices, including establishing the schedule of prices to be paid at interior points. In addition, such schedule of new prices shall be published in appropriate newspapers, and appropriate circulars (to be supplied by Development) shall be distributed in the rubber producing areas.

4. Establish or cause to be established "the fixed price", plus the net premium payable hereunder by Development, plus the bonuses payable by the Venezuelan Government to the contractors and tappers as the price for all purchases and sales of rubber for domestic consumption or use within the United States of Venezuela.

It is understood that this note, together with Your Excellency's reply in the same terms, shall constitute a binding agreement between the Government of the United States of America and the Government of the United States of Venezuela.

Please accept, Excellency, the renewed assurance of my highest consideration.

I have the honor to record in this note that as a result of the conversations held between Your Excellency and the undersigned, it has been agreed upon between the Government of the United States of Venezuela and the Government of the United States of America that:

[For terms of agreement, see numbered paragraphs in U.S. note, above.]

It is understood that this note and Your Excellency's reply in the same terms shall constitute a binding agreement between the Government of the

United States of Venezuela and the Government of the United States of America.

Please accept, Excellency, the assurances of my highest consideration.

His Excellency

FRANK P. CORRIGAN,

Ambassador Extraordinary and Plenipotentiary
of the United States of America,

City.

C. PARRA PÉREZ

MILITARY SERVICE

Exchange of notes at Washington May 10 and 11, 1945

Entered into force May 11, 1945

1

Terminated March 31, 1947 1

59 Stat. 1602; Executive Agreement Series 476

The Acting Secretary of State to the Venezuelan Ambassador
DEPARTMENT OF STATE

WASHINGTON

May 10, 1945

EXCELLENCY:

I have the honor to refer to conversations which have taken place between officers of the Venezuelan Embassy and of the Department of State with respect to the application of the United States Selective Training and Service Act of 1940,2 as amended, to Venezuelan nationals residing in the United States.

As you are aware, the Act provides that with certain exceptions every male citizen of the United States and every other male person between the ages of eighteen and sixty-five residing in the United States shall register. The Act further provides that, with certain exceptions, registrants within specified age limits are liable for active military service in the United States armed forces. This Government recognizes that from the standpoint of morale of the individuals concerned and the over-all military effort of the countries at war with the Axis Powers, it is desirable to permit certain nationals of cobelligerent countries who have registered or who may register under the Selective Training and Service Act of 1940, as amended, to enlist in the armed forces of their own country, should they desire to do so. It will be recalled that during the World War this Government signed conventions with certain associated powers on this subject. The United States Government believes, however, that under existing circumstances the same ends may now be accomplished

1 Upon termination of functions of U.S. Selective Service System (60 Stat. 341). 254 Stat. 885.

through administrative action, thus obviating the delays incident to the signing and ratification of conventions.

This Government has, therefore, initiated a procedure permitting aliens who have registered under the Selective Training and Service Act of 1940, as amended, who are nationals of certain cobelligerent countries and who have not declared their intention of becoming American citizens to elect to serve in the forces of their respective countries, in lieu of service in the armed forces of the United States, at any time prior to their induction into the armed forces of this country. This Government is also affording to such nationals, who may already be serving in the armed forces of the United States, an opportunity of electing to transfer to the armed forces of their own country. The details of the procedure are arranged directly between the War Department and the Selective Service System on the part of the United States Government and the appropriate authorities of the cobelligerent government concerned. It should be understood, however, that in all cases a person exercising an option under the procedure must actually be accepted by the military authorities of the country of his allegiance before his departure from the United States.

Before the above-mentioned procedure is made effective with respect to a cobelligerent country, this Department wishes to receive from the diplomatic representative in Washington of that country a note stating that his government desires to avail itself of the procedure and in so doing agrees that:

(a) No threat or compulsion of any nature will be exercised by his government to induce any person in the United States to enlist in the forces of his or any foreign government;

(b) Reciprocal treatment will be granted to American citizens by his government; that is, prior to induction in the armed forces of his government they will be granted the opportunity of electing to serve in the armed forces of the United States in substantially the same manner as outlined above. Furthermore, his government shall agree to inform all American citizens serving in its armed forces or former American citizens who may have lost their citizenship as a result of having taken an oath of allegiance on enlistment in such armed forces and who are now serving in those forces that they may transfer to the armed forces of the United States provided they desire to do so and provided they are acceptable to the armed forces of the United States. The arrangements for effecting such transfers are to be worked out by the appropriate representatives of the armed forces of the respective governments;

(c) No enlistments will be accepted in the United States by his government of American citizens subject to registration or of aliens of any nationality who have declared their intention of becoming American citizens and are subject to registration.

This Government is prepared to make the proposed regime effective im