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APPENDIX C MUTUAL SECURITY--ASSURANCES UNDER MUTUAL

SECURITY ACT OF 1951. AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND (Effected by exchange of notes, signed and entered into force 8 January 1952, 3 UST 4665; TIAS 2622; 126 UNTS 307.) [Only the note from the British Secretary of States for Foreign Affairs to the American Charge d'Affaires ad interim is set forth here.]

Foreign Office, S.W. 1.

8th January, 1952. Sir,

I have the honour to acknowledge the receipt of your Note of to-day's date which reads as follows—

"I have the honour to refer to the conversations which have recently taken place between representatives of our two Governments relating to the Economic Cooperation Agreement between the Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland signed at London on July 6, 1948, as amended by exchanges of notes on January 3, 1950, and on May 25, 1951, to the Mutual Defence Assistance Agreement between our two Governments signed at Washington on January 27, 1950, and to the enactment by the Congress of the United States of the Mutual Security Act of 1951, Public Law 165, 82nd Congress. I also have the honour to confirm the understandings reached as a result of these conversations, as follows

(1) The Government of the United Kingdom have expressed their adherence to the purposes and policies of the Economic Cooperation Act of 1948 as heretofore amended, including the statement of purpose contained in Section 2 of the Mutual Security Act of 1951, which recognises the primary importance of strength

ng the mutual security and individual and collective defences of the free world, developing their resources in the interest of the security and independence and national interest of friendly countries and facilitating the effective participation of those countries in the United Nations system for collective security.

(2) Whenever reference is made in this Note or in any of the articles of the Economic Cooperation Agreement to the Economic Cooperation Act of 1948 or to that Act as amended, or in this Note or in any articles of the Mutual Defence Assistance Agreement to the Mutual Defence Assistance Act of 1949 or to that Act as amended, such reference shall be construed as meaning the Economic Cooperation Act of 1948, or the Mutual Defence Assistance Act of 1949, respectively, as heretofore amended.

(3) The Government of the United Kingdom confirm that they have agreed to: (a) join in promoting international understanding and good

will, and maintaining world peace; (b) take such action as may be mutually agreed upon to elimi

nate causes of international tension; (c) fulfill the military obligations which they have assumed

under multilateral or bilateral agreements or treaties to

which the United States is a party; (d) make, consistent with their political and economic stability,

the full contribution, permitted by their manpower, resources, facilities, and general economic condition, to the development and maintenance of their own defensive

strength and the defensive strength of the free world; (e) take all reasonable measures which may be needed to de

velop their defense capacities; and (f) take appropriate steps to insure the effective utilization of

the economic and military assistance provided by the

United States. (4) The two Governments will establish such procedures as may be practicable under which equipment and material furnished by the Government of the United States under the Mutual Defense Assistance Act of 1949, or by either Government under the Mutual Defence Assistance Agreement of the 27th January, 1950, (other than equipment or material furnished under terms requiring reimbursement) and no longer required by the Government which received them for the purposes referred to in Article II of that Agreement, will be offered for return to the Government which furnished them.

(5) Expenditures of sums allocated to the use of the Government of the United States pursuant to paragraph 4 of Article IV of the Economic Cooperation Agreement will not be limited to expenditures in the United Kingdom.

(6) Paragraph 6 of Article IV of the Economic Cooperation Agreement shall include expenditures for military production, construction, equipment and material. It shall also include expenditures for the encouragement of emigration from participating countries having permanent surplus manpower to areas, particularly the undeveloped and dependent areas, where such manpower can be effectively utilised.

(7) For the purposes of paragraph 7 of Article IV of the Economic Cooperation Agreement, the amount of unencumbered balances referred to in that paragraph shall be determined as of the date of the termination of the assistance program under that Agreement instead of the 30th June, 1952.

(8) The Government of the United Kingdom will so deposit, segregate or protect their title to all funds allocated to them or derived by them from any program of assistance undertaken by the Government of the United States that such funds shall not be subject to garnishee proceedings, attachment, seizure or other legal process by any person, firm, agency, corporation, organization or government.

(9) Pounds sterling will be deposited pursuant to Article IV of the Economic Cooperation Agreement commensurate with assistance on a grant basis in the form of transfers of funds pursuant to Section 111 (d) of the Economic Cooperation Act of 1948, in the same way as amounts commensurate with the dollar cost of commodities, services and technical assistance are deposited pursuant to that Article.

(10) The Government of the United Kingdom will immediately consult Governments of the territories to which the Economic Cooperation Agreement extends under Article XII thereof with a view to securing their consent to the extension to them of all those provisions of this Note which relate to that Agreement. The Government of the United Kingdom will notify the Government of the United States of the extension of those provisions to each territory whose Government gives such consent, and the provişions shall extend to that territory upon receipt of the notification by the Government of the United States.

Upon receipt of a Note from Your Excellency confirming that the foregoing understandings are acceptable to the Government of the United Kingdom, the Government of the United States will consider that this Note and your reply thereto constitute an agreement between the two Governments which shall enter into force on the date of Your Note in reply and shall remain in force as long as either the Economic Cooperation Agreement or the Mutual Defence Assistance Agreement remains in force, except insofar as any part of the present agreement relating to any provision of either of those prior agreements is terminated sooner by the termination of that provision."

In reply I have the honour to confirm to you that the provisions set forth in the said Note are acceptable to His Majesty's Government in the United Kingdom and that they agree with your proposal that your Note and this reply shall constitute an agreement between our two Governments on this subject, which shall enter into force on the date of this Note.

I have the honour to be, with high consideration, Sir,
Your obedient Servant,

(For the Secretary of State)

William Strang Mr. James K. Penfield, etc., etc., etc., 1 Grosvenor Square,

W.1.

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APPENDIX D

TREATY OF FRIENDSHIP, COMMERCE AND NAVIGATION

BETWEEN THE UNITED STATES OF AMERICA AND JAPAN Signed 2 April 1953, entered into force 30 October 1953, 4 UST 2063; TIAS 2863.)

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Article XVII 1. Each Party undertakes (a) that enterprises owned or controlled by its Government, and that monopolies or agencies granted exclusive or special privileges within its territories, shall make their purchases and sales involving either imports or exports affecting the commerce of the other Party solely in accordance with commercial considerations, including price, quality, availability, marketability, transportation and other conditions of purchase or sale; and (b) that the nationals, companies, and commerce of such other Party shall be afforded adequate opportunity, in accordance with customary business practice, to compete for participation in such purchases and sales.

2. Each Party shall accord to the nationals, companies and commerce of the other Party fair and equitable treatment, as compared with that accorded to the nationals, companies and commerce of any third country, with respect to: (a) the governmental purchase of supplies, (b) the awarding of concessions and other government contracts, and (c) the sale of any service sold by the Government or by any monopoly or agency granted exclusive or special privileges.

Article XVIII

1. The two Parties agree that business practices which restrain competition, limit access to markets or foster monopolistic control, and which are engaged in or made effective by one or more private or public commercial enterprises or by combination, agreement or other arrangement among such enterprises, may have harmful effects upon commerce between their respective territories. Accordingly, each Party agrees upon the request of the other Party to consult with respect to any such practices and to take such measures as it deems appropriate with a view to eliminating such harmful effects.

2. No enterprise of either Party, including corporations, associations, and government agencies and instrumentalities, which is publicly owned or controlled shall, if it engages in commercial, industrial, shipping or other business activities within the territories of the other Party, claim or enjoy, either for itself or for

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