be in all respects without prejudice to other rights of access, if any, of either Government to the International Court of Justice or to the espousal and presentation of claims based upon alleged violations by either Government of rights and duties arising under treaties, agreements or principles of international law. 2. The Governments of the United States of America and of the Republic of Turkey further agree that such claims may be referred, in lieu of the Court, to any arbitral tribunal mutually agreed upon. 3. It is further understood that neither Government will espouse a claim pursuant to this Article until its national has exhausted the remedies available to him in the administrative and judicial tribunals of the country in which the claim arose. ARTICLE X As used in this Agreement the term "participating country" means (i) any country which signed the Report of the Committee of European Economic Cooperation at Paris on September 22, 1947, and territories for which it has international responsibility and to which the Economic Cooperation Agreement concluded between that country and the Government of the United States of America has been applied, and (ii) any other country (including any of the zones of occupation of Germany, and areas under international administration or control, and the Free Territory of Trieste or either of its zones) wholly or partly in Europe, together with dependent areas under its administration; for so long as such country is a party to the Convention for European Economic Cooperation and adheres to a joint program for European recovery designed to accomplish the purposes of this Agreement. ARTICLE XI 1. This Agreement shall be subject to ratification by the Grand National Assembly of Turkey. It shall become effective on the day on which notice of such ratification is given to the Government of the United States of America. Subject to the provisions of paragraphs 2 and 3 of this Article, it shall remain in force until June 30, 1953, and, unless at least six months before June 30, 1953, either Government shall have given notice in writing to the other of intention to terminate the Agreement on that date, it shall remain in force thereafter until the expiration of six months from the date on which such notice shall have been given. 2. If, during the life of this Agreement, either Government should consider there has been a fundamental change in the basic assumptions underlying this Agreement, it shall so notify the other Government in writing and the two Governments will thereupon consult with a view to agreeing upon the amendment, modification or termination of this Agreement. If, after three months from such notification, the two Governments have not agreed upon the action to be taken in the circumstances, either Government may give notice in writing to the other of intention to terminate this Agreement. Then, subject to the provisions of paragraph 3 of this Article, this Agreement shall terminate either: (a) six months after the date of such notice of intention to terminate, or (b) after such shorter period as may be agreed to be sufficient to ensure that the obligations of the Government of the Republic of Turkey are performed in respect of any assistance which may continue to be furnished by the Government of the United States of America after the date of such notice; provided, however, that Article IV and paragraph 3 of Article VI shall remain in effect until two years after the date of such notice of intention to terminate, but not later than June 30, 1953. 3. Subsidiary agreements and arrangements negotiated pursuant to this Agreement may remain in force beyond the date of termination of this Agreement and the period of effectiveness of such subsidiary agreements and arrangements shall be governed by their own terms. Paragraph 2 of Article III shall remain in effect for so long as the guaranty payments referred to in that Article may be made by the Government of the United States of America. 4. This Agreement may be amended at any time by agreement between the two Governments. 5. The Annex to this Agreement forms an integral part thereof. 6. This Agreement shall be registered with the Secretary-General of the United Nations. IN WITNESS WHEREOF the respective representatives, duly authorized for the purpose, have signed the present Agreement. Done at Ankara, Turkey, in duplicate, in the English and Turkish languages, both texts authentic, this fourth day of July, 1948. For the Government of the United States of America: 1. It is understood that the requirements of paragraph 1 (a) of Article II, relating to the adoption of measures for the efficient use of resources, would include, with respect to commodities furnished under the Agreement, effec tive measures for safeguarding such commodities and for preventing their diversion to illegal or irregular markets or channels of trade. 2. It is understood that the obligation under paragraph 1 (c) of Article II to balance the budget would not preclude deficits over a short period but would mean a budgetary policy involving the balancing of the budget in the long run. 3. It is understood that the business practices and business arrangements referred to in paragraph 3 of Article II mean: (a) fixing prices, terms or conditions to be observed in dealing with others in the purchase, sale or lease of any product; (b) excluding enterprises from, or allocating or dividing, any territorial market or field of business activity, or allocating customers, or fixing sales quotas or purchase quotas; (c) discriminating against particular enterprises; (d) limiting production or fixing production quotas; (e) preventing by agreement the development or application of technology or invention whether patented or unpatented; (f) extending the use of rights under patents, trademarks or copyrights granted by either country to matters which, according to its laws and regulations, are not within the scope of such grants, or to products or conditions of production, use or sale which are likewise not the subjects of such grants; and (g) such other practices as the two Governments may agree to include. 4. It is understood that the Government of the Republic of Turkey is obligated to take action in particular instances in accordance with paragraph 3 of Article II only after appropriate investigation or examination. 5. It is understood that the projects referred to in paragraph 1 of Article III are those approved by the two Governments, in accordance with section 111 (b) (3) of the Economic Cooperation Act of 1948. 6. It is understood that the phrase in Article IV "after due regard for the reasonable requirements of the Republic of Turkey for domestic use" would include the maintenance of reasonable stocks of the materials concerned and that the phrase "commercial export" might include barter transactions. It is also understood that arrangements negotiated under Article IV might appropriately include provision for consultation, in accordance with the principles of Article 32 of the Havana Charter for an International Trade Organization, in the event that stockpiles are liquidated. Unperfected. Art. 32(3) of the Havana Charter reads as follows: "Such Member shall, at the request of any Member which considers itself substantially interested, consult as to the best means of avoiding substantial injury to the economic interests of producers and consumers of the primary commodity in question. In cases where the interests of several Members might be substantially affected, the Organization may participate in the consultations, and the Member holding the stocks shall give due consideration to its recommendations." 308-582-7376 7. It is understood that the Government of the Republic of Turkey will not be requested, under paragraph 2(a) of Article VI to furnish detailed information about minor projects or confidential commercial or technical information the disclosure of which would injure legitimate commercial interests. 8. It is understood that the Government of the United States of America in making the notifications referred to in paragraph 3 of Article VIII would bear in mind the desirability of restricting, so far as practicable, the number of officials for whom full diplomatic privileges would be requested. It is also understood that the detailed application of Article VIII would, when necessary, be the subject of intergovernmental discussion. 9. It is understood that any agreements which might be arrived at pursuant to paragraph 2 of Article IX would be subject to ratification by the Senate of the United States of America. 10. It is understood that in the event it is proposed to make assistance available to Turkey on a grant basis the two Governments will consult with a view to amending the Agreement so as to take adequate provision for the deposit of local currency in accordance with the requirements of the Economic Cooperation Act of 1948, acts amendatory and supplementary thereto, and appropriation acts thereunder. MOST-FAVORED-NATION TREATMENT FOR AREAS UNDER OCCUPATION OR CONTROL Exchange of identical notes at Ankara July 4, 1948 Notice of Turkish ratification given July 13, 1948 62 Stat. 2934; Treaties and Other International Acts Series 1834 The American Ambassador to the Minister of Foreign Affairs1 EMBASSY OF THE UNITED STATES OF AMERICA ANKARA, TURKEY July 4, 1948 EXCELLENCY: I have the honor to refer to the conversations which have recently taken place between representatives of our two Governments relating to the territorial application of commercial arrangements between the United States of America and the Republic of Turkey and to confirm the understanding reached as a result of these conversations as follows: 1. For such time as the Government of the United States of America participates in the occupation or control of any areas in western Germany, the Free Territory of Trieste, Japan or southern Korea, the Government of the Republic of Turkey will apply to the merchandise trade of such area the provisions relating to the most-favored-nation treatment of the merchandise trade of the United States of America set forth in the Trade Agreement between the United States of America and Turkey, signed April 1, 1939,2 or, for such time as the Governments of the United States of America and the Republic of Turkey may both be contracting parties to the General Agreement on Tariffs and Trade, dated October 30, 1947, the provisions of 1 An identical note was sent on the same day by the Minister of Foreign Affairs to the American Ambassador. EAS 163, ante, p. 1136. 'TIAS 1700, ante, vol. 4, p. 639. |