ECONOMIC

AGRICULTURE

INTERNATIONAL AGREEMENT REGARDING THE REGULATION OF PRODUC

Brazil

TION AND MARKETING OF SUGAR, AND PROTOCOL 1

The American Ambassador to Brazil reported by a despatch dated February 4, 1938, that the agreement regarding the regulation of production and marketing of sugar, signed at London on May 6, 1937, had been approved by Brazil by Presidential Decree No. 215, dated January 26, 1938, and published in the Diario Oficial of February 2, 1938.

Haiti-Union of Soviet Socialist Republics

The American Embassy at London transmitted to the Secretary of State with a despatch dated January 5, 1938, a communication dated January 3, 1938, with enclosures, received from the Secretariat of the International Sugar Council regarding the status of ratifications of the sugar agreement, signed at London on May 6, 1937. According to an enclosure, document S.C. 58d, the agreement was ratified by Haiti by decree law on December 29, 1937.

According to an enclosure, document S.C: 58b, the Government of the Union of Soviet Socialist Republics notified the Council on December 29, 1937, that it has decided to ratify the agreement and that the instrument of ratification will be deposited in the near future.

India

The British Ambassador at Washington informed the Secretary of State by a note dated February 18, 1938, that the instrument of ratification by India of the agreement regarding the regulation of production and marketing of sugar, signed at London on May 6, 1937, was deposited in the Foreign Office on January 13, 1938.

The note adds that the countries which have ratified the agreement or made declarations under paragraph 4 of the protocol are as follows:

1 See Bulletin No. 98, November 1937, p. 20.

CONVENTION FOR THE UNIFICATION OF CERTAIN RULES RELATING TO THE PRECAUTIONARY ATTACHMENT OF AIRCRAFT 2

The Netherlands

The Italian Ambassador at Washington informed the Secretary of State by a note dated March 2, 1938, that the instrument of ratification by the Netherlands of the convention for the unification of certain rules relating to the precautionary attachment of aircraft, signed at Rome on May 29, 1933, was deposited with the Italian Government on January 28, 1938.

CONVENTION FOR THE UNIFICATION OF CERTAIN RULES RELATING TO INTERNATIONAL TRANSPORTATION BY AIR, AND ADDITIONAL PROTOCOL (TREATY SERIES, No. 876) 3

Italy

The Polish Ambassador at Washington informed the Secretary of State by a note dated February 23, 1938, that the Italian Government has notified the Polish Government that its ratification, which was deposited on February 14, 1933, of the convention for the unification of certain rules relating to international transportation by air, signed

8 See Bulletin No. 96, September 1937, p. 9; text of convention, 49 Stat. (pt. 2)

at Warsaw on October 12, 1929, includes also the supplementary protocol, signed on the same day.

Trans-Jordan

By a note dated February 23, 1938, the Polish Ambassador at Washington informed the Secretary of State that the adherence by Great Britain, in respect of Trans-Jordan, to the convention for the unification of certain rules relating to international transportation by air, signed at Warsaw on October 12, 1929, has been notified to the Polish Government. The adherence will become effective in accordance with article 38, paragraph 3, of the convention 90 days after December 17, 1937.

COMMERCE

TRADE AGREEMENT BETWEEN CANADA AND SOUTHERN RHODESIA 4

The American Legation at Ottawa reported in a despatch dated December 31, 1937, the abrogation of the trade agreement between Canada and Southern Rhodesia, signed on August 20, 1932, at the Imperial Economic Conference held at Ottawa.

The despatch quotes a memorandum from the Department of National Revenue dated December 20, 1937, addressed to the Collector of Customs and Excise, and others concerned, as follows:

"The trade agreement between Canada and Southern Rhodesia, dated the 20th of August 1932, having been abrogated as provided in Article 4, thereof, effective on and after the second of January 1938, Memorandum No. 604, is hereby cancelled.

"Natural and manufactured products originating in and coming from Southern Rhodesia, imported into Canada on and after the second of January 1938, are entitled to British Preferential tariff treatment, Southern Rhodesia having been extended the benefits of the British Preferential tariff, effective on and after the first of July 1934."

EXCHANGE OF NOTES RESPECTING THE COMING INTO FORCE OF THE PROVISIONAL COMMERCIAL AGREEMENT OF JANUARY 6, 1938, BETWEEN THE UNITED STATES AND CHILE 5

Under the terms of an agreement between the United States and Chile, effected by an exchange of notes, signed by the American Chargé d'Affaires at Santiago and the Chilean Minister of Foreign Affairs, the provisional commercial agreement between the Governments of the two countries, signed at Santiago January 6, 1938, was

See Bulletin No. 37, October 1932, pp. 9, 31.

B See Bulletin No. 100, January 1938. p. 14.

brought into force provisionally as of February 1, 1938, and will come into force definitively 30 days after the date on which it is ratified by the Chilean Congress.

The text of the agreement as set forth in the note of the American Chargé d'Affaires, the stipulations of which are identical with the note of the Minister of Foreign Affairs, is as follows:

"EXCELLENCY:

"I have the honor to inform you that my understanding of our recent conversations on behalf of the Government of the United States of America and the Government of the Republic of Chile is that the Provisional Commercial Agreement between our two Governments, effected by exchange of notes signed January 6, 1938, shall come into force definitively thirty days after the date on which it is ratified by the Chilean Congress. Pending ratification by the Chilean Congress, the Agreement shall come into force provisionally on February 1, 1938, and, unless terminated in accordance with the provisions of numbered paragraph seven thereof, shall remain in provisional effect until ratified by the Chilean Congress or until after the expiration of one year, whichever date occurs first. If the Agreement has not come into force definitively after the expiration of one year from February 1, 1938 it may, within the discretion of both Governments, be signed again and by this means be continued in provisional effect.

"Accept [etc.]"

RECIPROCAL TRADE AGREEMENT BETWEEN THE UNITED STATES AND NICARAGUA (EXECUTIVE AGREEMENT SERIES, No. 95)

By an exchange of notes which took place at Managua on February 8, 1938, the Government of the United States, at the request of the Government of Nicaragua, agreed that, in view of the difficult financial situation with which Nicaragua is confronted, certain provisions of the trade agreement signed on March 11, 1936, be modified. Accordingly, the Governments of the United States and Nicaragua have agreed, by the exchange of notes, that the reciprocal tariff concessions under the trade agreement shall cease to be in force on March 10, 1938. The remainder of the agreement will continue in full force, and the Nicaraguan Government has expressed its readiness to take up with the Government of the United States the question of the renewal or replacement of the deleted provisions as soon as it may be practicable for it to do so.

The Nicaraguan Government has also stated that, while the conversion rate between the paper and gold cordoba will be increased for customs collection purposes, it does not contemplate increasing

* See Bulletin No. 84, September 1936, p. 12; text of agreement, 50 Stat. (pt. 2)

its basic rates of duty on the products of the United States specified in the trade agreement.

The text of the note from the American Minister at Managua to the Nicaraguan Foreign Minister, in reply to a note similar in substance addressed to him by the Foreign Minister, reads as follows:

"Reference is made to recent conversations which have taken place with regard to the desire of the Government of Nicaragua, in view of the emergency financial conditions with which it finds itself confronted, that the trade agreement between the Republic of Nicaragua and the United States of America, signed at Managua on March 11, 1936, be modified in certain respects.

"I now have the honor to confirm and make of record by this note the agreement which, as a result of the conversations referred to, has been reached between the Government of Nicaragua and the Government of the United States that the provisions of Article I, the first paragraph of Article II, Article III (except insofar as it relates to Note I to Schedule I appended to the Agreement), and Article V of the Agreement of March 11, 1936, shall cease to have force and effect on and after March 10, 1938.

"The Government of the United States has noted that, while the conversion rate between the paper cordoba and gold cordoba will be increased for customs collection purposes, the Government of Nicaragua does not contemplate an increase in the basic rates of duty now specified in Schedule I of the trade agreement.

"The Government of the United States has noted with pleasure the willingness of the Government of Nicaragua to enter into negotiations at the earliest practicable date, for the renewal or replacement of the provisions of the above-mentioned Articles of the Agreement of March 11, 1936."

By proclamation of the President issued on February 8, 1938, the tariff concessions granted by the United States to Nicaragua in the trade agreement will cease to be in force on and after March 10, 1938.

FINANCE

TAX CONVENTION BETWEEN THE UNITED STATES AND CANADA (TREATY SERIES, No. 920)7

A ruling by the Internal Revenue Bureau concerning the tax convention between the United States and Canada, signed December 30, 1936, was published on page 7 of the Internal Revenue Bulletin, No. 1, January 3, 1938. This ruling, Income Tax Office Decision 3148, was made under article 143 of the Revenue Act of 1936: "Withholding of tax at source." The question concerned the refunding of tax withheld from income paid to nonresident aliens, residents of Newfoundland, in accordance with the provisions of the reciprocal tax

See Bulletin No. 95, August 1937, p. 21; text of convention, 50 Stat. (pt. 2)