eliminado tan pronto como la situación fiscal del Ecuador mejore lo suficiente como para justificar tal medida. Deseo, también, aprovechar de esta ocasión para confirmar el entendimiento al que han llegado los Gobiernos de la República del Ecuador y de los Estados Unidos de América respecto a que, a pesar de las disposiciones del Artículo X del Convenio Comercial concernientes al control sobre las transacciones de divisas extranjeras que tengan relación con el comercio entre los dos países, los Gobiernos de uno y otro de éllos convienen en aplicar y administrar cualquier control sobre tales transacciones en la siguiente manera: 1. Si el Gobierno de cualquiera de los dos países establece o mantiene cualquier forma de control sobre la manera de efectuar los pagos internacionales, deberá conceder el trato incondicional de la nación más favorecida al comercio del otro país en lo referente a todos los aspectos de tal control. 2.-El Gobierno que establezca o mantenga tal control no impondrá prohibición, restricción o demora alguna a la transferencia del pago por cualquier artículo cosechado, producido o manufacturado en el otro país, que no esté impuesta a la transferencia del pago por un artículo similar cosechado, producido o manufacturado en un tercer país cualquiera. En lo concerniente a tipos de cambio y a impuestos o gravámenes sobre las transacciones de divisas, los artículos cosechados, producidos o manufacturados en el otro país, recibirán incondicionalmente un trato no menos favorable que el que se conceda a los productos similares cosechados, producidos o manufacturados en un tercer país cualquiera. Las anteriores disposiciones se extenderán también a la aplicación de tal control a los pagos incidentales o necesarios para la importación de artículos cosechados, producidos o manufacturados en el otro país. En general, el control será administrado en tal forma que no influya desventajosamente para el otro país, en la relación de competencia entre artículos cosechados, producidos o manufacturados en el un país y los artículos similares cosechados, producidos o manufacturados en terceros países. Queda además entendido que ninguna de las disposiciones de los parágrafos anteriores 1 y 2, o del Convenio Comercial de 6 de Agosto de 1.938, según fué reformado, impedirá que cualquiera de los dos países adopte o ponga en vigencia medidas relativas a la seguridad pública, o que se impongan para la protección de los intereses esenciales del país en tiempo de guerra o de otra emergencia nacional. Aprovecho de esta oportunidad para renovar a Vuestra Excelencia los sentimientos de mi más alta consideración. Al Excelentísimo Señor Don BOAZ LONG, J. TOBAR DONOSO Enviado Extraordinario y Ministro Plenipotenciario Ciudad. REPUBLIC OF ECUADOR MINISTRY OF FOREIGN AFFAIRS COMMERCIAL OFFICE [Translation] N° 33-DC-9 QUITO, March 2, 1942. SUBJECT: MODIFICATION OF THE TRADE AGREEMENT BETWEEN ECUADOR AND THE UNITED STATES OF AMERICA. MR. MINISTER: I have the honor to refer to recent conversations which have taken place with regard to the financial emergency with which the Government of the Republic of Ecuador is today confronted and, in that connection, to certain provisions of the trade agreement between the Republic of Ecuador and the United States of America signed at Quito on August 6, 1938, as amended by notes exchanged at Quito on August 6, 1938, September 9, 1938, and September 13, 1938.[1] In the course of these conversations it has been pointed out that the Government of the Republic of Ecuador finds it necessary, as a fiscal measure designed solely to meet the existing financial emergency, to augment customs revenues, which make up such a large percentage of total revenues, to an extent deemed necessary to safeguard vital interests of the nation. Consideration was given to the possibility of terminating both schedules of the trade agreement as a way out of the difficulty; but neither Government desires to adopt this course if it should be possible to avoid it. Therefore, the conversations to which I have referred have disclosed a mutual understanding which, specifically, is as follows: In view of the existing circumstances, the Government of the United States of America will not invoke the provisions of article I of the trade agreement in respect of the application of the proposed increase in customs duties to articles imported into Ecuador from the United States which are included in schedule I of the agreement. It is understood that such increase will be applied equally to all dutiable imports from all foreign countries and that such increase will not become effective with regard to imports from the United States prior to a period of 30 days from the date of this note. It is understood, further, that such increase will be reduced and finally eliminated as soon as Ecuador's fiscal situation improves sufficiently to warrant such a measure. I also desire to take this occasion to confirm the understanding which has been reached between the Government of the Republic of Ecuador and the Government of the United States of America that, notwithstanding the provisions of article X of the trade agreement concerning the control of foreign-exchange transactions relating 1 [Executive Agreement Series 133; 53 Stat. 1951.] to trade between the two countries, the Governments of the two countries agree to apply and administer any control over such transactions as follows: 1. If the Government of either country establishes or maintains any form of control of the means of effecting international payments, it shall accord unconditional most-favored-nation treatment to the commerce of the other country with respect to all aspects of such control. 2. The Government establishing or maintaining such control shall impose no prohibition, restriction, or delay on the transfer of payment for any article the growth, produce, or manufacture of the other country which is not imposed on the transfer of payment for a like article the growth, produce, or manufacture of any third country. With respect to rates of exchange and with respect to taxes or charges on exchange transactions, articles the growth, produce, or manufacture of the other country shall unconditionally receive treatment no less favorable than that accorded to like articles the growth, produce, or manufacture of any third country. The foregoing provisions shall also extend to the application of such control to payments incidental to or necessary for the importation of articles the growth, produce, or manufacture of the other country. In general, the control shall be administered so as not to influence to the disadvantage of the other country the competitive relationship between articles the growth, produce, or manufacture of that country and like articles the growth, produce, or manufacture of third countries. It is further understood that none of the provisions of paragraphs 1 and 2 above or of the trade agreement of August 6, 1938, as amended, shall prevent either of the two countries from adopting or putting into effect measures relating to public security or imposed for the protection of the country's essential interests in time of war or other national emergency. I avail myself of this opportunity to renew to Your Excellency the assurances of my highest consideration. His Excellency BOAZ LONG, J. TOBAR DONOSO Envoy Extraordinary and Minister Plenipotentiary of the United States of America, City. The American Minister to the Ecuadoran Minister for Foreign Affairs LEGATION OF THE No. 58 Quito, March 2, 1942 I have the honor to acknowledge the receipt of Your Excellency's Note No. 33-DC-9 of today's date with regard to the mutual understanding reached between representatives of the Government of the United States of America and the Government of the Republic of Ecuador concerning the application of certain provisions of the Trade Agreement between our two countries. I have the honor to confirm the statement in Your Excellency's Note of the understanding reached with reference to the matters dealt with therein. Please accept, Excellency, the renewed assurances of my highest and most distinguished consideration. His Excellency Dr. JULIO TOBAR DONOSo, Minister for Foreign Affairs, BOAZ LONG Quito. Apr. 6, 8, 1942 Agreement between the United States of America and Canada respecting application of the Selective Training and Service Act of 1940, as amended, to Canadians in the United States, and reciprocal treatment of American citizens in Canada. Effected by exchange of notes signed March 30 and April 6 and 8, 1942. The Acting Secretary of State to the Canadian Minister March 30 and April 6 and 8, 1942 [E. A. S. 249] DEPARTMENT OF STATE SIR: WASHINGTON I have the honor to refer to conversations which have taken place between officers of the Canadian Legation and of the Department with respect to the application of the United States Selective Training and Service Act of 1940, as amended, to Canadian 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 residing in the United States between the ages of 18 and 65 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 would be desirable to permit certain classes of individuals 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 a co-belligerent 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 through administrative action, thus obviating the delays incident to the signing and ratification of conventions. Nationals of CO Induction procedure proposed. This Government is prepared, therefore, to initiate a procedure belligerent countries. which will permit aliens who have registered under the Selective Training and Service Act of 1940, as amended, who are nationals of co-belligerent 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. Individuals who so elect will be physically |