as that fixed for the division between the two zones of the loans of 1904 and 1910.

The rate of interest, the periods for reduction of principal and for conversion, the conditions of the issue, and, if there is occasion for it, the guarantees of the loan will be determined after an understanding is reached by the two governments.

Debts contracted after the signing of this agreement will not be inIcluded in this liquidation.

The total amount of the debt to be liquidated comprises especially: 1. The advances of the State Bank secured by the 5% of the income from customs;

2. The debts liquidated by the commission appointed by virtue of the regulation of the diplomatic corps of Tangier, dated May 29, 1910. The two governments reserve the right to examine conjointly debts other than those provided for above under numbers 1 and 2, and to verify their legality, and, in case the total of the debts appreciably exceeds the sum of 25,000,000 francs, to include them or not in the liquidation provided for.

ARTICLE 16

Since the administrative autonomy of the French and Spanish zones of influence in the Shereefian Empire cannot impair the rights, prerogatives and privileges granted by the Moroccan Government, in conformity with the Act of Algeciras, to the State Bank of Morocco, for the entire territory of the empire, the State Bank of Morocco will continue to enjoy in each of the two zones all the rights which it possesses from the acts which govern it, without diminution or reservation. The autonomy of the two zones cannot interfere with its activity, and the two governments shall facilitate the free and complete exercise by the State Bank of its rights.

The State Bank of Morocco may, with the consent of the two interested Powers, modify the conditions of its operation with a view to harmonizing them with the territorial organization of each zone.

The two governments will recommend that the State Bank consider a modification of its statutes which will permit:

1. The appointment of a second Moroccan High Commissioner, who shall be designated by the administration of the Spanish zone of influence after an understanding with the administrative council of the Bank;

2. The conferring upon this second High Commissioner of duties as

nearly as possible identical with those of the present High Commissioner, in order to safeguard the legitimate interests of the administration of the zone without impairing the normal operation of the Bank.

All necessary steps will be taken by the two governments for the regular revision, in the sense indicated above, of the statutes of the State Bank and the regulation of its relations with the Moroccan Government. In order to determine and complete the understanding between the two governments as stated in the letter of February 23, 1907 from the Minister of Foreign Affairs of the Republic to the Ambassador of His Majesty the King of Spain at Paris, the French Government binds itself, in so far as the Spanish zone is concerned, with the reservation of the rights of the Bank:

1. To support no candidate to the State Bank;

2. To inform the Bank of its desire to see candidates of Spanish nationality taken into consideration for positions in the said zone.

Reciprocally, the Spanish Government binds itself, in so far as concerns the French zone, with the reservation of the rights of the Bank: 1. To support no candidate to the State Bank;

2. To inform the Bank of its desire to see candidates of French nationality taken into consideration for positions in the said zone.

In so far as concerns:

1. The shares of the Bank which may belong to the Maghzen:

2. The profits coming to the Maghzen in the coinage and recoinage of money, as well as in all other monetary operations (Article 37 of the Act of Algeciras), it is understood that a proportion calculated upon the same basis of percentage as the royalties and profits of the tobacco monopoly will be allotted to the administration of the Spanish zone.

ARTICLE 17

Since the administrative autonomy of the French and Spanish zones of influence in the Shereefian Empire cannot impair the rights, prerogatives and privileges granted by the Moroccan Government, in conformity with the General Act of Algeciras, for the whole territory of the empire, to the International Society for Co-operative Management of the Tobacco Trade (Société internationale de régie co-intéressée des tabacs) in Morocco, the said Society shall continue to enjoy in each of the two zones all the rights which it possesses under the acts which govern it, without diminution or reserve. The autonomy of the two zones may

not interfere with its operation and the two governments shall facilitate the free and complete exercise of its rights.

The present conditions of the working of the monopoly, particularly the sale tariff, may be modified only upon agreement of the two governments. The French Government will not object to the Royal Government's consulting with the management (régie), either with the view of obtaining from that Society the retrocession to third parties of its rights and privileges in their entirety, or with the view of buying in amicably, by anticipation, the said rights and privileges. In case the Spanish Government, in consequence of the anticipated purchase, should desire to modify the general conditions of the operation of the monopoly in its zone, for example, if it wished to reduce the sale price, the two governments must come to an agreement solely for the purpose of safeguarding the interests of the French zone of influence.

The preceding stipulations shall apply reciprocally, in case the French Government should desire to avail itself of the privileges granted above to the Spanish Government.

Since the management (régie) may object to a partial purchase, the two governments now bind themselves to put into operation in both zones as soon as possible, that is to say on the first of January, 1933, so advising the management (régie) before January 1, 1931, the right of purchase provided for in Article 24 of the stipulations. From January 1, 1933, each of the two zones shall become free to establish according to its needs the imposts which are the object of the monopoly.

The two governments shall come to an agreement for the purpose of obtaining (observing the stipulations):

(a) The creation of a second commissioner appointed on behalf of the Spanish zone of influence;

(b) The determination of the powers which this second commissioner would require in order to safeguard the legitimate interests of the administration of the Spanish zone, without impairing the operation of the management (régie).

(c) The equal division between the two commissioners of the sum of 5000 maghzenis rials, in silver, annually paid by the management (régie) for the salary of the commissioner.

In order to maintain during the life of the monopoly the same tariff of selling prices in the two zones, the two governments bind themselves not to subject the management (régie) or its assigns to new imposts without previously coming to an agreement.

The amount of the fines imposed upon the management (régie) for the nonexecution of the stipulations or their violation (Article 31 of the stipulations) will be allotted to the treasury of the zone in which the infringements or violations may be committed.

The fixed annual royalty and the profits (Articles 20 to 23 of the stipulations) will be divided on the basis of a percentage determined by the consumption of the Spanish zone in comparison with the total consumption of the empire. This consumption will be estimated according to the customs receipts which actually remain in the hands of the administration of the Spanish zone, taking into account the transfer provided by Article 13 above.

ARTICLE 18

In so far as the committee on customs receipts is concerned, the special committee of public works and the general committee of adjudication, while these committees remain in force, the appointment of one Shereefian delegate to each one of these three committees will be reserved to the Caliph.

The two governments agree to reserve to each zone and to apply to its public works the amount of the special tax levied in its ports by virtue of Article 66 of the Act of Algeciras.

The respective services are autonomous.

On condition of reciprocity, the delegates of the administration of the French zone will vote with the delegates of the Caliph on questions concerning the Spanish zone, especially questions concerning the determination of the work to be performed with the funds from the special tax, the performance of that work, and the appointment of the personnel which such performance requires.

ARTICLE 19

The Government of the French Republic and the Government of His Catholic Majesty will consult with each other as to:

1. All future modifications of customs duties;

2. Making uniform postal and telegraph tariffs in the interior of the empire.

ARTICLE 20

The railroad line from Tangier to Fez will be constructed and operated under the conditions specified in the protocol annexed to this convention.

ARTICLE 21

The Government of the French Republic and the Government of His Catholic Majesty bind themselves to bring about, in conjunction with the other Powers and on the basis of the convention of Madrid, a revision of the lists and of the status of foreign protégés and agricultural partners provided for by Articles 8 and 16 of that convention.

They likewise agree to request the signatory Powers to consent to such modification of the convention of Madrid, when the time comes, as the change in the government of the protégés and agriculture partners would require, and eventually the abrogation of that portion of the said convention which concerns the protégés and agricultural partners.

ARTICLE 22

The Moroccan subjects who are natives of the Spanish zone of influence will be under the protection of the Spanish diplomatic and consular agents in foreign countries.

ARTICLE 23

In order to avoid as much as possible diplomatic claims, the French and Spanish Governments will take steps with the Sultan and his Caliph to have such complaints as are brought by foreign residents against the Moroccan authorities or those acting as Moroccan authorities, which complaints it may have been impossible to settle through the mediation of the French or Spanish consul and the consul of the interested government, referred to an arbitrator ad hoc in each case, who shall be appointed by agreement between the consul of France or Spain and the consul of the interested government or, in their default, by the two governments of these consuls.

ARTICLE 24

The Government of the French Republic and the Government of His Catholic Majesty reserve the right to establish in their respective zones judicial organizations in accordance with their own systems of legislation. When these organizations are established and the nationals and protégés of each country are subjected, in its zone, to the jurisdiction of these tribunals, the Government of the French Republic in the Spanish zone of influence, and the Government of His Majesty the King of Spain in the French zone of influence, will likewise subject to this local jurisdiction their respective nationals and protégés.