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it would have to make a careful study of a commodity like wool which is of importance to the trade of several countries such as Australia, the Argentine and South Africa, as well as New Zealand, and carefully determine the most advantageous policy. The Americans present did not have the expert knowledge regarding wool to judge whether, for example, there were any special characteristics of New Zealand wool which would justify a tariff treatment different from that given to wools from other countries. Mr. Masters said that in that precise connection he and his assistants were proceeding to Boston August 17 to examine into the conditions in the American wool market. He was of the impression that New Zealand wool was of a distinctive grade not produced in the United States and therefore not directly competitive.

In reference to butter, Mr. Masters was told that apparently the United States is working into a position of self-sufficiency and overproduction for the domestic market. American dairy farming was generally regarded as one of the relatively prosperous branches of agriculture but the newspapers were currently reporting rioting in New York State with farmers blockading roads and spilling milk on way to market, and similar troubles had been reported from other States. The Agricultural Adjustment Administration is considering codes for milk producers in the districts supplying the different metropolitan centers-Mr. Masters was shown some twenty mimeographed tentative codes of this sort. The details of this situation are naturally obscure to all except specialists but it did not seem to offer favorable prospects for tariff concessions. The New Zealanders developed considerable interest in this situation

per se.

The question as to the possibilities of marketing New Zealand mutton in the United States was raised by a question on the American side. Mr. Masters expressed great confidence in the possibility of marketing New Zealand mutton, in view of its quality, were there not a prohibitive tariff.

The conversation having lasted an hour or more, Mr. Masters broke off the discussion of individual commodities and raised the question of the possibility of negotiations. New Zealand was eager to have a trade agreement the mere knowledge of this fact might be of interest to the United States at the moment of tariff discussions with the Argentine. He was assured that the United States also desires a tariff agreement and will be glad to take the matter up when it is practical to do so. Mr. Masters inquired how the New Zealand Government would learn that the United States is ready to negotiate. Would it be necessary that all negotiations be conducted at Washington? How can the New Zealand Government keep in touch with the situation? He was assured that this Government will give the New Zealand Government timely information

and reference was made in this connection to the correspondence already exchanged between the New Zealand Government and the American Consul General at Wellington.

611.47H31/30

The Secretary of State to the Consul General at Wellington (Hitch) WASHINGTON, September 7, 1933

SIR: Reference is made to your despatch No. 318 of June 21, 1933, enclosing a copy of a letter from the Acting Prime Minister of New Zealand in which he states that his Government is anxious to enter into negotiations with the Government of the United States with a view to the conclusion of a trade agreement which will be to the mutual advantage of both countries.

For your strictly confidential information you are advised that when the Department's instruction of May 17, and telegram of May 26, 1933, were forwarded to you, the possibility existed that the President would request of Congress general authority for the negotiation of reciprocal trade agreements which would come into force without further action by the Congress, and it was expected that such enabling legislation would be enacted before adjournment of the special session.

In the absence of such legislation, the Department has instituted exploratory conversations with five countries 3 with a view to determining the practicability of negotiating reciprocal trade agreements involving tariff reductions on the part of the United States which would be given effect by Congress subsequent to their conclusion. Until these conversations shall have been concluded and the practicability of this procedure shall have been ascertained, it is not considered advisable to institute further conversations of this character.

There is enclosed for your confidential information a memorandum of conversation on this subject held on August 15, 1933, between officers of the Department and the Honorable Robert Masters, Minister of Education and Minister of Industries and Commerce, Government of New Zealand, and certain officers of the New Zealand Government. As you will note, Mr. Masters was assured that the Government of the United States also wishes to conclude a reciprocal trade agreement with the New Zealand Government and will gladly take the matter up if and when it is practicable to do so.

Very truly yours,

For the Secretary of State:
JEFFERSON CAFFERY

3 For correspondence concerning the discussions with Portugal and Sweden, see post, pp. 640 ff. and pp. 719 ff.; for similar correspondence with Argentina, see vol. iv, pp. 642 ff.; with Brazil and Colombia, see vol. v, pp. 13 ff. and pp. 217 ff.

4 Supra.

UNION OF SOUTH AFRICA

ARRANGEMENT BETWEEN THE UNITED STATES AND THE UNION OF SOUTH AFRICA FOR AIR NAVIGATION, EFFECTED BY EXCHANGE OF NOTES SIGNED MARCH 17, 1933, AND SEPTEMBER 20, 1933

Executive Agreement Series No. 34

The American Minister in the Union of South Africa (Totten) to the Minister of External Affairs of the Union of South Africa (Hertzog)

No. 166

PRETORIA, March 17, 1933.

SIR: I have the honor to communicate the text of the arrangement between the United States of America and the Union of South Africa providing for navigation by aircraft of each country in the territory of the other, as understood by me to have been agreed to in the negotiations which have just been concluded between the Legation and your Ministry, as evidenced by your note of March 13, 19331 (File No. P.M. 66/1/1). AIR NAVIGATION ARRANGEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE UNION OF SOUTH AFRICA

ARTICLE 1

Pending the conclusion of a convention between the United States of America and the Union of South Africa on the subject of air navigation, the operation of civil aircraft of the one country in the other country shall be governed by the following provisions.

ARTICLE 2

The present arrangement shall apply to Continental United States of America, exclusive of Alaska, and to the Union of South Africa, including the adjacent territorial waters of the two countries.

ARTICLE 3

The term aircraft with reference to one or the other Party to this arrangement shall be understood to mean civil aircraft, including state aircraft used exclusively for commercial purposes, duly registered in the territory of such Party.

ARTICLE 4

Each of the Parties undertakes to grant liberty of passage above its territory in time of peace to the aircraft of the other Party, provided that the conditions set forth in the present arrangement are observed.

It is, however, agreed that the establishment and operation of regular air routes by an air transport company of one of the Parties within the 1 Not printed.

territory of the other Party or across the said territory, with or without intermediary landing, shall be subject to the prior consent of the other Party given on the principle of reciprocity and at the request of the party whose nationality the air transport company possesses.

The parties to this arrangement agree that the period in which pilots may, while holding valid pilot licenses issued or rendered valid by either country, operate registered aircraft of that country in the other country for non-industrial or non-commercial purposes shall be limited to a period not exceeding six months from the time of entry for the purpose of operating aircraft, unless prior to the expiration of this period the pilots obtain from the Government of the country in which they are operating, pilot licenses authorizing them to operate aircraft for nonindustrial or non-commercial purposes.

ARTICLE 5

The aircraft of each of the Parties to this arrangement, their crews and passengers, shall, while within the territory of the other Party, be subject to the general legislation in force in that territory, as well as the regulations in force therein relating to air traffic in general, to the transport of passengers and goods and to public safety and order in so far as these regulations apply to all foreign aircraft, their crews and passengers.

Each of the Parties to this arrangement shall permit the import or export of all merchandise which may be legally imported or exported and also the carriage of passengers, subject to any customs immigration and quarantine restrictions, into or from their respective territories in the aircraft of the other party, and such aircraft, their passengers and cargoes, shall enjoy the same privileges as and shall not be subjected to any other or higher duties or charges than those which the aircraft of the country, imposing such duties or charges, engaged in international commerce, and their cargoes and passengers, or the aircraft of any foreign country likewise engaged, and their cargoes and passengers, enjoy or are subjected to.

Each of the Parties to this arrangement may reserve to its own aircraft air commerce between any two points neither of which is in a foreign country. Nevertheless the aircraft of either Party may proceed from any aerodrome in the territory of the other Party which they are entitled to use to any other such aerodrome either for the purpose of landing the whole or part of their cargoes or passengers or of taking on board the whole or part of their cargoes or passengers, provided that such cargoes are covered by through bills of lading, and such passengers hold through tickets, issued respectively for a journey whose starting place and destination both are not points between which air commerce has been duly so reserved, and such aircraft, while proceeding as aforesaid, from one aerodrome to another, shall, notwithstanding that such aerodromes are points between which air commerce has been duly reserved, enjoy all the privileges of this arrangement.

ARTICLE 6

Each of the Parties to this arrangement shall have the right to prohibit air traffic over certain areas of its territory, provided that no

distinction in this matter is made between its aircraft engaged in international commerce and the aircraft of the other Party likewise engaged. The areas above which air traffic is thus prohibited by either Party must be notified to the other Party.

Each of the Parties reserves the right under exceptional circumstances in time of peace and with immediate effect temporarily to limit or prohibit air traffic above its territory on condition that in this respect no distinction is made between the aircraft of the other Party and the aircraft of any foreign country.

ARTICLE 7

Any aircraft which finds itself over a prohibited area shall, as soon as it is aware of the fact, give the signal of distress prescribed in the Rules of the Air in force in the territory flown over and shall land as soon as possible at an aerodrome situated in such territory outside of but as near as possible to such prohibited area.

ARTICLE 8

All aircraft shall carry clear and visible nationality_and_ registration marks whereby they may be recognized during flight. In addition, they must bear the name and address of the owner.

All aircraft shall be provided with certificates of registration and of airworthiness and with all the other documents prescribed for air traffic in the territory in which they are registered.

The members of the crew who perform, in an aircraft, duties for which a special permit is required in the territory in which such aircraft is registered, shall be provided with all documents and in particular with the certificates and licenses prescribed by the regulations in force 1 such territory.

The other members of the crew shall carry documents showing their ties in the aircraft, their profession, identity and nationality. The certificate of airworthiness, certificates of competency and licenses sued or rendered valid by one of the Parties to this arrangement in espect of an aircraft registered in its territory or of the crew of such ircraft shall have the same validity in the territory of the other Party the corresponding documents issued or rendered valid by the latter. Each of the Parties reserves the right for the purpose of flight within 3 own territory to refuse to recognize certificates of competency and enses issued to nationals of that Party by the other Party.

ARTICLE 9

Aircraft of either of the Parties to this arrangement may carry wireapparatus in the territory of the other Party only if a license to all and work such apparatus shall have been issued by the competent horities of the Party in whose territory the aircraft is registered. The use of such apparatus shall be in accordance with the regulations the subject issued by the competent authorities of the territory withThose air space the aircraft is navigating.

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