CAB129-45 — Page 226

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13. Japan declares its readiness promptly to conclude with each of the Allied Powers treaties or agreements to put on a stable and friendly basis the commercial and trading relations between them. In the meantime the Government of Japan will, during a period of three years from the first coming into force of the present treaty, accord most-favored-nation treatment to each of the Allied Powers with respect to customs duties, charges and all other regulations imposed on or in con- nexion with the importation and exportation of goods, and will accord national

all that

28

BRITISH DRAFT

Page 1271Pfad Zoncerns the internal taxation, offering for sale, purchase, trans- portation, or use of imported products, including any regulations relating to the mixture processing or use of products in specified amounts or proportions, the United Nations shall be granted national treatment; (c), In all other respects Japan shall make no arbitrary or unjustifiable discrimi- nation against products originating in or destined for any territory of any other foreign country;

(d) United Nations nationals shall be entitled to enter, travel, reside in or leave Japan so long as they satisfy and observe the conditions and regulations applicable therein to the entry, travel, residence and departure of all foreigners;

(e) United Nations nationals shall be accorded national treatment in all matters pertaining to the carrying on of any description of business (including commerce, industry, banking, insurance, finance, shipping and transport) the exercise of professions and occupations and the participation in and carrying on of non-profit making activities of a non-political nature;

(f) Japanese nationals shall not be prevented from concluding contracts of insurance and re-insurance directly or indirectly with nationals, including juridical persons, of any of the United Nations;

(g) United Nations nationals shall be accorded national treatment in all

matters pertaining to the levying of taxes;

(h) United Nations nationals shall be accorded national treatment in respect

of all matters pertaining to access to Courts of Justice;

(i) United Nations nationals shall be accorded national treatment in all matters pertaining to the acquisition, ownership and disposal of property of all kinds;

(j) United Nations nationals shall be accorded national treatment in all matters pertaining to the creation of and participation in juridical persons created under the laws in force in Japan. Any such juridical persons in which United Nations nationals (including juridical persons) have a participation or which they control, shall not be treated less favourably in any respect than any other juridical person created under the laws in force in Japan. Japan shall not as a condition of permitting juridical persons of any nationality to exercise their activities in Japan, impose any restrictions as to the nationality of their directors or employees; (k) United Nations nationals shall be granted equitable treatment (which shall not be less than national treatment) in respect of any measures of expropriation of their property, rights or interests in Japan; (1) United Nations vessels including the passengers and cargoes carried therein, shall be accorded national treatment in respect of all matters pertaining to commerce, navigation and the treatment of shipping. Should, how- ever, any of the United Nations reserve its coasting trade to its own vessels, the provisions of the preceding sentence shall not, in relation to that United Nation, apply to the coasting trade. Japan undertakes not to enter into, or renew any agreement, or take any measure which would prevent or have the effect of preventing United Nations vessels from competing for and carrying passengers and cargoes on an equal footing with Japanese vessels, whether in Japanese territories or elsewhere.

2. The provisions in paragraph 1 shall not be understood to limit the under- taking given by Japan concerning (a) the restoration of the property rights and interests of United Nations and their nationals, or (b) the exemption of United Nations nationals and their property from any exceptional taxes, levies or imposts, imposed on their capital assets for the specific purpose of meeting charges arising out of the war, or of meeting the costs of occupying forces or of reparations payable to any of the United Nations.

3.-(i) In the application of reciprocity under paragraph 1 of this Article, in the case of a United Nation having responsibility for the international relations of any non-metropolitan territory, the metropolitan territory and each such non-metro- politan territory shall be treated as if they were separate United Nations and the treatment to be accorded by Japan to any territory of a United Nation shall be determined by freference to the treatment accorded to papan by thaf territory.

AMERICAN DRAFT

J

29 Page 228 of 587.

Page 228 treatment or most-favored-nation treatment, whichever is more favorable, with respect to the vessels, nationals and companies of the Allied Powers and their property, interests and business activities within Japan. National treatment shall not be deemed to include Japanese coastal and inland navigation. In respect of any of the above matters the Government of Japan may withhold from any Allied Power the application of more favorable treatment than such Power, subject to the exceptions customarily included in its commercial agreements, is prepared to accord Japan in that respect.

Notwithstanding the provisions of the first paragraph of this Article, the Government of Japan will be entitled to apply measures to safeguard its external financial position and balance of payments or its essential security interests, and to reserve the exceptions customarily contained in commercial agreements.