omitted from the text as submitted by the United States, which would
provide for the application of the Article to imports into Mexico.
  The Mexican negotiators expressed the desire to eliminate Article
XII, the general provision to safeguard concessions. The second
sentence of the Article, providing for termination of the agreement,
was particularly difficult for the Mexicans to accept. They pointed
out that the inclusion of the Article as drafted would be interpreted
in Mexico as a swinging of the big stick by the United States and an
ability to interfere in Mexican affairs not related to the trade agree-
ment. The negotiators agreed to consult with their Government as to
the possibility of leaving in the first sentence of the Article but elim-
inating the second providing for termination.
  On Article XIII, the matter of territorial application of the pro-
visions of the agreement, the Mexican negotiators expressed the desire
that this be discussed directly with Lic. Beteta. They did not know
the reason why the Mexican Government was opposed to the inclusion
in this Article of any reference to the Panama Canal Zone and stated
that it was their confidential understanding that the Mexican Govern-
ment, while it did not agree to inclusion of reference to the Panama
Canal Zone in the agreement proper, would consent to such a, reference
in a separate (and presumably unpublished) exchange of notes. The
negotiators said that there were matters of high policy involved here
which they as technical experts were not qualified to discuss.
  Article XIV, on exceptions to most-favored-nation treatment, was
acceptable to the Mexican Government without change.
  On Article XV on general reservations, the Mexican Government de-
sired that the provisions of the final paragraph relating to Constitu-
tional limitations on the authority of the Federal Government be made
reciprocal.
  The final Article, XVI, providing for proclamation, ratification,
definitive entry into force, duration and termination of the agreement,
was satisfactory to the Mexican Government as proposed by the United
States.
  The question then arose of two articles which the Mexican Govern-
ment desired to add to those proposed by the United States: (1) on
sanitary requirements, providing that each government would do
everything in its power to facilitate shipments in transit in either
country destined for third countries; and (2) relating to the applica-
tion of ad valorem rates of duty and methods of converting currencies.
  On the first point the Mexican negotiators referred to cases, involv-
ing oranges particularly, where on shipments from Mexico to Can-
ada, after fumigation at the United States-Mexican border and seal-
ing of the freight car under customs supervision, transit through
certain individual states in this country was refused. The Mexican
negotiators were informed that this was the first time that any such



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