FOREIGN ECONOMIC AND COMMERCIAL POLICY


687


exception is that rules governing the initial establishment of business
enterprises are omitted; thus, to the extent that business is conducted
in the corporate form, the draft reverts to US treaty policy of the
reriod between the two World Wars.1 Rule-making on business activi-
ties is confined toIthe moreessential question of the treatment to be
accorded to those enterprises which-are, ormay become, established
within the country. This should alleviate any fears that the treaty
is proposing to lay the country open to dominating penetration by
foreign capital, or to embarrassing demands on the part of feared
third powers who might insist under the most-favored-nation prin-
ciple on securing rights equal to those granted thelUS. The abridged
draft remains as pertinent as the standard draft to the promotion of
private investment, currently the major emphasis of the treaty pro-
gram; but it places this emphasis more patently in the context of the
broader interests that treaties of this nature are calculated to serve
and adjusts it to the simpler requirements of countries most removed
from the stream of western progress. Special attention is given to the
basic personal rights of those who enter the-country or establish there.
ISince standards of law, justice and administration prevailing in the
countries for which the draft is designed tend to be deficient, treaty
assurances as to the protection and security of persons and property
are especially in order if Americans are to go there in furtherance of
the treaty's objective of enhanced trade, investment and intercourse
generally.
  The total coverage of the draft has been expanded by the addition
of an article setting forth certain elementary precepts of international
cooperation and peaceful relations, and of three articles relating to
diplomatic and consular privileges. These four articles, which com-
mence the treaty, visibly give evidence of the treaty's essentially
friendly purpose and give it a more traditional, ceremonial cast than
is the ease with the standard draft. Included in the new draft are
provisions on: general friendly relations; treatment of diplomatic
officials; reception of consular officials; taxation of goods and property,
diplomatic and consular; entry and basic personal rights; juridical
status of companies; access to courts; commercial arbitration; pro-
tection and security of property and other legal interests; rights to
engage in business; rights in real and personal property; industrial
property; taxation of persons and companies; exchange control; entry
and treatment of goods; customs administration; navigation; state
trading; general exceptions; settlement of disputes; and ratification
and termination.
  For a list of such treaties concluded during the period 1920-1940, see
the
Department of State Bulletin, March 22, 1954, p. 443.