Evening star., 1933-12-13
Text of Hull Proposal
Baaterd Reciprocity Treaties Urged by Secretary of
State at Monteyideo Conference-Would
Aim at Gradual Reduction of Tariffs.

? clude international competition, such as
those which restrict the importation of
particular commodities to less than to
per centum of domestic consumption;
also protective duties or restrictions
which have been in effect for a con-
siderable period Of time without having
brought about domestic production
equal to Is per centum of the total
domestic consumption thereof.
AS a part of this undertaking, they
will revive and revise the convention
of 1927 or agree upon new conven-
ton for the abolition of import and
export prohibitions and restrictions, to-
gether with other general conventions
having in view the removal of impedi-
ments to commerce, and endeavor to
obtain for all such instruments of ac-
ceptance as nearly universal as pos
sible.
The subscribing governments declare
the principle of equality of treaty
stands and must continue to stand as
the basis of all acceptable commercial
policies. Accordingly, they undertake
that whatever agreements they enter
into shall include the most-favored-
nation clause in its unconditional and
unrestricted form, to be applied to all
types of control of international trade,
limited only by such exceptions as may
be commonly recognized as legitimate,
and they undertake that such agree
ments shall not introduce features
which, while possibly providing an i'm
mediate advantage for the contracting
parties, might react disadvantageously
upon world trade as a whole.
The subscribing governments declare
further that the most-favored-
1rff iYln Atnfr efa riy,rr
use OF the quota system or other sys-
TENS for limiting imports the applica-
ton Of these systems in such a way
as to dislocate as little as possible the
relative competitive positions naturally
enjoyed by the various countries in
supplying the articles affected.
With the view to encouraging the
development of unified and comprehen-
sive multilateral treaties as a vitally
important instrument of trade liber-
alization, the advantages of which
treaties ought not to be open to coun-
tries which refuse to confer similar
advantages, the subscribing governments
declare, and call upon all countries to
declare, that they will not invoke their
right to demand under the most-fa-
vored-nation clause contained in BIZ
lateral treaties to which they may be
PAL lISo ally UtllelllS VI IIlulllldttIdl
treaties which have as their general
purpose the liberalization of interna-
tional economic relations and which are
open to the accession of all countries;
provided that such remuneration shall
not operate in SO far as the country
entitled to most-favored- nation treat
ment in fact reciprocally accords the
benefits which it seeks.
For the purpose Of carrying out the
policy embraced in the foregoing un-
dertaking the subscribing governments
favor the establishment of a perma-
nent international agency which shall
closely observe the steps taken by each
Of them in effecting reductions of trade
barriers and which shall upon re-
quest furnish information to them re-
garding the progress made by each in
effectuating the aforesaid program.
In consideration of the premises the
governments of the American republics
earnestly call upon the appropriate
agencies of the World Monetary and
Economic Conference at London. now
in recess, promptly to cooperate in
bringing this proposal to a favorable
conclusion.