GENERAL AGREEMENT ON TlfQT™'1 TARIFFS AND TRADE

RESTRICTED LIMITED B

GENERAL AGREEMENT O N TlfQT™'1

TARIFFS AND TRADE S L S P M I S H

CONTRACTING PARTIES

Agreement between Nicaragua and El Salvador

for a Tree Trade Area

Addenda

A letter, dated 7 March 1951, and the documents referred to in GATT/CP/104 have been received from tho Minister of Foreign Affairs of Nicaragua and ar« reproduced below:

"I have the honour to confirm the cablegram from the Minister of Foreign Affairs dried yesterday, reading as fullers:

'MY GOVERNMENT BEGS TO NOTIFY, THROUGH YOUR AGENCY, THE CONTRACTING PARTIES TO THE GATT, THAT IT HAS DECIDED TO CONCLUDE A CONVENTION ESTABLISHING A FREE-TRADE AREA WITH THE SISTER REPUBLIC OF EL SALVADOR. AM SENDING CONFIRMATION BY AIR MAIL, TOGETHER WITH TEXT OF THE CONVENTION AND ANNEXES,'

"The Nicaraguan Government firmly intends, as soon as possible, to succeed in concluding a Convention establishing a free-trade area, with the sister Republic of El Salvador. It had already been its intention for some time to establish and apply this Convention, for numerous important reasons set out below,

"The five Central American Republics which constituted the Federation of Central America are economically relatively underdeveloped; since the obstacles to tra.'.e between these countries have, to a great extent, delayed their industrial development and also the national exploitation of their natural resources-• .V? such a degree that in comparison with other Latin American cawnr^ies, these countries may be regarded (with differences of comparatively minor importance) as the least advanced economically, industrially, agriculturally and commercially. The normal and natural markets for the great mass of their products are in the nearest nc^hboiwlng countries. Although, however, they may bo re.-- rded as forwLag a single geographical whole, in some cases, induaXrial development is more important as compared with the resources in raw materials and the produce of agriculture and stock riising, while in others the opposite is true*

GATT/CP/l04/Addol Page 2,

'•The neighbouring and practically adjacent Republics of Nicaragua^ ., and El. Salvador,.c?n:;.i'•?;!:•:•:-o .a .'i '-airfJ a-.r e. f.a:o..t-L i?vv.tP.&.to .of ..the otherP for instance., in the feraer the raw material resources and the produce of agriculture and stock ral-irg are preponderant-, while the latter is more highly developed industrially. In spite of this^ however, trade between the two countries has been almost negligible; owing to customs barriers-and' other restrictions hitherto- existing between the two countries0

"Although the breakup of the Federal Republic of Central America into five separate independent'Republics has generally been regarded as having contributed most regrettably to the isolation of these various countries from one another,, both/«Salvador -nd Nicaragua; which form part of the Federal Republic, have continued for many years to retain a keen desire to re-establish the former Federation; if only partially; and have embodied, in their respective .Constitutions^ provisions making it possible fo conclude treaties between r,he two countries with a view to union with one or :more Central American Republics., and the formation of political parties advocating.such a union,

"In view of the undoubted wish .of the two above Republics to establish a Federal Republic in Central America, the formation of a Customs Union between the two Republics would unquestionably constitute one of the most important steps towards the political union of the two countries, based on reality. As, however, it is. by no means easy to arrive at once at the formation of a customs union of two separate territories which have, for a long time,, applied substantially different customs tariffs, it appeared that the most rational method of establishing such a union would be. to be,gi.n by creating a free-trade, area between .the two countries, which would have the effectp at the outset,- of-aboiishing customs duties and other restrictions to trade in.the majority of products originating in the respective countries which constitute or might constitute nearly all the trade between these territories,

• Ei ; ."For all the above reasons/Salvador and Nicaragua have drawn up

a Convention which provides for establishing., in the future, a customs union between the territories of these States and. to begin with? establishing a free-trade area between them* As will be- apparent from the text, this_ Convention is intended to encourage trade between the

. two Republics^ and not to -disccv.rage trade, between them and other countries,, .

. "In planning, and drafting this Convention, my Government,, has paid great care that this text, it.'- aims-and-its effects would conform strictly to the provisions of- the Gev>?r™l Agreement on Tariffs and Trade, and believes, after er-5 mining it. that all its .provisionsr including notification, have been complied withe

GATT/CP/l04/Add,l Page 3,

FRSE-TRADË TREATY BETWEEN THE REPUBLICS OF NICARAGUA

AND EL SALVADOR

The Government of the Republic of Nicaragua and the Government of the Republic of El Salvador, desirous of strengthening the traditional bonds of fraternal friendsnip which exist between the two countries and of developing still further and to their mutual advantage their trade relations, have decided to conclude a free-trade treaty and have, for this purpose, appointed as their respective plenipotentiaries:

For His Excellency the President of the Republic of Nicaragua,

The Nicaraguan Minister of Foreign Affairs;

For His Excellency the President of the Republic of El Salvador,

The Minister of Foreign Affairs of El Salvador)

Who, after having exchanged their respective credentials and found them in order, have agreed upon the following provisions.

CHAPTER I

TRADE REGIME

Article I

The Contracting Parties hereby declare their intention of establishing at some future time a free-trade area by abolishing the customs duties and other trade restrictions applicable to the majority of products originating in the two countries.

Provisionally, and pending the uniformization of the customs tariffs between the two countries, the signatories hereby decide to adopt a system of commodity lists to which the benefits of this Treaty shall immediately apply.

Article II

The goods originating in the signatory countries, enumerated in the attached schedule constituting Annex A to this Treaty (on condition that these consist of natural products of these countries or articles manufactured mainly from raw materials of either of them), shall be exempt, in both

GATT/CP/lÛ4/Add.l Page 4.

countries, frcm consular fees, and all taxes, charges, surtaxes, fees or dues of a fiscal or local character, due or levied in connection with imports, exports, or the transfer from one country to the other of funds intended for the payment of imports or exports.

It is stipulated, however, that the exemptions contemplated in the preceding paragraph shall not apply to anchorage dues, charges for lighterage, handling or warehousing goods, or to the fees imposed by other port or transport services, which are legally due in the territories of the signatory States, It is also agreed that if one of the goods enumerated in the annexed schedule is liable to internal taxes or duties on the manufacture, sale, or consumption of goods in one of the signatory countries, that country shall be entitled to levy equivalent taxes or duties on similar commodities imported from the other country,

'Article III

Ordinary goods originating from the territories of the Contracting Parties shall, if they figure in the schedule annexed to this Treaty, be exempt from any measure of quantitative control in either of the States in r-uestion, without prejudice, however, to compliance with the formalities applicable to foreign trade.in each of these territories or to any measures of control applied for hygiene or police reasons.

Notwithstanding the above, goods in respect of which the Contracting Parties have expressly reserved their right to adopt measures of total or partial control on importation or exportation, shall be excepted from this provision. Such commodities are indicated in the annexed list by an asterisk followed by an explanatory note specifying the scope of the measures in question.

In the event of one of the Contracting Parties proposing to adopt measures for the quantitative control of imports or exports, as specified in the preceding paragraph, the said State shall proceed in such a way as to reduce to a minimum the unfavourable consequences which such measures might have on the economy of the other State, and shall authorize the normal completion of current transactions which have been duly verified. For this purpose, the said State shall at the appropriate time, furnish the other State with detailed particulars on this matter, so as to enable the tw9 Governments to coordinate their respective action.

The putting into force, modification or cancellation of the measures of quantitative control provided for in paragraph 2 of this Article, shall immediately be communicated to the other State by a note0

GATT/CPAO/f/Add.l Pag© 5.-

Ar t i c l e IV

The schedule which figures in Annex A to this Treaty may be lengthened, shortened, or modified by mutual agreement between the fcwo Governments, by an exchange of notes, provided that the relevant constitutional provisions of the two respective States have previously been complied with»

Article V

The two Contracting Parties, with the firm intention of establishing a customs union between their respective territories, mutually agree that any addition to the annexed schedule shall be preceded, whenever this is possible, by a comparison of the taxes and duties levied by each of the Contracting Parties on the importation of similar goods from countries other than those which formerly constituted the Federation of Central America,

In the case of goods in the manufacture or packing of which raw materials of foreign origin are used, the above-mentioned comparison of customs duties shall also apply to such raw materials or packing.

Article VI

In order to ensure that the goods figuring in the annexed schedule shall enjoy the advantages specified in this Treaty, they must be accompanied by a customs declaration, signed by.the exporter and containing a certificate of origin, and which will be subject to the visa and approval of the customs authorities of both countries, in accordance with the provisions of Annex B of this Treaty,"

• Article VII

The goods which do not figure in the annexed schedule, but which originate in either of the Signatory States, shall enjoy, unconditionally, most-favoured-nation treatment within the territory of the other State as regards everything which concerns customs and subsidiary duties, the methods for recovering such duties, and the rules, formalities and charges connected with customs operations, as well as all or any measures for the control of means of payment and for regulating the international transfer of funds.

It shall, nevertheless, be agreed that most-favoured-<nation treatment, as provided in the preceding paragraph, shall not ap Ay to the advantages granted by one of the Parties, in virtue of free-trade treaties, to one or more of the states formerly belonging to the Central American Federation,

GATT/CP/l04/Add,l Page 6,

CHAPTER II

INTERNATIONAL TRANSIT

Article VIII

Goods coming from the territory of any of the signatory States, or which have been despatched to such territory, shall enjoy the advantages of free transit within the territory of the other State, subject to the administrative, provisions relating to fiscal protection, or public security, in force within the territory through which they are in transit ,

CHAPTER III

EXPORT SUBSIDIES AND UNFAIR COMPETITION

Article IX

No signatory State shall, directly or indirectly, grant export subsidies in favour of goods despatched to the territory of the other State, or institute a regime rendering it possible to sell a given commodity, for the purpose of export to another country, at a price lower than that fixed for the sale of that commodity in the home market, with due allowance for the existing differences in selling conditions and the charges to which it is liable, or any other factors which enter into a comparison of prices»

Any practice prevailing in either of the Signatory States which consists in fixing prices or enforcing price discrimination, and which would take the form of fixing the selling price of a given commodity in the other State at rates lower than those normally resulting from the free play of the supply and demand of that commodity in the exporting country, shall be deemed an indirect export subsidy»

Notwithstanding the above, exemptions from taxation granted by either of the signatory countries for the purpose of developing production shall not be deemed subsidies.

GATT/CP/104/Add.l Page 7.

Article X

With regard to the reprehensible practice of dumping, in conflict with the objects of this Treaty, each of the signatory States shall avoid, with the aid of the legal machinery at its disposal, from exporting the commodities of the said State to the territory of the other State at prices below their normal value, in such a way as to cause prejudice or to threaten to cause prejudice to the interests of any industry established within the territory of the other State, or which would delay the creation of a national industry. Any commodity shall be deemed to have been exported at a price below the normal value if the price of that commodity:

. (a) is lcVer than the comparable price, under normal trade conditions, of a similar commodity intended for consumption in the home market of the exporting country, or

(b) in default of such a price in the home market, is lower than:

(i) the highest comparable price, for export to a third country, of a similar commodity, under normal trade conditions, or,

(ii) the cost of producing such a commmodity in the country of origin, plus a reasonable percentage to cover selling costs and profits.

In each case, account shall be taken of the differences in conditions of sale and taxation, including any other differences which might affect the comparative price,

Article XI .

With a view to eliminating the effects of any direct or indirect export subsidies which might be granted in either of the signatory countries, or the effects of the above mentioned reprehensible practice of dumping, the State which is thereby prejudiced shall be entitled to impose countervailing customs duties, up to the limit of the amount required to lower the difference or the artificial price margin occasioned by the subsidies or the above-mentioned practices, provide4 that the other contracting State shall previously have been notified.

GATT/CP/104/Add.l Page 8,

CHAPTER IV

METHOD OF PAYMENT

Article XII

So long as either of the Contracting.Parties shall continue to apply measures for the control of the international transfer of funds, the signatory States hereby undertake to establish a special system of payments, which will function in conformity with the provisions of Annex C of this Treaty, The provisions in question may be altered by mutual agreement between the two governments by means of an exchange of notes.

CHAPTER V

TRANSPORT •

Article XIII

' Merchant ships of the two signatory States shall be treated, in the ports of the other State open to international trade and while entering, remaining in or leaving harbour in the same way arid under the same conditions as the ships of the latter State, and shall be given the benefit of treatment as favourable as that accorded to vessels of any .other country with regard not only to dues and charges of any kind, but also in respect of the formalities and requirements of any description to which vessels, including their passengers, crews, and cargo are subject.

Article XIV

Commercial aircraft of either of the Contracting States shall be treated in the airports' of the other State open to international traffic in the same way as aircraft of the latter country, and shall receive as favourable treatment as that accorded to the aircraft of any other country. This shall also apply to the passangers, «crew and cargo.

Article XV

Land vehicles registered in either of the Contracting States shall be entitled, in the territory of the other State, to the same treatment as vehicles registered in the latter*

GA'fï/CP/104/Add.l Page 9.

Art ic le XVI

The provisions of the three preceding Articles shall be applied without prejudice to the observance of the formalities relating to the registration and control which are applied in all countries with the entry, stay, or departure of ships, aircraft and land vehicles for security, polios, or sanitary reasons, or for the protection of public or fiscal interests,

CHAPTER VI

INVESTMENTS

Article XVII

Each of the Contracting States shall accord equitable treatment to the capital investments of persons or companies of nationals of the other State, and shall, therefore, refrain from the adoption of discriminatory measures liable to cause prejudice to rights lawfully acquired by such persons or companies,

The capital investments of the nationals of either of the Contracting States shall, furthermore, be entitled, in the territory at the other State, to most~favoured~nation treatment with everything concerning the right to organize agricultural, industrial, commercial, mining or financial undertakings, or to participate in such undertakings; the administration or management of such undertakings; the international transfer of funds for investments, or remitting profits, dividends or amortizations derived from these undertakings.

CHAPTER VII

ADVISORY COMMISSIONS

Article XVIII

The governments of each of the Contracting Parties shall, as soon as possible, set up a National Commission for the purpose of examining the questions relating to this Treaty, with the following functions:

(a) to analyze statistical and other information concerning trade between the two signatory countries;

GATT/CP/3jO/*/Add,l Page 10.

(b) to examine any special cases submitted to it by its own government which concern economic relations between the two countries, and giving its opinion on such questions;

(c) to. undertake a study of and to propose to its own government, or to the Mixed Commission hereinafter referred to, any increases, reductions, or modifications which it might be expedient to embody in the annexed list of goods,..- and also to recommend any measures conducive to the more effective realization of the objects of this Treaty,

Article XIX

The governments of the two States shall appoint delegations, comprising one or more representatives of their respective National Commissions, to constitute a Mixed Trade Commission, which shall meet every six months, and shall have the following functions;

(a) to compare and analyse the statistics and other relevant particulars relating to trade between the two Statesj

(b) to examine and propose any measures which the Commission considers expedient to adopt for the purpose of solving the problems raised by the application of this Treaty;

(o) to examine and recommend any increases, reductions .or modifications in the annexed schedule, and also any useful provisions intended to encourage the economic integration of the two countries and the unification of their customs tariffs, with a view to arriving progressively at the Customs Union which it is the intention of both governments to establish,

CHAPTER

STATISTICAL

Art ici

VIII

INFORMATION

: XX

The statistical services of the two countries shall collect and analyze the data concerning import and export operations effected in virtue of this Treaty, in accordance with the rules established by the respective authorities of the two éignatory States, in agrcenent with the Mixed Commission and in accordance with the provisions of Annex B t^ +-b"\s Trcity0

GATT/CP/lOVAdd,l Page 11 «

CHAPTER IX

GENERAL PROVISIONS

Article XXI

The signatory States hereby decide fraternally to solve', in accordance with the spirit of this Treaty^ any difference which may arise in connection with the interpretation of the application of any of its clauses whatsoever. In the event of their being unable to come to an agreement, the dispute shall be submitted to arbitration.

Article XXII

If either of the Contracting Parties shall conclude a treaty of commerce with another country which had formerly been a member of* the Central American Federation and if such treaty contemplates free trade for all of the greater part of the goods originating, in the territories of one of the parties to this Treaty, the governments signatory to this Treaty shall consult together with a view to adapting their trade relations, if necessary, to the altered situation which has arisen, or to establishing in Central America a more extensive free-trade area than is contemplated in this Treaty,

Article XXIII

This Treaty shall remain valid for a period of two years as from the date of the exchange of ratifications, and shall continue in force indefinitely as long a3 one of the parties has not denounced it? subject to at least six months previous notice.

Notwithstanding the above, however, so long as either of the signatory States shall retain measures for the control of the international transfer of funds, either of the parties shall be entitled to denounce this Treaty if the special payment regime, established in accordance with Article XII, should lapse and if the parties are unable to agree on its renewal, or on the institution of another system satisfactory to both parties. In that case, denunciation shall take effect at the expiration of the period fixed by the State responsible for the denunciation, the period in question being not less than three months.


Article XXIV

This Treaty shall be submitted by the signatory governments to ratification, as provided by their constitutions, and the exchange of ratificatims shall take place, as soon as possible, either at Managua or at San Salvador*.

In confirmation of which the plenipotentiaries of the respective governments have signed this Treaty in two original and authentic copies and have affixed their seal in the city of Managua, the 1951»

GATT/SP/3jO/*/Adda Page 13 ,

ANNEX "A"

SCHEDULE OF GOODS SUBJECT TO FREE TRADE BETWEEN NICARAGUA AND EL SALVADOR

General Remarks; *

(a) Goods specified in this Schedule, if they are to be entitled to the advantages recognized by the Treaty, must originate in the territory of Nicaragua or El Salvador and consist of natural products of the aforesaid countries or articles manufactured mainly from raw materials originating in one of the aforesaid countries. (See Article II of the Treaty)

(b) In all cases where there is a reference to products or articles as "unspecified", this shall be taken to denote that it refers to goods not specifically mentioned in the aforesaid Schedule»

_ _ REMARKS

Horses, mules, donkeys Cattle Subject to export control Pigs Poultry Bees in hives, or others Live animals not specified Poultry and feathered game, dead, fresh Fresh meat, not specified Pork meat of all kinds, prepared or preserved in any unspecified form

Sausages, sausage meat and similar products, canned or otherwise

Meat,not specified, prepared or preserved in any unspecified form

Lard Subject to export control Tallow, animal origin Fresh milk and cream, all grades Yogourth 'Natural dairy butter Cheeses made from milk or cream Cheeses, unspecified Turtle eggs, and other.reptilian eggs *Birds' eggs, all kinds Subject to export control Yolksand whites of eggs, all kinds Fish and shellfish, preserved in any form Bee honey, in any shape *Maize, in its natural state Subject to export and import control Millet or sorghum, in its natural state Subject to export and import control *Rice, in its natural state, or husked

or polished Subject to export and import control Maize flour Rice flour Vegetable flours

'GATT/CP/104/Add.l Page Ik,

GOODS REMARKS

"Pinol" flour, flavoured, and beverages prepared from it

•Yucca flour Onions and garlic, fresh •Potatoes, in their natural state Fresh vegetables and other garden produce, unspecified..

•Beans, all kinds Dried vegetables, unspecified, whether salted or not

Coconuts Fresh fruits in their natural state Dried fruits of all kinds, in any shape Cacao beans, in their natural state Powdered cocoa, including chocolate *Cane sugar, in any shape •Molasses products made from cane sugar,

including treacle •Sweets made from unrefined or brown sugar Confectionery, sweets, candy and caramels made from sugar

Chewing gum made from "Sapoflor" gum or otherwise

Aromatic sauces and condiments, all kinds Spices and vegetable products for making condiments»

Cocoa butter •Edible vegetable fats, unspecified Vegetable oils, fixed, refined (edible or medicinal)

•Marine salts, all kinds Fruit juices and syrups, all kinds Fruit jellies Fruit conserves, sweetened or unsweetened Vinegar, every kind Ground nuts or peanuts, all kinds Unfermented fruit juice Wines made from fruit, locally produced Beer and similar beverages *Spirjts and liquers of all kinds except

tafia rhum Mineral waters Non-alcoholic aerated beverages *Raw hides, of all kinds and in any shape Animal bones and bony portions of horns Bone powder or crushed bones, unrefined Organic fertilizers derived from decomposed industrial waste products or human excreta

Natural fertilizers, unspecified

Subject to export & import control


Subject to export & import control Subject to export & import control

Subject to export control





GOODS REMA.RKS

*Cotton seed " * Sesame Linseed Living plants, natural flowers and seeds, unspecified, except coffee seeds

Linseed oil Solid vegetable oils, unrefined (for industrial use)

Beeswax ^Residues of seeds or fruit used as cattle

fodder, including bran *MLxed seed and grain, whole or crushed,

used as chicken feed *Fodder of all kinds, Unspecified Copra, in any shape "Chicle" chewing gum, in any form

«•Raw rubber or crêpe in any form Peruvian balsam Styrax or liquidambar balsam Raw tobacco Sawn timber, for building ;

Rare woods for cabinet making, undressed or in billets-

Rare woods for cabinet making, sawn, in any shape

Timber; all kinds, unspecified, undressed or in billets

Railway sleepers or longitudinal sleepers of wood

Colouring woods •Wood bark for tanning *Tanning extracts of vegetable origin Straw, vegetable horsehair and similar products in a natural condition and not specially prepared

Wicker, lianas, canes and bamboo in a c

natural condition and not specially prepared

Lime and quicklime *Portland cement : ' *Raw cotton, ginned or uriginned *Sisal fibre Ordinary or common washing soap, in any

form Toilet and bath soaps of all kinds, in whatever form

Medicinal soap Candles and tapers made with natural wax Citronella essence




Subject to export control Subject to export control

Subject to export control Subject to export control Subject to export control


GOODS REMARKS

Perfumery and toilet preparations Medicines made with Peruvian balsam Pharmaceutical products, unspecified. Manufactured tobacco, in the form of cigars

•Tanned leather and hides, all kinds, lri~ Subject to export control eluding finished, dyed, glossy or varnished leather and hides

Leather footwear of all kinds Riding saddles, pack saddles, English

saddles, harness and harness fittings Manufactured leather articles, unspecified

•Uribl«chedccotton thread for fabrics Subject to export & import control • Bleached and coloured cotton thread for fabrics Subject to export & import control Cotton "thread used for sewing bags or ' . fastening parcels

Lovton iisning neus Cotton rope articles, unspecified

•Cotton "manta", unbleached Subject to export & import control •Cotton "manta-dril", unbleached Subject to export & import control •Cotton "manta-dril", bleached Subject to export & import control •Cotton "dril", white or coloured Subject to export & import control Cotton "lona" unbleached Sisal cables, ropes, cordage and string Sisal bags, empty Sisal rope articles: hammocks, nets and similar articles, unspecified

Sisal and cotton cloth sandals Palm leaf hats, all kinds Canvass and crepe shoes Crepe soles and heels Cotton capes and "ponchos" waterproofed with crêpe rubber

Cotton tableclothes and napkins Typical cotton scarves and handkerchiefs Cotton cloth Typical cotton "perrajes" and bedspreads Wooden and wickerwork furniture Wooden toys Baskets of all kinds made of bamboo, Uanas, wickerwork; palm leaves and similar materials

Rugs, mats, and matting made of raffia, straw, palm leaves and similar materials

Kitchen utensils and pottery tableware Tiles, floor tiles and bricks made of clay or pumice stone

Refractory bricks


GOODS REMARKS

Asbestos slabs and tubes Plaster statuettes Clay or terracotta statuette s Matches, fireworks, including bengal fire, firecrackers and fuses

Buttons made of bone, horn or vegetable ivory Brooms and brushes of all kinds


ANNEX "B"

CUSTOMS FORMALITIES AND STATISTICAL INFORMATION

ARTICLE I -

The goods which, in accordance with the provisions of the Free Trade Treaty concluded between the Republics of Nicaragua and El Salvador, are entitled to the benefit of free trade, shall be cleared by the customs services responsible for the despatch and receipt of goods in the two countries after due compliance with the customs formalities and requirements in force in the two countries, and on presentation of the customs declaration specified in Article VI, which shall constitute a certificate of origin.

The certificate of origin contained in the aforesaid declaration shall be submitted to the Central Customs Administration or to the outgoing Customs of the exporting country for visa, and to the Customs bureau of the importing country where the entry of the goods is registered.

In cases where the Customs officials responsible for checking the certificate of origin contained in the aforesaid declaration shall have reason to doubt its authenticity, the case shall be referred for a decision to the administration of their respective countries. ,

ARTICLE II

The declaration referred to in the preceding article shall be drawn up in the form agreed upon by the competent authorities of the two countries acting together, and may be modified at any time by them, after consultation with the Mixed Commission referred to in Article XIX of the Treaty, or at the request of the Commission.

ARTICLE III

The Signatory States agree to examine, with the aid of the Commissions provided for in the Treaty, and adopt the measures necessary for reducing and simplifying the customs formalities and the measures of exchange control applicable to trade between the two countries.

ARTICLE IV

The statistical services of the Signatory States shall adopt, by an agreement to be concluded as soon as possible, a sole nomenclature for the purpose of collecting and analyzing the data relating to imports and exports of goods which result from this Treaty.

The customs administrations of the two countries shall make use of this unified nomenclature for the establishment of statistics of imports and exports.

ANNEX "B" - 19 -

SCHEDULE OF PRODUCTS THE IMPORT OF .VHICH IS DUTY FREE BETWEEN £L SALVADOR & NICARAGUA

Notes The. products numerated in this Schedule, other than natural products, must. in order to be entitled to benefit from the provisions of the Free Trade Treaty concluded between Nicaragua & El Salvador, be manufactured mainly from natural raw materials originating in Nicaragua or in El Salvador,.

Goods Positions El Salvador

Positions Aforo 100 kc Nicaragua El Salvador

(a) •

Aforo 100 k. Nicaragua

Category Nicaragua

Remarks

Horses. , 111-1-01-001 Horses, for breedingc. 111-2-01-001 Horned cattle, not for breeding....................... 112-1-01-001 Horned cattle, for breeding. 112-2-01-001 Pigs, not for breeding 115-1-01-001 Pigs,, for breeding..... 115-2-01-001 Mules and donkeys, not for breeding.. 116-1-01-001 Mules and donkeys, for breeding U6-1-01-001 Poultry, not for breeding 117-1-01-00:. Birds, for breeding, unspecified 117-2-01-001 Other live animals.... (121-1-01-001

(121-2-02-001 (121-2-02-002 (121-2-01-002 (121-2-O1-003

Fresh or chilled meat. (211-1-01-001-A Meat, unspecified, jerked, smoked, or sandwich, in unspecified forms 211-1-03-005

1116 1116

1116

1116 1116 1116

1116

1316

1116

1116 1116 1116 1116 1116 1116 948

951

'•#

%

•if

%

V

£

3*00 p.Hd. Free

6.00 p.Hdc

Eree 7.00 p.Hd. Free

3.00 p.Hd.

3;00 p.Hd.

0.10 p.Hd.

Free Free Free

1.00 0.05 • 0.10

$51.40

$! 51.40

Free Free

Free

Free Free Free

Free

• Free

Free

Free Free Free Free Free Free

$ 2e00 gross

&L0.00 grass

I I

I

I I I

I

I

I

I I I I I I

III

III

I (°) Subject to export control

III (°) Subject to export control

- 20 -


Positions Nicaragua

(a)

Aforo 100 k. El Salvador


Category-Nicaragua

Remarks

Poultry and feathered game, unspecified, • u' dead & frésh, or -chilled or salted.....' ' '(211-1-02-001-A-B 947 & 949 Bac >n, unspecified 211-1-03-001 955 Dac^n,in hermetically sealed boxe3 or con--t a i ne r s :..,:. 211-1-03-002- 1062 Hams, u n s p e c i f i e d . . . . . 211-1-03-003 955 Hams, canned or in hermetically sealed containers.. ......... .... 211-1-03-004 1062 Meat, unspecified, preserved or prepared in unspecified form, with or without vegetables, canned or in hermeti* cally sealed containers 211-1-O4-O02-A 106l Pork meat, preserved or prepared in any way, unspecified, with or without vegetables in hermetically sealed

containers 211-1-04-002-B 106l Poultry and feathered game, unspecified, pre«-served or prepared in any way , with or without vegetables , canned or i n hermeti- 1062 caJJy sealed containers 211-0L-O5-001 1063

$51.40 $51.40

$51,40 $51.40

$51.40

$ 4.00 Net $25.00 Net

• $39.00 Net $25.00 Net

$39.00 Net

I I I

in

I I I I I I

I I I

$51.40

$51.40

$51.40 $51.40

$33-00 Net

$33.00 Net

$39.00 Net $55.00 Net

I I I

I I I

in III

- 21 -


Positions Aforo 100 k. Nicaragua El Salvador

(a)


Category-Nicaragua

Remarks

Sausages, sausage meat and similar products, all kinds, canned or otherwise.-.-..-.;..., 211-1-04-001 Tallow, "of animal origine,. 211-.''i-01-002 Lard ..-.•..... 211-3-01-003

Pasteurised or sterilised milk, nor otherwise treated 211-3-02-001 Pasteurised or sterilised • fresh cream.. ;•.-.»»... 211-3-02-002 Whole milk or skim milk; mothers' milk; acidified milk and cream, dried or powdered, not mixed with other substances 211-3-02-003 Evaporated and conserved milk or cream.".. . . . m 211-3-02-005 Dairy butter, all grades... 211-3-02-006 Cheeses made from milk..... 211-3-02-007 Cheeses, unspecified*...... 211-3-02-008 Yoghourt 211-3-02-011 Fish, and shell fish, unspecified, live or dead, in their natural state, dried, ;211-4-01-001 & salted, smoked or in brine. 211-4-02-001 Eggs, all kinds of, unspecified, in any form........ 211-5-01-001

White & yolks of eggs, of all kinds, unspecified 211-5-01-002

1062-954 376 956

1118

1073

• 51.40 035=00 026.00 Cert.

pure 017*00 Net

039.OO & $25.00 N. Ill 0 9o00 gross II (°) Subject to export

control III (°) " " »

0 3.00

v30.00

Free

$17.00 Net

III

1073

1073 1057 1055 1056 1073

958 959

1117

1054

v30.00

0 6.00 v51.40 v51.40 £51.40 051.40

035.OO £35.00

051.40

051.40

v17.00 Net

017.00 Net v28.00 Net v55.00 Net 033o00 Net 017.OO Net

012.00 G r o s s

012.00 G r°. s s

Free

011.00 Net

III

III III III III III

III (°) Subject to export

III . N control

HI


Bee Honey, in any form, unspecified .. ;. 211-6-01-001 Rice in its natural state». (212-1-01-001

Husked rice (212-1-01-001

Maize i n i t s na tura l s t a t e . 212-1-05-001

Mil le t and sorghum, i n their 212-1-08-001 na tura l s t a t e . . 212-1-07-001 Cereal flours, unspecified. 212-2-02-001 Maize flour ...c 212-2-04-001

Starches, unspecified 212-3-02-001 Fresh vegetables, unspecified 212-4-01-001

Fresh onions and garlic.... 212-4-01-002 Potatoes, in their natural condition 212-4-01-003 Dried vegetables, unspecified, without pod or husk, crushed or otherwise 212-4-02-001 The same, salted,, 212-4-02-002 Beans 212-4-02-003

Chick peaso 212-4-02-004 Fresh fruit, in its natural state- c , 212-5-01-001-A Cocoa-nuts„ „. 212-5-01-001-A Bananas 212-5-01-001-A

Positions Nicaragua

(a)



Category Nicaragua

Remarks

1059 961

961

971

977 977 981 972

973 986 1113 995 994

992

£35.00

020.00

C20.00

Cao.4o £> 8.80 £ 4.00 v26.80 ..26.80 £26.80 018.60 0 5.00

Free

Free

t)14i00 Net $" 4.81 Net

e- 4.81 Net

S 0.83 Net

0 1„03 Net C> 1.03 Net v14.00 Net i 7» 73 Net Ol2;00 Net .. :<U^o & ,17.00 Fres Net 0 1.38 Net £> 4*13 Net

,;- 0.69 Net

III III

III

III

III I

III III III

I III III

III

N,

(°) Subject to export and import control



(°) Subject to export and (°) import control

(°) Sub.lect to export Control

996 996 990 990-A 99

1113 1113 1113

s, 9.36 C51.40 C'10.40

S 9.36

0 5*00 ?- 5.00 0 5.00

0 5»50 Net ,; 5.50 Net s. 1.38 Net

Free Free Free

III III III (°) Subject to export and

import control

III

I III III

- 23 -


Positions Nicaragua

&


I Soto 100. k. Nicaragua

West Indian' bananas......... 212-5-01-001-A Fruit, unspecified, dry, dried or dehydrated.,, including the shell,, in. any kind of container ...7.Ï. 212-5-02-O01-B Dried or -grated .coco- nut, in any kind of container... 325-1-11-001 Coffee seed, for sowing.... 212-6-01-a Cacao, in beans.or. in its' natural state '...,'.'. '.. 212-6-02-001 Chocolate, in any form..... 212-6-02-002 Cacao in powder or tablets, or other unspecified form.. • Refined cane .sugar,, unspecified form. ...'.'..".'.'.. 212-7-01-004

Cane sugar treade or molasse 212-7-01-007

Confectionery, sweets, candy and caramels> unspecified, made from sugar 212-7-4-002 Chewing gum, made from "chicle" gum, or otherwise 212-7-04-004 Spices and herbs, unspecified, raw or in their natural state, dry or dried, -ground or unground, or in a Paste 212-8-01-001

1113 3 5.00

988

1009 1114

998 1053

1000

997

£35.00

035.OO

'

010:28 051,40

035.00

1059 035.00

1053 051.40

1053-A 051.-OO

1018) $ 3.50 1018A)

Free

017.00 Net

028.00 Net Free Net

028.00 Net 055.00 Net

041.00 Net

0 8,94 Net

;,;14.00 Net

s 55.00 Net

055.00 Net

017.00 Net 025.OO Net

Category Nicaragua

Remarks

III

III

III III

III III

II (°) Subject to export and

import control III (°) Subject to export and

import control

in

in

II II

- 2 4 -


Positions Nicaragua

(a)

Aforo MD.k. El Salvador


Category Nicaragua

Remarks

Anatto, coriander, red pimento, ginger, black & white Pjgpper, sage. & thyme raw or/their natural state, 212-8-01-002 dry or dried, ground or un-ground or in paste.. Sesame seed..»».... 212-8-01-O02-B Aromatic sauces, of all kinds, unspecified.. 212-8-02-001 Edible Vegetable oils, unspecified, in wooden containers. 212-9-01-001 The same, in terra cotta... 212-9-01-001 The same, in glass containers 212-9-01-001

Edible Vegetable fats, unspecified..^....... . ....... 212-9-02-001 Sesame oils 212-9-O3-001

Sesame oils, in containers of any kind. Cocoa-nut oil 212-9-O5-O01 Linseed oil 212-9-07-001 Maize seed oili... 212-9-08-001 Ground nut oil. 212-9-09-001 Palm oil 219-9-12-001 Castor oil, unspecified, pure or mixed with soporifics 212-9-14-001

1013 1013-A

355 349

1048

372 372-la

372-lb

957 372-A 372-B

035.OO

^51.40

&&08O 026.80

026.80

O26i80 026.80

372 s.>26i80 370 018.60 371 026.80 372-JL& B-018.6O 372-A 018.60 370 018.60

367-A ,,10.40

017.OO Net O22.OO Net 0 5.50 Gross 0 3.44 Gross

044.00 Net

OlO.OO Gross OllcOO Gross

Ol4«00 Gross

025iOO Net OlliOO Net 014.OO Net

OlO.OO Gross 0 7;00 Gross 0 8.00 Gross OlliOO Net Oll;00 Gross 0 7.00 Gross

s!41i00 Net 67.75* A.V.

n II II II

I I I

III III

I I I

III I II III

II II I

III III II

I I I

- 25 -

- Goods • - - - Positions Positions Aforo 100 k. Afore 100 k. Category Remarks El Salvador Nicaragua El Salvador^ Nicaragua Nicaragua

Irl Cottcn seed oil, refined or unrefined ........... 212-9-15-001 372-A $26.80

... 372-B * Edible soya bean oil 212-9-16-001 372 &26.80

372-A 372-B ' •

Cocoa nut butter., 212-9-21-001 lulJDOl <>68.00 Syrups, unspecified, made from fruitp with or without sugar. 214-1-01-001 1060 &51c40 Natural jellies, unspecified, made with fruit & sugar,,.... 214-1-02-001 1043 tf51.40 Fruit preserves, unspecified.. 214-1-03-001-A 1042 $51.40 Fruit, unspecified, preserved in alchohol, wine or liquors,.."..... » 214-1-04-001-^1078 " s?51*40 Fruit, vegetables & nuts, unspecified, preserved in vinegar, .brine -or -otherwise, in wooden containers 214-1-07-001 1037 &51.40 The same, in glass or terra cotta containers, or boxes, 214-1-^07-001 Fruit, unspecified, preserved in water or in their . own juice, whether cooked or uncooked, or with or without sugar 214-1-09-001 1042 .$51.40 $17.00 Net III

$11;00 Net #14ô00 Net & 7„00 Gross

^77oOO Net

$28.00 Net

028o00 Net

tfl7.00 Net

$22.00 Net

&L2„38 Net

$22.00 Net

II II II

III

II

III

III

III

III

III

- 2 6 -


Positions Aforo 100 k, Aforo lOOLJc. Category Nicaragua El Salvador Nicaragua Nicaragua

Lu

Remarks

Vinegar, in any containers, unspecified 214-3-01-001

214-4-03-002

214-5-01-001

212-1-05-OC1 1030

Ground nuts, in their shell, raw or roasted., Unfermentéd fruit Juices, in any form, unspecified... Wines, made from fruit, not specified , as such e.a. or orange Juice, cashew nut juice, cider, in containers not exceeding one litre.... Wines made from fruit juice, not specified as such, or orange juice, cashew nut juice or cider in containers exceeding one litre 212-1-05-002 Beer, and similar beverages, unspecified, in any containers 212-2-01-001

Rum, made from cane sugar.. 222-4-01-001 do. in containers over one litre 222-3-01-O02 Mineral waters, unspecified 223-1-01^001

1077 1G77-A

1049 '

1036

1030

1031 1031A 1032 1033 1022

1035

$18.60

§35.00

018.60

$19.60

£19.20

^18.60

$75.00

:.175.00 010.40

'4 0.08 Litre $ 0.06 Litre

022.00 Net

0 0.21 Litre

III

in

III

III

0.46 litre in

0 0.46 litre

v 0.83 Dozen 0 0.41 Dozen . 1.65 Dozen 0 0.14 Litre 0 2.63

0 0.08 Litre

" III

III in in III

III

III

in


Haw hides, with or without iairr fresh or green, dried, 311-Falted^ or drjed and salted, 311-

-1-20-001 •a-30^001.

of bovidar, capridar, ovi— 311—1-40-001 -1-50-001 - v o « o « o » . - # j « a dar; or pigs

Leather- unspecified, tanned by any process» and dyed, dressed, or glossy leather^ .> i ».

311-

441-1-01-001

Crocodile skins, in their natural state, or in any stage of preparation^, Skins of lizards ("garrobc O snakes, or other reptiles,„ Calf leather with hair, and any other leather,, ......... Hides of young horses or heaves, and other unspecified hides, for footwear., „„ Other hides and skins, uns-

Horse and cow leather, tanned but not dressed, including sole leather»«...o. Other hides including split hides of cow3 or horses.....

4W--1-01-001

441-1-01-001

441-1-01-001

441-1-01-001

441-1-01-001

441-1-01-001

441-1-01-001

27 -

Positions Aforo 100 k« Aforo IOC k„ Category Remarks Nicaragua El Salvador Nicaragua Nicaragua

795 • v35oOO v 3,00 Gross III

799 799™a 799-b 799 -o ^35,00 799-d 799-e 799-f

c26,95 U15o00 0 9o62 s,>19,00

I I I I I I I I I I I I

793-g

799-h .

799-i

799-3

799-k

798-A

798-B

^35,.00

£35., 00

£35.00

v35«00

C-35.00

ti35oOO

fc35.00

v20»60

C;24,10

C19-00

ia9e00

v28,.00

O28„00 Net

£-41.00 Net

I I I

I I I

I I I

i n

i n

i n

i n

- 28 -

Goods Positions Positions Aforo 100 k, Aforo 100 k„ Category Remarks El Salvador Nicaragua El Salvador Nicaragua Nicaragua

. (a) . .

Deerskin leather 441-1-03-001 795 5 35VOO :•. 0 3«00 Net III Leather goods, unspecified^ whether lined or unlined, untrimmed or trimmed, metal or other materials 442-2-01-001 837 0117.00 0155-OO Net III Leather goods, unspecified, untrimmed or trimmed with ivory, tortoise shell, mother of pearl, silver or silver gilt fittings. 442-2-01-002 837 0330.00 0155.00 Net III Vizors of leather for kepis and caps 442-3-01001 837 0170.00 ,,155.00 Net III Belts of leather, unspecified 442-3-01-003 823 *170.00 s, 155.00 Net III Belts of leather with buckles of ivory, tortoise «hell, mother of pearl, silvered or gilded 442-3-01-004 823 033O.OO s,155.00 Net III Leather collars, unspecified 442-3-01-006 823 I170.00 £155.00 Net III Leather braces 442-3-01-007 Leather gloves, unspecified 442-3-02-001 Leather footwear, unspecified 442-3-03-001 807 à 809 074O;0O in Leather gaiters and leggings 442-3-03-002 Turkish slippers, leather.. 442-3-05-003 Riding saddles, pack saddles, English saddles, harness, bridles, head stales, halters, reins, cruppers, breast harness, martingales and also parts or detached

Bâtt«rî*?f.S?T!î.S 442-3-04-001 816 à 819 0170.00 0113.00 III

837

837

823

823

823 827 804

•7 à 809 0 à 811

033O.OO

0170.00

0170.00

033O.OO

v170.00 0170.00 0170.00

<,740i00 074O.OO 0500.00

0155.OO Net

,,155.00 Net

s, 155.00 Net

s 155.00 Net

vl55.00 Net 03O9.OO Net 0103.00 Net

02.81 - 4.21 i

29 -


Positions Nicaragua


Aforo lOOko Nicaragua

Category Nicaragua

Remarks

Leather cases, kits, revolver holsters and powder flasks..... 442-3-05-001 822 Bones of animals, whether in their natural state, or dried or crushed, and the bony parts of horns 313-1-10-001 1085-A Natural fertilisers, unspecified 317-1-10-001 1115-a Artificial fertilisers, manufactured from industrial waste products.. 317-1-20-001 1115-a White or yellow beeswax, not artificial 319-2-10-001 337 Residues of cotton seed oil-cake, in cakes or any other unspecified form 322-1-32-001 1079 Raw rubber, in any unspecified form. 327-1-10-001 1081 Waterproofs 481 Resins, gums, and resinous vegetable gums, not spe -cified 328-1-10-001 350-A Peruvian or Salvador balsam 328-2-20-004 368 Raw tobacco 329-1-10-001 1103 Rare woods for cabinet making, whether undressed or in billets 331-2-01r^01 691

Rare woods sawn, whether undressed or in billets.... 331-2-02-001 691

$170.00

$ 2.50

0 0.25

0 0.25

£170.00

0 0.25

C- 5.20

t 43.30 0 68.00 § 85.00

Free

Free

$155.00

& 21.00 Net

Free

Free

v 7.00 Gross

§ 0.34 Gross

C 14.00 Net 0 0.69 Net

0 28.00 Net 0 41.25/é ad.val. 0201,88 Net

8 5.50 Net

0 5.50 Net

III

III

III

III

III Subject to export

I (°)control I

III I II

(°)Not reexportable to .•III a third courtry

(°)Not reexportable to III a third country

- 3 0 -

Goods. Positions Positions Aforo 100 k» K\ Salvador Nicaragua El Salvador

Timber, unspecified, undressed or in billets0 „;;•<..-. 331-1-01-001 690 Free

Sawn timber, in beam, balks or planks.. o....... 33Î-1-02-O01 690 Free

Sawn or planed timber,' for,. • • • buildings................. 331-1-03-001 690 Free

Wood, in pieces, for ma- -.- • king xylophones ?..... .. 331-2-03-001 691 Free

Timber, unspecified, in large or small plank} fer. making cases, and boxes».,.. 331-^-05-001 692 C 4.20" Sleepers and longitudinal sleepers for -railways and tramways ,*......,*• -491-1-02-008 690 $ 6.00 Wooden furniture, unspecified, v.dth or without marble fittings^ and including or not including mirrors or glass panes.. „„„. 472-1-01-001 755. 0100.00 Wooden office furniture.... 472-1-02-001 755 & 756 '£100.00 Wooden furniture for domestic use. with or without marble, mirrors or glass panes....... .»......,. 472-1-03-001 755 $100.00 Wooden furniture, or mainly of wood, for theatres, res* taurants, canteens or other similar public establishments 472-1-04-001 755 ;;>100.00


V

V

/ ' •

0

s,1

1*36 (M3)

1.38 (M3>

1.38 (M3-)

5.50 (M3)

5.50

1.38 <M3)

0l5;47 Gross 15.47 & 30.9A

Cl5o47 Gro3s

$15.47 Gross

Category Nicaragua

Remarks

i n

i n

i n

i n

i n

in in

i n

i n

Not reexportable (°)in a third coun

try (°)Not reexportable

in a third country

(°)Not reexportable in a third country Not reexportable

(°)in a third country

(°)Not reexportable in a third country


Wooden furniture for shops and stores, with or without marble, mirrors, or glass panes. . 472-1-05-001 Wooden parts of furniture, ready for assembling 472-1-07-001 wooden chair bottoms 472-1-08-001 Children's runner 472-1-09-001 Manufactured articles of bamboo, rattan, matweed, osier or straw, unspecified 472-6-01-001 Baskets, hampers, and bags. 472-6-02-001 Baskets, hampers, and bags. 472-6-03-001 Curtains and blinds........ 472-6-04-001 Straw cases and bags for bottles. 472-6-05-001 Straw mattresses, rugs, & . mats 472-6-06-001 Dye woods, unspecified..... 331-4-01-001 Bark for tanning 331-4-10-001 Rushesj, wicker, bamboo, in their natural state or merely prepared 331-7-01-001 Rushes, straw, palm leaf or wood fibres, merely préparai, whether coloured or not.... 331-7-02-001 Pumice stone in pieces, powdered, or prepared...... 344-2-11-001

- 3x

Positions Aforo 100 k. Aforo 100 k. Category Remarks Nicaragua El Salvador Nicaragua Nicaragua

(a)

755

755 711 711

787 772 773 763

768

767 691 384-a

758

758-a

26

£100.00

§100.00 v 68,00 0 18.60

Oioo.oo C 51.40 s lOO.OO C 68.00

v 10.40

s. 26.80 0 5.50 G 5.50

v 18.60

i; 18.60

: 2.50

C 15.47 Gross

0 15.47 s> 24.75 0 24.75

0 62.00 £> 62.00 0 62.00 s. 31.00

s 6.19

;: 8.25 •5 5.50 0 1.38 Gross

i 8.25 Gross

i 10.31 Gross

C 3.00 Net

I I I

i n I I I I I I

I I I I I I I I I I I

I I I

I I I I I I

I

I

I

I I

- 3 2 -


Positions Aforo'100 k. Aforo 100 k. . Category Remarks Nicaragua El Salvador Nicaragua Nicaragua

(a)

Lime and quick lime, » ........ 347-1-10-001 Roman and Portland cement,. 348-1—10-001 Raw cotton, unginned-c « *..», 353—1-01-001

Cotton seed for sowing. „... 321-1-3O--O02 Sisal fibre ,, 354-1-01-001

Ordinary washing soaps, hard or soft, in any form.. 412-1-02--001 Cotton fabrics, stuffs, or cloth, made in the country, whether bleached, unbleached or coloured. Kitchen utensils and crockery table-ware „...„„.....,,.„„ 481-4-04-001 Tiles, floor tiles and bricks made of file proof clay........... « • « -, ..v 481-5-06-001 Asbestos sheets and tubes» 481-6-01-003 Fireworks, unspecified,,.«.. 497-3-02-001 Matches, roman candles, bengal flares0„ 497-3-02-002 Ordinary and hirese fire-crackers ..,„........«,....»,>. 497-3-02-003 Bone or horn buttonscs,„.„ 499-2-08-001 Brooms and brushes.,. ,...... 499-2-16-301

26

24 428

393

66-c

2.00 0,35 9.00

1114 Free 536 0 15.30

s 26.80

5.50

0 0.22 Gross s; 0,11 Gross C L,38 Gross

Free • 0 2.06 Gross

10.31 Net

v 25.00

Subject to export III 1 (°)control III 1 (°) Subject to export

& iirrpo;.t control

II 1 (°)Sub;ject to export control

Irrespective of their position in the tariff

III

50-a

12 421

421

421 1085-b 783

Ù 7.20 0 2.50 v 51.40

v 51o40

Cioo.oo 0 43.69 C 18.60

0 0.138 0 lolO 0 21.00 Gross

0 21.00

ij 21.00 Ï? 69.00 Net C 2.06 dozen

III 1 II 1

III 1

III 1

III 1 II 1 III 1

GArr/CP/104/Add.l Page 33.

ANNEX "C

SPECIAL SYSTEM OF PAYMENTS

ARTICLE I

The special system of payment referred to in Article XII of the Free Trade Treaty concluded between the Republics of Nicaragua and El Salvador shall unless the signatory States adopt a different procedure, be applied by their central banks which shall, on behalf of their respective governments, conclude an agreement for this purpose, on the following lines s

(a) The central banks shall open ' accounts in the currency which they have agreed upon, and shall grant each other credits for the amounts and time mutually agreed on such terms as will make it possible to effect transfers from one account to another$

(b) These • " ' accounts shall be used to pay for the importation and exportation of the goods included in the schedule annexed to the Treaty and other specified transations between the two countries;

(c) All settlements through tv.se accounts shall be made at the parity corresponding to the uniform rates for the sale and purchase of privately owned foreign currency prevailing in the two countries, free of any exchange tax or duty whatsoever;

(d) The balance of these accounts shall be calculated at the end of each of the specified periods, and the payment of the credit or debit balance shall be in gold, in U«S. dollars, or in any other currency acceptable to both parties; and

(e) In the event of either of the two parties failing to discharge its obligations according to the procedure and the time limit agreed upon, the agreement between the two banks shall cease to have effect, without prejudice to the generally recognized rights of a creditor to take, wholly or partly, into account such unpaid balances in the settlement of international transactions between the two countriesa

ARTICLE II

The payment agreement to be concluded between the central banks, in accordance with the provisions of Article I above, shall be submitted to the Governments of the signatory States for approval, who shall in turn guarantee the fulfilment of the liabilities incurred by their respective central banks in virtue of the aforesaid agreement and shall undertake to make good losses which might result from failure to meet these liabilities.

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Documents

GENERAL AGREEMENT ON TlfQT™'1 TARIFFS AND TRADE