Signed at Tokyo, April 30, 1936
The representatives of the competent authorities of Manchoukuo and Germany, having duly authenticated their powers, have, for the purpose of promoting the trade relations between the two countries, agreed as follows:
ARTICLE I
The German Administration of Foreign Exchange shall admit the importation of products of Manchoukuo to the amount of 100 million Yuan in value, calculated on the basis of c.i.f. prices, into Germany during the period of one year.
ARTICLE II
The payments in respect of the importation referred to in Article 1 shall be made as to three-fourths (75 million Yuan) in foreign exchange and as to one-fourth (25 million Yuan) in Reichsmarks, the latter to a special account at a bank designated by the authorities of Manchoukuo and to be utilized for the payments to be made in respect of products of Germany imported into Manchoukuo.
ARTICLE III
If, owing to unforeseen circumstances, the exchange situation in Germany should render it impossible for the German Administration of Foreign Exchange to make available foreign exchange to the amount of 75 million Yuan as provided for in Article 2 during the period of one year, the amount of importation provided for in Article 1 may be reduced to not less than 65 million Yuan in value, the payment of which shall be made as to three-fourths in foreign exchange and as to one-fourth in Reichsmarks.
In so far as the annual surplus of foreign exchange accruing to the Reichsbank from German trade with Japan during the period of one year exceeds the amount of 63,750,000 Yuan, such excess shall be made available for additional German importation from Manchoukuo payable in foreign exchange beyond the amount provided for in the preceding paragraph and the importation against payment in Reichsmarks shall be increased by one-third of such excess.
ARTICLE IV
The competent authorities of Manchoukuo shall take the necessary measures to ensure sufficient importation, calculated on the basis of c.i.f. prices, into Manchoukuo of products of Germany during the period of one year, to utilize the whole amount of Reichsmarks paid into a special account in accordance with Article 2 during the same period, which amount may be modified in accordance with Article 3.
ARTICLE V
Products of Germany shipped to Manchoukuo shall be accompanied by a copy of the invoice bearing a statement by the exporter to the effect that they are products of Germany and by a copy of the Export-Declaration through which the Reichsbank is notified by the exporter of the amount of the products invoiced in accordance with the German regulations for the control of foreign exchange. These documents shall be presented to the customs authorities of Manchoukuo. If the latter find any product of Germany unaccompanied by a copy of the Export-Declaration, they shall notify the authorities of Germany of the name of the exporter, the description of the products and the invoiced amount. The term "customs authorities of Manchoukuo" comprisee the customs authorities of Manchoukuo at Dairen, Seishin Rashin and Yuki.
ARTICLE VI
Products of Manchoukuo imported into Germany through a third country shall not fall under the present Arrangement, if the payments for such products are effected under a clearing or compensation agreement between Germany and such third country.
ARTICLE VII
Under the present Arrangement private clearing transactions in trade between Manchoukuo and Germany require the approval of the authorities of the two countries.
ARTICLE VIII
The amount of trade effected between
Manchoukuo and Germany shall be ascertained quarterly at Berlin by the competent representatives of the contracting parties. On such occasions questions arising out of the operation of Article 3 may be settled by consultation between the said representatives.
ARTICLE IX
If, at the end of the period of one year the present Arrangement is renewed and there exists in the total amount of imports from Manchoukuo to Germany or from Germany to Manchoukuo a deficit in or an excess over the amounts provided for in the present Arrangement, the amounts to be fixed for the following year shall be increased or decreased by the amount of such deficit or excess.
ARTICLE X
The organization of the special account in Reichsmarks referred to in Article 2 and the conditions of utilizing such account shall be determined by an agreement between the Reichsbank and the bank referred to in Article 2, which agreement shall be subject to the approval of the contracting parties.
ARTICLE XI
In so far as German exports to Manchoukuo are financed by banks, the competent authorities of Manchoukuo shall not take measures to prevent at least 25% of such financing from being handled by other banks than the bank referred to in Article 2.
ARTICLE XII
The amount of all transactions in the trade between Manchoukuo and Germany entered into prior to the coming into force of the present Arrangement shall be respectively included in the yearly amounts referred to in Articles 1 and 4, so far as payments resulting from such transactions are effected during the period of the present Arrangement.
ARTICLE XIII
For the purpose of the present Arrangement:
a. the term "period of one year" means one year beginning on the date of coming into force of the present Arrangement,
b. the term "products of Germany" means products either exclusively produced in Germany or subjected therein to an essential transformation effected in the course of an ultimate process which has an economic justification,
c. the term "products of Manchoukuo" means products either exclusively produced in Manchoukuo or subjected therein to an essential transformation effected as aforesaid, and,
d. products of the Leased Territory of Kwantung are regarded as products of Manchoukuo.
ARTICLE XIV
The present Arrangement shall come into force on the 1st June, 1936 and shall remain in force for one year from that date.
For the purpose of renewing the present Arrangement the contracting parties shall enter into negotiations not later than two months prior to the expiration thereof.
Done in Tokyo in duplicate, this 30th day of the fourth month of the 3rd year of Kangtê, corresponding to the 30th day of April, 1936.