Note to X, 268 (b)—Continued which made the convention's effectiveness "conditional on its ratification by Czechoslovakia and Poland or either of these countries, as the case may be, ratified the convention before May 31, 1930.” On June 30 in any year up to 1934 any state could relieve itself of the obligations if the convention were in force for less than 18 states. The Polish Government in a note of June 19, 1930 to the Secretary-General of the League of Nations explained its position with respect to the international convention. It had signed the convention of November 8, 1927 as a result of a desire to promote the efficacy of international economic cooperation but did not see its way to submit the convention to the Diet for ratification "until freedom of circulation for articles essential to Polish trade has been reestablished for the duration of the convention by means of bilateral agreements or in some other way". The reasons why Poland did not consider it possible to open its markets unrestrictedly to foreign imports were as follows (Department of State, Treaty Information Bulletin, No. 10, p. 13): "II. Poland's position in.regard to international trade is extremely difficult. In particular the situation with regard to exports is such that, as regards manufactured articles, the markets lie to the east of Polish territory, whereas exports of raw materials and agricultural produce find their natural markets in Western Europe. In other words, Poland cannot introduce a system of unrestricted imports unless and until she receives an assurance that her exports will enjoy such conditions as will enable them to develop naturally and unrestrictedly. "III. As a result of the fundamental change in the economic structure of the territories lying to the east of Poland, exports of Polish manufactured articles to those territories have been reduced to very small proportions, and bear no relation to the pre-war volume of exports from Poland to those markets. "IV. In view of the above, Poland is obliged to consider more and more carefully the development of her export trade to western countries. If such conditions could be brought about as would enable her to develop fully and freely her export trade in raw materials and agricultural produce, Poland would have no difficulty in opening her market wider to foreign goods. That export trade is, however, going through a period of serious depression, and the International Convention of November 8th, 1927 makes no real Note to X, 268 (b)—Continued change in the present position, Article 4 making no provision for penalties and Article 6 (and Annex) allowing for exceptions in favor of certain States. "V. The events of the last few months and the result of the conversations between Poland and other States concerned show not only that Poland is unable, as things are at present, to obtain better conditions for her exports of livestock, agricultural produce, and raw materials to western countries, but that, as has lately been observed, conditions are becoming worse every year, and even every month." On January 1, 1930 the convention went into force for Great Britain, Belgium, Austria, Luxembourg, Switzerland, the Netherlands, Rumania, Hungary, France, Sweden, Finland, Denmark, Japan, the United States, Italy, Portugal, Yugoslavia (Serb-Croat-Slovene State), Germany, and for Czechoslovakia on June 25. On March 17, 1930 Germany and Poland signed a commercial treaty. With that treaty signed, the period within which Poland's ratification was receivable was extended to June 26. The obligations of the convention were assumed without being conditioned on the ratification of other states only by Great Britain, Sweden, Finland, Denmark, Japan, Norway, the United States, and Portugal. Czechoslovakia's application of the convention "must depend on its ratification by Poland". A note in the League of Nations Treaty Series (97, p. 397) says: "The abstention of Poland . . . caused certain Governments, namely those of Germany, Austria, Belgium, Hungary, Italy, Luxembourg, Rumania and Switzerland, to announce that, as from July 1, 1930, they would cease to consider themselves bound by the convention." By the terms of the 1929 protocol Denmark, France, and Yugoslavia ceased to be bound as from the same date. The remaining contracting parties ceased to be bound as follows: Portugal, June 30, 1931; Denmark, Norway, the United Kingdom, and the United States, June 30, 1933; Japan and the Netherlands, June 30, 1934. The date of the German-Polish "tariff war" was determined by the convention on Upper Silesia of May 15, 1922, which in article 224 and by application of article 268 of the treaty of peace accorded Polish products free entry into Germany for three years from the entry of that convention into force, that is, until June 15, 1925. On the other hand, by article 90 of the treaty of peace Poland was prohibited from putting export duties on products destined for Germany for a period of 15 years. Note to X, 268 (b)—Continued Despite the provisional convention of January 13, 1925 Germany virtually ceased to consider granting import licenses for Polish coal. Poland by a decree effective June 27, 1925 restricted the importation of commodities originating in countries restricting the entry of Polish goods. Retaliatory measures multiplied. Commercial treaty negotiations were undertaken in November 1925, with the sparse result of agreeing only that a treaty should embrace provisions concerning the treatment of national and corporate persons, trade regulations, conventional duties, and veterinary regulations. Negotiations were attempted in May 1926 and January and March 1927. In July an understanding was reached concerning residence of persons, and on November 30, 1927 a provisional agreement on lumber was signed. After Poland put higher "valorized" duties into effect on March 15, 1928 and simultaneously removed the import restrictions which had existed since 1925, there ensued a tension between Czechoslovakia and Poland and also temporary friction with Austria. German policy had tended toward conciliatory relations in Europe since the Locarno treaty of 1925 and German admission to the League of Nations in 1926. The years 1928 and 1929 in Europe were marked as a period of growing rapprochement, which found an expression in the annual sessions of the Assembly of the League of Nations. One consequence of this prevailing mood was a lessening of the strain between Germany and Poland and a disposition on the part of both to seek bases for agreement. The troublesome claims question was settled by the agreement of October 31, 1929 (see note under art. 92) which was enjoined upon both parties by the New (Young) Plan, its paragraph 143 providing for the liquidation of past transactions. A joint export rye syndicate was established by an agreement between Germany and Poland signed on February 19, 1930. On March 17, 1930 a commercial treaty on a most-favored-nation basis was signed at Warsaw between Germany and Poland. Its principal provisions were (Commerce Reports, Mar. 31, 1930; Reichsanzeiger, Mar. 24, 1930): "Germany received import contingents on numerous products; Poland received a monthly coal contingent of 320,000 tons and a hog contingent of 200,000 head to be increased later to 350,000 per year. German market prices were guaranteed to Polish animals and animal products under certain conditions. Most-favored-nation and national rights granted by Poland to Germans engaged in business and banking. German steamship lines granted equal privileges as enjoyed by other foreign lines." Note to X, 268 (b)—Continued On April 14, 1930 Germany raised its customs tariff, eliminating many of the benefits which Poland had anticipated. Poland proclaimed new import restrictions of a drastic character and a sharp controversy over Poland's development of the port of Gdynia added to the tension. Nevertheless, Poland felt the need of setting its own house in order, not only because its economic relations were stalled by the situation with respect to Germany but also because it was in the position of holding up the effectiveness of the international convention for the abolition of import and export prohibitions and restrictions. General elections in Poland on November 16, 1930 gave the government a majority favorable to ratifying the commercial treaty but an increase in the tariffs on December 7 added to the difficulties with Germany. The Polish Sejm on March 12, 1931 approved the German-Polish treaty of March 17, 1930 and in the next week approved 27 other instruments of an economic character which had been pending, including the international convention. This action, however, did not cure the German-Polish impasse. The German Reichstag had not approved the commercial treaty, though as a gesture related to the limited entrance into force of the international convention on import and export prohibitions and restrictions, some affirmative notice of it was taken in the Reichstag on March 25, 1930. The East Prussian agrarian interests repeatedly discouraged the German Government from bringing the matter to a head, and no German ratification was given. A German law of April 4, 1933 concerning the provisional application of bilateral economic agreements with foreign countries (Reichsgesetzblatt, 1933, 1, 162) prepared the ground for the National Socialist policy of opening up conventional tariff provisions with a view to introducing the scheme of bilateral clearing arrangements. In May 1933 a détente with Poland occurred, of which the German National Socialist party made much. Negotiations began in mid-October to end the tariff war and on November 15, 1933 the German Chancellor and the new Polish Minister to Berlin issued a communiqué recording "the complete agreement of both Governments to tackle questions affecting both countries by means of direct negotiations and to renounce any resort to force in their mutual relations" (Poland, Ministry of Foreign Affairs, Official Documents Concerning Polish-German and Polish-Soviet Relations, 1933-39, No. 7; Germany, Auswärtiges Amt, 1939, No. 2, Note to X, 268 (b)—Continued Documents on the Origin of the War, No. 32). On January 26, 1934 Germany and Poland subscribed to a declaration (Reichsgesetzblatt, 1934, II, 117) in which they mutually stated that for 10 years after the exchange of ratifications (Feb. 24, 1934) "in no circumstances, however, will they resort to force in order to reach a decision in such disputes" as are not settled by agreement in direct negotiations or procedures in agreements in force between them (Germany, Auswärtiges Amt, 1939, No. 2, Documents on the Origin of the War, No. 37). A Zollfriedensprotokoll (customs truce protocol), signed at Warsaw on March 7, 1934 was intended to do away with the many restrictions and prohibitions which had been put in force by both parties (Reichsgesetzblatt, 1934, II, 99). It entered into force March 15. In 10 years of economic conflict the direction of both German and Polish trade had changed and the relations of their economies had altered. A compensation agreement concluded on October 11, 1934 and in force for one year until October 15, 1935 (ibid., p. 829) was a forerunner of an economic treaty on a limited most-favorednation basis which was signed at Warsaw on November 4, 1935 and entered into effect on November 20 for one year with automatic extension after October 31, 1936 (ibid., 1935, 11, 767). This treaty was supplemented by a clearing agreement of like duration. A fresh treaty signed at Warsaw, February 20, 1937 and in force on March 1 extended the 1935 treaty until February 28, 1939, revised its customs schedules, and included the Free City of Danzig within its scope in virtue of article 104 of the treaty of peace and articles 2 and 6 of the Danzig-Polish convention of November 9, 1920 (ibid., 1937, II, 1, 91). A revised clearing agreement of even date accompanied the new treaty (ibid., p. 99) and continued to apply the German bilateral clearing of payments through agencies established at the capitals of both countries. Germany's annexation of Austria in March 1938 necessitated a new commercial and clearing agreement with Poland which was signed on July 1, 1938 and went into effect on September 1 (ibid., 1938, 11, 562, 650). Following the agreement concluded at Munich on September 29, 1938 Czechoslovakia yielded Teschen to Poland and this change in Polish resources resulted in the conclusion of a supplemental agreement on March 2, 1939 which increased the exchange of goods between Germany and Poland. From March 1939, however, Germany shifted its emphasis in its Polish relations to |