(2) There shall be freedom of transit through any territory of one Contracting Party, via the routes most convenient for international transit, for traffic in transit to or from any territory of the other. No distinction shall be made which is based on the nationality of persons, the flag of vessels, the place of origin, departure, entry, exit or destination, or on any circumstances relating to the ownership of goods, of vessels or of other means of transport.

(3) The Contracting Parties may require baggage and goods and also vessels and other means of transport in transit through any of their territories to be entered at the proper custom house.

(4) Traffic in transit through any territory of one Contracting Party to or from any territory of the other shall not, except in case of failure to comply with applicable customs laws and regulations, be subject to any delays or restrictions other than to the minimum extent that may be necessary to ensure compliance with the applicable customs laws and regulations, and shall be exempt from customs duties and from all transit duties or other charges imposed in respect of transit, except charges for transportation or those commensurate with administrative expenses entailed by transit or with the cost of services rendered.

(5) All charges and regulations imposed by one Contracting Party on traffic in transit to or from any territory of the other shall be reasonable, having regard to the conditions of the traffic.

(6) With respect to all charges, regulations and formalities in connection with transit, one Contracting Party shall accord to traffic in transit to or from any territory of the other treatment not less favourable than that accorded to traffic in transit to or from any other foreign country.

(7) One Contracting Party shall accord to baggage and goods which have been in transit through any territory of the other treatment not less favourable than that which would have been accorded to such baggage and goods had they been transported from their place of origin to their destination without going through that territory. Either Contracting Party shall, however, in relation to any territory, be free to maintain any. requirements of direct consignment existing on the date of signature of the present Treaty, if such direct consignment is a condition of eligibility for preferential rates of duty.

(8) The provisions of this Article shall not oblige either Contracting Party to .afford transit across any territory for persons whose admission into that territory is forbidden and, in relation to goods, shall not prevent either Contracting Party from taking non-discriminatory measures necessary to prevent abuse of transit facilities or to protect public morals or human, animal or plant life or health.

Article 24.

Nothing in the present Treaty shall be construed so as to derogate from the obligations undertaken by either Contracting Party towards the other by virtue of the provisions of the Protocol on Arbitration Clauses signed at Geneva on 24th September, 1923, (7) or of the Convention on the Execution of Foreign Arbitral Awards signed at Geneva on 26th September, 1927, (8) or of any multilateral agreement amendatory or supplementary thereto, so long as such provisions are in force between the Contracting Parties.

Article 25.

(1) Nothing in the present Treaty shall be construed so as to derogate from the obligations undertaken by either Contracting Party towards the other by virtue of the provisions of the Agreement of Madrid of 14th April, 1891, for the Prevention of False Indications of Origin on Goods, (9) as revised at London on 2nd June, 1934, (10) or of any subsequent revision thereof, so long as such provisions are in force between the Contracting Parties.

(2) Without prejudice to the provisions of the foregoing paragraph, either Contracting Party shall provide in any territory suitable civil remedies and, in cases of fraud, suitable penal sanctions in respect of the use of any indication that the goods in connection with which it is used have been produced or manufactured in any territory of the other if such indication be false or misleading.

Article 26.

Nothing in the present Treaty shall be construed so as to derogate from the rights and obligations that either Contracting Party has or may have as a contracting party to the General Agreement on Tariffs and Trade or any multilateral agreement amendatory or supplementary thereto.

Article 27.

Nothing in the present Treaty shall affect the obligations of either Contracting Party under the Articles of Agreement of the International Monetary Fund nor preclude the imposition of particular exchange restrictions whenever the Fund specifically authorises or requests a Contracting Party to impose such particular restrictions.

Article 28.

All the provisions of the present Treaty relative to the grant of treatment not less favourable than that accorded to any other foreign country shall be interpreted as meaning that such treatment shall be accorded immediately and unconditionally, without request or compensation.

Article 29.

(1) Nothing in the present Treaty shall entitle the United Kingdom to claim the benefit of any treatment, preference or privilege which may at any time be accorded by Japan exclusively—

(a) to persons who originated in the territories to which all right. title and claim were renounced by Japan in accordance with the provisions of Article 2 of the Treaty of Peace with Japan signed at the city of San Francisco on 8th September, 1951 (11) (hereinafter referred to as "the Peace Treaty"); or

(b) to any area set forth in Article 3 of the Peace Treaty in so far as the situation provided for in the second sentence of the said Article continues with respect to the administration, legislation and jurisdiction over such area.

(2) Nothing in the present Treaty shall entitle Japan to claim the benetit of any treatment, preference or privilege which may at any time be accorded by any territory of the United Kingdom exclusively to any one or more of the other territories enumerated in the following list:

The United Kingdom of Great Britain and Northern Ireland,

Canada,

The Commonwealth of Australia,

New Zealand,

The Republic of South Africa,

India,

Pakistan,

Ceylon,

Ghana,

The Federation of Malaya,

The Federation of Nigeria,

The Republic of Cyprus,

Sierra Leone,

Tanganyika,

Jamaica,

Trinidad and Tobago,

Uganda,˜

Territories for the international relations of which the Governments of the United Kingdom, Australia, New Zealand and the Republic of South Africa are responsible at the date of signature of the present Treaty,

The Irish Republic, and

In relation to paragraph (1) of Article 16 only, Burma.

(3) The provisions of the present Treaty relative to the grant of treatment not less favourable than that accorded to any other foreign country shall not be construed so as to oblige one Contracting Party to extend to the other the benefit of any treatment, preference or privilege which may be extended by the former Contracting Party by virtue of - ”

(a) the formation of a customs union or a free trade area, or

(b) the adoption of an agreement designed to lead to the formation of such a union or area within a reasonable length of time.

(4) Without prejudice to the provisions of Article 4, nothing in the present Treaty shall be construed so as

(a) to prevent a Contracting Party from taking, either singly or with other countries, any action considered necessary by that Contracting Party for the protection of national security, where such action relates to

(i) special nuclear materials or to materials or equipment from which they are produced; or

(ii) the production of or traffic in arms, ammunition or implements of war, or to such production of or traffic in other goods or materials as is carried on directly or indirectly for the purpose of supplying a military establishment of the Contracting Party or of any other foreign country; or

(b) to prevent a Contracting Party from taking any action

(i) considered necessary by that Contracting Party to protect its essential security interests in time of war or other emergency in international relations or in time of public emergency. threatening the life of the nation; or

(ii) in pursuance of its obligations under the United Nations Charter (12) for the maintenance or restoration of international peace and security; 

provided that the Contracting Parties shall aim to restrict any such action to that involving the least possible deviation, both in extent and duration, from the provisions of the present Treaty.

(5) Nothing in the present Treaty shall be construed so as to grant any rights or impose any obligations in respect of -

(a) any matter concerning which provision is made in any treaty, convention or agreement relating to international civil aviation to which either or both of the Contracting Parties is a party; or

(b) copyright in literary or artistic works; or

(c) rights of performers, producers of phonograms and broadcasting organisations.

Article 30.

Any representations which may be made by either Contracting Party with regard to any matter affecting the operation of the present Treaty shall be the subject of sympathetic consideration and, where appropriate, mutual consultation.

Article 31.

Any dispute that may arise between the Contracting Parties as to the interpretation or application of any of the provisions of the present Treaty shall, upon the application of either Contracting Party, be referred to the International Court of Justice, unless in any particular case the Contracting Parties agree to submit the dispute to some other tribunal or to dispose of it by some other procedure.

Article 32.

(1) The United Kingdom may, at the time of exchange of the instruments of ratification or at any time thereafter, give notice in writing through the diplomatic channel of its intention to extend the present Treaty to any territory for the international relations of which the United Kingdom is responsible.

(a) In a case where the intention of the United Kingdom is to extend the Treaty without modification or reservation, the Treaty shall be extended to the territory specified in such notice as from the thirtieth day after the date of such notice.

(b) In a case where the intention of the United Kingdom is to extend the Treaty with modification or reservation, both Contracting Parties shall consult as to the terms of modification or reservation to be made in connection with the extension of the Treaty to the territory specified in such notice. The Treaty shall be extended to such territory by an agreement setting out the terms of modification or reservation as well as necessary provision for the entry into force of such extension.

(2) After the expiry of a period of six years from the coming into force of the present Treaty either Contracting Party may, provided twelve months prior notice to that effect has been given, terminate the application of the present Treaty to any territory to which it has been extended under the provisions of the foregoing paragraph.

Article 33.

(1) The present Treaty shall be ratified and the instruments of ratification shall be exchanged at Tokyo as soon as possible. It shall come into force as from the thirtieth day after the exchange of the instruments of ratification, (13) and shall thereafter remain in force during a period of six years.

(2) In case neither Contracting Party shall have given notice to the other twelve months before the expiry of the said period of six years of intention to terminate the Treaty, it shall remain in force until the expiry of twelve months from the date on which notice of such intention is given.

(3) A notice given under paragraph (2) of this Article shall apply to any territory to which the present Treaty has been extended under Article 32.

Conclusion

In witness whereof the above named Plenipotentiaries have signed the present Treaty and have affixed thereto their seals.

Done in duplicate at London this Fourteenth day of November, 1962, in the English and Japanese languages, both texts being equally authoritative.

For the United Kingdom of Great Britain and Northern Ireland:

HOME (L.S.)

F. J. ERROLL (L.S.)

For Japan:

KATSUMI OHNO (L.S.)

Attachments

PROTOCOL OF SIGNATURE

At the time of signing the Treaty of Commerce, Establishment and Navigation between the United Kingdom of Great Britain and Northern Ireland and Japan (hereinafter referred to as  "the Treaty"), the undersigned Plenipotentiaries, duly authorised thereto, have further agreed as follows:

(1) The term "territory of Japan" shall not be deemed to include, for the purposes of the Treaty, any area referred to in Article 3 of the Treaty of Peace with Japan signed at the city of San Francisco on 8th September, 1951, in so far as the situation provided for in the second sentence of the said Article continues with respect to the administration, legislation and jurisdiction over such area. The term "nationals" in relation to Japan includes inhabitants of such area who are nationals of Japan.

(2) The term "nationals", in relation to the United Kingdom, shall also apply to all British subjects who have made a claim to retain the status of a British subject under Section 2 of the British Nationality Act, 1948, or who are British subjects without citizenship under Section 13(1) of that Act, except in either case those who belong to any territory to which the Treaty may be extended under the provisions of Article 32 but has not been so extended. In this connection, any such person may be required by the Japanese authorities to produce a passport or other document in lieu thereof for the purpose of confirming that he falls under one-or other of the said categories.

(3) With reference to paragraph (3) of Article 2, the term " vessels" does not include warships.

(4) The provisions of paragraph (1) of Article 3 shall not apply to advantages relating to passports and visas accorded by a Contracting Party to the nationals, of any other foreign country by virtue of a special agreement: However, the foregoing shall not be interpreted so as to nullify the provisions of paragraph (1) of Article 3.

(5) With reference to Article 3, the United Kingdom reserves the right to apply the provisions of the said Article in the United Kingdom as if Great Britain and Northern Ireland were each a separate territory.

(6) With respect to the profession of patent agent, the provisions of paragraph (4) of Article 3 shall not oblige Japan to accord to nationals of any territory of the United Kingdom treatment more favourable than that accorded by that territory to nationals of Japan.

(7) Without prejudice to the provisions of an agreement for the avoidance of double taxation and the prevention of fiscal evasion between any territory of the United Kingdom and Japan, -

(a) the provisions of paragraph (2) of Article 8 shall not oblige the United Kingdom to grant, in respect of any territory of the United Kingdom, to nationals of Japan not resident for tax purposes in that territory the same personal allowances, reliefs and reductions for tax purposes as are granted to nationals of the United Kingdom not resident for tax purposes in that territory, and

(5) the provisions of paragraph (6) of Article 8 shall not oblige Japan to accord to nationals and companies of any territory of the United Kingdom treatment with respect to exemption from taxation in Japan more favourable than that accorded in that territory to nationals and companies of Japan.

(8) The provisions of Article 8 shall not be construed as affecting the provisions of the Japanese law under which distributed profits are, in the case of Japanese corporations, taxed at a lower rate than undistributed profits.

(9) With respect to the matter of enjoyment of rights pertaining to land in Japan, the provisions of Article 10 and of paragraph (4) of Article 12 shall not oblige Japan to accord to the nationals and companies of any territory of the United Kingdom, or to companies of Japan more than one half of the interests in which are owned or which are controlled, directly or indirectly, by such nationals and companies, treatment more favourable than that accorded in that territory to nationals and companies of Japan.

(10) The provisions of paragraph (1) of Article 16 shall not preclude either Contracting Party from imposing a countervailing or anti-dumping duty in the circumstances and subject to the conditions Jaid down in the provisions of the General Agreement on Tariffs and Trade which govern the imposition of such duty in relation to the trade of contracting parties to that Agreement.

(11) The provisions of paragraph (2) of Article 16 shall not preclude Japan from treating fish, whales and other natural produce of the sea taken by vessels of the United Kingdom within the territory of any other foreign country, and products produced or manufactured at sea therefrom, as products originating in the territory of that foreign country.

(12) The provisions of Articles 17 and 23 shall not prevent the United Kingdom from requiring, as a condition of permitting - 

(a) the exportation'of any product from any of its territories, or

(b) the transit through any of its territories of any product exported from the Sterling Area,

satisfactory evidence that payment for such product has been or will be made in accordance with any exchange control regulations in force in that territory.

(13) The permits referred to in paragraph (5) of Article 20 will be issued on a basis no more restrictive than that on which they were issued on the date of signature of the Treaty.

(14) With reference to paragraph (3) of Article 29, a Contracting Party shall, before entering into any customs union, free trade area or agreement designed to lead thereto, inform the other of its plans in so far as they are relevant to the Treaty and give adequate opportunity for consultation about the effect of the terms of entry on the benefits which the other Contracting Party might expect to gain from the Treaty. The former Contracting Party shall also, after its entry, keep the latter informed of developments relevant to the Treaty, in so far as this is compatible with the position of the former Contracting Party as a member of the customs union or free trade area or as a participant in the said agreement. ,

(15) Wherever the Treaty contains a provision according national treatment and also a provision according treatment not less favourable than that accorded in relation to any other foreign country in respect of any matter, the Contracting Party beneficiary in each particular case shall be entitled to claim the benefits of either provision.

(16) The present Protocol shall form an integral part of the Treaty.

In witness whereof the respective Plenipotentiaries have signed the present Protocol and have affixed thereto their seals.

Done in duplicate at London this Fourteenth day of November, 1962, in the English and Japanese languages, both texts being equally authoritative.

For the United Kingdom of Great Britain and Northern Ireland:

HOME (LS)

F. J. ERROLL (LS.)

For Japan: KATSUMI OHNO (L.S.)

FIRST PROTOCOL CONCERNING TRADE RELATIONS BETWEEN THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND JAPAN

At the time of signing the Treaty of Commerce, Establishment and Navigation between the United Kingdom of Great Britain and Northern Ireland and Japan (hereinafter referred to as "the Treaty"), the undersigned  Plenipotentiaries, duly authorised thereto, have agreed as follows:

(1) If the Government of either Contracting Party find that any product of the territory of the other Contracting Party is being imported into the territory of the former Contracting Party in such increased quantities and under such conditions as to cause or threaten serious injury to producers in the territory of that former Contracting Party of like or directly competitive products, that Government, in case they wish to take action under the present Protocol to prevent or remedy such injury, shall give to the Government of the other Contracting Party notice to this effect with a full explanation of the circumstances, and the two Governments shall enter into consultation, not later than seven days after such notice is given, with a view to finding a mutually acceptable solution.

(2) If no mutually acceptable solution is found within thirty days after the consultation has begun, the Government of the importing Contracting Party may take action to prevent or remedy the injury referred to in paragraph (1) above, notwithstanding the provisions of Article 17 of the Treaty, provided that such action: (a) shall not be taken lightly;

(b) shall be limited, so far as administratively practicable, to the specific products in respect of which it is necessary and shall not be more severe than is needed to remedy the injury caused or threatened; and

(c) shall be discontinued immediately either when a mutually acceptable solution is found or when the situation which gave rise to the action is rectified.

(3) In critical circumstances where delay would cause damage which. it would be difficult to repair, action under paragraph (2) above may be taken provisionally within thirty days after the consultation has begun, on the condition that such consultation shall be continued in an endeavour to find a mutually acceptable solution.

(4) If the Government of either Contracting Party take action under the provisions of paragraph (2) or paragraph (3) above, the Government of the other Contracting Party may take counteraction substantially equivalent in scope and duration, notwithstanding the provisions of Article 17 of the Treaty, provided that such counteraction shall not be taken or shall be discontinued, as the case may be, if and to the extent that the Government of the former Contracting Party take measures having the effect of compensating for their initial action. If the Government of the former Contracting Party so request, the two Governments shall immediately enter into consultation in respect of any such counteraction.

(5) The term "territory" in paragraph (1) above means, in relation to the United Kingdom, the United Kingdom of Great Britain and Northern Ireland, including The Channel Islands and the Isle of Man. The present Protocol may, however, be applied when it is necessary to protect the established interests in the United Kingdom market of any territory other than the United Kingdom for whose international relations the United Kingdom is responsible.

(6) The present Protocol shall be ratified and the instruments of ratification shall be exchanged at Tokyo as soon as possible. It shail thereafter come into force on the date of the coming into force of the Treaty.

It shall terminate when the Treaty is terminated in accordance with the provisions of Article 33 thereof or at any time earlier by mutual consent of the two Governments. The two Governments shall consult together at any time at the request of either Government for the purpose of reviewing the necessity of the present Protocol.

In witness whereof the respective Plenipotentiaries have signed the present Protocol and have affixed thereto their seals.

Done in duplicate at London, this Fourteenth day of November, 1962, in the English and Japanese languages, both texts being equally authoritative,

For the United Kingdom of Great Britain and Northern Ireland:

HOME (L.S)

F. J. ERROLL (L.S.)

For Japan:

KATSUMI OHNO. - (L.S.)

SECOND PROTOCOL CONCERNING TRADE RELATIONS BETWEEN THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND JAPAN

At the time of signing the Treaty of Commerce, Establishment and Navigation between the United Kingdom of Great Britain and Northern Ireland and Japan (hereinafter referred to as "the Treaty"), the undersigned

Plenipotentiaries, duly authorised thereto, have agreed as follows:

(1) In case import restrictions have been continuously enforced by either Contracting Party with regard to any specific product and the sudden removal of import restrictions on such product of the other Contracting Party would result in serious injury to domestic producers of the former Contracting Party of like or directly competitive products, the importing Contracting Party may continue to apply import restrictions, notwithstanding the provisions of Article 17 of the Treaty, to any such products mentioned in agreements which are to be concluded in accordance with the present Protocol in such manner and under such conditions as may be specified in the said agreements.

(2) The Governments of the Contracting Parties shall review the operation of the agreements made in accordance with paragraph (1) above, with a view to ensuring orderly development of the trade between the Contracting Parties, at any time upon the request of the Government of either Contracting Party, and not less frequently than once a year unless otherwise mutually agreed.

(3) The present Protocol shall be ratified and the instruments of ratification shall be exchanged at Tokyo as soon as possible. It shall thereafter come into force on the date of the coming into force of the Treaty. It shall terminate when the Treaty is terminated in accordance with the provisions of Article 33 thereof or at any time earlier when there are no longer any import restrictions in force under the present Protocol. 

In witness whereof the respective Plenipotentiaries have signed the present Protocol and have affixed thereto their seals.

Done in duplicate at London, this Fourteenth day of November, 1962, in the English and Japanese languages, both texts being equally  authoritative.

For the United Kingdom of Great Britain and Northern Ireland:

HOME (LS.)

F, J. ERROLL (L.S.)

For Japan:

KATSUMI OHNO Ls.)