— le — 
5. That manufacturers, merchants and traders who c) Status of legal entities. 
are established in business or industry in any contracting 
country in compliance with the laws there in force, be The Trade Barriers Committee proposes : 
freely permitted to open branches, establish subsidiary 
companies or agencies in any other contracting country 1. That joint stock and limited liability companies, 
provided always that they comply with the laws of that and other commercial, industrial, financial, transporta- 
country as applied to its nationals engaged in similar tion or insurance companies or corporations, domiciled 
occupations, and that their activities do not extend to in any of the contracting countries—provided they 
industries or professions exclusively reserved to its have been validly constituted in accordance with its 
nationals by the laws of the country in question. national laws—be recognized as legal entities in all 
. other contracting countries with the right to exercise 
6. That nationals of foreign States, granting full the same rights as national corporations in such coun- 
and effective reciprocity, be placed on the same footing tries, including the right to sue and be sued in the courts 
as nationals and treated as such in all matters pertaining and to enter all appearances as plaintiff or as defendant ; 
to the exercise of any trade or profession, 
provided however that these stipulations do not apply 2. That such comp antes and corporations, provided 
: oy ; they do not set up establishments there, shall have the 
to trades or professions to be explicitly enumerated in ; ; ; Sul 
; , . } right to do business in all contracting countries, in accord- 
the Convention as being reserved to nationals either by ; eu ; ; 
, ance with the general principles to be laid down in the 
reasons of the prerogatives attached thereto or because ti be li f th d above for th 
of certain legal prescriptions. convention on the lines of those proposed above for the 
civil status of individuals. 
States adhering to the convention would also have the 
right, in view of the peculiar conditions of the labour 3. That the setting up of establishments (branches, 
market, to make exceptions in the case of the admission subsidiary companies or agencies) by the said companies 
of workers, employees, apprentices and domestic servants or corporations in other contracting States shall be 
seeking employment or under contract. subject to the provisions of their national laws. 
b) Civil status of foreigners. d) Fiscal treatment of foreigners. 
The Trade Barriers Committee proposes : The Trade Barriers Committee urges that the fiscal 
treatment of foreigners be in accordance with the prin- 
1. That dependants of all contracting States shall ciples laid down in the resolutions adopted by the 
enjoy the same civil rights as nationals, in particular Council of the League of Nations in 1923. 
the right to acquire real estate and moveable property, 
and to own, cede, devise and bequeath the same ; These resolutions were to the effect : 
2. That dependants of all contracting States shall 1. That in the case of persons, firms or commercia], 
enjoy the same legal rights as nationals, in particular the industrial, financial or' insurance companies permitted 
right to sue or be sued in the courts, and to enter all to establish themselves within the territory of another State 
appearances before administrative and other bodies for in conformity with its laws and regulations, the granting 
the defense of their interests, either as plaintiffs or as of the treatment accorded to nationals in fiscal matters 
defendants, according to laws in force in the said country, should be maintained as an absolute rule. Such persons, 
which laws shall be applied without distinction to nationals firms or commercial, industrial, financial or insurance 
and foreigners alike ; companies should in no case be subjected as regards their 
goods, industry, commerce or any other form of economic 
3. That persons, corporations or commercial or activity, to general or local taxes or to duties of any 
industrial companies established in any of the contracting kind whatsoever, different from or higher than those 
countries, or which without being established do business which are imposed on the nationals of the State con- 
there, shall be free to appoint as managers or employees cerned ; 
of their establishments or for the conduct of their business, 
such persons as they may judge fit and proper of their 2. That if in any case a person, firm or company is 
own free will, without being obliged to take into account admitted to carry on an industry, commerce or any other 
the nationality of such persons, without being subject occupation in a country without being established in 
to any restriction not imposed on employers who are that country, the treatment in fiscal matters of such 
nationals of the said country, and without any obligation person, firm or company should not be such as to place 
to take into partnership or to employ persons of any them in a position of inferiority as compared with nation- 
given nationality whatsoever. als ;