Protocol to the Treaty of Peace between the Republic of China and Japan

Signed at Taipei, 28 April 1952
Entered into force, 5 August 1952, by the exchange of the instruments of ratification at Taipei

P R O T O C O L

    At the moment of signing this day of the Treaty of Peace between the Republic of China and Japan (hereinafter referred to as the present Treaty), the undersigned Plenipotentiaries have agreed upon the following terms which shall constitute an integral part of the present Treaty:

    1. The application of Article 11 of the present Treaty shall be subject to the following understandings:
    (a) Wherever a period is stipulated in the San Francisco Treaty during which Japan assumes an obligation or undertaking, such period shall, in respect of any part of the territories of the Republic of China, commence immediately when the present Treaty becomes applicable to such part of the territories.
    (b) As a sign of magnanimity and goodwill towards the Japanese people, the Republic of China voluntarily waives the benefit of the services to be made available by Japan pursuant to Article 14 (a) 1 of the San Francisco Treaty.
    (c) Articles 11 and 18 of the San Francisco Treaty shall be excluded from the operation of Article 11 of the present Treaty.
    2. The commerce and navigation between the Republic of China and Japan shall be governed by the following arrangements:
    (a) Each Party will mutually accord to nationals, products, and vessels of the other Party
    (i) Most-favoured-nation treatment with respect to customs duties, charges, restrictions and other regulations on or in connexion with the importation and exportation of goods; and
    (ii) Most-favoured-nation treatment with respect to shipping, navigation and imported goods, and with respect to natural and juridical persons and their interests--, such treatment to include all matters pertaining to the levying and collection of taxes, access to the courts, the making and performance of contracts, rights to property (including those relating to intangible property and excluding those with respect to mining), participation in juridical entities, and generally the conduct of all kinds of business and professional activities with the exception of financial (including insurance) activities and those reserved by either Party exclusively to its nationals.
    (b) Whenever the grant of most-favoured-nation treatment by either Party to the other Party, concerning rights to property, participation in juridical entities and conduct of business and professional activities, as specified in sub-paragraph (a) (ii) of this paragraph, amounts in effect to the grant of national treatment, such Party shall not be obliged to grant more favourable treatment than that granted by the other Party under most-favoured-nation treatment.
    (c) External purchases and sales of government trading enterprises shall be based solely on commercial considerations.
    (d) In the application of the present Arrangements, it is understood
    (i) that vessels of the Republic of China shall be deemed to include all those registered under the laws and regulations which have been or may hereafter be enforced by the Republic of China in Taiwan (Formosa) and Penghu (the Pescadores); and products of the Republic of China shall be deemed to include all those originating in Taiwan (Formosa) and Penghu (the Pescadores); and
    (ii) that a discriminatory measure shall not be considered to derogate from the grant of treatments prescribed above, if such measure is based on an exception customarily provided for in the commercial treaties of the Party applying it, or on the need to safeguard that Party's external financial position or balance of payments (except in respect to shipping and navigation), or on the need to maintain its essential security interests, and provided such measure is proportionate to the circumstances and not applied in an arbitrary or unreasonable manner.
    The Arrangements set forth in this paragraph shall remain in force for a period of one year as from the date on which the present Treaty enters into force.
    DONE in duplicate at Taipei, this Twenty Eighth day of the Fourth month of the Forty First year of the Republic of China corresponding to the Twenty Eighth day of the Fourth month of the Twenty Seventh year of Showa of Japan and to the Twenty Eighth day of April in the year One Thousand Nine Hundred and Fifty Two.

YEH KUNG-CHAO,    [L.S.]
Minister of Foreign Affairs and
Plenipotentiary of the Republic of China

ISAO KAWADA,    [L.S.]
Minister of Foreign Affairs and
Plenipotentiary of Japan