HAKONE

The Government of the Commonwealth of Australia and the Government
of Japan,
Being desirous of improving and developing the commercial
relations between the two countries,
Have agreed as follows:

ARTICLE I
1. With respect to customs duties and charges of any kind imposed
on or in connection with importation or exportation or imposed on
the international transfer of payments for imports or exports, and
with respect to the method of levying such duties and charges, and
with respect to all rules and formalities in connection with
importation and exportation, and with respect to the application
of internal taxes to exported goods and with respect to all
internal taxes or other internal charges of any kind imposed on or
in connection with imported goods and with respect to all laws,
regulations and requirements affecting internal sale, offering for
sale, purchase, distribution or use of imported goods, any
advantage, favour, privilege or immunity which has been or may
hereafter be granted by the Government of either country to any
product originating in or destined for any third country shall be
accorded immediately and unconditionally to the like product
originating in or destined for the other country.

2. The provisions of paragraph 1 shall not entitle the Government
of Japan to claim the benefit of any preference or advantage which
may at any time be accorded by the Government of the Commonwealth
of Australia to any member country of the Commonwealth of Nations
including its dependent territories, or to the Republic of
Ireland.

ARTICLE II
1. No prohibitions or restrictions, whether made effective through
quotas, import or export licences or other measures, shall be
instituted or maintained by the Government of either country on
the importation of any product of the other country or on the
exportation or sale for export of any product destined for the
other country unless such prohibitions or restrictions are applied
to all third countries.

2. In all matters relating to the allocation of foreign exchange
affecting transactions involving the importation and exportation
of goods, the Government of each country shall accord to the other
country treatment no less favourable than it accords to any third
country.

3. Notwithstanding the provisions of paragraphs 1 and 2 either
Government may take such measures as are necessary to safeguard
its external financial position and balance of payments.

ARTICLE III
1. With respect to trade between Australia and Japan,
(a) Each Government undertakes that if it establishes or maintains
a state trading enterprise, wherever located, or grants to any
trading enterprise, formally or in effect, exclusive or special
privileges, such trading enterprise shall, in its purchases or
sales involving imports or exports, act in a manner consistent
with the general principles of non-discriminatory treatment
prescribed in this Agreement for governmental measures affecting
imports or exports by private traders.

(b) The provisions of sub-paragraph (a) of this paragraph shall be
understood to require that such trading enterprises shall, having
due regard to the other provisions of this Agreement, make any
such purchases or sales solely in accordance with commercial
considerations, including price, quality, availability,
marketability, transportation and other conditions of purchase or
sale, and shall afford trading enterprises of the other country
adequate opportunity, in accordance with customary business
practice, to compete for participation in such purchases or sales.

(c) Neither Government shall prevent any enterprise (whether or
not an enterprise described in sub-paragraph (a) of this
paragraph) under its jurisdiction from acting in accordance with
the principles of sub-paragraphs (a) and (b) of this paragraph.

2. The provisions of paragraph 1 of this Article shall not apply
to imports of products for immediate or ultimate consumption in
governmental use and not otherwise for re-sale or use in the
production of goods for sale. With respect to such imports, the
Government of each country shall accord to the trade of the other
country fair and equitable treatment.

ARTICLE IV
1. The provisions of this Agreement shall not be regarded as
conferring any more favourable treatment on the trade of either
country than the Government of the other country is entitled or
obliged to accord to those countries in respect of which it
applies the General Agreement on Tariffs and Trade. The two
Governments shall, so far as practicable and as may be agreed
between them from time to time, base their commercial relations
upon the provisions of the General Agreement on Tariffs and Trade
in respect of matters not covered by this Agreement.

2. The provisions of this Agreement or any action taken under the
Agreement shall not affect the rights of either Government under
Article XXXV of the General Agreement on Tariffs and Trade nor
detract from the freedom of either Government in any negotiations
for the application of the General Agreement on Tariffs and Trade
between the two countries.

ARTICLE V
1. It is the expectation of both Governments that mutual trade
will be increased as a result of this Agreement. It is further
expected that this expansion of trade will be achieved without
serious injury being caused or threatened to domestic producers in
Australia or Japan. If, nevertheless, as a result of unforeseen
developments, the Government of either country finds that any
product is being imported from the other country under such
conditions as to cause or threaten serious injury to producers in
the country of importation of like or directly competitive
products, that Government may, in respect of such product, suspend
obligations under this Agreement to the extent and for such time
as may be necessary to prevent or remedy such injury.

2. Before either Government takes action pursuant to the
provisions of paragraph 1 of this Article, it shall give written
notice to the other Government as far in advance as may be
practicable and shall afford the other Government an opportunity
to consult with it as fully as circumstances permit in respect of
the proposed action.

3. In the event that either Government finds it necessary to take
action under this Article which affects such a number of products
or such a volume of trade that in the view of the other Government
the achievement of the objectives of this Agreement is seriously
impaired, the Government which considers its interests adversely
affected may request consultations with the other Government on
the situation which has developed including the action taken; and
may after two months from the time of the action being taken, if
no mutually satisfactory solution is reached or at an earlier date
if it is agreed that no solution is likely to emerge seek a
renegotiation of the terms of this Agreement. Such renegotiation
shall be commenced as soon as practicable after a written request
has been made. In the event that a satisfactory solution is not
reached within two months after such renegotiation is requested,
the Government which sought renegotiation may terminate the
Agreement on two months' notice, notwithstanding the provisions of
paragraph 2 of Article VII.

ARTICLE VI
1. Each Government shall accord sympathetic consideration to
representations made by the other Government on matters arising
out of the operation of this Agreement and shall afford to the
other Government adequate opportunity for consultation.

2. Consultation shall in any event be held annually on the
operation of this Agreement.

ARTICLE VII
1. This Agreement shall be ratified by each Government and shall
enter into force on the date of the exchange of instruments of
ratification.

2. This Agreement shall remain in force until 6th July, 1960 and
shall continue in force thereafter provided that it shall be
terminated on that date or thereafter if either Government has
previously given to the other Government at least three months'
written notice of its intention to terminate the Agreement.

In witness whereof the representatives of the two Governments,
duly authorised for the purpose, have signed this Agreement.

Done in the English and Japanese languages, both equally
authentic, this 6th day of July, 1957, at Tokyo.

For the Government of the Commonwealth of Australia:

J.M. McEWEN
A.S. WATT
For the Government of Japan:

KISHI