WE, the representatives of His Majesty's Government in the United Kingdom and of His Majesty's Government in Newfoundland hereby agree with one another, on behalf of our respective Governments, as follows:--

  His Majesty's Government in the United Kingdom undertake that Orders shall be made in accordance with the provisions of Section 4 of the Import Duties Act, 1932, which will ensure the continuance after the 15th November, 1932, of entry free of duty into the United Kingdom of Newfoundland goods which comply with the law and statutory regulations for the time being in force affecting the grant of Imperial preference, and which by virtue of that Act are now free of duty, subject however to the reservations set forth in Schedule A appended hereto.

  His Majesty's Government in the United Kingdom will invite Parliament to pass the legislation necessary to impose on the foreign goods specified in Schedule B appended hereto the duties of customs shown in that Schedule in place of the duties (if any) now leviable.

  His Majesty's Government in the United Kingdom undertake that the general ad valorem duty of 10 per cent. imposed by Section I of the Import Duties Act, 1932, on the foreign goods specified in Schedule C shall not be reduced except with the consent of His Majesty's Government in Newfoundland.

  His Majesty's Government in the United Kingdom will invite the Governments of the non-self-governing Colonies and Protectorates to accord Newfoundland any preference which may for the time being be accorded to any other part of the British Empire, provided that this Clause shall not extend to any preferences accorded by Northern Rhodesia to the Union of South Africa, Southern Rhodesia, and the Territories of the South African High Commission by virtue of the Customs Agreement of 1930.

  His Majesty's Government in Newfoundland will invite Parliament to pass the legislation necessary to secure to United Kingdom goods of the kinds specified in Schedule D the margins of preference over similar foreign goods shown in that Schedule, with effect from the 1st July, 1933.

  His Majesty's Government in Newfoundland will undertake a general revision of the customs tariff to come into force as from the 1st July, 1933, and, if and in so far as budgetary considerations permit, will incorporate in the legislation which Parliament will be invited to pass, giving effect to such revision, provision for new and more favourable conditions in regard to the valuation of the pound sterling for customs purposes.

  His Majesty's Government in Newfoundland will invite Parliament to pass the legislation necessary to accord to the non-self-governing Colonies and Protectorates, and the Mandated Territories of Tanganyika, the Cameroons under British Mandate, and Togoland under British Mandate, preferences on the commodities and at the rates shown in Schedule E, and also any preferences for the time being accorded to the United Kingdom if His Majesty's Government in the United Kingdom so request. Provided that His Majesty's Government in Newfoundland shall not be bound to accord any preferences to any Colony or Protectorate which, being precluded by international obligations from according preferences, either (i) accords to Newfoundland no preferences, or (ii) accords to some other part of the Empire (in the case of Northern Rhodesia, excepting the Union of South Africa, Southern Rhodesia and the Territories of the South African High Commission) preferences not accorded to Newfoundland.

  If under the terms of the Newfoundland-Jamaica Agreement at present in force either party would be entitled to any greater margin of preference than is hereby agreed, the parties to that Treaty shall continue during its currency to enjoy the benefits therein provided.

  This agreement between His Majesty's Government in the United Kingdom and His Majesty's Government in Newfoundland is to be regarded as coming into effect as from the date hereof (subject to the necessary legislative or other action being taken as soon as may be practicable hereafter). It shall continue in force for a period of five years, and if not denounced six months before the end of that period shall continue in force thereafter until a date six months after notice of denunciation has been given by either party.

  In the event of circumstances arising which, in the judgment of His Majesty's Government in the United Kingdom or of His Majesty's Government in Newfoundland, as the case may be, necessitate a variation in the terms of the agreement, the proposal to vary those terms shall form the subject of consultation between the two Governments.