Law 14.779

ADOPTION OF THE TRADE AND FINANCIAL CONVENTION WITH ISRAEL.

BUENOS AIRES, December 3, 1958

The Senate and the Chamber of Deputies of the Argentine Nation,
in Congress, etc.
_

Article 1.- Approve the trade and financial agreement between the Argentine Republic and the State of Israel, signed in the city of Buenos Aires on 31 March 1958.

Art. 2.- Contact the Executive.

GUZMAN - Jitrik - Zanni - Oliver.

Annex A: Commercial and Financial Agreement between the Argentine Republic and the State of Israel signed in Buenos Aires on March 31, 1958- (**) TRADE AND FINANCIAL CONVENTION BETWEEN THE ARGENTIN REPUBLIC AND THE ISRAEL STATE (a)

I General and Commercial Provisions

Art. 1.- Each of the high contracting parties agrees to take, within the powers normally exercised in the matter, the necessary measures to facilitate both the importation into its territory of the goods originating from the territory of the other, and the export to the other part of its own goods.

Art. 2.- Both parties agree to agree on the maximum facilities, consistent with their respective laws, in the field of customs duties, fees, taxes and tax burdens, as well as on administrative procedures and formalities to be carried out for the import, circulation, transport and distribution in their territories of natural or manufactured products originating from the territory of the other party.

Art. 3.- Exports of Argentine products to the State of Israel and exports of Israeli products to the Argentine Republic shall be subject to general provisions governing the exporting country at the time of export. Imports in the Argentine Republic of Israeli products, and imports in the State of Israel of Argentine products, shall be subject to the general provisions in force in the importing country at the time of shipment to square of the goods.

Art. 4.- The Governments of the Argentine Republic and the State of Israel shall, within the scope of their respective competence, adopt measures to ensure that exchanged products can be quoted at international market prices.

Art. 5.- The High Contracting Parties shall take all necessary measures to ensure, within the spirit of the relevant provisions, respect for the designations of origin and quality that correspond to exclusive products of either country, by repressing with appropriate sanctions the circulation and sale of those produced in its own territory, with false denominations of origin, quality or type.

Art. 6.- Both contracting parties undertake that all goods exchanged between the two countries will be exclusively intended to meet the domestic consumption and industrial needs of the buyer country.

II Financial and payment arrangements

Art. 7.- All payments of any kind pertaining to direct operations between the Argentine Republic and the State of Israel shall be made under the conditions set out in this agreement and in accordance with the regulations governing changes in the respective countries.

Art. 8.- The operations referred to in the previous article will be issued in U.S. Dollars "Isai Argentine Convention". To that end, the Central Bank of the Argentine Republic, on behalf of the Government of the Argentine Republic, and the Bank of Israel, on behalf of the Government of the State of Israel, will open the necessary accounts in United States dollars, which will record the collections and payments derived from the operations that are carried out under the terms of this agreement. Both banking institutions will also agree on the details of the operating and accounting system of the accounts to be created.

Art. 9.- For the conversion of US dollars "Israeli Argentinian Convention" to national currency pesos or to Israeli pounds, or vice versa, exchange rates will be applied no less favorable than those that the provisions in force in the respective country establish for operations that in equal conditions are made in US dollars of free availability.

Art. 10.- The Central Bank of the Argentine Republic and the Bank of Israel shall jointly establish the technical procedures for the implementation of the financial measures and on payment arrangements contained in this convention.

Art. 11.- Without prejudice to the provisions set forth in article 8 payments between the two countries may be made in currencies other than the agreed one, provided the Central Bank of the Argentine Republic and the Bank of Israel agrees.

Art. 12.- If the balance of accounts opened under the provisions of art. 8 will exceed US dollars "Israeli Argentine Convention" four hundred thousand, the debtor institute will be obliged to immediately pay the surplus to the creditor institute, at a minimum of $40,000 or its multiples, by telegraphic transfer, in US dollars of free availability or in transferable currencies acceptable by the creditor country. In the latter case, for the conversion to transferable currencies the rate of exchange of the United States dollar will be applied in the exchange market of the country in whose currency the payment is made, corresponding to the day prior to such cancellation. This type of change will be communicated by the monetary authorities of the respective country.

Art. 13.- At the end of each year ' s period of operation of this convention, the balance of accounts that are open pursuant to the provisions of art. 8 shall be immediately paid by the debtor country to the creditor country, by means of telegraphic transfer in United States dollars of free availability or in transferable currencies acceptable by the creditor country, for which the conversion shall be carried out in accordance with the provisions of the preceding article.

Art. 14.- At the end of the validity of this agreement and despite the cancellation of the balance of the accounts, as set out in article 13, these will continue to be open for a period of nine months with the exclusive purpose of registering the collections and payments related to the operations concluded during the duration of the agreement. The balance of the above-mentioned accounts at the end of that period of nine months shall be paid by the debtor country to the creditor in the manner provided for in the preceding article.

III Provisions relating to capital assets

Art. 15.- In order to promote the purchase of paid capital goods on time that official agencies or private firms of the Argentine Republic intend to make in the State of Israel, the Israeli Government agrees to take, within the limits of the powers normally exercised in the matter, the necessary measures to facilitate the proper financing of such operations.

Art. 16.- In the event that the present convention is not renewed, this will not prevent the implementation of the Argentine acquisitions of Israeli capital assets payable on time, which have been concluded during its operation and which have met the requirements of the relevant provisions in the respective countries.

Art. 17.- The expiration of the period referred to in art. 14 of this agreement and in the event that there are outstanding operations of this nature, the Central Bank of the Argentine Republic and the Bank of Israel will agree to open the necessary accounts for the purpose of recording the corresponding payments.

Art. 18.- The accounts referred to in the previous article shall remain open for the time required to record all payments relating to purchases of capital assets with time-bound financing referred to in article. 16.

Art. 19.- The funds accruing in such accounts may be used by the State of Israel to acquire, in appropriate proportions, in quality and volume, Argentine products included among which it usually acquires in the Argentine Republic, for which the Governments of both countries will facilitate, within the limits of the powers normally exercised in the matter, the conclusion of such operations.

Art. 20.- The balance that each year, starting from the date of its opening, shall be subject to the accounts mentioned in art. 17, will be cancelled under the conditions set forth in art. 13 of this convention.

IV Transport and insurance

Art. 21.- Ships of each of the high contracting parties, during their entry, departure or stay in the Argentine or Israeli ports, shall enjoy in the jurisdiction of the other the most favourable treatment that they consent to their respective laws regarding the port regime and the operations that are verified in them.

Art. 22.- The contracting Governments undertake, during the validity of this agreement, to take appropriate measures to ensure that the transport of goods that are exchanged in the Argentine Republic and the State of Israel, is carried out preferably on Argentine national flag ships and Israeli national flag vessels on equal tonnage, unless there is no wine cellar available from the signatory countries. The application of these provisions may not result in delays in the delivery or care of the products to be transported.

Art. 23.- The Government of the Argentine Republic reserves the right to ensure, in Argentine companies, the Argentine goods that are exported to the State of Israel and the Israeli products that are imported in the Argentine Republic, when the risks of transport are taken into account by the seller or the buyer respectively. The Government of the State of Israel reserves the right to secure Israeli goods exported to the Argentine Republic in Israeli companies, and Argentine products imported into the State of Israel, where the risks of transport are taken into account by the seller or the buyer, respectively.

V Final provisions

Art. 24.- A Joint Commission shall be responsible for monitoring compliance with the provisions contained in this Convention. Such a joint commission which may be convened at the request of any of the high contracting parties shall consider and propose to the respective Governments the necessary measures to ensure that the exchange between the Argentine Republic and the State of Israel is carried out satisfactorily for both countries.

Art. 25.- This agreement replaces the agreement by reverse notes of 25 September 1957, which established a provisional payment regime. The provisions contained in instruments signed between the two countries before the date are also repealed, as opposed to the provisions of this convention.

Art. 26.- Without prejudice to its timely ratification, the present convention shall enter into force on 15 April 1958, and shall remain in force for the term of one year, extended annually by tacit reconduction provided that one of the parties does not report it in writing at least ninety days before the expiry of any year of its validity.

In faith of which two copies of the same tenor are signed and to the same effect, in Spanish, in the City of Buenos Aires, at the thirty-one day of the month of March of the year thousand nine hundred and fifty-eight. By the Government of the Argentine Republic: Alejandro Ceballos, Minister for Foreign Affairs and Worship. -Adalberto Krieger Vasena, Minister of Finance.- Julio César Cueto Rúa, Minister of Commerce and Industry. By the Government of the State of Israel: Arieh León Kubovy, Ambassador Extraordinary and Plenipotentiary.