has actually granted, or
may hereafter grant, to the subjects or citizens of any other foreign
state, shall be extended immediately and unconditionally to the
subjects of the other; it being their intention that the commerce,
navigation and industry of each country shall be placed, in all
respects, on the footing of the most favoured nation."

_Colonies._--The application of commercial treaties to colonies depends
upon the wording of each treaty. The earlier colonial policy of European
states was to subordinate colonial interests to those of the mother
country, to reserve colonial trade for the mother country, and to
abstain from engagements contrary to these general rules. France,
Portugal and Spain have adhered in principle to this policy. Germany and
Holland have been more liberal. The self-government enjoyed by the
larger British colonies has led since 1886 to the insertion of an
article in British commercial and other treaties whereby the assent of
each of these colonies, and likewise of India, is reserved before they
apply to each of these possessions. And further, the fact that certain
other British colonies are now within the sphere of commercial
intercourse controlled by the United States, has since 1891 induced the
British government to enter into special agreements on behalf of
colonies for whose products the United States is now the chief market.
As regards the most favoured nation article, it is to be remembered that
the mother country and colonies are not distinct--not foreign or
third--countries with respect to each other. The most favoured nation
article, therefore, does not preclude special arrangements between the
mother country and colonies, nor between colonies.

_Termination._--Commercial treaties are usually concluded for a term of
years, and either lapse at the end of this period, or are terminable
then, or subsequently, if either state gives the required notice. When a
portion of a country establishes its independence, for example the
several American republics, according to present usage foreign trade is
placed on a uniform most favoured nation footing, and fresh treaties
are entered into to regulate the commercial relations of the new
communities. In the case of former Turkish provinces, the capitulations
remain in force in principle until they are replaced by new engagements.
If one state is absorbed into another, for instance Texas into the
United States, or when territory passes b