Article 4 Both Governments have furthermore agreed that the establishment of the legal status of those nationals of the one Party, which live within the territory of the other Party, and the general regulation of mutual, commercial and economic relations, shall be effected on the principle of the most favoured nation. This principle shall, however, not apply to the privileges and facilities which the Russian Socialist Federal Soviet Republic may grant to a Soviet Republic or to any State which in the past formed part of the former Russian Empire.