Page:United States Statutes at Large Volume 104 Part 6.djvu/974

 104 STAT. 5364 PROCLAMATION 6175—SEPT. 6, 1990 In addition, the Government of Czechoslovakia will seek to expedite the approval of requests for authorization or registration in order not to impede the expansion of trade between the two countries. Financial Provisions As part of its economic liberalization process, the Government of Czechoslovakia intends to make its currency convertible as soon as possible. Until the Czechoslovak currency becomes freely convertible, the Government of Czechoslovakia, for purposes of this Agreement, will provide access to freely convertible currencies, including through auctions, on a most-favored-nation basis. State Enterprises The Parties recognize that Czechoslovakia has entered a period of dy- namic political and economic change and that the economy of Czechoslovakia is in transition towards an economy based on the principles of market economy and free trade and that it is the policy of the Government of Czechoslovakia to diminish rapidly the role of state enterprises in the Czechoslovak economy. The Government of Czechoslovakia maintains that state enterprises which engage in the purchase and sale involving either imports or exports of products or services are autonomous, profit-oriented and risktaking entities and act independently from the State, which does not exercise control over them. The Government of Czechoslovakia further maintains that state ownership per se does not confer special powers or privileges since the state-owned enterprises operate in a competitive environment and act in a non-discriminatory manner in accordance with commercial principles and do not have the ability by their buying and selling to influence the level or direction of imports and exports. It is understood that, with respect to international trade, state enterprises shall operate in accordance with the relevant provisions of the GATT, including, without limitation. Articles II, XI, XII, XIII, and XIV. I have the honor of confirming that my Government shares this understanding, and that this exchange of letters constitutes an integral part of that Agreement. Sincerely, Andrej Barcak Minister of Foreign Trade Government of the Czechoslovak Federative Republic THE UNITED STATES TRADE REPRESENTATIVE Executive Office of the President Washington, D.C. 20506 Dear Mr. Minister: In connection with the signing on this date of the Agreement on Trade Relations between the Government of the United States of America and the Czechoslovak Federative Republic, I have the honor to advise you that it is my understanding that, to fulfill the obligations under Ar-

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