Page:United States Statutes at Large Volume 54 Part 2.djvu/660

 1881 54 STAT.] TURKEY-RECIPROCAL TRADE-APR. 1, 1939 ANKARA, April 1, 1939. MR. AMBASSADOR: I have the honor to refer to the provisions of the Trade Agreement between our two Governments signed this day and to inform Your Excellency that my understanding of the agreement with respect to the application of Article 9, reached during the negotiations, is as follows: 1. The total value of the commercial imports from the United States of America into the territory of the Turkish Republic during the period from January 1, 1935 to December 31, 1937, mentioned in Article 9, is 10.91 percent of the total value of the commercial imports of the Turkish Republic from all sources during the same period. It is agreed that, in determining the amount of free foreign exchange which shall be made available each year, this percentage shall be applied to the total value of the commercial imports into the territory of the Turkish Republic from all sources during the year in question, after deducting from such total value the amount by which the value of commercial imports resulting, during the same year, from the utili- zation of the credits provided for in the Agreement with the United Kingdom of Great Britain and North Ireland, signed on May 27, 1938, and the Agreement with Germany, the principles of which were established in October, 1938, at Ankara, exceeds the payments made during that year in accordance with the provisions of the said credit agreements. This deduction has been decided upon for the reason that the total value of commercial imports into the Turkish Republic will be temporarily increased to an abnormal extent by imports under the governmental credits mentioned above. The amount of available free foreign exchange envisaged in Article 9, shall be applied to payments for commercial imports originating in all the territories under the sovereignty or authority of the United States of America. 2. The amount of free foreign exchange mentioned above which shall be made available each year under Article 9 shall be utilized for the transfer of payments for the said commercial imports in the chron- ological order in which requests for exchange are made. 3. In view of the fact that the Turkish Republic derives its princi- pal supply of free foreign exchange from the export of products, the sale of which has a seasonal character, it is understood that it may not be possible to avoid temporary delays in making available free foreign exchange for the transfer of payments for commercial imports origi- nating in the United States of America. It is agreed that the provi- sions of Article 9 do not preclude seasonal delays in making available free foreign exchange for transfer of the said payments within any calendar year. 4. If the Government of the Turkish Republic should not be in a position, through lack of free foreign exchange, as a result of unfore- seen developments affecting adversely the commerce of the Turkish Republic, to make available the amount of free foreign exchange

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