Page:United States Statutes at Large Volume 56 Part 2.djvu/599

 INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [56 STAT. ENGLISH TRANSLATIONS OF URUGUAYAN NOTES The UruguayanMinister of ForeignAffairs to the American Ambassador MINISTRY OF FOREIGN RELATIONS MONTEVIDEO, July 21, 1942 MR. AMBASSADOR: I have the honor to refer to the discussions during the course of the negotiation of the trade agreement between Uruguay and the United States of America, signed this day, in regard to its provisions relating to non-discriminatory treatment by each country of the trade of the other. These provisions establish a policy which the Government of Uruguay recognizes, as its representatives have always stated, as necessary and desirable. Non-discriminatory treatment between the various countries regarding reciprocal importation is essential to the development of multilateral trade among nations. The Government of Uruguay, as has been stated, adheres to this conception and appre- ciates the vast significance of the decision of the Government of the United States of America to strive for its full and general reestablishment. In the course of negotiating the trade agreement, the representa- tives of our two Governments have emphasized the importance of multilateral trade and therefore of the provisions setting forth the principle of unconditional most-favored-nation treatment. However, the representatives of the Uruguayan Government have stated that strict compliance with these provisions is conditioned by circumstan- tial factors beyond the control of Uruguay. The regulations imposed with respect to international trade and payments by European belligerent countries, including the United Kingdom of Great Britain and Northern Ireland, which is one of the most important markets for Uruguayan exports, present great diffi- culties in this regard. In particular, the measures whereby the sterling balances resulting from Uruguay's commercial and financial transactions with Great Britain cannot be converted into free cur- rencies prevent, for so long as they remain in force, the Uruguayan Government from extending full non-discriminatory treatment to the commerce of the United States of America. For this reason, the representatives of the Uruguayan Government have stated in the course of the negotiations that the full application by Uruguay of the provisions of the agreement with regard to non- discriminatory treatment is subject to the modifications which may be made in the Payments Agreement between Uruguay and the United Kingdom and which may eliminate the difficulties imposed by that agreement, especially with respect to the freezing of Uruguayan sterling balances. 1682

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