Page:United States Statutes at Large Volume 61 Part 3.djvu/441

 2726 INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [61 STAT. that international trade should be developed to the fullest extent possible on a multilateral unconditional most-favored-nation basis, the Government of Paraguay may consider it necessary, in special circum- stances, to grant certain tariff preferences to contiguous countries and Uruguay. The Paraguayan representatives have referred in this connection to the recommendation, adopted by the Inter-American Financial and Economic Advisory Committee on September 18, 1941, that any such tariff preferences, in order to be an instrument for sound promotion of trade, should be made effective through trade agreements embodying tariff reductions or exemptions; that the parties to such agreements will reserve the right to reduce or eliminate the customs duties on like imports from other countries; and that any such regional tariff preferences should not stand in the way of any broad programs of economic reconstruction involving the reduction of tariffs and the scaling down or elimination of tariff and other trade preferences with a view to the fullest possible development of international trade on a multilateral unconditional most-favored-nation basis. The conversations to which I have referred have disclosed a mutual understanding as follows: The Government of the United States of America will not invoke the provisions of Article I of the Trade Agreement signed this day for the purpose of obtaining the benefit of tariff preferences meeting the requirements of the aforementioned recommendation, adopted by the Inter-American Financial and Economic Advisory Committee, which Paraguay may accord to a contiguous country or to Uruguay, it being understood that if any such preference should be offered by Paraguay to any noncontiguous country, other than Uruguay, it would be extended immediately and unconditionally to the United States of America. Accept, Mr. Ambassador, the renewed assurances of my highest consideration. MIGUEL ANGEL SOLER His Excellency WILLARD L. BEAULAC, AmbassadorExtraordinaryand Plenipotentiary of the United States of America, City. REPUBLIC OF PARAGUAY . A: Asuncin, September 12, 1946. - MR. AMBASSADOR: I have the honor to acknowledge the receipt of Your Excellency's note of today's date, concerning the discussions during the course of the negotiation of the Trade Agreement between our two Governments signed this day with regard to the duties and surtaxes to be imposed, upon importation into the Republic of Paraguay, on certain products

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