Page:United States Statutes at Large Volume 62 Part 3.djvu/1097

 3718 INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [62 STAT. the potatoes would not be diverted or reconsigned for table stock purposes. (c) The Canadian Government would survey the supply of Canadian certified seed potatoes by class and consider the possi- bility of giving precedence to the export of Foundation and Foun- dation A classes of certified seed. (d) The names and addresses of the consignees entered on the export permit would be compiled periodically and this informa- tion would be forwarded to the United States Government. In instituting a system which has the effect of restricting exports of Canadian potatoes to the United States, the Canadian Govern- ment recognizes a responsibility to the Canadian commercial grower in certain surplus potato areas and is prepared to guarantee a mini- mum return on gradable potatoes for which the grower cannot find a sales outlet. Although the details of such a programme have not been finalized, it is anticipated that the Canadian Government will announce, at approximately the same time as potatoes are placed under export control, a floor price which will be effective April 1st, 1949 for certain carlot shipping areas in the East. To implement this programme the Canadian Government would inspect the potato holdings of commercial growers in Prince Edward Island, and several counties of New Brunswick, on or after April 1st and would under- take to pay a fixed price for every hundred pounds of Canada No. 1 potatoes found in the bins. It is not anticipated that any actual pay- ment would be made at that time and it would be understood that if any of the potatoes examined were subsequently sold or used for seed purposes the owner would forfeit any claim for assistance on such po- tatoes. In other words, the Canadian Government would make no payment on potatoes which move into export trade, or which are used for seed purposes. It should be noted that the Canadian proposals to institute export permit control on Canadian potatoes and to inaugurate a price sup- port programme are contingent upon assurances from the United States Government that: a) The United States Government will not hereafter impose any quantitative limitations or fees on Canadian potatoes of the 1948 crop exported to the United States under the system of regu- lating the movement of potatoes from Canada to the United States outlined herein. b) The Canadian Government proposal, as outlined herein, to guarantee a floor price to certain commercial growers in the Mari- time Provinces would not be interpreted by United States authori- ties as either a direct or indirect subsidy and that in consequence there would be no grounds for the imposition of countervailing duties under Section 303 of the United States Tariff Act of 1930. If the United States Government in its replying note accepts the Canadian proposals and gives to the Canadian Government the as- surances required, as outlined above, this note and the reply thereto will constitute an agreement on this subject. 46 Stat. 687. 19U.S.C.§1303.

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