Page:United States Statutes at Large Volume 62 Part 3.djvu/309

 LUXEMBOURG-TRADE-JULY 3, 1948 2917 Agreement between the United States of America and Luxembourg respecting the application of most-favored-nation treatment to areas under occupation or control. Effected by exchange of notes signed at Luxembourg July 3, 1948; entered into force July 3, 1948. The American Charge d'Affaires ad interim to the Luxembourg Minister of Foreign Affairs No. 30 EXCELLENCY: I have the honor to refer to the conversations which have recently taken place between representatives of our two Governments relating to the territorial application of commercial arrangements between the United States of America and the Grand Duchy of Luxembourg and to confirm the understanding reached as a result of these conversations as follows: 1. For such time as the Government of the United States of America participates in the occupation or control of any areas in Western Germany and in the Free Territory of Trieste, the Government of Luxembourg will apply to the merchandise trade of such area the provisions of the General Agreement on Tariffs and Trade, dated October 30, 1947 as now or hereafter amended, relating to most- favored nation treatment. 2. The undertaking in point one above will apply to the merchandise trade of any area referred to therein only for such time and to such extent as such area accords reciprocal most-favored nation treatment to the merchandise trade of Luxembourg. 3. The undertakings in points one and two above are entered into in the light of the absence at the present time of effective or significant tariff barriers to imports into the areas herein concerned. In the event that such tariff barriers are imposed, it is understood that such undertakings shall be without prejudice to the application of the principles set forth in the Havana Charter for an International Trade Organization ['] relating to the reduction of tariffs on a mutually advantageous basis. 4. It is recognized that the absence of a uniform rate of exchange for the currency of the areas in Western Germany, referred to in point 1 above, may have the effect of indirectly subsidizing the exports of such areas to an extent which it would be difficult to calculate exactly. So long as such a condition exists, and if consultation with the Govern- ment of the United States of America fails to reach an agreed solution to the problem, it is understood that it would not be inconsistent with the undertaking in point 1 for the Government of Luxembourg to levy a countervailing duty on imports of such goods equivalent to the I Department of State publication 3117. July 3, 1948 [T. I. A. S. 1830] 61 Stat., Pts. 5and 6. 62 STAT.]

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