Page:United States Statutes at Large Volume 62 Part 3.djvu/385

 INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [62 STAT. <=^ C.2 a.- elz elF , 4g A/ < - NT ^y<-n^6 sf (f/z- 'NTaTO' EXCELLENCY, ' ', .y , I have the honor to acknowledge receipt of Your Excellency's Note reading as follows: "I have the honor to refer to the conversations which have recently taken place between representatives of our two Governments on the conclusion of a bilateral agreement relative to the American Aid to China and to confirm the understanding reached as a result of these conversations as follows: "1. For such time as either the Government of the United States of America or the Government of the Republic of China participates in the occupation or control of any areas in Western Germany or the Free Territory of Trieste, the other Government will apply to the merchandise trade of such areas the provisions of the General Agree- ment on Tariffs and Trade dated October 30, 1947, as now or here- after amended, relating to most favored nation treatment. "2. The undertaking in point 1 above will apply on the part of the Government of the United States of America or the Govern- ment of China 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 the United States of America or China respectively. "3. The undertakings in points 1 and 2, above, are entered into in the light of the absence at the present time of effective or signifi- cant 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 applica- tion of the principles set forth by the Havana Charter for an In- ternational 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 ex- change 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 area to an extent which it would be difficult to calculate exactly. As long as such a condition exists, and if con- sultation with the Government 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 China to levy a countervailing duty on im- ports of such goods equivalent to the estimated amount of such subsidization, where the Government of China determines that the 61 Stat., Pts. 5 and6. ArTn Ini7n, .? tQI.S 2994

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