1540 INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [56 STAT. of Peru is completely in accord with the principles expressed by the representatives of the Government of the United States of America that international trade should be developed to the fullest possible extent on a multilateral, unconditional most-favored-nation basis, the Government of Peru has considered it necessary, in special cir- cumstances, to grant certain tariff preferences to contiguous countries The Peruvian 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 should 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 be permitted to stand in the way of any broad program 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 inter- national 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 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 afore-mentioned recommendation adopted by the Inter- American Financial and Economic Advisory Committee which Peru may accord to a contiguous country, it being understood that if any such preference should be extended by Peru to any non-contiguous country it would be extended immediately and unconditionally to the United States. Accept, Excellency, the renewed assurances of my highest con- sideration. DAVID DASSO His Excellency CORDELL HULL, Secretary of State of the United States of America. The PeruvianMAinister of Financeand Commerce to the Secretary of State EMBASSY OF PERU WASHINGTON, D.C. MAY 7, 1942 EXCELLENCY: I have the honor to refer to the conversations which have taken place in connection with the negotiation of the trade agreement signed this day with reference to the quantitative restrictions imposed by Your Excellency's Government on imports of long-staple cotton of Peruvian origin.