INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [62 STAT. Annex InZerpreti "otes Ante, p. 242. 1. It is understood that the requirements of paragraph 1 (A) of Article II, relating to the adoption of measures for the efficient use of resources, wlli include, with respect to commodities furnished under the Agreement, effective measures for safeguarding such commodities and for preventing their diversion to illegal or irregular markets or channels of trade. 2. It is understood that the obligations under paragraph 1 (C) of Article Ante, p. 2428. II to balance the budget as soon as practicable will not preclude deficits for over a short period but will mean a budgetary policy involving the balancing of the budget in the longrun. 3. It is understood that the business practices and business arrangements Ante, p. 2428. referred to in paragraph 3 of Article II mean: (a) Fixing prices, terms or conditions to be observed in dealing with others in the purchase, sale or lease of any products; (b) Excluding enterprises from, or allocating or dividing, any territorial market or field of business activity or allocating customers, or fixing sales quotas or purchase quotas; (o) Discriminating against particular enterprises; (d) Limiting production or fixing production quotas; (e) Preventing by agreement the development or application of techno- logy or invention whether patented or unpatented; (f) Extending the use of rights under patents, trade marks or copyrights granted by either country to matters which according to its laws and regulations are not within the scope of such grants, or to products or conditions of production, use or sale which are likewise not the subjects of such grants; (g) Such other practices as the two Governments may agree to include. The foregoing reproduces the definition of restrictive business practices contained in Article 46, paragraph three, Havana International Trade Orga- nization Charter. 4. It is understood that the Government of Italy is obligated to take action Ante, p. 228. in particular instances in accordance with paragraph 3 of Article II only after appropriate investigation or examination. Ante, p. 244 5. It is understood that the phrase in Article V, AAfter due regard for the reasonable requirements of Italy for domestic use A will include the mainte- nance of reasonable stocks of the materials concerned and that the phrase · co mmer cial export D might include barter transactions. It also understood that arrangements negotiated under Article V might appropriately include prov- ision for consultation, in accordance with the principles of Article Thirty-two of the Havana Charter for an International Trade Organization, in the event that stockpiles are liquidated. 2446
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