62 STAT.] SWEDEN-RECIPROCAL TRADE-FEB . 11, 1948 on Tariffs and Trade, which both Governments consider appropriate under the circumstances. DEPARTMENT OF STATE, Washington, February11, 1948 WLT 1843 The Swedish Charge d'Affaires ad interim to the Assistant Secretary for Economic Affairs EMBASSY OF SWEDEN WASHINGTON 8, D. C . FEBRURY 11, 1948 MY DEAR MR. SECRETARY: Reference is made to the Minister's letter of June 24, 1947 setting 61 Stat., Pt. 4, forth the policies of the Swedish Government in connection with for- p74 eign exchange transactions between Sweden and the United States. It will be recalled that the final paragraph of the letter reads as fol- lows: "If unforeseen circumstances require temporary modification of the principles set forth above, the Government of Sweden in accordance with the provisions of its memorandum of June 24, 1947, will review the situation with the Government of the United States". Last December the Government of Sweden, having decided that the payments position of Sweden required a further review with the Gov- ernment of the United States, initiated discussions on the subject in Washington. It was pointed out in the discussions that Sweden has been and is taking steps to bring its payments and receipts into equilib- rium for 1948, except as to a carryover of import commitments covered by import licenses issued in 1947 and a seasonal deficit anticipated during the first quarter of 1948. After careful examination of the facts, it now appears advisable to find a solution of Sweden's immediate payments difficulties through (a) reduction of import commitments referred to in the foregoing paragraph insofar as this is feasible and through (b) temporary mod- ifications of the policies described in the letter, already cited, governing payments and transfers to the United States, involving deferments of such payments and transfers. In accordance with (b) above, the Gov- ernment of Sweden therefore proposes that in cases where the author- izing of a payment between Sweden and the United States would cause Swedish gold and hard currency assets to fall below a minimum work- ing balance, a reasonable delay in authorizing such payment will not be considered a violation of paragraph 4 of the Swedish aide-memoire of June 24, 1947 or of the terms of the Minister's letter of the same date. The Swedish Government considers the above proposal as an excep- tional and temporary measure which it intends to withdraw as soon as 61 Stat., Pt. 4, p. 3746.
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