DENMARK-TRADE -JUNE 29, 1948 2885 Denmark and the United States of America and have the honour to confirm, subject to ratification, 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 the Free Territory of Trieste, the Government of Denmark will apply to the merchandise trade of such area the provi- sions relating to the most-favored-nation treatment of the merchandise trade of the United States of America set forth in the general Con- vention of Friendship, Commerce and Navigation signed April 26, 1826, as amended by the Convention of April 11, 1857, or for such time as the Governments of Denmark and the United States of America may both be contracting parties to the General Agreement on Tariffs and Trade, dated October 30, 1947 the provisions of that Agreement, as now or hereafter amended, relating to the most-favored- nation treatment of such trade. It is understood that the undertaking in this paragraph relating to the application of the most-favored-nation provisions of the general Convention of Friendship, Commerce and Navigation shall be subject to the exceptions recognized in the General Agreement on Tariffs and Trade permitting departures from the application of most-favored- nation treatment; provided that nothing in this sentence shall be construed to require compliance with the procedures specified in the General Agreement with regard to the application of such exceptions. 2. The undertaking in point 1, 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 Denmark. 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 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 prin- ciples set forth in the Havana Charter for an International Trade Organization relating to the reduction of tariffs on a mutually advan- tageous 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 Denmark to levy a countervailing duty on imports of such goods equivalent to the estimated amount of such subsidization, where the Government of Denmark determines that the subsidization is such as to cause or threaten material injury to an established domestic industry or is such as to prevent or materially retard the establishment of a domestic industry. 8 Stat. 340; 11 Stat. 719. 61 Stat., Pts. 5and6. 62 STAT.]
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