ICELAND-TRADE -JULY 3,1948 Agreement between the United States of America and Iceland respecting the application of most-favored-nation treatment to areas under occu- pation or control. Effected by exchange of notes signed at Reykjavik July 3, 1948; entered into force July 3, 1948. The American Minister to the Icelandic Minister for ForeignAffairs THE FOREIGN SERVICE OF THE UNITED STATES OF AMERICA AMERICAN LEGATION REYKJAVIK, ICELAND July 3,1948 EXCELTENCY: I have the honor to refer to the conversations which have recently taken place between representatives of our two Governments relating to the territorial application of commercial arrangements between the United States of America and Iceland and to confirm the under- standing 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 Ger- many, the Free Territory of Trieste, Japan or southern Korea, the Government of Iceland will apply to the merchandise trade of such area the provisions relating to the most-favored-nation treatment of the merchandise trade of the United States of America set forth in the Trade Agreement between the United States of America and Ice- land signed August 27, 1943, or, for such time as the Governments of the United States of America and Iceland 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 Trade Agreement signed August 27, 1943, 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 merchan- dise trade of any area referred to therein only for such time and to such extent as such area aceords reciprocal most-favored-nation treatment to the merchandise trade of Iceland. 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 57 Stat. 1075 61 Stat., Ptl.. and . July 3, 148 [T. I. A. . 1827) NO. 78 2903 62 STAT.]
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