SWEDEN-TRADE -JULY 3, 1948 principles set forth in the Havana Charter for an International Trade Organization [1] relating to the reduction of tariffs on a mutually ad- vantageous 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 ex- ports 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 Government 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 Sweden to levy a countervailing duty on imports of such goods equivalent to the estimated amount of such subsidization, where the Government of Sweden 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. 5. The undertakings in this note shall remain in force until Jan- Duraton. uary 1, 1951, and unless at least six months before January 1, 1951, either Government shall have given notice in writing to the other of intention to terminate these undertakings on that date, they shall re- main in force thereafter until the expiration of six months from the date on which such notice shall have been given. Accept, Excellency, the renewed assurances of my highest con- sideration. H. FREEMAN MATTHEWS His Excellency OSTEN UNDiN, Ministerof ForeignAffairs, Stockholm. The Swedish Minister of ForeignAffairs to the American Ambassador KUNGL. UTRIKES DEPARTEMENTET STOCKHOLM, July 3, 1948. MR. AMBASSADOR, 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 Sweden and the United States of America 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 or the Free Territory of Trieste, the Government of Sweden 'Department of State publication 3117. 68706-52 -PTr. In-- 21 2931 62 STAT.]
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