49 Stat. 3755. Ante, p. 2647. 61 Stat., Pts.5 and6. INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [62 STAT. will apply to the merchandise trade of such area the provisions relat- ing to the most-favored-nation treatment of the merchandise trade of the United States of America set forth in the Trade Agreement between Sweden and the United States of America signed May 25, 1935 (including, for its duration, the memoranda as to its applica- tion exchanged June 12, 1948), or, for such time as the Governments of Sweden 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 Trade Agreement of 1935 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 Sweden. 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 under- takings shall be without prejudice to the application of the principles set forth in the Havana Charter for an International Trade Organi- zation relating to the reduction of tariffs on a mutually advantageous 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 Gov- ernment of the United States of America fails to reach an agreed so- lution 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 threat- en 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 Janu- ary 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
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