UNITED KINGDOM-TRADE-JULY 6, 1948 2. The undertaking in paragraph 1, above, will apply on the part of the Government of the United States of America or the Government of the United Kingdom of Great Britain and Northern Ireland to the merchandise trade of any area referred to therein only for such time and to such extent as such area accords reciprocal most-favoured- nation treatment to the merchandise trade of the United States of America or the United Kingdom of Great Britain and Northern Ire- land, respectively. 3. The Undertakings in paragraphs 1 and 2, above, are entered into in the light of the absence at the present time of effective or sig- nificant tariff barriers to imports into the areas herein concerned. If 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- sation relating to the reduction of tariffs on a mutually advantageous basis. 4. It is recognised that the absence of a uniform rate of exchange for the currency of the areas in Western Germany referred to in para- graph 1 above may have the effect of indirectly subsidising 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 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 paragraph 1 for the Government of the United Kingdom to levy a countervailing duty on imports of such goods equivalent to the estimated amount of such subsidisation, where the Government of the United Kingdom determines that the subsidisation 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 the 1st January, 1951, and unless at least six months before 1st January, 1951, either Government shall have given notice in writing to the other of intention to terminate these undertakings on that date, they shall remain in force thereafter until the expiration of six months from the date on which such notice shall have been given. I have the honour to be, with the highest consideration, Your Excellency's obedient Servant, ERNEST BEVIN His Excellency The Honourable LEWIS W. DOUGLAs, etc., etc., etc., 1, GrosvenorSquare, W. 1. 2943 62 STAT.]
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