Translation

THE MINISTRY OF FOREIGN AFFAIRS

EXCELLENCY:

ROME, June 28, 1948.

In a letter dated today Your Excellency was so good as to communicate to me the following:

[For the English language text of the note, see pp. 3-4.]

I have the honor to inform you that the Italian Government is in accord with the foregoing.

I welcome the occasion, Excellency, to renew to you the assurances of my highest consideration.

His Excellency

JAMES CLEMENT DUNN

Ambassador of the United States of America

O

Rome

SFORZA

DEPARTMENT OF STATE

PUBLICATION 3367

[Literal print]

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1949

For sale by the Superintendent of Documents, U.S. Government Printing Office Washington 25, D.C.: Price 5 cents

The American Chargé d'Affaires ad interim to the Luxembourg Minister of Foreign Affairs

No. 30

EXCELLENCY:

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 the Grand Duchy of Luxembourg and to confirm 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 in the Free Territory of Trieste, the Government of Luxembourg will apply to the merchandise trade of such area the provisions of the General Agreement on Tariffs and Trade, dated October 30, 1947 ['] as now or hereafter amended, relating to mostfavored nation treatment.

2. The undertaking in point one 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 Luxembourg.

3. The undertakings in points one and two 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 principles set forth in the Havana Charter for an International Trade Organization [2] 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 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

1 Treaties and Other International Acts Series 1700.

* Department of State publication 3117.