54STAT.] GREAT BRITAIN-RECIPROCAL TRADE-NOV. 17, 1938 ARTICLE VII The provisions of this Agreement do not extend to favors which are or may hereafter be granted in the territories of either High Con- tracting Party (1) to facilitate frontier traffic with an adjoining country; (2) in virtue of a customs union which has already been, or may hereafter be, concluded with another country. ARTICLE VIII 1. If either High Contracting Party should establish a monopoly for the importation into or the production or sale in the territories of that High Contracting Party of a particular article, or should grant exclusive privileges to one or more agencies for any of these purposes, or if either High Contracting Party should take measures to enable such a monopoly to be established or such exclusive privileges to be granted, the commerce of the territories of the other High Contracting Party shall receive fair and equitable treatment in respect of the foreign purchases of such monopoly or agency. To this end such monopoly or agency will, in making its foreign purchases of any article, be influenced solely by considerations, such as those of price, quality, marketability and terms of sale, which would ordinarily be taken into account by a private commercial enterprise interested solely in purchasing on the most favorable terms. 2. In awarding contracts for public works and in purchasing sup- plies neither High Contracting Party shall discriminate against articles the growth, produce or manufacture of the territories of the other High Contracting Party in favor of those of any other foreign country. ARTICLE IX 1. Articles the growth, produce or manufacture of the United States of America specified in Schedule I annexed to this Agreement shall, on their importation into the United Kingdom of Great Britain and Northern Ireland, from whatever place arriving, be accorded the treatment provided for in the said Schedule. 2. If, however, the Government of the United Kingdom is satisfied after inquiry (a) that any article the growth, produce or manufacture of the United States of America of the description specified in Schedule I is being imported and sold in the United Kingdom at less than the comparable price in the United States of America, due allowance being made for costs of transportation and other charges incidental to making delivery of the goods, or (b) that any such article imported into the United Kingdom is the subject of export bounties or subsidies in the United States of America, and that in consequence of the ful- filment of either of the foregoing conditions a trade or industry in the United Kingdom is or is likely to be injuriously affected- then, not- withstanding anything in paragraph 1 of this Article, the Govern- ment of the United Kingdom shall be at liberty, after consultation with the Government of the United States of America, in cases coming under (a) above, to take such measures as the two Governments may deem necessary and appropriate in order to act as an effective deter- rent to the practice in question; and, in cases coming under (b) above, to impose such additional duties or charges on the article concerned as may be required to compensate for the bounty or subsidy. 3. Any measures taken under the preceding paragraph shall be withdrawn as soon as the circumstances which gave rise to their imposition have ceased to operate. 1901 Provisions inappli. cable to designated favors. Monopolies. Contracts for public works, etc. Designated imports Into United Klingdom. Post, p. 1907. Countervailing du ties, etc.
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