56 STAT.] ARGENTINA-RECIPROCAL TRADE-OCT. 14, 1941 their Government likewise attaches great importance to these pro- visions and to the principle of unconditional most-favored-nation treatment which underlies them. They have pointed out that this principle is the basis of Argentine commercial policy, which has for its objective the development of Argentine foreign trade on a multi- lateral basis. The representatives of the Argentine Government have also pointed out that the ability of Argentina to give full effect to these principles is dependent on circumstances beyond the control of Argentina. Recently, the Argentine trade and payments position has been aggravated to a very important extent by the trade and financial controls which have been adopted by the belligerents in the present European conflict, notably the United Kingdom, one of the principal markets for Argentine export products. In particular, the inability of Argentina to convert freely into dollars the proceeds of sales to the United Kingdom makes it impossible for the Argentine Government to extend full nondiscriminatory treatment to the trade of the United States of America. The representatives of the Argentine Government have accordingly stated in the negotiations that the acceptance by the Argentine Government of the provisions of the Trade Agreement relating to nondiscriminatory treatment must be qualified by the practical limita- tions which are imposed on the Argentine Government's freedom of action by the circumstances to which I have referred. However, they have assured the representatives of the United States Government that, subject to the practical limitations imposed by the existing payments arrangement in effect between Argentina and the United Kingdom, the Argentine Government will at all times give the fullest possible effect to the provisions under reference. They have further assured the representatives of the United States Government that, as soon as it becomes possible for Argentina to convert its sterling balances into free currencies, the Argentine Government will give full effect to those provisions. The representatives of the Argentine Government expressed the hope that the reconstruction of world economy after the war would create favorable conditions that would enable Argentina to participate in an active interchange with other nations within a liberal system in which the barriers, which in recent times handicapped its normal development, have been eliminated. Accept, Mr. Ambassador, the renewed assurances of my highest consideration. E. Ruiz GUIRAZ6 The Honorable NORMAN ARMOUR Ambassador Extraordinaryand Plenipotentiary of the United States of America 1755
�
