60 STAT.] UNITED KINGDOM-FINANCIAL AGREEMENT-DEC. 6,1945 7. Sterling area exchange arrangements. The Government of the United Kingdom will complete arrange- ments as early as practicable and in any case not later than one year after the effective date of this Agreement, unless in exceptional cases a later date is agreed upon after consultation, under which immediately after the completion of such arrangements the sterling receipts from current transactions of all sterling area countries (apart from any receipts arising out of military expenditure by the Government of the United Kingdom prior to December 31, 1948, to the extent to which they are treated by agreement with the countries concerned on the same basis as the balances accumulated during the war) will be freely available for current transactions in any currency area without discrimination; with the result that any discrimination arising from the so-called sterling area dollar pool will be entirely removed and that each member of the sterling area will have its current sterling and dollar receipts at its free disposition for current transac- tions anywhere. 8. Other exchange arrangements. (i) The Government of the United Kingdom agrees that after the effective date of this Agreement it will not apply exchange controls in such a manner as to restrict (a) payments or transfers in respect of products of the United States permitted to be imported into the United Kingdom or other current transactions between the two countries or (b) the use of sterling balances to the credit of residents of the United States arising out of current transactions. Nothing in this paragraph (i) shall affect the provisions of Article VII of the Articles of Agreement of the International Monetary Fund when Ante, p .1410 those Articles have come into force. (ii) The Governments of the United States and the United Kingdom agree that not later than one year after the effective date of this Agreement, unless in exceptional cases a later date is agreed upon after consultation, they will impose no restrictions on payments and transfers for current transactions. The obligations of this paragraph (ii) shall not apply: (a) to balances of third countries and their nationals accumulated before this paragraph (ii) becomes effective; or (b) to restrictions imposed in conformity with the Articles of Agreement of the International Monetary Fund, provided that the Governments of the United Kingdom and the United States will not continue to invoke the provisions of Article XIV, Section 2 Ante, p .142 . of those Articles after this paragraph (ii) becomes effective, unless in exceptional cases after consultation they agree otherwise; or (c) to restrictions imposed in connection with measures designed to uncover and dispose of assets of Germany and Japan. (iii) This section and section 9, which are in anticipation of more comprehensive arrangements by multilateral agreement, shall operate until December 31, 1951. 9. Import arrangements. If either the Government of the United States or the Government of the United Kingdom imposes or maintains 1843
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