2721 61 STAT.] PARAGUAY-RECIPROCAL TRADE-SEPT. 12 , 1946 paSs no limftrofe, otro que el Uruguay, esta se extenderfa inmediata e incondicionalmente a los Estados Unidos de America. Reciba, Sefior Embajador, las renovadas seguridades de mi mas alta consideraci6n.- MIGUEL ANGEL SOLER A Su Excelencia el Sefior Embajador Extraordinario V Plenipotendariode los Estados Unidos de Ambrica, Hon. WILLARD L. BEAULAG. Presente. - EMBASSY OF THE UNITED STATES OF AMERICA Asuncin, September 12, 1946. EXCELLENCY: I have the honor to acknowledge the receipt of Your Excellency's note of today's date with reference to the agreement reached between representatives of the Government of the United States of America and the Government of the Republic of Paraguay, in connection with the Trade Agreement signed this day, regarding trade relations be- tween Paraguay and contiguous countries and Uruguay. In the course of these conversations the Paraguayan representa- tives have pointed out that although the Government of the Republic of Paraguay is completely in accord with the principle expressed by the representatives of the Government of the United States of America that international trade should be developed to the fullest possible extent on a multilateral unconditional most-favored-nation basis, the Government of Paraguay may consider it necessary, in special circumstances, to grant certain tariff preferences to contiguous coun- tries and Uruguay. The Paraguayan representatives have referred in this connection to the recommendation, adopted by the Inter-American Financial and Economic Advisory Committee on September 18, 1941, that any such tariff preferences, in order to be an instrument for sound promo- tion of trade, should be made effective through trade agreements embodying tariff reductions or exemptions; that the parties to such agreements should reserve the right to reduce or eliminate the customs duties on like imports from other countries; and that any such regional tariff preferences should not be permitted to stand in the way of any broad program of economic reconstruction involving the reduction of tariffs and the scaling down or elimination of tariff and other trade preferences with a view to the fullest possible development of inter- national trade on a multilateral unconditional most-favored-nation basis. I have the honor to confirm Your Excellency's statement of the understanding reached with reference to this matter as follows: The Government of the United States of America will not invoke the provisions of Article I of the Trade Agreement signed this day for the purpose of obtaining the benefit of tariff preferences meet- ing the requirements of the aforementioned recommendation
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