62 STAT.] SWEDEN-RECIPROCAL TRADE-FEB . 11 , 1948 3. In applying quantitative restrictions necessary to safeguard its external financial and balance of payments position to all imports from the United States, including those listed in Schedule I, the Government of Sweden will issue licenses to cover hardship cases in connection with contracts (previously based on valid import licenses, wherever necessary, or assurances thereof) involving goods which have been, or are, in the process of being specifically made or prepared for use in Sweden. Favorable consideration will also be given to cases involving goods for which, in connec- tion with contracts, specific preparations have been made for ship- ment to Sweden. 4. Because of the large deficit in the Swedish balance of payments with the hard currency areas of the world, it is recognized that the Government of Sweden is faced with the necessity of taking measures to correct its present imbalance of trade, and to conserve its foreign exchange. 5. It is, therefore, understood between the Governments of Sweden and the United States that the balance of payments problems of Sweden are similar to those of other countries which gave rise to the provisions of the General Agreement on Tariffs and Trade, concluded at Geneva, Switzerland, on October 30, 1947 by the United States and twenty-two other signatories and that, there- fore, the two governments agree to undertake negotiations with a view to the temporary relaxation of the requirements of Articles II and VII of the Commercial Agreement of 1935, to become ef- fective July 1, 1948 along the lines of the balance of payments provisions of the General Agreement on Tariffs and Trade, which both governments consider appropriate under the circumstances. WASHINGTON, D.C ., February11, 1948. AFF The Department of State to the Swedish Embassy MEMORANDUM The Government of the United States of America wishes to refer to discussions which have recently been held between its representa- tives and those of the Government of Sweden concerning the problems faced by the Government of Sweden as the result of its serious loss of gold and dollar exchange. These discussions have resulted in a mutual understanding between the two Governments as follows: 1. After a careful examination of the facts relating to the payments position of Sweden it is recognized that a temporary suspension of the commitments undertaken by the Government of Sweden in paragraph 4 of its aide-memoire dated June 24, 1947 is necessary to permit the Government of Sweden to meet its present payments difficulties. The principles governing the temporary suspension of paragraph 4 of the cited aide-memoire are set forth in a letter dated February 11, 1948 1841 61 Stat., Pts. 5 and 6. 49 Stat. 3757,3760. Suspension of desig- nated commitments. 61 Stat., Pt. 4, p. 3746.
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