1842 INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [62 STAT. from Mr. Aminoff, Swedish Charge d'Affaires, to Mr. Thorp, Assist- Pot, p. 1843 . ant Secretary of State for Economic Affairs. 2. The Government of the United States recognizes that the com- mitments undertaken by the Government of Sweden in paragraph 61 Stat., Pt. 4, 5(c) of its aide-memoire dated June 24, 1947 with respect to quotas p. 3746. applicable to the importation of commodities listed in Schedule I of the Commercial Agreement between the two Governments signed May 49 Stat.37 25, 1935, have, in general, been fulfilled, total imports being in excess of the total of the amounts stipulated. In view of this de- velopment, caused substantially by the operation of the transitional rules applied by the Government of Sweden, and because of the serious and unanticipated deficit incurred by Sweden in its balance of pay- ments which has resulted in serious loss of gold and convertible foreign exchange, the Government of the United States agrees not to invoke, for the six months period ending June 30, 1948, the provisions of paragraph 5(c) of the Swedish aide-memoire dated June 24, 1947, with respect to the application of Swedish import controls to the im- portation of items listed in Schedule I of the Commercial Agreement of 1935. Licenses to cover 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 Govern- ment of Sweden will issue licenses to cover hardship cases in connec- tion 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 connection with contracts, specific preparations have been made for shipment to Sweden. Bpraleto[slymoets 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 provi- sions of the General Agreement on Tariffs and Trade, concluded 61tat., Pts. 5and6. at Geneva, Switzerland, on October 30, 1947 by the United States and twenty-two other signatories and that, therefore, the two Gov- ernments agree to undertake negotiations with a view to the temporary relaxation of the requirements of Articles II and VII of the Com- Effeti date. mercial Agreement of 1935, to become effective July 1, 1948 along the lines of the balance of payments provisions of the General Agreement37 lines of the balance of payments provisions of the General Agreement
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