PORTUGAL-TRADE-SEPT. 28, 1948 3. The undertakings in paragraphs 1 and 2, above, are entered into in the light of the absence at the present time of effective or significant tariff barriers to imports into the areas mentioned herein. In the event that such tariff barriers are established, it is recognized that such undertakings shall be without prejudice to the application of the principles set forth in the Havana Charter for an International Trade Organization relating to the reduction of tariffs on a mutually advan- tageous basis. 4. It is recognized that the absence of a uniform rate of exchange for the currency of the areas of western Germany referred to in para- graph 1 above may have the effect of indirectly subsidizing the exports of such areas to an extent which it would be difficult to calculate exactly. So long as such conditions exist, and if consultation with the Government of the United States of America fails to reach an agreed solution to the problem, it shall be understood that it would not be inconsistent with the undertaking assumed in paragraph 1 for the Government of Portugal to levy a countervailing duty on imports of such goods equivalent to the estimated amount of such subsidization, where the Government of Portugal determines that the subsidization is such as to cause or threaten to cause material injury to an estab- lished domestic industry or is such as to prevent or materially retard the establishment of a domestic industry. 5. The undertakings in this note shall remain in force until January 1, 1951, and unless, at least six months before that date, either Gov- ernment shall have given notice in writing to the other of intention to terminate those undertakings on that date, they shall remain in force thereafter until the expiration of six months from the date on which such notice shall have been given. I avail myself of the opportunity to renew to Your Excellency, Mr. Ambassador, the assurances of my highest consideration. Jose CAEIRO DA MATTA His Excellency LINCOLN MIACVEAGH Ambassador of the United States of America at Lisbon, Portugal. etc., etc., etc. 62 STAT.] 2849
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