INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [62 STAT. 3. The undertakings in points 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 herein concerned. In the event that such tariff barriers are imposed, it is understood that such undertakings shall be without prejudice to the application of the principles set forth in the Habana Charter for an International Trade Organization ['] relating to the reduction of tariffs on a mutually advantageous basis. 4. It is recognized that the absence of a uniform rate of exchange for the currency of the areas in western Germany, Japan or southern Korea referred to in point 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 a condition exists, and if consultation with the Government of the United States of America fails to reach an agreed solution to the problem, it is understood that it would not be inconsistent with the undertaking in point 1 for the Government of Italy to levy a countervailing duty on imports of such goods equivalent to the estimated amount of such subsidization, where the Government of Italy determines that the subsidization is such as to cause or to threaten material injury to an established domestic industry or is such as to prevent or materially retard the establishment of a domestic industry. Duration. 5. The undertakings in this note shall remain in force until January 1, 1951, and unless at least six months before January 1, 1951, either Government shall have given notice in writing to the other of inten- tion to terminate these 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. Accept, Excellency, the renewed assurances of my highest con- sideration. JAMES CLEMENT DUNN His Excellency Count CARLO SFORZA, Minister of ForeignAffairs, Rome. The Italian Minister of Foreign Affairs to the American Ambassador IL MINISTRO DEOLI AFFARI ESTERI ROMA, 28 Giugno 1948. ECCELLENZA, Con lettera in data odierna V. E. ha voluto comunicarmi quanto segue: "I have the honor to refer to the conversations which have recently taken place between representatives of our two Governments relating to the territorial application of commercial arrangements between the ' Department of State publication 3117. 2914
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