INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [62 STAT. July 3, 1948 IT. I. A. . 1839] 61 Stat., Pts. 5 and 6. Agreement between the United States of America and China respecting the application of most-favored-nation treatment to areas under occupa- tion or control. Effected by exchange of notes signed at Nanking July 3, 1948; entered intoforce July 3, 1948. Note in the English and Chinese Languages From the American Ambassador to the Chinese Minister for ForeignAffairs AMERICAN EMBASSY Nanking, July 3, 1948 EXCELLENCE: ExcEmLrrcy: I have the honor to refer to the conversations which have recently taken place between representatives of our two Governments on the conclusion of a bilateral agreement relative to the American Aid to China and to confirm the understanding reached as a result of these conversations as follows: 1. For such time as either the Government of the United States of America or the Government of the Republic of China participates in the occupation or control of any areas in Western Germany or the Free Territory of Trieste, the other Government will apply to the merchandise trade of such areas the provisions of the General Agree- ment on Tariffs and Trade dated October 30, 1947, as now or here- after amended, relating to most favored nation treatment. 2. The undertaking in point 1 above will apply on the part of the Government of the United States of America or the Government of China to the merchandise trade of any area referred to therein only for such time and to such extent as such area accords reciprocal most favored nation treatment to the merchandise trade of the United States of America or China respectively. 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 by the Havana Charter for an International Trade Organization [ l ] 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 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. Department of State publication 3117.
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