ECONOMIC COOPERATION—JUNE 29, 1948 145

that section shall be recognized as property of the Government of the United
States of America.

ArticLe IV

Local Currency

1. The provisions of this Article shall apply only with respect to assistance
which may be furnished by the Government of the United States of America
on a grant basis.

2. The Government of Denmark will establish a special account in
Danmarks Nationalbank in the name of the Government of Denmark (here-
inafter called the Special Account) and will make deposits in kroner to this
account as follows:

(a) The unencumbered balances of the deposits made by the Govern-
ment of Denmark pursuant to the exchange of notes between the two Gov-
ernments dated April 20, 1948.°

(b) Amounts commensurate with the indicated dollar cost to the Gov-
ernment of the United States of America of commodities, services and tech-
nical information (including any costs of processing, storing, transporting,
repairing or other services incident thereto) made available to Denmark on
a grant basis by any means authorized under the Economic Cooperation Act
of 1948, less, however, the amount of the deposits made pursuant to the ex-
change of notes referred to in sub-paragraph (a). The Government of the
United States of America shall from time to time notify the Government of
Denmark of the indicated dollar cost of any such commodities, services and
technical information, and the Government of Denmark will thereupon de-
posit in the Special Account a commensurate amount of kroner computed at
a rate of exchange which shall be the par value agreed at such time
with the International Monetary Fund, The Government of Denmark may at
any time make advance deposits in the Special Account which shall be
credited against subsequent notifications pursuant to this paragraph.

3. The Government of the United States of America will from time
to time notify the Government of Denmark of its requirements for adminis-
trative expenditurés in kroner within Denmark incident to operations under
the Economic Cooperation Act of 1948, and the Government of Denmark
will thereupon make such sums available out of any balances in the Special
Account in the manner requested by the Government of the United States
of America in the notification.

4, Five percent of each deposit made pursuant to this Article in respect
of assistance furnished under authority of the Foreign Aid Appropriation Act,
1949," shall be allocated to the use of the Government of the United States

*Not printed here; for background, see Department of State Bulletin, May 23, 1948,
p. 686,
"62 Stat. 1054.


150 DENMARK

respects without prejudice to other rights of access, if any, of either Govern-
ment to the International Court of Justice or to the espousal and presentation
of claims based upon alleged violations by either Government of rights and
duties arising under treaties, agreements or principles of international law.

2. The Governments of the United States of America and Denmark
further agree that such claims may be referred, in lieu of the Court, to any
arbitral tribunal mutually agreed upon.

3. It is further understood that neither Government will espouse a claim
pursuant to this Article until its national has exhausted the remedies available
to him in the administrative and judicial tribunals of the country in which
the claim arose.

ArticLe XI

Definitions
As used in this Agreement:

(a) “Denmark” means the Kingdom of Denmark together with its
dependent territory, Greenland.
(b) The term “participating country” means

(i) any country which signed the Report of the Committee of Euro-
pean Economic Cooperation at Paris on September 22, 1947, and terri-
tories for which it has international responsibility and to which the
Economic Cooperation Agreement concluded between that country and
the Government of the United States of America has been applied, and

(ii) any other country (including any of the zones of occupation of
Germany, and areas under international administration or control, and the
Free Territory of Trieste or either of its zones) wholly or partly in Europe,
together with dependent areas under its administration;

for so long as such country is a party to the Convention for European Eco-
nomic Cooperation and adheres to a joint program for European recovery
designed to accomplish the purposes of this Agreement.

ArticLe XII

Entry into Force, Amendment, Duration

1. This Agreement shall be subject to ratification in Denmark, It shall
come into force on the day on which notice of such ratification is given to the
Government of the United States of America. Subject to the provisions
of paragraphs 2 and 3 of this Article, it shall remain in force until June 30,
1953, and, unless at least six months before June 30, 1953, either Govern-
ment shall have given notice in writing to the other of intention to terminate
the Agreement on that date, it shall remain in force thereafter until the
expiration of six months from the date on which such notice shall have been
given.


ECONOMIC COOPERATION—JUNE 29, 1948 147.

in Denmark which are required by the United States of America as a result
of deficiencies or potential deficiencies in its own resources, upon such reason-
able terms of sale, exchange, barter or otherwise, and in such quantities, and
for such period of time, as may be agreed to between the Governments of
the United States of America and Denmark, after due regard for the reason-
able requirements of Denmark for domestic use and commercial export of
such materials. The Government of Denmark will take such specific measures
as may be necessary to carry out the provisions of this paragraph, including
the promotion of the increased production of such materials within Denmark,
and the removal of any hindrances to the transfer of such materials to the
United States of America. The Government of Denmark will, when so
requested by the Government of the United States of America, enter into
negotiations for detailed arrangements necessary to carry out the provisions
of this paragraph.

2. The Government of Denmark will, when so requested by the Govern-
ment of the United States of America, negotiate such arrangements as are
appropriate to carry out the provisions of paragraph (9) of sub-Section 115
(b) of the Economic Cooperation Act of 1948, which relates to the develop-
ment and transfer of materials required by the United States of America.

3. The-Government of Denmark, when so requested by the Government
of the United States of America, will cooperate, wherever appropriate, to
further the objectives of paragraphs 1 and 2 of this Article in respect of
materials originating outside of Denmark.

Articte VI

Travel Arrangements
The Government of Denmark will cooperate with the Government of the
United States of America in facilitating and encouraging the promotion and
development of travel by citizens of the United States of America to and
within participating countries.
Articitz VII

Consultation and Transmittal of Information

1. The two Governments will, upon the request of either of them, con-
sult regarding any matter relating to the application of this Agreement or to
operations or arrangements carried out pursuant to this Agreement.

2. The Government of Denmark will communicate to the Government
of the United States of America in a form and at intervals to be indicated
by the latter after consultation with the Government of Denmark:

(a) detailed information of projects, programs and measures proposed
or adopted by the Government of Denmark to carry out the provisions of this
Agreement and the General Obligations of the Convention for European
Economic Cooperation;

259-883—71-—11


146 DENMARK

of America for its expenditures in Denmark, and sums made available pur-
suant to paragraph 3 of this Article shall first be charged to the amounts allo-
cated under this paragraph.

5. The Government of Denmark will further make such sums of kroner
available out of any balances in the Special Account as may be required to
cover costs (including port, storage, handling and similar charges) of trans-
portation from any point of entry in Denmark to the consignee’s designated
point of delivery in Denmark of such relief supplies and packages as are pro-
vided for in section 117(c) of the Economic Cooperation Act of 1948.

6. The Government of Denmark may draw upon any remaining balance
in the Special Account for such purposes as may be agreed from time to time
with the Government of the United States of America. In considering pro-
posals put forward by the Government of Denmark for drawings from the
Special Account the Government of the United States of America will take
into account the need for promoting or maintaining internal monetary and
financial stabilization in Denmark and for stimulating productive activity
and international trade and the exploration for and development of new
sources of wealth within Denmark, including in particular:

(a) expenditures upon projects or programs, including those which are
part of a comprehensive program for the development of the productive ca-
pacity of Denmark and the other participating countries, and projects or
programs the external costs of which are being covered by assistance rendered
by the Government of the United States of America under the Economic Co-
operation Act of 1948 or otherwise, or by loans from the International Bank
for Reconstruction and Development;

(b) expenditures upon the exploration for and development of additional
production of materials which may be required in the United States of Amer-
ica because of deficiencies or potential deficiencies in the resources of the
United States of America; and ,

(c) _ effective retirement of the national debt, especially debt held by the
central bank or other banking institutions.

7. Any unencumbered balance, other than unexpended amounts allo-
cated under paragraph 4 of this Article remaining in the Special Account on
June 30, 1952, shall be disposed of within Denmark for such purposes
as may hereafter be agreed between the Governments of the United States
of America and Denmark, it being understood that the agreement of the
United States of America shall be subject to approval by Act or joint resolu-
tion of the Congress of the United States of America,

ArtTicLe V
Access to Materials

1. The Government of Denmark will facilitate the transfer to the United
States of America, for stockpiling or other purposes, of materials originating


ECONOMIC COOPERATION—JUNE 29, 1948 149

Articte IX
Missions

1. The Government of Denmark agrees to receive a Special Mission for
Economic Cooperation which will discharge the responsibilities of the Gov-
ernment of the United States of America in Denmark under this Agreement.

2. The Government of Denmark will, upon appropriate notification from
the Ambassador of the United States of America in Denmark, consider the
Special Mission and its personnel, and the United States Special Represent-
ative in Europe, as part of the Embassy of the United States of America in
Denmark for the purpose of enjoying the privileges and immunities accorded
to that Embassy. and its personnel of comparable rank. The Government of
Denmark will further accord appropriate courtesies to the members and staff
of the Joint Committee on Foreign Economic Cooperation of the Congress
of the United States of America, and grant them the facilities and assistance
necessary to the effective performance of their responsibilities.

3. The Government of Denmark, directly and through its representatives
on the Organization for European Economic Cooperation, will extend full
cooperation to the Special Mission, to the United States Special Represent-
ative in Europe and his staff, and to the members and staff of the Joint Com-
mittee. Such cooperation shall include the provision of all information and
facilities necessary to the observation and review of the carrying out of this
Agreement, including the use of assistance furnished under it.

ARTICLE X

Settlement of Claims of Nationals

1. The Governments of the United States of America and Denmark agree
to submit to the decision of the International Court of Justice any claim
espoused by either Government on behalf of one of its nationals against the
other Government for compensation for damage arising as a consequence of
governmental measures (other than measures concerning enemy property or
interests) taken after April 3, 1948, by the other Government and affecting
property or interest of such national, including contracts with or concessions
granted by duly authorized authorities of such other Government. It is under-
stood that the undertaking of each Government in respect of claims espoused
by the other Government pursuant to this paragraph is made in the case of
each Government under the authority of and is limited by the terms and
conditions of such effective recognition as it has heretofore given to the com-
pulsory jurisdiction of the International Court of Justice under Article 36 of
the Statute of the Court.® The provisions of this paragraph shall be in all

* TS 993, ante, vol. 3, p. 1186.


ECONOMIC COOPERATION

Agreement signed at Copenhagen June 29, 1948, with annex

Notice of Danish ratification given to the United States July 2, 1948

Entered into force July 2, 1948

Amended by agreements of November 4 and 18, 1948;* February 7,
1950; * February 2 and 9, 1951;* and November 24, 1952 *

62 Stat. 2199; Treaties and Other
International Acts Series 1782

Economic CooperATION AGREEMENT BETWEEN THE UNiTED STATES
or AMERICA AND DENMARK

Preamble

The Government of the United States of America and the Government
of Denmark:

Recognizing that the restoration or maintenance in European countries of
principles of individual liberty, free institutions, and genuine independence
rests largely upon the establishment: of sound economic conditions, stable
international economic relationships, and the achievement by the countries
of Europe of a healthy economy independent of extraordinary outside
assistance;

Recognizing that a strong and prosperous European economy is essential
for the attainment of the purposes of the United Nations;

Considering that the achievement of such conditions calls for a European
recovery plan of self-help and mutual cooperation, open to all nations which
cooperate in such a plan, based upon a strong production effort, the expan-
sion of foreign trade, the creation or maintenance of internal financial sta-
bility and the development of economic cooperation, including all possible
steps to establish and maintain valid rates of exchange and to reduce trade
barriers;

Considering that-in furtherance of these principles the Government of
Denmark has joined with other like-minded nations in a Convention for
European Economic Cooperation signed at Paris on April 16, 1948, under

+ TIAS 1904, post, p. 157.

* | UST 148; TIAS 2022.

*2 UST 647; TIAS 2218,
“3 UST 5181; TIAS 2713.

141


152 DENMARK.

ANNEX

Interpretative Notes

1. It is understood that the requirements of paragraph 1(a) of Article
II, relating to the adoption of measures for the efficient use of resources, would
include, with respect to commodities furnished under the Agreement, ef-
fective measures for safeguarding such commodities and for preventing their
diversion to illegal or irregular markets or channels of trade.

2. It is understood that the obligation under paragraph I (c) of Article II
to balance the budget would not preclude deficits over a short period but
would mean a budgetary policy involving the balancing of the budget in the
Jong run.

3. It is understood that the business practices and business arrangements
referred to in paragraph 3 of Article II mean:

(a) fixing prices, terms or conditions to be observed in dealing with others
in the purchase, sale or lease of any product;

(b) excluding enterprises from, or allocating or dividing, any territorial
market or field of business activity, or allocating customers, or fixing sales
quotas or purchase quotas;

(c) discriminating against particular enterprises;

(d) limiting production or fixing production quotas;

(e) preventing by agreement the development or application of tech-
nology or invention whether patented or unpatented ;

(f) extending the use of rights under patents, trademarks or copyrights
granted by either country to matters which, according to its laws and regu-
lations, are not within the scope of such grants, or to products or conditions
of production, use or sale which are likewise not the subjects of such grants;
and

(g) such other practices as the two Governments may agree to include.

4. It is understood that the Government of Denmark is obligated to take
action in particular instances in accordance with paragraph 3 of Article II
only after appropriate investigation or examination.

5. It is understood that the rate of exchange according to which the
amount of kroner to be deposited in the Special Account provided for in
Article IV should be computed is the par value agreed with the Interna-
tional Monetary Fund, which is at present 4.79901 kroner to one dollar.

6. It is understood that the order of sub-paragraphs (a), (b) and (c)
in paragraph 6 of Article IV implies no order of priority or preference.

7. It is undestood that the phrase in Article V “after due regard for the
reasonable requirements of Denmark for domestic use” would include the
maintenance of reasonable stocks of the materials concerned and that the
phrase “commercial export” might include barter transactions. It is also
understood that arrangements negotiated under Article V might appropri-


ECONOMIC COOPERATION—JUNE 29, 1948 151

2. If, during the life of this Agreement, either Government should con-
sider there has been a fundamental change in the basic assumptions under-
lying this Agreement, it shall so notify the other Government in writing and
the two Governments will thereupon consult with a view to agreeing upon
the amendment, modification or termination of this Agreement. If, after three
months from such notification, the two Governments have not agreed upon
the action to be taken in the circumstances, either Government may give no-
tice in writing to the other of intention to terminate this Agreement. Then,
subject to the provisions of paragraph 3 of this Article, this Agreement shall
terminate either:

(a) six months after the date of such notice of intention to terminate, or

(b) after such shorter period as may be agreed to be sufficient to ensure
that the obligations of the Government of Denmark are performed in re-
spect of any assistance which may continue to be furnished by the Govern-
ment of the United States of America after the date of such notice;

provided, however, that Article V and paragraph 3 of Article VII shall re-
main in effect until two years after the date of such notice of intention to
terminate, but not later than June 30, 1953.

3. Subsidiary agreements and arrangements negotiated pursuant to this
Agreement may remain in force beyond the date of termination of this Agree-
ment and the period of effectiveness of such subsidiary agreements and ar-
rangements shall be governed by their own terms. Article IV shall remain
in effect until all the sums in the currency of Denmark required to be de-
posited in accordance with its own terms have been disposed of as provided
in that Article, Paragraph 2 of Article III shall remain in effect for so long
as the guaranty payments referred to in that Article may be made by the
Government of the United States of America.

4, This Agreement may be amended at any time by agreement between
the two Governments.

5. The Annex to this Agreement forms an integral part thereof.

6. This Agreement shall be registered with the Secretary-General of the
United Nations.

In witness wueEreEorF the respective representatives, duly authorized for
the purpose, have signed the present Agreement.

Done at Copenhagen in duplicate, in the English and Danish languages,
both texts authentic, this twenty-ninth day of June, 1948.

Jostan Marve Jr. [szaL]
Gustav Rasmussen [sear]


148 DENMARK

(b) full statements of operations under this Agreement, including a
statement of the use of funds, commodities and services received thereunder,
such statements to be made in each calendar quarter;

(c) information regarding its economy and any other relevant infor-
mation, necessary to supplement that obtained by the Government of the
United States of America from the Organization for European Economic
Cooperation, which the Government of the United States of America may
need to determine the nature and scope of operations under the Economic
Cooperation Act of 1948, and to evaluate the effectiveness of assistance fur-
nished or contemplated under this Agreement and generally the progress of
the joint recovery program,

3. The Government of Denmark will assist the Government of the United
States of America to obtain information relating to the materials originating
in Denmark referred to in Article V which is necessary to the formulation
and execution of the arrangements provided for in that Article.

Articte VIII
Publicity

1. The Governments of the United States of America and Denmark
recognize that it is in their mutual interest that full publicity be given to the
objectives and progress of the joint program for European recovery and of
the actions taken in furtherance of that program. It is recognized that wide
dissemination of information on the progress of the program is desirable in
order to develop the sense of common effort and mutual aid which are essen-
tial to the accomplishment of the objectives of the program.

2. The Government of the United States of America will encourage the
dissemination of such information and will make it available to the media
of public information.

3. The Government of Denmark will encourage the dissemination of such
information both directly and in cooperation with the Organization for
European Economic Cooperation. It will make such information available
to the media of public information and take all practicable steps to ensure
that appropriate facilities are provided for such dissemination. It will further
provide other participating countries and the Organization for European
Economic Cooperation with full information on the progress of the program
for economic recovery.

4, The Government of Denmark will make public in Denmark in each
calendar quarter, full statements of operations under this Agreement, includ-
ing information as to the use of funds, commodities and services received,


144 DENMARK

b) to promote the development of industrial and agricultural production
on a sound economic basis; to achieve such production targets as may be
established through the Organization for European Economic Cooperation;
and when desired by the Government of the United States of America, to
communicate to that Government detailed proposals for specific projects
contemplated by the Government of Denmark to be undertaken in substantial
part with assistance made available pursuant to this Agreement, including
whenever practicable projects for increased production of food and trans-
portation facilities;

c) _tostabilize its currency, establish or maintain a valid rate of exchange,
balance its governmental budget, create or maintain internal financial stabil-
ity, and generally restore or maintain confidence in its monetary system; and

d) to cooperate with other participating countries in facilitating and
stimulating an increasing interchange of goods and services among the par-
ticipating countries and with other countries and in reducing public and
private barriers to trade among themselves and with other countries.

2. Taking into account Article 8 of the Convention for European Eco-
nomic Cooperation looking toward the full and effective use of manpower
available in the participating countries, the Government of Denmark will
accord sympathetic consideration to proposals made in conjunction with the
International Refugee Organization directed to the largest practicable utiliza-
tion of manpower available in any of the participating countries in further-
ance of the accomplishment of the purposes of this Agreement.

3. The Government of Denmark will take the measures which it deems
appropriate, and will cooperate with other participating countries, to prevent,
on the part of private or public commercial enterprises, business practices
or business arrangements affecting international trade which restrain compe-
tition, limit access to markets or foster monopolistic control whenever such
practices or arrangements have the effect of interfering with the achievement
of the joint program of European recovery.

Articte IIT

Guaranties

1. The Governments of the United States of America and Denmark
will, upon the request of either Government, consult respecting projects in
Denmark proposed by nationals of the United States of America and with
regard to which the Government of the United States of America may
appropriately make guaranties of currency transfer under section 111(b) (3)
of the Economic Cooperation Act of 1948.

2. The Government of Denmark agrees that if the Government of the
United States of America makes payment in United States dollars to any
person under such a guaranty, any kroner, or credits in kroner, assigned or
transferred to the Government of the United States of America pursuant to


ECONOMIC COOPERATION—JUNE 29, 1948 143

countries of Europe participating in such a joint recovery program to become
independent of extraordinary outside economic assistance within the period
of this Agreement. The Government of Denmark reaffirms its intention to
take action to carry out the provisions of the General Obligations of the
Convention for European Economic Cooperation, to continue to participate
actively in the work of the Organization for European Economic Coopera-
tion, and to continue to adhere to the purposes and policies of the Economic
Cooperation Act of 1948.

3. With respect to assistance furnished by the Government of the United
States of America to Denmark and procured from areas outside the United
States of America, its territories and possessions, the Government of Denmark
will cooperate with the Government of the United States of America in
ensuring that procurement will be effected at reasonable prices and on reason-
able terms and so as to arrange that the dollars thereby made available to
the country from which the assistance is procured are used in a manner
consistent with any arrangements made by the Government of the United
States of America with such country.

ArtIcLe II

General Undertakings

1. In order to achieve the maximum recovery through the employment
of assistance received from the Government of the United States of America,
the Government of Denmark will use its best endeavors:

a) to adopt or maintain the measures necessary to ensure efficient and
practical use of all the resources available to it, including

(i) such measures as may be necessary to ensure that the commodities
and services obtained with assistance furnished under this Agreement are
used for purposes consistent with this Agreement and, as far as practicable,
with the general purposes outlined in the schedules furnished by the
Government of Denmark in support of the requirements of assistance to
be furnished by the Government of the United States of America;

(ii) the observation and review of the use of such resources through
an effective followup system approved by the Organization for European
Economic Cooperation; and

(iti) to the extent practicable, measures to locate, identify and put
into appropriate use in furtherance of the joint program for European
recovery, assets, and earnings therefrom, which belong to nationals of
Denmark and which are situated within the United States of America,
its territories or possessions. Nothing in this clause imposes any obligation
on the Government of the United States of America to assist in carrying
out such measures or on the Government of Denmark to dispose of such
assets;


142 DENMARK

which the signatories of that Convention agreed to undertake as their
immediate task the elaboration and execution of a joint recovery program,
and that the Government of Denmark is a member of the Organization for
European Economic Cooperation created pursuant to the provisions of that
Convention;

Considering also that, in furtherance of these principles, the Government
of the United States of America has enacted the Economic Cooperation Act
of 1948,° providing for the furnishing of assistance by the United States
of America to nations participating in a joint program for European
recovery, in order to enable such nations through their own individual and
concerted efforts to become independent of extraordinary outside economic
assistance;

Taking note that the Government of Denmark has already expressed its
adherence to the purposes and policies of the Economic Cooperation Act of
1948;

Desiring to set forth the understandings which govern the furnishing of
assistance by the Government of the United States of America under the
Economic Cooperation Act of 1948, the receipt of such assistance by Den-
mark, and the measures which the two Governments will take individually
and together i in furthering the recovery of Denmark as an integral part of
the joint program for Euopean recovery;

Have agreed as follows:

ArticLe I

Assistance and Cooperation

1. The Government of the United States of America undertakes to
assist Denmark, by making available to the Government of Denmark or to
any person, agency or organization designated by the latter Government such
assistance as may be requested by it and approved by the Government of the
United States of America. The Government of the United States of America
will furnish this assistance under the provisions, and subject to all of the
terms, conditions and termination provisions, of the Economic Cooperation
Act of 1948, acts amendatory and supplementary thereto and appropriation
acts thereunder, and will make available to the Government of Denmark
only such commodities, services and other assistance as are authorized to be
made available by such acts.

2. The Government of Denmark, acting individually and through the
Organization for European Economic Cooperation, consistently with the
Convention for European Economic Cooperation signed at Paris on April 16,
1948, will exert sustained efforts in common with other participating coun-
tries speedily to achieve through a joint recovery Program economic condi-
tions in Europe essential to lasting peace and prosperity and to enable the

* 62 Stat. 137.


ECONOMIC COOPERATION—JUNE 29, 1948 153

ately include provision for consultation, in accordance with the principles
of Article 32 of the Havana Charter for an International Trade Organiza-
tion,’ in the event that stockpiles are liquidated.

8. It is understood that the Government of Denmark will not be
requested, under paragraph 2 (a) of Article VII, to furnish detailed infor-
mation about minor projects or confidential commercial or technical informa-
tion the disclosure of which would injure legitimate commercial interests.

9. It is understood that the Government of the United States of America
in making the notifications referred to in paragraph 2 of Article IX would
bear in mind the desirability of restricting, so far as practicable, the number
of officials for whom full diplomatic privileges would be requested. It is
also understood. that the detailed application of Article IX would, when
necessary, be the subject of inter-governmental discussion.

10. It is understood that any agreements which might be arrived at pur-
suant to paragraph 2 of Article X would be subject to ratification by the
Senate of the United States of America.

° Unperfected. Art. 32(3) of the Havana Charter reads as follows:

“Such Member shall, at the request of any Member which considers itself substantially
interested, consult as to the best means of avoiding substantial injury to the economic inter-
ests of producers and consumers of the primary commodity in question. In cases where the
interests of several Members might be substantially affected, the Organization may partici-
pate in the consultations, and the Member holding the stocks shall give due consideration
to. its recommendations.”