oO)

13 (No. 1795}

Article IV ahall remain in effect until all the sums in pounds sterling
required to be deposited in, accordance with its terms have been dis-
posed of as provided in that Article. Paragraph 2 of Article II shall
remain in effect for so long as the guarantee 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 wrrnxss whereof the respective representatives, duly authorised
for the purpose, have signed the present Agreement.
Done in London, in duplicate, this 6th day of July, 1948,

Lewis. W. Dovetas

Exyest Bevin



4

(© To stabiiles its currency, establish or maintain a valid rate of

exchange, balance its Governmental budget, create or maintain
internal financial stability, and generally restore or maintain
confidence in its monetary system; and

(d) To co-operate with other participating countries in facilitating

snd etimalating an inereasing interehsnge of goods and services
among the participating countries and with other countries and
in reducing public and private barriers to trade among them-
selves and with other countries.

2, Taking into account Article 8 of the Convention for European
Economic Co-operation, looking toward the full and effective use of
manpower available in the participating countries, the Government of
the United. Kingdom will accord sympathetic consideration to pro-

made in conjunction with the International Refugee Organisa-
tion directed to the largest practicable utilisation of manpower avail-
able in any of the participating countries in furtherance of the ac-
compliahment of the purposes of this Agreement.

3. The Government of the United Kingdom will take the measures
which it deems appropriate, and will co-operate with other participat-
ing countries, to prevent, on the part of private or public commercial
enterprises, business practices or business arrangements affecting
international trade which restrain competition, limit access to markets
or foster monopolistic control whenever such practices or arrangements
have the effect of interfering with the achievement of the joint
programme of European recovery.

Agnicie I

1. The two Governments will upon the request of either of them
consult respecting projects in the United Kingdom 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 guarantees of currency transfer under Section 111 (6) (3) of the
Economic Co-operation Act of 1948.

2, The Government of the United Kingdom agrees that if the Gov-
ernment of the United States of America makes payment in United
States dollars to any person under such a guaranty, any pounds sterling,
or credita in pounds sterling, assigned or transferred to the Govern-
ment of the United States of America pursuant to that section shall
be recognised as property of the Government of the United States of
America.

(Ne. 1785}

Axriciz IV

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.



> \D

eS
9 [No, 1796}

plating to the matralaviginating in the United Kingdom referred
(QPP “iain Article V, which is necomsary to the formulation and execution

of the arrangements provided for in that Article.
Asriciz VIL ~

1. The Governments of the United States of America and the
United Kingdom recognise that it is in their mutual interest that full
publicity be given to the objectives and progress of the joint programme
for European recovery and of the actions taken in furtherance of
that programme, and that wide dissemination of information on the
progress of the programme is desirable in order to develop the sense
of common effort and mutual aid which are essential to the accom-
plishment of the objectives of the programme.

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 the United Kingdom will encourage the
dissemination of such information both directly and in co-operation
with the Organisation for European Economic Co-operation. It
will make such ifformation available to the media of public intorma-
tion and take all practicable steps to ensure that appropriate facilities
sre provided for such dissemination. It will further provide other
participating countries and the Organisation for European Economic
Co-operation with full information on the progress of the programme
for economic recovery.

4. The Government of the United Kingdom will make public mn
the United Kingdom in each calendar quarter, full statements of
operations under this Agreement,. including information as to the
use of funds, commodities and services received.

Azricyx IX

1. The Government of the United Kingdom agrees to receive a
Special Mission for Economic Co-operation which will discharge the
responsibilities of the Government of the United States of America
in the United Kingdom under this Agreement.

2. The Government of the United Kingdom will, upon appropriate
notification from the Ambassador of the United States of America in
the United Kingdom, consider the Special Mission and its personnel,
and the United States Special Representative in Europe, as part of
the Embassy of the United States of America in the United Kingdom
for the purpose of enjoying the privileges and immunities accorded
to that Embassy and its personnel of comparable rank. The Govern-
ment of the United Kingdom will further accord appropriate courtesies
to the members and staff of the Joint Committee on Foreign Economic
Co-operation of the Congress of the United States of America, and

7


(te 25a 8

Account as may be required to cover costa (including port, storage,
handling and similar charges) of transportation from any point of
entry in the United Kingdom to the consignee’s designated point of
delivery in the United Kingdom of such relief supplies and packages
as are referred to in Article VI.

6. The Government of the United Kingdom 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 proposals put forward by the
Government of the United Kingdom 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 stabilisation in the United Kingdom and for stimulating
productive activity and international trade and the exploration for
and development of new sources of wealth within the United Kingdom,
including in particular:—

(a) Expenditures upon projects or programmes, including those
which are part of a comprehensive programme for the develop-
ment of the productive capacity of the United Kingdom and
the other participating countries, and projects or programmes
the external costs of: which dre 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;

(®) Expenditures upon the exploration for and development of
additional production of materials which may be required in
the United States of America 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
allocated under paragraph 4 of this Article, remaining in the Special
Account on 30th June, 1952, shall be disposed of within the United
Kingdom for such purposes as may hereafter be agreed between the
Governments of the United States of America and the United Kingdom,
it being understood that the agreement of the United States of America
shall be subject to approval by Act or joint resolution of the Congress
of the United States of America.

Arricte V

1. The Government of the United Kingdom will facilitate the trans-
fer to the United States of America, for stockpiling or other purposes,
of materials originating in the United Kingdom which are required by

bd)



fas : .) (No. 1796]

~- 2, The Government of the United Kingdom will establish a special

- secount in the Bank of England in the name of the Government of the
United Kingdom (hereinafter called the Specisl Account) and will
make deposits in pounds sterling to this account as follows:—

(@) The unencumbered balances of the deposita made by the Gov-
ernment of the United Kingdom pursuant to the Exchange of
Notes between the two Governments dated 30th April, 1948.

(6) Amounts commensurate with the indicated dollar cost to the
Government of the United States of America of commodities,
services and technical information (including any cost.of proc-
essing, storing, transporting, repairing or other services incident
thereto) made available to the United Kingdom on a grant
basis by any means authorised under the Economic Co-opera-
tion Act of 1948, less, however, the amount of the deposits made
pursuant to the Exchange 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 the United Kingdom ~

of the indicated dollar cost of any auch commodities, services
and technical information, and the Government of the United
Kingdom will thereupon deposit in the Special Account a com-
meneurate amount of pounds sterling computed at a rate of
exchange which ehall be the par value agreed at such time with
the International Monetary Fund.

The Government of the United Kingdom 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 the United Kingdom of ita require-
ments for administrative expenditures in pounds sterling within the
United Kingdom incident to operations under the Economic Co-
operation Act of 1948, and the Government of the United Kingdom
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 per cent. 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 Govern-
ment of the United States of America for ita expenditures in the United
Kingdom, and sums made available pursuant to paragraph 3 of this

: Article shall first be charged to the amounts allocated under this

mo,

paragraph.
5. The Government of the United Kingdom will further make such
sums of pounds sterling available out of any balances in the Special

Public Law 793, 80th Cong.



Angricir VI

1. The Government of the United Kingdom will co-operate with the Of

Government of the United States of America in facilitating and en-
couraging the promotion and development of travel by citizens of
the United States of America to and within participating countries.

2. The Government of the United Kingdom will, when so desired
by the Government of the United States of America, enter into nego-
tiations for agreements (including the provision of duty-free treatment
under appropriate safeguards) to facilitate the entry into the United
Kingdom of supplies of relief goods donated to or purchased by
United States voluntary non-profit relief agencies and of relief pack-
ages originating in the United States of America and consigned to
individuals residing in the United Kingdom.

Agricum VIL

1. The two Governments will, upon the request of either of them,
consult regarding any matter relating to the application of this Agree-
ment or to operations or arrangements carried out pursuant to this
Agreament.

2. The Government of the United Kingdom 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 the United Kingdom:

(a) Detailed information of projects, programmes and measures
proposed or adopted by the Government of the United Kingdom.
to carry out the provisions of this Agreement and of the General
Obligations of the Convention for European Economic Co-
operation;

(6) 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
information, necessary to supplement that obtained by the
Government of the United States of America from the Or-
ganisation for European Economic Co-operation, which the
Government of the United States of America may need to de-
termine the nature and scope of operations under the Economic
Co-operation Act of 1948, and to evaluate the effectiveness of
assistance furnished or contemplated under this Agreement
and generally the progress of the joint recovery programme.

3. The Government of the United Kingdom will sasist the Govern-

ment of the United States of America to obtain the information, Oo



Lone be 4

AND OTHER INTERNATIONAL ACTS SERIES 1705

ECONOMIC COOPERATION

_ WITH THE

UNITED KINGDOM
Under Public Law 472—80th Congress

Agreement Between the . |_|

UNITED STATES OF AMERICA

and the UNITED KINGDOM OF GREAT . 2
BRITAIN AND NORTHERN
IRELAND

|

fi

“@ Signed at London July 6, 1948
@ Entered into Force July 6, 1948


il [No. 1795]

Agrictz XI

> As used in this agreement>—

«

rs

Ve

(a) “The United Kingdom” means the United Kingdom of Great
Britain and Northern Ireland and any territory to which this
Agreement shall have been extended under the provisions of
Article XII.

(6) The term “participating country” means (i) any country which
signed the Report of the Committee of European Co-operation
at Paris on 22nd September, 1947, and any territories for which
it has international responsibility and to which the Economic
Co-operation 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 ad-
ministration 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; provided that, and
for so long as, such country is a party to the Convention for
European Economic Co-operation and adheres to a joint pro-
gramme for European recovery designed to accomplish the
purposes of this Agreement.

(c) The expression “nationals of the United Kingdom” shall mean
British subjects belonging to, and companies and associations
incorporated under the laws of, the United Kingdom or any
territory to which this Agreement shall have been extended
under Article XII.

Azticts XI

This Agreement shall [on the part of the Government of the United
Kingdom, tend fo the nited Kingdom of geet Britain and North-
ern Ireland,,to the territories specified in th edule attached hereto,
and. to any other territories (being territories for whose international +
relations the Government of the United Kingdom is responsible) from ~
the date on which the Government of the United Kingdom notifies
the Government of the United States of America of the extension of
the Agreement to them. ['] Nothing in the Agreement shall be con-
atrued as imposing any obligation contrary to the terms of a Trustee-
ship Agreement in force in relation to any territory.

Schedule
Aden. Fiji and Western Pacific
Bahamas. High Commission terri-
Cyprus. tories (excluding Tonga
Falkland Islands and New Hebrides).

* Post, p. 16.



Dko. 1798) 10

grant them the facilities and assistance necessary to the effective
performance of their responsibilities.

3. The Government of the United Kingdom, directly and through
ite representatives on the Organisation for European Economic
Co-operation, will extend full co-operation to the Special Mission,
to the United States Special Representative in Europe and his staff,
and to the members and staff of the Joint Committee. Sash co-
operation shall include the pro ‘sion of all information and facilities
necessary to the observation and review of the carrying out af this
Agreement, including the use of agaistance furnished under it.

Agniciz X

GL ‘The Governments of the United States of America and the United
Kingdom agree to submit to the decision of the International Court of
Justice any claim espoused by either Government on behalf of one
of tts nationals against the other Government for compensation for
damage arising as 8 consequence of governmental measures (other
than measures concerning enemy property or jnteresta) taken after
3rd April, 1948, by the other Government and affecting the property
or interest of such national, including contracts with or concessions
granted by duly authorised authorities of such other Government. It
is understood that the undertaking of each Government in respect of
claims eapoused 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 its declaration accepting the
compulsory jurisdiction of the International Court of Justice under
Article 36 of the Statute of the Court, ['] and shall remain in force as
to each Government on a basis of reciprocity until 14th August, 1951,
and thereafter for such period as the declarations of such acceptance
by both Governments are in effect, but not later than the date of
termination of this Agreement. The provisions of this paragraph shall
be in all respects without prejudice to other rights of access, if any, of
either Government to the International Court of Justice or to the
espousal and presentation of claims based upon alleged violations by
either Government of righta and duties arising under treaties, agree-
ments or principles of international law.

79, The Governments of the United States of America and the
United Kingdom 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 hes exhausted the
remedies available to him in the administrative and judicial tribunals
of the country in which the claim arose./ >

—_——
1 Troatigy and Other International Acts Series 1596.

wnt NM

a


7 (No. 1795}

the United States of America as a result of deficiencies or potential
deficiencies in its own resources, upon such reasonable 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 the United Kingdom after due regard
for the reasonable requirements of the United Kingdom for domestic
use and commercial export of such materials. The Government of
the United Kingdom 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 the
United Kingdom, and the removal of any hindrances to the transfer
of such materials to the United States of America. The Government
of the United Kingdom 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. Recognising the principle of equity in respect to the drain upon
the natural resources of the United States of America and of the partic-
ipating countries, the Government of the United Kingdom will, when
so requested by the Government of the United States of America, nego-
tiate where applicable (a) a future schedule of minimum availabilities
to the United States of America for future purchase and delivery of «
fair share of materials originating in the United Kingdom which are
required by the United States of America as a result of deficiencies
or potential deficiencies in its own resources at world market prices
80 a8 to protect the access of United States industry to an equitable
share of such materials either in percentages of production or in ab-
solute quantities from the United Kingdom, (6) arrangements pro-
viding suitable protection for the right of access for any citizen of the
United States of America or any corporation, partnership, or other
association created under the laws of the United States of America,
or of any State or Territory thereof and substantially beneficially
owned by citizens of the United States of America, in the development
of such materials on terms of treatment equivalent to those afforded
to the nationals of the United Kingdom, and, (c) an agreed schedule
of increased production of such materials where practicable in the
United Kingdom and for delivery of an agreed percentage of such
increased production to be transferred to the United States of America
on a long-term basis in consideration of assistance furnished by the
United States of America under this Agreement.

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

80041482



rc)

3 (No. 17953

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 man-
ner consistent with any arrangements made by the Government of the
United States of America with such country.

Agric If

1. In order to achieve the maximum recovery through the employ-
ment of assistance received from the Government of the United States
of America, the Government of the United Kingdom will use its best
endeavours:

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

@

Gi)

ii)

Such measures as may be necessary to ensure. that the
commodities and services obtained with assistance fur-
nished under this Agreement are used for purposes consist-
ent with this Agreement and, as far as practicable, with
the general purposes outlined in the schedules furnished
by the Government of the United Kingdom in support of
the requirements of assistance to be furnished by the
Government of the United States of America;

The observation and review of the use of such resources
through an effective follow-up system approved by the
Organisation for European Economié Co-operation; and
To the extent practicable, measures to locate, identify and
put into appropriate use in furtherance of the joint pro-
gramme for European recovery, assets, and earnings
therefrom, which belong to nationals of the United King-
dom and which are situated within the United States of
America, its territories or possessions; it being understood
that 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 the
United Kingdom to dispose of such assets;

(6) To promote the development of industrial and agricultural pro-
duction on a sound economic basis; to achieve such production
targets aa may be established through the Organisation for
European Economic Co-operation; 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 the United Kingdom to
be undertaken in substantial part with assistance made availa-
ble pursuant to this Agreement, including whenever practicable
projects for increased production of coal, steel, transportation
facilities and food;



14.
Annex

Inrsrrretative Nores es)

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, mo
would include, with respect to commodities furnished under the Agree- {
ment, effective 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 1 (c) of
Article II to balance the budget would not preclude deficits over a
short period but would mean a budgetary policy involving the balane-
ing of the budget in the long run.

3. It is understood that the business practices and business arrange-
ments 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 ter-
ritorial 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. )

(e) Preventing by agreement the development or application of
technology or invention whether patented or unpatented;

(f) Extending the use of rights under patents, trade marks or
copyrights granted by either country to matters which, accord-
ing to its laws and regulations, are not within the scope of such
grants, or to producte 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 the United Kingdom is oo.
obligated to take action in particular instances in accordance with
paragraph'3 of Article II only after appropriate investigation: or
examination.

3. It is understood that the phrase in Article V “after due regard
for the reasonable requirements of the United Kingdom for domestic -
use” would include the maintenance of reasonable stocks of the os
materials concerned and that the phrase “commercial export” might ;
include barter transsctions. It is also understood that arrangements sae oe
negotiated under Article V might appropriately include provision for
consultation, in accordance with the principles of Article 32 of aD . wee
Havana Charter for an International Trade Organisation, in the ~
event that stockpiles are liquidated.



(Me, 1796) 16

The British Secretary of State for Foreign Affaire to the American ey)
Ambassader :

Fornien Orrice,
8. W. 1

6th July, 1948.

Your Excutizncy,

I have the honour to draw your attention to the fact that it is
impossible for the United Kingdom Government, on signing the Eco-
nomic Co-operation Agreement with the Government of the United
States, to give a complete list of those Colonial territories which will
Participate in the Agreement. The reason is that in several cases it is
necessary for Colonial Governments to be given a reasonable oppor-
tunity of considering the implications of the Agreement for them.

2, I have also explained to Your Excellency that a decision in the
case of Southern Rhodesia will rest entirely with the Government of
that country, and that the Government of the United Kingdom is’
unable at this time to say what the decision will be.

3. It is my understanding that most Colonial Governments may be
expected to participate in the Agreement within a very short time.
But the Government of the United Kingdom recognises that if within a
reasonable period after the signature of the Agreement some of the
more important territories concerned (other than Southern Rhodesia)
are not participating in it the Government of the United States would
be entitled to regard this as a change in the relationship of the parties
under the Agreement, affecting the form or continuance of assistance
to the United Kingdom. It is my understanding that before any
action were to be taken by the Government of the United States
there would be consultation between the two Governments.

T have the honour to be, with the highest consideration,

Your Excellency’s obedient Servant,

Ernest Bavin
His Excellency
The Honourable
Lewis W. Dovaraz,
ete., ete., ete.,
1, Grosvenor Square,
W. 1.

°

%

co:

SPO o9-30018

ei lla,



ready expisesed ite adherence to the purposes and policies of the
Economic Co-operation Act of 1948;

Desiring to set forth the understandings which govern.the furnish-
ing of assistance by the Government of the United States of America
under the Economic Co-operation Act of 1948, the receipt of such as-
sistance by the United Kingdom, and the measures which the two
Governments will take individually and together in furthering the
recovery of the United Kingdom as an integral part of the joint pro-
gramme for European recovery;

Have agreed as follows:—

Arricux I

1. The Government of the United States of America undertakes to
aesiat the United Kingdom, by making available to the Government
of the United Kingdom or to any person, agency or organisation dee-
ignated by the latter Government such assistance as may be requested
by it and approved by the Government of the United States of Amer-
ica. 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 Oo-dperation
Act of 1948, acta amendatory and supplementary thereto and appro-
priation acta thereunder, and will make available to the Government
of the United Kingdom only such commodities, services and other
assistance as are authorised to be made available by such acts.

2. The Government of the United Kingdom, acting individually
and through the Organisation for European Economic Co-operation,
consistently with the Convention for European Economic Co-opera-
tion signed at Paris on 16th April, 1948, will exert sustained efforta
in common with other participating countries speedily to achieve
through joint recovery programme economic conditions in Europe
essential to lasting peace and prosperity and to enable the countries of
Europe participating in such s joint recovery programme to become
independent of extraordinary outside economic assistance within the
period of this Agreement. The Government of the United Kingdom
reaffirms its intention to take action to carry out the provisions of the
Gemeral Obligations of the Convention for European Economic Co-
operation, to continue to participate actively in the work of the
Organisstion for European Economic Co-operation, and to continue
to adhere to the purposes and policies of the Economic Co-operation
Act of 1948,

3. With respect to assistance furnished by the Government of the
United States of America to the United Kingdom and procured from
areas outside the United States of America, its territories and posses-
sions, the Government of the United Kingdom will co-operate with

the Government of the United States of America in ensuring that *

procurement will be effected at reasonable prices and on reasonable



ee)

ECONOMIC CO-OPERATION AGREEMENT BETWEEN THE
UNITED STATES OF AMERICA AND THE UNITRD KINGDOM

Preamble

The Governments of the United States of America and of the United
Kingdom of Great Britain and Northern Ireland:

Recognising that the restoration or maintenance in European coun-
tries of principles of individual liberty, free institutions, and genuine
independence resta largely upon the establishment of sound economia
conditions, stable international economic relationships, and the
achievement by the countries of Europe of s healthy economy inde-
pendent of extraordinary outside assistance; .

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

Considering that the achievement of such conditions calls for a
European recovery plan of self-help and mutual co-operation, open to
all nations which co-operate in such a plan, based upon strong pro-
duction effort, the expansion of foreign trade, the creation or mainte-
nance of internal financial stability and the development of economic
co-operation, 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 the United Kingdom has joined with other like-minded nations in a
Convention for European Economic Co-operation signed at Paris on
16th April, 1948, ['] under which the signatories of that Convention
agreed to undertake as their immediate task the elaboration and exe-
cution of a joint recovery programme, and that the Government of the
United Kingdom is a member of the Organisation for European Eco-
nomic Co-operation created pursuant to the provisions of that
Convention; -

Considering also that, in furtherance of these principles, the Goy-
ernment of the United States of America has enacted the Economic
Co-operation Act of 1948, ['] providing for the furnishing of assistance
by the United States of America to nations participating in a joint
programme for European recovery, in order to enable such nations
through their own individual and concerted efforta to become inde-
pendent of extraordinary outside economic assistance;

Taking note that the Government of the United Kingdom has al-

' Department of State publication 3145.
* Public Law 472, 80th Cong., post, pp. 17 ff.

q@



ORo, 1706)" 12

Gambia. . St. Helena and Dependen-
Gibraltar. ., cee.
Gold: Coast. * Seychelles.
Hong Kong. Sierra Leone.
Kenya. Singapore.
Malta. Tanganyika.
Mauritius. Uganda.
Nigeria. Windward Islands.
Nyasaland. Zanzibar.
Azricie XIII

1, This Agreement shall become effective on this day’s date,
Subject to the provisions of paragraphs 2 and 3 of this Article, it shall
remain in force until 30th June, 1953, and, unless at least six months
before 30th June, 1953, either Government shall have given notice
in writing to the other of intention to terminate the Agreement on
‘hat date, it shall remain in force thereafter until the expiration of
six months from the date on which such notice shall have been given.

2. If, during the life of this Agreement, either Government ahould
consider there has been a fundamental change in the basic assump-
tions underlying the Agreement; it shall so notify the other Govern-
ment in writing and the two Governments will thereupon consult with
& view to agreeing upon the amendment, modification or termination
of the 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 notice in writing to the
other of intention to terminate the Agreement. Subject to the pro-
visions of paragraph 3 of this Article, the Agreement shall then
terminate either—

(a) Six months after the date of such notice of intention to termi-

nate, or

(6) After such shorter period as may be agreed to be sufficient to

ealore that the obligations of the Government of the United
Kiagdom are performed in respect of any assistance which may
continue to be furnished by the Government of the United
States of America after the date of such notice;

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

3. Subsidiary agreements and arrangements negotiated pursuant
to this Agreement may remain in force beyond the date of termination
of the Agreement and the period of effectivences of such subsidiary
agreements and arrangements shall be governed by their-own. terms.

»,



wu (No. 1796)

_c a) 6. It ia understood that {t should not be assumed from paragraph
2

oa

a

of Article VI that the existing facilities extended by the United
Kingdom to relief goods and packages are inadeq uate.

7. It is understood that the Government of the United Kingdom
will not be requested, under paragraph 2 (4) of Article VII, to furniah
detailed information about minor projects or confidential commercial
or technical information the disclosure of which would injure legitimate
commercial interests.

8. 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, 90 far as
practicable, the number of officials for whom full diplomatie privileges
would be requested. It is also understood that the detailed applica-
tion of Article IX would, when necessary, be the subject of inter-
Governmental discussion.

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