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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa

Italy,   pp. 435-506 PDF (27.1 MB)

Page 443

we have adopted the language contained in the first sentence of our
counter proposal quoted above. As long as exchange control is em-
ployed to limit imports, we shall endeavor to have the same language
incorporated in all future treaties and trade agreements.
  We recognize that in certain circumstances Italy and other coun-
tries may desire to protect their currencies by limiting the amount of
exchange which can be used for commercial payments to the United
States. Such limitation can be accomplished by Italy under our
counter proposal, not by placing prohibitions or restrictions on the
transfer of payments but by limiting the amount of imports within the
formula relating to quotas, licensing, etc., set out elsewhere in Article
  Further, the operation of the provisions contained in the first sen-
tence of our exchange proposal would not impose any obligation upon
Italy in respect of that exchange which may be employed for purposes
other than for payment for imports from the United States and for
payments necessary and incidental to such importations. The provi-
sions in the second sentence relating to non-commercial transactions,
which have already been accepted by Italy, would govern other ex-
change payments. The second sentence has keen amended slightly by
substituting the word "every" for the word "any" where
"any" first
  In presenting our counter exchange proposal to Italian officials, the
Embassy may utilize such of the foregoing information as it may deem
appropriate and expedient.
711.652/93 Telegram
   The Amrbassador in Italy (Phillip8) to the Secretary of State
                                      ROME, May 31, 1937-9 p. m.
                                    [Received May 31-6: 45 p. m.]
  256. Department's instruction No. 56 of March 17, 1937, and tele-
gram No. 73, May 1, 11 a. m. The Director of Commercial Affairs of
the Foreign Office has handed me a memorandum concerning article 8,
of which the following is a translation:
  "1. There is no objection to the acceptance of the American text of
article 8 except that at the end of the first sub-paragraph of the para-
graph relating to exchange regulations the following addition is pro-
posed 'which are not applied to third countries'.
  2. The text of the other articles of the agreement must be examined
as a whole before a final reply can be given.
  3. As regards article 21 it is desired to maintain the period of 6
months for the suspension of the provisions of article 8.

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