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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
(1937)

Yugoslavia,   pp. 584-595 ff. PDF (4.3 MB)


Page 589


geous development of our exports to the United States in relation to
the year 1935 lead to a situation in which we would allow a larger
importation of controlled articles from America than that which ex-
isted in the year 1935. We can, therefore, only propose this system
with the reservation that the ratio of our export to our import (in our
relations with the United States of America) in the year 1937 and
thereafter will be the same as that existing in 1935 or in any case not
worse. In such a case we would have to ask for a revision of the im-
port percentage from the year 1935.
  2) The import of controlled articles from the United States is estab-
Jished on the ratio of our export to the United States. In other
words, the amount of our importation of controlled articles would
depend on the amount of our export. Here the export of copper
would have to be excluded, as we do not participate in the profit
of the export of that metal, as copper is the product of the Bor Mines,
which are the property of a French company, registered in Paris.
The credits established for the exported copper, therefore, do not
belong to us but to the French company.
  The import of controlled articles from the United States would
have to represent 25%o of our export to the United States (excluding
copper), on the ratio of the last yearly quarter. We have to propose
this ratio of 25%o for the reason that our import of uncontrolled
articles (cotton and raw materials) from the United States is much
larger than the import of the controlled articles, which represent only
10% of our imports.
  In the meantime, independently of the amount of our export, we
propose to guarantee, in any case, the import of controlled articles
to the amount of 50%o of the importation of such articles in 1935..
(The total import of controlled articles in 1935 amounted to 30,000,000
dinars).
  One example will give a good illustration of this:
  For every hundred units of value of our exports into the United
States (copper not included) an amount of 25% of the import of
controlled articles is allowed (the import of uncontrolled articles is
completely free).
    In 1936 our export into the United States amounted
      to  .  . . .   . . .   . . .   . . .  . . .   .214 mil. din.
    From that sum was applicable to copper .   . 118 mil. din.
                     Remaining.                        96 mil. din.
  According to the above formula the import of controlled articles
into the United States would amount, in the year 1937, to 25% of the-
96 million dinars, i. e. 24 million dinars or 80%o of the imports in the,
year 1935.
589
YUGOSLAVIA


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