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Department of State bulletin (Volume v. 22, Apr- Jun 1950) online

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American plane.

693



Provisions in Trade Agreement With Costa Rica Waived



[Released to the press April 5]



Notes were exchanged yesterday between tlie De-
partment of State and the Embassy of Costa Rica
pursuant to which the Government of the United
States has agreed to waive, for a period of 1 year,
beginning April 1, 1950, the provisions of article I
of the existing trade agi-eement between the two
countries, in order that Costa Rica may apply to
import from the United States of articles included
in schedule I of the trade agreement certain multi-
ple exchange surcharges which are provided for in
legislation promulgated at San Jose, Costa Rica,
on April 1.

Article I of the trade agreement reads:

Articles the growth, produce or manufacture of the
United States of America, enumerated and described in
Schedule I annexed to this Agreement and made a part
thereof, shall, on their importation into the Republic of
Costa Rica, be exempt from ordinary customs duties in
excess of those set forth in the said Schedule. Tlie said
articles shall also be exempt from all other duties, taxes,
fees, charges or exactions, imposed on or in connection
with importation, in excess of those imposed on the day
of the signature of this Agreement or required to be im-
posed thereafter under laws of the Republic of Costa Rica
in force on the day of the signature of this Agreement.

TEXT OF THE U.S. NOTE

Excellency : I have the honor to refer to con-
versations which have taken place between repre-
sentatives of the Governments of the United States
of America and the Republic of Costa Rica with
regard to the fact that the Government of Costa
Rica has been impelled by its present foreign ex-
change position to enact a "Law for the Control of
ointernational Transactions," which, as promul-
gated on April 1, 1950, includes provisions for the
imposition of multiple exchange surcharges. In
the course of the conversations, reference was
made to the respect of the Government of Costa
Rica for its international obligations, resulting in
a desire on its part to maintain the existing trade
agi-eement with the United States of America
which was signed at San Jose on November 28,
1936, and entered into force on August 2, 1937.

In view of the fact that, as applied to imports
from the United States of America, of products
listed in Schedule I of the trade agreement, the
multiple exchange surcharges are in conflict with



Article I of the trade agreement, the Government
of Costa Rica has requested the Government of
the United States of America to agree to a waiver
of Article I during the emergency period for
which the measure is intended to provide.

Recognizing the problem confronting the Gov-
ernment of Costa Rica, the Government of the
United States of America agrees that, for a period
of one year, beginning April 1, 1950, it will waive
the provisions of Article I of the above-mentioned
trade agreement in respect of the application of
the multiple exchange surcharges in question to
imports from the United States of America of
articles included in Schedule I of the trade agree-
ment.

The Government of the United States of America
considers that its agreement to the waiver of
Article I is a temporary expedient to permit the
maintenance of the trade agreement while the Gov-
ernment of Costa Rica seeks a solution of its finan-
cial difficulties which will not be in conflict with
Article I.

The Government of the United States of
America reserves the right to revoke the waiver of
Article I upon 30 days' written notice to the Gov-
ernment of Costa Rica if the multiple exchange
surcharges are used for purposes other than those
referred to in the preceding paragraph.

If the Government of Costa Rica concurs in the
foregoing, this note, and Your Excellency's reply
thereto, will constitute an agreement between our
two Governments, effective upon receipt of Your
Excellency's note.

Accept [etc.]

For the Secretary of State :

Edward G. Miller, Jr.

TEXT OF THE COSTA RICAN NOTE

[Translation] J^pril ^^ JQSO

Excellency: I have the honor to acknowledge
the receipt of Your Excellency's note of April 4,
1950 in which reference is made to conversations
which have taken place between representatives of
the Governments of tlie Republic of Costa Rica
and of the United States of America with regard
to the fact that the Government of Costa Rica has



694



Department of Stale Bulletin



been iiiipellod by its present foreign exchiinge
position to enact a ''Law for the Control of Inter-
national Transactions" which, as pronml-jated on
April 1, 1!).")(). includes provisions for the imposi-
tion of nndtiple exchanjie surcharges.

I am pleased to inform Your Excellency that
the Government of Costa Rica confirms that the
terms of the understanding; it has reached with the
United States Government are those expressed in
your note of April 4, 1!)5(). and that j'our note, to-
gether with this reply, constitute an agreement
between our two Governments.

It is the firm belief of the Government of Costa
Rica that the ajiplication of the new exchange
legislation will enable it to arrive sooner at a
satisfactory solution of its financial diflicultics, to
deal more effectively with inflationary forces, to
provide for the eventual elimination of arrears in
its international ]):iyments, and to strengthen its
foreign exchange reserves.

It has been gratifying to my Government to ob-
sei-ve the good willand the understanding of its
problems that have been demonstrated by the rep-
resentatives of the United States Government with
whom those problems have been discussed.

Accept [etc.]

Mario Echandi



U.S.-Dominican Tariff Concessions

The tariff concessions which the Dominican Re-
public initially negotiated with the United States
at Annecy, France, in 1949, and certain of the tariff
concessions which the United States initially ne-
gotiated with the Dominican Republic will become
effective on May 19, 1950.^

The Dominican Republic on April 19, 1950,
signed the Annecy Protocol of Terms of Accession
to the General Agreement on Tariffs and Trade
and has taken the other steps necessary to become
a contracting party to the agreement. Under the
pro%'isions of the protocol, the two governments are
obligated to make their concessions effective 30
days after these actions have been taken.

The Dominican Republic is the fourth among
the 10 new acceding countries which negotiated at
Annecy to take this action. Haiti, Greece, and
Sweden are the other three countries.

Reductions in duty were granted to the United
States by the Dominican Republic on such i)rod-
ucts as prepared cereals of oats, unsweetened bread,
biscuits and crackers, hops, canned fruits, leaf and
shredded cigarette tobacco, radio transmitting and
receiving apparatus, radio phonographs, other
phonographs, photographic cameras, sugarcane
harvesting machinery and parts, woven wire for
fences, varnishes, driers, lacquers and stains, glass-
ware, fountain pens, and unexposed photographic

' For a list of the tariff concessions p-anted, see Depart-
ment of State press release 381 of Apr. 20, 1950.

May 1, 1950



films. Present duties or duty-free treatment were
bound on such prmlucts as wheat, wheat flour,
malt, raw cotton, fre.sh fruits and berries, business
nuichines, electrical apparatus, agricultural ma-
chinery and implements, printing machinery,
paper, printed matter, certain cotton fabrics, phar-
maceutical products, certain fertilizers, and auto-
mobile and truck tires.



Canadian-U.S. Weather
Stations To Be Resupplied

The Department of State announced on April 6
that the annual spring resupply of the Canadian-
United States Arctic Weather "Stations, in which
the Koyal Canadian Air Force will this year coop-
erate with the United States Air Force, is now
under way.

This air-transport operation to the weather sta-
tions in the north of the Canadian Arctic islands
established jointly by the Meteorological Division
of the Canadian Dei)artment of Transport and the
United States Weather Bureau will be carried out
from the Central Joint AVeather Station at Reso-
lute Bay, Cornwallis Island. It will include the
establishment of another joint weather station —
the most northerly in North America — at the
northeastern tip of Ellesmere Island.

The supplies to be transported include provi-
sions, scientific instruments, and fuel oil moved by
ship to Resolute last summer. These will be de-
livered to the joint stations at Mould Bay, Prince
Patrick Island; Isachsen, Ellef Kingnes Island;
and Eureka on the west coast of Ellesmere Island.
The spring airlift will continue until the end of
April or early in May.

The joint stations are each staffed by a Canadian
ofhcer- in -charge and equal numbers of United
States and Canadian Weather Service personnel.
Replacement staffs will take up their duties this
spring when the stations are resuj^plied. Weather
rejiorts from the Joint Arctic Weather Stations
are transmitted 4 times daily by radio to Edmon-
ton, Alberta, and teletyped from there for distribu-
tion to forecast centers on the North American
Continent. They also receive world-wide distribu-
tion. • TTT ^1

Since the inception of the Joint Arctic Weather
Station Programme in 1947, the United State.s Air
Force has carried out the airlift to the four joint
stations at present established. This spring, the
USAF is using C-47, C-82, and C-54 planes



Online LibraryUnited States. Dept. of State. Office of Public CoDepartment of State bulletin (Volume v. 22, Apr- Jun 1950) → online text (page 38 of 116)