52 STAT.] CHILE-COMMERCIAL RELATIONS Jaen. 1938 Feb. 1, 1938 at such lower duty or charge which is equivalent to the proportion of the total importation of such article which such other country supplied during a previous representative period, unless it be mutually agreed to dispense with such allocation. 3. a) The Government of Chile confirms its previous declarations and reiterates that it will take the steps necessary to abolish, as soon as its international economic position permits it to do so, the exchange- control measures affecting the transfer of payments for articles the growth, produce, or manufacture of the United States of America. b) Until such time the Government of Chile will avoid exchange- control measures involving the use of exchange at rates higher than those which would be set by the free supply and demand of the market. 4. It is understood that the advantages now accorded or which may hereafter be accorded by the United States of America, its territories or possessions, the Philippine Islands, or the Panama Canal Zone to one another or to the Republic of Cuba shall be excepted from the operation of this agreement; and this agreement shall not apply in respect of advantages now accorded or which may hereafter be accorded by the United States of America or the Republic of Chile to adjacent countries in order to facilitate the small frontier traffic. 5. Nothing in this agreement shall be construed as a limitation of the right of either country to impose on such terms as it may see fit prohibitions or restrictions (1) imposed on moral or humanitarian grounds; (2) designed to protect human, animal, or plant health or life; (3) relating to prison-made goods; (4) relating to the enforce- ment of police or revenue laws; or (5) relating to the control of the export or sale for export of arms, ammunition, or implements of war, and, in exceptional circumstances, all other military supplies. 6. The agreements between the United States of America and the Republic of Chile signed September 28, 1931, shall terminate, if they will not have already automatically terminated, on the day on which the present agreement comes into force. 7. The present agreement shall continue in force until superseded by a more comprehensive commercial agreement or by a definitive treaty of friendship, commerce, and navigation, or until denounced by either country by advance written notice of not less than 30 days. 8. Both Governments undertake immediately to initiate negotia- tions for the conclusion of a treaty of friendship, commerce, and navigation. Accept, Excellency, the assurances of my highest and most distin- guished consideration. J. RAM6N GUTIERREZ To the Honorable Mr. WESLEY FROST, Charge d'Affaires of the United States of North America, City.
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