Foreign Relations of the United States Diplomatic Papers, 1938, The British Commonwealth, Europe, Near East, and Africa, Volume II

611.6731/419

Draft Article on Exchange Control Submitted by the American Trade Delegation at Istanbul on July 28, 1938²⁷

Istanbul, July 28, 1938

1. In the event that the United States of America or the Turkish Republic shall establish or maintain, directly or indirectly, any form of control of the means of international payment, it shall, in the administration of such control, accord unconditionally with respect to (a) the rate of exchange applicable to the purchase of foreign exchange intended for the transfer of payments for imported articles originating in the other country or payments necessitated by such importations, (b) all charges and surtaxes imposed in connection with the purchase of such foreign exchange, and (c) all regulations and formalities applicable to the purchase of such foreign exchange, treatment not less favorable than that which is accorded in regard to payments connected with importations of any article from any third country.

2. The Turkish Government undertakes, with respect to the amount of exchange made available for the transfer of payments for imported articles originating in the United States, to allocate in any year, as a minimum, an amount of exchange which shall be sufficient to pay for a proportion of the total importations into the Turkish Republic in such year equivalent to the proportion of the total importations supplied by the United States in the period from January 1, 1935 to December 31, 1937.

27. Transmitted to the Department by the Ambassador in his despatch No. 764, August 1; received August 12.