78. Editorial Note

On August 12, Ambassador Yang and Assistant Secretary of State Robertson signed an amendment to the November 17, 1954, Agreed Minute between the United States and the Republic of Korea. The amendment established an official exchange rate of 500 hwan to one dollar, applicable to all exchange transactions between the two governments, with certain minor, specified exceptions. The text of the amendment is printed in the Department of State Bulletin, August 29, 1955, pages 356–357. A confidential annex to the amendment, however, was not released. The text of the annex, as transmitted to Seoul in telegram 98, August 12, reads as follows:

  • “(a) Official exchange rate referred to in amendment dated August 12, 1955 to Appendix A of Agreed Minute between Governments USA and ROK of November 17, 1954 will continue in effect through September 30, 1956.
  • “(b) At end this period unless and until new rate for fixed period time mutually agreed upon:
    • “(1) Rate referred to in amendment dated August 12, 1955 shall continue in effect unless for month September 1956 average level Seoul wholesale price index as presently constituted is more than 25% higher or lower than average level this index for September 1955 in which case exchange rate will be adjusted no later than October 15, 1956 in same percentage and direction as change in index.
    • “(2) Rate established under (1) above shall remain in effect unless during last month of any quarterly period starting October 1, 1956 average level of above-mentioned index has changed by 25% or more as compared to its level during month on which previous adjustment was based or September 1955 whichever is later. In event such change exchange rate will be adjusted by same percentage and direction effective no later than 15th day of following month.” (Department of State, Central Files, 795.00/8–1255)