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TREATY INFORMATION Temporary Walver of Some Provisions in U.S.-Iran Trade Agreement Presa release 218 dated April 27 an DEPARTMENT ANNOUNCEMENT On April 12, 1960, the U.S. Government, through the American Embassy at Tehran, ex- changed notes with the Government of Iran in which the Government of the United States agreed _not to invoke article VI of the United States-Iran Reciprocal Trade Agreement of 1943? with respect to the temporary imposition by Iran of commer- cial profits taxes on certain products on which Iran had given tariff concessions to the United States in the agreement. The Government of Iran had re- quested U.S. agreement to these taxes because of Iran’s balance-of-payments problem. The ex- change of notes covers a period not to exceed 6 months immediately following the date of the ex- change. The original agreement was signed on April 8, 1948. Under the terms of the notes, the taxes in ques- tion shall not be imposed on products of the United States at rates higher than those at which they are imposed on products of any third coun- try. Inno case shall the combined duty and com- mercial profits taxes exceed the ad valorem rate specified for the respective products in the notes. The text of the U.S. note is attached. The Iranian reply is identical in substance. TEXT OF U.S. NOTE Dean Mz. Minierer: J refer to recent discussions with respect to the serious balance of payments situation con- fronting Iran. It is my understanding that these discus- gions have resulted in the following agreement: 1. The Government of Iran considers ft necessary dur- ing the next six months temporarily to impose its commercial profits taxes on the importation of the following products of the United States provided for.in Schedule I to the Trade Agreement between the United States and Iran, signed April 8, 1943, but in * 58 Stat. 1822. May 23, 1960 _no_case shali the combined duty and commercial profits taxes; or the-ad-valorem.equivelent_of_such_ combined duty and taxes in cases in which a specific rate is involved, exceed the ad valorem rate specified for the respective products : Tori, : 868 B Radio receiving sets, including phonographs 1. Up to 5,000 rials ($65) 25 percent §,000-10,000 rials ($65-$130) 50 percent More than 10,000 rials ($130) 75 percent 868 D “Television receivers Up to 20,000 rials ($261) 25 percent 20,000 rials or more 50 percent 890 A Passenger cars including sport models Up to 200,000 rials ($2614) 36 percent 200,000-300,000 rials ($2614- $3921) 50 percent 300,000 ($3921) or more 75 percent 2 Such commercial profits taxes shall not be imposed on products of the United States at rates higher than those at which these taxes are imposed on products of any third country. 8 In view of the serions balance of payments situation of Iran the Government of the United States, during the period of six months immediately following the date of this note, will not invoke the provisions of Article VI of the Trade Agreement in respect of the commercial profit taxes specified above. The Government of the United States of America will consider that this note, together with your note in reply, indicating concurrence of the Government of Iran in re- gpect to the matter set forth above, constitute an agree- ment between the Government of the United States of America and the Government of Iran to enter into force on the date of your reply note. . Sincerely yours, . Epwasp T. Wanxs His Excellency Hassan ALI MAnsvrR, Minister of Commerce, Ministry of Commerce, Tehran. Current Actions MULTILATERAL Cultural Relations Agreement on the importation of educational, scientific, and cultural materials, and protocol. Done at Lake Buccess November 22, 1950. Entered into force May 21, 1952. Acceptance deposited: Denmark, April 5, 1960. Shipping : _ Convention on the Intergovernmental Maritime Consulta- * Not in force for the United Btates. 843 Prat ott ene ete ee tae ate : ; i i i