ABSTRACT
UNTIL the middle of 1953 no trade treaty existed to regulate our trade with the dollar area. The fact that the dollar was convertible made trade and payments agreements superfluous; and Washington recognises the hard nature of the dollar by refraining from insisting on special payments agreements to overcome the obstacles to American exports which lie in the dollar shortage from which its customers suffer. The great barrier on the American market consists in tariffs and in an administrative protectionism. This is true despite our G.A.T.T. treaty concluded with the United States in 1950, a treaty providing for few and inadequate tariff reductions. Apart from these our exports depend on our competitive ability in the difficult dollar markets, and on the degree to which German exporters overcome these difficulties. The dollar area is a competitive market par excellence. Our policy naturally confines itself to concluding long-term treaties analogous to the trade, navigation and consular treaty of 1923, and to safeguarding ourselves against discrimination by arranging for most-favoured-nation treatment. Apart from this, any treaties concluded should deal with double taxation, rights of domicile, and the facilitation of entry to German representatives and visitors, thus providing conditions giving our traders a maximum freedom of action. Since the Chancellor's journey to the United States at the beginning of 1953, these tasks have been vigorously attacked; a number of agreements have been reached which afford an interim solution calculated to lead to the ultimate resuscitation of important parts of the 1923 treaty, plus the assurance of most-favoured-nation treatment. The interim treaty was signed by the two Governments on June 3, 1953, and it can be assumed that it will shortly be ratified. At the present moment German business-men can obtain visas
under the trade treaty, they can acquire real estate, take a share in American firms or themselves found firms. The legal framework to permit a healthy exchange of goods and capital is thus once again in existence. The conclusion of this treaty was a signal for the conclusion of similar comprehensive trade treaties on classical lines with other countries.
