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GATT Library | xn818zr3985 | Article XV exchange arrangements. United States proposal for a draft letter to Managing Director of IMF providing for consultation. : Item 17(a) of the agenda | General Agreement on Tariffs and Trade, August 18, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 18/08/1948 | official documents | GATT/CP.2/W.2 and GATT/CP.2/W.1-W.14 CP.2/W.1/Rev.1,CP.2/W.9/Corr.1,W.9/Add.1 | https://exhibits.stanford.edu/gatt/catalog/xn818zr3985 | xn818zr3985_91870453.xml | GATT_145 | 556 | 3,609 | RESTRICTED
GATT /CP.2/W.2
18 August 1948
ORIGINAL : ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
Contracting Parties
Second session
Item 17(a) of the agenda
ARTICLE XV EXCHANGE ARRANGEMENTS
UNITED STATES PROPOSAL FOR A DRAFT LETTER
TO MANAGING DIRECTOR OF
IMF PROVIDING FOR CONSULTATION
The United States delegation suggests for the
consideration of the CONTRACTING PARTIES that the following
letter be sent by the Chairman of the CONTRACTING PARTIES
to the Managing Director of the International Monetary Fund
to form the basis, with the reply from the Fund, for
consultation between the CONTRACTING PARTIES and the
International Monetary Fund pursuant to the various pro
visions of the General Agreement contemplating such
consultation:
Dear Sir:
The General Agreement on Tariffs and Trade, which has
now been put into provisional application by all but one of
the countries participating in the negotiation thereof, pro-
vides in paragraph 1 of Article XV as follows:
"1. The CONTRACTING PARTIES shall seek co-operation
with the International Monetary Fund to the end that
the CONTRACTING PARTIES and the Fund may pursue a co-
ordinated policy with regard to exchange questions
within the jurisdiction of the Fund and questions of
quantitative restrictions and other trade measures
within the jurisdiction of the CONTRACTING PARTIES."
Throu:hout the Agreement various provisions call for
consultation or agreement between the CONTRACTING PARTIES,
that is the contracting parties to the General Agreement
acting jointly, and the International Monetary Fund on
matters of common concerns In particular paragraph 2
of Article XV calls for a wide range of consultation.
Paragraph 3 of article XV provides:
"3. The CONTRACTING PARTIES shall seek agreement with
the Fund regarding procedures for consultation under
paragraph 2 of this Article."
In view of the fact that the General Agreement on
Tariffs and Trade has been given only provisional rather
than definitive application, it is the view of the
CONTRACTING PARTIES that an elaborate agreement to
implement paragraph 3 quoted above is not necessary at this
time. However, questions may arise in the interim which
would require the CONTRACTING PARTIES to seek the co-
operation of the Fund.
Under such circumstances it is proposed by the
CONTRACTING PARTIES that the Fund agree to cooperate with the
CONTRACTING PARTIES in carrying out the provisions of the GATT/CP.2/W.2
Page 2.
General Agreement in accordance with the terms thereof
and, in particular, to consults at the request of the
CONTRACTING PARTIES, on matters as contemplated by the
General Agreemnt. If such cases arises I shall notify
you of each particular instance in which the CONTRACTING
PARTIES desire consultation and shall furnish you with all
information available which may assist you in considering
the question. It might be necessary to await a meeting
of the contracting parties before formal consultation
could be undertaken, but I have been authorized between
meetings to request uch consultation an thus afford
you the opportunity to become familiar with the subject
matter involved.
I would appreciate an indication that the Fund is
prepared to consult with the CONTRACTING PARTIES on
matters contemplated by the General Agreement from time
to time at the request of the COMTTRCTING PARTIES
communicated to you by me. The procedures can be worked
out on a case by case basis until we have had a little
experience on the basis of which we may want to work out
a more formal procedure. |
GATT Library | nt620xh7019 | Article XVIII- Paragraph 6 | General Agreement on Tariffs and Trade, March 11, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 11/03/1948 | official documents | GATT/1/20 and GATT/1/9-28+21/Add.1 | https://exhibits.stanford.edu/gatt/catalog/nt620xh7019 | nt620xh7019_90310294.xml | GATT_145 | 1,456 | 8,853 | RESTRICTED GATT/1/20
11 March 1948
ENGLISH
ORIGINAL: SPANISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
FIRST MEETING OF THE CONTRACTING PARTIES
Article XVIII- Paragraph 6
With reference to Item 6 of document 4991 - GATT/1/1 of 18 February,
the delegation of Cuba. to the First Meeting of the Contracting Parties,
now being held in Havana, wishes to make the following statement:
1. In. document E/PC/T/190 (Restricted) of 2 September 1947,
containing the notification which the delegation of Cuba lodged
with the Secretariat of the Second Session of the Preparatory
Committee of the United Nations Conference an Trade and Employment,
held in Geneva, it was noted that Cuba wished to maintain the
existing legal system of import quotas for condensed milk; trimmings,
gallons and ribbens; tallow, quebracho, textiles, rubber goods and
rice.
2. Before the end of the Second Session, Cuba limited its request
to the maintenance of import quotas for quebrache, sisal (henequen),
and trimmings, galloons and ribbons, referred to in the Cuban.
Government's Decree No. 2155 of 1944.
3., The Cuban delegation now wishes to comply with the provisions
of paragraph 6 of Article XVIII of the General Agreement on Tariffs
and Trade, by notifying its final decision, the considerations in
support of its request to maintain quotas in the two cases in
connection with which such a request is being made, and the period
for which quotas are to remain in force, solely in respect of the
products listed in paragraph 2 above. In this connection the
following is noted.,
(a) QUEBRACHO (Decrees Nos. 168 and 1388 of 26 January and
15 May 1942).
The Cuban Government renounces the right to maintain the
quota system formerly applied to the importation of this product.
(b) SISAL (Henequen) (Decree No. 1693 of 23 June 1939).
Owin to the fact that proper technical and economic methods
and implements are not used, the cultivation of sisal or henequen
/in Cuba GATT/1/20
Page 2
in Cuba has not yet reached that degree of perfection necessary to
permit this branch of agriculture to compete on fair terms with
the production of other countries.
The maintenance of the quota is justified by this fact, the
additional circumstance that the cost of producing henequen fibre
in Cuba is hirgher than in other countries, on account of, among
other reasons, the level of wages, labour standards, contributions
under social legislation, the value of Cuban currency in relation
to that of other countries producing the same article, and the
further fact. that the importation of the fibre into Cuba is not
taxed.
The suspension of the application of the quota system to
the importation of henequen or sisal fibres, whether granted now
when.there is a sufficient demand for the production of other
countries an the foreign market, or at a time when this demand has
appreciably declined or disappeared altogether and there is an
excess of production over consumption; will be of advantage neither
to other countries nor to Cuba, but would on the contrary, in the
second case, be decidedly harmful.
In fact the production of this fibre is now being absorbed
by the various nations which require it, either by native industries,
or by industries located in territories where domestic production
is not sufficient to meet the needs of industries based on it
or where the fibre is not produced.
Therefore, if the quota system were suspended, the producer
using henequen fibre would not profit at all from the entry into
Cuba of a fibre which is not going to arrive under present
circumstances, since its markets are more or less fixed.
On the other hand, as the present direct relation between
production and consumption disappears, and conditions alter so
that production exceeds consumption, countries producing this
fibre would enter the Cuban market to compete directly with the
Cuban producer and would undoubtedly drive him out, for the reason,
already made clear, that in many of the producing countries, among
them Africa,a Java and.Haiti, wages are much lover than those paid
in Cuba for the same work, while, in addition, the Cuban taxation
system, the wages system and, and the differences in currency, would mean
that the foreign fibre would certainly be preferred to the national
product on account of its lower price.
/it is not GATT/1/20
Page 3
It is not the intention of the Cuban delegation to maintain
this situation indefinitely and. it realizes that the duration of
exceptional measures such as quotas must be limited to a period of
time calculated beforehand to be sufficient to correct the defects
which give rise to or .justify the protective measures.
It is considered that this period, quite apart from the period
for which the General Agreement on Tariffs and Trade has been
concluded, should. be not less than ten years,
The Cuban delegation is confident that during this time
technically more advanced and perfect methods of cultivation
in place of the primitive means at present used by Cuban
farmers to cultivate this product, together with the application
of new systems of protection for the farmer, will definitely
enable the Cuban producer to resist. the fair competition of
foreign producers within the framework of the General Agreement
on. Tariffs and Trade, and that finally agreed upon in the
Draft Charter now being discussed in Havana.
(c) TRIMMINGS GALLOONS AND RIBBONS (Decree No. 2155 of
21 Julu 1944)..
In 1939 an industry for the manufacture of trimmings,
galloons and ribbons was established in Cuba. The duties on
these articles (Items 127 A and. B and 142 A and B of the
Tariff Schedule), while. low, nevertheless made it possible
to establish an industry of this kind, and the raw materials
which were obtained, abroad. the level of wages and station,
and all the other factors which determined the cost or.
production of ribbons, trimmings, braids, and galloons and other
articles of cotton or rayon. or other synthetic fibres, .justified
a reasonable margin of protection.
Nevertheless, with the increase in costs which began to
rise as a result of the World. War, the tariff protection was
gradually reduced to vanishing point, and therefore, on 21 July 194
the Governmont of-Cuba enacted Decree No. 2155 making the
importation of the articles covered by Iteme 127 A and B and
142 A and B subject to a quota system. Had this not been done
imports would have definitely ousted the Cuban industry and
caused it to disappear.
In order to give an idea of the disproportionate increase
in costs, it is sufficient to point out that while the average
worker in this industry received an average wage of six pesos
/a week, GATT/1/20
Page 4
a week, the average weekly wage which is now being paid
and which has been paid since 1944 is thirty pesos.
The Government of Cuba would have preferred not to resort
to the quota system when this regime was instituted; it would
have preferred to make a very substantial increase in the
duties concerned, bringing them into lino with those prevailing
in almost every other country and especially in the United States
of America.
However, owing to the constitutional requirements which
have to be complied with in Cuba, involving the sending of a
message by the Executive to Congress requesting the approval
of a law for an increase in tariffs, the approval of such a
law by both Houses of Cogress and its subsequent ratification
by the Executive would imply the lapse of a long period of time
at the end of which the measure would probably have proved
to be useless, since the industry would have already disappeared.
One million pesos were invested in the establishment of the
industry in question, while the annual wage bill is not less
than 250,000 pesos, and the industry provides a livelihood for
more than 250 workers.
Should it prove impossible to maintain the quota system
the investment would undoubtedly be lost, but great as this
loss would be, it would be trivial compared to the fact that
more than 250 employees would be thrown out of work and added
to the number of unemployed, consequently prejudicing the
economic development of Cuba, a result which would be contrary
to the basic principles set forth in the General Agreement on
Tariffs and Trade and in the Draft Charter for an Intenational
Trade Organization.
In conclusion, the delegation of Cuba requests that Cuba
be allowed to maintain the quota system established by
Decree No. 2155 of 194, in the form laid down in that document,
until such time as Congress enacts a law increasing duties to
the extent necessary to permit the industry to operate without
a quota system, or for a period of ten years, should such a law
not be enacted.
Havana, 10 March 1948. |
GATT Library | sd480jb8442 | Article XXIX, Paragraph 1 Note by the Indian Delegation | General Agreement on Tariffs and Trade, September 3, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 03/09/1948 | official documents | GATT/CP.2/28 and GATT/CP.2/28 - 36 CP.2/32/Rev.1 | https://exhibits.stanford.edu/gatt/catalog/sd480jb8442 | sd480jb8442_90320045.xml | GATT_145 | 1,017 | 6,611 | RESTRICTED
LIMITED B
GATT/CP. 2/28
3 September 1948
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
Contracting Parties
Second Session
Article XXIX, Paragraph 1
Note by the Indian legation
1. Certain Delegations have proposed that the text of
Article XXIX, paragraph 1, recommended by Working Party No.
3 in GATT/CP.2/22/Rev.1, be amended as follows:
"The contracting parties undertake to observe
to the fullest extent of their executive
authority the general principles of Chapters
I - VI and IX of the Havana Charter pending
their acceptance of it in accordance with
their constitutional procedures."
2. The Indian Delegation has hitherto opposed this
amendment because of its view that the amendment may create
a misunderstanding about the attitude of the Contracting
Parties towards any general principles contained in
Chapters VII and VIII of the Havana Charter. The Indian
Delegation considers it necessary to guard against any such
possibility of misunderstanding.
3. The Indian Delegation would, therefore, be prepared to
recommend to its Government the acceptance of the above
amendment if the intention of the Contracting Parties in
excluding reference to Chapters VII and VIII of the Havana
Charter from Article XXIX, paragraph 1, were made clear by
expressing it in the following words :
"Chapters VII and VIII of the Havana Charter have
been excluded because they mainly deal with the
organization, functions and procedures of the
International Trade Organization."
4. The Indian Delegation hopes that with the above
clarification the unanimity which is required to amend
Article XXIX will now be achieved. RESTRI CTED
LIMITED B
GATT/CP. 2/29
3 September 1948
ORIGINAL : ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
Contracting Parties
Second Session
REPORT OF THE LEGAL WORKING PARTY UPON THE REQUEST OF THE
GOVERNMENT OF CHILE FOR AN EXTENSION OF TIME. IN WHICH TO
SIGN THE PROTOCOL OF PROVISIONAL APPLICATION.
1. The Legal Working Party recommends that the CONTRACTING
PARTIES should adopt the attached draft resolution and
protocol.
2. It was agreed that under the draft resolution and
protocol the Government of Chile would at the appropriate
time become a contracting party in accordance'with the con-
cessions negotiated at the Second Session of the Preparatory
Committee and embodied in the Schedules to the General
Agreement.
Draft Resolution Regarding the Applicability of
Article XXXIII to Signatories of the Final Act of
October 30, 1947 Failing to Sign the Protocol of
Provisional application by June 30, 1948.
CONSIDERING that Article XXXIII of the General Agreement
on Tariffs and Trade, as amended, provides for the accession
to the General Agreement of governments not "party" to that
Agreement, and
CONSIDERING the fact that the Protocol of Provisional
Application of the General Agreement, which stated that it
should remain open for signature until June 30, 1948, was
not signed by that date on behalf of all the governments
signatory to the Final Act of the Second Session of the
Preparatory Committee for the United Nations Conference on
Trade and Employment, signed October 30, 1947.
THE CONTRACTING PARTIES resolve that a government signa-
tory of the Final Act of October 30, 1947 on behalf of which
the Protocol of Provisional Application was not signed by
June 30, 1948 shall not be considered to be a "party" within
the meaning of Article XXXIII of the General Agreement, as
amended, and consequently that any such government may accede
to the General Agreement pursuant to the provisions of
Article XXXIII, as amended.
PROTOCOL FOR THE ACCESSION OF SIGNATORIES OF THE FINAL
ACT OF OCTOBER 30, 1947.
CONSIDERING the fact that the Protocol of Provisional
Application of the General Agreement on Tariffs and Trade, GATT/CP. 2/29
page 2
which by its terms remained open for signature until June 30,
1948, was not by that date signed by all the governments
signatory to the Final Act of the Second Session of the
Preparatory Committee for the United Nations Conference on
Trade and Employment.
CONSIDERING the Resolution of the Second Session of the
Contracting Parties that such a government shall not be con-
sidered to be a "party" to the General Agreement within the
meaning of Article XXXIII thereof, and
CONSIDERING the desirability of affording an additional
opportunity for the provisional application between such a
government and the contracting parties of the provisions of
the General Agreement which was concluded at the Second Session
of the Preparatory Committee and authenticated on October
30, 1947.
IT IS AGREED with regard to the terms upon which such
a government, by signature of the present protocol, may accede
under Article XXXIII of the General Agreement:
1. Any such government shall, without prejudice to
its right to accept the General Agreement under Article XXVI,
apply the General Agreement, as amended and rectified, pro-
visionally in accordance with the provisions of paragraphs
1(a), l(b), and 5 of the Protocol of Provisional Application.
Such government shall also have the right of election provided
for in sub-paragraph (d) of paragraph 1 of Article XIV of
the General agreement as if it had signed the Protocol of
Provisional Application before July 1, 1948; Provided the
written notice of such election is communicated to the
CONTRACTING PARTIES before January 1, 1949 or before the day
on which such government becomes a contracting party, which-
ever is the later.
2. Such provisional application shall take effect for
any such government on the thirtieth day after the signature
hereof by such government, provided such signature is affixed
before______________ , and provided further that this Protocol
has on the day of such signature been signed by two-thirds of
the governments then contracting parties to the General Agree-
ment. Upon signature of this protocol by two-thirds of the
contracting parties it shall constitute a decision for the
purpose of Article XXXIII of the General Agreement.
3. The original of this Protocol shall be deposited
with the Secretary-General of the United Nations, where it
will remain open for signature. The Secretary-General. is
authorised to effect registration of the Protocol.
IN WITNESS WHEREOF the respective representatives, duly
authorized, have signed the present Protocol.
DONE at Geneva, in a single copy, in the English and
French languages, both texts authentic, this_______ay of
September, 1948. |
GATT Library | sf695br5438 | Articles 16, 42, 42A and 42B as adopted by Committee III | United Nations Conference on Trade and Employment, March 11, 1948 | Third Committee: Commercial Policy | 11/03/1948 | official documents | E/CONF.2/C.3/85 and E/CONF.2/C.3/78-89/ADD.3 | https://exhibits.stanford.edu/gatt/catalog/sf695br5438 | sf695br5438_90190192.xml | GATT_145 | 2,924 | 19,069 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERECE E/CONF.2/C.3/85
ON DU 11MARCH 1948
TRADE AND EMPLOYMET COMMERCE ET DE L'EMPLOI ORIGINAL:ENGLISH
THIRD COMMITTEE: COMERCIAL POLICY
ARTICLES 16, 42, 42A AND 42B As
ADOPTED BY COMMITTEE III
Article 16
General MOST-favoured-natlon Treatment
1. With respect to customs duties and charges of any kind imposed on or in
connection with importation or exportation or imposed on the internatioial
transfer of payments for imports or exports, and with respect to the method
of levying such duties and charges, and with respect to all rules and
formalites in connection with importation and exportation, and with respect
to all matters within the scope of paragraphs 2 and 4 of Article 18, any
advantage,favour,privilage or immunity granted by any Member to any product
originating In or destined for any other country, shall be accorded immediately
and unconditionally to the like product originating in or destined, for all.
other Member countries respectively.
2. The provisions of paragraph 1 of this Article shall not require the
eliminition, except as provided in Article 17, of any preferences in respect
of import duties or charges which do not exceed the margins provided.for
in.paragrapa 3 of this Article and which fall within the following
descriptions:
(a) preferences in force exclusively between two or more of the
territories listed in Annex A to this Charter, subject to the conditions
set forth therein;
(b) preferences in force exclusively between two or more territories
which on 1 July 1939 were connected by common sovereignty or relations
of protection or suzerainty and. which are listed. in Annexes B, C, D
and E of this Charter, subject to the conditions set forth therein;
(c) preferences in force exclusively between the Unitod. States of
America and the Republic of Cuba;
(d) preferences in force exclusively between the Republic of the
Philippines and the United States of America, include including the dependent
territories of the latter;
/(e) preferences 2/CONF.2/C.3/85
Page 2
(e) preferences in force exclusively between neibhouring countries
listed in Annexes F, G, G, I and J of this Charter.
3. The provisions of paragraph 1 of this Article shall not apply to
preferences between countries named in Annex K of this Charter, provided
such preferences fulfil the applicable requirements of Article 15.
4. The margin of preference on any product in respect of which a preference
is permitted. under paragraph 2 of this Article shall not exceed (a) the
maxima margin provided for under the General Agreement on Tariffs and Trade
or any subsequent operative agreement resulting from negotiations under
Article 17, or (b) if not provided for under such agreements, the margin
existing either on 10 April 1947 or on such earlier date as may have been
established for a Member as a basis for negotiating the General Agreement on
Tariffs and Trades at the option of such Member,
5. The imposition of a margin of tariff preference not in excess of the
amount necessary to compensate for the elimiration of a margin of preforance
in an internal tax existing on 10 April 1947 exclusively between two or more
of the territories in respect of which preferential import duties or charges
are permitted under paragraph 2 of this Article shall not be deemed to be
contrary to the provisions of this Article, it being understood that any such
margin of tariff preference shall be subject to the provisions of Article 17.
Inte. relative Note
Article 16
The term "margin of preference means the absolute difference between.
the most-favoured-nation rate of duty and the preferential rate of duty for
the like product, and not the proportionate relation between those rates,
As examples:
1. If the most-favoured-nation rate were 36 per cent ad valorem and
the preferential rate were 24 per pent ad.valorem, t margin of
preference would be 12 per cent ad valorem, and not one-third of the
most-favoured-nation rate;
2. If the most-favoured-nation rate were 36 per cent ad valorem and
the preferential rate were expressed as two-thirds of the most-favoured-
nation rate, the margin of preference would be 12 per cent ad valorem;
3, If the most-favoured-nation rate were 2 francs per kilogram and the
preferential rate were 1.50 francs per kilogram, the margin of peferenc
would be 0.50 francs per kilogrs
The following kinds of customs action, taken in accordance with
established uniform procedures, would not be contrary to a genaral binding of
margins of preference:
(i)the E/OONF,2/C.3/85
Page 3
(i) the re-application to an imported product of a tariff classification
or rate of duty, properly applicable to such product, in cases in
which the application of such classification or rate to such product
was temporarily suspended or inoperative on 10 Apri1 l947; and
(ii) the claasification of a particular product under a tariff item other
than that under which importations of that product were classified
on 10 April 1947 in cases in which, the tariff law clearly
contemplates that such products may be classified under more than
one tariff item.
ANNEXES PERTAINING TO PARGRAPH 2 OF ARTICLE 16
ANNEX A
List of Territories Referred to in Paragraph 2 (a) of Article 16
United Kingdom of Great Britain ancl Northern Ireland
Dependent teriitories of the United Kingdom of Great Britain and
Northern Ireland
Canada
Commonwealth of Australia
Dependent teritories of the Commonwealth of Australia
New Zealand
Dependent territories of New Zealand
Union of South Africa including South West Africa
Ireland
India (as at 10 April 1947)
Newfoundland
Southern Rhodesia
Burma
Ceylon
Certain of the territories listed above have two or more preferential
rates in force for certain products. Any such territory may, by agreement
with the other Members which are principal suppliers of such products; at the
most-tavoured-nation rate, substitute f or such preferential rates a single
preferential rate which shall not on the whole be less favourable to suppliers
at the most-favoured-nation rate than the preferences in force prior to such
substitution.
The preferential arrangements referred to in paragraph 5 (b) of Article 23
are those existing in the United Kingdom on 10 April 1947, under contractual
agreements with the Governments of Canada, Australia and New Zealand, in
respect of chilled and frozen beef and veal, frozen mutton and lamb, chilled
/and frozen and frozen pork, and bacon. Without prejudice to any action taken under
sub-paragraph (a) (x) of paragraph 1 of Article 43, negotiations shall be
entered into when practicable among the countries substantially concerned, or
involved,in the manner provided for in Article 17, for the elimination of
these arangements or their replacenment by tariff preferences.If after such
negotiations have taken place a tariff preference is created or an existing
tariff preferences is increased to replace these arrangements such action shall.
not be considered to contravene Article 16 or Article 17.
The film hire tax in force in New Zealand.on 10 April 1947 shall, for the
purpose of this charter, be treated as a customs duty faling within
Articles 16 -and 17.The renters' film quota in force in New Zealand on
10 April 1947, shall for the purposes of this Charter be treated as a screo
quota falling within Article 19.
The Dominions of India and Pakistan have not been mentioned separately
in the above list since they had not come into existence as such on the base
date of 10 April 1947,
ANNEX B
List of Territories of the French Union Reforred to in Paragraph 2 (b)
of Article 16
France
French Equatorial Africa (Treaty Basin of the Congo and other
territories)
French West Africa
Cameroons under French Mandate*
French Somali Coast and Dependencies
French Establishments in India*
French Establishments in Oceania
French Establisiments in the Condominium of the New Hobrides*
Guadeloupe and Dependencies
French Guiana
Indo-China,
Madagascar and Dependencies
Moroco (Frenchzone)*
Martinique
New Caledonia and Dependencies
Saint-Pierre and Miquelon
Togo under French Mandato*
*For imports into Metropolitan Franoe and teritoriea of the French Union.
/ANNEX C E/CONF.2/C.3/85
ANNEX C
List of Territories of the Customs Union of Belgium, Luxembourg and
The Netherlands Referred to in Paragraph 2 (b) of Article 16
The Economic Unian of Belgium and. Luxembourg
Belgian Congo
Ruanda Urundi
The Netherlands
Netherlands Indies
Surinam
Curacao
(For imports into the metropolitan territories of the Customs Union)
ANNEX D
List of Territories of the United. States of America Referred to in
Paragraph 2 (b) of Article 16
United States of America (customs territory)
Dependent teritories of the United states of America.
ANNEX E
List of Portuguese Territories Referred. to in Paragraph 2 (b) of Article 16
Portugal and the Archipelgaoes of Madeira and the Azores
Archipelago of Cape Verte
Guinea.
St. Toe and Principe and Dependencies
S. Joao Batista de Ajuda
Cabinda
Angola
State of India and Dependencies
Macao and Dependencies
Timor and Dependencies
ANNEX F
List of Territories Covered by Preferential Arrangements Between Chile and
Neighbouring Countries Referred to in Paragraph 2 (e) of Article16
Preferences in force exclusively between, on the one hand.,
Chile
and,on the other hand,
1. Argentina
/2.Bolivia E/CONF.2/C.3/85
Page 6
2. Bolivla
3. Peru,
respectively.
ANNEX G
List of Territories Covered by Preferential Arrangements Between the
Syro-Lebanese Customs Union and Neighbouring Countries Referred to in
Paragraph 2 (e) of Article 16
Preferences in force exclusively between, on the one hand,
The Syro-Lebanese Cuatoms Union
and, on the other had,
1. Palestlne
2. Transjordan,
respectively.
ANNEX H
List of Territories Covered by Preferential Arrangements Among Colombia,
Ecuador and Venezuela Referred to in Paragraph 2 (C) of Article 16
Preferences in force exclusively between two or more of the following
countries:
Colombia
Ecuador
Venezuela
Notwithstanding the provisions of Article 16, Venezuela may
provisionally maintain the special surcharges which on 21 November 1947
were levied on products imported via certain territories, provided that
such surcharges shall not be increased above the level in effect on,
that date and shall be eliminated not later than five years from the
date of this Charter,
ANNEX I
List of Territories Covered by Preferential Arrrangements Among the Republics
of Central America Referred to in Paragraph 2 (e) of Article 16
Preferences in force exclusively between two or more of the following
countries
Costa Rica
El Salvador
Guatemala
Honduras
Nicaragua
/ANNEX J E/CONF.2/C.3/85
Page 7
ANNEX J:
List of Territories Covered by Preferential Arrangements between Argentina
and neighbouring countries Referred to in Paragraph 2 (e) of Article 16
Preferences in force exclusively between, on the one hand.,
Argentina
and., on the other hand:
1. Bolivia
2. Chile
3. Paraguay
respectively.
ANNEX K
Preferences between the countries fcrmerly a part of the Ottoman Empire
and detached from it on, 24 July 1923.
[The list of countries will be insered later].
/ARTCLE 42 E/CONF.2/C .3/85
Page 8
ARTICLE 42
(As adopted provisionally by Ccmittee III
pending, the Reports of Working Party 8
on paragraph 2 of Article 42 and Working Party 9
or paragraph 5 of Article 42B)
Article 42
Territorial Application of Chapter IV
1. The rights and obligations arising under this Chapter shall be deemed
to be in force between each and every customs territory in respect of which
this Charter has been accepted by a Member in accordance with Article 99.
2. For the purposes of this Chapter a custums territory shill be understood
to mean any territory with respect to which separate tariffs or other
regulations of commerce are maintained for [a substantial part of]
substantially all] the trado of such territory with other territories.
Article 42A
Frontier Traffic
The provisions of this Chapter shall not be construed to prevent:
(a) advantages accorded by any Member to adjacent countries in
order to facilitate frontier traffic; or
(b) advantages accorded to the trade with the free Territory of
Trieste by countries , contiguous to that territory, provided that
such advantages are not in conflict with the Treaties of Peace.
Article 42B
Customs Unions and Free-Trade Areas
1. Members recognize the desirability of increasing freedom of trade by the
development, through voluntary agreements of closer integration between the
economies of participants, They also recognize that the purpose of a customs
union or of a free-trade area should be to facilitate trade between the parties to
it and not to raise obstacles to the trade of other Members with such parties.
The provisions of this Chapter shall not therefore be construed to
prevent as between the territories of Members the formation of a customs
union or the establishment of a free-trade area or the adoption of an interim
agreement necessary for the formation of a customs union or a. freetrade area;
Provided, that
/(a) with respect (a) with respect to a customs ,union or an interim agreement leading
to the establishment of a customs union, the duties and other
regulations of commerce imposed at the institution of any such union
or interim agreement in respect of trade with Members of the Organization
shall not on the whole be higher or more restrictive than the general
incidence of the duties and regulations of commerce applicable in the
constituent territories prior to the formation of such union or the
adoption of such interim agreement, as the case may be;
(b) with respect to a free-trade area, or an interim agreement leading
to the establishment of a free-trade area, the duties and other
regulations of commerce maintained in each of the constituent territories
and applicable at the establishment of such free-trade area; or the
adoption of such interim agreement, to the trade of Members not
participating in the arrangement shall not be higher or more restrictive
than the corresponding tariffs and other regulations of commerce
existing in the same constituent territory prior to the establishment
of the free-trade area, or interim agreement, as the case may be; and
(c) any interim agreement referred to in sub-paragraphs (a) and (b)
above shall include a plan and. schedule for the attainment of such a
customs union or the establishment of such a free-trade area within a
reasonable length of time.
3. (a) Any Member deciding to enter into a custums union or a free-trade
area, or an interim agreement leading to the formation of such a union
or free-trade area, shall promptly notify the Organization and shall
make available to it such formation regarding the proposed union or
free-trade area as will enable the Organization to make such reports
and recommendations to Members as it may deem appropriate.
(b) If, after having studied the plans and schedules provided for in
an interim agreement under paragraph 2, in consultation with the
parties to that agreement and taking due account. of the information
made available in accordance viith the terms of sub-paragraph (a), the
Organization finds that such agreement is not likely to result in a
customs union or in the establishment of a free-trade area within the
period contemplated by the parties to the agreement or that such
period is not a reasonable one, the Organization shall make recommendations
to the parties to the agreement. If the parties are not prepared to
modify the agreement in accordance with such recommendations they shall
not maintain it in force or institute such agreement if it has not yet
been concluded.
/(c) Any (c) Any substantial change in the plan or schedule shall be notified
to the Organization which may request the Members concerned to consult
with it if the change seems likely to jeopardize or delay unduly the
achievement of the customs union or the free-trade area,
4. For the purpose of this charter:
(a) A customs union-shall be understood to mean the substitution of
a single customs territory for two or more customs territories, so that
(i) tariffs and other restrictive regulations of commerce
(except, where necessary, those permitted under Section B
of chapter IV and under Article 43) are eliminated on
substantially all the trade between the constituent
territories of the union or at least on substantially
all the trade in products originating in such territories
and
(ii) substantially the same tariffs and other regulations of
commerce are applied by each of the members of the union
to the trade of territories not included in the union,
subject to the provisions of paragraph 5;
(b) A free-trade area shall be understood to mean a group of two or
more customs territories in which the tariffs and other restrictive
regulations of commerce (except, where necessary, those permitted
under Section B of Chapter 1V and under Article 43) between such
territories are eliminated on substantially all the trade in products
originating in constituent territories of the free-trade area.
5. The preferences referred to in paragraph 2 of Article 16 shall not be
affected by the constitution of a customs union or a free-trade area but may
be eliminated or adjusted by means of negotiations with Members affected,
This procedure of negotiations with affected Members shall in parsouler
apply to the elimination of preferences required to conform with the
provisions of sub-paragraphs (a) (i) and (b) of paragraph 4.
6. The Organization may by a two-thirds majority of the Members present and
voting approve proposals which do not fully comply with the requirements of
the preceding paragraphs, Provided that they lead to the establishment of a
Customs Union or a free-trade area in the sense of this Article.
INTERPRETATIVE NOTE
Paragraph 5
It is understood that the provisions of Article 16 would require that,
when a product which has been imported into the territory of a member. of a
customs union or free-trade area at a preferential rate of duty and is re-
exported to the territory of another member of such union or area the latter
member should collect a duty equal to the difference between the duty already
paid. and the most-favoured-nation rate. |
GATT Library | df713yj9786 | Articles 20, 21 and 22 : (Text Approved in Second Reading) | United Nations Conference on Trade and Employment, February 21, 1948 | Third Committee: Commercial Policy | 21/02/1948 | official documents | E/CONF.2/C.3/69 and E/CONF.2/C.3/58-77/REV.1 | https://exhibits.stanford.edu/gatt/catalog/df713yj9786 | df713yj9786_90190171.xml | GATT_145 | 3,731 | 24,616 | United Nations Nations Unies UNRESTRICTED E/CONF.2/C.3/69
CONFERENCE CONFERENCE 21 February 1948
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
THIRD COMMITTEE : COMMERCIAL POLICY
ARTICLES 20, 21 and 22
(Text Approved in Second Reading)
Article 20
General Elimination of Quantitative Restrictions
1. No prohibitions or restrictions other than duties, taxes =r other charges,
whether made effective through quotas, import or export licenses or other
measures, shall be instituted or maintained by any Member on the importation of
any product of any other Member country or on the exportation or sale for
export of any product destined for any other Member country.
2. The provisions of paragraph 1 of this Article shall not extend to the
following:
(a) export prohibitions or restrictions applied for the period necessary
to prevent or relieve critical shortages of foodstuffs or other products
essential to the exporting Member country;
(b) import and export prohibitions or restrictions necessary to the
application of standards or regulations for the classification, grading
or marketing of commodities in international trade; if, in the opinion
of the Organization, the standards or regulations adopted by a Member
under this sub-paragraph have an unduly restrictive effect. on trade, the
Organization may request the Member, to revise the standards or
regulations; Provided that it shall not request the revision of standards
internationally agreed under paragraph 7 of Article 38;
(c) import restrictions on any agricultural or fisheries produoct,.
imported in any form necessary to the enforcement of governmental
measures which operate effectively:
(i) to restrict the quantities of the like domestic product
permitted to be marketed or produced, or, if there is no:
substantial domestic production. of the like product, of a
domestic agricultural or fisheries product for which the
imported product can be directly substituted;. or
/(ii) to remove a E/CONF.2/C.3/69
Page 2
(ii) to remove a temporary surplus of the like domestic product,
or, if there is no substantial domestic production of the
like product, of a domestic product for which the imported
products can be directly substituted, by making the surplus
available to certain groups of domestic consumers free of
charge or at prices below the current market level; or
(iii) to restrict the quantities permitted to be produced of any
animal product the production of which is directly
dependent, wholly or mainly, on the imported commodity, if
the domestic production of that commodity is relatively
negligible.
3. With regard to import restrictions applied under the provisions of
sub-paragraph 2(c):
(a) such restrictions shall be applied only so long as the
governmental measures referred to in sub-paragraph 2 (c) are in
force, and when applied to the import of products; domestic supplies
of which are available during only a part of the year, shall not be
applied in such a ?ay as to prevent their import in quantities sufficient
to satisfy demand for current consumption purposes during those periods
of the year when like domestic products, or domestic products for which
the imported product can be directly substituted, are not available;
(b) any Member intending to introduce restrictions on the importation
of Any product shall in order to avoid, unnecessary damage to the
interests of exporting countries give notice in writing, as far in
advance as practicable, to the Organization and to Members having a
substantial interest in supplying that product, ln order to afford such
Members adequate opportunity for consultation in accordance with
paragrsphs-2 (d) and 4 of Article 22, before the restrictions enter into
force, At the request of the importing Member concerned the notification
and any information disclosed during these consultations be kept
strictly confidential;
(c) any Member applying such restrictions shall give public notice of
the total qantity or value of the product permitted to be imported
durng a specified future period and of any change in such quantity
or value;
(d) any restrictions applied under sub-paragraph 2(c ) (i) shall not
be such as will reduce the total of imports relative to the total of
domestic production, as compared with the proportion which might
reasonably be expected to rule between the two in the absence of
restrictions. In determining this proportion, the Member shall pay
/due regard to E/CONF.2/C.3/69
Page 3
due regard to the proportion prevailing during a previous representative
period; and to any special factors which may have affected or may be
affecting the trade in the product concerned.
4. Throughout this Section the terms "import restrictions" or "export
restrictions" include restrictions made effective through State-trading
operations.
Interpretative Notes
Sub-Paragraph 2 (a)
In the case of products which are basic to diet in the exporting country
and which are. subject to alternate annual. shortages and surpluses, the
provisions of this sub-paragraph do not preclude such export prohibitions or
restrictions as are necessary to maintain from year to year domestic stocks
sufficient to avoid critical shortages.
Sub-Paragraph 2 (c)
The term "agricultural and fisheries product, imported in any form."
means the product in the form in which it is. originally sold by its producer,
and such processed forms of the product as are so closely related to the
original product as regards utilization; that their unrestricted importation
would make the restriction on the original product ineffective.
Sub-Paragraph 3 (b)
The provisions of Article 20 (3) (b) with regard to prior consultation
would not prevent a Member which had given other Members a reasonable period
of time .for.such .consultation from introducing the restrictions at the date
intended. It is recognized that, in the case of consultation with regard to
import restrictions applied under sub-paragraph 2 (c) (ii),.the period of
advance notice provided would in some cases necessarily be relatively short.
Sub-Paragraph 3 (a)
The term "special factore" in sub-paragraph 3 (d) includes inter alia
changes in relative productive efficiency as between domestic and foreign
producers which may have occurred since the representative period.
Article 21-. I .:.* ..
Rguestrictions to Safeard the Balance of Payments -
1. The Members recognize that:
(a) t i8pemiriy terespeonsi tb ilitgy of each MWmbero-afeuad
its external financial position and to achieve and maintain stable
eqilbkmnts alance of payments; -
(b) mn hdverse balance of paymentms o mf ohne Meberay ave important
effects on the trade aind balance of paymen ts of otheroiMembers, i t
or resii-i lead to; the imposition- hb y teMmber of restrictions
actiongg iiternational trade;
/)(c the balance of. E/CONF.2/C.3/69
(c): the balance of payments of each Member is of concern to other
Members, and therefore it is desirable that the Organization should
promote mutual consultations and, where possible,.agreed action
consistent with this Charter for the purpose of correcting a
maladjustment in ithe balance of payments; and
(d) action taken to restore stable equilibrium in the balance of
payments should, so far as the Member or Members concerned find
possible, employ methods which expand rather than contract
international trade.
2. Notwithstanding the provisions of paragraph 1 of Article 20, any Member,
in order to safeguard its external financial position and balance of payments,
may restrict the quantity or value of merchandise permitted to be imported,
subject to the provisions of the following paragraphs of this Article.
3. (a) No Member shall institute, maintain or intensify import
restrictions under this Article except to the extent necessary
(i) to forestall the imminent threat of, or to stop, a
serious decline in its monetary reserves, or
(ii) in the case of a Member with very low monetary reserves,
to achieve a reasonable rate of increase in its reserves;.-
due regard being paid in either case to any special factors which may
be affecting the Member's reserves or need for reserves, including,
where special external credits or other rosources are available to it,
the need. to provide for the appropriate use of such creditos or
resources.
(b) A Member applying restrictions under sub-paragraph (a) shall
progressively relax and ultimately eliminate them as its external
financial position improves, in accordance with the provisions of
that sub-paragraph. This provision shall not be interpreted to mean
that a Member is required to relax. or remove such restrictions if
that relaxation or removal would thereupon produce conditions justifying
the intensification or institution respectively of restrictions under
sub-paragraph (a).
(c) Members undertake: .
(to i)plnot apy restrictions so asetobpreveaent blrsonas y
ortahe impttion of any descriptg??ds iion nimumofin mi
cczmial quantitiehes, tf whl iuf which would i?
regular channels of 4adetraor restr wouicti whi
prevent. the importationsof commercial amples, or prsevent
the iucati sucmportih maininus quantitie of a producst as
/ay be necessamry to E/CONF.2/C .3/69
Page 5
may be necessary to obtain and maintain patent, trademark,
copyright or similar rights under industrial or intellectual
property laws; and
(ii) to apply restrictions under this Article in such a way as to
avoid unnecessary damage to the commercial or economic
interests of any other Member including interests under
Articles 3 and 9.
4. (a) The Members recognize that in the early years of the Organization
all of them will be confronted in varying degrees with problems of
economic adjustmemt resulting from the war. During this period the
Organization shall, when required to take decisions under this Article
or under Article 23, take full account of the difficulties of post-war
adjustment and of the need which a Member may have to use import
restrictions as a step towards the restoration of equilibrium in its
balance of payments on a sound and lasting basis.
(b) The Members recognize that, as a result of domestic policies
directed toward the fulfilment of a Member's obligations under
Article 3 relating to the achievement and maintenance of full and
productive employment and large and steadily growing demand or its
obligations under Article 9 relating to the reconstruction or
development of industrial and other economic resources and to the
raising of standards of productivity, such a Member may experience
such pressure on its monetary reserves as to Justify restrictions
under sub-paragraph 3 (a) of this Article.
Accordingly:
(1) No Member shall be required to withdraw or modify
restrictions on the ground that a change in such policies
would render unnecessary the restrictions which it is
applying under this Article.
(ii) Any Member applying import restrictions under this Article
may determine the incidence of the restrictions on imports
of different products or classes of products in such a way
as to give priority to the importation of those products
which are more essential in the light of such policies.
(c) Members undertake, in carrying out their domestic policies, to
pay due regard to the need for restoring equilibrium in their balance
of payments on a sound and lasting basis and to the desirability of
assuring an economic employment of productive resources.
/5. (a) Any Member E/CONF.2/C.3/69
Page 6
5. (a) Any Member which is not applying restrictions under this Article,
but is considering the need to do so, shall, before instituting such
restrictions (or, in circumstances in. which prior consultation is
impracticable, immediately after doing so), consult with the Organization
as to the nature of its balance-of-payments difficulties, alternative
corrective measures which may be available, and the possible effect of
such measures on the economies of other Members. No Member shall be
required in the course of consultations under this sub-paragraph to.
indicate in advance the choice or timing of any particular measure
which it may ultimately determine to adopt.
(b) The Organization may at any time invite any Member which is
applying import restrictions under this Article to enter into such
consultations with it, and shall invite any Member. substantially
intensifying such restrictions to consult within thirty days. A Member
thus invited shall participate in such discussions. The Organization
may invite any other Member to take part in these discussions, Not
later then two years from the day on which this Charter enters into
force, the Organization shall review all restrictions existing. on that
day and still applied under this Article at the time of the review.
(c) Any Member may consult with the Organization with a view to
obtaininig the prior approval of the Organization for restrictions which
the Member proposes, under this Article, to maintain, intensify.or
institute, or for the maintenance, intensification or institution of
restrictions under specified future conditions. As a result of such
consultations, the Organization may approve in advance the maintenance,
intensification or institution of restrictions. by the Member in question
insofar as the general extent, degree of intensity and duration of the
restrictions are concerned. To the extent to which such approval has
been given, the requirements of sub paragraph (a) of this paragraph
shall be deemed to have been fulfilled, and the action of the Member
applying the restrictions .shall not be open, to challenge under
sub-paragraph (d) of this paragraph on the ground that such action is
inconsistent with the provisions of sub-paragraphs 3 (a) and 3 (b) of
this Article.
(d) Any Member which considers that another Member is applying:
restrictions under this Article inconsistently with paragraph 3 or 4 of
this Article, or with Article 22 (subject to the provisions of .Article 23)
may bring the matter for discussion to the Organization; and the Member
applying the restrictions shall participate in the discussion. The
Organization, if it is satisfied that there is a prima facie case that
/the trade of the E/CONF .2/C .3/69
Page 7
the trade of the Member initiating the procedure is adversely affected,
shall submit its view to the parties with the aim of achieving a
settlement of the matter in question which is satisfactory to the
parties and to the Organization. If no such settlement is reached and
if the Organization determines that the restrictions are being applied
inconsistently with paragraph 3 or 4 of this Article or with Article 22
(subject to the provisions of Article 23), the Organization shall
recommend the withdrawal or modification of the restrictions. If the
restrictions are not withdrawn or modified in accordance with the
recommendation of the Organization within sixty days, the Organization
may release any Member from specified obligations under this Charter,
towards the Member applying the restrictions.
(e) In consultations between a Member and the Organization under this
paragraph there shall be full and free discussion as to the various
causes and the nature of the Member's balance-of-payments difficulties.
It is recognized that premature disclosures of the prospective
application, withdrawal or modification of any restriction under this
Article might stimulate speculative trade and financial movements which
would tend. ?o defeat the purposes of this Article. Accordingly., the
Organization shall make provision for the observance of the utmost
secrecy in the conduct of any consultation.
6. If there is a persistent and widespread application of import restrictions
under this Article, indicating the existence of a general disequilibrium
which is restricting international trade, the Organization shall initiate
discussions to consider whether other measures might be taken, either by those
Members whose balances of payments are under pressure or by those Members
whose balances of payments are tending to be exceptionally favourable, or by
any appropriate inter-governmental organization, to remove the underlying
causes of the disequilibrium. On the invitation of the Organization, Members
shall participate in such discussions,
Interpretative Note to Article 21
Consideration was given to the special problems that might be created
for Members which, as a result of their programes of full employment,
maintenance of high and rising levels of demand and economic development, find
themselves.faced with a high level of demand for imports, and in consequence
maintain quantitative regulation of their foreign trade. It was considered
that the present text of Article 21 together with the provision for export
controls in certain parts of the Charter, e.g. in Article 43, fully meet the
position of these economies.
/Article 22 E/CONF.2/C .3/69
Page 8
Article 22
Non-discriminatory Administration of Quantitative Restrictions
1. No prohibition or restriction shall be applied by any Member on the
importation of any product of any other Member country or on the exportation
of any product destined for any other Member country, unless the importation
of the like product of all third countries or the exportation of the like
product to all third countries is similarly prohibited or restricted.
2. In applying import restrictions to any product, Members shall aim at a
distribution of trade in such product approaching as closely as possible to
the shares which the various Member countries might be expected to obtain
in the absence of such restrictions, and to this end shall observe the
following provisions:
(a) wherever practicable, quotas representing the total amount of
permitted imports (whether allocated among supplying countries .or not)
shall be fixed, and notice given of their amount in accordance with
paragraph 3 (b) of this Article;
(b) in cases in which quotas are not practicable, the restrictions may
be applied by means of import licences or permits without a quota;
(c) Members shall not, except for purposes of operating quotas
allocated in accordance with sub-paragraph (d) of this paragraph, require
that import licences or permits be utilized for the importation of
the product concerned from a particular country or source;-
(d) in cases in which a quota is allocated among supplying countries,
the Member applying .the restrictions may seek agreement. with. respect. to
the allocation of shares in the quota with all other Members having at
substantial interest in supplying the product concerned. In cases in.
which this method is not reasonably practicable, the Member concerned
shall allot to Member countries having a substantial interest in
supplying the- product, shares based upon the proportions, supplied by
such Member countries during a previous representative period, of the
total quantity or. value of. imports of the product, due account being
taken of any special factors which may have affected or may be affecting
the trade in the product. No conditions or formalities shall be imposed
which would prevent any Member from utilizing fully the share.of any such
total quantity or value which has been allotted to it, subject to
importation being made within any prescribed period to which the quota
may relate."- -
3.(a) In cases in which import licenses are issued in connection with.
import restrictions, the Member applying.the restrictions shall provide,
upo the request of any Member having an interest in the trade in the
/product concerned, E/CONF.2/C .3/69
Page 9
product concerned, all relevant information concerning the
administration of the restriction, the import licenses granted over a
recont period and the distribution of such licenses among supplying
countries; Provided that there shall be no obligation to supply
information as to the names of importing or supplying enterprises,
(b) In the case of import restrictions involving the fixing of quotas,
the Member applying the restrictions shall give public notice of the
total quantity or value-of the product o? products which will be
permitted to be imported during a specified future period and of any
change in such quantity or value. Any supplies of the product in question
which were en route at the time at which public notice was given shall
not be excluded from entry; Provided that they may be counted, so far as
practicable, against the quantity permitted to be imported in the period
in question, and also, where necessary, against the quantities
permitted to be imported in the next following period-or periods, and
Provided further that if any Member customarily exempts from such
restrictions products entered for consumption or withdrawn from
warehouse for consumption during a period of thirty days after the day
of such public notice, such practice shall be considered full compliance
with this sub-paragraph.
(c) In the case of quotas allocated among supplying countries the
Member applying the restriction shall promptly inform all other Members
having an interest in supplying the product concerned of the shares in
the quota currently allocated, by quantity or value, to the various
supplying countries and shall give public notice thereof.
(d) If the Organization finds, on request from a Member, that the
interests of that Member would be seriously prejudiced by the necessity
of complying in relation to certain .products with the obligation of
sub-paragraph (b).and the obligation under sub-paragraph (c) of this
paragraph to give public notice, by reason of the fact that a large
part of its imports of such products is supplied by non-Members, the
Organization shall release such Member from such obligations to the
extent and for such time as it finds necessary to prevent such prejudice.
Any request made by a Member pursuant to this sub-paragraph shall be
acted upon promptly by the Organization.
4. With regard to restrictions applied in accordance with paragraph 2 (d)
of this Article or under paragraph 2 (c) of Article 20, the selection of a
representative period for any product and the appraisal of any special factors
affecting the trade in the product shall be made initially by the Member
/applying the restriction; E/CONF.2/C.3/69
Page 10
applying the restriction; Provided that such Member shall, upon the request
of any other Member having a substantial interest in supplying that product
or upon the request of the Organization, consult promptly with the other
Member or the Organization regarding the need for an adjustment of the
proportion determined or of the base period selected or for the re-appraisal
of the special factors involved, or for the elimination of conditions,
formalities or any other provisions established unilaterally upon the
allocation of an adequate quota or its unrestricted utilization.
5. The provisions of this Article shall apply to any tariff quota instituted
or maintained by any Member and, insofar as applicable, the principles of
this Article shall also extend to export restrictions.
Interpretative Notes
Paragraphs 2((d) and 4
The term "special factors" as used in this Article includes inter alia
the following changes as between the various foreign producers which may have
occurred since the representative period:
(i) changes in relative productive efficiency;
(ii) existence of new or additional ability to export; and
(iii) reduced ability to export.
Sub-Paragraph 3(b)
The first sentence of sub-paragraph 3 (b) of Article 22 is to be.
understood as requiring the Member in all cases to give not later than the
beginning of the relevant period public notice of quotas fixed for a specified
future period, but as permitting a Member, which for urgent balance of
payments reasons is under the necessity of changing the quota within the
course of a specified period, to select the time of its public notification
of the change. This in no way affects the obligation of a Member under
sub-paragraph 3 (a) where applicable. |
GATT Library | rg916ys0579 | Articles 23 and 24 : (Text approved in second reading) | United Nations Conference on Trade and Employment, March 17, 1948 | Third Committee: Commercial Policy | 17/03/1948 | official documents | E/CONF.2/C.3/93 and E/CONF.2/C.3/89/ADD.3-95 | https://exhibits.stanford.edu/gatt/catalog/rg916ys0579 | rg916ys0579_90190211.xml | GATT_145 | 2,683 | 17,271 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE F/CONF.2/C.3/93
ON DU 17 March 1948.
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISHisH
RD .TMMIHIMEli:OMMERCIAL WILLICY
ARTICLIES 23 AID 24
(Text approved in Second Reading)
Article 23
Exceptions to the Rule of Non-Discrimination
1. (a) The Members recognize that the aftermath of the war has brought
difficult problems of' oconomic adjustment which do not permit the
immediate full achievement of non-discriminatory administration of
quantitative restrictions and therefore require the exceptional
transitional period arrangements set forth in this paragraph.
(b) AMember applying reatrictions under Article 21 may, in the use
of such restrictions, deviate from the provisions of Article 22 in a
manner having equivalent effect to restrictions on payments and
transfers for:-current international transactions which that Member may."
at that time apply under Article XIV of the Articles of Agreement of
the Intermational Monetary Fund, or under an analogous provision of a
special exchange agreement pursuant to Article 24, paragraph 6.
(c) A Member which is applying restrictions under Article 21 and which
'was applying import restrictions to safeguard its balance of payments on
1 March 1948 in a manner which deviated from the rules of
non-discrimination set forth in Article 22 may, to the extent that' such
deviation 'would not have been covered on that date by sub-paragraph (b)
of this paragraph, continue so to deviate, and may adapt such deviation
to changing circumstances.
(d) Any Member which before 1 July 1948 has signed the Protocol of
Provisional Application agreed upon at Geneva on 30 October' 19147; and
which by such signature has provisionally accepted the principles of
paragraph 1of Article 23 of the Draft Charter submitted to the Havana.
Conference by the Preparatory Committee, may elect, by written notice to
the Interim Coimission or to the Organization before 1 January 1949,
to be governed by the provisions of Annex [ ], which embodies
such principles, .in 'lieu of the provisions of sub-paragraphs (b) and (c)
. . /of this paragraph. E/CONF.2/C.3/93
Page 2
of this paragraph. Annex [ ] shall not be applicable to any Member
which does not so elect. Sub-paragraphs (b) and (c) of this paragraph
shall not be applicable to any Member which does so elect.
(e) The policies applied in the use of import restrictions under
sub-paragraphs (b) and (c) of this paragraph or under Annex [ ] in the
postwar transitional period shall be designed to promote the maximum
development of multilateral trade possible during that period and to
expedite the attainment of a balance of payments position which will
no longer require resort to Article 21, or to transitional exchange
arrangements.
(f) A Member may deviate from the provisions of Article 22 pursuant
to sub-paragraphs` (b) -or- (c). of-this paragraph or pursuant to
Annex [ ] only so long as it is availing itself of the post-war .
transitional period arrangements under Article XIV of the Articles of
Agreement of the International Monetary Fund, or of an analogous::
provision of a special exchange agreement under Article 24, paragraph 6.
(g) Not later than 1 March 1950 (three years after the date on which
the International Monetary Fund began operations) and in each year
thereafter, the Organization shall report on any action. still being
taken by Members under.sub-paragraphs (b) and (c) of this paragraph
or under.Annex [ ]. In March 1952, and in each-.year' thereafter,
any Member still entitled to take action. under the provisions of-
sub-paragraph (c) or of Annex [ ] shall consult the Organization
as to any deviations from:Article 22 still in force pursuant to
such provisions and as. to its continued resort to such provisions;
After 1 March 1952 any action under Annex [ ] going beyond the
maintenance in force of deviations on which consultation has taken
place and which the Organization has not found unjustifiable, or their
adaptation -to changing: circumstances, shall be subject to any limitations
of a general character which the Organization may prescribe in the
light of the Member's circumstances.
(h) The Organization may, if it deems' such action necessary in
exceptional circumstances,.make representations' to any Member entitled
to take. action under: the provisions of sub-paragraph (c) that
conditions are favourable for the termination of any particular
deviation from the. provisions of Article 22, or for the general -'-
abandonment;of deviations, under the provisions of that sub-paragraph.
After 1 March 1952, the Organization may make.: such representations in
exceptional-circumstances, to any Member entitled to take action under
Annex [ ]. The Member shall be given a suitable time to reply to such
representations. If the Organization finds that the Member persists in
/unjustifiable E/CONF.2/C.3/93
Page 3
unjustifiable deviation from the provisions of Article 22, the Member
shall, within sixty days, limit or terminate such deviations as the
Organization may specify.
2. Notwithstanding the termination of the Member's transitional period
arrangements pursuant to sub-paragraph 1 (f) of this Article, a Member which
is applying import restrictions under Article 21 may, with the consent of
the Organization, temporarily deviate from the principles of Article 22 in
respect'of a small part of its trade where the benefits to the Member or
Members concerned. substantially outweigh any injury which may result to the
trade of other Members.
3. The provisions of Article 22 shall not preclude restrictions in accordance
with Article 21 which either
(a) are applied against imports from other countries,. but. not as among
themselves, by a group of territories having a common quota in the
International Monetary Fund, on condition that such restrictions are in
all other respects consistent with Article 22, or
(b) assist, in. the period until 31 December 1951, by measures not
involving substantial departure from the provisions of Article 22,
another. country whose economy has been disrupted by war.
4. A Member applying import restrictions under Article 21 shall not be
precluded by this Section from applying measures to direct its exports in such
a manner as to increase its earnings of currencies which it can use without'
deviation from Article 22.
5. A Member shall not be precluded by this Section from applying
quantitative restrictions:
(a) having equivalent effect to exchange restrictions authorized
under Section 3 (b) of Article VII of the Articles of Agreement of
the International Monetary Fund; or
(b) under the preferential arrangements provided for in Annex A of this
Charter, pending the outcome of the negotiations referred to therein.
Interpretative Note to Sub-paragraph 1 (g) of Article -23
The provisions of paragraph 1 (g) shall not authorize the Organization
to require that the procedure of consultation be followed for individual
transactions unless such transaction is of so large a scope as to constitute
an act of general policy. In that event, the Organization shall, if the Member
so requests, consider the transaction, not individually, but in relation to the
Member`s policy regarding imports of the product in question taken as a Whole.
Interpretative Note to Paragraph 2 of Article 23
One of the situations contemplated in paragraph 2 is that of a Member
holding balances acquired as a result of current transactions which it finds
itself unable to use without a measure of discrimination.
./ANNEX F/COIF.2/ /C .3/93
Page 4 ANNEX [ ]^
(pAplicable to Members who so elect,i n accorance withS paragraph 1 d&) of.
Article 23, in lieu of paragraphs 1 (b) ard I (c) of Article 23,)
1. (;a) AMmember appyiang import restrictions under Article 21 ay
relax such restrictions in a maner which departs from the provisions
of Article 22 to the extent necessary to obtain additional- imports
above the maximum total of imports which it could afford in the light
of the requirements of paragraphs 3 (a) and 3 (b) of Article 21 if
Its restrictions were fully consistent with Article 22; Provided that
(i) levels of delivered prices for products so imported are not
established substantially higher than those. ruling for
comparable goods regularly available from other Members
and that any excess of such price levels for products so
- imported is progressively reduced over a reasonable period;
(ii) the Member taking such action does not do so as part
of any arrangement by which the gold or convertible
currency which the Member currently receives directly or
indirectly from its exports to other Members not party to
the arrangement is appreciably reduced. below the level -it
could otherwise have been reasenably expacted to attain;
(iii) such action does not cause unnecessary damage to the
commercial or economic interests of any other Member,
including interests under Articles 3 and 9. - -
(b) Any Member taking action under this paragraph shall observe-
the principles of" sub-paragraph (a) of this paragraph. A Member
shall desist from transactions which prove to be inconsistent with:-
that sub-paragraph but the Member shall not be required to satisfy-
itself, when it is not practicable to do so, that the- requirements of
that sub-paragraph are fulfilled in respect of individual transactions.
2. Any Member takIng action under paragraph 1 of this Annex shall keep the
Crganization regularly infomed regarding such action and shall provide such
available relevant information as the Organization may request.
3. If at any time the Organization finds that import restrictions are being
applied by a Member in a discriminatory manner inconsistent with the exceptions
provided for. under paragraph 1 of this Annex, the Member shall, within sixty
days,. remove the discrimination or modify it as specified by the Organization;
Provided that any action under paragraph 1 of this Annex, to the extent that it
has been approved by the Organization at the request 'of' a Member under a
procedure analogous to that of paragraph 5 (c) of Article 21, shall not be open
challenge - H ' *' ' i/to CJoen E/CONF.2/0.3/93
Page 5
to challenge under this Paragraph or under paragraph 5 (d) of Article 21 on
the ground that it is inconsistent with Article 22.
Interpretatove Note to Anex
It is understood that the fact that a Member is operating under the
provisions of Article 43 paragraph 1 (b) (i) does not preclude that Member
from operation under this Annex, but that the provisions of Article 23
(including this Annex) do not in any way limit the rights of Members under
Article 43, paragraph I (b) (i).
Article 24 :
Relationship with the International Monetary Funi
- and Exchange Arrangements
1. The 0rganization shall seek co-operation with the International Monetary
Fund to the end and the Organization and the Fund may pursue a co-ordlinated
policy with regard to exchange questions within the Jurisdiction of the Fund
a. questions of quantitative restrictions end other trade measures within
the Jurisdiction of the Organization.
2. In all cases in which the Organization is called upon to consider or'
deal with problems concerning monetary reserves, balance of payments or
foreign exchange arrangements, the Organitation shall consult fully with the
Internatioal Monetary Fund. In such consultation, the Organization shall
accept all findings of statistical and other facts presented by the
International Monetary Fund relating to foreign exchange, monetary reserves
and balance of payments, and shall accept the determination of the Fund as
to whether action by a Member in exchange matters is in accordance with the
Articles of Agreement of the International Monetary Fund, or with the terms
of a special exchange agreement between that Member and the Organization.
When the Organization, for the purpose of reaching its final decision
in cases involving the criteria set forth in paragraph 3 (a) of Article 21,
is examining a situation in the light of the relovent considerations under
all theo portinent provisions of Article 21, it shall accept deterrmination
of the Internatioal Monetary Fund as to what constitutes a serious decline
in the Member's monetary reserves, a very low level of its monetary reserves
or a reasonable rate of increase, in its monetary reserves, and as to the
financial aspects of'other matters covered in consultation in such cases.
3.. The Organization shall seek agreement with the International Monetary
Fund regarding procedures for consultation under paragraph 2 of this Article.
/Any such. E/CONF.2/C .3/93
Page 6
Any such agreement. other than informal arrangements of a temporary or
administrative character, shall be subject to confirmation by the Conference.
4. Members shall not, by exchange action, frustrate the intent of the
provisions of this Section, nor, by trade action, the intent of the provisions
of the Articles of Agreement of the International Monetary Fund.
5, If the Oganization considers, at any time, that exchange restrictions
on payments and transfers in connection with imports are being applied by a
Member in a manner inconsistent with the exceptions provided in this Section
for quantitative restrictions it shall report thereon to the International
Montary Fund.
6. (a) Any Member of the Organization which is not a member of the
International Monetary Fund shall, within a time to be determined by
the Organization after consultation with the International Monetary
Fund, become a member of the Fund, or, failing that, enter into a
special exchange agreement with The Organization. A Member of the
Organization which ceases to be a member of the International Monetary
Fund shall forthwith enter into a special exchange agreement with the
Organization Any special exchange agreement entered into by a Member
under this paragraph shall thereupon become part of -ts obligations
under this Charter.
(b) Such a special exchange agreement shall provide to the satisfaction
of the Organization that the objectives of this Charter will not be
frustrated as a rest of action in exchange matters by the Member in
question.
(c) The terms of any such agreement shall not impose obligations on
the Member in exchange matters generally more restrictive than those
imposed by the Articles of Agreement of the International Monetary
Fund on members of the Fund.
(d) No special exchange agreement shall be required of a Member so long
as it uses solely the currency of another Member and so long as neither
the Member nor the country whose currency is being used has exchange
restrictions. Nevertheless, if the Organization at any time considers
that the absence of a special exchange agreement may be permitting
action which tends to impair the purposes of any of the provisions of
this Charter, it may require the Member to enter into a special exchange
agreement in accordance with the provisions of this Article. A Member
of the Organization which is not a Member of the International
Monetary Fund and which has no special exchange agreement may be required
at any time to consult with the Organization on any exchange problem.
/7. A Member which El/CONF.2/C.3/93
Page 7
7. A Member which is not a member of the International Monetary Fund,
whether or not it has a special exchange agreement, shall furnish such
information within the general scope of Section 5 of Article VIII of the
Articles of Agreement of the International Monetary Fund as the Organization
may require in order to carry out its functions under this Charter.
8. Nothing in this Section shall preclude:
(a) the use by a Member of exchange controls or exchange restrictions
in accordance with the Articles of Agreement of the International
Monetary Fund or with that Member's special exchange agreement with the
Organization, or
(b) . the use by a Member of restrictions or controls on imports or
exports, the sole effect of which, additional to the effects permitted
under Articles 20, -21, 22 and 23, is to make effective such exchange
controls or exchange restrictions.
Interpretative Note to Paragraph 8
For example, a Member which, as part of its exchange control, operated
in accordance with the Articles of Agreement of the International Monetary
Fund, required payment to be received for its exports in its own currency
or in the currency of one or more members of the International Monetary Fund
would not thereby be deemed to be offending against Article 20 or Article 22.
Another example would be that of a Member which specified on an import licence,,
the country from which the goods might be imported for the purpose not of ;
introducing any additional element of discrimination in its Import licenses
but of enforcing permissible exchange controls. |
GATT Library | gr009sg8386 | Articles 40,41 and 43 : (Text approved in second reading) | United Nations Conference on Trade and Employment, February 17, 1948 | Third Committee: Commercial Policy | 17/02/1948 | official documents | E/CONF.2/C.3/61 and E/CONF.2/C.3/58-77/REV.1 | https://exhibits.stanford.edu/gatt/catalog/gr009sg8386 | gr009sg8386_90190161.xml | GATT_145 | 1,500 | 9,867 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/61
ON DU 17 February 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
tR,ACLESII 441 L: AND 43
(Text approved in second reading)
Article 40
Emergency Action ImpMioorts of Particular Products
1. (a) If, as a res ulf t ounforeseen devemenlopts and of the effect of
ta.bligatisoneincurred by a Member under or pursuant to this Chapter,
mcuding tariff concessions, aniSproduct is being -miorted into the
territory of that Member in such relatively increased quantities and under
such conditions as to cause or threaten serious injury to domestic
producers in that territory of like or directly competitive products, the
Member shall be free, in respect of such product, and to the extent and for
such time as may be necessary to prevent or remedy such injury, to suspend
the obligation in whole or in part or to withdraw or modify the concession
(b) If any product, which is the subject of a concession with respect
to a preference, is being imported into the territory of a Member in the
circumstances set forth in sub-paragraph (a) of this paragraph, so as to
cause or threaten serious injury to domestic producers of like or directly
competitive products in the territory of a Member which receives or received
such preference, the importing Member shall be free, if that other Member
so requests, to suspend the relevent obligation in whole or in part or to
withdraw or modify the concession in respect of the product, to the extent
and for such time as may be necessary to prevent or remedy such injury.
2. Before any Member shall take action pursuant to the provisions of
paragraph 1 of this Article, it shall give notice in writing to the
Organization as far in advance as may be practicable and shall afford the
Organization and those Members having a substantial interest as exporters of
the product concerned an opportunity to consult with it in respect of the
proposed action. When such notice is given in relation to a concession with
respect to a preference, the notice shall, name the Member which has requested
the action. In circumstances of special urgency, where delay would cause
damage which it would be difficult to repair, such action may be taken
provisionally without prior consultation, on the condition that consultation
/-shlla b -effecte- E/CONF.2/C .3/6
Page 2
shell be effected immediately after tak- I- such action.
3. (a) If agreeent among the interested members with respect to the action
is not reached, the Member which proposes to take or continue the action
shall, nevertheless, be free to do so, and it such action is taken or
continued, the affected Members shall then be free, not later than
ninety days after such action is taken, to suspend, upon the expiration
of thirty days from the day on which written notice of such suspension
is received by the Organization, the application to the trade of the
Member taking such action, or, in the case envisaged in paragraph 1 (b)
of this Article to the trade of the Member requesting such action, of
such substantially equivalent obligations or concessions under this
Chapter, the suspension of which the Organization does not disapprove.
(b) Notwithstanding the provisions of sub-paragraph (a) of this paragraph,
where action is taken under paragraph 2 of this Article without prior
consultation and causes or threatens serious injury in the territory of
a Member to the domestic producers of products affected by the action,
that Member shall, where delay would cause damage difficult to repair,
be free to suspend, upon the taking of the action and throughout the
period of consultation, such obligations or concessions as may be
necessary to prevent or remedy the injury.
4. Nothing in this Article shall be co??trued (a) to require any Members,
in connection with the withdrawal or modification by such Member of any
concession negotiated under Article 17, to consult with or obtain the agreement
of Members other than those Members which are parties to the General Agreement
on Tariffs and Trade, or (b) to authorize any such other Members, not parties
to that Agreement, to withdraw from or suspend obligations under this Charter
by reason of the withdrawal or modification of such concession.
lNTERPRETATIVE NOTE
Article 40
It is understood that any suspension, withdrawal or modification under
1 (a), 1 (b) and 3 (b) must not discriminate against imports from any Member,
and that such action should avoid, to the fullest extent possible, injury
to other supplying Member countries.
Article 41
Consultation
Each Member shall accord sympathetic consideration to, and shall afford
adequate opportunity for consultation regarding, such representations as may
be made by any other Member with respect to the operation of customs regulations
and formalities, anti-dumping and countervailing duties, quantitative and
/exchange E/CONF.2/C.3/61
Page 3
exchange regulations, internal price regulations, subsidies, practices and
regulations affecting the freedom of transit, state-trading operations,
sanitary laws and regulations for the protection of human, animal or plant
life or health and generally all matters affecting the operation of this Chapter
INTERPRETATIVE NOTE
Article 41
The Provisions for consultation require (subject to the exceptions
specifically set forth in the Charter) Members to supply to other Members,
upon request, such information as will enable a full and fair appraisal of
the matters which are the subject of such consultation, including the operation
of sanitary laws and regulations for the protection of human, animal or plant
life or health, and other matters affecting the operation of Chapter IV.
Article 43
General Exceptions to Chapter IV
1. Subject to the requirement that such measures are not applied in
a manner which would constitute a means of arbitrary or unjustifiable
discrimination between countries where the same conditions prevail, or a
disguised restriction on international trade, nothing in this Chapter shall be
construed to prevent the adoption or enforcement by any Member of measures
(a) (i) Necessary to protect public morals;
(ii) necessary to the enforcement of laws and regulations relating
to public safety;
(iii) necessary to protect human, animal or plant life or health;
(iv) relating to the importation or exportation of gold or silver;
(v) necessary to secure compliance with laws or regulations
which are not inconsistent with the provisions of this
Chapter, including those relating to customs enforcement, the
enforcement of monopolies operated under Section D of this
Chapter, the protection of patents, trademarks and copyrights,
and the prevention of deceptive practices;
(vi) relating to the products of prison labour;
(vii) imposed for the protection of national treasures of artistic,
historic or archaeological value;
(viii) relating to the conservation of exhaustible natural resources
if such measures are made effective in conjunction with
-; restrictions on domestic production or consumption;
(ix) undertaken in pursuance of any inter-governmental agreement
relating solely to the coonservation f fisheries resources,
/migratory birds E/CONF.2/C.3/61
Page 4
migratory birds and wild animals; Provided that those
measures are subject to the requirements of paragraph 1 (d)
of Article 67;
(x) undertaken in pursuance of the terms of inter?governmental
commodity agreements concluded in accordance with the
provisions of Chapter VI; or
(xi) involving restrictions on exports of domestic materials
necessary to assure essential quantities of such materials
to a domestic processing industry during periods when the
domestic price of such materials is held below the world price
as part of a governmental stabilization plan; Provided that
such restrictions shall not operate to increase the exports
of or the protection afforded to such domestic industry, and
shell not depart from the provisions of this Chapter relating
to non-discrimination;
(b) (i) Essential to the acquisition or distribution of products in
general or local short supply; Provided that any such
measures shall be consistent with any general inter-governmental
arrangements directed to an equitable international distribution
of such products or, in the absence of such arrangements, with
the principle that all Members are entitled to an equitable
share of the international supply of such products;
(ii) essential to the control of prices by a Member country
undergoing shortages subsequent to the war; or
(iii) ossential to the orderl liquidation of temporary surpluses
of stocks owned or controlled by the government of any Member,
or of industries developed in any Member country owing to the
exigencies of the war, which it would be uneconomic to maintain
in normal conditions; Provided that such measures shall not
be instituted by any Member, except after consultation with
other interested Members with a view to appropriate
international action.
2. Measures instituted or maintained under paragraph 1 (b) of this Article
which are inconsistent with the other provisions of this Chapter shall be
removed as soon as the conditions giving rise to tmhe have ceased, and in any
event not later than at a date to be specified by the Organization; Provided
that such date may be deferred for a further period or periods, with the
concurrence of the Organization, either generally or in relation to particular
measures taken by Members in respect of particular products. |
GATT Library | ty875jy6338 | Barriers to the International Transport of Goods | Interim Commission for the International Trade Organization, September 14, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 14/09/1948 | official documents | ICITO/1/23 and ICITO/1/17-27 | https://exhibits.stanford.edu/gatt/catalog/ty875jy6338 | ty875jy6338_90180039.xml | GATT_145 | 633 | 4,188 | INTERIM COMMISSION COMMISSION INTERIMAIRE DE UNRESTRICTED
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE ICITO/1/23
TRADE ORGANIZATION DU COMMERCE 14 September 1948
ORIGINAL: ENGLISH
Executive Committee
BARRIERS TO THE INTERNATIONAL TRANSPORT OF GOODS
1. The following paragraphs were circulated informally on
8 June 1949 to members of the Executive Committee who were
present at the Annecy meeting of the Contracting Parties to
the General Agreement on Tariffs and Trade.
" In October 1947, the International Chamber of Commerce
"submitted to the Secretary-General of the United Nations
"a report on barriers to the international transport of
"goods which had been drawn up by a committee of experts
"and approved in June 1947 by the I.C.C. Congress at
"Montreux. The Report contained 12 recommendations
"concerning matters in the following categories:
" 1) Documents required in the international transport
" of goods;
" 2) Consular, customs and public health formalities and
" documents required by the customs;
" 3) The regulation of shipping;
" 4) Matters of wider scope, such as commodity alloca-
" tions, priorities and licences.
" This Report was referred by the Secretary-General to
" the Transport and Communications Commission. The Third
" Session of the Commission, in March 1949, adopted a
" resolution recognizing that many of the recommendations
" proposed by the I.C.C. relate to matters which are already
" under consideration by various specialized agencies and
" other organizations, and recommending to the Economic
" and Social Council that the Secretary.-General be instructed
" to transmit the IC.C. Report (E/C.2/53), and a Secre-
" tariat Report relating thereto (E/CN.2/49) , to the
" Members of the United Nations with the request that they
" report their views on certain subjects, particularly
" those relating to customs documents and formalities, to
" the Interim Commission of the I.T.O. if it will accept
" the responsibility of dealing with the matter or, if it
" appears after enquiry by the Secretary-General that it
" will not, to the Secretary-General of the United Nations.
" This resolution will be submitted to the Ninth Session
" of the Economic and Social Council, which is to be held
" in Geneva in July, and the Assistant Secretary-General for
" Economic Affairs has enquired whether the Interim Com-
" mission will be prepared to make a formal statement in
" this regard should it be requested by the Council." ICITO/1/ 23
Page 2
2. By Ietter dated 31 August 1949 the Department of Economic
31 ust me
Affais Qntc onn ncited N&tios has advised that the Ecohomnd
Social Council at its Ninth Session in Geneva adopted the
following resolution
The Economic and Social Council
Transmits to the Membts of the United Nations the
"Seootaliat'so rlepoil barriers to the Internatipna
"transiort of goods Td the report of the Internattonal
"Chamber of Commerce and
Invites theem'3sof the United Nations to.transmit
.to the Secretary-General their views on the recommenda-
"tions of the International Chamber of Commerce report
"nu,ered 1 to 1),2 (with certain exceptions) 3)
" Instructs the Secretary-General:
r To report trTo the next session of the ,nsport and
"OommunicationsCommission and oto the Interim Commission d
"the International Trade Organization on the results of the
"enquiry teGove7.es; and
" 2. To draw the attention of the Member Governments to
"the work already done in the field by the International
"Civil Aviation Organization in its International
"Standards and Recommended Practices on Facilitation of
Int ."national Air Transport.
1) See E/CN2/49
2 se E/C 0/5z
3) The exceptions are those recommendation's or parts thereof
relattg to:
Public He-alth formalities falling within the purview of
the World Health Organization
_.oiable air consignment note - now being dealt with by
the International Civil Aviation Organization (ICAO)
Maritimem Tnnnage Measureent - covenmred in Resoluti No. 1
of the chird session of the Transcport and Communiations
Commission |
GATT Library | km659sq8075 | Belgian Amendments | United Nations Conference on Trade and Employment, January 9, 1948 | Third Committee: Commercial Policy and Sub-Committee F (Articles 21, 23 and 24) | 09/01/1948 | official documents | E/CONF.2/C.3/F/W.6 and E/CONF.2/C.3/F/W.1-31/REV.2 | https://exhibits.stanford.edu/gatt/catalog/km659sq8075 | km659sq8075_90190566.xml | GATT_145 | 637 | 4,198 | United Nations Nations Unies
RESTRICTED
CONFERENCE CONFERENCE
ON DU E/C0NF.2/C.3/F/W.6
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI9 r
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE F (ARTICLES 21, 23 AND 24)
A.
A new paragraph 1 should be inserted before the present paragraph 1:
I. (a) The Members recognize that it is of vital importance to,
and primarily the responsibility of, each Mmber to safeguard
its external financial position and. to achieve a stable
equilibrium of its balance of payments.
(b) The Members recognize that the safeguarding of the
external financial position and balance of payments of
each Memberber is also of common concern to all Members and .
that therefore co-operation between Members for the
safeguarding of the external financial position of each
Member is one form of the concerted action necessary to
achieve the general purpose and the objectives of this
Charter and the fulfilment of the obligations of the
Members under Chapter II and Articlas 9 and 10 of this
Charter.
(c) The-Members recogaize that subject to Article 24,
Section 1, the Organization should promote and facilitate
in the commercial field concerted action between the Members
for the safeguarding of the external financial position and
balance of payments of individual Members.
(d) The Orgatiization shall be guided in its action taken
under Articles 21 to 24 by the principles set forth in
sub-paragraphs a, b and c of this section.
B.
The present paragraphs 1, 2, 3, 4 and 5 of Article 21 should be
numbered respectively 2, 3, 4, 5 and 6.
C.
Amend the present paragraph 3 (b) (i) as follows:
- (i) no Member shall be required to withdraw or modify restrictions
on the ground that a change in such policies would render
/unnecessary the E/CONF.2/C 3/F/W.6
Page 2
unnecessary the restrictions which it is applying under this
Article; provided that
(A) the Mumber shall give full consideration to any
recommendations. made by the Organization that changes
in the timing, scope or means of carrying out the above-
mentioned domestic policies might permit avoidance of
certain restrictions, and thus facilitate concerted action
of Members aimed at solving the balance of payments problems
of the Member concerned without limiting its right freely to
determine its policies;
(b) when there is a serious and imminent threat of a
substantial and wide-spread disequilibrium in international
trade and payments, the Members undertake to endeavour
temporarily to alter their national policies-in such a
manner as the Organization deems indispensable to avoid
such disequilibrium.
D.
The present paragraph 3 (c) (iii) to be modified as follows:
(iii) .To apply restrictions under this Article in such a way as
to avoid unnecessary damage to the commercial interests,
economic development and social policies of any other
Member.
Article 23 I (b) to be replaced by the following text:
(b) According, a Member applying restrictions under Article 21
may depart from the provisions of Article 22 to the extent necessary
to obtain additional imports, provided that
(i) the Member does not pay for such additional imports a
price substantially higher than the price prevailing in
other markets for comparable goods;
(ii) the Member obtains these additional imports either against
credits it holds on another Momber, or against goods,
subject to (iii) below;
(iii) this action is not part, of an arrangement which would
reduce substantially the volume of goods which In a more
normal period would have been offered for sale to
(a) Member countries offering to buy these goods at
comparable prices against gold or convertible currencies;
/(b) Member E/CONF.2/C. 3/F1W. 6
Page 3
(b) Member countries offering to buy these goods at
comparable prices when a purchase of these goods would
reduce sizable credits they have accumulated on the
Member.
(iv) such action does not cause unnecessary damage to the
commercial or economic interests of any other Member. |
GATT Library | qr358vt4645 | Belgium: Amendment to the Report of Sub-Commitee C (E/CONF.2/C .3/38) | United Nations Conference on Trade and Employment, February 4, 1948 | Third Committee: Commercial Policy and Sub-Committee C: General Commercial Provisions | 04/02/1948 | official documents | E/CONF.2/C.3/38/Add.2 and E/CONF.2/C.3/38-57 | https://exhibits.stanford.edu/gatt/catalog/qr358vt4645 | qr358vt4645_90190134.xml | GATT_145 | 173 | 1,275 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/38/
Add.2
ON DU 4 February 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ENGLISH ORIGINAL: FRENCH
TEIRD COMMITTEE: COMMERCIAL POLICY
SUB-CoMMITTEE C - GENERAL COMMERCIAL PROVISIONS
BELGIUM: AMENDMENT TO THE REPORT OF SUB-COMMITEE C
(E/CONF.2/C .3/38)
ARTICLE 32
The Belgian delegation has the honour to proposed that paragraph 8
of Article 32 appearing in the Report of Sub-Committee C be deleted.
The French text of Article 32 is unambiguous and makes it clear that
transportation charges do not fall within the purview of the Article.
Paragraph 8 is designed to remove certain doubts produced by the English
wording of Article 32. In the opinion of the Belgian delegation, the
ambiguity should be removed not by inserting a paragraph in the Article but
rather by an interpretative note or an appropriate alteration in the English
text.
The Belgian delegation will be willing to accept any note to or
alteration in the English text which may be deemed advisable in order to
clear up the possible ambiguity. |
GATT Library | kh272wz6833 | Belgium: Revised Amendment to the Report of Sub-Committee C (E/CONF.2/C.3/38) | United Nations Conference on Trade and Employment, February 6, 1948 | Third Committee: Commercial Policy and Sub-Committee C: General Commercial Provisions | 06/02/1948 | official documents | E/CONF.2/C.3/38/Add.2/Rev.1 and E/CONF.2/C.3/38-57 | https://exhibits.stanford.edu/gatt/catalog/kh272wz6833 | kh272wz6833_90190135.xml | GATT_145 | 133 | 1,062 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/38/
ON DU Add. 2/Rev.1
6 February 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE C - GENERAL COMMERCIAL PROVISIONS
BEIGIUM: REVISED AMENDMENT TO THE REPORT OF SUB-COMMITTEE C
(E/CONF.2/C.3/38)
ARTICLE 32
After further consideration the delegation of Belgium has the honour
to present the following revised proposal with regard to paragraph 8 on
Article 32 (See document E/CONF.2/C.3/38/Add.2):
1. Paragraph 8 should be deleted.
2. The following Interpretative Note should be appended to
Article 32:
"Paragraphs 3, 4 and 5
The word 'charges' as used in the English text of
paragraphs 3, 4 and 5, shall not be deemed to include
transportation charges."
The delegation of Belgium hopes that this revised proposal will be
acceptable to Committee III. |
GATT Library | mh235gg2321 | Brazil: proposal on Article 21 | United Nations Conference on Trade and Employment, February 7, 1948 | Third Committee: Commercial Policy and Sub-Committee F (Articles 21, 23 and 24) | 07/02/1948 | official documents | E/CONF.2/C.3/F/W.24 and E/CONF.2/C.3/F/W.1-31/REV.2 | https://exhibits.stanford.edu/gatt/catalog/mh235gg2321 | mh235gg2321_90190587.xml | GATT_145 | 226 | 1,502 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPOI
RESTRICTED
E/CONF. 2/C. 3/F/W.24
7 February 1948
ORGINAL:ENGLISH
THIRD COMMlTTEE: COMMERCIAL POLICY
SUB-COMMITTEE F ON ARTICIES 21, 23 AND 24
BRAZIL: PROPOSAL ON ARTICLE 21
The delegation of Brazil proposes the following change in Article 21:
To transfer sub-paragraphe (ii) and (iii) of paragraph 3 (c) to
paragraph 2, including them as a new sub-paragraph (c) of paragraph 2, which
would read:
"c) Members undertake:
(i) (identical with paragraph 3 (c) (ii))
(ii) (identical with paragraph 3 (c) (iii))."
As a consequential change, sub-paragraph (c) of paragraph 3 of Article 21
(which is a limitation specifically on domestic policies) would read:
(o) "Members undertake, in carrying out their domestic policies, to
pay due regard ... of productive resources".
Justification
Sub-paragraphs (ii) and (iii) of paragraph 3 (c) are limitations on any
kind of quantitative restriction irrespective of whether the quantitative
restriction is a consequence of the domestic policies referred to in
paragraph 3 (c) or of other causes. Consequently these limitations should
not be placed in the Charter so as to suggest that they apply only to
quantitative restrictions which are the consequence of domestic policies.
This might be suggested by the present drafting where these limitations appear
as part of a paragraph which begin with a reference to domestic policies. |
GATT Library | zy476pj6937 | Brazilian request for withdrawal of concessions - schedule III | General Agreement on Tariffs Trade, August 24, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 24/08/1948 | official documents | GATT/CP.2/W.9 and GATT/CP.2/W.1-W.14 CP.2/W.1/Rev.1,CP.2/W.9/Corr.1,W.9/Add.1 | https://exhibits.stanford.edu/gatt/catalog/zy476pj6937 | zy476pj6937_91870460.xml | GATT_145 | 465 | 2,970 | RESTRICTED
GATT/CP.2/W.9
24 August 1948
ORIGINAL: ENGLISH
GENERAL AGREEIfENT ON TARIFFS &' TRADE
Contracting Parties
Second Session
BRAZILIAN REQUEST FOR
WITHDRAWAL OF CONCESSIONS - SCHEDULE III
When authorizing the provisional application of the
General Agreement on Tariffs and Trade, the Brazilian
Government decided to withdraw the following concessions
shown on Schedule III Brazil:-
98/3 Milk, in powder........ 1,635,986
545/3 Calendars and almanacks
(part) . . .......... . . . 1,498,539
1530 ex Penicillin pure.. 054
As the contracting parties are aware, the rates
shown in Schedule III for tariff concessions given by
Brazil to the other signatories of the GATT were, in
the first place increased by 4O% in order to cover the
monetary depreciation which resulted in a substantial
reduction of the level of the Brazilian tariffs.
The National Congress of Brazil have, however,
just authorized the Executive Authorities to reduce
from 40% to 10% or 20% the adjustment on some of the
items so as to give a more favourable tariff treatment
and to conform more closely to the ultimate aims of GATT.
As may be seen from the enclosed Schedules, a
reduction of the adjustment on some of the articles
represents a substantial benefit in favour of the -
signatories of GATT, since they will receive additional
considerable concessions covering a large part of the
total imports of Brazil.
It should be understood that geese additional
concessions are to be regarded as temporary the Brazilian
Government reserving the right at any time to
increase th3 rates up to the amounts shown on Schedule
IT! -Brazil.
The Brazilian Govcrnmcnt, however, undertakes
to enter into negotiation with the UNS A. and the
United Kingdom in April next with a view to making
certain of these tariff concessions binding, in
order to compensate for the withdrawal of the tariff
concessions mentioned above which were agreed to in
direct negotiation with the U.S.A. and the United
Kingdom during the Geneva negotiations of 1947. GATT/CP.2/W.9
page 2
No loss is therefore likely to be incurred
by the Contracting Parties since the decision of
the Brazilian Government to grant additional concessions
will represent an appreciable contribution to the
carrying out of the main objective of the General
Agreement on Tariffs and Trade. In fact the
waiving of the right to increase the tariffs by
40% on some items of considerable importance in
tho Brazilian import trade involves a benef it
vastly superior to the loss caused by the withdrawal
of concessions on the three articles above mentioned.
The Brazilimn Delegation would greatly
appreciate it if a decision on this matter could be
taken at the present sessions as it will be necessary
for the Brazilian Government to take legal steps to
put into force the mandatory provision regarding the
withdrawal of these concessions.
Geneva, August 24 th, 1948. |
GATT Library | ck698fc2622 | Brazilian request for withdrawal of concessions - schedule III | General Agreement on Tariffs and Trade, September 6, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 06/09/1948 | official documents | GATT/CP.2/W.11 and GATT/CP.2/W.1-W.14 CP.2/W.1/Rev.1,CP.2/W.9/Corr.1,W.9/Add.1 | https://exhibits.stanford.edu/gatt/catalog/ck698fc2622 | ck698fc2622_91870464.xml | GATT_145 | 485 | 3,208 | RESTRICTED
LIMITED C
GATT/CP. 2/W.11
6 September , 1948
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
Contracting Parties
Second Session
BRAZILIAN REQUEST FOR WITHDRAWAL OF CONCESSIO
SCHEDULE III
The Delegations of Brazil, the United Kingdom and the
United States propose the adoption of the following Decision
of the CONTRACTING PARTIES under Article XXV as a means of
meeting the problem raised by Brazil in document GATT/CP.2/W.9
dated August 24, 1948:
The CONTRACTING PARTIES, acting pursuant to paragraph
5(a) of Article XXV of the General Agreement on Tariffs and
Trade
Taking note of the provisions of Law No. 313 enacted by
the Government of Brazil on July 30, 1948, which provides
for the re-establishment of the former rates of customs duty
on certain products in excess of the maximum rates provided
for in Schedule III of the Agreement,
Considering that in respect of a substantial number of
other products the rates of customs duty presently applied
to imports into Brazil are lower than the maximum rates
provided for in Schedule III of the Agreement,
Hereby decide as follows:
1. Subject to paragraphs 2 and 3 of this Decision, the
provisions of Article II of the General Agreement on Tariffs
and Grade shall be waived to the extent necessary to permit
the application by the Government of Brazil to almanacs and
calendars, powdered milk and pure penicillin of rates of
ordinary customs duty not in excess of the following; GATT/CP. 2/W.11
page 2
Brazilian Taritff Rate Description of Products
Item Number (Cruzeiros)
98/3 Milk in powder tablets or
other state, with or without
sugar ... .... . L.K. 2.60
545/3 Almanacs and calendars:
Ex Loose, brochured boarded
or bound in paper-covered
binding with cloth or
leather backs ......... L.K. 0.8k
1530 Penicilfin, pure ..... 25%
Ex ad valorem
2. Negotiations shall begin immediately, at Rio de
Janeiro, between the Governments of Brazil, the United Kingdom
and the United States with a view to reaching definitive
agreement as to the compensation to be given by Brazil for the
partial withdrawal of concessions on the products listed
above. Such compensation may take the form off the binding
or reduction of existing duties on any product or products
imported into Brazil, whether or not such products are now
described in Schedule III of the General agreement on Tariffs
and Trade.
3. During the negotiations provided for in paragraph 2
the Government of Brazil shall abstain from increasing the
rate of duty presently applicable to any product described in
Schedule III except as provided for in paragraph 1, above.
4. The agreement reached as a result of the negotiations
provided for in paragraph 2 shall be communicated to the other
contracting parties through the Chairman and shall become an
integral part of the General Agreement on Tariffs and Trade.
If no agreement is reached by December 15, 1948, this Decision
shall on that day cease to have force and effect. |
GATT Library | ny918td3096 | Budget estimates for Contracting Parties : 16 August, 1948, through 31 December, 1948 | General Agreement on Tariffs and Trade, August 20, 1948 | General Agreement on Tariffs and Trade (Organization), Contracting Parties, and Working Party No. 1 on Finance | 20/08/1948 | official documents | GATT/CP2/WP.1/2 and GATT/CP.2/WP.1/1 WP.1/2 | https://exhibits.stanford.edu/gatt/catalog/ny918td3096 | ny918td3096_91870469.xml | GATT_145 | 166 | 1,461 | RESTRICTED
GATT/& 2/WP .1/2
20 August 1948
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
Contracting Parties
Second Session
WORKING PARTY I ON FINANCE
BUDGET ESTIMATES FOR CONTRACTING PARTIES
16 August, 1948, through 31 December, 1948,
Second Session, 16 August, 1948 - U.S. dollars
Conference Services 10,000
Secretariat 2,5000
Preparatory Documentation 465 12,965
August, 1948 (date of closure Second
Session) to 31 May, 1949 (closure date of
Third Session including Tariff Negotiations):
Inter-session Secretariat Services 9,000
Preparatory Documentation 500
Third Session Conference Services 10,000
Third Session Secretariat Services 2,500
Tariff Negotiations 28.000 50,000
1 June, 1949, to 31 December, 1949:
Inter-session Secretariat Services 5,000
Preparatory Documentation 500
Fourth Session, Conference Services 10,000
Fourth Session Secretariat Services 2,500 18,000
Unforseen Expenses : 8 000
Total: 88,965
Note:
The figures for the Secretariat Services are arrived at
by taking an amount of 10% of the Personnel Budget of the
Interim Commission for the International Trade Organization
Secretariat for periods between sessions, and 50% of this
budget during sessions. |
GATT Library | ch796gp2777 | Bureau compte rendu analytique de la Huitieme seance : Tenue au Capitole, La Havane, Cuba, le vendredi 16 Janvier 1948, a 15 heures | United Nations Conference on Trade and Employment, January 19, 1948 | 19/01/1948 | official documents | E/CONF.2/BUR/SR.8 and E/CONF.2/BUR/SR.1-12 | https://exhibits.stanford.edu/gatt/catalog/ch796gp2777 | ch796gp2777_90180216.xml | GATT_145 | 1,562 | 10,914 | RESTRICTED
United Nations Nations Unies
E/CONF .2/BUR/SR .8
CONFERENCE CONFERENCE 19 Janvier 1948
ON DU FRENCH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
BUREAU
COMPTE RENDU ANALYTIQUE DE LA MEUITIEME SEANCE
tenue au Capitole, La Havane, Cuba, le vendredi 16 Janvier 1948,
a 15 heures.
PrTsident : M. M. SUETENS (Belgique)
1. Rapport des PrTsidents des Commissions concernant les principales
questions gui n'ont pas encore été rTglTes.
Note du SecrTtaire de la ConfTrence (E/CONF.2/BUR/25).
Le SecrTtaire, de la ConfTTrence demande aux PTTsidents des Commissions
l'auhtorisation de communiquer ce documenta= la presse.
Cette autorisation lui est donTne.
Le SecTrtaire de la ConTfrence tient a souligner qeu dans son esprit,
le ComiTt dont il propose la crTation dans les deux derniers paragraphes de
sa note ne repTrsenterait pas les TlTdgations en tant que telIes. I1serait
composT de personnaliTts que leur connaissance de la Charte et l'autoriTt
dont ellesj ouissenta la ConTfrence, qualifient particulTre?iment pour agir
comme conciliateurs, Le SeTcrtaire de la CoTnfrence tient a faire remarquer
tout particu T3rement que dans ses travaux, un groupe de cette nature ne
devra pas s'immiscer dans les travaux des Commissions et Sous-Commissions
existantes, Il estime qu'il convient de laisser a ces derFT nires l'initiative
de leur programme de travail, il y Fa avantage permettre amux Sous-Comissions
de fair toule rs efforts pour parovinr a aun accord mais, d'autre part, si
plusieurs questixons Tsont eamines conjointemecnt pTar le omitil de concia
tion, unetelle ent'rnepirse 'nsemble en vue d'atteinder un compromis sera
t-Oueres heoruse' l étude pséeeearT?6 e que questi.on, E/CONF.2/BUR/SR.8
French
Page 2
M HALERhalAUTFGE(TchoslovaV quie)TsF,ce-Prdent, esustime qTéla cretion
d'n TComit6de cee egenprTéut éTsrTdatu6 et propose dae permttre aux Sous-
Commissions de poursuivre leurs travaux sans changement, unene semai de plus.
ApéeTltTyT c 6i, on pourra reprendre la question.
M. WILGRnESS (CaTada) tPrsiladTen deT roismmiime Coapmsion, puie le
point ee v.ue d6M,Augeenthalo.
M. ABELLO (Philippines),VTsicee-Preila;dentiFm d Duxs sCommission, etime
e Tla decsion one dêi Otpeas efTrTcé iIlfI 12st aconveice su quommem comi
lndique lme docueento, ls Smus-Comi ssiondssont Técharges des questions
diefficils, ellres pouerm,ont teiner luvrs traFsdTaux rapidoment. Les
questions pendaunts poOrreont trT coaaàfics. uno soule commission, ce qui
aurm, 6aleit l'ava ntapgememtd eeaererToT etu de d6 eiibTnséduourr an partie
de euers mnbres,
M. CHARLOUNE (ay)ruguTs, Prident d eui laFTatrme Commissiaon, upeprov
la propositdion u TSecrtairela de TCenrronce et cst d'adc cor,TeTen nral,
avec bello;;nIlnestime s.T Tr iée 6'f~abc dlessayrer d paaaaàveir a un accord sur
cnes que(t?stiose plue que c les mettre aux voix et il est conveaincu que otte
molaeaserals pl rapIlide. I1 esme qu'il vtaudrta(iô pmieu-otrTe¦a éeuxc6or
dux oummi trons is co(tynsioôepleutqu'unIeole ot, leur csonfier'0 au'i, qul
poaurrait' y voir dautires queestones menqu cnmTaells toes dans le document.
M GUTIEPEZ (rCuba) 'c'ot uquIu namenoaml exoees questions par le
CoomlTdéeparpos fOTFFr potre fair un graend pasF n arrire et iel appui la
proposi tion edehM.Augntaler.
M AZER (EgyVipete)T, écnPr6idoes, n'stvpas dd'acecoM.rMavo "Geutierro
et no croit pase quo lTF Comi sen nqu'etiTo si ngreraedans ls travsaux de
Sous-Commsissione. II p'nsees quil t inutile d'en retarder la constitution.
M. WILCOX (Etiats-UnTeis d'Arque) craint que la composition duéT Comit
denre n se heueeSea(en a sf diélsTscuét Te realion etsilatsiln tme qu'il
y auuno ra TienctrneT invite dablalonos1 travaux des Sous-Ciommssi.ons I E/E/CONF.2/BUR/SR.8
French
Pag3ee
A son avis, l'on doit reconnaître que la Conférence fait de grands progrès
et equ, tant que l'Orsanisation actuelle fonctionnera.d'une manière satisfai-
sante, il sora imprudent et prématuré de lui superposer un comité suppleémn-
taeir.
M. WUNSZ KING (Chine) reconnaît quoe ds progrèss ont été réalisés, mais
il croit anénmoins qu'iel-xiest des questions au sujet desquelles cortaines
Sous-Commissions ont abouti à une impasseIl. estimé qu'un comité de
conciliation ('quil préfèrerait ne pas voir aepple"r commité" ) serait utile
au stade actual de la Conférence et il no voit pas pourquoi il y aurait
néceasairement ingérence dans les travaux des Sous-Commissions. La nomination
d'un comité de ce genre doit ôtro laisseéo à l'appréciation du Président et,
sill est pout-être difficilee d trouver des homes capables d'exameinr
objectivement toutos les questions, on pourra résoudre cetto difficulty en
affectant los membres à des groupes différents au sein du Comité...
M MHOLES (Royaume-Uni) se proneoncoen faveur de la proposition do
M.r Ahugntalor.
OLBAN (NrèFoeg),éPresidene ed, l iSèxime Commission, etseeim''iqIll
st lus important pour lea chefe dodTéT éeationse rTépréTnt6s da nsswse
irveessoSous-Commissisonedo vroi'illeseu' possible de pvariina à &a conciill-
tion. auein m sê me de ces gaoernse, n senteant bion au courant de leurs
travaux, Ils deivont concieilr lours points de vue non pas sur des questions
d Treaction mais sur le but de laCon fénence qus eat, croit-il ,éT'eablir
une Organisation international du commerce répresentative ed touets les
ations commernartes et notamment os1randes de toutesenations commertant0s.c
M. MALIK (Inde), second Vic-ePTs?eeionts eat partisan de cr aeatirn
médi=6eo 'un groupe do conciliation, ebeo nq'it puieee sG avoir, il le
reconnaet, des difficultes dé rTalisation, car mOme m0 si un accord quelconque
sTeé ralse au sein des Sous-Commissions, les questions seronet rprises en
commissiont ms eeen êm séa plnceFénire. En ce qui cencsern les observations E/CONF.2/BUR/SR.8
French
Page 4
de M. Colban, l'oractcur tient à déclarer que la Conférence s'intéresso
également aux pays ayant une grande importance économique ot une population
nombreuse ot dont le commerce par la suite, est appelé à devenir plus
important qu'il n'est actuellement.
M. LEENHART (France.) pense commo M. Augenthaler qu'il. est prématuré
de créer un groupe do ce genre, au stade actuel de la Conférence, et il se
rend compte également des difficultés de réalisation quo cette création
soulèvora.
M. NASH (Nouvelle-Zélande),Vice-Président, estime que des progrès
remarquables ont été réalisés cos temps dorniers et il ponse, comme
M. Augenthaler, quo la création d'un groupe de conciliation serait prématuré
à l'houre actuelle et qu'elle nc sera peut-être mOme pas nécéssairo. Il
approuve la proposition do M. Colban.
M. ABELLO (Philippines), Vice-Président de la Deuxième Commission,
craint qu'un retard no rendo les points de vue inconciliables.
M. WUNSZ KING (Chine) tient à appuyer les observations faites par
N. Malik cn ce qui concorne los buts de la Conférence. Il estime que
l'existence d'un groupe de conciliation aura une influence Stabilisatrice,
même si ce groupe ne commence pas à fonctionner immédiatement.
M. STUCKI (Suisse), Vice-président, déclaro qu'il n'a jamais cru qu'un
groupe-de conciliation fût de quelque utilité dans une Conférence de cette
onvergure, et il estime quo los chefs des délégations pourront conférer entre
cux sclon in méthode préconiséc par M. Colban, sans l'aide d'un groupe de ce
genre. Il leur incombe d'essayer de tomber d'accord sur le plan politique,
lorsque cot accord s'est avéré impossible sur le plan technique. L'orateur
est partisan d'attendro une semaine avant de prendre une décision quelconque
à l'égard de la proposition du Secrétaire de la Conférence.
M. TINOCO (Costa-Rica), Vice-Président, déclare que sen optimisme. est
confirmé par le rapport, d'après lequel il no reste plus qu 'une quzngaine E/CONF.2/BUR/SR.8
French
Page 5
d'articles à adoptor. II approuve la proposition de M. Augeuthaler, mais il
estime que le buroau devrait se réunir morerodi ou jeudi, plutôt quo saucdi,
pour examiner do nouveau la situation et, si un accord s'avère impossible à
ce moment là, les chefs dos délégations dovraient ôtre réunis pour prendro
une décision définitive.
M. AUGENTHALER (Tchécoslovaquie), Vice-Président, estime quo les
Présidents des Commissions principales pourront faire, d'ici la fin de la
semaino prochaine, avec les chefs des délégations, toutos les démarches
nécessaires aux fins de conciliation et de consultation.
M. DEDMAN (Australia), Président de Ia Première Commssion, appuie lo
point de vue de M. Augonthaler.
Lo PRESIDENT conclut qu'uno approbation du point de vue de M. Augenthaler
se dégage de la discussion. En conséquence, les Sous-Commissions poursuivront
leurs travaux et les questions scront examinées de nouveau à une séance
ultértoure, vers la fin de la semaine prochaine, date a laquolle une décision
sor prise au sujet de la proposition du Socrétaire de la Conférence.
2. Etat d'avancement des travaux de la Conférence, Note du Secrétaire de la
Conférenco (E/CONF.2/BUR/23).
o Lo Secrétaire de la Conférence estime quo l'adoption de lasvariante b),
qui prévoit unee demand de fonds supplémentaires, serait peut-ôtre une bonne
mesure de précaution.
M. HOLMES (Boyaume-Uhi) eestime qu la demande do fonds doit êtro différée
car il considère qu'il serait particuliècrement inopportun de donner l'impres-
sion que la Conférence pourra so prolonger jusqu'à Ia fin de février,
M NASH (Nouvelle-Zélande), Vice-Président, opine danns ce sem et désire
qu l'on maintienne le 31 janvier comme datoe limits
L Secrétaire de la Conférence déclare eque ladocument a été distribué
afin dmo perottre à la Conférence de a'appuyer sur une documentation pour
décider do sa clôture. Clést à lui qu'il incombe de décider des measures à E/CONF. 2/BUR/SR.8
French
Page 6
prendre en ce qui concerne les fonds supplémentaires.
M. WUNSZ KING (Chine)est partisan de l'adoption de la variante a)et
de la dato du 14 février.
M. GUTIERREZ (Cuba)ost égaleoment partisan de l'adoption d'une date
limite.
M. WILGRESS (Canada), Président dela Troi Commission, estime quo
la fixation d'une date limite no pout être d'auouno lite, au stade actuel
do la ConfTdrenve ot eo pourraitnuqo doner lieu a lieu aaontendus.es mlcstondua.-
de vApréchangeccen M. WILCOX (Etaptsp-Ue d nis)lie eroeos.lecr un
dclaration indeilquanteau a chara qlesuoPpTeeaBursgée éSous-Commis-spusos rsetSmi-Co-i s-
tesoine'eleoeffoor do emenir ur raux jpouir la efin doeJanveor,-
ence aqoslaupoe iée6rounco puersese la promiF0e partyieereecndc fa a mnèpecLaero pCrtie
du oifé drior.
.eCoGctrposiesoct épteo.
7 h. 50.am d8ese Gaéplàv6 o - |
|
GATT Library | hq702pb2023 | Canadian Delegation. Protocol of typographical corrections | General Agreement on Tariffs and Trade, March 9, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 09/03/1948 | official documents | GATT/1/17 and GATT/1/9-28+21/Add.1 | https://exhibits.stanford.edu/gatt/catalog/hq702pb2023 | hq702pb2023_90310291.xml | GATT_145 | 280 | 1,779 | RESTRICTED GATT/1/17 9 March 1948 ENGLISH - FRENCH
GENERAL AGREEMENT ON TARIFFS AND TRADEON TARMM AM TRA
SUR LES TARIFS DOUNIERS ET L
3FE iSEIFIRST SESSION OF THE C
CANADIAN DELWfGATT
- DEr2GATI- nD CAM
PROCOL O T R CCECTONS
PROTOCOIE REATI:A ATlX CMMCT3IONS T2OPG t20
The ftodlovng, corrections. shoulA
be made If the Schedule of Canada
(Schedule- V) in. the EQis1eh testr
Apporter les corections suivantes
au texte. franqais de la listed du Camada
(Liste V):
g el - Tariff
er ex 56. _ *
now reads read.
$4.30 $4.50
Pae 20 - Tariff Item Nberx 162
now reads should. read.
....cOnta ng .. .COn="ri
twentr-eight per thirt7-two per
cent, or less,., cent. or 1esa..
]?z - Tariff Item Nuber ex: 172
now reads should read
e religious picbune * ..religous-
and. ttoeBs Pictures an&
mottoes., not to
include faraes.
Page8 - Tariff Item Number 187 b.
nov reads mhouUl read
o .,oe anE onehjaa± ..one WA on-
Inches In width or eight Inches In
Page 21 - Positian
au lieu de
.. ne titrant pas
plus de 28 p. 100..
Pae 23 - Position
au lieu de
images et
devises religieuses
du Tariff ex 162
lire,
... ne titrant
. pas plus de
32 p. 100...
du Tarif ex 172
lire
ae images et
s devises religieu-
ses, non ccmpris
les cadres.
-
vUth or overp. &.P.
overa . GATT/1/17 Page 2
Page 76 - Tariff Item Number 549 (ii)
now reads should read
Wool, in the Wools not
grease.,.0 further advanced vance
thauredoiued....
Page 82 - Positian difTarti 5i) (i)
au lieu de lire
lain. suint... Laine dant le pr6-
- paoatian ee d6passe
- pas lesdesauintage... |
GATT Library | ph427sw4579 | Canadian Delegation. Protocol of typographical rectifications | General Agreement on Tariffs and Trade, March 18, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 18/03/1948 | official documents | GATT/1/34 and GATT/1/29-46+38/Rev.1,40/Rev.1 | https://exhibits.stanford.edu/gatt/catalog/ph427sw4579 | ph427sw4579_90310309.xml | GATT_145 | 122 | 901 | GATT/1/34
18 March 1948
ENGLISH - FRENCH
GENERAL AGREEMENT ON TARFS AND TRADE
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMERCE
FIRST SESSION OF THE CONTRACTING PARTIES
PREMIERE SESSION DES PARTIES CONTRACTANTES
CANADIAN DELEGATION
DELEGATION DU CANADA
PROTOCOL OF TYPOGRAPHICAL RECTIFICATIONS
PROTOCOLE RELATIF AUX RECTIFICATIONS TYPOGRAPHIQUES
The following rectification should
be made in Schedule V -Canada:
Page 60 - Tariff Item Number 438e (3)
now reads should read
Parts, n.o.p., Parts, n.o.p.,
t electro-plated, electro-plated or
whether finished not, whether
or not. finished or not.
Apporter la rectification suivante
a liste V - Canada:
Page 64 - Position du Tariff 438e (3)
au lieu de lire
Pieces, n.d., non Pieces, n.d.,
plaquees, achevees plaquees ou non
on non. achevees ou non. |
GATT Library | xd478pk9913 | Central Drafting Committee : Note by the President | United Nations Conference on Trade and Employment, January 7, 1948 | 07/01/1948 | official documents | E/CONF.2/26 and E/CONF.2/14-15/REV.1 | https://exhibits.stanford.edu/gatt/catalog/xd478pk9913 | xd478pk9913_90040081.xml | GATT_145 | 169 | 1,288 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/26
ON DU 7 January 1943
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
CENTRAL DRAFTING COMMITTEE
Note by the President
At the twelfth plenary meeting held on 31 December 1947, the Conference
approved the recommendation of the General Committee for the establishment of
a Central Drafting Committee. The terms of reference and the composition of
the Committee, approved by the Conference, are set out in document E/CONF.2/21.
In accordance with this decision, I hereby nominate a Central Drafting
Committee composed as follows:
M. Jean Royer (France) - Chairman
M. Fayst (Belgium) - Alternates: Baron de Gaiffier and M. E. Thiltges
M. Monteiro de Barros Filho (Brazil)
Mr. Honore Catudal (United States of America)
Mr. J. E. Fawcett (United Kingdom)
No nominations have been received for observers familiar with other
official languages of the United Nations.
In the event that the Conference should amend Article 92 of the Draft
Charter, the composition of the Central Drafting Committee will be appropriately
modified. |
|
GATT Library | rh840zp3486 | Changes to the text of article 13 contained in annex I of E/CONF.2/45/Rev.1 proposed by the United States Delegation | United Nations Conference on Trade and Employment, March 2, 1948 | 02/03/1948 | official documents | E/CONF.2/48 and E/CONF.2/45/REV.1/53/CORR.3 | https://exhibits.stanford.edu/gatt/catalog/rh840zp3486 | rh840zp3486_90040106.xml | GATT_145 | 487 | 3,221 | United Nations Nations Unies
CONFERENCE CONFERENCE RESTRICTED
ON DU E/CONF.2/48
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 2 March 1948
ORIGINAL :ENGLISH
CHANGES TO THE TEXT OF ARTICLE 13 CONTAINED IN ANNEX I
OF E /CONF.2/ 45/Rev. 1 PROPOSED BY THE UNITED STATES
DELEGATION
1. The lest sentence in paragraph 4(b) to become paragraph 4 (c) with a
deletion indicated by brackets and additions indicated by underlining:
"4. (c) The applicant Member shall apply all measures under
[this] sub-paragraph (b) above in such a Way as to avoid
unnecessary damage to the commercial or economic interests
of any other Member, including interests under Articles 3
and 9."
2. Aa a consequence in part of the preceding proposed change and in
order to bring the provisions relating to measures initiated under
paragraph 4 (a) within one paragraph change the numbering of paragraphs
and sub-paragraphs as follows:
Number of paragraph or sub-paragraph
Present Proposed
4 (c) 4 (d)
4 (d) 4 (e)
5 4 (f)
6 5
7 4 (g)
As a further consequence In the second line of paragraph 4 (f) and in the
first line of paragraph 4 (B) as renumbered "paragraph 4 of this Article"
should be changed to read "this paragraph".
3. The beginning of paragraph 4 (d) as renumbered should be changed as
Indicated below by underling and square brackets:
"4. (d) If the proposed measure does not fall within the
provisions of sub-paragraph (b), the Member
(i) [the Member] may enter into direct consultations
4 In the fourth and fifth lines of sub-paragraph 4 (d) (i) as renumbered
delete the words "of the proposed measure and". It is unnecessary for the Member
to inform the Organization of the proposed measure under this sub-paragraph
the Information must already have been given pursuant to paragraph 4 (a).
/5. In the E/CONF.2/48
Page 2
5. In the beginning of sub-paragraph 4 (d) (ii) an remumbered substitute
"may initially or in the event of failure ......." for "shall initially or may
in the event of failure .........":
6. Amend teh first sentence of paragraph 4 (g) as rmumbered to read as
follows, underlining indicating additions and square brakecst deletions:
"In the case of measures referred to in this paragraph
4 [4 of this Article], the Organization shall, at the earliest
opportunity but ordinarily within fifteen days after receipt
of the statement referred to in sub-paragraph [4] (a) above or,
in the case of measures dealt with either under [in accordance
with the provisions of] sub-paragraph [4] (d) (i) above or, after
failure to reach complete or substantial agreement under that
sub-paragraph, under sub-paragraph (d) (ii ), above of the application
referred to in those [that] sub-paragraph [of this, Article] advise
referred to in those [that] sub-paragraphs [of this Article] advise
the applicant Member of the date by which it will be notified whether
or not it is released from such obligation or obligations as may be
relevant." |
|
GATT Library | by788wx4431 | Chapter IV: Commercial Policy Corrigendum to Draft Report to the Conference | United Nations Conference on Trade and Employment, March 17, 1948 | Third Committee: Commercial Policy | 17/03/1948 | official documents | E/CONF.2/C.3/89/Corr.3 and E/CONF.2/C.3/78-89/ADD.3 | https://exhibits.stanford.edu/gatt/catalog/by788wx4431 | by788wx4431_90190200.xml | GATT_145 | 52 | 371 | United Nations
CONFERENCE
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
E/conf.2/C.3./8Ptj
Corr 3
17 march 1948
ENGLISH ONLY
THIRD COMMITTEE: COMMERCIAL POLICY
CHAPTER IV: COMMERCIAL POLICY
CORRIGENDUM TO DRAFT REPORT TO THE CONFERENCE
PART II
On page 18, line 4, between "purchases" and "sales", delete "or",
substitute "and". |
GATT Library | fd208jc5003 | Chapter IV: Commercial Policy Draft Report to the Conference | United Nations Conference on Trade and Employment, March 16, 1948 | Third Committee: Commercial Policy | 16/03/1948 | official documents | E/CONF.2/C.3/89/Add.1 and E/CONF.2/C.3/78-89/ADD.3 | https://exhibits.stanford.edu/gatt/catalog/fd208jc5003 | fd208jc5003_90190201.xml | GATT_145 | 2,062 | 13,012 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
E/CONF.2/C .3/89/ Add.1
16 March 1948
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
CHAPTER IV. COMMERCIAL POLICY
DRAFT REPORT TO THE CONFERENCE
PABT II
(continued)
This part of the draft Report of Committee III contains the Interpretative
Notes, as approved after consideration of the Report of the Central Drafting
Committee, to the text of Articles 18 to 22 and 25 to 38, which were issued
in document E/CONF.2/C.3/89.
/Ad Article 18 E/CONF. 2/C.3/89/Add.1
Ad Article 18
Any internal tax or other internal charge, or any law, regulation or
requirement of the kind referred to in paragraph I which applies to an
imported product and to the like domestic product and is collected or enforced
in the case of the imported product at the time of point of importation, is
nevertheless to be regarded as an internal tax or other internal charge, or
a law, regulation or requirement of the kind referred to in paragraph 1, and
is accordingly subject to the provisions of Article 18.
Paragraph 1
The application of paragraph 1 to internal taxes imposed by local
government and authorities within the territory of a Member is subject to
the provisions of paragraph 3 of Article 99. The term "reasonable measures"
in the last-mentioned paragraph would not require, for example, the repeal
of existing national legislation authorizing local governments to impose
internal taxes which, although technically inconsistent with the letter of
Article 18, are not in fact inconsistent with its spirit, if such repeal would
result in a serious financial hardship for the local government or authorities
concerned. With regard to taxation by local governments or authorities which
is inconsistent with both the letter and spirit of Article 18, the term
"reasonable measures" would permit a Member to eliminate the inconsistent
taxation gradually over a transition period, if abrupt action would create
serious administrative and financial difficulties.
Paragraph 2
A tax conforming to the requirements of the first sentence of paragraph 2
would be considered to be inconsistent with the provisions of the second
sentence only in cases where competition was involved between, on the one
hand, the taxed product and on the other hand, a directly competitive or
substitutable product which was not similarly taxed.
Paragraph 5
Regulations consistent with the provisions of the first sentence of
paragraph 5 shall not be considered to be contrary to the provisions of the
second sentence in any case in which all of the products subject to the
regulations are produced domestically in substantial quantities A regulation
cannot be justified as being consistent with the provisions of the second
sentence on the ground that the proportion or amount allocated to each of the
products which are the subject of the regulation constitutes an equitable
relationship between imported and domestic products.
/Ad Article 20 E/CONF.2/C. 3/89/Add.1
Page 3
Ad Article 20
Paragraph 2(a)
In the case of products which are basic to diet in the exporting country
and which are subject to alternate annual shortages and surpluses, the
provisions of paragraph 2 (a) do not preclude such export prohibitions or
restrictions as are necessary to maintain from year to year domestic stocks
sufficient to avoid critical shortages.
Paragraph 2 (c)
The expression"agricultural and fisheries product, imported in any
form" means the product in the form in which it is originally sold by its
producer and such processed forms of the product as are so closely related
to the original product as regards utilization that their unrestricted
importation would make the restriction on the original product ineffective.
Paragraph 3 (b)
The provision for prior consultation would not prevent a Member which
had given other Members a reasonable period of time for such consultation
from introduction the restrictions at the date intended. It is recognized
that, with regard to import restrictions applied under paragraph 2 (c) (ii),
the period of advance notice provided would in some cases necessarily be
relatively short.
Paragraph 3 (d)
The term "special factors" in paragraph 3 (d) includes among ohter
factors changes in relative productive efficiency as between domestic and
foreign producers which may have occurred since the representative period.
Ad Article 21
With regard to the special problems that might be created for Members
which, as a result of their programmes of full employment, maintenance of
high and rising levels of demand and economic development, find themselves
faced with a high level of demand for imports, and in consequence maintain
quantitative regulation of their foreign trade, it was considered that the
text of Article 21, together with the provision for export controls in certain
parts of this Charter, for example, in Article 43, fully meet the position of
these economies.
Ad Article 22
Paragraphs 2 (d) and 4
The term "special factors" as used in Article 22 includes among other
factors the following changes, as between the various foreign producers,
/which E/CONF.2/C .3/89/Add.1
Page 4
which may have occurred since the representative period:
1. changes in relative productive efficiency;
2. the existence of new or additional ability to export; and
3. reduced ability to export.
Paragraph 3
The first sentence of paragraph 3 (b) is to be understood as requiring
the Member in all cases to give, not later than the begining of the relevant
period, public notice of any quota fixed for a specified future period, but
as permitting a Member, which for urgent balance-of-payments reasons is under
the necessity of changing the quota within the course of a specified period,
to select the time of its giving public notice of the change. This in no way
affects the obligation of a Member under the provisions of paragrapgh 3 (a),
where applicable.
/Ad Article 30 E/CONF. 2/C. 3/89/Add. 1
Page 5
Ad. Article 30
Paragraph 1
Note 1
Different prices for sales and purchases of products in different markets
are not precluded by the provisions of Article 30, provided that such different
prices are charged or paid for commercial reasons, having regard to differing
conditions, including supply and demand, in such markets.
Note 2
Sub-paragraphs (a) and (b) of paragraph, 1 shall not be construed as
applying to the trading activities of enterprises to which a Member has
granted licenses or other special privileges
(a) solely to ensure standards of quality and efficiency in the
conduct of its external trade; or
(b) for the exploitation of its natural resources;
provided that the Member does not thereby establish or exercise effective
control or direction of the trading activities of the enterprises in question,
or create a monopoly whose trading activities are subject to effective
governmental control or direction.
Ad Article 31
Paragraphs 2 and 4
The maximum import duty referred to in paragraphs 2 and 4 would cover
the margin which has been negotiated or which has been published or notified
to the Organization, whether or not collected, wholly or in part, at the
custom house as an ordinary customs duty.
Paragraph 4
With reference to the second proviso, the method and degree of adjustment
to be permitted in the case of a primary commodity which is the subject of a
domestic price stabilization arrangement should normally be a matter for
agreement at the time of the negotiations under paragraph 2 (a).
Ad Article 32
Paragraph I
The assembly of vehicles and mobile machinery arriving in a knocked-down
condition or the disassembly (or disassembly and subsequent reassembly) of
bulky articles shall not be held to render the passage of such goods outside
the scope of "traffic in transit", provided that any such operation is
undertaken solely for convenience of transport.
/Paragraphs 3, 4 Paragraphs 3, 4 and 5 Page 6 E/CONF.2/C.3/89/Add.1
shall not be deemed to include transportation charges.
Paragraph 6
If, as a result of negotiations in accordance with paragraph 6 a Member
grants to a country which has no direct access to the sea more ample facilities
than those already provided for in other paragraphs of Article 32, such special
facilities may be limited to the land-locked country concerned unless the
Organzation finds, on the complaint of any other Member, that the withholding
of the speciaI facilities from the complaining Member contravenes the most-
favoured-nation provisions of this Charter.
Ad Article 33
Paragraph 1 Hidden dumping by associated houses (that is, the sale by an importer at
a price below that corresponding to the price invoiced by an exporter with whom
the importer is associated, and also below the price in the exporting country)
constitutes a form of price dumping with respect to which the margin of dumping
may be calculated on the basis of the price at which the goods are resold by
the importer.
Paragraphs 2 and 3
Note 1 As in many other cases in customs administration, a Member may require
reasonable security (bond or cash deposit) for the payment of anti-dumping-or
countervailing duty pending final determination of the facts in any case of counter
suspected dumping or subsidization
Note 2
Multiple currency practices can in certain circumstances constitute a
subsidy, to exports which may be met by countoryvailing duties under paragraph 3aa
or can constitute a form of dumping by means of a partial depreciation of a
country's currancy which may be met by action under paragraph 2 By "multiple
currency practices" is meant practices by governments or sanctioned by
governments.
Ad Article 34 Paragraph 3
Note 1
it would be in conformity with Article 34 to presume that "actual value"
may be reprasented by the inovice price (on in the case of government contracts
/in respect of E/CONF. 2/C. 3/89/Add.1
Page 7
in respect of primary products, the contract price), plus any non-included
charges for legitimate costs which are proper elements of "actual value" and
plus any abnormal discount, or any reduction from the ordinary competitive
price.
Note 2
If on the date of this Charter a Member has in force a system under which
ad valorem duties are levied on the basis of fixed values, the provisions of
paragraph 3 of Article 34 shall not apply:
1. in the case of values not subject to periodical revision in
regard to a particular product, as long as the value established
for that product remains unchanged;
2 in the case of values subject to periodical revision, on
condition that the revision is based on the average "actual
value" established by reference to an immediately preceding
period of not more than twelve months and that such revision
is made at any time at the request of the parties concerned
or of Members. The revision shall apply to the importation or
importations in respect of which the specific request for
revision was made, and the revised value so established shalI
remain in force pending further revision.
Note 3
It would be in conformity with paragraph 3 (b) for a Member to construe
the phrase 'in the ordinary course of trade", read in conjunction with "under
fully competitive conditions", as excluding any transaction wherein the buyer
and seller are not independent of each other and price is not the sole
consideration.
Note 4
The prescribed standard of "fully competitive conditions" permits Members
to exclude from consideration distributors' prices which involve special
discounts limited to exclusive agents.
Note 5
The wording of sub-paragraphs (a) and (b) permits a Member to assess
duty uniformly either (1) on the basis of a particular exporter's prices of
the imported merchandise, or (2) on the basis of the general price level of
like merchandise.
Paragraph 5
If compliance with the provisions of paragraph 5 would result in decrease
in amounts of duty payable on products with respect to which the rates of
duty have been bound by an international agreement, the term "at the earliest
/practicable E/CONF. 2/C. 3/89/Add.1
Page 8
practicable date" in paragraph 2 allows the Member concerned a reasonable time
to obtain adjustment of the agreement.
Interpretative Notes
Ad Article 35
While Article 35 does not cover the use of multiple rates of exchange
as such, paragraphs 1 and 3 condemn the use of exchange taxes or fees as a
device for implementing multiple currency practices; if, however, a Member
is using multiple currency exchange fees for balance-of-payment reasons not
inconsistently with the Articles of Agreement of the International Monetary
Fund, the provisions of paragraph 2 fully safeguard its position since that
paragraph morely requires that the fees be eliminated at the earliest
practicable date. |
GATT Library | zj399fk6193 | Chapter IV: Commercial Policy Draft Report to the Conference | United Nations Conference on Trade and Employment, March 16, 1948 | Third Committee: Commercial Policy | 16/03/1948 | official documents | E/CONF.2/C.3/89/Add.3 and E/CONF.2/C.3/78-89/ADD.3 | https://exhibits.stanford.edu/gatt/catalog/zj399fk6193 | zj399fk6193_90190203.xml | GATT_145 | 4,931 | 33,074 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E/CONF.2/C.3/89/
Add .3
16 March 1948
ORIGlNAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
CHAPTER IV: COMMERCIAL POLICY
DRAFT REPORT TO THE CONFERENCE
PART I
1. The Third Committee of the Conference held its first meeting on
26 November 1947 under the Chairmanship of the President, Mr. Sergo I. Clark
The Honourable L. D. Wilgress, leader of the delegation of Canada, was
unanimously elected Chairman, and the Committee began its studies of
Chapter IV, Commercial Policy, at its second meeting on 29 November.
2. Mr. Walter Muller (Chile) was elected Vice-Chairman, but it was learned
that Mr. Muller would be unable to accept office and Mr. E. Puig Arosemena
(Ecuador) was then appointed in his stead. Later Mr.E. Puig Arosemena returned
to Ecuador and on 18 December Mr. Lleras Restropo (Colombia) was elected
Vice-Chairman.
3 The amendments submitted by delegations were compiled in an Annotated
Agenda which was issued on 8 December in six parts:
Document Nos. Summart Records of
Section A - Tariffs, Preferences and E/CONF.2/C.3 E/CONF.2/C.3/SR.
Internal Taxtion and Regulation 6 5 to 9, 11 and 13
Section B - Quantitative Restrictions 7 10, 12, 14, 16, 18.
and Exchange Controls 19, 21 to 25
Section C - Subsidies 8 26, 27 and 28
Section D - State Trading 9 28
Section E - General Commercial Provisions 10 13 and 15
Section F - Special Provisions 11 17
4. The First Reading of the Chapter and the preliminary discussion of the
amendments continued up to and including the twenty-eighth meeting, on 8 January,
During the First Reading of the six Sections of the Chapter, ten Sub-Committees
were appointed including a Joint Sub-Committee with Committee II on Tariff
Preferences.
5, The Second Reading of the Chapter and consideration of the Sub-Committee
Reports began at the thirtieth meeting on 31 January and were completed at the
forty-seventh meeting on 17 March. All of the Sub-Committee Reports were
/approved in full, Page 2 approved in full, subject to a few changes in the text of the Artlcles as noted
in this Report
6. The Reports of the Central Drafting Committee, recommending improvements
in the English and French texts of the Chapter, are listed below;
Articles Documents Approved by Committee
(Revisions, Addenda
and Corrigenda are
E/CONF.2/C.8/ E/CONF.2/SR
16
17 16
18 and 19 14 46
20 and 22 42
21 12 46
25 to 28 8 42
30 to 31 6
32 to 38 4
42, 42, and 42B
7 Committee.. III now submits for the approval of the Conference the text of
Chapter IV attached to this Report subject to the following RESERVATIONS:
SECTION A
Tariffs, Preferences, and Internal Taxation and Regulation
Article 16: General Most-favoured-nation Treatment
Bolivia, Dominican Republic, Ecuador, Haiti and Iraq.
Chile and Syria on paragraph 1, pending the decision of the contracting
parties on the final text of Article I of the General Agreement
Argentina - on paragraph and Annex A, pending the final text of Article If
and other Articles related to preferences,
Peru on paragraphs 2, 4 and 5 and Interpretative Note, pending the
final text of Article 15.
Uruguay - on Anex A.
Aiticle17: Reduction of Tariffs and Elimination of Preferences
Guatamala - pending a review of Custom legislation.
Switzerland - unless the Third Committee construes the term "mutually
advantageous" to cover negotiations relating both to tariff and other related
matters.
Mexico - on paragraph 3, pending decision of the contracting parties to the
General Agreement on the question of supersession E/CONF. 2/C .3/89/Add.3 Page3
Cuba - on paragraph 4.
Denmark and the United Kingdom - on the Interpretative Note.
Article 18: National Treatment on Internal Taxation and Regulation
Switzerland
Ecuador - pending final text of Article 31.
Cuba - on paragraph 2.
Argentina - on paragraph 3.
Brazil and Ceylon - on paragraph 6.
United Kingdom - on paragraph 9.
SECTION B
Quantitative Restrictions and related Exchange Matters
Switzerland
Article 20: General Elimination of Quantitative Restrictions
Argentina and Bolivia - pending final text of Article 13 and 21
Ceylon - pending final text of Article 13.
Article 21: Restrictions to safegaurd the Balance of Payments
Chile - pending final text of Article 13.
Argentina - on parargraphs 4 (a) and 5.
Article 22: Non-discrininatory Administration of Quantitative Restrictions
Bolivia
Argentina - on paragraph 2, 3 and 4
Article 23: Exceptions to the Rule of Non-discrimination.
Argentina
Greece - re the insertion of a new paragraph.
Article 24: Relationship with the International Monetary Fund and Exchange
Arrangements
Mexico
SECTION C
Subsidies
Peru - re different treatment as between subsidies affecting exports and
those affecting imports.
Article 25: Subsidies in General
Bolivila
Cuba - re indirect subsidization of domestic industries by means of internal
tax remission.
/Article 26: Additional Article 26: Additional Provisions on Export Subsidies
on paragraph 3.
Article 27: Special Treatment of Primary Commedities
Argentina - on paragraph 4
Peru - on paragraph 5, re elimination of export prior approval for export
subsidies on primary commodities.
Article 28: Undertaking regarding Stimulation of Exports of Primary Commodities
Argentina - on paragraph 3.
SECTION D
State Trading
Ecuador - on all provisions relating to state monopolies for fiscal
purposes.
Article 31A: Liquidation of Non-commercial Stocks
Chile
SECTION E
General Commercial Provisions
Article 32: Freedom of Transit
Argentina - on paragraph 1.
Chile -on paragraph 6 and the Interpretative Note.
Article 33: Anti-dumping and Countervailing Duties
Argentina - re the use of other defensive measures.
Article 34: Valuation for Customs purposes
Argentina - on paragraph 5.
Chile and India - on Interpretative Note 2 on paragraph 3.
Article 35: Formalities connected with Importation and Exportation
Bolivia
Haiti - on paragraphs 1, 2 and 3.
Chile - on paragraph 1, re adding certain existing imports to customs
duties.
Article 36: Marks of Origin
Argentina
Chile - on paragraph 7, re the use of trade names to the detriment of
distinctive regional names.
/Artiel37: Publication E/CONF. 2/C.3/89/Add.3
Page 5
Article 37: Publication and Administration of Trade Regulations
Argentina - on paragraph 3 (c).
SECTION F
Special Provisions
Article 40: Emergency Action on Imports of Particular Products
Peru - re the use of import restrictions on agricultural and fisheries
products not being excluded.
Argentina - on the Interpretative Note.
Article 42B: Customs Unions and Free-trade Areas
Argentina. Chile, Peru and Venezuela - on paragraph 2, re the inclusion
of the words "as between the territories of Members".
Article 43: General Exceptions to Chapter IV
Argentina, Ecuador and Uruguay - on paragraph 1 (a). (xi).
Argentina - on paragraphs 1 (b) (iii) and 2.
8. There follows a brief review of the work of the ten Sub-Committees and of
the treatment of their Reports by Committee III:
/J0INT SUB-COMMITTEE E/CONF.2/C.3/89/Add.3
Page 6
JOINT SUB-COMMITTEE OF COMMITTEES II AND III ON TRAIFF PREFERENCES
ARTICLES 16 AND 42
Chairman - Mr. Stig SAHLIN (Sweden), succeeded by Mr. J. ROYER (France).
Members - The representatives of Argentina, Belgium, Brazil, Canada,
Chile, El Salvador, France, Haiti, Iran, Poland, Sweden, Syria, Turkey,.
the United Kingdom, the United States and Venezuela.
Date of Appointment - Seventeenth Meeting of Committee III, 22 December.
Number of Meetings - Fourteen.
Sub-Committee Report - E/CONF.2/C.3/73 (also Corr.1 and Add.l) of
7 March.
Second Reading of Committee III -43 rd and -44th meetings, 10 and 11 March
General Comments - The Joint Sub-Committee, in its study of Articles 15,
16 and 42 and in its examination of the amendments proposed by delegations,
took into account most of the problems which arise from exceptions to be
most-favoured-nation clause for the establishment of tariff preferences.
The detailed examination of the amendments was consigned to a working Party
which held twenty-nine meetings.
For Article 15 a new text was prepared by the Working Party, but at
a later stage in the discussions it was taken up by the Co-ordinating
Committee of the Conference and was included in the over-all settlement
of Issues related to Economic Development. The Joint Sub-Committee's.
Report on Article 15 was presented to Committee II in E/CONF. 2/C.2/42.
For Articles 16 and 42, the Sub-Committee's Report was submitted to
Committee III. The changes proposed in Article 16 were accepted without
much discussion and the Committee also approved the request of the
delegation of Turkey (E/CONF.2/C.3/77/Rev.1) for the insertion of a paragraph
and an Annex providing for preferences established under Article 15 between
countries belonging to the Ottoman Empire prior to 1923 and the request of
Venezuela (E/CONF.2/C3/79) for exemption for a period of five years for
special surcharges levied on products imported via certain territories.
Committee III adopted the recommendation that Article 42 should be
divided into three Articles dealing separately with the Territorial
application of ChapterIV, Frontier Traffic, and Customs Unions and
Free-Trade Areas. The first of these three Articles was amended by a
Working Party prior to final approval. The recommendation of the Sub-Committee
extending the third to cover free-trade areas as well as customs unions
was accepted, but the Committee decided to preface the first paragraph with
a statement recognizing the desirability of increasing freedom of trade by
/the development. E/CONF.2/C.3/89/Add.3
Page 7
the development of close integration between national economies through
voluntary agreements.
The text of Articles 16 and 42, as aproved in Second Reading, was
issued in E/CONF.2/C.3/85.
/SUB-COMMITTEE A Page 8
SUB-COMITTE A ON TARIFF NEGOTIATIONS, INTERNAL TAXATION
AND REGULTION
ARTICLES 16 to 19
Chairman - Mr. G. A. LANSVELT (Netherlands).
Members - The representatives of Australia, Brazil, China, Colombia
Cuba, Denmark, France, Mexico, Netherlands, Now Zealand, Peru, Turkey,
the United Kingdom, the United States and Uruguay. The delegate for Norway
replaced the delegate for Denmark when Articles 18 and 19 were under discussion.
Date of Appointment - Ninth meeting of Committee III, 12 December.
Number of Meetings - Thirty-eight.
Sub-Committee Report - E/CONF.2/C.3/59, 16 February.
Second. Reading in Committee II - 39th, 40th and 41st meetings on
18 to 20 February.
General Comments - In Article 16 two paragraphs were added: (1) to
bring into the text of the Article, from two of the Anexes, a provision
relating to the imposition of a margin of tariff preference to componsate
for the elimination of a margin of preference in an internal tax, and (2)
to give recognition to the principle that tariff descriptions based on
distinctive regional or geographical names should not be used in such a manner
as to discriminate against products of Member countries. Committee III
decided to transfer the second new paragraph to Article 35. Further, an
interpretative note defining the term "margin of preference" was appended to
Article 16 as had been done in the corresponding Article of the General
Agreement on Tariffs and Trade. In Annex the Sub-Committee altered the
provisions for the elimination, or their replacement by tariff preferences,
of certain preferential arrangements between the United Kingdom and Canada,
Australia and New Zeeland on the trade in meat.
In Article 17, the rules for the conduct of tariff negotiations between
Members were extended and clarified. Paragraph 4, relating to the failure
of a Member to carry out negotiations, was revised by the Sub-Committee,
and Committee III added "reconstruction" to the specified needs of Members
to be taken into account along with other relevant circumstances by the
Orginization in judging the justification for a failure to carry out
negotiations. This paragraph was further amended by the Co-ordinating
Committee of the Conference (B/CONF.2/C.3/68/Corr.3) in conjunction with the
over-all settlement of issues on economic development which included also the
decision that the Charter should not provide for the establishment of a
/Tariff Committee. E/CONF.2/C.3/89/Add.3
Page 9
Tariff Committee. This involved the deletion of paragraph .5 The
Sub-Committee added two interpretative notes to Article 17: the first
deals with the treatment of an internal tax, applied to a product which is
not produced domestically, as a custom duty in certain circumstances; .and
the second provides that the effects of the devaluation of a Member's currency
or of a rise in prices is to be taken into account in tariff negotiations.
Article 18, which deals with national treatment on internal taxation
and regulation, was extensively revised and clarified, but the general
principle that internal taxes and regulations should not be applied in
such a manner as to afford protection to domestic production was preserved.
The maintenance of this principle evoked some criticism in Committee III
during consideration of the Sub-Committee's Report and a special Working
Party was appointed to review the problem once more. The Report of the
Working Party (E/CONF.2/C.3/71) contained no definite recommendation; it was
discussed at the Forty-Second Meeting of the Committee on 8 March but it
was found that there was no substantial support for any change in the text.
The text of these Articles, as approved by Committee III in Second
Reading, was issued in E/CONF.2/C.3/68.
/SUB-COMMITTEE B E/CONF.2/C.3/69/Add.10
Page 10
SUB-COMMITTEE B ON DISCRIMINATION OF SHIPPING AND I SURANCE VICES
RTPLOEPO RT ICt1AER
Chairman - DLCr. E . HOLCLY WO(Union of South Africa).
Members Th-e representatives of Argentina, France, Greece, India, Norway,
Union of South Africa, United Kingdom andVene zuela.
itDa o of Aiiment - 10th meeting of Committee III, 16 December.
Number of Meetings - Five
Sub-Committee Report - E/CONF.2/C.3/h6, 6 Marc.
Second Ceading i ICommitteeIII - 43rd meeting.
General Comments:- The Sub-Committee concluded that it was desirable to
avoid an overlapping of functions and a possible conflict of activities between
the International Trade Organization and the Inter-Governmental Maritime
Consultative Organization and that therefore questions of shipping should not
be dealt with in the Havana Charter, Accordingly, the Sub-Committee recommended
that Article A should not be adopted and that Committee IV be asked to amend
Article 50 by adding a Provision that Chapter V should not apply to shipping.
The Committee decided to recommend to Committee IV that a satisfactory solution
be sought for the relation of shipping services to Chapter V in order to
avoid conflict with the IMCO. Committee IV inserted an Interretatpive Note
to Article 50 stimulating that the provisions of that Article would not apply
to matters relating to shipping services which are subject to the Charter of
the IMCO. In the light of the action taen byk Comitteem IV, Committee III
decided at the 46th meeting to adopt the first of the Sub-Committee's
recommendations, rejecting Article 18A.
TECOSKUEhTMg E/CONF.2/C;.3/89/Add.3
Page 11
SUB-COMMITTEE C GEMERAL COMMERCIAL PROVISIONS
ARTICLES 32 TO 39
Chairman -Mr. C. E. MORTON (Australia).
Members:- The representatives of Afghanistan, Argentina, Australia, Canada,
Cuba, France, Lebanon, Mexico, Netherlands, Pakistan, Portugal, the
United Kingdom, the United States and Uruguay. Norway was also appointed as a
member of the Sub-Committee but was succeeded after a few meetings by South Africa.
Date of Appointment - 15th meeting. 19 December.
Number of Meetings - Nineteen.
Sub-Committee Report - E/CCNF.2/C.3/38, 28 January.
Second Reading in Committee III - 30th, 31st and 32nd meetings on
31.January and 4 and 5 February.
General Comments - The amendments introduced by the Sub-Committee include:
(i) In Article 33, the insertion of a statement recogizing that dumping
is to be condemned if it causes or threatens material injury to an
established industry in a Member country or materially retards the
establishment of a domestic industry;
(ii) The insertion of an additional Interpretative Note on paragraph 3
of Article 34 allowing Members to continue in certain circumstances
with existing systems of applying ad valorem rates of duty to established
values;
(iii) The addition of a new paragraph to Article 35 giving recognition to
the principle that tariff descriptions based on distinctive regional
or geographical names should not be used in such a manner as to
discriminate against products of Member countries; and
(iv) The deletion of Article 39 on Boycotts.
In the course of discussion in Second Reading, Committee III established
two Working Parties whose reports are contained in E/CONF.2/C.3/41 and
E/CONF.2/C.3/48. These Reports were approved by Committee III at the 31st and
34th meetings; the first involved the insertion of an Interpretative Note on
paragraph 9 of Article 32 and the second introduced an extension of the Note on
paragraph 3 of Article 34 mentioned under (ii) above. Also the Committee agreed
to the deletion of a paragraph inserted by the Sub-Committee in Article 32 which
provided that transportation charges on traffic in transit were not to be
considered as falling within the purview of that Article, and added instead an
Interpretative Note to paragraphs 3, 4 and 5 explaining that the word "charges"
in the English text is not to be deemed to include transportation charges.
/At a subsequent meeting, E/CONF.2/C. 3/89/Add.3
Page 12
At a subsequent meeting the 36th, the Committee added a paragraph to
Article 33 dealing with systems for the stabilization of domestic prices which
result at times in the sale of products for export at prices lower than the
comparable prices charged for the like products to, buyers in domestic markets.
The paragraph thus added to Article 33 is similar to a paragraph in the
corresponding Article of the General Agreement on Tariffs and Trade.
..The text of Section E as approved in Second Reading was issued in
E/CONF.2/C 3/60 and E/CONF.2/C.3/60/Add.1
/SUB-COMMITTEE D E/CONF.2/C. 3/89/Add.3
Page 13
SUB-COMMITTEE D ON SPECIAL PROVISIONS
ARTICLES 40, 41 AND 43
Chairman - Mr. R. J. SHACKLE (United Kingdom)
Members - The representatives of Argentina, Belgium, Colombia, Denmark,
France, Iraq, Italy, Peru, Southern Rhodesia, United Kingdom and the
United States.
Date of Appointment - 17th Meeting, 22 December
Number of Meetings - Eight
Sub-Committee Report - E/CONF.2/C.3/37, 28 January
Second Reading in Committee III- 32nd and 33rd Meetings
General Comments - Only slight changes in the texts of Articles 40 and
41 were introduced by the Sub-Committee.In Article 43, two new exceptions
to the provisions of Chapter IV were inserted, namely, for measures necessary
to the enforcement of laws and regulations relating to public safety, and for
measures taken in pursuance of inter-governmental agreements relating to the
conservation of fisheries resources, etc.
During the -Second Reading by Conmmittee III, two Working Parties were
established; their reports (documents E/CONF.2/C.3/49 and E/CONF.2/C.3/52)
were approved at the 34th and 35th Meetings. The former introduced an
extension of the Intepretative Note to Article 40, dealing with the
non-discriminatory aspect of emergency action on imports of particular products,
while the latter postulated that situations developing from the fulfilment by
a Member of its obligations under Article 3 or 9 might constitute an "unforeseen
development" for the purpose of Article 40.
The Committee also considered and approved the proposal of the
representatives of Argentina, Ecuador, Guatemala and Uruguay
(document E/CONF.2/C.3/46/Rev.1) to add an Interpretative Note to Article 41.
on the obligations of Members to supply information on regulations for the
protection of human, animal or plant life or health.
The texts of Articles 40, 41 and 43, as approved by the Committee, were
issued in E/CONF.2/C.3/61,
/SUB-COMMITTEE E E/CONF.2/C.3/69/Add. 3
Page 14
SUB-COMMITTEE E ON QUANTITATIVE RESTRICTIONS
ARTICLES 20 AND 22
Chairman - Dr. J. E. HOLLOWAY (Union of South Africa)
Members - The representatives of Ceylon, Chile, China, Colombia,Egypt,
France, Ireland, Mexico, Netherlands, New Zealand,Peru, South Africa, Sweden,
the United Kingdom and the United States.
Date of Appointment - 21st Meeting, 30 December
Number of Meetings - Eleven
Sub-Committee Report - E/CONF.2/C.3/54, 12 February
Second Reading in Committee III - 37th Meeting, 16 February
General Comments - The Sub-Committee established nine Working Parties to
consider in detail the proposals contained in the Annotated Agenda.
In its Report to Committee III, the Sub-Committee recommended a few
changes in the text of the Articles and the addition of several interpretative
notes explaining and clarifying certain passages of the text,
In Article 20, the Sub-Committee inserted two sub-paragraphs. The first
provides that import restrictions on agricultural or fisheries products,
applied in connection with the enforcement of governmental measures of control
on domestic production or marketing, shall be applied only so long as those
measures are force and shall not operate in such a way as to prevent imports
in quantities sufficient to satisfy demand for current consumption during
times of the year when domestic supplies are not available. The second
requires that notice in writing of an intention to introduce import
restrictions shall be given to the Organization and to Members having a
Substantial interest in supplying the products concerned with a view to the
holding of prior consultations.
In Article 22, a sub-paragraph has been inserted providing for the release
of Members from the obligation of giving public notice of the total quantity
of .0 ..
or value of quotas when the interests of the Member concerned would be
prejudiced by reason of the fact that a large part of the imports of the
products affected are supplied by non-Members.
The amendments proposed by the Sub-Committee were adopted in Second
Reading and the revised text of Articles 20 and 22 was issued in
E/CONF.2/C 3/69
/SUB-COMMITTEE F E/CONF.2/C.3/89/Add. 3
Page 15
SUB-COMMITTEE F ON RESTRICTIONS TO SAFEGUARD BALANCE OF PAYMENTS
Chairman - Mr. J. MELANDER (Norway)
Members The representatives of Argentina, Australia, Begium, Brazil,
Canada, Cuba, Czechoslovakia, France, Grooco, India, Italy, Lebanon, Liberia,
Norway, the Philippines, the United Kingdom and the United States.
Date of Appointment - 25th Meeting, 5 January.
Number of Meetings Fourteen.
Sub-Committee Reports - E/CONF.2/C.3/57, 16 February, on Article 21
and E/CONF.2/C.3/91 15 March, on Articles 23 and 24.
Second Reading in Committee III - Article 21, 38th meeting, 17 February,
Articles 23 and 24, 47th meeting, 17 March.
General Comments - The main change Introduced by the Sub-Committee in
Article 21 was the insertion of a paragraph stating that it is primarily the
responsibility of each Member to safeguard its external financial position
and to achieve and maintain stable equilibrium in its balance of payments,
that the Organization should promote consultations and action for the purpose
of correcting maladjustments in the balance of payments, and that the
methods employed by Members to restore equilibrium should be those which
will expand rather than contract international trade.
This new paragraph and the other changes proposed by the Sub-Committee
in Article 21 were adopted by Committee III and the amended text was issued
inE/CONF.2/C.3/69.
The revision of Article 23 proved that the most difficult part of
the Sub-Committee's work. The Working Party on this Article hold meeting
regularly from 17 January until 15 March and eventually agreed to recommend
a substantially new text. It was evident, however, that the revised
provisions governing the exceptions to the rule of non-discrimination might
not meet the needs of all Members during te difficult transitional years
which still lie ahead, and therefore the principles of the original Geneva
draft were retained in an Annex. It has been laid down that a Member which
has provisionally accepted the principles of paragraph 1 of that text by
its signature of the Protocol of Provisional Application may elect, up to
the end of 1948, to operate during the transitional period under the Annex.
Article 23 itself defines the exceptions to the rule of non-discrimination
permissible during the post-war transitional period. This transitional
period and its application in respect of individual Members are defined by
reference to the Articles of Agreement of the International Monetary Fund.
/After the E/CONF.2/C.3/89/Add.3
Page 16
After the termination of the transitional period for each and every Member
provision is made for limited departures from the rule of non-discrimination.
The title of Article 24 was altered to read "Relationship with
International Monetary Fund and Exchange Arrangements" but no major changes
were introduced in the text.
The Sub-Committee recommended a change in the title of Section B to
read "Quantitative Restrictions and Related Exchange Matters". This was
[approved] by the Committee.
The text of Articles 23 and 24 as approved by Committee IlI in Second
Reading was issued in E/CONF.2/C.3/
/SUB-COMMITTEE G E/CONF.2/C.3/89/Add.3
Page 17
SUB-COMMITTEE G ON THE SWISS PROPOSAL
Chairman - Mr. L. P. THOMPSON-McCAUSLAND (United Kingdom)
Members - The representatives of Belgium, China, France, Poland, Sweden,
Switzerland, the United Kingdom, the United States, Uruguay and Venezuela.
Date of Appointment - 25th Meeting, 5 January.
Number of Meetings - Ten.
Sub-Committee Report - E/CONF.2/C.3/72, 28 February.
Second Reading in Committee III - 45th Meeting, 12 March.
General Comments - The Sub-Committee examined the request of the delegation
of Switzerland for the insertion of the following Article:
"A Member, unable to invoke the provisions of Article 21 and
finding that its economic stability, particularly in the fields
of agriculture and employment, is being seriously impaired or
gravely threatened, may take such steps as are necessary for
safeguarding its vital interests."
The Sub-Committee based its enquiries on the assumption that the Member
concerned was not eligible to impose quantitative restrictions under
Article 21 but was liable to suffer damage from restrictions imposed by other
Members under that Article. A variety of factors were discussed by the
Sub-Committee as possibly justifying special measures and while no single
factor was judged to be sufficient by itself to justify special treatment
the Sub-Committee agreed that a number of factors when taken together might
represent a combination of circumstances requiring special consideration.
The Sub-Committee found that the solution proposed by the delegation of
Switzerland would constitute too great a weakening of the principles of the
Charter. Accordingly, the Sub-Committee recommended that the Conference
should direct the Interim Commission to invite the Swiss Government to
participate in a study of the problems facing the Swiss economy with a
view to submitting to the first Conference of the Organization a report as
to the measures which could be taken in accordance with the procedures
established, in the Charter for dealing with the Swiss problem.
The Committee approved this recommendation.
/SUB-COMMITTEE H E/CONF.2/C.3/39/Add.3
Page 18
SUB-COMMITTEE H ON SUBSIDIES
ARTICLES 25 to 29
Chairman - Mr. E. McCARTHY (Australia), succeeded at the seventh meeting
by Mr. G. WARWICK SMITH (Australia).
Members - The representatives of Argentina, Australia, Brazil, Canada,
Cuba, Denmark, France, Netherlands, Peru, Philippines, Sweden, Turkey, the
United Kingdom, the United States and Venezuela.
Date of Appointnent - 27th meeting of Committee III, 7 January.
Number of Meetings - Eight.
Sub-Committee Report - E/CONF.2/C.3/51, 12 February.
Second Reading in Committee III - 36th meeting, 14 February.
General Comments - A large part of the work of the Sub-Committee was
performed by a Working Party which hold ten meetings.
The main changes in Section C are in Articles 27 and 28. The new
paragraph 5 (replacing paragraph 3 of the Geneva text) of Article 27 now permits
Members, considering their interests seriously prejudiced, to apply or maintain
export subsidies on primary commodities, without prior approval by the
Organization where Chapter VI procedure has failed or does not promise to
succeed or where an inter-governmental agreement is not an appropriate solution.
Paragraph 4 of Article 27 is a new provision prohibiting a Member from granting
a new subsidy increasing an existing subsidy, affecting the export of a prima
commodity, during a Commodity Conference dealing with that commodity, unless
the Organization concurs.
In the light of the relaxation of the provisions of Article 27, the
safeguards contained in Article 28 have been strengthened. In particular,
provision has been made, where consultation fails, for the Organization to
make determinations to which Members shall conform, and factors are specified
which, amongst-others, the Organization shall take into consideration in making
such determinations.
The text of the four Articles as approved by Committee III in Second Reading
was issued in E/CONF.2/C.3/63.
/SUB-COMMITTEE J ON E/CONF.2/C.3/89/Add. 3
Page 19
SUB-COMMITTEE J ON STATE TRADING
ARTICLES 30 and 31
Chairman Rt. Honourable Walter NASH (New Zealand).
Members - The representatives of Czechoslovakia, Ecuador, Egypt, Mexico
Netherlands, New Zealand, Pakistan, Switzerland, the United Kingdom and the
United States.
Date of Appointment - 28th meeting, 8 January.
Number of Meetings - Seven.
Sub-Committee Report - E/CONF.2/C.3/43, 3 February.
Second Reading in Committee III - 33rd and 34th meetings on 6 and
9 February.
General Comments - Articles 30 and 31 were not substantially altered by the
Sub-Committee but two new Articles were introduced. Article 30A entitled
"Marketing Organizations" provides that marketing boards, commissions or
similar organizations established or maintained by Members shall be subject to
the provisions of paragraph 1 of Article 30 with respect to their purchases and
sales and shall be subject to the other relevant provisions of the Charter with
respect to their regulations governing the operations of private enterprises.
The second new Article introduced by the Sub-Committee is entitled
"Liquidation of Non-commercial Stocks". This provides that any Member deciding
to liquidate stocks of a primary commodity accumulated for non-commercial
purposes shall give four months prior notice either publicly or to the
Organization and shall, upon request, consult with other Members as to the best
means of avoiding substantial injury to the economic interests of producers and
consumers of the commodities concerned.
Committee III referred this Article to a Working Party whose report was
issued in E/CONF.2/C.3/64 and was approved at the 41st meeting on 23 February.
The Article as amended by the Working Party contains a more precise
obligation on the part of the Member intending to liquidate such stocks to carry
out the liquidation in a manner that will avoid serious disturbance to world
markets; also it provides for participation of the Organization in consultations
where the interests of several Members might be substantially affected.
NOTE: Part 3 of this Draft Report, containing the text of twenty Articles of
Chapter IV as amended by the Central Drafting Committee and as approved
by Committee III, was issued in document E/CONF.2/C.3/89. The remaining
ten Articles and the Interpretative Notes to the whole Chapter will be
issued in separate documents. |
GATT Library | yd411qc6017 | Chapter IV: Commercial Policy Draft Report to the Conference Corrigendum to part I | United Nations Conference on Trade and Employment, March 17, 1948 | Third Committee: Commercial Policy | 17/03/1948 | official documents | E/CONF.2/C.3/89/Add.3/Corr.1 and E/CONF.2/C.3/89/ADD.3-95 | https://exhibits.stanford.edu/gatt/catalog/yd411qc6017 | yd411qc6017_90190205.xml | GATT_145 | 457 | 3,116 | United Nations Nations Unies UNRESTRICTED
E/CONF.2/C .3/89/
CONFERENCE CONFERENCE Add.3/Corr.1
ON DU 17 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
CHAPTER IV: COMMERCIAL POLICY
DRAFT REPORT TO THE CONFERENCE
CORRIGENDUM TO PART I
The following changes should be made in'the Draft Report:
1. In paragraph 7 on pages 2 - 4 the following reservations should be
deleted:
Article 17 - Guatemala, Denmark and the United Kingdom.
Article 23 - Greece
Article 24 - Mexico
Article 34 - India
and on pages 3 and 5 the following reservations should be added:
Article 24 - Argentina
Article 42B- New Zealand and, on pages 4 and 5, Australia.
2. In the Report of Sub-Committee F, on pages 15 to 16, the following changes
should be made:
In the penultimate paragraph. on page 15, the word "that" in the
first line should be deleted, and in the tenth line after the word
"Application" the words "to the General Agreement on Tariffs and Trade"
should be inserted.
The paragraph at the foot of page 15 and the top of page 16 should be
amended to read as follows:
"Article 23 itself defines the exceptions to the rule of non-
discrimination permissible during the post-war transitional period.
This transitional period and its application in respect of individual
Members are defined by reference to the Articles of Agreement of the
International Monetary Fund. The discriminatory measures, including
adaptations thereof, permitted under paragraph 1 of the Article may
be applied by a Member during the transitional period without the prior
approval of the Organization. After the termination of the transitional
period for each and every Member provision is made for limited departures
from the rule of non-discrimination with prior approval of the
Organization."
/In the third Page 2
In. the third. last line on Paragraph 16 the square brackets round the
word "approved" should be deleted, and the document reference in the last
line should read "E/CCNF.2/C.3/93."
3. In the Report of Sub-Committee G on page 17 the last two paragraphs
should be amended to read as follows:
"The Sub-Committtee found that the solution proposed by the
Delegation of Switzerland would constitute too great a weakeningc
of the principles of the-Charter. However, in view of the recognition
of the special consideration required to be given to the case of
Switzerland, the Sub-Committee recommended that the Conference should
direct the Interim Commission to invite the Swiss Government to
participate in a study of the problems facing the Swiss economy with
a view to submittnig.-to-the first Conference of th eOrganization a
report as.o6'the measures which could be taken in accordance with the
procedures established in the Charter for dealing with the Swiss
problem. .'
!The Cozmittee approved this recommendaticn." |
GATT Library | xx422pj8509 | Chapter IV: Commercial Policy Draft Report to the Conference Part II | United Nations Conference on Trade and Employment, March 15, 1948 | Third Committee: Commercial Policy | 15/03/1948 | official documents | E/CONF.2/C.3/89 and E/CONF.2/C.3/78-89/ADD.3 | https://exhibits.stanford.edu/gatt/catalog/xx422pj8509 | xx422pj8509_90190198.xml | GATT_145 | 10,582 | 69,036 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E/CONF.2/C.3/89
15 March 1948
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
CHAPTER IV: COMMERCIAL POLICY
DRAFT REPORT TO THE CONFERENCE
PART II
This part of the Draft Report of Committee III contains the texts
of the following Articles as approved after consideration of the Reports
of the Central Drafting Committee:
Section A - Articles 18 and 19
Section B - Articles 20 to 22
Section C - Articles 25 to 28
Section D - Articles 30 to 31A
Section E - Articles 32 to 38
The remaining Articles (16, 17, 23, 24, 40, 41, 42, 42A, 42B and 43)
as well as an Annex containing all the Interpretative Notes for Chapter IV,
will be issued separately.
/Article 18 E/CONF.2/C .3/89
Page 2
Article 18
National Treatment on Internal Taxation and Regulation
1. The Members recognize that internal taxes and other internal charges, and
laws, regulations and requirements affecting the internal sale, offering for
sale, purchase, transportation, distribution or use of products, and internal
quantitative regulations requiring the mixture, processing or use of products
in specified amounts or proportions, should not be applied to imported or domestic
products so as to afford protection to domestic production.
2. The products of any Member country imported into any other Member country
shall not be subject, directly or indirectly, to internal taxes or other internal
charges of my kind in excess of those applied, directly or indirectly, to like
domestic products. Moreover, no Member shall otherwise apply internal taxes or
other internal charges to imported or domestic products in a manner contrary to
the principles set forth in paragraph 1.
3. With respect to any existing internal tax which is inconsistent with the
provisions of paragraph 2 but which is specifically authorized under a trade
agreement, in force on April 10, 1947, in which the import duty on the taxed
product is bound against increase, the Member imposing the tax shall be free to
postpone the application of the provisions of paragraph 2 to such tax untiI such
time as it can obtain release from the obligations of such trade agreement in
order to permit the increase of such duty to the extent necessary to compensate
for the elimination of the protective element of the tax.
4. The products of any Member country imported into any other Member country
shalI be accorded treatment no less favourable than that accorded to like
products of national origin in respect of all laws, regulations, and requirements
affecting their internal sale, offering for sale, purchase, transportation,
distribution or use.The provisions of this paragraph shall not prevent the
application of differential internal transportation charges which are based
exclusively on the economic operation of the means of transport and not on
the nationality of the product.
5. No Member shall establish or maintain any internal quantitative regulation
relating to the mixture, processing or use of products in specified amounts or
proportion which requires, directly or indirectly, that any specified amount
or proportion of any product which is the subject of the regulation must be
supplied from domestic sources. Moreover, no Member shall otherwise apply
internal quantitative regulations in a manner contrary to the principles set
forth in paragraph 1.
6. The provisions of paragraph 5 shall not apply to any internal quantitative
regulaton in force in any Member country on July 1, 1939, April 10, 1947 or
/on the date E/CONF.2/C.3/89
Page 3
on the date of this Charter, at the option of that Member; Provided that any
such regulation which is contrary to.the provisions of paragraph 5 shall not be
modified to the detriment of imports and shall be subject to negotiations and
shall accordingly be treated as a customs duty for the purposes of Article 17.
7. No internal quantitative regulation relating to the mixture, processing or
use of products in specified amounts or proportions shall be applied in such a
manner as to allocate any such amount or proportion among external sources of
8. (a) The provisions or this Article shall not apply to laws, regulations
or requirements governing the procurement by govermental agencies of products
purchased for governmental purposes and not with a view to commercial resale or
with a view to use in the production of goods for commercial sale.
(b) The provisions of this Article shall not prevent the payment of
subsidies exclusively to domestic producers, including payments to domestic
producers derived from the proceeds of internal taxes or charges applied
consistently with the provisions of this Article and subsidies effected through
governmental purhases of domestic products.
9. The Members recognize that internal maximum price control measures, even
though conforming to the other provisions of this Article, can have effects
prejudicial to the interests of Member countries supplying imported products.
Accordingly, Members applying such measures shall take account of the interests
of exporting Member countries with a view to avoiding to the fullest practicable
extent such prejudicial effects.
Article 19
Special Provisions Relating to Cinematograph Films
The provisions of Article 18 shall not prevent any Member from establishing
or maintaining internal quantitative regulations relating to exposed
cinematograph films. Any such regulations shall take the form of screen quotas
which shall conform to the following conditions and requirements:
(a) Screen quotas may require the exhibition of cinematograph
films of national origin during a specified minimum proportion
of the total screen time actually utilized over a specified
period of not less than one year, in the commercial exhibition
of all films of whatever origin, and shall be computed on the
basis of screen time per theatre per year or the equivalent thereof.
(b) With the exception of screen time reserved for films of national
origin under a screen quota , screen time, including screen time
released by administrative action from time reserved for films /of national Page 4 E/CONF.2/C.3/89
of national origin, shall not be allocated formally or in effect
among sources of supply.
(c) Notwithstanding the provisions of sub-paragraph (b) any Member
may maintain screen quotas conforming to the requirements of
sub-paragraph (a) which reserve a minimum proportion of screen
time for films of a specified origin other than that of the
Member imposing such screen quotas; Provided that such
minimum proportion of screen time shall not be increased above
the level in effect on April 10, 1947.
(d) Screen quotas shall be subject to negotiating and shall
accordingly be treated as customs duties for the purposes
of Article 17.
/SECTION B E/CONF.2/C.3/39 Page 5
SECTION B -QUANTITATIVE RESTRICTIONS AND EXCHANGE CONTROL
Article 20. .::
GnenelE li izain0oafQanticiticaioesRestr 6tn
1biNons o re:rh~tro.bother tjhand r ec,is-xes o pothertaz orarges,
wheether made ceife through fetvquotas, impor export orcct iences or other
meaasureal, e instituted or mshlbtaiedinen or ana nt yer Me mbe ionthmportation
no producy off nyayother ea Mmcber ou nr tnrthy eoporoati e xr satonoole fr
rt of aexpony pro desdunec tti dnforay other Memcober y.runt
2. The provisiooons f paragra spalh 1htl nxo dete then to follo:wing
(a) re xpotiprohbit ionsosr retiontraics pplied forthe period
necessary to prevent or relieve crit sicalhortage s offoodstuffs
or other products essential to the exportMing ember country;
(b) impordt an export prohibitions or restrictions necessary to the
application of standards or regulations for the classification,
gra dingm or annrkeig comfm omodities in international trade; if,
n the opinion of the Organization, the standards or regulations
adopted by a Member under thssis ub-paragraph have an unduly
restrictive effect on trade, the Organization may request the
beur o revise the standards or regulations; Provided that it
shall not request the revision of standards internationaly
agreed prusuant to recomendations made under paragraph 7 of
Article 38;
(c) import restrictions on any agricultural of fiserhise product,
imported in any form, necessary to thee nforcement of governmental
measures which operate effectivel:y
i() to restrict the qunatities of th elike domestic product
permitted to be marketed or producde, or, if there is no
substantial domestic production of the like product, of
a domestic agricultural or fisherise product for which
the imported product can be directly substituted; or
(ii) to remove a temporary surplus of the like domestic product,
or, if ther eis no substantial domestic production of the
like product, of a domestic agricultural or fisheries
product for which the imported product can be directly
substituted, by making the surplus available to certain
groups of domestic consmeurs free of charge or at prices
below the current market level; or
/(iii) to E/CONF. 2/C.3/89
Page 6
(iii) to restrict the quantities permitted to be produced of any
animal product the production of which is directly dependent,
wholly or mainly, on the imported commodity, if the domestic
production of that commodity is relatively negligible.
3. With regard to import restrictions applied under the provisions of
paragraph 2 (c):
(a) such restrictions shall be applied only so long as the govermental
measures referred to in paragraph 2 (c) are in force, and, when
applied to the import of products of which domestic supplies are
available during only a part of the year, shall not be applied
in such a way as to prevent their import in quantities sufficient
to satisfy demand for current consumption purposes during those
periods of the year when like domestic products, or domestic
products for which the imported product can be directly
substituted, are not available;
(b) any Member intending to introduce restrictions on the importation
of any product shall, in order to avoid unnecessary damage to
the interests of exporting countries, give notice in writing as
far in advance as practicable to the Organization and to Members
having a substantial interest in supplying that product, in
order to afford such Members adequate opportunity for consultation
in accordance with the provisions of paragraphs 2 (d) and 4 of
Article 22, before the restrictions enter into force. At the
request of the importing Member concerned, the notification and
any information disclosed during the consultations shall be kept
strictly confidential;
(c) any Member applying such restrictions shall give public notice of
the total quantity or value of the product permitted to be
imported during a specified future period and of any change in
such quantity or value;
(d) any restrictions applied under paragraph 2 (c) (i) shall not be
such as will reduce the total of imports relative to the total
of domestic production, as compared with the proportion which
might reasonably be expected to rule between the two in the
absence of restrictions. In determining this proportion, the
Member applying the restrictions shall pay due regard to the
proportion prevailing during a previous representative period and
to any special factors which may have affected or may be affecting
the trade in the product concerned.
/4. Throughout
3. With regard to import restrictions applied under the provisions of
paragraph 2 (c): E/CONF .2/C.3/89
Page 7
4. Throughout this Section the terms "import restrictions" and "export
restrictions" include restrictions made effective through state-trading
operations.
Article 21
Restrictions to Safeguard the Balance of Payments
1. The Members recognize that:
(a) it is primarily the responsibility of each Member to safeguard
its external financial position and to achieve and maintain
stable equilibrium in its balance of payments;
(b) an adverse balance of payments of one Member country may have
important effects on the trade and balance of payments of
other Member countries, if it results in, or may lead to, the
imposition by the Member of restrictions affecting international
trade;
(c) the balance of payments of each Member country is of concern to
other Members, and therefore it is desirable that the Organization
should promote consultations among Members and, where possible,
agreed action consistent with this Charter for the purpose of
correcting a maladjustment in the balance of payments; and
(d) action taken to restore stable equilibrium in the balance of
payments should, so far as the Member or Members concerned find
possible, employ methods which expand rather than contract
international trade.
2. Notwithstanding the provisions of paragraph 1 of Article 20, any Member,
in order to safeguard its external financial position and balance of payments,
may restrict the quantity or value of merchandise permitted to be imported,
subject to the provisions of the following paragraphs of this Article.
3. (a) No Member shall institute, maintain or intensify import restrictions
under this Article except to the extent necessary
(i) to forestall the imminent threat of, or to stop, a serious
decline in its monetary reserves, or
(ii) in the case of a Member with very low monetary reserves, to
achieve a reasonable rate of increase in its reserves.
Due regard shall be paid in either case to any special factors which
may be affecting the Member's reserves or need for reserves, including,
where special external credits or other resources are available to it, the
need to provide for the appropriate use of such credit or resources.
/(b) A Member E/CONF.2/C.3/89 Page 8
(b) A Member applying restrictions under sub-paragraph (a) shall
progressively relax and ultimately eliminate them, in accordance with
provisions of that sub-paragraph, as its external financial position improves.
This provision shall not be interpreted to mean that a Member is required to
relax or remove such restrictions if that relaxation or removal would
thereupon produce conditions justifying the intensification or institution,
respectively, of restrictions under sub-paragraph (a).
(c) Members undertake:
(i) not to apply restrictions so as to prevent unreasonably the
importation of any description of merchandise in minimum
commercial quantities the exclusion of which would impair
regular channels of trade, or restrictions which would
prevent the importation of commercial samples or prvent
the importation of such minimum quantities of a product
as may be necessary to obtamain and maintain patent, trade
mark, copyright or similar rights under industrial or
intellectual property laws;
(ii) to apply restrictions under this Article in such a way as
to avoid unnecessary damage to the commercial or economic
interests of any other Member, including interests under
Articles 3 and 9. -
4. (a) The Members recognize that in the early years of the Organization
all of them will be confronted in vagryingw derees ith problems of economic
adjustment gresultin from the war. During this period the Organization shall,
when required to take decisions under this Article or under Article 23, take
full account of the difficulties wof post-ar adjustment and of the need which
aMember may have to use import restrictionss as a steps toward the
restoration iof equilibrium in ts balance of payments on a sound and lasting
basis.
(b) The Members recognize sthat, a a result of domestic policies
directed toward the fulfilment of a Member a obligations under Article 3
relating to the achievement and maintenance of full and produmpctive eloyment
and large and steadily growing demand, or its obligations under Article 9
relating to the ruaeconstction or developmennt of aidustril and other economic
resoaudrces n to sing otf st ndhrde rap-oaasof rductivity, such a Member may
find that demands for foreigng exchane on acfcommount ao prts nd other
current payments are absorbing the foreign exchange resources currently
e to avalablit in such a manner as to exercise pressure on its monetary
reshes 'wih would justify ithe' ntitution or maintenance ofn rstronictiois E/CONF.2/C .3/89
Page 9
under paragraph 3 of this Article. Accordingly, . '
(i) n oMember s ta be requireowoiithdraw or mdfy restrictions
which it is applying under this Articlre ona th ae gound that
change in such policies would render these rennstrictions uecessary;
(ii) any Member applying import restrictiorns rundlerma this Atice y
determine th incidence of the restrictions on imports of different
products or classes of productsa in such a wy as to give priority
to the importation of those products which are more essential in
the light of such policies.
(c) Members undertake, in carrying out their domestic policies, to
pay due regard to the need for restoring equilibrium in their balance of
payments on a sound and lasting basis and to the desirability of assuring
an economic employment of productive resources.
5. (a) Any Member which is not applying restrictions under this Article,
but is considering the, need to do so shall, before instituting such
re)st,rictions (or in circumstances in which prior consultation is impracticable,
immediatgelgy after doin so), consult with the Organization as to the nature
of its balance-of-payments difficulties, alternative corrective measures
which may be available, and the possible effect of such measures on the
economies of. o.ther Members No Member shall be required in the course of
consultations under this sub-paragraph to indicate in advanceo the choice r
ti m r?ofa?paticlar measure wh ich' itma ultimately determine to adopt.
(b) The Orginization may at any time invite any Member which is
applying import restrictions under this Article to enter into such
consultation s ,withit and shall invite any Member substantially intensifying
such restrictions to consult within thirty days. A Memuber ths invited shall
participate in the consultations. The Organization may invnites ay other
Member to take part in the consultations. Not later than two years from the
day on which this Charter enters into force, the Organizshation all review
all restrictions existing on that day and still applied under this Article
at the time of the review.
(c) Any Member may consult with the Organization with a view to
obtaining the prior approval of the Organization for restrictiohns whhich te
Member proposes, under this Article, to maintain, intensify or institute,
or for the maintenance, intensification or institution of restrictions under
specified futurecond.itions As a resultofc ssuch onulstation, the
Ornzonatid my approvae n ancsaedevm,mh anancteinne' nes otrca orion
institution of restrictionys b the Member qins uetion i nsrofa the general
extent, degree of intensity and duration of the restrictions are concerned,
/To the extent E/CONF.2/C .3/89
Page 10
To the extent to which such approval has been given, the requirements of
sub-paragraph (a) of this paragraph shall be deemed to have been fulfilled,
and the action of the Member applying the restrictions shall not be open
to challenge under sub-paragraph (d) of this paragraph on the ground that
such action is inconsistent with the provisions of sub-paragraphs (a) and
(b) of paragraph 3.
(d) Any Member which considers that another Member is applying
restrictions under this Article inconsistently with the provisions of
paragraphs 3 or 4 of this Article or with those of Article 22 (subject to
the provisions of Article 23) may bring the matter to the Organization for
discussion; and the Member applying the restrictions shall participate in
the discussion. If, on the basis of the case presented by the Member
initiating the procedure, it appears to the Organization that the trade of
that Member is adversely affected, the Organization shall submit its views
to the parties with the aim of achieving a settlement of the matter in
question which is satisfactory to the parties and to the Organization. If
no such settlement is reached and if the Organization determines that the
restrictions are being applied inconsistently with the provisions of
paragraphs 3 or 4 of this Article or with those of Article 22 (subject to
the provisions of Article 23), the Organization shall recommend the withdrawal
or modification of the restrictions. If the restrictions are not withdrawn
or modified in accordance with the recommendation of the Organization within
sixty days, the Organization may release any Member from specified
obligations or concessions under or pursuant to this Charter towards the
Member applying the restrictions.
(e) In consultations between a Member and the Organization under this
paragraph there shall be full and free discussion as to the various causes
and the nature of the Members balance-of-payments difficulties. It is
recognized that premature disclosure of the prospective application,
withdrawal or modification of any restrictions under this Article might
stimulate speculative trade and financial movements which would tend to
defeat the purposes of this Article. Accordingly, the Organization shall
make provision for the observance of the utmost secrecy in the conduct of
any consultation.
6. If there is a persistent and widespread application of import
restrictions under this Article, indicating the existence of a general
disequilibrium which is restricting international trade, the Organization
shall initiate discussionsn to consider whether other measures might be taken,
either by those Members whose balances of payments are under pressure or by
/those Members E/CONF. 2/C.3/89
Page 11
those Members whose balances of payments are tending to be exceptionally
favourable, or by any appropriate inter-governmental organization, to remove
the underlying causes of the disequilibrium. On the invitation of the
Organization, Members shall participate in such discussions.
Article 22 -
creNonnDisiiatory Administration of Quantitative Restrictifns
1ohi.rc4bt n.or rstrctiio lonLal be appleioed bany emberon - the
i otarion 1l fan uporduct o e-ayn other eMgrr e cunonry o r. thn. xpeetartion
of any prouct ddsetined for any other Member country, unless the improattino
of th likeep rodcut fo all third countries or the exporattino foth h liek
product a tlhird ocnutries is similarl yprohibited or restrictd.t
2. Inapopyilg nimport restrictions to any produc, tMebmers hsll aai mat
a distribution of trade in such product approaching as closel yas oapsible
t othesha rs wehic hhetv arious Member countries mgith be expcted et obtaoni
in the asenbce of scuh restrictions, and to this and hasll osbrvse
followign provisins:o - ...-. a;--
(a) whemountrever practicable, quotas representing the total a of
p .-.nd irsta (rwheter allocate gmong suplying coutrie o
dancd. bue xed,ac ordanceand notice given of their. amon in "AcWd
wth -aagraph .:; ...... ... .
r(b)r ctionsin ases in ~ic quotas are.-otpacticable,, he,est .
may bwiehout a applied by means of import licences or ermits .t
e(ac ng quotbsrs .sEhaln,except for purposes of opqr i 1q~a.
alol td-isn.aragrachrdnce with sub-paragraph .(d) f, thi. pa r
jqtiliu thort heimport licences or permits be ,u1lefpr t
icnpropoficu trhcoun ryproduct concerned from. a partl la oqt
sor R ;_ -- . :. . -i
().i cqq n whh; aqqot s alloted among supplying ooun ies
the)mbr aplying the restrictions ay. sek.rQezenth
respect to the allocation of shares in the qot with all other-
ems rhb nubntital-iteresn suppn.the produc
oczqrd, In ases: i wthoh hinablys mthod is8 no reao P -
p-cicabe, s the Member coMnmcer counrriesned-all allot to .eejn5
ing* st asb stntialn nte .erdeat nsures pflyig .thbpruc- shao
tor h 9l.ojiimpoi lute. fo rtoo ct btshdeeup.rVoMaqe& io
th proportions, supplied mbeby such Me. countries during a
previous representative period, due account being taken of any
special E/CONF.2/C.3/89
Page 12
special factors which may have affected or may be affecting the
trade in the product. No conditions or formalities shall be
imposed which would prevent any Member country from utilizing
fully the share of any such total quantity or value which has
been allotted to it, subject to importation being made within
any prescribed period to which the quota may relate.
3. (a) In the case of import restrictions involving the granting of
import licences, the Member applying the restrictions shall provide, upon
the request of any Member having an interest in the trade in the product
concerned, all relevant information concerning the administration of the
restrictions, the import licences granted over a recent period and the
distribution of such licenses among supplying countries; Provided that there
shall be no obligation to supply information as to the names of importing or
supplying enterprises.
(b) In the case of import restrictions involving the fixing of quotas,
the Member applying the restrictions shall give public notice of the total
quantity or value of the product or products which will be permitted to be
imported during a specified future period and of any change in such quantity
or value. Any supplies of 'the product in question which were en route at
the time at which public notice was given shall not be excluded from entry;
Provided that they may be counted, so far as practicable, against the quantity
permitted to be imported in the period in question, and also, where necessary,
against the quantities permitted to be imported in the next following period
or periods, and Provided further that if any Member customarily exempts from
such restrictions products entered for consumption or withdrawn from
warehouse for consumption during a period of thirty days after the day of
such public notice, such practice shall be considered full compliance with
this sub-paragraph.
(c) In the case of quotas allocated among supplying countries, the
Member applying the restrictions shall promptly inform all other Members
having an interest in supplying the product concerned of the shares in the
quota currently allocated, by quantity or value, to the various supplying
countries and shall give public notice thereof.
(d) If the Organization finds, upon the request of a Member, that the
interests of that Member would be seriously prejudiced by giving, in regard
to certain products, the public notice required under sub-paragraphs (b) and
(a) of this paragraph, by reason of the fact that a large part of its imports
of such products is supplied by non-Member countries, the Organization shall
release the Member from compliance with the obligations in question to the
/extent and E/CONF. 2/C. 3/89
Page 13
extent and for such time as it finds necessary to prevent such prejudice.
Any request de by a Member pursuant to this sub-paragraph shall be acted
upon promptly by the Organization.
4. With regard to restrictions applied in accordance with the provisions
of paragraph 2 (d) of this Article or under the provisions of paragraph 2 (c)
of Article 20, the selection of a representative period for any product and
the appraisal of any special factors affecting the trade in the product shall
be made initially by the Member applying the restrictions; Provided that such
Member shall, upon the request of any other Member having a substantial
interest in supplying that product, or upon the request of the Organization,
consult promptly with the other Member or the Organization regarding the need
for an adjustment of the proportion determined or of the base period selected,
or for the re-appraisal of the special factors involved, or for the
elimination of conditions, formalities of any other provisions established
unilaterally with regard to the allocation of an adequate quota or its
unrestricted utilization.
5. The provisions of this Article shall apply to any tariff quota instituted
or maintained by any Member and, insofar as applicable, the principles of
this Article shall also extend to export restrictions.
/SECTION C E/CONF. 2/C .3/89
Page 14 .
SECTION C - SUBSIDIES
.Article 25
Subsidies in General
If any Member grants or maintaince any subsidy including any form of income
or, price support which operate directly or indirectly to maintain or
increase export of any product from, or to reduce, prevent an increase
in, imports of any product into, its territory, the Member shall notify
the Organization in writing of the extent and nature of the subsidization,
of the estimated effect of the subsidization on the quantity of the affected
product or products imported into or exported from its territory and of the
circumstances making the subsidization necessary. In any case in which a
Member considers that serious prejudice to interests is is caused or
threatened by a such subsidization, the Member granting the subsidy shall
upon request, discuss with the other Member or Members concerned, or with
the Organization, the possibility of limiting the subsidization.
Article 26 -
Additionalo Provisions n Export Subsidies
1. No Member shall grant, directly or indirectly, subsxidy on the eport
of or eanay product stblish or maintain any other system, which subsidy or
sy istem resultsn the sale of such product for expceort at a pri lower
tahan the cco cmprabe priehhalrge predu tyfor te ikoid to buyers n the
et dt>stMueg malowne gbforediinei -ad e ofes nond the-cnsiditi
armn d taeesoffrsl,f o difesrence, in taxation, and foer othr differences
affectricngc piera ompab.ility
2.The exemption of exported products from duties or taxes imposed in respect
of like products when consumed domestically, or the remission of such duties
or taxes in amounts not in excess of those which, have ac,crhued sall not
be deeomed t be in con flictwith the provisions of paragI.raph The use
of the proceeds of such duties or taxes to make payments to domesticuve procrs
f rah e sahesetproducts s shlab l b consideredeadtc6 caununsederArct i l 25
3. Mmebers shall give effect to the prvoisions of paragraph 1 at teh
earlies tparticcable dat ebut not later than two years from the day on which
thi sCahrter enter sinto force. If any Member considers itself unabledt od oso
inr espct eof an pyarticular product o rproducts, sallh, a t leas tthree
months before th eexpiraion otfs uch epriod give notice in writing to the
Organization, equrstineg a specific extension of the period. Suc hnotice shall
be accompanied by a full analysis of the system in question and hte
/circumstances E/CONF. 2/C. 3/89
Page 15
circumstances justifying it. The Organization shall then determine whether
the extension requested should be made and if so, on what terms.
4. Notwithstanding the provisions of paragraph 1, any Member may subsidize
the exports of any product to the extent and for such time as may be necessary
to offset a subsidy granted by a non-Member affecting the Member's exports
of the product. However, the Member shall, upon the request of the
Organization or of any other Member which considers that its interests
are seriously prejudiced by such action, consult with the Organization or
with that Member, as appropriate, with a view to reaching a satisfactory
adjustment of the matter.
Article 27
Special Treatment of Primary Commodities
1. A system for the stabilization of the domestic price or of the return to
domestic producers of a primary commodity, independently of the movements
of export prices, which results at times in the sale of the commodity for
export at a price lower than the comparable price charged for the like
commodity to buyers in the domestic market, shall be considered not to
involve a subsidy on export within the meaning of paragraph 1 of Article 26,
if the Organization determines that 9
e( ora) the y-m has also resuuult,ltlti so designed as to res.
in the sale of the commodityaoran export at a price higher th8
than the coemparable price coharged for th like commodty t
buyers in the domestic maret; and
(b) the system is so operated, or is designed so to operate, either
because of the effective regulation of production or otherwise.
as not to stimulate exports unduly or otherwise seriously prejudice
the interests of other Members. .
2. Any Member granting a subsidy in respect of a primary commodity shall
-p,eate ,auit all times in efforts to negotiate agreements: nr the procedures
set forth in Chapter V, with regard to that commodity.
3. In any case involving a primary commodity, if a Member considers that
its interests woulde be seriously prejudiced by compliance with th provisions
of Article 26, our ita uMeymber considers that its interests are seriosl.
prejudiced by the granting of any form of subsidy, the procedures, set forth
in Chapter VI may be followed. The Member which considers that its interests
are thus soiouslyionally prejudiced shall, however, be exempt provisl
from the requirements of paragraphs 1 and 3 of Article 26 in respect of that
commodity8, but shall be subject to the provisions of Article 2
/ r E/CONF. 2/C.3/89
Page 16
4. No Member shall grant a new subsidy or increase an existing subsidy
affecting the export of a primary commodity, during a commodity conference
called for the purpose of negotiating an inter-governmental control agreement
for the commodity concerned unless the Organization concurs, in which case
such new or additional subsidy shall be subject to the provisions of Article 28.
5. If the measures provided for in Chapter VI have not succeeded, or
do not promise to succeed, with in a reasonable period of time, or if the
conclusion of a commodity agreement is not an appropriate solution, any
Member which considers that its interests are seriously prejudiced shall not
be subject to the requirements of paragraphs 1 and 3 of Article 26 in
respect of that commodity, but shall be subject to the provisions of
Article 28.
Article 28
undertaking regarding Stimulation of
Exports of Primary Commodities
1. Any Member granting any form of subsidy, which operates directly or
indirectly to maintain or increase the export of any primary commodity
from its territory, shall not apply the subsidy in such a way as to have
the effect of maintaining or acquiring for that Member more than an equitable
share of world trade in that commodity.
2. As required under the provisions of Article 25, the Member granting such
subsidy shall promptly notify the Organization of the extent and nature
of the subsidization, of the estimated effect of the subsidization on the
quantity of the affected commodity exported from its territory, and of
the circumstances making the subsidization necessary. The Member shall
promptly consult with any other Member which considers that serious
prejudice to its interests is caused or threatened by the subsidization.
3. If, within a reasonable period of time, no agreement is reached in
such consultation, the Organization shall determine what constitutes an
equitable share of world trade in the commodity concerned and the Member
granting the subsidy shall conform to this determination.
4. In making the determination referred to in paragraph 3, the Organization
shall take into account any factors which may have affected, or may be
affecting world trade in the commodity concerned, and shall have particular
regard to:
a). the Member country's share of world trade, in the commodity during a
previous representative period;
(b) whether the Member country's share of world trade in the commodity
is so small that the effect of the subsidy on such trade is likely
/to be of minor E/CONF.2/C. 3/89
Page 17
to be of minor significance; .
c the e t era a oaf Imnp~nan ommod6ommdhe ecxrnhe c 4Uity
tothe-ogonothte Megmber-g andcnroity aerseatin, it heeanmi
countries materially affected by, the sjusyiydt;ybs oon
istence ofs cncfosrminabilzaonisys emseato c n rming to thofo e
s ro paviyow-'-vraph of Arti;cle 27 -
e)'h . eeililit-of gfcolitatnGa the rasion ofduli expant4$*-
exprduetn forse po sian thoia'ar %bl o sa tiskfy wordamare
Us mf ehti:tbe omdty concerned in the mot effectate andBts'Utid
ioid maner, and therefore oif lmngitipy subs anes or ott baiir*
ms eaurewhice th makhat expansion diff.icult '; -
/STION D E/CONF.2/C.3/89 Page 18
SECTION D- STATE TRADING AND RELATED MATTERS
Article 30
1. (a) Each Member undertakes that if it establishes or maintains a state
enterprise, wherever located, or grants to any enterprise, formally or in
effect, exclusive or special privileges, such enterprise shall, in its
purchases or sales involving either imports or exports act in a mannerTn
nsia eQn with the genert principls 'o non-discrem atory trzetmetii
presrcibed in this Charter for goervnmental measures affecting mporits or
exports by private traders.
b() The provisions f osub-paragraph (a) shall be understood to require
that suc henterprises s hlla due rgeard to the other provisions of
this hCarter, make anys uc hpurchases or sales solely in accordance with
commercial consieratidon sinlucdin gpirce, quality, availability,
amrketabiliy, tt ansporrtation and otehr conditions of purchase or sale, and
shall afford the enterprises of the other Member countries adequate opportunity,
in ccoardnce waithc ustmaroy bsuiness practicse, to compete ofr praticipation
i n suhc purchass eor sales -
(c) o Member sallprevent any enterprise (whether or not an enterprise
its jurisdiction f m acting rodescoribed i-euragrah ) "Wer Ie ritr
accordance with the pr).inciples of sub-paragrphs (a) and (b
2. The provisions f paragr praph-lsal l not apply to imports of''ucts
purhsena overnmental -prposs nd. ot wit a view to commercial resale
or Woth a on vfiewto6son te-mprducipn o gs for' comecial sale. ;With
respect tou ch imports and withrespect to the laws, regulations and
requirements referred to in paragraphs 8 (a) of mArtiscie 18, each Meber hall
aocorae thhe-t d h& oter embers .fair ad equitab.le treatment
Article 2L....
zaeting O-ganiion , -
similr shallblirs commihes or maintains a marketing boad,.css or
inia organijzct:yaio,; themer shallbe suEbsea:.: . >
svih orgthrizaeisn, topect tourch~er. al *an:ucpans ito .
te he; Provisons offparalahi oAtirlo30J.-.;
(b sWit organhz rion governingspect to an r egulins -of fnyech'r .t
thao o e af Pipsno te 0tharreevaut:
poviarsions f-thsaChte r
/Article 31 E/CONF. 2/C. 3/89
Page 19
Article 31
Expansion of Trade
1. If a Member establishes, maintains or authorizes, formally or in effect,
a monopoly of the importation or exportation of any product, the Member shall,
upon the request of any other Member or Members having a substantial interest
In trade with it in the product concerned, negotiate with such other Member
or Members in the manner provided for under Article 17 in respect of tariffs,
and subject to all the provisions of this Charter with respect to such
tariff negotiations, with the object of achieving:
(a) in the case of an export monopoly, arrangements designed to
limit or reduce any protection that might be afforded through
the operation of the monopoly to domestic users of the
monopolized product, or designed to assure exports of the
monopolized product in adequate quantities at reasonable
prices;
(b) in the case of an import monopoly, arrangements designed to
limit or reduce any protection that might be afforded through
the operation of the monopoly to domestic producers of the
monopolized product, or designed to relax any limitation on
imports which is comparable with a limitation made subject to
negotiation under other provisions of this Chapter.
2. In order to satisfy the requirements of paragraph 1 (b), the Member
establishing, maintaining or authorizing a monopoly shall negotiate:
(a) for the establishment of the maximum import duty that may be
applied in respect of the product concerned; or
(b)for any other mutually satisfactory arrangement consistent with
the provisions of this Charter, if it is evident to the
negotiating parties that to negotiate a maximum import duty
under sub-paragraph (a) of this paragraph is impraticable
or would be ineffective for the achievement of the objectives
of parag;raph 1;
any Member entering into negotiations under this sub-paragraph shall afford
to other interested Members an opportunity for consultation.
3. In any case in which a maximum imports duty is not negotiated under
Paragrapha 2 (a), the Member establishing, maintaining or authorizing the
import monopoly shall make public, or notify the Organization of, the
maximum import duty which it will apply in respect of the product concerned.
4. The import duty negotiated under paragraph 2, or made public or notified
/to the Page 20
to the Organization under paragraph 3, shall represent the maximum margin
by which the price charged by the import monopoly for the imported product
(exclusive of internal taxes conforming to the provisions of Article 18,
transportation, distribution and other expenses incident to the purchase,
sale or further processing, and a reasonable margin of profit) may exceed
the landed cost; Provided that regard may be had to averege landed costs
and selling prices over recent periods; and Provided further that, where
the product concerned is a primary commodity which is the subject of a
domestic price stabilization arrangement, provision may be made for
adjustment to take account of wide fluctuations or variations in world
prices, subject where a maximum duty has been negotiated to agreement between
the countries parties to the negotiations.
5. With regard to any product to which the provisions of this Article apply,
the monopoly shall, wherever this principle can be effectively applied and
subject to the other provisions of this Charter, import and offer for sale
such quantities of the product as will be sufficient to satisfy the full
domestic demand for the imported product, account being taken of any
rationing to consumers of the imported and like domestic product which may
be in force at that time.
6. In applying the provisions of this Article, due regard shall be had for
the fact that some monopolies are established and operated mainly for social,
cultural, humanitarian or revenue purposes.
7. This Article shall not limit the use by Members of any form of assistance
to domestic producers permitted by other provisions of this Charter.
Article 31A
Liquidation of Non-Commercial Stocks
1. If a Member holding stocks of any primary commodity accumulated for
non-commercial purposes should liquidate such stacks, it shall carry out
the liquidation, as far as practicable, in a manner that will avoid serious
disturbance to world markets for the commodity concerned..
2. Such Member shall:
(a) give not less than four months public notice of its intention to
liquidate such stocks; or
(b) give not less than four months prior notice to the Organization
of such intention.
3. Such Member shall, at the request of any Member which considers itself
substantially interested, consult as to the best means of avoiding substantial
/injury ECONF. 2/C.3/89
Page 21
injury to the economic interests of producers and consumers of the primary the primary
commodity in qcuesstion. In cases where the interests of several Members might
be substantially affected, the Organization may participate in he
consultations, and the Member holding the stocks shall give due consideration
to its recommendations. -
4. oeissly ovisoutine disposilons of paragraphs 2 and 3 shall not appto rqAp
of upplies necessary for the rotation of stocks to avoid deterioration.
/SECTION E E/CONF.2/C. 3/89
Page 22
SECTION E -GENERAL COMMERCIAL PROVISIONS
Article 32
Freedom of Transit
1. Goods (including baggage), and also vessels and other means of transport,
shall be deemed to be in transit across the terrirtory of a Member country,
when the passage across such territory, with or without trans-shipment,
warehousing, breaking bulk or change in the mode of transport, is only a
portion of a complete journey beginning and terminating beyond the frontier
of the Member country across whose territory the traffic passes. Traffic of
this nature is termed in this Article "traffic in transit".
2. There shall be freedom of transit through each Member country, via the
routes most convenient for international transit, for traffic in transit to
or from other Member countries. No distinction shall be made which is based
on the flag of vessels, the place of origin, departure, entry, exit or
destination, or on any circumstances relating to the ownership of goods, of
vessels or of other means of transport.
3. Any Member may require that traffic in transit thyrough its territory
be entered at the proper custom house, but, except in case of failure to
comply with applicable customs laws and regulations, such traffic coming
from or going to other Member countries shall not be subject to any
unnecessary delays or restrictions and shall be exempt from customs duties.
and from all transit duties or other charges imposed n respect of transit,
except charges commensurate with administrative expenses entailed by transit
or with the cost of services rendered.
4n All charges and regulations imposed by Members on traffic in transit
to or from other Member countries shall be reasonable, having regard to the
conditions of the traffic.
5. With respect to all charges, dregulations and fromalities in connection
with transit, each Member shall accord to traffic in transit to or from any
other Member country treatment no less favourable than the treatment accorded
to traffic in transit to or from any third country.
6. The Organization may undertake studies, make recommendations and
promote international agreement relating to the simplifiscation of customs
regulations concerning traffic in transit, the equitable use of facilities
required for such transit and other measures designed to promote the
obectives of this Article, Members shall co-operate with each other.
directly a through the Organization to this end
7. Each Member shall accord to goods which have been in transit through
/any other. E/CONF. 2/C. 3/89
Page 23
any other Member country treatment no less favourable than that which would
have been accorded to such goods had they been transported from their place
of origin to their destination without going through such other Member country.
Any Member shall, however, be free to maintain its requirements of direct
consignment existing on the date of this Charter, in respect of any goods in
regard to which such direct consignment is a requisite condition of eligibility
.of *-..
for entryof the goohads ot pron hferheential rates of duty or ' relatico tb
Membere rescribed method of valuation for customs purposes.
8 Tharovisions o* hs Article shall not apply to the operation of
aircraft in transit, but shall apply to air transit of goods including
baggage)
Artil. 3
Anti-dumping and Countervailing Duties
1du ping, Thwe hareogztat umnooincounicoung cts of O0ne ONtry.
hare intrdced into ier at commerce of anothnountrnrrmaly at less than the p
s, value of the pred iodttp, to.b eondhtemnmat matericlauses.orhratens rata
isind ie ur ry o 'neseiaheAusaerialbermaterially retarde country. or .z rrIQ
of a ind the .esta blis -usty,s of F>or teri lu,rpose-thisA t~lcj
p cro idcommeo be-onstereas being niontro commerce of anduced i.t th.&
imathlese prod t s tmahanal ts-noruhl ve, ef tbfhe productehte pric f trq1
e country exportedto. -another - . -.u: .:. - xij- tt
th the ordgnary courseian:-'the compabe, price, in .
oneumption- _ike rduct endeatined..fn nsxrmig-
orting country, or, . . _
,(bYs lescf-han teo£;such doms rie . i2es t3a ither.
~t hcm pikeaable pid er for .te lI epouctf\ -
export to any third c course ountry in the ordinaryof
trg, or; ...',- . ;;_2 &
ost oioutryns'poctioA he_ rodictn4he. c j,
on fo aseslongfcopstfar ble addii-r. sl=linp 'o-f;
eah caseiff foncer i conditionsn- d~Ifere;eaj>¢W OxW,,
on,sn oreinrtaxation, and for othtr differenceseohdiferenc forfferen
bility.t yv :. .* wb__ d :tX~,_*
evy dymany dumpedrevent dung,a Mefier : ay
ny not f duempingroduco thjn the margin of dumpingat greatQrt - r0lp .
letehoduo,1.;r thrpis oe oclf, the margri ofngXth4Ai¢ey isn
duempinein g dcifrdarce woih the provisionsenoe et.rmedinaococIx
of /3. 1 E/CONF. 2/C.3/89
Page 24
3. No countervailing duty shall be levied on any product of any Member
country imported into another Member country in excess of an amount equal to
the estimated, bounty or subsidy determined to have been granted, directly or
indirectly, on the manufacture, production or export of such product in the
country of origin or exportation, including any special subsidy to the
transportation of a particular product. The term "cointervailling duty" shall
be understood to mean a special duty levied for the purpose of offsetting any
bounty or subsidy bestowed, directly or indirectly, upon the manufacture,
production or export of any merchandise.
4. No product of any Member country imported into any other Member country
shall be subject to anti-dumping or countervailing duty by reason of the
exemption of such product from duties or taxes borne by the like product when
destined for consumption in the country of origin or exportation, or by reason
of the refund of such duties or taxes. -
5. No product of any Member country imported into any other Member country
shall be subject to both anti-dumping and countervailing duties to compensate
for the sae situation of:dumping or export subsidization.
6 NoMeber shall levy any anti-dumping or countervailing duty on the-.
importration of any pod uct of anotherMember ciountry unlesss t determine
that the effect ofthe dumping or subsidization, as the casse may be, is uch
at to cause or -reaten material injury to an established domestic industry,
or is such as to retardmaterially the establishment of a do.me.stic industry
The Organization may waive the requirements of this paragraph so as to permit
a Member to levy an anti-dumping or countervailieng duty on th importation
ofr arny product fo the purpose of offse tting dumpingor subsidization which
causes or threatens material injury to an industry in another Member country
peportind.iodut conce ir imnoreto the.-mpt Mem.be.r ountry,
7. fA syst stem lior theabi tzation ofhe domcesticof prie orurn the ret
to domestic producers of a primary commoedity, indpeondent moleye f thevemnts
of export prices, which results ant timses i the ale mof the comodity for
eport atwa pweeraaace ov tn the comparable price charged for the like
commodity to buyers in the domestic market, shall be presume d sultnot tore
i marwalrynjwiu thinthe meaning par o f-aa6 i s p is ereterminedmntt by
consultataion moheng t Membsers ubstantianllety nedrsn te ithmmedity coo
concerned that: - - . - .
d io) the system omm ditys' ls eatiteJ leof thecWxom4.
or export amparablt a ice c prgehrice higher than the co .pcha
for the likeme commodmirket, atdy to buyers in the dostic an
(b)t the esyust oe tme ef ective,s o perated eiher b.case->h'i
regulast as noi be stimulateon of production, or therwiet
export E/CONF. 2/C. 3/89
Page 25
exports unduly or otherwise seriously prejudice the interests -
of oretMe embers - -; :
Article 34
Vauatn for Customs Purposes,* -
acable,or1 h vpbscal wo'tQyathe s aas pracitiQable,
orc defintiou def emrvaluseadv lProeures fsor &etem he - Nau roduct
usbJt t roustcs eutieao-ote carges ore restn rictions basd. upo o .
rneegulated in ny manr by val ue . With a view to.uthering co-operation
tganoz ion mtismtuddm.n rthrzme.i~ac Membe ay ac econd trs suh bases
rro aetrr,mndng methom ii c valmsue rpofos r outoobiuos. s wuld appear best
suited to thcommee needs of rce and most capable ofgeneral adoption.
2. The Members recognize t he validityof the general principles of
valuation set forth in pargraphs 3, 4 and 5, and they undertake to give
effect, at ther earliest pacticable date, to these pr inciples inrespect of
all produ ct s subj ecttodutiesor other restrictions charges or on importation
basednpon or regunlat.d in ay mann.erby value Moneover, they nshall, upo
a request by manother Meber directly afvfected, reiew in the helight of tse
principlratesn ot hey oopteio fan f heir laws or regulations relating to value
s purposes. for.pae8j,ganization may request from Members reports on
steps taken t byhin pemsuance u rhofte provins sisof this Article.
3. (a) The va fol custou purpose of muoimported merchadise should behoU.4 be Y
al anieo which .of thempormted ndiercha'ieic ond hgh utyis
ed, or of likefmerchaniise, d o should n mbn eli bs on the vaule of1 0
merchandiof se nonal aorti igin or on arbitrary for,ictitiouslue .vas
"Actual value" should ch,the price at -whch, at a time and place..
termined by the rislati.lon of thcoe untryf o importation, and inh te
ordiny carrsoue of tra,de such or likmee rchande orir offered for
leesunedrfullycompetitve Aonditons.:To theext ent to wih hthe pr c e
of such or like merchandise i sgvoernd eby the.qu antity in a partiuclra
tansraciotn, the price to beco nsidered should unifrmlyo be relatde toe ither
ii comparable suantities not les- ffavoirable to iimpornert
than those in which the greater volume of the merchandise is sold in the trade
between the countries exportation and importation.
(c) When the actual value is not ascertainable in accordance with
sub-paragraph (b), the value for customs purposes be based on the
nearest ascertainable equivalent of such value.
4.. The valeu for customs purposes of any imported product should not include
the amount of any internal tax, applicable within the country of origin or
/export Page 26
export, from which the imported product has been exempted or has been or will
be relieved by means of refund.
5. (a) Except as otherwise provided in this paragraph, where it is :
necessofaparagraph 3 y for Member to convert into itsthe'pposes Mer a
iceowexpressednin th e;; pnotherr o ntry, ihee cofo c6u :
con0naus ofrateoused o be 'i shall dben ee opa thvaeues of r l c
the cuvolvrr, aencies ineds esurstablished epuant tos tf Agh Amrticle oreeent
of the International Monetary Fund or by speciaalreeemenmn tns eexchan geterd.
into pArtiulrsuant to ce 24 of this Charter - -
(b) Where no such par v;l tue has beenn ra eestablishd,he conversiot
shall reflect effectively the current valommue of such currency in cercial
t
t(c) The O&ain, i agreement with the Intern'atioalMonetary Fund,
shall formulate rules governing the conversion by Members of any foreign-
currency in respet of which multiple rates of exc hange aremaintained.
consistently with the Articles of Agreement of the Internatioarynal Monet Fund.
Any Member may apply such rules in respect of such foreign currencies for the
purposes of paragraph 3 of this Article as an alternative t o the useof -
par values Until such rules are adopted by the Organization, any Member may
employ, in respect of any such foreign currency, rules of conversion for the
purposes of paragraph 3 of this Article which are designed to reflect
effectively the value of such foreign merciacutrrency in coml ransactions.
6. Nothing in this Article shall be construed to require any Member to
alter the method of converting currencipes for ,customs usrposes which i
applicable in its territory on the dater, iof thisa teraCharte f such ltion
would have the effect of increasing generally ttyyrthe amounts d payable.
7 The bases and.ethods for determi oninpg thcts e bject tokvalue- roduou
duties or other charges or restrictions based up ion or ranneregulatedn any m
by value shouldsho bdeb stable and ul e given suffi to enableci ent publicit
traders to estimate, with a reasonable degree of certainty, the value for
customs purposes
Article 35
nFormalitiesI pcoeacted with 1orttion*
and Exportation
,,, ,__ - t w - _
1 The ber gp'eci hatever ch ral rfees and char es ofwhati acte
other than taxzs witiioh the nurve(Ohr xort.ut.es 'anvt
ction h8) Saygauthorities on on vn connection withermnt 4oities oo t
ion e approxima limited in amount tothe approximaterrteexp=tsholde.o
Ow* z94s*@ ~_ts- @;< ;,,#we.; E/CONF. 2/C. 3/89
Page 27
cost of services rendered and should represent an indirect protection to
domestic products or a taxation of imports or exports for fiscal purposes.
The Members also recognize the need for reducing the number and diversity of
such fees and charges, for minimizing the incidence and complexity of import
and export formalities and for decreasing and simplifying import and export
documentation requirements.
2. The Members shall take action in accordance with the principles and
objectives of paragraph 1 at the earliest practicable date. Moreover, they
shall, upon request by another Member directly affected, review the operation
of any of thier laws and regulations in the light of these principles. The
Organization may request from Members reports on steps taken by them in
pursuance of the provisions of this paragraph.
3. The provisions of paragraphs 1 and 2 shall extend to fees, charges,
formalities and requirements imposed by governmental authorities in connection
with importation and exportation, including those relating to:
(a) consular transactions, such as those relating to consular invoices
and certificates;
(b) quantitative restrictions;
(c) licensing;
(i) exchange control;
(e) statistical services;
(f) documents, documentation and certification;
(g) analysis and inspection; and
(h) quarantine, sanitation and fumigation.
4. The Organization may study and recommend to Members specific measures
for the simplification and standardization of customs formalities and techniques
and for the elimination of unnecessary customs requirements, including those
relating to advertising matter and samples for use only in taking orders for
merchandise.
5. No Member shall impose substantial penalties for minor branches of customs
regulations or precedural requirements. In particular, no penalty in respect
of any omission or mistake in customs documentation which is easily rectifiable
and obviously made without fraudulent intent or gross negligence shall be
greater than necessary to serve merely as a warning.
6. The Members recognize that tariff descriptions based on distinctive
regional or geographical names should not be used in such a manner as to
discrimunate against products of Member countries. Accordingly, the Members
shall co-operate each other directly and through the Organization with
a view to eliminating at the earliest practicable date practices which are
inconsistent with this principal. /Article 36 E/CONF. 2/C . 3/89
Page 28
Article 36
Marks of originrW-n
1. eMembers rrer cognize that in adopting and implementing laws andw
regulations relating to marks of origin, dthe iufficlties and inconveniences
hicucs sa seasurmay cesxouse to them comerace inAds du ar yoxportingf0ez
countries should be reduced to a minimum
2. Eacmh Meber shall accord to the products achof h other Member country
treatmwent ith regard tokiiu ngar rquirements no less favourable than the
treatment accorded to like products of any third country.
3. Whenever t is adstrmtviniciely practicable to do so, Members should
permit required marks of origin to be affixed at the time of importation.
4. The lanw s adregulations of Mem bers relating to the marking ofor impted
products shall be such as to permit compliance without serio uslygdamaing the
produocts r maalterily reducing their value or unreasonably increasing their
.t
5. TheM embers agree to o rk in co-operation htrouhgth eorganization towards U
the eayrl elimination of unnecessary marking requiremen.tsThe Oanizrgation
masy tudy and remmcod e no Members mseausre drected to this den, ncluding
the adoption osf chedules of general categories of products, in respect of
which marking requireemn tsoperate to restrict trade to en extent
disproportionate to any proper purpose to be served, and which shall not in
a case be reqeuro t be marked. toindicate their origin.
6. As a general rule no special duty or penalty should be imposed by any
mbe Mfor failruu to complywit vm mpking requirements prior toi pIrt ation
unless corrective marking isu nreasnoably delayed or deceptive marks have
ben eaffixed o rte hrequired marking has beeni nentionalyl omitte.d
7. The Members shall co-operate with each other directly and through the
Organization with aview to preventing the use of trade names in suchm Mnner
as to misrepresent the true origin of a product to the detriment of the
dintncitive regional or geographical names of products of a Member country
which are protected by the legislation of such countr.y Each Member shall
accord full and sympathetic consideration to such requests or represnetations
as may be made by any other Member regarding the application of the
unedtaking sret forth in the preceding sentence t o name of productswhich
have ben communiceated to it by te h othr e Membe.r The Ogrnization amay
.ecommend E/CONF. 2/C. 3/89
Page 29
recommend a conference of interested Members on this subject.
Article 37
Publication and Adiminstration of Trade Regulations
1. Laws, regulatons judicial decisions and administrative rulings of
general application made effective by any Mmbeer, pertaining to the
classification or the valuation of product for customs purposes,or to
rates of duty taxes or other charges, or to requierments, restrictions
or prohibitions on imports or exports or on the transfer of payments therefor,
or affecting their sale, distribution, transportation, insurance,
warehousing, inspection, exhibition, processing, mining or other use, shall
be published promptly in such a manner as to enable governments and traders
to become acquainted with them. Agreements affecting international trade
policy which are in force between the government or governmental agency of
any Member country and the government or governmental agency of any other
country shall also be published. Copies of such laws, regulations, decisions,
rulings and agreements shall be communicated promptly to the Organization.
The provisions of this paragraph shall not require any Member to divulge
confidential information the disclosure of which would impede law-.
enforcenemt orth otherwise be contrary to the public interest or would.
prejudice the legitimate commercial interests of particular enterprises,
public or private.
2. No measure of general application taken by any Member affecting an
advance in a rate of duty or other charge on imports under an established
and uniform practice or imposing a new or more burdensome requirement,
restriction or prohibition on imports, or on the transfer of payments therefore,
shall be enforced before such measure has been officilaly made public,
3. (a) Each Member shall administer in a unifrom, impartial and reasonable
manner all its laws, regulations, decisions and rulings of the kind described
in paragraph1 . Suitable facilities shall be afforded for traders directly
affected by any of those matters to consult with the appropriate governmental
.authorities.
(b) Each Member shall maintain or insititute as soon as practicable,
judicial arbitral or administrative tribunal or procedures for the purpose,
inter alia, of the prompt review and correction of administrative action
relatnig to customs matters. Such tribunals or procedure shall be independent
of the agencies entrusted with administrative enforcement and their decisions
shall be implemented by, and shall govern the practice of, such agencies
unless an appeal is lodged with a court or tribunal of superior jurisdiction
/within the E/CONF.2/C .3/89
Page 30
within the time prescribed for appeals to be lodged by importers; Provided.
that the central administration of such agency may take steps to obtain a
review of the matter in another proceeding if there is good cause to believe
that the decision is inconsistent with established principles of law or the
actual facts.
(c) The provisions of sub-paragraph (b) shall not require the elimination
or substitution of procedures in force in a Member country on the date of this
Charter which in fact provide for an objective and impartial review of
administration action, even though such procedures are not fully or formally
independent of the agencies entrusted with administrative enforcement. Any
Member employing such procedures shall, upon request, furnish the organization
with full information thereon in order that the Organization may determine
whether such.procedures conform to the requirements of this sub-paragraph.
Article 38
Information, Statistics and Trade
Terminology
1. The Members shall communicate to the Organization, or to such agency
as may be designated. for the purpose by the Organization, as promptly and
in as much detail as is reasonably practicable:
(a) statistics of their external trade in goods (imports, exports
and, where applicable, re-exports, transit and trans-shipment
and goods in warehouse or in bond);
(b) statistics of governmental revenue from import and export
duties and other taxes on goods moving in international trade and,
insofar as readily ascertainable, of subsidy payments affecting
such trade.
2. So far as possible, the statistics referred to in paragraph 1 shall
be related to tariff classifications and shall be in such form as to reveal
the operation of any restrictions on importation or exportation which are
based on or regulated in any manner by quantity or value or amounts of
exchange made available.
3.The Members shall publish regularly and as promptly as possible the
statistics referred to in paragraph 1.
4. The Members shall give careful consideration to any recommendations
which the Organization may make to them with a view to improving the
statistical information furnished under paragraph 1.
5. The Member shall make available to the Organization, at its request
and insofar as is reasonably practicable, such other statistical information
/as the Organization E/CONF.2/C.3/89
Page 31
as the Organization may deem necessary to enable it to fulfil its functions,
provided that such information is not being furnished to other inter-
governmental organizations from which the Orgnization can obtain it.
6.The Organization shall act as a centre for the collection, exchange
and publication of statistical information of the kind referred to in
paragraph 1. The organization, in collaboration with the Economic and Social
Council of the United Nations, and with any other organization deemed
appropriate, may engage in studies with a view to improving the methods of
collecting, analyzing and publishing economic statistics and my promote the
international comparability of such statistics, including the possible
international adoption of standard. tariff and commodity classifications.
7. The Organization, in co-operation with the other organizations referred
to in paragraph 6, may also study the question of adopting standards,
nomeclatures, terms and forms to be used in international trade and in the
official documents and statistics of Members relating thereto, and may
recommend the general acceptance by Members of such standards, nomenclatures,
terms and forms. |
GATT Library | wc398yc6020 | Chapter IV: Commercial Policy Draft Report to the Conference PartII(continued) | United Nations Conference on Trade and Employment, March 17, 1948 | Third Committee: Commercial Policy | 17/03/1948 | official documents | E/CCNF.2/C.3/89/Add.4 and E/CONF.2/C.3/89/ADD.3-95 | https://exhibits.stanford.edu/gatt/catalog/wc398yc6020 | wc398yc6020_90190206.xml | GATT_145 | 1,233 | 8,014 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/89/ Add.4
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 17 March 1948 ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
CHAPTER IV: COMMERCIAL POLICY
DRAFT REPORT TO THE CONFERENCE
PART II (Continued)
This part of the Draft Report of Committee III contains the text of
Article 17, with Interpretative Notes, as approved after consideration of
the Reports of the Central Drafting Committee.
Article 17
Reduction of Tariffs and Elimination of Preferences
1. Each Member shall, upon the request of any other Member or Members,
and subject to procedural arrangements established by the Organization,
enter into and carry out with such other Member or Members negotiations
directed to the substantial reduction of the general levels of tariffs
and other charges on imports and exports, and to the elimination of the
preferences referred to in paragraph 2 of Article 16, on a reciprocal
and mutually advantageous basis.
2, The negotiations provided for in paragraph 1 shall proceed in
accordance with the following rules:
(a) Such negotiations shall be conducted on a selective
product-by-product basis which will afford adequate
opportunity to take into account the needs of
individual countries and individual industries.
Members shall be free not to grant concessions on
particular products and, in the granting of a
concession, they may either reduce the duty, bind it
at its then existing level, or undertake not to raise
it above a specified higher level.
/(b) No Member shall E/CONF.2/C .3/89/Add.4
Page 2
(b) No Member shall be required to grant unilateral concessions,
or to grant concessions to other Members without receiving
adequate concessions in return. Account shall be taken of
the value to any Member of obtaining in its own right and
by direct obligation the indirect concessions which it
would otherwise enjoy only by virtue of Article 16.
(c) In negotiations relating to any specific product with
respect to which a preference applies,
(i) when a reduction is negotiated only in the most-
favoured-nation rate, such reduction shall operate
automatically to reduce or eliminates the margin of
preference applicable to that product;
(ii) when a reduction is negotiated only in the preferential
rate, the most-favoured-nation rate shall automatically
be reduced to the extent of such reduction;
(iii) when it is agreed that reductions will be negotiated
in both the most-favoured-nation rate and the
preferential rate, the reduction in each shall be
that agreed by the parties to the negotiations;
(iv) no margin of preference shall be increased.
(d) The.binding against increase of low duties or of duty-free
treatment shall in principle be recognized as a concession
equivalent in value to the substantial reduction of high
duties or the elimination of tariff preferences.
(e) Prior international obligations shall not be invoked to
frustrate the requirement under paragraph 1 to negotiate,
with respect to preferences,. it being understood that
agreements which result from such negotiations and which
conflict with such obligations shall not require the
modification or termination of such obligations except (i)
with the consent of the parties to such obligations, or,
in the absence of such consent, (ii) by modification or
termination of. such obligations in accordance with their
terms.
/3. The negotiations E/CONF.2 /C.3/Add.4
Page 3
3. The negotiations leading to the General Agreement on Tariffs and Trade
concluded at Geneva on October 30, 1947, shall be deemed to be negotiations
pursuant to this Article. The concessions agreed upon as a result of
all other negotiations completed by a Member pursuant to this Article shall
be incorporated in the General Agreement on terms to be agreed. with the
parties thereto. If any Member enters into any agreement relating to
tariffs or preferences which is not concluded pursuant to this Article, the
negotiations leading to such agreement shall nevertheless conform to the
requirements of paragraph 2 (c).
4. (a) The provisions of Article 16 shall not prevent the operation of
paragraph 5 (b) of Article XXV of the General Agreement on Tariffs and
Trade, as amended at the First Session of the CONTRACTING PARTIES.
(b) If a Member has failed to become a contracting party to the
General Agreement within two years from the entry into force of this
Charter with respect to such Member, the provisions of Article 16 shall
cease to require, at the end of that period, the application to the trade
of such Member country of the concessions granted, in the appropriate
Schedule annexed to the General Agreement, by another Member which has
requested the first Member to negotiate with a view to becoming a
contracting party to the General Agreement but has not successfully
concluded negotiations; Provided that the Organization may, by a majority
of the votes cast, require the continued application of such concessions
to the trade of any Member country which has been unreasonably prevented
from becoming a contracting party to the General Agreement pursuant to
negotiations in accordance with the provisions of this Article.
(c) If a Member which is a contracting party to the General Agreement
proposes to withhold tariff concessions from the trade of a Member country
which is not a contracting party, it shall give notice in writing to the
Organization and to the affected Member. The latter Member may request the
Organization to require the continuance of such concessions, and if such a
request has been made the tariff concessions shall not be withheld pending
a decision by the Organization under the provisions of sub paragraph (b)
.of this paragraph
(d) In any determination whether a Member has been unreasonably prevented
from becoming a contracting party to the General Agreement, and in any
determination under the provisions of Chapter VIII whether a Member has failed
without sufficient justiflication to fulfil its obligations under paragraph 1 of
this Article, the Organization shall have regard to all relevant circumstances,
including the developmental, reconstruction and other needs, and the general
/fiscal E/CONF.2/C.3/89/Add.4
Page 4
fiscal structures, of the Member countries concerned and to the provisions
of the Charter as a whole.
(e) If such concessions are in fact withheld, so as to result in the
application to the trade of a Member country of duties higher than would
otherwise have been applicable, such Member shall then be free, within sixty
days after such action becomes effective, to give written notice of
withdrawal from the Organization. The withdrawal shall become effective
upon the expiration of sixty days from the day on which such notice is
received by the Director-General.
/Interpretative E/CONF. 2/C.3/89/Add.4
Page 5
Interpretative Notes
Ad Article 17
An internal tax (other than a general tax uniformly applicable to a
considerable number of products) which is applied to a product not produced
domestically in substantial quantities shall be treated as a customs duty
under Article 17 in any case in which a tariff concession on the product
would not be of substantial value unless accompanied by a binding or a
reduction of the tax.
Paragraph 2 (d)
In the event of the devaluation of a Member's currency, or of a rise
in prices, the effects of such devaluation or rise in prices would be a
matter for consideration during negotiations in order to determine, first,
the change, if any, in the protective incidence of the specific duties of
the Member concerned and, secondly, whether the binding of such specific
duties represents in fact a concession equivalent in value to the substantial
reduction of high duties or the elimination of tariff preferences. |
GATT Library | dc662jw3849 | Chapter IV: Commrcial Policy Draft Report to the Conference | United Nations Conference on Trade and Employment, March 16, 1948 | Third Committee: Commercial Policy | 16/03/1948 | official documents | E/CCNF.2/C.3/89/Add.2 and E/CONF.2/C.3/78-89/ADD.3 | https://exhibits.stanford.edu/gatt/catalog/dc662jw3849 | dc662jw3849_90190202.xml | GATT_145 | 1,556 | 10,128 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMNT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPL0I
UNRESTRICTED
E/CCNF.2/C.3/89/
Adt.2
16 March 1948
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
CHAPTER IV: COMMRCIAL POLICY
DRAFT REPORT TO THE CONFERENCE
PART II
continuedd)
This part of the Draft Report of Committee III contains the texts
of the following Articles, as well as the Interpretative Notes pertaining
to them, as approved after consideration of the Reports of the Central
Drafting Committee,
Section F , Articles 40, 41 and 43.
/SECTONF E /CCN.2/C 3/89/Add.2
Page 2
SECTION F - SPECIAL PROVISIONS
Article 40
Emergency Action on Imports of Particular Products
1. (a) If, as a result of unforeseen developments and of the effect of the
obligations incurred by a Member under or pursuant to this Chapter, including
tariff, concessions any product is being imported into the territory of that
Member in such relatively increased quantities and under such conditions as to
cause or threaten serious injury to domestic producers in that territory of like
or directly competitive products, the Member shall be free, in respect of each
product, and to the extent and for such tine as may be necessary to prevent or
remedy such injury, to suspend the obligation in whole or in part or to withdraw
or modify the concession.
(b) If any product which is the subject of a concession with respect to a
preference is being imported into the territory of a Member in the circumstances
set forth In sub-pagragraph (a), so as to cause or threaten serious injury to
domestic producers of like or directly competitive products in the territory of
a Member which receives or received such preference, the importing Member shall
be free, if that other Member so requests, to suspend the relevant obligation
in whole or in part- r to withdraw or modify the concession in respect of the
product, to the extent and for such time as may be necessary to prevent or remedy
such injury.
2. Before-any Member shall take action pursuant to the provisions of
paragraph 1, it shall give notice in writing to the Organization as far in advance
as may be -practicable and shall afford the Organization and those Members ahving
a substantial interest as exporters of the product concerned an opportunity to
consult with i tin respect of the proposed action. Whens uc hnotice i s given
in regard to a concession relating to a preference, the notice shall name the
Member which has requested the acotin. In circumstances of special urgency,
where delay would cause damage which it would be difficult to repair, action
under praragraph 1 may be taken provisionally without prior consultation, on
the condition that consultation shall be effected immediately after taking such
acti.on '
3. (a) If agreement among the interested Members with respect to the action
is not reached, the Member which proposes to take or continue the action shall,
nevertheless, be freed to do so, an if such actio n is taken orcontinued, the
affected Members shall then be free, not later thaan nin ety day aftersuch action
is taken, to suspend, upon t he expirationof thirty days from the day on which
written notice of such suspension is received by the Organization, .the
application to the trade of the Member taking such action, or, in the case
/envisaged in E/CONF.2/C. 3/89/Adl.2
Page 3
envisaged in paragraph 1 (b)., to the trade of the Member requesting such action,
of such substantially equivalent obligations or concessions under or pursuant
to this Chapter the suspension of whilch the Organization does not disapprove
(b) Notwithstanding the proovisons of sub-parapraph (a); where action is
taken without prior consultation paragraph 2 and causes or threatens
serious injury. in the territory of a Member to the domestic producers of products
affected by the action that. Member shall, where delay would cause damage
difficult to repair, be free to suspend, upon the taking of the-action and
thro-ghout the period of consultation, such obligations or concessions may be
necessary to prevent, or remedy the injury.
4. Nothing in this Article shall be construed (a) to require any Member, in
connection with the withdrawal or modification. by such Member of concession
negotiated pursuant to Article 17, to consult with or obtain. the agreement of
Members other than these Members which are contracting parties to the General
Agreement on Tariffs and Trade, or..(b) to authorize any Member which is not a
contracting party to that Agreement, to withdraw from or suspend obligations
under this Charter by reason of the withdrawal or modification of such concession.
Article 41
Consultation
Each Member shall accord sympathetic consideration to, and shall afford
adequate opportunity for consultation regarding, such representations as may
be made by any other Member vith respect to the operation of customs regualations
and formalities, anti-dumping and countervailing duties, quantitative and
exchange regulations, internal price regulations, subsidies, transit regulations
and practices, state trading, sanitary laws and regulations for the protection of
human, animal or plant life or health, and generally with respect to all matters
affecting the operation of this Chapter.
Article 43
General Exceptions to Chapter IV
1. Subject to the requirement that such measures are not applied in a manner
which would constitute a means of arbitrary or unjustifiable discrimination
between Member countries where the same conditions prevail, or a disguised
restriction on international trade, nothing in this Chapter shall be construed to
prevent the adoption or enforcement by any Member of measures
(a) (i) necessary to protect public morals
(ii) necessary to the enforcement 'f laws and regulations
relating to public safety;
(iii) necessary to protect human, animal or plant life or
health;
/(iv) relating to E/CONF.2/C.3/89/Add.2
Page 4
(iv) relating to the importation or exportation of gold
or.silver;
(v) necessary to secure compliance with la.ws or regultions
which are not inconsistent with the provisions of this
Chapter, including those elating to customs on forcement
the enforcement of monopolies operated under Section D of
this chapter the protection of patents, trade. mark and
copyrights, and the prevention of deceptive practices;
(vi) relating to the products of prison labour;
(vii) imposed for the protection of. national treasures of artistic,
historic or archaeological value;
(viii) relating to the conservation of exhaustible natural rosources
if such measure are made effective in conjunction with
restrictions on domestic production or consumption
(lx) taken in pursuance of inter-governmental commodity agreements
concluded in accordance with the provisions of Chapter VI;
(x) taken in pursuance of any interr-governmental agreement which
relates solely to the conservation of fisheries resources,
migratory birds or wild animals and which is subject to the
requirements of paragraph 1 (d) of Article 67; or
(xi) involving restrictions on exports of domestic materials
necessary to assure essential quantities of such materials
to a domestic processing industry during periods when the
domestic price of such materials is held below the world
price as part of a governmental stabilization plan; Provided
that such restrictions shall not operate to increase the
exports of or the protection afforded to such domestic
industry and shall not depart from the provisions of this
Chapter relating to non-discrimination;
(b) (i) essential to the acquisition or distribution of products in
general or local short supply; Provided that any such measures
shall be consistent with any genera inter-governraental
arrangements directed to an equitable international
distribrution of such products or, in the absence of such
arrangememts, with the principle that all Members are entitled
to an equitable share of the international supply of such
products;
(ii) essential to the control of prices by a Member country
experiencing shortages subsequent to the Second World War; or
/(iii) essential to E/CONF.2/C.3/89/Add.2
Page 5
(iii) essential to the orderly liquidation of temporary surpluses
of stocks owned or controled by the government of any Member
country, or of industries developed in any Member country
owing to the exigencies of the Second World War which it would
be uneconomic to maintain in normal conditions; Provrded that
such measures shall not be Instituted by any Member except
after consultation- with other interested Members with a view
to appropriate international action.
2. Measures instituted or maintained under paragraph 1 (b) which are
Inconsistent with the other provisions of this Chapter shall be removed as soon
as the conditions giving rise to them have ceased, and in any event not later
than at a date to be specified by the Organization;Provided that such date may
be deferred for a further period or periods, 'with the concurrence of the
Organization either generally or in relation to particular measures taken by
Members in respect of particular products.
/Interpretative Note E/CONF.2/C .3/89/Add.2
Page 6
Interpretative Note
Ad Article 40
It is Understood that any suspension, withdrawaloor modification under
paragrsphs 1 (a), 1 (b) and 3 (b) must not discriminate against imports from
any Member country, and that such action should avoid, to the fullest extent
possible, injury to other supplying Member countries.
Ad Article 41
The provisions for consultation require, subject to the exceptions
specifically set forth in this Charter, Members to supply to other Members,
upon request, such Information as will enable a full and fair appraisal of
the matters which are the subject of such consultation, Including the operation
of sanitary laws and regulations for the protection of human, animal or plant
life or health, and other matters effecting the application of Chapter IV. |
GATT Library | hx338mz8471 | Check list of documents issued from 2 December 1947 to 13 March 1948 : Prepared by documents division | United Nations Conference on Trade and Employment, March 21, 1948 | Fourth Committee: Restrictive Business Practices | 21/03/1948 | official documents | E/CONF.2/C.4/25 and E/CONF.2/C.4/1-25 | https://exhibits.stanford.edu/gatt/catalog/hx338mz8471 | hx338mz8471_90190669.xml | GATT_145 | 0 | 0 | |
GATT Library | sc547km2811 | Check list of documents issued from 2 December 1947 to 13 March 1948 : Prepared by documents division | United Nations Conference on Trade and Employment, March 21, 1948 | Fourth Committee: Restrictive Business Practices | 21/03/1948 | official documents | E/CONF.2/C.4/25 and E/CONF.2/C.4/1-25 | https://exhibits.stanford.edu/gatt/catalog/sc547km2811 | sc547km2811_90190669.xml | GATT_145 | 1,505 | 9,866 | United Nations.
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E/CONF.2/C.4/25
21 March 1948
ENGLISH ONLY Om
RTH R ITTEECOM= : ESTR RC'TUIINESSVEIIS IPERATMCS
CEK LIST OF UMENTDOCISSUED t MSMEN CEFBVREROMDlEMC 194ARC7 TO MPXH 1948
Prepared buUUy the Dents Division
In. DoE/cONonumets )F.2/C.4/
Number Short Title
Preliminary Annotated Agenda - Prepared by
the Secretariat for Discussion
Language E F E F E F EF EF
Draft Charter -
Draft Charter -
Draft Charter -
Draft Charter -
Amendments
Draft Charter -
Draft Charter
Draft Charter -
Amendment
Greece: Proposed Addition
Italy: Proposed Amendments
Ceylon: Proposed Amendments
Czechoslovakia: Proposed
Mexico: Proposed Amendments
Norway: . Proposed Amendment
Afghanistan: Proposed
Agenda - Third Meeting, Wednesday,
3 December 1947, 10.30 a.m.
Composition of Sub-Conittee 1
Annotated Agenda - Prepared by the Secretariat
for Discussion of the Draft Charter
Addendum to Annotated Agenda for Chapter V
Sub-Committee A - Amendment Proposed by
Norway
E F
E F
E F
E &F E F-'
F S
E FSs
E FS
Report of Sub-Committee
Rectificatif au Rapport d e
Agenda for Fifth Meeting -
at 3.00 pm.
Agenda for Sixth Meeting -
at 10.30 a.m.
Agenad for SeventhM etinm
at 10.30 a.m.
la Sous-Coaission
Held 1?nuary 1948
Held 12 January 1948
Held 13 January 1948
ocument
rnber
1
1/Add.1
1/Add.2
1/Add.3
1/Add.4 1/Add.5
1/Add..6
1/Add.7
2
4 3
4/Add.1
4/Add.2
5
5/Corr.1
6
7
8
E F
F Only
E &F
E &
E &
I
------ E/CONF .2/C .4/25
Page 2 '1
tumbero
Numbe
9
.19/Re
10
11
12
413
15
16
17
/1eR7.1/
18
1Co8/rr.1
19
20
21
22
23
1
2
t
r Short Title
Report of the Working Party
Rapport du Groupe de Travail
Agenda for Eighth Meeting - 14 Jjd4 anuary 1948
at 01a0.3 .m.
Agenda fonr Nith Meeting - Held 15 January 1948
at 10.3.0 am
Agenda forTenth Meeting - Held 16 Jaynuar 1948
at 6.00 pm.
Agenda for Eleventh Meeti-ng Held 19 January 1948
at 10.30 a.m.
The Text of Chapter V as Approved by Committee 1V
Drt Roetpqrto the Conference.,
Agenda fwolfthr Te Meeting - Held 30 January 1948
at 10.30 a.m.
Agenda for Thirteenth Meeting - Held
.Wednesday, 4 February 1948 at 10.30 am.
g .Aenda for Thirteenth Meeting - Held
Thursday, 5 February 1948 a.t 1030 a.m.
Proposed Amendmen t toSection 8 of the Draft
Report ommf Coittee IV (NE/COF./C.4/15)
igendbm ? la Proposition d'ßßu ion amendement au
h gparagrFdu project de rapport de lriFmea Quat
siComeon ONF(E/CC0./c.)/15 .
Agenda for Frteenth Meeting - Held 4.00 p.m.
Wednesday, 3 March 1948
Draft Report of Fourth Commraphittee - Parag 8
United States oof Amerionccra: Prposal Cening
Article 50
Recommendation on Chapter V
Agenda for Fifteenth Meeting - Held Thursday,
11 March 1948
Uited States Proposal - Footnote to Article 50
RI. SRecor/dsNF(EICCO/SRh.2/41
Summy Recldd of MFirst. tingld W - Heednesday,
26 Nove1mber 947, at 10.45 a.m.
Summary Record of Second Meeting - Held Saturday,
29 November 1947, at10.m. Languagee0 a.
E
F Only
E &F
&F
E &F
E F &
FE
E F
E F&
E &F
F Only
&F
E & F
E & F
E &F
E F
E F
E F
/2/Corr.1
I
-Documents (E/CONF.2/C.4) E/CONF.2/C .4/25
Page3
II. Summary Records (E/CONF.2/C.4/SR.)
Short Title
Summary Record of Second Meeting - Held Saturday,
29 November 1947, at 10.30 a.m.,
Summary Record of Third Meeting - Held
3 December 1947 at 10.30 a.m.
Lanuage
E&F-
5
5/Corr.1
6
6/Corr.l
7
9
.
9/Corr14
10
0/Corr.1
10/Corr.2
11,Corr.1
11/Corr.2
11/Corr.3
12
13
Summary Record of Fourth Meeting - Held Thursday,
4 December 1947 at 4.00 p.m.
Summary Record of Fifth Meeting - Held Saturday,
10 January 1948 at 3.00 p.m.
Corrigendum to Summary Record of Fifth Meeting -
Held 10 January 1948 at 3.00 p.m.
Summary Record of Sixth Meeting - Held 12. January 1948
at 10.30 a.m. -
Corrigendum t -o Summary Record of Sixth Meeting
eld 12 January 1948 at 10.30 a.m.
Summary Record of Seventh Meeting - Held Tuesday,
13January 1948 at 10.30 a.m.
Sumary Record of YMeting - Held
14 January 1948 at 10.30 a.m.
Summary Record of Ninth Meeting - Held
15 January I948 at 10.30 a.m.
Corrigendum to Summary Record of Ninth Meeting -
Held 15 January 1948 at 10.30 a.m.
Sary Record of Tenth Meeting - Held
.16 January 1948 at 1030 a.m.
Corrigendum to Summary R ecord of Tenth Meettg-
Held 16 January 1948 at 10.30 a.m.
Corrigendum to Sry Record of Tenth Meeting -
Held 16 0January 1948 at 1.30 a.m.
Simmary Record of Eleventh Meeting - Held
19 January 1948 at 10.30 a.m.
Cmmaryorriu, to SurT.sord of Eleventh Meeting -
Hel1948d 9 Jery :. a0.30 a.m..
um orrigumen&ao Slwar Record of Eleventh Meeting -
Held 19 Jancaray 1948 t 10.30 a.m.
Courrigendmmarym to Su Record of Eleventh Meeting -
HJjnumaeld 1ary 1948 at 10.30 a.m.
Summary Record of Twelfth Meeting - Held Friday,
30 January 1948 at 10.30 a.m.
Suecop RPc6r. Thiteenth Meeting - Held
Thursday, Ff5ebruary 1943 at 10.30 a..m
Document
Number
2/Corr.1
43
FE F
E F
E F
E F
E F
F FE
E F
E &.F
E F E F /14 E/CONF.2/C.4/25
Page 4
Document
Number Short Title Language
14 Summary Record of Fourteenth Meeting - Held E F
3 March 1948 at 7.00 p.m.
14/Corr.l Corrigendum to Summary Record of Fourteenth Meeting - E &.F
Held 3 March 1948 at 7.00 p.m.
15 Summnry Record of Fifteenth Meeting - Held Thursday, E F
11 March 1948 at 6.30 p.m.
III. Working Papers (E/CONF.2/C.4/W.)
No Working Papers were issued by the Fourth Committee.
IV. Sub-C:qmmittee A Documents (EjONF.2C.4/A/)
1 Sub-Cmomittee I - Draft Agenda Prepared by the E F
Secretariat for the First Meeting - 6 December 1947
2 Sub-Committee I - Draft Agenda Prepared by the E F
Secretariat for the Second Meeting - 8 December 1947
3 Draft Agenda Prepared by the Secretariat for the E F
Third Meeting - Held 9 December 1947, 4.00 p.m.
4 Draft Agenda for Fourth Meeting -. Held E F
1 December 1947 at 10.30 a.m.
5 Draft Agenda for Fifth Meeting - Held E F.
11 December 1947 at 2.30 p.m.
6 Draft Agenda for Sixth Meeting - Held E F
12 December 1947 at 10.30 a.m.
7 Draft Agenda for Seventh Meeting Held E F
13 December 1947 at 10.30 a.m.
8 Draft Agenda for Eighth Meeting - Held E F
15 December 1947 at 10.00 a.m.
9 Draft Agenda for Ninth Meeting - Held E F
16 December 1947 at 4.00 p.m.
10 Draft Agenda for Tenth Meeting - Held E F
17 December 1947 at 4.00 p.m.
11 Draft Agenda for Eleventh Meeting - Held E F
19 December 1947 at 10.30 a.m.
12 Draft Agenda for Thirteenth Meeting - Held E F
20 December 1947 at 10.30 a.m.
13 Draft Agenda for Fourteenth Meeting - Held E F
22 December 1947 at 10.30 a.m.
14 Draft Agenda for Fifteenth Meeting - Held E F
23 December 1947 at 10.30 a.m.
15 Draft Agenda for Sixteenth Meeting - Held E F
29 December 1947 at 10.30 a.m. /16 E/CONF .2/C .4/25
Page 5
IV. Sub-Committee A Documents (E/CONF. 2/C. 4/A/)
Document
Number Short Title Language
16 Draft Agenda for Seventeenth Meeting - Held E F
30 December 1947 at 4.00 p.m.
17 Draft Agenda for Eighteenth Meeting - Held E F
31 December 1947 at 10.30 a.m.
18 Draft Agenda for Twentieth Meeting - Held E F
1 January 1948 at 4.00 p.m.
19 Draft Agenda for Twenty-First Meting - Held E F
3 January 1948 at 10.30 a.m.
19/Rev.1 Draft Agenda for Twenty-First Meeting - Held E F
5 January 1948 at 10.30 a.m.
20 Draft Agenda Ior Twenty-Second Meeting - Held E &F
6 January 1948
21 Draft Agenda for Twenty-Second Meeting - Held E &F
8 January 1948 at 5.45 p.m.
V. Sub-Committee A Workin gPapers (E/CONF.2/C.4/A/W.)
1 Summry Record of Thirteenth Meeting - Held E F
20 December 1947 at 10.30 a.m.
2 Summray Record of Fourteenth Meeting - Held E F
22 December 1947 at 10.30 a.m.
3 Summary Record of Fifteenth Meeting - Held F E
23 December 1947 at 10.30 a.m.
4 Report of thec Ad Ho Committee E F
5 Summary Record of Sixteeenth Meting - Held E F
29 December 1947 at 10.30 a.m.
6 Summary Record of Seventeenth Meeting - Held E F
31 December 1947 at 10.30 a.m.
6/Corr.1 Corrigendum to Summary Record of Seventeenth -Meeting - E &F
Held 30 December 1947 at 4.00 p.m.
7 Summary Record of Eighteenth and Nineteenth Meetings - E F
Held 31 December 1947 at 10.30 a.m. and 4.00 p.m.
8 Summary Record of Twentieth Meeting - Held E F
1 January 1948 at 4.00 p.m.
9 Summary Record of Tfiwenty-rst Meeting - Held E F
5 January 1948
VI. Report of the Committee
The final text of the report of the Fourth Committee is contained in
documents E/CONF.2/53 /and. ECONF.2/53/Add.l. |
GATT Library | mn889qg2618 | Check list of documents issued from 26 November 1947 to 10 March 1948 : Prepared by the Documents Division | United Nations Conference on Trade and Employment, March 21, 1948 | Fifth Committee: Inter-Governmental Commodity Agreements | 21/03/1948 | official documents | E/CONF.2/C.5/19 and E/CONF. 2/C. 5/1-19 C. 5/A/1-2 | https://exhibits.stanford.edu/gatt/catalog/mn889qg2618 | mn889qg2618_90200069.xml | GATT_145 | 1,027 | 7,220 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
E/CONF.2/C.5/19
21 March 1948
ENGLISH ONLY
FIFTH COMMITTEE: INTER-GOVERNMENTAL COMMODITY AGREEMENTS
CHECK LIST OF DOCUMENTS ISSUED FROM 26 NOVEMBER 1947 TO 10 MARCH 1948
Prepared by the Documents Division
Documents (E/CONF.2/C.5/)
Short Title
Chapter Vl - (Article 52 - 67) - Secretariat Note
Third Meeting - Moday, 1 December 1947,
4.00 p.m. - Agenda
Preliminary Annotated Agenda
Draft Charter - Colombia: Proposed Amendment
Draft Charter
Draft Charter
Draft Charter
Draft Charter
Draft Charter
Draft Charter
Dratt Charter
Corrigendum
Draft Charter
Draft Charter
Draft Charter
Draft Charter
Draft Charter
Draft Charter
- Italy: Proposed Amendment
- Cuba: Proposed Amendment
- Peru: Proposed Amendments
- United States: Proposed Amedment
- Ceylon: Proposed Amendments
- Philippines: Proposed Amendments
- Philippines: Proposed Amendments
- El Salvador: Proposed, Amendments
- Mexico: Proposed Amendments
Norway. Proposed Amendments
- Venezuela: Proposed Amendments
- Uruguay: Proposed Amendment,
- Egypt. Proposed Amendment
Flfth Meeting - 5 December 1947 at 4.00 p.m. - Agenda
Annotated. Agenda
Draft Charter - El Salvador: Propoeed Amendments
/5/Add.2
Languageffle
y
E F
E F
E
FE
FE
FE
FE
FE
FE
F
F
F
F
F
F
E F
E F
E F
E F
E F
E F
E F
E F S
E F. .'
ntDocuet
Number
2
3
l3/Ad.t
3/Add. 2
.3/Add3
3/Add. 4
.3/Add5
.3/Add6
3/Add.7
3/Add.7/
Corr.l
3/Add.8
3/Add. 9
3/1Add.1
3/Add.12
3/A..13
4
5
dD51/d. E/CONF.2/C.5/19 Page 2
Page 22 /
Document
Number Short Title Language c
5n/Add.2 Addedum to Anotatede Agenda - Note by th E F
Secretariat
5Add.3 E1 Salvadsor: Proposed Ad enta E F
6 Agenda for SHeventhhrus Meeting - eld FTrday, E
11 December 1947
7 Agenda foHrl Eighth Meeting - ed Friday, E F
12 December 1947
8 Reportmm or Drafting Sub-Coittee Appointed E F
3 ecember 1947 .
9p o m Rrrt of Sub-Coittee A EF
rri9/zrum.I` Co:,nmdclau rappomrt de ' Sous-Comnision A F Only:.
10g da Aen for Ninth Meseting - Held Tueday &F E
30 December. 1947 at 10.30 am.
. Agenda for Tenth Meeting - Held Wednesday, E &F
31 December 1947
12 d l Agena for EevHenth Meeting -eld Friday, E &F
2 January 1948
13 e Statemnt by the Cuban Deleegation on Intr - E F
Gmoverental Comodity Agreements
14 Report of them Joint Sub-Comittee E F S
15 Agenda for Fourteenth Meeting - Héld Tuesday, E &F
20 January 19 m.48 at 3.00 p.
16 Note by the Secretariat F E .
17 Agenda for FifteenHth Meeting - eld E &F
7 February 1948
18 Notebyi the Secretarat E F
II. Sr Records (E/C5ONF,). 2/C$/S.>~
1 :umm Sary Record of First HMleeWting a ed ednesdy. E F
26 November 1947 at 10.45 a.m.
2 ummar Sy Record of SecondH Meeting y- eld Frida, E . F
28 November 1947 at 5,15 p.m, `
3 m Sumary irRecord of Thd Meeting - Held Monday, F E
1 December 1947 at 4.00 p.m.
4 m r Sumay Record of Fourth Meeting - Held Wednesday, E F
3 December 1947 at 4.00 p.m.
4/ddi1 d m Ammaryad«nduzto SuRecord of FourthH Meeting - Rld E -;
3 December 1947 at 4.00 p.m. E/CONF.2/C.5/19
Page 3
Document
Number Short Title
5 Summary Record of Fifth Meeting - Held Friday, E P
5 Deceber 1947 at 4.00 p.m.
5 Summary Rum Recordxof Sizth Meeting -Tels \Iueaday, E F
9 December 1947 at 4.00 p.m.
7 ummary S qaxventh 7 Reco o f- Se cth Mseeting- Hld Thuriday§ E F
aDecember 1947 et 400 p.m.
8 m ryuu Su Record of Eigth Meetsing - Held Tueday, E F
16 Dcember 1.,.m947 at 4.00 z
8/Corr.g1 u Comrriendm to Sumary Record of Eighth Meeting - E &F
Held 16 December 1947 at 4.00 p.m.
9 u ary f Smm Record o NiHnth Meeting - eld Tuesday, E F
430 December 197 at 10.30.a.m.
9/Add.1 u ummary Addendfm to Smz3ry Rerd Hos' Ninth Meetng - Eeld E &F
30 December 1947 at 10.30 a.m.
ary10 Su Record of THenth Meeting Bed Wlenesdayi E F
31 D.,ecember 1947 at 130 a.m.
10/Cordum r.l u Corrigen fto Smmary Record o Tenth Meeting - E &F
eld. 31 Decemler 1947 at 10.30 a.m.
10/iCorrum.2 Corrgend au compte rendu analytique de lOnNlya F
Dixeme Seance
11 mary Sum Record of E-Hleventh Meeting eld Friday, E F
2 Jauary 1948 at 10.30 a.m.
12 m Sumary Record of TweHlfth Meeting - eld Saturday, E F
3 January 1948 at 4.00 p.m.
13u mmary Thirteenth Si Record of teenth Meeting - Held Monday, E F
5 Jma 1148 a 5.45 p.r.
1mm4 y Suar Record of Fourteenth Meeting - Held Tuesday, E F
20 Januar 1948 at 3.00 p.m.
15m a Sumry Record of FiftHeenth Meeting - eld Saturday, E F
7 February 1948 at 6.00 p.m.
. Wo(E/CONF.2/C.5/W.)rking PLer EC .5/W.)
1 Statue of the Text of Chapter VI as at E F
19 December 194
m2 Sub-Coitteee A - NoHtes on Ninth Meting - eld E F
20 Deceuer 1947 at 2,30 p.m.
3 mi Sub-Comtteee A - NotHes on Tenth Meting - eld E F.
22 Decmember 1947 at 4.00 p..
/4 E/CONF.2/C.5/19
Page 4
Document
Number Short Title Language
4 Sub-Committee A - Notes of Eleventh Meeting Held E F
23 December 1947 at 10.30 a.m.
5 Draft Report to the Conference - Part I E F
5/Corr.1 Corrigendum au project de rapport a la Conference F Only
6 Changes in the Geneva Text of Chapter VI as E F
Recommended by Sub-Committee A or the Drafting
Sub-Committee
6/Rev.1 Modifiactions recommandées par la Sous-Commission A F Only
ou le Sous-Comite& de redaction, au Texte du Chapitre VI
IV. Sub-Cmomittee A Documnets( E/CONF.2/.5/A/)CZI
1 Note Uuonse of the Term "Substantianl Itse" inret E F
Chapter VI
2 Explanatory Note by the Delegation orf Uuguay or E F
Distribution to the Members of Sub-Committee A
of the Fifth Committee
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1
V. Sub-Cm.ttee A.lng Pa.er
No Womirng Papers.wre ls6 by Sub-Comm±ttee,
V. ReC tt
e fizea text ofmmi the rseport of thip Ffth Conite ia cntained ln
doNcument RE/CONF.2/3c9 and E/COF.2/39/ev.1 (Franh), |
GATT Library | ct754yt6592 | Check list of Documents issued from 26 November 1947 to 20 March 1948 : Prepared by the Document Division | United Nations Conference on Trade and Employment, March 23, 1948 | Third Committee: Commercial Policy | 23/03/1948 | official documents | E/CONF.2/C.3/95 and E/CONF.2/C.3/89/ADD.3-95 | https://exhibits.stanford.edu/gatt/catalog/ct754yt6592 | ct754yt6592_90190213.xml | GATT_145 | 8,776 | 58,672 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E/CONF. 2/C.3/95
23 March 1948
ENGLISH ONLY
THIRD COMMITTEE: COMMERCIAL POLICY
CHECK LIST OF DOCUMENTS ISSUED FROM 26 NOVEMBER 1947 TO 20 MARCH 1948
Prepared by the Document Division
I. Documents (E/CONF.2/C.3)
Short Title
Annotated Agenda for Chapter IV
Policy
Ecuador: Proposed Amendments
Italy: Proposed Amendments
Cuba: Proposed Amendment
Colombia: Proposed Amendments
Greece: Proposed Amendments
Chile: Proposed Amendments
Uruguay: Proposed Amendments
Italy: Proposed Amendment
Pakistan: Proposed Amendment
Pakistan: Proposed Amendment
Commercial
Corrigendum
Colombia: Proposed Amendments
Afghanistan: Proposed Amendments and
Syria and Lebanon:. Proposed Amendments
Syrie et Liban: Propositions D'Amendements
Uruguay:
Uruguay:
Proposed Amendments
Revision of Proposed Amendment
India: Proposed Amendment
Language
E F
E F
E F
E F
E F
Additions E F
E F
F Only
E F
/1/Add. 15
Document
Number
1
1/Add.2
1/Add.3
1/Add. 6
1/Add.7
1/Add. 8
1/Add. 9
1/Add. 9/
Corr .1
1/Add..10
1/Add.11
1/Add. 10
Corr.1
1/Add.13
1/Add.13
Rev.1
1/Add .14 E/CONF. 2/C.3/95
Page 2
I. Documents (E/CONF.2/C. 3)
Document
Number
1/Add. 15
1/Add. 16
1/Add.17
1/Add.18
1/Add.19
1/Add.20
1/Add. 21
1/Add.22
1/Add. 23
1/Add. 24
1/Add. 25/
Corr.1
1/Add. 26
1/Add. 27
1/Add. 28
1/Add.29
1/Add. 30
1/Add. 30/
Corr. 1
1/Add. 31
1/Add. 32
1/Add. 33
1/Add.34
1/Add. 34/
Corr.1
1/Add. 35
Short Title
Italy: Proposed Amendments
Switzerland: Proposed Amendment
United States: Proposed Amendment
Cuba: Proposed Amendment
Ireland: Proposed Amendments
Syria and Lebanon: Proposed Amendment
United States: Proposed Additions
Cuba: Proposed Amendment
Colombia: Proposed Amendment
India: Proposed Amendment
Netherlands: Proposed Amendments
Corrigendum to Draft. Charter -
Netherlands; Proposed Amendments
Brazil: Statement
Brazil: Proposed Amendment
Afghanistan, Egypt, Greece, Iran, Iraq, Lebanon,
Syria and Turkey: Proposed Amendment
Haiti: Proposed.Amendments
Ireland: Proposed Amendments
Ireland: Proposed Amendments -
Corrigendum
Guatemala Proposed Amendment
Dominican Republic: Proposed Amendment.
Bolivia: Proposed Amendment
Philippines: Proposed Amendments
Philippines: Proposed Amendments
Corrigendum
Portugal: Proposed Amendment
/1/Add. 36
E F
E F
E F
E Only E/CONF. 2/C. 3/95
Page 3
I. Documents (E/CONF.2/C.3)
Document
Number Short Title
1/Add. 36 Italy: Proposed Amendment
1/Ad4.37 El Salvador: Proposed Amendment
1/Add.38 Denmark: Proposed Amendments
1/Add.39 Norway: Proposed Amendments
1/Add.40 Sweden: Proposed Amendments
1 /Add. 41 United States: Proposed Amendments
1/Add.42 Peru: Proposed Amendment.
3/Add.42/ Peru: Revised Proposed Amendment
Rev.1
1/Add. 43 Mexico: Proposed Amendments
1/Add. 44 Venezuela: Proposed Amendment
1/Add.45 Afghanistan: Proposed Amendments
1/Add.46 Iraq: Proposed Amendments
1/Add.46/ Iraq: Proposed Amendments - Corrigendum
Corr.1
1/Add.47 Burma: Proposed Amendment
1/Add. 48 Australia: Proposed Amendments
1/Add.49 Ecuador: Proposed Amendment
1/Add.50 Egypt: Proposed Amendments
1/Add.51 Peru: Proposed Amendment
1/Add.52 Cuba: Proposed Amendments
. -....
1/Add.53 New Zealand: Proposed Amendments
ruruguay:Ppor osed o AdmeAmendd-ros
l:rtugal: Proposed Addtiond posed Ad Pisddi
FMih eeting, Thursday, 4 December 1947,
gpna.m .AedaAg
3 - urAgenda Satday, 6 December, Conference
Ro 10.30 a.m. --
4 Extract from StateHmentC by Mr. .C. oombs
( Ahe Fourth Meeting Held jonruraMiMatnTHurdh Denl n
3 December 1947.
Langu
E F
E F
E F
E F
E
Y E/CONF.2/C.3/95
Page 4
I. Documents (E/CONF.2/C.3)
Document
Number Short Title Language
5 Agenda for the Seventh Meeting - Held 8 December E F
1947, 4.00 p.m.
6 Revised Annotated Agenda for Chapter IV E F S
6/Corr.1 Corrigendum to the Revised Annotated Agenda E &F
6/Corr.2 Revised Annotated Agenda for Chapter IV E F
Section A - Tariffs, Preferences, and
Internal Taxation and Regulation
6/Corr. 3 Corrigendum to Revised Annotated Agenda for E &F
Chapter IV
6/Corr. 4 Revised Annotated Agenda for Chapter IV E F
Corrigendum to Annex Proposed by the
Portuguese Delegation
6/Corr.5 Revised Annotated Agenda for Chapter IV E F
Section A - Tariffs, Preferences, and Internal
Taxation and Regulation
6/Corr.6 Revised Annotated Agenda for Chapter IV E F
Corrigendum
6/Add.1 Czechoslovakia: Proposed Amendment
6/Add.2 Peru: Proposed Amendment E F
6/Add. 3 Article 16 - Addendum to Revised Annotated E &F
Agenda (E/CONF.2/C.3/6)
6/Add. 4 Section A - Tariffs, Preferences and Internal E F
Taxation and Regulation
6/Add.5 Revised Annotated Agenda for Chapter IV - E F
Norway - Proposed Amendment.
6/Add.6 Ecuador: Proposed mendment E F S
6/Add. 7 Amendment of Annex B Pertaining to Article 16 E F S
7 Revised Annotated Agenda for Chapter IV E F
7/Corr.1 Corrigenda to Revised Annotated Agenda for E Only
Chapter IV - Section B -Quantitative Restriction
and Control
7/Corr.2 Corrigenda au Texte: Revise de L'Ordre du jour F Only
Annote, Prepare en vue de la Discussion du
Chapitre IV, Section B : Restrictions
Quantitatives et Controle des Changes
/7/Corr.3 E/CONF.2/C.3/95
Page 5
I. Documents (E/CONF.2/C.3)
Document
Number Short Title Language
7/Corr. 3 Corrigenda to Revised Annotated Agenda for E Only
Chapter IV
7/Corr. 4 Corrigendum au Texte RevisT de L'Ordre du
Jour AnnotT, PreparT en vue de la Disccusion
du Chapitre IV, Section B: Restrictions
Quantitatives et Controle des Changes
7/Corr.5 Revised Annotated Agenda for Chapter IV - E &F
Corrigendum
7/Corr.5/ Corrigendum to the Revised Annotated Agenda E Only
Rev.1 (Document E/CONF .2/C.3/7)
7/Add.1 Addendum to Revised Annotated Agenda for E F
Chapter IV - Section B - Quantitative
Restrictions and Exchange Controls
8 Revised Annotated Agenda for Chapter IV E F S
8/Add.1 Addendum to Annotated Agenda E F S
9 Revised Annotated Agenda for Chapter IV E F S
9/Corr.1 Corrigendum to Revised Annotated Agenda for E
Chapter IV - Section D - State Trading . ,
9/Add.1 New Zealand Delegation: Amendment to Article 30 E F
9/Add.2 Article 31A - Revised Text Proposed by the E F
Delegation of Cuba.
10 Revised Annot teF Agenda for Chapter IV E E S
Prepared by the Secretariat
1O/Corr.1 Section E - General Commercial Provisions E F
Article 36 - Chile: Correction of Amendment
10/Add.1 Eaiti: Proposed Amendments to Article 35 E F
10/Add.2 Peru: Proposed Amendment to Article 35 E F
10/Add.3 Norway: Proposed Redraft of Article 38
10/Add.3/ Article 38 E F
Rev.1
l0/Add.4 Article 38 - Australia: SuggEsted Changes in B F
the Norwegian Redraft of Article 38
/11 E/CONF.2/C. 3/95
Page 6
I. Document (E/CONF.2/C.3)
Short Title
Revised Annotated Agenda for Chapter IV. Language
Section F
Corrigendum to Revised Annotated Agenda for
Chapter IV - Section F - Special Provisions
Joint Sub-Committee on Tariff Preferences
Revision of Article 42 Proposed by the
French Delegation
Agenda - Thursday, 11 December 1947 at 10.30 a.m.
Agenda - Friday, 12 December 1947 at 4.00 p.m
Section B - Saturday, 13 December 1947 at
4.00 p.m.
Sub-Committee A (Articles 16 and 17) of
Committee III
Add.1 Sub-Committee A (Articles 16, 17, 18 and19)
Add.3 Sub-Committee A (Articles 16, 17, 18 and 19)
Addendum
Agenda Committee IlIa - Monday, 15 December,
at 4.00 p.m.
Agenda of Committee III b - Held Tuesday,
16 December 1947, at 10.30 a.m.
,.. I . -- ~, I'
3
AWedce Co, i7 December E F flansdayj-1 De4br,
at 4.00 p.m.
Ib - ThAgen18 D18 December Eectte IfMbursdalB.Po i
1947 at 10:30 a.m.
thAgenda for FoumEeE A III a E Feting of Comittee
19 December 1947 at 4.00 p.m.
Age-To nbda of Comittee III b .e Held on Saturday
20 December 1947 at 10.30 a.m.
Sub-CozIIieon e C of Committee mI eneral
Commercial Provisions (Articles 32 to 39)
AgenH IHerveIII anteld eenth Meeting H Bd
Monday, 22 December 1947, at 4.00 p.m.
AgenOI b - Held On da eof yC E Fomete 1I uwsd,
? cember 1947 at 10.30 a.m. (Reference
3/7CU]?./)
3
3
nda of CocoAmitMee III b - Held Monday, 2D9 Ecem0 E & Fbe
4.00 m.p.
/26
Document
Number
/Cr.1Io
ld/Ad. 1
12
13
14
15
15/Add
15/Add
16
17
18
19
20
21
22
23
25 E/CONF.2/C.3/95
Page 7
I. Documents (E/CONF.2/C .3)
Short Title
Text of the Speech Made by Mr.Royer (France) on
23 December 1947 at the Eighteenth Meeting of the
Committee
Language
E F
27
28
29
30
31
32
33
34
36
37
37/Corr.1
38
38/Corr.1
38/Add.1
38/Add.2
38/Add.2/Rev.1
38/Add.3
38/Add.4
39
Agenda of Committee III
4.00 p.m.
Agenda of Committee III
4.15 p.m.
Agenda of Committee III
4.00 p.m.
Text of Article 28 of New
Agenda of Committee III
4.00 p.m.
Agenda of Committee III
4.00 p.m.
Agenda of Committee III
3.00 p.m.
Agenda of Committee III
Held 6 January 1948
Agenda of Committee IIl
Held 7 January 1948
Agenda of Committee III
Held 8 January 1948
Report of Sub.Committee
Held 30 December 1947 at E F
- Held 30 December.1947 at E F
- Held 31 December 1947 at E F
York Draft Charter
- Held 1 January 1948 at
- Held 3 January 1948 at
- Held 5 January 1948 at
- Twenty-Sixth Meeting -
E F
E F
E F
E F
- Twenty-Seventh Meeting - E F
b - Twenty-Eighth Meeting -
D on Articles 40, 41 and 41
Corrigendum to Report of Sub-Committee D
Report of Sub-Committee C to Committee III
Report to Committee III by Sub-Committee C -
Corrigendum
Argentina: Amendments to the Report of Sub-
Committee C
Belgium Amendment to the Report of Sub-Committee C
Belgium; Revised Amendment to the Report of Sub-
Committee C
France: Amendment to the Report of Sub-Committee C
Australia: Amendment to Article 33
Agenda for Twenty-Ninth Meeting of Committee III -
Held 30 January 1948 at 3.00 p.m.
E F
E F S
E only
E F S
S only
. . .
S
E F
H -
E F
E F
/40
Document
Number
26 I. Document (E/CONF.2/C.3)
Short Title
Agenda for Thirtieth Meeting of Committee III -
Held 31 January 1948 at 10.30 a.m.
Report of Working Party 1 Concerning the Chilean
Amendment to Proposed Paragraph 9 of Article 32
Agenda for Thirty-First Meeting of Committee III -
to be Held 4 February 1948
Report of Sub-Committee J (State Trading)
Agenda for Thirty-Second Meeting of Committee III -
Held 5 February 1948 at 10.30 a.m.
Agenda for Thirty-Third Meeting of Committee III -
to be Held 6 February 1948
Article 43
Article 43 - Corrigendum
Amended Proposal to Section D of Chapter IV
Submitted by the Delegations of Uruguay, Argentina,
Ecuador and Guatemala
Argentina: Amendment to Chapter IV, Section D of
the Geneva Charter
Report of Working Party No. 2 Concerning the Chilean
Amendment to Paragraph 3 (b) of Article 34
Report of Working Party 4 on Interpretative Note to
Article 40
Agenda for Thirty-Fourth Meeting of Committee III -
Held 9 February 1948 at 10.30 a..m.
Report of Sub-Committee 'H' on Subsidies
.1 Corrigendum to Report of Sub-Committee 'H' on
Subsidies
Report of Working Party 3 on Paragraph 1 (a) of
Article 40
Agenda for Thirty-Fifth Meeting of Committee III -
Held 13 February 1948 at 10.30 a.m.
Report of Sub-Committee E to Committee III
Agenda for Thirty-Sixth and Thirty-Seventh
Meetings of Committee III - Held 14 February 1948
at 10.30 a.m. and 3.00 p.m.
Agenda for Thirty-Seventh Meeting - Held 16 February
1948 at 3.30 p.m. . *;
.2E/r ./C8
Page 8
E &F
EF
E &F
E F
E&F
S
Document
Number
40
41
42
43
44
45
46
4C6/or1r.
/R46ev.l
47
49
50
51.
51/Co.1rr
52
53
54
56
E F
E &F
E F
EF S
E F
E F
/57 E/CONF.2/C.3/95
Page 9
Document
57 Report to Committee III on Article 21 E F S
Agenda for Thirty-Eighth Meeting -Held E &F
17 February 1948 at 4.00 p.m.
59 Report of Sub-Committee A E F S
60. Section E - General Commercial Provisions E F S
60/Add.1 Section E - General Commercial Provisions - E F S
Addition of Paragraph 6 to Article 35
61 Articles 40, 41 and 43 E F S
62 Agenda for the Thirty Ninth Meeting - Held E &F
18 February 1948 at 4.00 p.m.
63 Text of Section 'C' Subsidies of Chapter IV E F S
As Approved in Second Reading
64 Report of Working Party No. 5 on Article 31A E F
65 Agenda for Fortieth Meeting - Held E &F
19 February 1948 at 4.00 p.m.
66 Report of Working Party No. 6 E F
67 Agenda for the Forty-First Meeting - Held. E &F
20 February 1948
68 Text of Section A of Chapter IV As Approved in E F S
Second Reading
68/Corr.1 Corrigendum to Text of Section A of Chapter IV As E &F
Approved in Second Reading
68/Corr.2 Corrigendum to Text of Section A of Chapter IV As E &F
Approved in Second Reading
68/Corr.3 Corrigendum to Text of Section A of Chapter IV As E F
Approved in Second Reading
69 Articles 20, 21 and 22 E F S
70 Section D - State Trading and Related Mattere E F S
71 Report of Working Party 7 (Article 18) E F
71/Corr.1 Corrigendum, to Report of Working Party 7 (Article 18) E F
72 Report of Sub-Committee G to Committee III E F S
73 Report of Sub-Committee G to Committee III - E F S
Observations by the Delegation of the
United States /74 E/CONF.2/C.3/95
Page 10
I. Documents (E/CONF.2/C.3)
Document
Number Short Title Language
74 Proposed Annex to Article 16 E F
75 Agenda for Forty-Second Meeting -Held E F
8 March 1948 at 4.00 p.m.
76 Report of Sub-Committee B (Proposed New Article 18A) E F S
76/Corr.l Corrigendum to Report of Sub-Committee B E only
76/Corr.2 Rectificatimf au Rapport de La Sous-Commission B F only
77 Article 16 - General Most-Favoured-Nation Treatment E F
77/Rev.1 Article 16 - GeneralMost-Favoured-Nation Treatment E F
78 Report tso Coommittee III on Articles 16 and 42 E F S
78/Corr.1 Report to Committee III on Article16 and 42 E F
78/Add.l Addendum to Report to Committee III on Articles 16 E F
and 42
79 Report of Sudy Group on Article 16 E F
80 Agenda for Forty-Third Meeting - Held E F
81 Recommendation on Chapter V E F
82 Article 21: Restrictions to Safeguard the Balance E F S
of Payments - Note from the Delegation of Chile
83 Note by the Secretariat E F
84 Agenda for the Forty-Fourth Meeting - Held 11 March 1948E F
85 Articles 16, 42, 42A and 42B As Adopted by E F S
Committee 13
85/Corr.1 Revised Text of Article 42 E F
86 Agenda for Forty-Fifth Meeting -Held 12 March 1948 E F
at 10.30 a.m.
87 - Report of Working Party No. 8 (Article 42) E F
88 Agenda for Forty-Sixth Meeting - Held 15 March 1948 at E F
3.00 p.m.
88/Corr.1 Corrigendum to Agenda for Forty-SixthMeeting - E only
Held 15 March 1948 at 3.00 p.m.
89 Draft Report to the Conference - Part II E F
/89/Corr.1 E/CONF.2/C.3/95
Page 11
I. Documents (E/CONF.2/C.3)
Document
Number Short Title
89/Corr.1 Corrigendum to Part 2 of Draft Report to Conference
89/Corr.2 Rectificatif a La Deuxieme Projet De Rapport a La
Conference
89/Corr.3 Corrigendum to Draft Report to the Conference
89/Corr.4 Rectificatif au Projet de Rapport a La Conference
89/Add.1 Draft Report to the Conference - Part II
89/Add.2 Draft Report to the Conference - Part II
89/Add.3 Draft Report to the Conference - Part I
89/Add.3r/Corr.1 Draft Report to the Conference - Corrigendum
89/Add.4 Draft Report to the Conference - Part II
90 Report of Working Party 9 (Article 42B)
91 Report to Committee III on Articles 23 and 24
91/Corr.1 Corrigendum to Report to Committee III on
Articles 23 and 24
92 Agenda for Forty-Seventh Meeting - Held 17 March 1948
93 Articles 23 and 24
94 Agenda for Forty-Eighth Meeting - Held 18 March 1948
II. Summary Records (E/CONF.2C.3/SR.)
1 First Meeting - Held 26 November 1947 at 10.45 a.m.
2 Second Meeting - Held 29 November 1947 at 10.30 a.m.
3 Third Meting - Held 2 December 1947 at 10.30. a.m.
4 Fourth Meeting - Hed 3 December 1947 at 10.45 a.m.
5 Fifth Meting - Held 4 December 1947 at 4.00 p.m.
6 Sixth Meeting - Held 6 December 1947 at 10.30 a.m.
6/Corr.1 Corrigendum to Summary Record of Sixth Meeting
Held 6 December 1947 at 10.30 a.m.
7 Seventh Meeting - Held 8 December 1947 at 4.00 p.m.
8 Eighth the Meeting - Held 11 December 1947 at.10.30 a.m.
8/Corr.1 Corrigendum to Summary Record of Eighth Meeting -
Held 11 December 1947 at 10.30 a.m.
E F
E F
E F
E F
E F
E F
E F
E F
/9
Language
E only
F only
E F
E F
E F
E F
E F
E F
E F
E F S
E F
E only
F only
E F
E F
E &F E/CONF.2/C.3/95
Page 12
Document
Number
9
IIl Summary Records (E/C0NF.2/C.3 /SR.)
Short Title
Ninth Meeting (IIIa) - Held 12 December l947 at E F
4.00 p.m.
10 Tenth Meeting (IIIb) - Held 13 December E F
1947 at 4.00 p.m.
11 Eleventh Meeting (Illa) - Held 15 December 1947 E F
at 4.00 p.m.
11/Corr.1 Corrigendum to Summary Record of Eleventh Meeting E only
11/Corr.2 Corrigendum to Summary Record of Eleventh Meeting E F
11/Corr.3 Corrigendum to Summary Record of Eleventh Meeting E only
12 : Twelfth Meeting (IIIb) - Held 16 December 1947 at E F
10.30 a.m.
12/Corr.1 Corrigendum to Summary Record of Twelth Meeting (IIIb) E F
13 Thirteenth Meeting (lIla) - Held 17 December 1947 E F
at 4.00. p.m.
13/Corr.1 Corrigendum to Summary Record of Thirteenth Meeting E&F
13/Corr.2 Corrigendum to Summary Record of Thirteenth Meeting E F
14 Fourteenth Meeting (IlIb) - Held 18 December 1947 at E F
10.30 a.m.
14/Corr.1 Corrigendum to Summary Record of Fourteenth Meeting E only
15 Fifteenth Meeting (IIIa) - Held 19 December 1947 at E F
4.00 p.m. : : -- -
eeting (UIIb) - I16 mber 1947 at E Simbte 17xIEn (3b)-Hel20 DecedberlV B F
10.30 a.m.
Sixteenth 16/Corr.. CoErrigendum to Sumary RQorEd o±Snth Meeting F
17 Seeen E FeEth Meeting (IIIa) FHel22 December 1947 at - 3
4.00m
17/Cvenorer.1 Me Corrigeum Met Smary Recd of Setentheting E F
- 18 Sgh 1947 E FfR t1eth MeetiiS 1n-) - Held ember '.7 ;
at 10.30 a.m
18/EiRCorr.l MCorriEendumE F.o SMu=ryordE Sghteeh etinig F
Record of Eighteenth Meeting E F18 /Corr,. .en'm toe-eSmmaryRic'rtng E F
-19 cember 1947 ame Ninteenth Mmbee 14aing (lI) Held er9t E F
4.00 p.m.^ ---;7;
I9corl
&E!aml .
F E/CONF.2/C.3/95
Page 13
II.Summary Records (E/CONF.2/C.3/SR.)R.)
umentUMDeoozt
Short m,:r Sho&o Title agt Langu ae
19/Corr.1 Corrigendum to Summary Record of Nineteenth Meeting E &F
19/Corr.2 Corrigendum to Summary Record of Nineteenth Meeting E &F
20 Twentieth Meeting (IIIa) - Held 30 December 1947 at E F
4.00 p.m -
21 Twenty-First -Meeting (Ilb) Held 30 December 1947 at E F
4.15 p.m.
2-2 e n ty-Secd Meeeing(lIb) Hld 1 December 1947 E F
at 4.30 p.m.
tr22/Corr.1 Corrigendum to Sumy Record of Twenty-Second Meeting E &F
23 - Tenty-TIhird M-eing (IIb) H ld 2 January 1948 E F
ab pO.
oplyn23/Corr.1 Rectificatif F only
24 Twenty-Forth MeIting (IIb) - Held 3 January 194E B F
at 4.00 p.m.
24/orr.J rrigmmaqdato Sumy Record of Twen-Fou MeEeting F,
25 Twenty-Fifth -eting H eld 5 January 1948 at E F
. 300 p. m.
25J&or. - ourigendlito Summay Record of Twenty-Fifth MeeEting F F
25/CorrE .2 Corrigendum to Summary Record of Twenty-Fifth Meeting F
26 E Twenty-Sixth Meeting (IlIb) - Held 6 January 1948 at F
3.00 p.m.
E FFn2yTw Sevet MeeIIIbting (u- Held J 1anuary948 F
at 3.00 p.m.
42 8 .Twenty-ighth MeetIng (IIb) - Held 8 Janu4ay 198E F
at 3.00p..
28/Corr.1 E &F Corrigendum to Sumay Record of Twenty-Eighth MeeE ng
29 . Twenty-Ninth Meeting - Held 30 January 1948 at 3.00 p.mE F
30 E Thirtieth Meeting-Hl 31 January 1948 at 10.30Ea.m B F
p.m.E 31 ThisrtFirt Me tig -Held 4 Febru48ar1.9 a. 30E0-m F
32 y-Thiecond Meting - Held 5 February 1948 at E F
10.30 a.m.
3.12/Corr CorrigendE ummat Sumry Record of Thirty-Second Me Eetg &F
/33 E/CONF.2/C.3/95
page 14
lI. Summary Records (E/CONF.2/C.3/SR.)
Document
Number Short Title Language
33 Thirty-Third Meeting - Held 6 February 1948 at E F
10.30 a.m.
33/Corr.1 Corrigendum to Summary Record of Thirty-Third Meeting E F
34 Thirty-Fourth Meeting - Held 9 February 1948 at E F
10.30 a.m.
34/Corr.1 Corrigendum to Summary Record of Thirty-Fourth Meeting E F
34/Corr.2 Corrigendum to Summary Record of Thirty-Fourth Meeting E F
34/Corr.3 Corrigendum to Summary Record of Thirty-Fourth Meeting E &F
34/Corr.4 Corrigendum to Summary Record of Thirty-Fourth Meeting E F
34/Corr.5 Corrigendum to Summary Record of Thirty-Fourth Meeting E &F
34/Corr.6 Corrigendum to Summary Record of Thirty-Fourth Meeting E &F
35 Thirty-Fifth Meeting - Held 13 February 1948 at E F
10.30 a.m. . . .
g - Held 14 February 1948 atv- .irtl t-ntin8S a E F 14Frary M194 eB
10.30
36/Corr.1 Corrigendum to S Fumary Record of ThrFty-Sixth Meeting E
37 Thi9rty-Seventh Meeting - Held 16 February 148 at E F
3.30 p
37/Corr.1 tyCorvrigendum to E &SumaryvRecord of ThirtSeenth Meeting-
37/Corr. Corrigeventh Mmndum to SE onlyummary vhcord of TEirtlySeeting o
38 Thirty94-hthMeetinEg - E9Hel 17 FebrEuar 1.8 a H F,
p,m,
. 17 eba7.: .9 -,P 4 P
38/Corr.1 rrigendum to Summary Record.o Thirty-Eighth Meeting E &F
38/Add.1 Addendum to Summary Reordof Thirty-Eighth Meeting
39 Thirty-Ninth Meeting- Held 18 February 1948a E F
* .
40 rtieth Meeting -tHd.a9Fbruary. 9e4at400
40E /Fr,l rrgndm to SunMary Rd of Fortieth Meeting H&
41 Forty-First Meeting - Held February. 948 at:E F
30p.m.
i41/Corr.1 Corrdndum to Summary Record.o.Frty.Frs Meeting E: F
42 E/CONF.2/C.3/95
Page 15
II. Summary Records (E/CONF.2/C.3/SR.)
Short Title Language
Forty-Second Meeting - Held 9 March 1948 at 3.00 p.m. E F
Corrigendum to Summary Record of Forty-Second Meeting E &F
Corrigendum to Sumary Record of Forty-Second Meeting E &F
Forty-Third Meeting - Held 10 March 1948 at 10.30 a.m. E F
Corrigendum to Summary Record of Forty-Third Meeting E F
Forty-Fourth Meeting Held 11 March 1948 at 3.30 p.m. E F
Corrigendum to Summary Record of Forty-Fourth Meeting E F
Forty-Fifth Meeting - Held 12 March 1948 at 10.30 a.m. E F
Corrigendum to Summary Record of Forty-Fifth Meeting E F
Forty-Sixth Meeting - Held 15 March 1948 at 3.00 p.m. E F
Forty-Seventh Meeting - Held 17 March 1958 at 10.30 a.m.E F
Corrigendum to Summary Record of Forty-Seventh Meeting E F
Forty-Eighth Meeting - Held 18 March 1948 at 3.00 p.m. E F
III. 'Working Papers (E/CONF.2/C.3/W.)
No working papers were issued by the Third Committee.
IV. Sub-Committee A (Articles 16-19) Documents (E/C0NF.2/C.3/A)
1 Agenda for First Meeting - Held 15 December 1947 at
10.30 a.m.
2 Agenda for Second Meeting - Held 16 Demember 1947 at:
4.00 p.m.
3 Agenda for Sixteenth Meeting - Held 7 January 1948
4 Agenda for Seventeenth Meetnig - Held 8 January 1948
5 Agenda for Eighteenth Meeting - Held 10 January 1948
at 10.30. a.m.
6 Agenda for Nineteenth Meeting - Hed 12 January 1948
at 3.00 p.m
7 Agenda for Twentieth Meeting - Held 13 January 1948
at 6.00 p.m.
8 Agenda for Twenty-First Meeting - Held 14 January 1948
at 10.30 a.m. . ..
/5
E F
E F
E.F
.....
Document
Number
42
42/Corr.1
42/Corr.2
43
43/Corn1
44
44/9qrz
45/Corr.l
46
47
47/6rr.1
48 .-, E/CONF.2/C.3/95
Page 16
IV. Sub-Committee A (Articles 16-19) Documents (E/CONF.2/C.3/A)
Document
Number Short Title Language
9 Agenda for Twenty-First Meeting - Held E F
15 January 1948 at 10.30 a.m.
10 Agenda for Twenty-Third Meeting - Held E F
16 January 1948 at 10.30 a.m.
11 Agenda for Twenty-Fourth Meeting - Held E F
19 January 1948 at 3.00 p.m.
12 Agenda for Twenty-Fifth Meeting - Held E F
20 January 1948 at 3.00 p.m.
13 Agenda for Twenty-Sixth Meeting - Held E &F
23 January 1948 at 6.00 p.m.
14 Agenda for Twenty-Seventh Meeting - Held E &F
24 January 1948 at 10.30 a.m.
15 Agenda for Twenty-Eighth Meeting - Held E &F
26 January 1948 at 3.00 p.m.
16 Agenda for Twenty-Ninth Meeting - Held E F
27 January 1948 at 3.00 p.m.
17 Agenda for Thirtieth Meeting - Held E F
28 January 1948 at 10.30 a.m. -
Text of Article 1m7Ams trAdopted by EESb-Comiie A B
18/lRelv.1 Texte de 'Aa TtT TrtipcTe 17 tel qu'il Ados par la F only
U-.mi'ic A
19 Agenda for Thirty-First Meeting - Held E F
2.9 Jan.u ary 1948 at 30p.m.
20 Agenda for Thirty-Se-cond Meeting Held E F
3January 1948 at 3.00 p.m.
21 Combined Meeting of Sub-Co mmittee A ofCommiEttee III, F
Sub-Committee D of Committee VI and the Joint Sub-
Committee of Committees II and VI - Note by the Chairman
of Committee II, therma Acting Chain oIIIf Committee ,
and the Chairman of Committee VI
22 isAgenida for Firt Jont Meetin E &Fg - To be Hed.
3 Febr.u0ary 948at b0 p.m.
2 mm Suary of First Joint Meeting - Held 3 February 1948 at E F
6.p-.
23/Corr.l r Corigendumam to Sumry Record of First Meeting - Held E F
3 Febrary 1948 at 6.00 p.m.
23/Corr.2 Corrigendumm to Sumary Record of First Meeting Ee F
24 Agenda for Thirty-Third Meeting - To be Held E &F
9 February 1948 at 3.00 p.m.
/24/Corr.1 E/CONF.2/C.3/95
Page 17
IV. Sub-Committee A (Articles 16-19) Documents (E/CONF.2/C.3/A)
cument Number _
Short TitJ
ty-Third Mrigendum to Agenda for Thi n eeting
Agenda o hirty-Fourth Meeting - Held!.
10 February 1948 at 6.00. p,.
Agenda for Thirty-Fifth Meeting - Hold
11 ebruary 1948 at 3.00 p.m.
Ainda for.Thirty-Sixth Meeting - Held
14 Pbrua 1948
Aegenda for Thirty-Seventh Meting - Held
16 February 1948 at 10.30 a.m.
V. Sub-C('/iONF.2ee A/W/orking Papers CECNN./C.3LAW.)
(Articles 16 and 17) Alternative Proposals
Ad ciiklgEry_
Agenda-for Fourth Meeting Thursday,
18 December, 4.00 p.m.
Text of Proposerd New Paragraph 4, Aticle 16
Agenm Fi dmay,19 De.ezba.m.9.7 a 10,30 tm.
Agenda, Monday, 22 December 10.30 a.m.
Suggestion for Amendments to Article 17
(Submitted by the Delegate for the United States)
Notes an Sixth Meeting, 20 December.1947, 4.00 p.m
aft of grestek Pratof±Aticle 17 - Reduction of
Tariffs and Elimienation of Prefrences
Agenda, Tuesday, 23, December 1947 4.00 p.m.
Notes of Seventhe Meeting, 22 Dcember 1947,
10.30 a.m.
to Neots -of Setvenh tingM4eenttig-
r Dmeceier 147, 10.30 .a.m,
rmenposemeAndment to Articl E &Fe 17, Paragraph 1 (C)
(Suggested for discussion by the Delegate of France)
Mexgo: PropensedeAmcdment - R E Fules for Negotiation
toed te dddto Article 17, Paragraph 1
Agenda for the Ninthg - eld E F inHelg on Saturday,
27 December 1947, .10.30 am.
........................ .
Docum
Number
24/c
25
26
27
28
2
3
6
3
1
11
13/COc
12
13
4
E &F
E &F
E &G
E F
E F
E F
E F
BE
E F
EF
E F
E F
E M
..
HP E/CONF.2/C.3/95
Page 18
V. Sub-Committee A Working Papers (E/CONF.2/C.3/A/W.)
Document 7
Nnnr.: S
5 ighthk tNotes of EFil meeing, 23 Deoemer M947, .00 p.m.c bE P
15/Corr igend=ttb-jt.1of Eght Mro Notes of g : ;:: i h E &F
23 December 1947, 4.00 p.1
16 Agenda for the Tenth Meeting to b Hld Monday e F
29 December 10.30 a.m.
17 Agenda for Elvert YFg - bd ol oe6nnh ToMeesay, E .
30 December 1947, 10.30 a.m.
18 ee HeNoes of the nth Mti - l S N turday, eeti F
27 Deccor147, 10.30 a.m,
18/Rv.1 l ;2sd e.Nineide.Study,-Noes ofth E 3
27 December 1947, 10.30 a.m....
18/Rev.2 Notes on the Ninth Meeting and Eleventh Meetings E F
RlSctul, ocebc 19410.30 am. and
Tuesday, 30 ecm.me1947, 10.30 a.mm,
19 Tw Ageda f rNlfdh Meing Held on Vbesday, E F
31 lCeer 1`4 am. . ,
20 Notedf er t1h FKeetMnday 29 Dscemo3 .7 - -
10.30:814
22 Agenda n for Thir,eenth Meeting - Held oSaturday E F
3 January 1948, 10.30 a.m.
22 Not*CeweelIfth Mtng - EHeFld onWonedy, B E
31 Doom 1947, 10.30 &.m
22/CoIxTN igendueme Auce2ts de la molySano Osn
23 Agenda for Fotenthday,ing E F-ld o Mon
5.anuary 48D.00 p~m =*q*
24 Notes o E Ff b on Saturday, -
3 Janua-198,-1.0 a.m. -
25 Agma or FiftocnhMin - Hod Tueday, .. }3
6 January 1948
25/Corr. T Corriglndum 1re du Jour d la. qinzeeneane F n
26 NotesodPuteenth Meeting - Held on Monday' E F
5 January 1948, 3.00 p~..
27 Notes of th Flkbeth MeeHel on: ieday, BP
6 January 1948, 3.00 p.m
Notes of Sixteenth Meeting - Held d ednesdy B P
7 Januar 1948, 3.00 p.m.
/29 E/CONF.2/C.3/95
Page 19
V. Sub-Committee A Working Papers (E/CONF. 2/C.3/A/W.)
Short Title
Notes of the Seventeenth Meeting - Held on Friday,
9 January 1948, 10.30 a.m.
Corrigendum to Notes - Seventeenth Meeting
Notes of the Eighteenth Meeting - Held Saturday,
10 January 1948, 10.30 a.m.
Notes of the Nineteenth Meeting - Held Monday,
12 January 1948, at 3.00 p.m.
Notes of the Twentieth Meeting - Held Tuesday,
13 January 1948, 6.00 p.m.
Corrigendum to Notes of Twentieth Meeting -
13 January 1948, 6.00 p.m.
Corrigendum to Notes of Twentieth Meeting
13 January 1948, 6.00 p.m.
Notes of the Twenty-First Meeting - Held Wednesday,
14 January 1948, 10.30 a.m.
Notes of the Twenty-First Meeting - Held Wednesday,
14 January 1948, 10.30 a.m.
Notes of the Twenty-Second Meeting - Held Thursday,
15 January 1948, at 10.30 a.m.
Notes of the Twenty-Third Meeting - Held Friday,
16 January 1948, at 10.30 a.m.
Report of Working Party 1 (Article 16, Annex A)
Report of Working Party 2 (Aerticle 7)
Addendum to Roport of Working Party 2 (Article 17)
Rapport du Groupe de Travail No. 2 (Article 17)
Notes of Twenty-Fourth Meething - Held Monday,
19 January 1948, 3.00 p.m.
Notesof the Twenty-Fifth Meeting - Held Tuesday,
20 January 1948, at 3.00 p.m.
Corrigendum to Notes of Twenty-Fifth Meeting,
20 January 19.48, 3.00 p.m.
sub-Committee A (Articles 16, 17, 18, 19) - Amendment
to Article 17
Sous-Commission A (Articles 16, 17, 18 et 19) -
Amendment au Texte de l'article 17
/41
Language
E F E &F E F E F E F
E &F E &F
E F
E &F
E F E F
E F E F
E &F
F Only
E F
E F
E &F
E F
F Only
Document
Number
29
29/Corr.1
30
31
32
32/Corr.1
32/Corr.2
33
33/Add. 1
34
35
36
37
37/Add.1
37/Rev.1
38
39
39/Corr.1
40
40/Rev.1 E//CONF.2/C.3/95
Page 20
V. Sub-Committee A Working Papers (E/CONF.2/C .3/A/W.)
Short Title Language
Notes of Twenty-Sixth Meeting - Held Friday,
23 January 1948, 6.00 p.m.
Notes of Twenty-Seventh Meeting - Held Saturday,
24 January 1948 at 10.30 a.m.
E F Corrigendunm to Notes of Twenty-Seventh Meeting
24 January 1948, 10.30 a.m.
42/Rev.1 Notes de la Vingt-Septieme Seance - qui' s'et tenue
le samedi 24 janvier 1948a, a 10h.30 E F
43 Notes of eTwenty-Eighth Meeting - Held Monday,
26 January 1948, 3.00 p.m. E F
44 Notes of Twenty-Ninth Meeting - Held Tuesday
27 January 1948, 3.00 p.m.
45 Notes of Thirtieth Meeting - Held Wednesday,
28 January 1948, 10.30 a.m.
45/Corr.1 Corrigendum to Notes of Thirtieth Meeting -
28 January 1948, 10.30 a.m.
46 Notes of Thirty-First Meeting - Held Thursday,
29 January 1948, 3.00 p.m.
47 Reports of Working Party 3 (Article 18) and
Working Party 4 (Article 19)
48 Notes of Thirty-Second Meeting - Held Friday,
30 January 1948, 3.00 p.m.
49 Notes of Thirty-Third Meeting - Held Monday,
9 February 1948, 10.30 a.m.
50 Notes of Thirty-Fourth Meeting - Held Tuesday,
10 February 1948, 6.00 p.m.
51
52/Corr.1
E F
Notes of Thirty-Fifth Meeting - Held Wednesday,
11 February 1948, 3.00 p.m. E F
Draft Report of Sub-Committee A (Articles 16, 17, 18, 19)
Corrigendum to Draft Report of Sub-Committee A
(Articles 16, 17, 18, 19) E F
Notes of Thirty-Sixth Meeting -
14 February 1948, 3.00 p.m.
Notes of Thirty-Seventh Meeting -
16 February 1948 10.30 a.m.
Held Saturday,
Held Monday,
Notes of Thirty-Eighth Meeting - Held Monday,
16 February 1948, 5.30 p.m.
F Only
E F
E F
E F E &F
E F
E F
E F
/VI. Sub-Committee B
Document
Number
41 E F
42 E F
42/Corr.1 E F
53 E F
54 55 E F E/CONF.2/C.3/95
Page 21
VI. Sub-Committee B (Article 18A) Documents (E/CONF.2/C.3/B)
Document
Number Short Title
1 Sub-Committee B (Article 18A) of Committee III-a
2 Agenda for Second Meeting
3 Agenda for Third Meeting - Held Monday, 19 January 1948
6.00 p.m.
4 Agenda for Fourth Meeting - Held Thursday,
26 February 1948
5 Agenda for Fifth Meeting - Held Friday,
5 March 1948 at 10.30 a.m.
VII. Sub-Committee B Working Papers (E/CONF.2/C.3/B/W.)
1 Notes on Second Meeting - Held Monday, 12 January 1948
at 10.30 a.m.
1/Rev.1 Notes on Second Meeting - Held Monday,
12 January 1948 at 10.30 a.m.
1/Rev.1/Corr.1 Corrigendum to Notes on Second Meeting -
2
3
4 . '
5
6
6fpr
7 .
7/Corl
1,
2
4 ., -; '
Language
E F
E &F
F
E &F
E F
Draft Proposed by the Delegaition ofE the United Kngdom F
Notes on Third Meeting - Held Monday, 19 January 1948 E F
6..m.
Draft R ort of Sub-Committee B (Proposed New S E F
Arti e18A).
Note8n Fourth EMeting - Held ThursdaEy, .
26 February 1948
Sb-Comittee BE Proposed New Art-icle 18A) ReEsolutions B
of the Maritime Conference
Corrigendum to Resolutions of ethe Martim Conference E F
Noteeo Ftifth MHeeEng - -ed Saturday, 6 March 19E48 B
Corrigendum to Notes on Fifth Meeting of E &F
Sutb-Co iiee -BProposed New Article 18A) .
VII. Sub-Committee C (Articles 32-39E) Documents/ (/CONF.2/C.3C)
roposed AgEda for the Fir-st Meeting To Ebe Held F
22 December 1.947, 10.30am.
enda for thMe Second meting - Held on 23 December, E F
4.0)op . ;RomK
enda for T7hrd Meeti-ng To be Held 27 Decem1be7r -9? E F
10a0 -..
enda for the -oFrth Meeting - To be Held,. E F
30 December 1947 at 4.00 p.m.
/5 -: E/CONF.2/C .3/95
Page 22
VI. Sub-Committee C (Articles 32-39) Documents. (E/CONF.2/C.3/C)
Document
Number Short Title Language
5 Agenda for Fifth Meetirg To be Held on
31 December, 4.00 p.m.
6 Agenda for Sixth Meeting - To be Held on E F
2 January, 4.00 p,m.
7 Agenda for Seventh Meeting - To be Held on E F
3 January 1948, 4.00 p.m.
8 Agenda for Eighth Meeting -Held 5 January 1948 E F
9 Agenda for Ninth Meeting - Held 7 January 1948 E F
10 Agenda for Tentlh Meeting - Held 8 January 1948
11 Agenda for Eleventh Meeting - Held 9 January 1948 E F
12 Agenda for Twelfth Meeting - Held. 10 January 1948 E F
13 Agenda for Thirteenth Meeting - Held on 12 January 1948 E F
14 Agenda for Fourteenth Meeting - Held, on 14 January 1948 E F
15 Agenda for Fifteenth Meeting - To be Held on E F
15 January 1948 - .
16 AgHenda for Sixteenth Meeting - To be eld on . -,
16 January 1948 -
17 Agenda for Seventh Meeting - To be Held on B
21 January 1948
18 Article 33 - Anti-Dumping and Countervailing Duties E F
Report of the Working Party to Sub-Committee
19 Ai forEibteent Meeting To be -lA n1 t . F:
24 Ja 14. .
20 Agenda for Nineteenth Meeting - To be-nld B I
20 January 1948
IL Sub-Committee C Working-Peer . /COPF.2/.J3 W)-)
1 Ndes First Meeting Held. 2 December. 3947.,; F
10.30 a.m. . - -
2 Notes on Second Meeting - Held 23 December 1947, E
4.00 p.m., Room K
3 Notes on Third Meeting - 27 December, 1947, 10.30 Bm. B F
4 Notes-.-ourth Meeting - Held on 30 December 11.. -
440 pen.
5 Notes on Fifth Meeting * Held n 3 Decembor 19!IT-. F
4.00 p.m.
~/6 . E/CONF.2/C.3/95
Page 23
IX. Sub-Committee C Working Papers (E/CONF.2/C.3./C/W.)
Document
Number Short Title Language
6 Notes on Sixth Meegting - Held on 2 January 1948,
4.00 p.m.
Notes on Seventh Meeting - Held on 3 January 1948,
4.00 p.m.
Notes on Eighth Meeting - Held on 5 January 1948
Notes on Ninth Meeting - Held on 7 January 1948
at 10.30 a.m.
Notes on Tenth Meeting - Held 8 January 1948
Notes on Eleventh Meeting - Held on 9 January 1948,
at 5.45 p.m.
Note on Twelfth Meeting - Held on 10 January 1948,
at 3.00 p.m.
Notes on Thirteenth Meeting - Held on 12 January 1948,
at 3.00 p.m.
Notes on Fourteenth Meeting - Held on 14 January 1948
at 6.00 p.m.
Notes on Fifteenth Meeting - Held on 15 January 1948
at 10.30 a.m.
Notes on Sixteenth Meeting - Held on 16 January 1948 at 6.00 p.m.
Notes on Seventeenth Meeting - Held on 21 January 1948
at 10.30 a.m.
Draft Report of Sub-Committee C to Committee III
Notes on Eighteenth Meeting - Held 26 January 1948,
10.30 a.m.
E F E F
E F
E F
E
F
E F
E F E F E F
E F E F
E F
E F E F
Notes on Nineteenth Meeting - Held 28 January 1948, E F
at 6.00 p.m. . ^ --
Sub-Comi,t4tee D (Ar-icls/ 40.1/C/aOn 43)C.3/D)Documents (EICNF.& /_D
Sub-Committee D (Articles 40 ItoEe 43) of Committee II F
ing -ATg enda ld fo &Musae, E FtnobeoEn Thursdy-
8 Jrw 19' at.4 p.m.
Agenda for Fourth Meeting - H E Feld Saturday, ; -
10 Jauarv948
tAgenda for Fih Meetino on - To sdse Held 'Eedneey BF
14 January 1948 at 6.00 p.m.
/5
7
8
9
10
11
12
14
15
16
17
18
19
20
2
3
4 E/CONF.2/C.3/95
Page 24
X. Sub-Committee D (Articles 40, 41 and 43) Documents (E/CONF.2/C.3/D)
Document
Number Short Title
5 Agenda for Sixth Meeting - To be Held Friday, E F
16 January 1948 at 3.00 p.m.
6 Agenda for Seventh Meeting - To be Held Tuesday E F
20 January 1948
7 Agenda for Eighth Meeting - To be Held Wednesday, E &F
28 January, at 3.00 p.m.
XI. Sub-Committee D Working Papers (E/CONF.2/C.3/D/W.)
1. Agenda for the First Meeting - To be Held Monday, E F
29 December 1947 at 4.00 p.m.
2 Notes on First Meeting - Held Monday, 29 December 1947, E F
4.00 p.m.
2/Corr.1 Corrigendum to Notes of Meeting - Held Monday, E &F
29 December 1947, 4.00 p.m.
3 Agenda for Second Meeting - To be Held Saturday, E F
3 January 1948 at 4.00 p.m.
4 Notes on Second Meeting - Held Saturday 3 January 1948 E F
5 Observations of the Netherlands Delegation on E F
Article 43
6 Recommendations of Fifth Committee Relating to E F
Article 43
7 Notes on Third Meeting - Held Thursday, 8 January 1948, E F
5.45 p.m.
8 Notes on Fourth Meeting - Held Saturday, E F
10 January 1948, 5.45 p.m.
8/Corr.1 Corrigendum to Notes on Fourth Meeting E &F
9 Notes on Fifth Meeting - Held Wednesday, E &F
14 January 1948, at 6.00 p.m.
10 Notes on Sixth Meeting - Held Friday, 16 January, E F
3.00 p.m .
11 Notes on Seventh Meeting - Held Thursday, E F
22 January at 3.00 p.m.
12 Draft Report. E F S
13 Notes on Eighth Meeting - Held Wednesday, E F
28 January 1948
/XII. Sub-Committee E E/CONF.2/C.3/95
XII. Sub-Committee E (Articles 20 and 22) Documents (E/CONF.2/C.3/E)
Document
Number Short Title Language
1 Sub.Committee E (Articles 20 and 22) E F
2 Agenda for First Meeting - To be Held Monday, E &F
5 January 1948 at 10.30 a.m.
3 Agenda for the Second Meeting - Held Tuesday, E &F
6 January 1948
4 Agenda for the Third Meeting - Held Wednesday, E F
7. January 1948
5 Agenda for the Fourth Meeting To be Held Thursday, E F
8 January 1948 at 5.45 p.m.
6 Agenda for the Fifth Meeting - To be Held Friday, E F
9 January 1948 at 5.45 p.m.
7 Agenda for the Sixth Meeting - To be Held Saturday, E F
10 January 1948 at 5.45 p.m.
8 Agenda for the Seventh Meeting - To be Held Tuesday, E F
13 January 1948 at 3.00 p.m.
.9 Agenda for the Eighth Meeting - To be Held Wednesday, E F
14 January 1948 at 3.00 p.m.
10 Agenda for Ninth Meeting - To be Held Monday, E F
:9 February 1948 at 3.00 p.m.
11 .Agenda for Twenth Meeting - To be Held 10 February 1948 E F
at 10.30 a.m.
12 - Agenda for the Eleventh Meeting - To be Held Thursday, E &F
12 February 1948 at 3.00 p.m.
XIII. Sub-Committee E Working Papers (E/CONF.2/C.3/E/W.)
1 Notes of the First Meeting - Held Monday, 5 January 1948 E F
2 Notes on the Second Meeting - Held Tuesday, E F
6 January 1948
3 Notes on the Third Meeting - Held Wednesday, E F
7 January 1948, at 10.30 a.m.
4 Notes of the Fourth Meeting - Held Thursday, E F
9 January 1948 at 5.45 p.m.
5 Peru: Proposed Amendment E F
6 Ireland: Proposed Amendment E F
/7 E|CONF.2/C.3/95
Page 26
XIII. Sub-Committee E Working Papers (E/CONF.2/C.3/E/T.)
Document
Number Short Title
7 Notes on the Fifth Meeting - Held Friday,
9 January 1948 at 5.45 p.m.
7/Corr.1 Corrigendum to the Notes on the Fifth Meeting
8 Notes on the Sixth Meeting - Held Saturday,
10 January 1948 at 5.45 p.m.
9 Composition and Terms of Reference of Working Parties
10 United Kingdom: Proposed Amendment
11 Report of Working Party No. 5 on Item 17 (Sweden)
12 Notes on the Seventh Meeting - Held Tuesday,
13 January 1948 at 3.00 p.m.
13 Notes of the Eighth Meeting -
14 January 1948 at 3.00 p.m.
14 Report of Working Party No. 3
and Item 7 (Greece)
15 Report of Working Party No. 4
16 Report of Working Party No. 6
Item 24 (Geneva Draft Note)
16/Add. 1 Report of Working Party No. 6
Note)
17 Report of Working Party No. 8
18 Report of Working Party No. 1
19 Report of Working Party No. 9
and 56. (Czechoslovakia)
Held Wednesday,
on Item 6 (Australia)
on Item 8 (China)
on Item 23(Chlie) and
on Item 24 (Geneva Draft
on Article 20(2) (c)
on Items 55 and 57 (India)
Notes on the Tenth Meeting - Held Tuesday,
10 February 1948 at 10.30 a.m.
Notes on tpe Ninth Meeting - Held Monday,
9 February 1948 at 3.00 p.m.
Draft Report of Sub-Committee E to Committee III
Notes on the Eleventh Meeting - Held Thursday,
12 February, at 3.00 p.m.
/XIV
E F
E F
E F
E F
E F
E. F
E F
E F
E.. F
E F
E F
E F
E F
E F
E F
F
E F
S E/CONF. 2/C.3/95
Page 27
XIV..Sub-Committee F (Articles 21, 23 and 24)
Documents (E/CONF.2/C.3/F)
Document
Number Short Titie
1 Sub-Committee F (Articles 21, 23 and 24)
2 Agenda for First Meeting - To be Held on
6 January 1948 at 5.45 p.m.
3 Agenda for Second Meeting - To be Held on
7 January 1948 at 5.45 p.m.
4 Agenda for the Third Meeting, To be Held on
8 January 1948
5 Agenda for Fourth Meeting, To be Held on
12 January 1948 at 5.45 p.m.
5/Rev.1 Agenda for Fourth Meeting, To be Held on
12 January 1948 at 6 p.m.
6 Agenda, for Fifth Meeting - To be Held on
13 January 1948 at 6 p.m.
7 Agenda for Sixth Meeting - To be Held on
15 January 1948 at 3.00 p.m.
8 Agenda for Seventh Meeting - To be Held on
16 January 1948 at 3.00 p.m.
9 Agenda for Eighth Meeting - To be Held on
17 January 1948 at 3.00 p.m.
10 Agenda of Tenth Meeting - To be Held on
6 February 1948 at 6.00 p.m.
11 Agenda for Eleventh Meeting - To be Held on
9 February 1948
12 Agenda for Thirteenth Meeting - To be Held on
13
1
1/Corr.1
2
2/Corr.1
E F
E F
E F
E F
E &F
E F
E F
F
E F
E &F
E &F
E &F
25 February 1948 at 4.00 p.m.
Agenda for Fourteenth Meeting - To be Held on E &F
15 March 1948 at 6.00 p.m.
XV. Sub-Committee F Working Papers (E/CONF.2/C.3/F/W.)
Notes on First Meeting- Held 6 January 1948 at .E F
5.45 p.m.
1 Corrigendum to Notes of First Meeting E &F
Notes on Second Meeting - Held 7 January 1948 E F
at 4.45 p.m.
1 Corrigendum to Notes on Second Meeting E &F
/3 E/CONF.2/C.3/95
XV.
Sub-Committee F Working Papers (E/CONF.2/C.3/F/W.)
t
Shiitle
ance: Proposed Amendment to Article 23 E F
Norway: Proposal E F
Norway: Amendment E F
Articl 21 and 23 E F
Corrigendum Only E
Statement by Delegate of France, 8 January 1948 E F
Notes on Third Meeting - Held 8 January 1948 E F
at 10.30 a.m.
Report of Workix arty on Paragraph 3 (b)of E F
Article 21
Report of Working Party oii Paragraph 3 (c) (i) E F
of Article 21
Statement by Delegate for Belgium at Fourth Meeting E F
o- Sub.Coretee F Held 12 January 1948 at 6.00 p.m.
Notes of elourth Meetri 1g Haod 12 EJanuay1948 t F
6.00 p.m.
Nting-htes on Fifth Ne:ldE.3 JanuarE 1948 at * F
6.oo,.
ia proposedcAmemdmhnoslova: Prnet E F
posalLiberiFa,Do ~..
th Mee00teee H- HSig _ eld 15 January 1EE94 F
at 3.00 p.m.
Notes on Eighth Meeting - Held 17 January 1948 E F
at 3.00 p.m.
1 u u torrniges onto ot on Eighth Meeting E &F
Notes on Seventh Meeting - Held 16 January 19E48 F
.m.at 3.00 P
Report of Working Party on Article 21 E F
Notes on Ninth Meeting - Held 23 January 194E8 F
at 10.30 a.m.
Corrigendum to Notes on-Ninth Meeting E &F
Report of Informal Working Party on Article 21 E F
Report of Working Party on ArticleE 24 F
Page 28
Docuan1
Number
3
4
6
16/Corr.
7
8
9
10
11
12
3
14
15
16
17
171/Corr.
18
19
20
2.10/Corr
21
22
/23
gLam E/CONF.2/C.3/95
Page 29
XV. Sub-Committee -F !Working Papers (E/CONF/2/C.3/F/W.)
Document
Number Short Title
23 New Zealand: Proposal on Article 21 E F
24 Brazil: Proposal on Article 21 E F
25 Notes on Tenth Meeting - Held 6 February 1948 E F
26 Notes on Eleventh Meeting - Held 9 February 1948 at E F
3.00 p.m.
27 Draft Text of Articles 21 and 24 As Approved at E F
Tenth Meeting
28 Draft Report to Committee III on Article 21 F F
29 Agenda for Twelfth Meeting - To be Held E &F
16 February 1948
30 Notes on Twelfth Meeting - Held 16 February 1948 at E F
3.00 p.m.
31 Report of Working Party on Article 23 E F
31/Corr.1 Corrigendum to Report. of Working Party E F
31/Rev.1 Report of Working Party on Article 23 E F
31/Rev.2 Report of Working Party on Article 23 E F
31/Rev.2/ Corrigendum to Report of the Working Party on E F
Corr.1. Article 23
32 - Notes on Fourteenth Meeting - Held 15 March 1948 at E F
9.45 p.m
32/Corr.1 Corrigendum to Notes on Fourteenth Meeting E F
XVI. Sub-Committee G (Swiss Proposal) Documents
(E/CONF.2/C.3 /G)
1: Sub-Committee G of Committee IlI E F
2 Agenda for First Meeting - Held 9 January 1948 E &F
3 Agenda for. Second Meeting - Held 15 January 1948 at E &F
6.00 p.m.
4 Agenda for Third Meeting - Held 19 January 1948 at E &F
3.00 p.m.
5 Agenda for Fourth Meeting - Held 21 January 1948 at .
10.30 a.m.
6 Agenda for Fifth Meeting - Held 23 January 1948 at E &F
6.00 p.m.
7 Agenda for Sixth Meeting - Held 24 January 1948 at E &F
3 .00 p.m. -
/8 E/CONF.2/C.3/95
Page 30
XVI. Sub-Committee G (Swiss Proposal) Documents
Document (E/CONF.2/C.3/G)
Number Short Title Language
8 Agenda for Seventh Meeting - Held 27 January 1948 at E &F
6.00 p.m.
9 Agenda for Eighth Meeting - Held 4 February 1948 at E &F
6.00 p.m.
10 Agenda for Ninth Meeting - Held 25 February 1948 at E &F
2.30 p.m.
11 Agenda for Tenth Meeting - Held 28 February 1948 at E &F
10.30 a.m.
XVII. Sub-Committee G Working Papers (E/CCNF.2/C.3/G.W.)
1 'Notes on First Meeting - Held 9 January 1948 at E F
10.30 a.m.
1/Corr.1 Corrigendum to Notes on First Meeting E F
2 Notes on Second Meeting - Held 15 January 1948 at E F
6.00 p.m.
3 Notes on Third Meeting - Held 19 January 1948 at F E
3.00 .M.
4 Notes on Fourthg Meetin 211- Heldy 1 J8 aanuar94t E F
.m.10.30 a .
4/Rev.l Notes on Fo aurth Meeting - Held 21 January 1918s BE .,'
10.30 a.,
5 Notes on Fifth Meeting - Held 23 January 1948 at E F
6.oo.m,
6 Notes on Sixth Meeting Held 26 January 1946 at E F
3.00 pa.
7 - e Notes on Seventh Meeting Hld 27 January 1948 at E F
6.00 p.m.
8 e nn Notes on Eighth. Meig - Held 4 February 1948 at E F
6,0 p.m.
9 m Draft Report ofII Sub-Comittee G to Committee IE F
10 Notes on N inth Meeting -Held 25 February1948 at E F
10.30 a.m.
11 Su m Revised Draft Report ofb-Comittee G to Committee E F
12 mRevisedDraft Report of Sub-Cointtee G to Committee .-F
II -Observations by the Delegation of the United..
States
13 Notes on Tenth Meeting - HelEd 28 February 1948 at ' F
10.30 a.m.
/-IIX.Sub- E/CONF.2/C.3/95
Page 31
XVII. Sub-Committee H (Subsidies) Documents (E/CONF.2/C.3/H)
Document ,
Number Short Title
1 Siub-Cmitteel uSEction C - Subsidies F
2 Agenda of Second Meeting - Held 9 January 1948 E F
3 Agnda of Third MeetiEng - Held 13 January 1948 at F
S30 a.m.
Agenda of Fourth Meeting Held 15 January 1948 at E F
6.QDm,-.
5 Agenda yof Fiftah Meeting - Held 16 Januar 1948 t E F
6.00 p.m.
6 Section C - Subsidies - Report of Working Party E F
7 Agend for Sixth MeetiEng - Held 10 February 1948 at &F
300 pm... .
8 Agenda for SeveEnth Meeting - Held 11 February 1948 at &F
1.3Oam.M. ;
an. . . -.-
9 .E Draft.Report of Sub-CoQItee 'H' on Subsidies._ F
10 F Agenda for Eighth Meeting - Held 12 February 1948 at E &
i.0. a.m. . . . . ..
MX. Sub-Committee H Working Papers (E/CONF.2/C.3/V/.)
1 Notes of First Meeting H Held 7 January 1948. E
2 Notes of Second Meeting -.eld,9 January 1948 at B
3°0 P .
3 Sectr'q.-Sbsdis - Notes by U.S. Delegation E P
4 Notes of Third Meeting - Held 13 Januat * 'a B P
10,0 a.m. . *
5. Notes of Fourth Meeting - Held 15 January 948 at P.
6.00 p.m.
6 Note-f Fith Meeting - Held 16 January 1948 aj B P
6.00 p.m.
7. Notes of Sixth Meeting - Held 10 February 1948 B F
E8 FE Notes o Seventh Meeting -Held 11 February 194 B P
9 Notes of Eighth Meeting -Held 12 February 1948 at E F
10.30 a.m. B/CONF. 2/C.3/95
Page 32
XX. Sub-Committee J (State Trading) Documents (E/CONF.2/C.3/J)
Document
Number Short Title Language
1 Sub-Committee J (Articles 30 and 31) E F
2 Agenda for First Meeting - Held 12 January 1948 at E F
6.00 p.m.
3 Agenda for Second Meeting - Held 15 January 1948 at E F
10.30 a.m.
4 Agenda for Third Meeting - Held 17 January 1948 at E F
6.00 p.m.
Agenda for Fourth Meeting. Held 21 January 1948 at E F
6.00 p.m.
6. Agenda for Fifth Meeting- Held 23 January 1948 at E F
10.30 a.m.
7 Agenda for Sixth Meeting - Held 29 January 1948 E &F
8 Agenda for Seventh Meeting - Held. 3 February 1948 at E &F
10.30 a.m.
XXI Sub-Committee J Working Papers (E/CONF.2/C.3/J/W.)
1 Notes on First Meeting - Held 12 January 1948 at E F
6.00 p.m.
* .~~~~~~~~~~~~~~~~~, . t
24 E F Notes on Second Meeting - Held 15 January 198 at
10.30 a.m.
3 E Notes on Third Meeting - Held 17 January 1948 at BF
6,OpM.
4 Notes on FoUth Meeting Held 21 January 1948 at E F
6,0 p.m.
5 NoEtes on Fifth Meeting - Hod 23 January-948 at, F
10.30 a.m.
6 NotsE on Sixth Meeting - Held 29 January 1948 at BF
6,opm.
7 E e Daft Report
8 nteon Seventh Meeting - Held 3 February 1948 E F |
GATT Library | cb652tn6814 | Check list of Documents issued from 26 November 1947 to 5 March 1948 : Prepared by the Documents Division | United Nations Conference on Trade and Employment, March 21, 1948 | First Committee: Employment and Economic Activity | 21/03/1948 | official documents | E/CONF.2/C.1/26 and E/CONF.2/C.1/1-26 | https://exhibits.stanford.edu/gatt/catalog/cb652tn6814 | cb652tn6814_90180265.xml | GATT_145 | 1,345 | 9,611 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.1/26
ON DU 21 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ENGLISH ONLY
FIRST COMMITTEE: EMPLOYMENT AND ECONOMIC ACTIVITYV
FIRST LIST OF DOCUMENTS ISSUED FROM 26 NOVEMBER 1947 TO 5 MARCH 1948
Prepared by the Documents Division
I. Documents (E/CONF.2/C.1)
Document
Number
1
2
3
3/Corr.1
3/Add.1
3/Add.2
3/Add.3
3/Add.4
3/Add.6
3/Add.7
4
Short Title
Third Meeting, Tuesday, 2 December 1947, 4.00 p.m.
Agende.
Fourth Meeting, Thursday, 4 Dcember 1947,
at 10.30 a.m. - Agenda
Preliminary Annotated Agenda for Chapter II -
Employment and Economic Activity - Prepared by
the Secretariat
Corrigendum to Preliminary Annotated Agenda
for Chapter II - Employment
Draft Charter -Haiti: Proposed Addition
Draft Charter - Uruguay: Proposed Amendment
Draft Charter - Union of South Africa:-
Proposed Amendment
Draft Charter - Philippines - Proposed Amendments
1 Draft Charter - Philippines: Proposed Amendments
Draft Charter - Colombia: Proposed Amendment
Draft Charter - Denmark: Proposed Amendment
Draft Charter - Norway: Proposed Amendment
Agenda for the Fifth Meeting - To be Held
Friday, 5 Decemer 1947, at 10.30 a.m.
E F
E & F
E F
E &F
/5 E/CONF.2/C.1/26
Page 2
1. Documents (E/CONF.2/C1l)
Document
Number Short Title Language
5 Extracts from the Report of the Sub-Committee E F
which Prepared the Geneva Text of Chapter II -
Employment. and Economic Activity
5/Corr.1 Extracts from the Report of the Sub-Committee E &F
which Prepared the General Text of Chapter I -.
Employment and Economic Activity
6 Agenda for the Seventh Meeting - To e elld on E &F
Tesuday, 9 December 1947, at 10.3 m am
7 Annotated Agenda for Chapter II - Employment E F S
and Economic Activity
7/Corr.l1 Preliminary Annotated Agenda for Chapter II -
Employment and Economic Activity
7/Corr.2 Corrigenmduma I 'OrdroeDu Jour Annóot Pour F Only
Le Chapitre II
7/Add.l1 Dratf Charter - United States: ProposedmAemndment E F
7/Add,. Draft Charter - Noarwa;:Proposed Amendment E F
7/Add.3 Addenmdumto Revised Annotated Agdend for Chapter II E &F
8 Appointment of Sub-Comimttees - t the Sixth E F
Meeting of the First Committee
8/Add.1 Appointment of Sub.-ommittees E F
9 Report of Sub-mCommitee A -F"aFir Labour Standards" E E F
10 Roepot of Sub-Committee B (Articles of Chapter II E F
other than Article 4)
11 Agenda for the Eigth Meeting - To be Held E &
on Friday 19 Demccemr 1947, at 10.30 am..
12 - Proposal by the Representative of h e
International Labour Organization Relating to
the Report of Sub-Committee A (E/Conf.2/C.1/9)
13 Proposal by the Delegation of Italy E &F
14 Agenda for inth MeetinNg - To be Held 10.30 a.mE. F &zzz7&
3tSarday, 20 December 1947 .
oved Text Appqvdby the First Eommittee During . F S
the Eighth and WnC.h Meeting (See E/Conf.2/01/SR.8
and 9)
l5/Corrml Page 3
I. Documents (E/CONF. 2/C.1)
Short Title
Texte ApprouvT Par la PremiFre Commission au
Cours de ses HuitiFme et NeuviFme STances
(voir Documents E/CONF.2/C.1/SR.8 et 9)
Proposed Redraft of Article 7 Suggested by the E F
Delegation of Belgium
Sub-Committee on the Proposed Resolution E F
Concerning International Action Relating to
Employment
Sub-Committee C: Resolution on Employment E F S
Report of the Sub-Committee
Sub-Committee C: Report of the Sub-Committee Only S
Agenda for Tenth Meeting - To be Held 3.00 p.m., E &F
Friday, 9 January 1948
Sub-Committee C: Draft Reosolution on
Unemployment Submitted by the Delegation of Cuba
Corrigendum to the Draft Resolution Submitted.
by the Delegation of Cuba
Resolution on Employment Reported by
Sub-Committee (C) of the First Committee
(Document E/CONF.2/C.1/17 - Last Paragraph)
Afghanistan: Proposed Amendment
Communication from Head of Norwegian
Delegation
Agenda for Eleventh Meeting - To be Held at
3.00 p.m., Friday 6 February 1948
Agenda for Eleventh Meeting - To be Held at
10.30 a.m. Monday, 9 February 1948
Draft Report to the Conference
Revised Draft Report to the Conference
Agenda for the Twelfth Meeting - To be Held
Monday, 1 March 1948, at 10.30 a.m.
Agenda for the Thirteenth Meeting - To be Held
Friday, 5 March 1948, at 4.00 p.m.
EF S
F
E &F ':
E &F .
.
.. .. ;. . . .
y Recor
. .
\ .
Docurnme
Nubamb
.51C/rr.l
15/Add. l
16
17
17/Corr.1
18 -
19
19/Co.1,I
20
21
22
22/Rev.1
23
23/R.1,
24 II. Summary Records (E/CONF.2/C.1/SR.1)
Short Title
Summary Record of the First Meeting - Held on
Wednesday, 26 November 1947; at 10.45 a.m.
Summary Record of the Second Meeting - Held
29 November 1947 at 5.00 p.m.
r.1 Corrrigendum au compte rendu analytique de la
deuxieme seance
Summary Record of the Third Meeting - Held
on Tuesday, 2 December 1947 at 4.00 p.m.
r.1 Corrigendum to Summary Record of the
Third Meeting .
f Sr,- R-rrthe gtougzh Meen~
Bl m4e Decenb 1947 . -
Sw=arQeco . hee ifth eoting-Hold
5-ecener1947,. at 10.30 a.m
C ormmrigeRendt=ou1y ordF of the fifth
Meeting -
Sl==recordth Sixtheeting -
m.Bl 8 Decembpr147, at 10.30 a.r,
ixiFmeCont Rendu Analytique de l oiai - b
S6ce - Tenue 8 Decenbe147,
Sura Record of the Seventh Meeting' -
Held 9 Deceae 1947 at 10.30 a.m.
nSuoryecord of the Eighth Maetig
Held 19 December 1947, at 10.30 a.m.
Su.nr -cord of the Ninth Meeting -'
Held m./20 December 1947 at 10.30 a
Corrigendunto Sunnryord of Ninth
Meeting . :
Summary Record of the Tenth Meeting:
Held 9 January.948. . -
SU'4=Rrdthe Elvotheeing, .
Held 9 February 1948 at 10,0 m,.
Survrecorf the TwolfthMeeing
Held Monday, 1 March 1948
- .-xco ofThirteenth Meeting
Held 5 March 1948, at 4.00 p.m.
III. Workingir _~~~~~~"T
WorkingAuer
Pa6 ..
. ' . .
Do=wn
Nubel
2
2/Co
3
3/Cor
4
.i
- t
E. .
3,
.
BF -
BF.
.
.
5
rr.1
6Con,.]
.
11
12
13
4I
, Page 5
Papers (E/CONF.2/C.1/W.1)C.!.1 I)
Docment
Short Title..
1 wo k ng No ripapers were issued by themmittee First Co
IV. Stu.Co umiee le /AADocuments rti/cCN. PoC.1/A)E!CF.2/.L
nNo documass wd er e i1ueqyiyube -Commdteo
V. Sub-Committeeng Papers EA ONWorki(1/A/W.)/CF.2/C.
1 Report of the Drafting Group on Article 4 E F
VI. Sub.Committee B (Other ArDtciclee foECCmNF.e/nts/B (O?C.23
No documents were issued by Sub-Committee B
VII.m Sub-Comittee B Woarking(E/ ONF.2/o.1/B/W.NPpersC)
B- . er -VMF.
No working papers issued- by StubCommitee B
V1I1b-Committee C (Resolution Relating to Intnerratioal Action
on Employment ) Doceutmns (E/NF.COC.1/C)2/
I The Pernemant Mrigation Committee of the E F
Internaonal tiLabour Organization
2 Agenda for First Meeting - To bee Hld at E F &
2.30.m., p 30 December 1947
3 Noste on Firste Metg in - Held 30 December 1947 E F
at 2.30 p.m. " '
4 Agenda fEor the Second Meeting To be Held B&F
10.30 a.m. on 2 Jala;. 18
1 Mxtc; Daft Fe-Qlution E F
2 Informal Proposal by the EChairman of the Sub- F
Committee as a Possible Basis for Discussion
3 Draft Resoliution on InteErnational Action Relatng F
to Employment .Note by Italian Delegation
4 Draft Resolution on EmployEment on International F
Action Relating to Employment - Note by Australian
Delegation
5 Proposal by the Representative of Brazil for a E F
Resolution on International Action Relating to
Employment
/6 E/CONF.2/C.1/26
Page 6
IX. Sub-Committee C Working Papers (E/CONF.2/C.1/C/W.) . :C
Docuao
Nure Short giti e ;T a guag ., e
6 Pr s d opoeu Roesoltin ornn Ionateactionnl Ati E F
ng to Emnplomyent- Letter from *.ctt2.
h DelegationDaihe
7 sPropesolution ooedm Rn Eployment - sPropoal E F
ebPythoolishb Merer of tuhe ommitteeib-Cc
Bsnetd omhe rmal PrInfo3posal by thae maChnrz
of the Sumbitte-Come
s on Second Meeting, Ne~da e.t0.30 .m.'.a E F .
ay, January 2, Psi8
m,, X "-.'
- tee n Thinuary rd Meetin4 ld 3 J awE 48 F
X.30 -,
10 Proposed Rntesolution Aon le E rnationalction -BF
Rela- teing to E1lynet Rpt of Draft Group
s11u toosed oltionon Internation la Action-. E
ReLtmplnyg to Eqqent - Agenda fohr Fourtli
eetin- Hd at 3m., We.00 p.ndnsJanuaryt zaday 7
1943
;-Rp of themmi Coen1tte
inak text luf rhereport of the First Cmmo it is containedsinte
cument E 3ONF.2/55,S - |
GATT Library | rt816cv8296 | Check list of documents issued from January to 18 March 1948 : Prepared by the Documents Division | United Nations Conference on Trade and Employment, March 21, 1948 | Central Drafting Committee | 21/03/1948 | official documents | E/CONF.2/C.8/28 and E/CONF. 2/C. 8/17-28 | https://exhibits.stanford.edu/gatt/catalog/rt816cv8296 | rt816cv8296_90200314.xml | GATT_145 | 47,059 | 301,468 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C .8/28
21 March 1948
ON DU
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ENGLISH ONLY
: CENTRAL DRAFTING COMMITTEE
CHECK LIST OF DOCUMENTS ISSUED FROM JANUARY TO 18 MARCH 1948
Prepared by the Documents Division
I. Documents (E/CONF.2/C.8/)
Document
Number Short Title Ianguage
Proposed Redrait of the Final Text of E &F
Chapter II
/Rev.1 Proposed Redrait of the Final Text of - E&F
Chapter Il
2 Proposed Badrait cf the Final Text of E &F
Chapter V
3 Proposee Reedraft of the Final Text of E &F
Chapter VI
3/Corr.1. Propoeed Redraft of the Final Text of E &F
Chapter VI
4 Proposed Redraft of the Final Text of E &F
Chapter IV - Section E
4/Rev.1 Proposed Redraft of the Final Text of E &F
Chapter IV - Section E
5 Proposed Redraft of the Final Text of E &F
- Chapter. IV - Section F
5/Rev.1 - Proposed Redraft of -tha Final Text of
Chapter IV - Section F
5/Rev.l/Corr.l Corrigendum to Proposed. Pedraft of the E &F
5Final Text of Chapter IV - Section F
6 Proposed Redraft of the Final Text of E &P
Ch'apter IV - Section D
6/Corr.2* 0 Proposed Redraft of the Final Text of E &
Chapter IV - Section D
This documents was issued with an incorrect symbol. The symbol should have
read E/COINF.2/C,8/6/Rev.l/Corr.2 (see E/CNF.2/C.8/6/Éev.1/Corr.3).
/6/Rev.1 E/CONF .2/C.8/28
Page 2
I. Documents (E/CM .2/C.8/)
Document
Number Short Title Language
e/.v.l Proposed Redraft of the Final Text cf E &F
Chapter IV - Section D
6/Rev.l/Add.l Prposed Redraft of the Final Text of. E &F
& Corr.1 Chapter IV - Section D - Corrigencdum
S/Rev.1/Corr.3 Corrigendum - Proposed Redraft of the Final E &F
Text of Chapter IV - Section D
7 Note by the Central Drafting Committee E* F
T/Corr.3. Corrigendum - Note by the Central Drafting 3 &F ;
Committee
8 Proposed. Redraft of the Final Text of E &F
Chapter IV - Section C
B/Corr.l Rectificatif au Texte Remanie Propose Com F C
Texte Definitif du Chapitre IV - Section C
B/Add. l Supplementary Report on Chapter IV - E F
& Corr.2 " Section C
9 Proposed. Redraft Of the Final Text of E &F
Chapter IV - Section B
9/Corr.l Proposed Redraft of the Final Text of E Only
Chapter IV - Section
9/Corr.2 Texte Remanie Propose Comme Texte Definitif F Only
du Chapitre IV - Section B
9/Add.1 Supplementary Report on Chapter IV - E &F
& Corr-3 Section B *
9/AId. 1 Supplementary Report on Chapter IV _ E F
& Corr.3/Rev.l Section B
1Q Propose& Redraft of the Final Te-ctof E &F
Chapter -Articles 8 12 1
10/Corr.l Proposed Redraft of the Final Text of E &F
Chapter III - Articles 8 - 12
l0/Add.1 Note by the Central Drafting Committee , F
il Proposed Redraft of the Final Text of F
Chapter vIII
ll/Corrl Corrigendum to Proposed Redraft of the E-F
Final Text of Chapter VIII
/12
1
1
i
1 E/CONF.2/C .8/28
Page 3
1. Documents (E/CONF.2/C.8/)
Document
Number Short Title
12 Proposed Redraft of the Final Text of E &F
Chapter IV - Article 21
12/Corr.1 Corrigendum. to Proposed Redraft of the E &F
Final Text of Chapter IV - Article 21
13 Interim Report by the Central Drafting E F
Committee on the State of its Work in
Relation to the State of Work of the
Conference (As of 7 March 1948)
14 Proposed Redraft of the Final Text of E &F
Chapter IV - Section A - Articles 18 and 19
15 Second Interim Report by the Central Drafting E F
Committee on the State of its Work in Relation
to the State of Work of the Conference -
(As on 12 March 1948)
16 Proposed Redraft of the Final Text of E &F
Chapter IV - Section A
17 Proposed Redraft of the Final Text of E &F
Chapter VII
18 Prbposed Redraft of the Final Text of E &F
Chapter IX
19 Proposed Redraft of the Final Text of E &F
Chapter III - Article 13
19/Corr.1- Corrigendum to Proposed Redraft of Final E Only
Text of Chapter III - Article 13
19/Corr.2 Rectificatif au Texte Remanie Comme Texte F F
Definitif du Chapitre III - Article 13
20 Proposed Redraft of the Final Text of E F
Article 16
20/Add.l Proposed Redraft of the Final Text of E F
Article 16 - Addondum
21 Form of Drafting Committee Reports - Note E F
by the Secretariat
22 Proposed Redraft of Final Text of E F
Chapter III - Article 14
22/Corr.l Corrigendum. to Proposed Redraft Of Final E &F
5aext of Chapter III - Article 14
23 Proposed Redraft of Final Text of Articles 42, E F
42A and 42B
/24 E/CONF.2/C.8/28
I. Documents (E/CONF.2/C.8/)
Document
Number Short Title Language
24 Proposed Redraft of the Final Text of. E &F
Chapter, I
25 Proposed Redraft of the Final Text of F F
Chapter IV.- Soction B - Article 23
26 Proposed Radraft of the Final Text of E F
Chapter III - Article 1-5
26/Corr.1 Corrigendum to Proposed Redraft of Final E Only
Text of Chepter III - Article 15
26/Corr.2 Rectificatif au Texte Remanie Propose Comme F Only
Texte Definitif du Chapitre III - Article 15
2. Proposed Redraft of the Final, Text of E F
Chapter IV.- Section B - Article 24
II. Summary Records (E/CONF.2/C.8/SR.).8,/S.)
ary Records were ARY li 'ware iaentralsDrafting Coued b trig Commttee.
Papes IN. WONF.2/C.8/W.dork:i cX8/W
Papers were issued by rthe Central Drafting Committee.eCA I7o Wor the CentralDraf'ti4e-0oz=1ttea. 5 February 1948
REPORT BY CHAIRMAN OF SUB-COMMITTEE C OF COMMITTEE IIMEE Il
ON ARTICLAND ES 13 14 ORDINATING COMMITTEETO CO-
1. AfteralA gene discussion of Article 13 of the Geneva Draft in the
Sub-Committee paragraph 1 was left to be consiladered ter. The Sub-Committee
then considered the procedure for measures in conwflict ith negotiated
comitents but not inconsistent with ngn-nerotiatmmitments,ents, i.e. with
other provisions of ChapVer IY. In relation to these measures the Sub-
Committee has approved a procedure set out on pages 2 and 3 of
E/CONF.2/C.2/C/W.9 (Annex A). The Sub-Coemittae then considered measures in
conflict with non-negoticommitmentsments and referred the question to Working
Party No. 3. These are the difficult cases and if agreement could be reached
on them the problem could be considered settled. If a procedure were worked
out for measures in conflict with non-negotiated commitments, it would however
still be necessary to consider the procedure appropriate to measures which
were inlictfliot wîth both negotiated and non-negotiated commitments.
2. Working Party No. 3 has worked out a procedure under Article 13 for
dealing with non-negotiated commitments starting from suggestions originally
put forward by the representative of Brazil. This procedure has been worked
out on a personal basis and withomut comitting the delegations concerned.
The representative of Mexico in particular has reserved his position as
regards tmmi co-itments with which this procedure might be concerned. The
proceisdure set ouA in hnnex B.
3. At the meeting of the forking Party on 30 January the representative of
China suggested two cases in which subsequent approval should be substitutes
for prior approval and on 4 February the representative of Colombia suSsested
cases in which the Organization would be required to concur in and grant
release from, obligations with respect to measure proposed in accordance with
the procedure set out in Annex B. The suggestions of the representatives o
China and Colombia are set out respectively in Annexes C and D.
4. At the meeting of the Working Party on 4 February the representative of
Mexico emphasized inat li his view the procedure set out In Annex B should
not be applicable to quantitative restrictions, unleas the exceptions to
quantitative restrictions allowed under paragraph 2 of Article 20 with respect
to agricultural or fisheries products vere submitted to the same procedure.
If, on the other hand, paragraph 2 of Article 20 were retained in its
present for, thenihe wlshed an equilmbriun to be establishdd ani he wanted
quantitative restrictions. for economic development to be capable of being
imposed on the same term as quantitative restrictions under paragraph 2 of
Article 20. It was however agreed to leave this mater for discussion later
/andato teke - 2 -
and to take up the suggèstions of the representatives of Colombïa and China.
5. It was decided that the suggestions raised by the representatives of
Colombia, China and Mexico should be examined first. If no agreement could
be reached either on the base of the procedure already worked out and set
out ln .Annex B or on the basis of the Colombian, Chinese or Mexican
suggestions, then further suggestions listed in Annex E might be considered.
These suggestions are to give an applicant Member three alternative
possibilities of action - (a), (b) and (c) - of which (c) is the procedure
already worked out and set out in Annex B.
/lANNEX A -3- RESTRICTED
E/CONF. 2/C 2/C/W. 9
28 January 1948
ORIGINAL: ENGLISH
ANNEX A
(See Pages 2 and 3)
SECOND COMMITTEE: ECONOMIC DEVELOPMENT
SUB-COMMITTEE C ON ARTICIES 13 AND 14
NOTES ON THE TENTH MEETING
Hold at the Capitol, Havana, Cuba, on Wednesday,
28 January 1948 at 3.CO p. m.
Chairman : Mr. GUTIERREZ (Cuba)
The SubCommittee considered the report of Working Party 2 contained
in document E/CONF.2/C.2/C/W.8.
The United. Kingdom representative proposed the following sentence to
be inserted at th end or the third sentence of paragraph 2 (c): "Such
measure shall in any case be terminated as soon. as the re-negotiations are
completed or discontinued."
The representative of Mexico proposed that the words "the Organization
determines that" be inserted before the words "the re-negotiations" in the
United Kingdom amendment.
The representative of China proposed the substitution of the phrase
"preceding the date on which the Member initiated action under this
paragraph" for the words "preceding the date on which the Member's original
notification was made under sub-paragraph (a) of this paragraph" in
paragraph 2 (c).
The United States representative proposed that the vords "sub-paragraph (a)
of" be inserted before the words "this paragraph" in the Chinese amendment.
Paragraph 2 (c) as amended. by the representative of the United. Kingdom,
Mexico, China and the United States was approved by the Sub-Committee.
The Sub.Committee also agrced with the conclusion reached by the
Working Party that the decision of the Sub-Committee established by the
Sixth Committee to consider Chapter VIII of the Charter, as set out in
document E/CONF.2/c.6/49, met the purpose of the Cuban proposed amendment
to paragraph 2 (a) (ii),
Paragraph 2 (a) and (b) of Article 13, as approved by the Sub-Committee
at its Sixth. Meeting, with the addition of paragraph (c), would thus read
as follows:
/"2. (a) If a E/CONF.2/C.2/C/W.9
Page 2
"2. (a) If a Member in the Interest of its programme of economic
development or reconstruction considers it desirable to adopt
any non-discriminatory measure which would conflict with any
obligation which the Member has assumed through negotiations
with any other Member or Members pursuant to Chapter IV, but
which would not conflict with the provisions of that Chapter,
such Member
(i) shall enter into direct negotiations with all the other
Member which have contractual rights with a view to
obtaining agreement. The Members shall be free to
proceed in accordance vith the term of any such
agreement, provided that the Organization is informed
of the results of the nogotiations; or
(li) shall initially or may in tho event of failure to roach
agreement under sub-paragraph (1) above apply to the
Organization. The Organization shall determine, from
among Members which have contractual rights, the Member
or Members materially affected by the proposed measure
and shall sponsor negotiations between the applicant
Member and these Members with a view to obtaining
expeditious and substantial agreement.
The Organization shall establish and communicate to the Members
concerned a time schedule for such negotiations, following as far
as practicable uny tine schedule which may have been proposed by
the applicant Member. The Members shall commence and proceed
continucusly with such negotiations in accordance with the time
schedule laid d.wn by the Organization. At the request of a
Member the Organization may, where it concurs in principle with
the proposed measure, assist in the negotiations. Upon substantial
agreement being reached, the applicant Member may be released by
the Organization from the obligation referred to in this paragraph,
subject to such limitations as may have been agreed upon in the
negotiations between the Members concerned.
(b) The Organization and the Membere concerned shall proserve the
utmost confidence in respect of matters arising under this paragraph.
(c) If as a result of action initiated under this paragraph, there
should be an increase in the importations of the product or products
concerned, including products which can be directly substituted
therefor, which if continued would be 50 great as to jeopardize
/substantially E/CONF.2/C.2/C/W.9
Page 3
subtantially the plans of the applicant Member for the establishment,
development or reconstruction of the industry, industries or branches
of agriculture concerned, and if no preventive measures consistent
with this Charter can be found which seem likely to prove effective,
the applicant Member may, af er informing, end when practicable
consulting vith tho Organization, adopt such other measures as the
situation may require provided that such measures do not restrict
imports more than necessary to offset the increase in imports
referred. to in this sub-paragraph. Except in unusual circumstances
such measures shall not reduce imports below the level obtaining
in the most recent representative period preceding the date on
which the Member initiated action under sub-paragraph (a) of this
paragraph. The Organization shall determine, as soon as
practicable, whether such measures should be continued, discontinued
or modified. Such measures shall in any case be terminated as soon
as the Organization determinos that the re-negotiations are
completed or discontinued. It is recognized that the contractual
relationships referred to in. sub-paragraph (a) of this paragraph
involve reciprocal advantages, and therefore any other Member with
whose contractual rights such action conflicts and whose trade
is materially-affected by the action, may suspend the application
to the trade of such Member of such substantially equivalent
obligations or concessions under Chaptor IV, the suspension of
which the Organization does not disapprove. Any Member intending
to suspend such application shall consult the Organization before
doing so."
/ANNEX B -6-
ANNEX B
ARTICLE 13
PROCEDUE FOR MEASURES INCONSISTENT WITH NON- NEGOTIATED COMMITMENTS
BASED ON SUGGESTIONS MADE BY THE REPRESENTATIVE OF BRAZIL AS
WORED OUT BY WORKING PARTY NO. 3 OF SUB-COMMITTEE C
OF COMMITTEE II UP TO AND INCLUMING
4 FEBRUARY1948
(a) If a Member in the interest of its prograzme of economic development
or reconstruction considers it desirable to adopt any non-d-scrininatory
measure which would conflict with any provision of Chapter IV, such
applicant Member shall so notify the Organization and shall transmit to
the Organization a written statement of the considerations in support
of the adoption of the proposed measure.
(b) The Organization shall promptly transmit such statement to the
Member or Members which are determined by the Organization to be
materially affected by the proposed measure. Such Member or Members shall,
within the time limit prescribed by the Organization, inform. the
Organization whether, in the light of the anticipated effects of the
proposed measure on the economy of such Member or Members, there is any
objection to the proposed measure If there should be no objection on
the part of the affected Members to the proposed measure, the
Organization shall immediately free the applicant Member to apply it.
(c) If there be any objections, the Organization shall promptly examine
the proposed reasure having regard to the provisions of this Charter, to
the consideration presented by the applicant Member and its stage of
economic development or reconstruction, to the views of the Member or
Members determined to be materially affected, and to the effect which the
proposed. measure, with or without modifications, is likely to have
immediately and in the long run on international trade and in the long
run on the standard of living wither. the territory of the applicant Member.
If, as a result of such examination, the Organization concurs in the
proposed measure, with or without modification, it may release the
applicant Member from its obligations under the relevant provision of
Chapter IV, subject to such limitations as it may impose.
4. (a) If, having regard to the provisions of sub-paragraph (c) of
paragraph 3 it is established in the course of such examination that the
proposed measure is unlikely to be more restrictive of international
trade than any other practicable and. reasonable measure permitted under
this Charter which could be impos A without undue difficulty and that it
is the one most suitable for the purpose having regard to the economics
of the industry or branch of agriculture concerned and to the current
4251 /economic condition -7 -
economic condition of the applicant Member, the Organization shall concur
in such measure, and grant such release as may be required to male such
measure effective.
4. (b) If in anticipation of the concurrence of the Organization in the
adoption of a measure concerning which notice has been given under
paragraph 3 of this Article, there should be an increase or threatened
increase in the importations of the product or products concerned,
including. products which can be directly substituted therefor, so
substantial as to jeopardize the plans of the applicant Member for the
establishment, development or reconstruction of the industry or
industries concerned, or branches of agriculture concerned, and if no
preventive measures consistent with this Charter can be found. which
seem likely to prove effective, the applicant Member may, after
Informing, and when practicable consulting with, the Or-anization, adopt
such other measures as the situation may require pending a decision by
the Organization on the Member's application, provided that such measures
do not reduce imports below the level obtaining in the most recent
representative period preceding the date on which the Members original
notification was made under paragraph 3 of this Article.
5. In the case of measures referred to in paragraph 3 of this Article, the
Organization shall, at the earliest opportunity but ordinarily within fifteen
days after receipt of the statement referred to in paragraph 3 (a) of this
Article advise the applicant Member of the date by which it will be notified
whether or not it is released from. such obligation or obligations as may be.
relevant. This date shall be not more than ninety days subsequent to the
receipt of such statement; provided that, if before the date set, unforeseen
difficulties arise, the period may be extended after consultation and
agreement wlth the applicant Member. If the applicant Member does not receive
such decision by the date set, it may after informing the Organization,
institute the proposed measure.
Notes:
(a) It was agreed that paragraph 2 (b) of text regarding negotiated
commitments approved by Sub-Committee C at Tenth Meeting (see
E/CONF.2/C.2/C/W.9) should be made applicable to non-negotiated
commitments and inserted at an appropriate place with the following words:
"The Organization and the Members concerned shall preserve the
utmost confidence in respect of matters arising under this Article".
(b) With reference to the proviso at the end of paragraph 4 (b) it was
agreed to insert the following in the report of the Working Party:
"There was some, discussion as to the proviso at the end of
paragraph 4 (b). The representative of China was concerned that
/there might be -8-
there might be a flood of imported in a short period equivalent to
normal- consumption over a very long period. It was agreed that the
text would. permit a Member to prohibit entirely or reduce the imports
of a product to the extent needed to ensure that, over the whole
period following the date of notification of the Member's application,
that product was not imported. at a rate greater than in the most
recent representative period preceding the date of notification".
The Chinese representative reserved the right to raise the matter
again in Sub-Committee.
(c) The representative of the United Kïngdom reserved his position as
rewards the words "and agreement" in the eighth and ninth lines of
paragraph 5. - 9 -
ANNEX C
SUGGESTION OF CHINESE DELEGATION TO WORKING
PARTY No. 3 OF SUB-COMMITTEE C
30 JANUARY 1948
6. Notwithstanding the provisions in paragraphs 3 and 5, c Member may,
under the following circumstances, adopt eny non-discriminatory meesure
which would conflict with eny provision of Chapter IV and obtain subsequent
approval of the Organization:
(a) When, due to unforeseen circumstances, its programme of economic
development or reconstruction give rise suddenly to a surplus in
certain product or products.
(b) When foreign competitors to domestic producers suddenly lower the
prices of their products for the purpose of destroying the infant
'ndustry or industries of the applicant Member, which lowering of prices
does not come within the scope of dumping, or if it does, against which
the anti-dumping measures permitted unde. Article 33 have proved to be
ineffective.
/ANNEX D -10-
ANNEX D
ARTICLE 13
PROCEDURE FOR MEASURES INCONSISTENT
WITH NON-NEGOTIATED COMMITMENTS
ADDITIONAL PARAGRAPH PROPOSED BY REPRESENTATIVE OF COLOMBIA FOR INSERTION
AFTER PARAGRAPH 4
5. (a) The Organization shah concur in any prpposed measure
and grant such release as may be required to make such
measure effective whenever the applicant Member can prove
any one of the following circumstances:
(i) that the proposed measure refers to the achievement
of a plan of economical development already in
operation at the date on which the Final Act of the
Conference on Trade and Employment is signed, provided.
the production of the product to which the proposed. measure
will be applied has been expressly contemplated in such plan;
(ii) that the proposed, measure is directed to protect an industry
which constitutes the traditional occupation of important
groups o population in the applicant country;
(iii) that the proposed measure refers to the protection of an
industry for the transformation of mineral products existing
in the territory of the applicant country;
(iv) that the internal demand has been reduced to such an extent
as to constitute a serious threat of unemployment in the
applicant country in the field of the industry or economical
activity to which the proposed measure refers;
(v) that the proposed measure will not reduce import of tha product
concerned. below the level in an representative period selected
in the manner provided for in paragraph 4 or Article 22.
(b) Couatries imposing measures under this paragraph shall as
much as possible avoid causing unnecessary damage to the interests
of any other Members countries, and shall periodically report to the
Organization regarding the application of such measures. The
Organization may at any time make recommendations as to the manner in
which any such damages can be avoided.
(c) Nothing in this paragraph shall prevent that the Organization may
authorize protective measures in cases other than those contemplated
in this provision.
/ANNEX E ANNEX E
ARTICLE 13
PROCEDURE FOR MEASURES INCONSISTENT
WITH NON-NEGOTIATED COMMITMENTS
SUGGESTIONS AS TO ALTERNATIVE PROCEDURES
3. If a Member in the interest of its programme of economic development or
reconstruction considers it desirable to adopt any non-discriminatory measure
which would conflict with any provision of Chapter IV, such Member
(a) Shall enter into direct consultations with the Member or
Members which, in its judgement, will be materially affected
by the measure, with a view to obtaining agreement. Upon
complete or substantial agreement being reached, the Member
interested in taking the measure shall apply to the Organization
for release. The Organization shall promptly examine the
application to ascertain whether the interests of all the
materiallly affected Members were duly taken into account. If
the Organization reaches this conclusion, with or without further
consultations between the Members concerned, it shall grant the
applicant Member the release requested; or
(b) Shall request the Organization to grant immediate release
for the adoption of the proposed measure. The Organization shall
grant release for the application of the proposed measure, with
or without modification, provided that it is of the view that a
prima face case has been established that no measure other than
the proposed ane is more suitable in the circumstances of the
particular industry or branch of agriculture and the general
economic situation of the applicant Member, and that the proposed
measure be taken subject to any possible subsequent representations
fram any Member or Members which may consider themselves to be
adversely and materially affected by it; or
(c) Shall so notify the Organizatior, and shall transmit to it a
written statement of the considerations in support of the adoption
of the proposed measure.
(i) The Organization shall promptly transmit, etc.
(ii) The Organization shall promptly examine, etc. 5 February 1948
REPORT BY THE CHAIRMAN OF SUB-COMMITTEE E OF COMMITTEE III TO THE
CO-ORDINATION COMMITTEE ON THE "ECONOMIC DEVELOPMENT"
ISSUE IN ARTICLE 20
The delegations of Argentina and Chile submitted amendments to
Article 20 which would give Members the right to impose quantitative
restrictions without prior approval for purposes of promoting economic
development. Sub-Committee E of Committee III to which these amendments
were referred decided that a solution might be most easily reached through
informal discussions on the meaning and application of Article 21. The group
which was appointed held numerous meetings and reached a tentative agreement
on an amendment and interpretation of paragraph 3 (b) of Article 21. The
amendment and interpretation have been referred by the Chilean delegation to
îts Government. When a reply is received the group will report to
Sub-Committee E. 5 February 1948
REPORT BY THE CHAIRMAN OF THE JOINT SUB-COMMITTEE OF COMMITTEE Il AND III
TO THE CO-ORDINATION COMMITTEE ON THE
"ECONOMIC DEVELOPMENT" ISSUE IN ARTICLE 15
The Joint Sub-Committes set up by Committees Il and III to consider the
proposals on Tariff Preferences and Customs Unions (Articles 15, 16 end 42)
has examined, among the items on its agenda, the suggestion of several
delegations that greater freedom should be allowed in the establishment of new
preferences to promote economic development. Some of these proposals would
involve the removal of the "prior approval" provisions of Article 15.
The Sub-Committee, composed o. sixteen members, held ten meetings and
then appointed a Working Party of seven to examine the proposals in detail;
the 'Working Party has held sixteen meetings. The purposes and the scope of
Article 15 have been carefully examined, and the Chairman of the Working Party,
M. Royer, has now submitted for consideration a revised text of the Article
(see copy attached). It is hoped that the Members of the Working Party will
reach agreement on a revised draft, and that the amendments proposed will
be acceptable to the delegations which have submitted amendments. In that
event a revised version cf Article 15 can be referred with approval to the
Sub-Committee.
It should be possible to inform the Co-ordinating Committee by Monday
next, 9 February, whether substantial agreement can be reached in the
Sub-Committee.
/JOINT SUB-COMMITTEE ON -2-
4 February 1948
JOINT SUB-COMMITTEE ON TARIFF PREFERENCES
REDRAFT OF ARTICLE 15
AS SUGGESTED BY THE CHAIRMAN OF THE WORKING PARTY
1. Members reconize that in special circumstances the conclusion of
preferential agreements may facilitate the carrying out of programmes of
economic development and reconstruction by enlarging the market available
for new industries or industries in process of reconstruction.
2. Any ember or Members contemplating the conclusion of such an agreement
shall communication their intention to the Organization and provide it with
the relevant information to enable it to consider the contemplated agreement.
The Organization shall. promptly communicate such information to all Members.-
3. The Organization shall consider whether the contemplated agreement
fulfils the following conditions and requirements:
(a) the territory of éach party to the agreement shall be contiguous
with that of one of the other parties, or all parties shall belong to the
same economic region;
(b) the agreement is necessary to the accomplishment of a Member's
general programme of economic development or reconstruction, and the
preferential customs duty in such agreement is neccesary for the
creation of a sound and adequate market for a branch of industry or
agriculture, to be newly created, substantially modernized or
(c) the parties to the agreement undertake to grant free entry to the
party concerned for the product of the industry in question or a
sufficient reduction of duties to achieve the objected referred to in
sub-paragraph (b);
(d) any compensation granted to the other parties by the party
receiving preferential treatment shall, if it is a preferential
concession, conf orm with the provisions of this paragraph, /Provided
that if such compensation is not practicable when the agreement is
arrived at, tariff advantages may be temporarily conceded on products
not conforming to the requirements of sub-paragraph (b) to the extent
necessary to afford due compensation.]
(e) the parties to the agreement undertake to bind against increase
the import duties which they applied to the products in question at
the M.FN. rates in force before the notification referred to in
paragraph 2, in the. country in which the industry concerned is located,
Provided that the parties to the agreement may apply to the
Organization for an increase of these duties in accordance with
/Article 13 -3-
Article 13 such bindings of duties to be governed by the provisions
of Article 17 (I d).
4. (a) If the Organization finds that the contemplated agreement fulfils
the conditions set forth in paragraph 3 and that the conclusion of the
agreement is not likely to insure substantially, the interests of Members
not parties to the agreement, it shall authorize the parties to the
agreement to depart to the necessary extent from the provisions of
Article lo as regards the products covered by the agreement.
(b) If the Organization finds that the contemplated agreement while
fulfilling the conditions set forth i. paragraph 3, is likely
substantially to injure Members not parties to the areement, the Members
contemplating the conclusion of such agreement may enter into
negotiations with the affected Members with a view to reaching substantial
agreement within a reasonable time. If and when an agreement is
arrived at, the Organization shall authorize the parties te the agreement
to depart to the necessary extent from the provisions of Article lo as
regards the products covered by the agreement.
5. Members may, subject to such conditions as the Organization may impose,
enter into preferential agreements which do not conform in all respects to
the provisions of paragraph (3), provided that such agreements have received
the approval cf the Organization by a two-thirds majority of the Members
present and voting. In its examination of any proposal falling under
the provisions of this paragraph, the Organization shah give due
consideration to the extent to which an exception from most-favourednation
clauses, such as would permit the establishment of the proposed preferential
arrangement, may already have received general recognition in treaties to
which the Members of the Organization are parties. FOURTH DRAFT OF THE REPORT OF TRIPARTITE WORKING PARTY TO
SUB-COMMITTEE A OF COMMITEE III, SUB-COMMITTEE D OF
COMMITTEE VI AND TO THE JOINT SUB-COMMITTEE OF
COMMITTEE II AND VI AS REDRAFTED AT THE
SEVENTH MEETING HELD ON THURSDAY,
19 FEBRUARY 1948
1. The Tripartite Working Party was established by the Joint meeting of
Sub-Comittee A of Comittee III, Sub-Committee D of Committeè VI and the
Joint Sub-Committee of Committees Il and VI at its first meeting held on
3 February, in order to examine proposals for incorporating in the Charter
provisions concerning a Teriff Committee and a Committee for Economic
Development and Reconstruction.
2. The Tripartite Working Party consisted of representatives from Australia,
Mexico, Pakistan, the United Kingdom and the United States and held
meetings under the Chairmanship of Dr. H. C. COOMES (Australia). It examined
(a) the joint proposal by Australia, Mexico and the United States
(E/CONF.2/W.15) and the amendment to this proposal submitted by the
delegation of Pakistan (E/CONF. 2/W.15/Add.1);
(b) the proposal submitted to the Working Party by the delegations of
Belgium and Pakistan;
(c) the amendments relating to the Tariff Committee suggested by the
delegation of China (E/CONF.2/C.6/12/Add.7); and
(d) the amendment submitted by the delegation of Cuba to Article 17,
paragraph 4 (E/CONF 2/C.3/A/W.48).
3. As a result of its examination the Working Party has proposed for
consideration by the Sub-Committees:
(i) an amendment) Article 70 of the Draft Charter dealing with
the structu-e of the Oranization and set out in Annex A;
(ii) a new Article 81A providing for a Committee for Economic Development
and Reconstruction as set out in Annex B:
(iii) a revised text of Article 81 of the Draft Charter On the Tariff
Committee as set out in Annex C;
(iv) a change in the structure of paragraph 4 of Article 17 as
contained in E/CONF.2/C.3/A37 and set out in Annex D;
(v) an amendment to Article II of the G.A.T.T.
/4. In relation
5107 -2-
4. in relation to the functions of the Committee for Economic Devolopment
and Reconstruction, 'the Working Party drew attention to the fact that the
proposals would have the effect of giving the Committee almost exclusive
initial responsibility in relation to Articles, such as Articles 9, 10, and
11, in which economic development considerations would be dominant. In
other cases before the Organization, such as those under Articles 13, 14 and
15, the Committee would have initial responsibility for those aspects of the
cases concerned with economic development, but since other considerations
would be involved, this responsibility would of necessity be partial. In
such cases of partial responsibility decisions would be made by the Executîve
Board which before reaching a decision would be required to obtain the views
of the Committee for Economic Development on such aspects of the question as
fall within the competence of the Committee.
5. The Working Party agreed to put forward for consideration the proposaI
in paragraph 2 of Annex B relating to the composition of the Committee for
Economic Development and Reconstruction. It was recognized that there was
a variety oS possible views both as. to
(a) the number of members of the Executive Board who would also be
members of the Committee; and
(b) the method of selecting the members of the Committee so as to
ensure adequate representation and balance.
The delegate of Pakistan, for example, submitted a proposal by which
the members of the Committee would be elected by the Conference: six from
the Executive Board and twelve from members who were not members of the
Executive Board.
Another possibility is that the composition of the Committee as selected
by the Board should be subject to confirmation or review by the Conference;
As it seemed probable that the Sub-Committees concernod would be called
upon to consider other variations of this paragraph put forward by delegations
not represented on the Working Party it vas decided to put forward the
proposal as embodied in the text of Annex B but to draw the attention of the
Sub-Committees to possible variations to which the Working Party had given
consideration.
6. The Working Party also examined a set of proposes submitted by the
delegation of Belgium relating to the functions of the Committee for Economic
Development but concluded that as they were based upon a conception of the
relationship between the Committee for Economic Development and Roconstruction
/and the -3-
and the Executive Board essentially different from the compromise conception
upon which the Working Party' s draft text had been based that it would be
more appropriate for this issue to -be raised by the delegate of Belgium when
the question of this relationship is being examined by the Sub-Committees.
7. The Working Party thought it necessary to draw attention ta the fact that
paragraph 1 of Article 81 as set out in Annex C made it clear that the
functions of the Interim Tariff Comittee did not extend to Article 13.
8. Since the provisions of the present paragraph 4 'of Article 17 would not
be applicable ta negotiations subsequent ta the first set of negotiations
and it would therefore be necessary for any complaint arising under this
Article to be dealt with in accordance with Chapter VIII, the Working Party
has thought it advisable to suggest the division of paragraph 4 of Article 17
as sot out in E/CONF.2/C.3/A/W.37 into to separate paragraphs in order to
make clear the fact that, in considering complaints in relation to the
obligation of paragraph 1 of Article 17 in accordance with the provisions of
Chapter VIII, as well as with the provisions of paragraph 5 of Article 17,
the Organization shall have to take into account all the relevant circumatances,
including developmental and othter needs, the fiscal structures of the Members
concerned and the provisions of the Charter as a whole.
9. Concerning paragraph 5 of Article 31 the Tripartite Working Party
considered three situations in which an appeal might be required from a
decision of the Tariff Comittee authoring, a withdrawal of concessions from
a Member:
(a) where the Member alleges that it has been unreasonably prevented
from becoming a contracting party to G.A.T.T.;
(b) where a Member, having become a contracting party to the G.A.A.T.
but not having concluded negotiations with all the other contracting
parties, alleges that it is being required to make unreasonable
conceseions in negotiations with such other contracting parties_.
(c) Where a Member which -as concluded the first set of negotiations
contemplated in paragraph 1 of Article 17 has been called upon to
carry out subsequent negotiations and alleges that it is being required
ta make unreasonable concessions.
'As a result. of this examination the Working Party agreed that the present
text of Article 17 which reads "...the Organization may waive the requirements
of Article 16 to the extent necessary to pormit the complaining Member or
Members to vithhold .... benefits" does not permit the Committee to authorize
a Member which is also a contracting party to withhold from another contracting
/party -4-
party benefits embodied in the G.A.T.T. since this would involve not merely a
vaiver of Article 16 but also of Article II of the G.A.T.T. As the texts of
Article 17 and Article Il of the G.A.T.T. at present stand, therefore, the
second and third cases cannot arise.
10. However, the Cubar. delegation has proposed an amendment to Article 17
which consists in inserting the words "and/or the provision of the general
agreement of tariffs and trade" in the thirteenth line of paragraph 4 of
Article 17 as contained in C.3/A/W.37. This amendment would enable the
Organization to waive also the requirements of Article II of the G.A.T.T.
Judged solely in the light of the issues before the Working Party and
without prejudice to the work of other Sub-Committees and working parties on
this matter, it was the view of the Working Party that it was desirable that
it should be possible to authorize contracting parties to vithhold bonefits
embodied in the G.A.T.T. from another cont acting party with whom they had
not completed negotiations if it were judged that contrtoting party had filled
to fulfil its obliations under paragraph 1 of Article 17. It was considered
that technically this could. best bo achieved by an amendment to Article II of
the G.A.T.T.
It is therefore advisable that the contracting parties to the G.A.T.T.
should meet sufficiently early before the end of this Conference in order to
deal with the Cuban proposal.
Without prejudice to the ultimate disposition of the Cuban amendment it
was agreed however, that it was undesirable that it should be possible to
authorize a contracting party to withhold from another contracting party a
benefit which was directly negotiated. Accordingly, it was agree:
(1) that in a dispute between two contracting parties both of
whom would also be members of the Interim Tariff Committee, there
was no reason to anticipate any uniformity of interest among the
remaining members of the Tariff Committee and that conesequently
there would be no need, on the groude of equity, for an appeal
front a decision of the invarim Tariff Committee in such a dispute;
(2) that the text. of' paragraph 5 of Article 17 makes it clear
that the Tariff Committee would. have no. jurisdiction in relation
with complaints arising out of second and subsequent rounds of
negotiations.
11. The Working, Party considered the amendment submitted by the delegation of
China consistin- of the deletion of the words 'subject to the provisions of
/Article 81" -5- Article 81" from paragraph 1 of Article 74. This amendmentt was suggested
because the Chinese delegation thought that the inclusion of those words might
preclude the Conference from dealing with appealed against the decisions of
the Interim Tariff Committee. As the Working Party proposes that the right to
appeal from the decisions of the Turiff Committee should be provided for in
paragraph 5 of Article 81 it was not considered necessary to deleto these
words.
The Working Party considered that the amendment submitted by the Chinese
delegation to Article 74 had been dealt with.
12. The Working Party suggets that in order to avoid duplication the Report
initially be considered. by the joint meeting of the three Sub-Committeee
concerned. -6-
ANNEX A
ARTICLE 70
"The. Organization shall bave a Conference, an Executive Board, an
Interim Tariff Committee, a Committee for Economic Development and.
Reconstruction, Commissions as established under Article 79, and such other
organs as mey be required. There shall also be a Director-General end. staff."
/ANNEX B -7-
ANNEX B
SECTION F*, ARTICLE 81A - THE COMMITTEE FOR ECONOMIC
DEVOMLOPMENT AND RECONSTRUCTION
1. The Committee for Economic Development and. Reconstruction shall be
initially responsible fcr the economic development and reconstruction
aspects of the functions of the Organization which have been assigned
or may be delegated to the Executive Board including:
(a) tho supervision in the field of, economic development
and reconstruction of the work of:
(i) any commission to deal with any aspect of economic
development or reconstruction established under
Article r9;
(il) the Director-General and staff;
(b) the co-ordination of the work of the Organization with other
inter-governmental oràganizatons in the field of economic development
and reconstruction.
2. (a) The Committe for Economic Development and Reconstruction shall
consist of sixteen Members selected by the executive Board, of whom
ton shall be selected. from the membership of the Board and six from
the Members who are net members of the Board. In selecting the members
of the Committee for Economic Development and Reconstruction, the
Executive Board shall try to ensure that for the Committee as a whole
Members at various stages of economic development and reconstruction
are adequately represented to achieve a reasonable balance between
them.
(b) Any non-member of the Committtee having a direct interest in any
issue before the Committee may, at the request of the non-member, be
coopted. as a member of the Committee for consideration of that issue.
3. Activities of the Committee for Economic Development and Reconstruction
shall be subject to the supervision of the Executive Board and all decisions
of the Committee for Economic Developmant and Reconstruction shall be
subject to:
* Insert a new section between Section E and Section F of Chapter VIII
of the Draft Charter with consequent chanes in lettering of sections.
/(a) appeal to the -8-
(a) appeal to the Board, and
(b) review by the Board on its own initiative where it considers
such a review justified.
Such appeal or review shall be initiated not later than thirty days from
the date on which the decision is conveyed to the Members.
4, (a) The selection of Members to serve, on the Committee for Economic
Development and Reconstruction shall be made at the first meeting of
the Executive Board following each election of the Board.
(b) The term of a Member of the Committee for Economic Development
shall be three years except that at the first constitution of the
Committee six Members shall be selected to serve for three years,
f ive for two years and five for one year.
/ANNEX C -9-
ANNEX C
SECTION E, ARTICLE 81 INTERIM TARIFF COMMITTEE
1, During the first year after the entry into force of this Charter and
for so long thereafter as contracting parties to the G.A.T.T. form less
than 4/5 of the Members of the Organization, there shall be an Interim
TarifI Committee which shall act on behalf of the Organization in [initiating
the] establishing the procedural arrangements for negotiations provided for
under paragraph 1 of Article 17 and in the making of recommendations and
determinations pursuant to paragraphs 4 and 5 of Article 17.
2. The Interim Tariff Committee shall consist of those [contracting parties
to the G.A.T.T. referred to in paragraph 1 (d) of Article 17 which are Members
of the Organization] Members of the Organizations which are contracting
parties to the G.A.T.T.
3. Any Member which is the subject of a complaint before the Interim
Tariff Committee shall bo entitled to participate in the deliberations and
shall have the right te vote on decisions of that Committee in relation to
the complaint.
4. The Interim Tariff Committee, before making any recommendation or
decision pursuant to paragraph 5 of Article 17, shall confer with the
Committee on Economic Development and Reconstruction on any aspect of the
natter with which the Committee on Economic Development and Reconstruction
is directly concerned.
5. If the Interim Tariff Committee pursuant to paragraph 5 of Article 17
authorizes a Member to withhold benefits from another Member and that Member
alleges that it has unreasonably bean prevented. from becoming a contracting
party to the G.A.T.T. the affected member may in the first instance appeal
to the Executive Board against such an authorization of the Interim Tariff
Committee and the Board may by a majority of two-thirds of the vote cast
reverse a decision of the Interim. Tariff Committee, Either the affected Member
or the complaining Member may appeal to the Conference against a decision of
tha Executive Board and the Confgrence may (by a majority of two-thirds of the
votes cast) reverse a decision cf the Executive Board.
6. If after the Interim Tariff Committee has ceased to exist, the Conference
or the Executive Board establishes a Committee to which the functions of the
the Interim Tariff Committee are delegated or assigned, that Committee shall
/be subject -10-
be subject to the supervision and review of the Executive Board.
7. Bach member of the Interim Teriff Committee shall have one vote, All
decisions of the Interim Tariff Committee shall be made by a majority of
the votes cast.
8. The Committee shall adopt its owni rules of procedure, including
provision for the election of its officers. -11-
ANNEX D
REDRAFT OF PARAGRAPH 4 OF ARTICLE 17
AS CONTAINED IN E/CONF.2/C.3/A/W.37, Page 3*
4. If any Member considers that any other Member has failed to fulfil its
obligations under paragraph 1 Of' this Article, such Member may refer the
matter to the Organization, which, after investigation, shall me appropriate
recommendations to the Members concerned. ;If the Organization finds that]
In any judgment as to whether a Member has failed [without sufficient
justification] to fulfil his obligations under this Article whether the
complaint which requires this judgment to be made has been submitted under
the conplaint procedure of this Article or under that of Chapter VIII, the
Organization [having] shall have regard to aIl relevant circumstances,
including the developmental and other needs and the general fiscal structures
of the Member countries concerned and to the provisions of the Charter as
a whole.
5. If the Organization finds that a Member has failed to carry out
negotiations within a reasonable period of time in accordance with the
provisions of paragraphs 1 and 2 of this Article, the Organization may waive
the requirements of Article 16 to the extent necessary to permit the
complaining Member or Members to withhold from the trade of the other Member
any of the tariff benefits which may have been negotiated pursuant to
paragraph 1 of this Article, and embodied in Part I of the General Agreement
on Tariffs and Trade. If such benefits are in fact withheld, so as to result
in the application to the trade of the other Member of tariffs higher than
would otherwise have been applicable, such other Member shall then be free,
within sixty days after such action becomes effective, to give written notice
of withdrawal from the Organization. The withdrawal shall take affect upon
the expiration of sixty days from the day on which such notice is received
by the Organization.
Underlinings indicate additions, square brackets deletion from the
text of Article 17, paragraph 4, as contained in E/CONF.2./C.3/A/W.37 page 3. 23 February 1948
WORKING PARTY OF JOINT SUB-COMMITTEE ON
TARIFF PREFERENCES
Article15
Working Paper for 23 February
Text of Paragraphs 1, 2 end 3 provisionally agreed by Working Party
1. The Members recognize that special circumstances may justIfy now
preferential arrangements between two or more countries ln the interest of
to programmes of economic development or reconstruction of one or more such
countries. [Consequently, the Members undertake not to exercise their rights
deriving from trade agreements in such a manner as to prevent proferential
agreements from boing concluded, provided. that they are concluded in
accordanco with paragraphs 3 or 4 (d).]
2. Any Member or Member [which have concluded such an agreement or are]
contemplating the conclusion of such an agreement shall communicate their
intention to the Organization and provide it with tho relevant information to
enable it to consider the [contemplated] agreement. The Organization shall
promptly communicate such information to all [lnterested] Members.
3. The Organization shall consider whether the agreement fulfils the
following conditions and requirements:
(a) The territory of each party to the agreement shall be
contiguous with that of one of the othor parties, or at least
all parties shall belong to the same economic region, for the
region shall have been generallyy recognized in international
treaties, to which Members are parties, as one within which
proferences might be extended];
(b) [The purpose of/ Any proforential customs duty provided for in
the agreement is necessary for] the accomplishment of a Member's
general programme of economic development or reconstruction by cnsuring
a sound anc' adequate market for a branch of industry or agriculture to
be newly created, [devoloped], [substantially modernized] or
.. reconstructed;
(c) The parties to the agremment undertake to grant free entry for
the product or products of the branch of industry or agriculture
referred to in sub-paragraph (b) or to apply to such products customs
5L81 /duties sufficiently -2-
duties sufficiently low to ensure that the objects provided for in
sub-paragaph (b) shall be achieved;
(d) Any compensation grantod to the other parties by the party
receiving preferential treatment shall, if it is a preferential
concession, conform with the provisions of this paragraph, [Provided
that if such compensation is not practicable when the agreement is
arrived at, preferential tariff advantages may be [temporarily]
conceded on products not conforming to the requirements of
sub-paragraph (b) to the extent necessary to afford due compensation]
/provided that such advantages shall be progressively eliminated and
replaced as soon as possible by compensation granted within the
framework of sub-paragraph (b)]:
(e) The Member granting the preference undertakes not to raise,
either on the occasion of or following the conclusion of the
preferential agreement, tho import duties applied in respect of
States enjoying most-favoured-nation treatment, on the products of
whichh the preforence is granted, except under the following
conditions:
[(i) in the case of duties proviously bound through negotiations
pursuant to Chapter IV, the Member concorned may raise the
duty on the product concerned, provided that such Member is
releascd from its obligations in accordance with the procedure
Of paragraph 2 of Article 13].
[(i) In the case of duties previously bound as a result of
negotiations pursuant to Chapter 4, the interested Member may
raise the duty on the products in question, provided that it.
negotiates fair compensation with the parties to whom the the'
binding was granted, .in conformity with the procedure provïded
for in Article 13, paragraph 2, insofar as this is applicable.
If the negotiations do not lead to substantial agreement
within two months, the Organization shall fix fair and
sufficient compensation .]
(ii) Duties which have not been bound under commercial agreements
in force, may be raised to [an adequate protective level].
Any Member enjoying most-favoured-nation treatment may make
/representations -3-
representations to the Organization if it considers that
such duty is organization for the attainment of the purpose
indicated, The Organization, on the basis of all the
relevant information, shall determine whether the
representation is Justified, and in such case shall ask the
Member raisins the duties to make such modifications as the
Organization deems necessary to give satisfaction to tho
Member making tho representation. The duties shall remain
bound at tho level in force at tho time of the conclusion of
the agreement or at the level resulting from tho increase
provided for above or resulting from representations
[for a period of throes years. After three years the binding
will end automatically and Members parties to the arrangement
shall be free to readjust the duties, provided that after
such readjustment and subect to the provisions set forth in
the first part of this sub-paragraph such duties are bound
again for a further period of three years and go on until the
preferential arrangement is terminated.] [for the duration of
the preferential arrangement provided that any time during
such period Members parties to the arrangement may apply to
the Organization in conformity with the procedure set forth
in Arcicle 13 for non-negotiated commitments in view to
readjust taht duay.]
Novertheless, the parties to tho agreement shall have the
right, during the period for which the proferéntial agreement
is in force, to raise customs duties
provided that such increase does not increase the incidence
of the preference.
Amendment to Sub-Parapraph (c) (II) proposed by the United States
Duties which have not been bound under commercial agreements in force,
may be raised at the time of the entry into, force of tho agreement, Provided
that information concerning the proposed increase is included in the
notification referred to in pararaph 2 and provided that, if any Member
enjoying most-favoured-nation treatment should make representation to the
Organization,that it considers that such duty is excessive, the Organization,
on the basis of all the relevant information, shall boforo the agreement
/comes into force comes into force determine whether the representation is justified, and
shall indicate what modification, If any, it will require before authorizing
the agreement
Sub-Paragraphs 3 (f) and (n) - (as contained.in document 4892)
3. (f) thc agreement contains provisions permitting the adherence of
other Members, which are able to qualify as parties to the agreement
under the provisions of this paragraph, in the interest of their
programmes of economic development or reconstruction, on
[reasonable] terms to be agreed between such Members and the parties
to the agreement.
(g) The agreement contains [reasonable] provisions for tormination,
review or renewal.
Paragraph 4
I. Draft by Chile and Venezuela. (Document 4473).
4. If the Organization finds that the agreement, while fulfilling the
conditions set forth in paragraph 3, is likely to injure substantially
Members not parties to it, the Members which have concluded the agreement
may enter into negotiations with the affected Members with a view to reaching
substantial agreement within a reasonable time. If they do not succeed in
reaching agreement, the Organization shall examine if the injury that
threatens the complaining Memberis such as to substantially Jcopardize its
economic position in world trade; in which case the parties to the
preferential agreement shall modify it so as to satisfy the complaining
Member.
II Chairman's draft, revised. (Document 4471).
4. L5a) If the Organization finds that the contemplated agreement fulfils
the conditions set forth in paragraph 3 and that the conclusion of the
agreement is not likely to injure substantially the interests of Membors
not parties to the agreement, it shall authorize the parties to the
agreement te dopart to the necessary extent from the provisions of
Article 16 as regards the products covered by the agreement
(b) if the Organization finds that the contemplated agreement while
fulfilling the conditions set forth in paragraph 3, is likely to cause
[substantial] [considerable] injury to the [external trade] of a Member
not party to the agreement, the Members contemplating the conclusion of
/such agreement such agreement may enter into negotiations with that Member with a view
to reaching substantial agreement. [If and when an agreement is arrived
at, the Organization shall authorize the parties to the agreement to
depart to tho necessary extent from the provisions of Article 16 as
regards the products covered by the agreement.] If, within two months,
the negotiations fail through no fault of the parties to the agreement,
the Organization [may nevertheless permit the necessary departure from.
the provisions of Article 16] provided that the parties to the agreement
grant to the injured party fair compensation or so modify tho agreement
as to give such party fair compensation Etrcatmoni7.
(c) If' the Organization finds that the draft agreement is likely to
Jeopardize seriously the economic position of a Member in world trade,
it shall not agree to the necessary exceptions to the provision off
Article 16 unless tho parties to the agreement have roached a mutually
satisfactory understanding with that Member.
(d) If the Organization finds that the parties to the agreement have,
before 21 November 1947, obtained from countries representing at least rcprosonting at lc;ast
two-thireds of thoir iomport trad. the right t depart from m.f.n.
treatmgnt in tho cgsee envisaCed in the aGrccment, the Organîzation
shall, without preJudice te the condecognition,rning such rccoçition,
grant the authoiization provided for In sub-paragraph (a), providod
that the conditions set out inesub-paragraphs (a), (O), (f) and (g) of
ledagrape 3 are flulilled. Nevortholoss, if the Organization finds
that one or more Members, which have not recognized this right to depart;
froe m.f.n. treatment, aro threatened with subsllntial injury, it sha.l
inviagreementrtics to the egotiations withinto nogetiations i-it
tho injured Meeber. and the proceduro of eub-palagraph (b) abovc shal
apply,
III. Text of Pe agraeh 4 proposed bZ Chilc, Poland and Syria. (Document 5099
14. (a) If the Organization finds that the contemplated agreement fulfils
tho conditions set forth in pawithinh 3, it shall, i*rith a maximum
pauthorizetuo months, authorizo the parties to the agreement to depart
from the provisions o' Article 16 as regards the products covered by
the agreement. oesthc Organization deos not giee a ruling within tho
specified period, it ehall automatioally bc considered ta have concurred
/(b) If the -6-
(b) If the Organization finds that the agreement, while fulfilling
the conditions set forth in paragraph 3, is likely to cause
considerable injury to the external trado of a Member not party to
the agreement, the-Members concluding the agreement may enter into
negotiations with that Member with a view to reaching substantial
agreement. If and when an agreement is arrived at, the Organization
shall authorize the parties to the agreement to depart from the
provisions of Article 16 as regards the products covered by the
agreement. If, within two months, the negotiations fail, the
Organization shall nevertheless permit departure from the provisions of
Article 16 while fixing fair compensation for the injured Member.
The provisions of Chapter VIII of the Charter shall only apply
to compensation when one of the parties does not accept tho
Organizations decision regarding such compensation.
(c) If the Organization finds that the agreement, while fulfilling
. the conditions set forth in paragraph 3, is likely to Jeopardizo
seriously the economic position of a Member in world trade, it shall
not agree to the necessary exceptions to the provisions of Article 16
unless the parties ta the agreement have reached a mutually satisfactory
understanding with that Membor;
(h) If the Organization finds that tha parties to the agreement have,
before 21 November 1947, obtained from countries representing at
last two-thirds of their import trade, the right to depart from
.most-favoured-nation treatment in the cases envisaged in the agreement,
the Organization shall grant the authorization provided for in
sub-paragraph (a) provided that the conditions set forth in
sub-paragraphs'(a), (e) and (g) of paragraph 3 are fulfilled.
Novertheless, if the Organization finds that the external trade of one
or more Members, which have not recognized this right to depart from
most-favoured-nation treatment, is threatened with substantial injury,
it shall invite the parties to the agreement to enter Into negotiations
with the injured Members and the procedure of sub-paragraph (b) above
shall apply.
I. Paragraph 5. (Document 4471).
5. Members may, subject to such conditions as the Organization may impose,
enter into preforential agreements which do not conform to the provisions of
/paragraph (3), paragraph (3), provided that such agreements have received the approval of
the Organization by a two-thirds majority of the Members present and votin-.
[In its examination of any proposal falling under the provisions of this
paragraph, the Organization shal give due consideration to the extent to
which an exception from the mst-favourod-nation clause, such as .ould permit
the establishment of the proposed precerential arrangement, may already have
received general recognition in treatics to, which the Members of the
Organization are particsJ
I::. Text of Paragraph 5 proposed by Chile, Poland and Syria.
5. Members may, subject to such conditions as the Organization may impose,
center into preferential agreements which, while in conformity with the
objectives stated in paragraph 1 and with the provisions of sub-paragraph (a)
of paragraph 3, do net conform to the other conditions stated in
paragraph 3, provided that such agreements have received /the approval of
the majority of the Members present and voting the approval of the
Organization by a two-thirds majority of the Members present and voting]. 24 February 1948
CO-ORDINATING COMMITTEE
DRAFT OF ARTICLE 13 SUBMITTED BY MR. WILCOX AT THE
REQUEST OF THE CHAIRMAN
Article 13
Governmental Assistance to
Economic Development
1. The Members recognize that special governmental assistance may be
required to promote the establishment, development or reconstruction of
particular industries, [or particular branches of agriculture] and that in
appropriats circumstances the grant of such assistance in the form of
protective measures is justified. At the same time they recognize that an
unwise use of such measures would impose undue burdens on their own
economics, unwarranted restrictions on international trade and might increase
unnccossarily the difficulties of adjustment for the economies of other
countries.
2. (a) If a Member in the interest of its [programme of] economic
development or reconstruction considers it desirable to adopt any
non-discriminatory measure affecting imports which would conflict
with any obligation which the Member has assumed through negotiations
with any other Member or Members pursuant to Chapter IV, but which
would not conflict -ith the provisions of that Chapter, such Member
(i) shall enter into direct negotiations with all the other
Members which have contractual rights with a view to
obtaining agreement. The Members shall be free to proceed
in accordance with the terms of any such agreement, provided
that the Organization is informed of the results of the
negotiations; or
(ii) shall initially or may in the event of failure to reach
agrrement under sub-paragraph (i) above apply to the
Organization. The Organization shall determine, from among
Members which have contractual rights, the Member or Members
materially affected by the proposed measuro and shall
sponsor negotiations between the applicant Member and these
Members with a view to obtaining expeditious and substantial
agreement.
/The Organization
5200 The Organization shall establish and communicate to the
Members concerned a time achedule for such nogotiations,
following as far as practicable any time schedule which may
have been proposed by the applicant Member. The Membors shall
commence and proceod continuously with such negotiations in
accordance with the time schedule laid down by the Organization
At the request of a Member the Organization may, where it
concurs in principle with the proposed measure, assist in
the negotiations. Upon substantial agreement being
reached, the applicant Member may be relcased by the
Organization from the obligation referred to in this paragraph.
subject to such limitations as may have been agreed upon in
the negotiations between the Members concerned.
(b) If as a resuit of action initiated under this paragraph, there .
should bo an increase In the importations of the product or products
concerned, including products which can be d-iroctly substituted therefor
which if continued would be so great as to jeopardize substantially the
plans of the applicant Member for the establishment, development or
reconstruction of the industry, industries or branches of agriculture]
concerned, and If no preventive measures consistent with this Charter
can be found which seem likely to provo effective, the applicant Member
may, after informing, and when practicable consulting with tho
Organization, adopt such other measures as the situation may require;
Provided that such measures do not restrict imports more than necessary
to offset the increase in imports referred to in this sub-paragraph.
Except in unusual circumstances, such measures shall noto shall mot reduce imports
below the levl obtainmoing eien the st rcnt representative period
precoding thhe datee on wich th Member initiated action undor
sub-paragraph (a) of this paragraph. Thi OrganizatIon shall determine,
as soon as prwcticeble, vhethor such measures should bc continued,
discontinuee or modifiod. Such melsures shal- ineany case bo terminated
asesoon as tho Organization determines that the re-negotiations are
completed or discontInued. It is recognized that the contractual
relationships referred to in sub-paragraph (a) ogf this pararaph
involve reciprocal advantages, ond therefeore any othr Member which has
a conghtractual rit in respect of the product to which such action
relates, ande whose trad is materially affected by the action, May
/suspend the suspend the application to tho trade of such Member of such
substantially equivalont obligations or concessions under Chaptor IV,
the suspension of which the Organization does not disapprovo. Any
Member intending to suspend such application shall consult the
Organization before doing so.
3. In the case of any non-discriminatory measure affecting imports which
would conflict not only with any obligation which the Member has assumed
through nogotiations with any other Member or Membors pursuant to
Chapter IV, but also with the provisions of that Chapter, the provisions
Of paragraph 2 (a) (ii) shall apply; Provided that before grating a relcaso
the Organization shall afford adequate opportunity for all Members which
it determines to be materially affected to express their views. The
provisions of paragraphs 2 (b) shall also be applicable ln this case.
4. (a) If a Member in the interest of its [programme of] economic
development or reconstruction considers it desirable to adopt any
non-disccriminatory measure affecting imports which would conflict
with any provision of Chapter IV, but would not conflict with any
obligation which the Member has assumed through negotiations with
any other Member or Members pursuant to Chapter IV, such applicant
Member shall so notify the Organization and shall transmit to the
Organization a written statement of the considerations in support of
the adoption, for a specified period, of the proposed measure.
(b) The Organization shall concur in the proposed measure and grant
release from such provision for a specified period If, having
particular regard to the applicant Member 's [relative] need for
economic development or reconstruction, it is established that the
measure [:relates to a branch of industry or agriculture/ which is
an integral part of the applicant Memberts programme of economic
development or reconstruction and that the moasure-7
ti) is designed to protect a branch of industry, established
between i January 1940 and the date of signature of the
Final Act of the present Charter, which was protected
during the first period of its development by abnormal
conditions arising out of the war; or
(Il) is dosiped to promote the establishment or development
of a branch of industry for the processing of an indigenous
/primary commodity, -4-
primary commodity, when the external sales of such comodity
have been materially reduced as a result of ner or increased
restrictions imposed by some other government or governments;
or
(iii) is necessary to promotc the establishment or development of
a branch of industry for the processing of en indigenous
primary commodity], or for the processing of a by-product
of such a branch of industry which would otherwise bo wasted,]
in order to achieve a fuller and more economic utilization
of the applicant Momber's natural resources and manpower and,
in the long run, to raise the standard of living within the
territory of' the applicant Member and is unlikely to have a
harmful effect [on experts of a [primary] commodity on
which tho economy of another Member is largely dependent or],
in the long run, on international trade; or
(iv) is unlikely to be more restrictive of international trade
than any other practicable and reasonable measure permitted
undor this Charter which could be imposed without undue
difficulty and is tho one most suitable for tho purpose having
regard to the economics of the branch of industry or
agricultur-] concened and to the applicant Memborts
[relative] need for economic development or reconstruction.
Alternative A
/Provided that, if it is cetablished that the measure causes
material injury to tho trade of another Member or Members,
the Organization may authorizo the affected Member or Membor
to suspend the application to the trade of the Membor applying.
the measure of such substantially equivalent obligations or
concessions under Chapter IV, the suspension of which tho
Organization docs not disapprovo. Any Member intending to
suspend such application shall consult the Organization
before doing so; and]
or
Alternative B
[Provided that the applicant Member shall apply any measure
under this sub-paragraph in such a way as to avoid
unnecessary damage to the commercial or economic interests
/of any other 153 of any other Member: including interests under Articles 3 and
9; and] Provided further that any proposal by the applicant
Member to apply any such measure, with or without modification
after the end of the initial period, shall not be subject to
the provisions of this sub-paragraph.
(c) If the proposed measure does not fall within the provisions of
eub-paragraph (b), the Organization shall promptly transmit the statement
submitted by the applicant Member to the Mombor or Mombors -which are
determined by tho Organization . to be materially affected by the proposed
measure. Such Member or Mombers shall, within the time limits
prescribed by the Organization, inform the Organization whether, in
the light of the anticipated effects of the proposed measure on the
economy of such Member or Membors, there is any objection to the
proposed measure. If there should be no objection on the part of the
affected Member or Members to the proposed measure, the Organization
shall immediately free the applicant Member to apply it.
(d) If there be any objection, the Organization shall promptly examine
the proposed measure, having regard to the provisions of the Charter,
to the considerations presented. by the applicant Member and its
[relative] need for economic development or reconstruction, to the
views of the Member or Members determined to be materially afffected,
and to the effect which the proposed measure, with or without
modifications, is likely to have, immediately and in the long rune on
international trade, and, in the long run, on the standard of living
within the territory of the applicant Member If, as a result of such
-examination, the Oranization concurs in the proposed measure, with
or without modification, it may release the applicant Member from its
obligations under the relevant provision of Chapter IV, subject to such
limitations as it may impose.
5. If, in anticipation of the concurrence of the Organization in
the adoption of a measure reforred to in paragaph 4 of this Article,
there should bo an increase or threatoned increase in the importations
of the product or products concerned, including products which can be
directly substituted therefor, so substantial as to Joopardize the plans
of tho applicant Member for the establishment, devolopment or
reconstruction of the industry, industries [or branches of
agriculture] concerned, and if no proventive measures consistent with this
/Charter can be -6- Charter can be found which seem likoly to prove effcetive, the applicant
Member may, after informing, and when practicable consulting with, the
Organization, adopt such other measures as the situation may require pending
a decision by the Organization on tho Member's application; Provided that
such measures do not reduce imports bolow the level obtaining in the most
rocont representative period precoding the date on which the Member's
original notification was made.
6. Tho Organization and the Members concerned shall preserve the utmost
confidence in respect of matters arising under this Article.
7. In the case of measures referred to in paragraph 4 of this Article,
tho Organization shall, at the carliest opportunity but ordinarily 'ithin
fifteen days aftor receipt of the statement referred to in paragraph 4 (a)
of this Article advise the applicant Member of the date by which it will be
notified whether or not it is relecased from such obligation or obligations
as may be relevant. This date shall be not more than ninety days
subsequent to the receipt of such statement; Providcd that, if before tho
date set, unforeseen difficulties arise, the period may be extended. after
consultation and agreement with the applicant Member. If the applicant
Member does not receive such decision by the date sot, it may after informing
the Organization, institute tho proposed measure. 23 February 1948
CO-ORDINATING COMMITTEE
POSSIBLE ALTERNATIVE PROPOSALS WITH RESPECT TO THE
PROPOSED INTERIM TARIFFCOMMITTEE AND THE PROPOSED
ECONOMIC DEVELOPMENT COMMITTEE AND A POSSIBLE
COMMERCIAL POLICY COMMITTEE
SUGGESTION BY THE DELEGATION OF
THE UNITED STATES OF AMERICA
The work which has been going forward. in the Tripartite Working Party
of Sub-Committees A of III and D of VI and Joint Sub-Committee of II and -VI,
bas thus far resuited in the preparation of a draft report and annexes which,
though nearly completed for submission to the appropriate Sub-Committees,
is in various features unsatisfactory, for differing reasons, to some or
most of the members of the Working Party. Also, the Delegation of the
United States of America has given further consideration to the problems
before the Working Party and believes that the questions raised-would be
advanced more rapidly toward a solution in the Conference as a whole if the
problems were to be laid before the Co-ordinating Committee with a view to
obtaining such a measure of areement as might be useful in guiding the
further labours on these questions. To this end, the United States Delegation
wishes to propose three alternative solutions to the problems before the
Working Party, as set forth below:
Alternative 1
(a) The proposed Interim Tariff Committee would be created
(composed of contracting parties to the GATT) with provision
for a right of appeal to the Confference subjectt to approval
of two-thirds of the votes cast in the Conference) on those
cases in which a ember bas been authorized to withhold tariff
benefits from another Member and that Member alleges that it
bas unreasonably been prevented frame becoming a contracting
party to the GATT.
(b) There would be created an Economic Developient and
Reconstruction Committee, consisting of sixteen Members
selected by the Executive Board, of whom ten would be
selected from the Membership of the Board and six from the
5203 /members who are -2-
members who are not Members of the Board; -and in selecting the
members of this Committee, the Executive Board should try to
ensure that for the Committee as a whole, members at various
stages of economic development and reconstruction would be
adequately represented to achieve a reasonable balance between
them. The Committee would be subject to the supervision of the
Executive Board and the powers of the Committee would be
rec ammendatory.
(c) There would be created a Committee on Commercial Policy
which, with respect -to its autiIority, would follow the lines
suggested for the Committee on Development and Reconstruction,
and the functions of which would be that of being generally
responsible, (except for questions regarding releases from
MFN obligations), for making recommendatins to the Executive
Board on the commercial policyaspects of' functions of the
ITO assigned or delegated to the Board.
Alternative 2
(a) The proposal for a Tariff Committee would be withdrawn.
(b) The proposal for a Committee on Economic Development
and Reconstruction would be withdrawn.
(c) No proposal would be made for the creation of a Committee
on Commercial Policy.
(d) The proposed paragraph 4 of Article 17 (penalty clause)
would be withdrawn.
(o) There would be added. at an appropriate place in Article 16
a provision which would in effect cease to require the extension
of the concessions provided for in the GATT to any Member which
had failed to become a party to the Agreement within two years
after the entry into force for that Member of the Charter. This
Would be subject ta a proviso that the Organization (that is to
say the Conference acting by majority vote) could require the
extension of such concessions to any Member which either had not
been invited. to become a party to the GATT or had been unreasonably
prevented, from becoming a party.
/Alternative 3 -3-
Alternative 3
(a) The proposal for an Interim Taxiff Committee would be
withdrawn.
(b) The proposal for a Committee on Economic Development
and Reconstruction would be withdrawn.
(c) No proposal would be made for thè creation of a
Committee on Commercial Policy.
(d) The Conference would delegate to the Board its powers
under the proposed Paragraph 4 of Article 17, with the right
of appeal to the Conference against a decision of the Board,
subject to approval by a two-thirds majority of the votes
cast by the Conference. With respect to other questions, the
powers of decision would rest in the Conference which could,
however, delegate such powers to the Board.
The adoption of any of the alternatives suggested above would, of
course, require certain consequential changes in related Sections of the
Draft Charter. 24 February 1948
COORDINATING COMMITTEE
DRAFT OF ARTICLE 15 SUBMITTED BY THE DELEGATION OF THE
UNITED STATES TO THE COORDINATING COMMITTEE
AT ITS MEETING OF FEBRUARY 24
1. The Members recognize that special circumstances may justify new
preferential agreements between two or more countries in the interest of
the programmes of economic development or reconstruction of one or more
of them.
2. Any Member or Members contemplating the conclusion of such an agreement
shall communicate their intention to the organization and provide it with
the relevant information to enable it to consider the contemplated agreement.
The Organization shall promptly communicate such information to all Members.
3. The Organization shall consider whether the agreement fulfils the
following conditions and requirements:
(a) The territory of each party to the agreement shall be contiguous
with that of one of the other parties, or all parties shall belong to
the same economic region;
(b) Any preferential customs duty provided for in the agreement is
necessary for the accomplishment of a Member's general programme of
economic development or reconstruction by ensuring a sound and adequate
market for a branch of industry or agriculture to be newly created or
reconstructed or substantially developed or modernized.
(c) The parties to the agreement undertake to grant free entry for
the product or products of the branch of industry or agriculture
referred to in sub-paragraph (b) or to apply to such products custom
duties sufficiently low to ensure that the objectives provided for in
sub-paragraph (b) shall be achieved;
(d) Any compensation granted to the other parties by the party
receiving preferential treatment shall, if it is a preferential
concession, conform with the provisions of this paragraph;
(e) The Member granting the preference shall not increase the most-
favoured-nation rate of duty on any product on which a preference is
granted except under the following conditions:
(i) In the case of a duty already bound as a result of negotiations
under Article 17, the Member concerned may raise the duty on
the product concerned, provided. that the Members in whose
favour the duty has been bound receive due compensation in
5215 /accordance -2-
accordance with the procedures of Arùicle 13.
(il) Any increase in a rate of duty not previously bound and made
either in anticipation of the agreement or to be made at the
time of the agreement shall be specified in the notification
to the Organization provided for ln paragraph 2.
(iii) If any Member complains to the Organization that such an
increase represents and excessive restriction on international
trade as compared with the benefits to be derived in
furthering the purposes of the proposed agreement, the
Organization, if it determines that the complaint is justified,
may require that the proposed increase be modified, as a
condition to granting its authorization for the agreement.
(iv) The most-favoured-nation rate of duty established at the time
of the agreement on any such product may, if not bound under
any existing agreement, be subsequently increased, provided
that the margin of preference le not thereby increased.
(v) The preferential rate of duty established at the time of the
agreement on any such product may be subsequently reduced
provided that the margin of preference is not thereby increased.
(f) Tne agreement contains provisions permitting the adherence of other
Members which are able to qualify as parties to the agreement under the
provisions of this paragraph in the interest of their programmes of
economic development or reconstruction on terms and conditions to be
determined. by negotiation with tLe parties to the agreement. The
provisions oi Chapter VIII'may be invoked by such a Member, under this
sub-paragraph, only on the ground that it has been unjustiffiably excluded
from participation in such an agreement.
(g) The agreement contains provisions for its termination, within a
period of not more than ten years, subject to renewal for periods net
greater than five years each.
4. (a) If the Organization finds that the contemplated agreement fulfills
the conditions set forth in paragraph 3 and that the conclusion 'of the
agreement is not likely to insure substantially the interests of Members
not parties to the agreement, it shall within two months authorize the
parties to the agreement to depart to the necessary extent from the
provisions of Article 16 as regards the products covered by the
agreement. If the Organization does not give a ruling within the
specified period, the Members may proceed as if such authorization had
been received. / (b) If the -3-
(b) If the organization finds that the agreement, while fulfilling the
conditions set forth on paragraph 3, is likely to cause substantial
injury to the external trade of a Member not party to the agreement, the
members contemplating the agreement may enter into negotiations with that
Member with a view to reaching agreement. If and when an agreement is
reached.. the Organization shall authorize the Members contemplating the
preferential agreement to depart to the extent necessary from the
provisions of Article 16 as regards the products covered by the
preferential agreement. If, within two months from the date on which
the Organization suggested such negotiations the negotiations, through
no fault of the parties to the proposed agreement, have failed, the
Organization shall nevertheless permit the necessary departure from the
provisions of Article 16 provided that those parties grant the injured
Member fair compensation or se modify the agreement as to give such
Member fair treatment. The provisions of Chapter VIII of this Charter
shall apply to compensation under this sub-paragraph only when one of
the parties to the negotiation does not accept the Organizationgs decision
regarding such compensation.
(c) If the Organization finds that the agreement while fulfilling the
conditions set forth in paragraph 3 is likely to jeopardize seriously
the economic position of a Member in world trade, it shall not agree to
any departure from the provisions of Article 16 unless the parties to
the agreement have reached a mutually satisfactory understanding with
with that Member.
(d) If the Organization finds that the parties to the agreement have,
before 21 November 1947, obtained from countries representing at least
two-thirds of their import trade, the right to depart from m.f.n.
treatment in the cases envisaged in the agreement, the Organization shall,
without prejudice to the conditions governing such recognition, grant
the authorization provided for in sub-paragraph (a), provided that the
conditions set out in sub-paragraphs (a), (e), (f) and (g) of paragraph 3
are fulfilled. Nevertheless, if the Organization finds that one or more
Members, which have not recognized this right to depart from m.f.n.
treatment, are threatened with eubatantial injury, it shaIl invite the
parties to the agreement to enter into negotiations with the injured
Member, and the procedure of sub-paragraph (b) above shall apply.
5. Members may, subject to such conditions as the Organization may impose,
enter into preierential agreements which do not conform to the provisions of
paragraphs (3), provided that such agreements have received the approval of
the Organization by a two-thirds majority of the Members present and voting. 24 February 1948
S E C R E T
CO-ORDINTING COMMITTEE
There are circulated herewith the following documents:
(a) Summary Record of today's meeting of the Co-ordinating
Committee;
(b) Draft of Article 13 submitted by Mr. Wilcox at the request
of the Chairman;
(Miscellaneous document No. 5200 (English) No. 5209 (French)
No. 5201 (Spanish).)
(c) Possible Alternative Proposals with Respect to the
Proposed interim Tariff Committee and the Proposed Economic
Development Committee and a Possible Commercial Policy
Committee - Suggestion by the Delegation of the United States
of America;
(Miscellaneous document No. 5203 (English) No. 5210 (French)
No. 5204 (Spanish).)
(d) Draft of Article 15 submitted by the Delegation of the
United States to the Co-ordinating Committee at its Meeting
of 24 February.
(Miscellaneous document No. 5215 (English) No. 5216 (French)
No. 5217)(Spanish).)
These documents are of a highly confidential character and delegates
are, therefore, responsible for taking appropriate measures for their
security.
5242/SUMMARYummary 24 February 1948
S E C R E T
SUMMARY RECORD OF MEETING CO-ORDINATING COMMITTEE
Held on Tuesday, 24 February 1948
Mr. WILCOX (United States of America) introduced his draft of Article 13
(Miscellaneous document No. 5200 (English), No. 5209 (French), No. 5201
(Spanish) of 24 February). He stated that those parts of the text not
contained in square brackets represented the limit to which his delegation
could go. As regards those parts of the text within square brackets, his
delegation was ready to abide by the views of the majority of the Committee.
Mr. Wilcox then submitted a draft of Article 15 (Miscellaneous document
No. 5215 (English), No. 5216 (French), No. 5217 (Spanish) of 24 February).
Although he was ready to consider any question that might be raised regarding
the presentation and form of the draft, ho stressed the fact that the
delegation of the United States of America could go no further on substance
than it did in the proposed text.
Mr. Wilcox thon presented three possible alternative proposals with
respect to the proposed Interim Tariff Committee, the proposed Economic
Development Committee and a possible Commercial Policy Committee
(Miscellaneous document No. 5203 (English), No. 5210 (French), No. 5204
(Spanish) of 24 February). Mr. Wilcox stated that he was ready to discuss
an arrangement based on any one of the three alternatives contained in his
draft but that he could not consider any other possibilities.
Finally, Mr. Wilcox said that his delegation were making the proposals
contained in these three texts in a spirit of compromise and as a contribution
to bringing the Conference to a successful conclusion. They were, therefore,
intended to form part of an overall compromise on outstanding issues and in
particular were dependent upon the willingness on the part of other delegation:
to withdraw related reservations and amendments to other Articles of the
Charter, in particular, Articles 16, 17, 20 and 81. He also felt that the
so-called Cuban proposal on Article 75 on the composition of the Excecutive
Board. (E/CONF.2/C.6/W.51), which formed the basis of the report of the
relevant sub-committee, should be accepted. His delegation had no
particular interest in this compromise solution and recognized its
shortcomings, but some other delegations had a substantial interest in it,
and he thought it should, therefore, form part of the overall agreement which
it was now sought to reach.
As regards procedure, he considered that the Co-ordinating Committee
should endeavour to reach agreement on the whole field he had indicated and
then present the agreement for consideration and vote by the Heads of
/delegations
-2- -3-
delegations in order to avoid the time consuming process of discussion in
working parties, sub-committees and committees.
The discussion will be resumed at the next meeting of the Co-ordinating
Committee . AMENDMENT SUGGESTED ON BEHALF OF THE LATIN AMERICAN COUNTRIES
Submitted by Mr. Walter Muller
Article 13
Paragraph 1
The words now shown in square brackets are to be retained.
Paragraph 2 (a)
Delete: [programme of]
Paragraph 2 (b)
Retain: [or branches of agriculture]
Paragraph 4 (a)
Delete: [programme of]
Paragraph 4 (b)
Retain: [relative]
Delete: (or agriculture which is an integral part of the applicant
Members programme of economic development or reconstruction]; and retain:
"and that the measure".
Clarify the meaning of "relative".
Paragraph 4 (b) (i)
Replace by the following:
"is designed to protect a branch of industry established between
1 January 1940 and the date of signature of the Final Act of the present
Charter, or the production of which was not on a commercial scale before
1 January 1940, and which was protected during that period of its
development by abnormal conditions arising out of the war, or"
Paragraph 4 (b) (ii)
Delete: "as a result of new or increased restrictions imposed by some
other government or governments;"
Paragraph 4 (b) (iii)
Change the words "is necessary" to "is designed".
Retain: [or for the processing of a by-product of such a branch of
industry which would otherwise be wasted,].
Delete: [on exported of a [primary] commodity on which the economy of
anotherr Member is largely dependent or].
Add at the end: "on international trade in general".
/Paragraph 4 (b) (iv)
5306 -2-
Paragraph (b) (iv)
Retain: [or agriculture].
Retain: [relative].
Proviso for Paragraphs 4 (b) (i), (ii) (iii) and (iv)
"Provided that the Organization shall not concur in or grant release of
any measure which has the purpose of promoting the establishment or development
of any industry engaged in the manufacture of primary commodities which would
have a harmful effect on exports on which the economy of another Member is
largely dependent.''
Delete Alternatives A and B.
Paragraph 5
Retain: [or branches of agriculture].
Paragraph 7
Change the first phrase of the first sentences to: "In the case of
measures referrod to in this Article", instead of "In the case of measures
referred to in paragraph 4 of this Article".
Paragraph 8
Suggest the following draft to be accepted as an alternative procedure
for that contemplated under 4 (c) and 4 (d) and to be worded as follows:
"(c) If the proposed measure does not fall within the provisions of
sub-paragraph (b)
(1) The Member shall. enter into direct consultations with the
Member or Members which, in its Judgment, will be materially
affected by the measure, with a view to obtaining agreement.
Upon complete or substential agreement being reached, the
Member interested in taking the measure shall apply to the
Organization for release. The Organization shall promptly
examine the application to ascertain whether the interest
of all the materially affected Members were duly taken into
account. If the Organization reaches this conclusion, with
or without further consultations between the Members
concerned, it shall grant the applicant Member the release
requested; or
(ii) Shall initially or may in the event of failure to reach
complete or substantial agreement under sub-paragraph (i)
above apply to the Organization. The Organization shall
promptly, etc."
/If desired, -3-
If desire, alternative (1) can redrafted so as to provide for
communication to the Organization at the same time that the Member interested
in the measure entered in to direct consultations with the affected Members.
This might have the advantage of giving the Organization an early opportunity
to verify if all the Members materially affected are being considered.
The Latin American Republics insist that on objective criterias in
Article 13 prior approval of the Organization should not be necessary. 26 February 1948
CO-ORDINATING COMMITTEE
PROPOSAL SUBMITTED BY DR. LIERAS RESTREPO
Dr. LIERAS RESTREPO (Colombia) Proposes the addition of the following
new point after point (iii) of sub-paragraph 4 (b) of Article 13 as
proposed by Mr. Wilcox:
(iv) is designed to the protection of a branch of agriculture
producing raw material for a manufacturing industry
already established in the country, provided that the
product concerned has been traditionally produced in the
country and that the measure is intended to increase
directly the income of important groups of population
characterized by a low standard if living.
5318 27 February 1948
CO-ORDINATING COMMITTEE
DRAFT OF ARTICLE 13 SUBMITTED BY MR. WILCOX
AS REDRFTED TO 27 FEBRUARY 1948
Article 13
Govermental Assistance to
Economic Davelopment
1. The Members recognize that special governmental assistance may be
required to promote the establishment, development or reconstruction of
particular industries, or particular branches of agriculture, and that in
appropriate circumstances the grant of such assistance in the form. of
protective measures is justified. At the same time they recognize that an
unwise use of such measures would impose undue burdens on their own
economies, unwarranted restrictions on international trade and might increase
unnecessarily the difficulties of adjustment for the economies of other
countries.
2. (a) If a Member in the interest of its economic development or
reconstruction considers it desirable to adopt any non-discriminatory
measure affecting imports which would conflict with any obligation
which the Member has assumed through negotiations with any other
Member or Members pursuant to Chapter IV, but which would not
conflict with the provisions of that Chapter, such Member
(i) shall enter into direct negotiations with all the other
Member which have contractual rights with a view to
obtaining agreement. The Members shall be free to proceed
in accordance with the term of any such agreement, provided
that the Organization is informed of the results of the
negotiations; or
(ii) shall initially or may in the event of failure to reach
agreement under sub-paragraph (i) above apply to the
Organization. The Organization shall determine, from among
Members which have contractual rights, the Member or Members
materially affected by the proposed measure and shall
sponsor negotiations between the applicant Member and these
Members with a view to obtaining expeditious and substantial
agreement.
/Tlhe Organizatïon
5350 -2-
The Organization shall establish and communicate to the
Members concerned a time schedule for such negotiations,
for lowing as far as practicable any time schedule which may
have been proposed by the applicant Member. The Members shall
commence and proceed continuously with such negotiations in
accordance with the time schedule laid down by the Organization.
At the request of a Member the Organization may, where it
concurs in principle with the proposed measure, assist in
the negotiations. Upon substantial agreement being reached,
the applicant Member may be released by the Organization
from the obligation referred to in this paragraph, subject
to such limitations as may have been agreed upon in the
negotiations between the Memebers concerned.
(b) If as a result of action initiated under this paragraph, there
should be an increase in the importations of the product or products
concerned, including products which can be directly substituted therefor,
which if continued would be so great as to jeopardize substantially the
plans of the applicant Member for the establishment, development or
reconstruction of the industry, industries or branches of agriculture
concerned, and if no preventive measures consistent with this Charter
can be found which seem likely to prove effective, the applicant Member
may, after informing, and when practicable consulting with the
Organization, adopt such other measures as the situation may require;
Provided that such measures do not restrict imported more than necessary
to offset the increase in imports referred to in this sub-paragraph.
Except in unusual circumstances, such measures shall not reduce imported
below the level obtaining in the most recent representative period
preceding the date on which the Member initiated action under
sub-paragraph (a) of this paragraph. The Organization shall determine,
as soon as practicable, whether such measures should be continued,
discontinued or modified Such measures shall in any case be terminated
as soon as the Organization determines that the re-negotiations are
completed or discontinued. It is recognized that the contractual
relationships referred to in sub-paragraph (a) of this paragraph
involve reciprocal advantages, and therefore any other Member which has
a contractual right in respect of the product to which such action
relates, and whose trade is materially affected by the action, may
/suspend the -3-
Suspend the application to the trade of such Member of such
substantially equivalent obligations or concessions under Chapter IV,
the suspension of which the Organization does not disapprove. Any
Member intending to suspend such application shall consult the
Organization before doing so.
3. In the case of any non-discriminatory measure affecting imports which
would conflict not only with any obligation which the Member has assumed
through negotiations with any other Member or Members pursuant to
Chapter IV, but also with the provisions of that Chapter, the provisions
of paragraph 2 (a) (ii) shall apply; Provided that before granting a release
the Organization shall afford adequate opportunity for all Members which
it determines to be materially affected to express their views. The
provisions of paragraph 2 (b) shall. also be applicable in this case.
4. (a) If a Member in the interest of its economic development or
reconstruction considers. it desirable to adopt any non-discriminatory
measure affecting imported which would conflict with any provision
of Chapter IV, but would not conflict with any obligation which the
Member has assumed through negotiations with any other Member or
Members: pursuant to Chapter IV, such applicant Member shall so notify
the Organization and shall transmit to the Organization a written
statement of the considerations in support of the adoption, for a
specified period, of the proposed measure.
(b) The Organization shall concur in the proposed measure and grant
release from such provision for a specified period if, having
particular regard to the applicant Member's need for economic
development or reconstruction, it is established that the measure
(i) is designed to protect a branch of industry, established
between 1 January 1939 and the date of signature of the
Final Act of the present Charter, which was protected
during that period of its development by abnormal conditions
arising out of the war; or
(ii) is designed to promote the establishment or development
of a branch of industry for the processing* of an indigenous
* Texts to appear in Report The Chinese delegation has expressed some doubt
about the moaning of the word "processing" which appears in (ii) and (iii)
of sub-Paragraph 4.(b) It was agreed that the word processing" meant
the treatment of a primary commodity in its early and intermediate stages;
it would not refer to advanced manufacturing processes such as the
manufacture of precision instruments. / primary commodity primary commodity, when the external sales of such commodity
have been materially reduced as a result of new or increased
restrictions imposed abroad; or
(iii) is necessary in view of the possibilities and resources of the
applicant Member to promote the establishment or development
of a branch of industry for the processing of an indigenous
primary commodity, or for tho processing of a by-product of
such a branch of industry which would otherwise be wasted, in
order to achieve a fuller and more economic utilization
of the applicant Member's natural resources and manpower and,
in the long run, to raisc the standard of living within the
territory of the applicant Member and is unlikely to have a
harmful effect in the long run, on international trade;* or
(iv) is unlikely to be more restrictive of international trade
than any other practicable and reasonable measure permitted
under this Charter which could be imposed vithout undue
difficulty and is the one most suitable for the purpose having
regard to the economies of the branch of industry or
agriculture concerned and to the applicant Member's need for
economic development or reconstruction.
Alternative A
[Provided that, if it is established that the measure causes material
injury to the trade of another Member or Members, the Organization may
authorize the affected Member or Members to suspend the application to
the trade of the Member applying the measure of such substantially
equipment obligations or concessions under Chaptcr IV, the suspension
of which the Organization does not disapprove. Any Member Intending
to suspend such application shallconsult the Organization before
doing so; and]
Alternative B
[Provided that the applicant Member shall apply uny measure under this
sub-paragraph in such a way as to avoid unnecessary damage to the
commercial or economic interests of any other Member including
Toxt to appear in Report: It was agreed that "international trade" as
cited in (iii) of sub-paragraph 4 (b) meant international trade in general
and not trade in the specific product to which the measure related.
/interests under interests under Articles 3 and 9; and]
Provided further that
(i) any proposal by the applicant Member to apply any such
Measure, with or without modification after the end of the
initial period, shall not be subject to the provisions of
this sub-paragraph; and
(ii) The Organisation shall not concur in any measure under the
provisions of [this] sub-paragraph [s (i), (ii) or (iii)],*
which is likely to have a harmful effect on [cause serious
prejudice to]* experts of a primary commodity on which the
economy of another Member is largely dependent.
(c) If the proposed measure does not fall within the provisions of
sub-paragraph (b), the Organization shall promptly transmit the statement
submitted by the applicant Member to the Member or Members which are
determined by the Organization to be materially affected by the proposed
measure. Such Member or Members shall, within the time limits
prescribed by the Organization, inform the Organization whether, in
the light of the anticipated effects of the proposed measure on the
economy of such Member or Members, there is any objection to the
proposed measure. If there should be no objection on the part of the
affected Member or Members to the proposed mesaure, the Organization
shall imediately free the applicant Member to apply it.
(d) If there be any objection, the Organization shall promptly examine
the proposed measure, having regard to the provisions of the Charter,
to the considerations presented by the applicant Member and its
[relative] need for economic development or reconstruction, to the
views of the Member or Members determined to be materially affected,
and to the effect which the proposed measure, with or without
modifications, is likely to have, immediately and in the long run, on
international trade, and, in the long run, on the standard of living
within the territory of the applicant Member. If, as a result of such
examination, the Organization concurs in the proposed mesaure, with
or without modification, it may release the applicant Member from its
obligations under the relevant provision of Chapter IV, subject to such
limitations as it may impose.
Alternatives proposed by Mr. Philip of French delegation.
/5. If, in anticipation -6-
5. If, in anticipation of the concurrence of the Organization in the
adoption of a measure referred to in paragraph 4 of this Article, there
should bo an increase or throatened increase in the importations of the
product or products concerned, including products which can be directly
substituted therefor, so substantial as to joopardize the plans of the
applicant Member for the establishment, development or reconstruction of
the industry, industries [or branches of agriculture] concerned, and if no
preventive measures consistent with this Charter can be found which seem
likely to prove effective, the applicant Member may, after informing, and
when practicable consulting with, the Organization, adopt such other measures
as the situation may require pending a decision by the Organization on the
Member's application; Provided that such measures do not reduce imported
below the level obtaining in the most recent representative period preceding
the date on which the Members original notification was made.*
6. The Organization and the Members concerned shall preserve the utmost
confidence in respect of matters arising under this Article.
7. In the case of measures referred to in paragraph 4 of this Article,
the Organization shall, at the earliest opportunity but ordinarily within
fifteen days after receipt of the statement referred to in paragraph 4 (a)
of this Article advise the applicant Member of the date by which it will be
notified whether or not it is released from such obligation or obligations
as may be relevant. This date shall be not more than ninety days
subsequent to the receipt of such statement; Provided that, if before the
date set, unforeseen difficulties arise, the period may be extended after
consultation and agreement with the applicant Member. If the applicant
Member does not receive such decision by the date set, it may after informing
the Organization, institute the proposed measure.
NOTE: A statement by Dr. Lleras Restrepo (Colombia), clarifying the position
of his delegation in respect of this article, is being circulated
separately.
* Text proposed by the Chinese delegation to appear in Report: It was agreed
that paragraph 5 would permit a Member to prohibit entirely or reduce
the importe of a product to the extent needed to ensure that, over the
whole period following the date of notification of the Members
Application, that product vas not imported at a rate greater than in
the most recent representative period preceding the date of
notification. ARTICLE 13
(Unless otherwise indicated, references are to the draft of Article 13
submitted by Mr. Wilcox at the request of The Chairman of the
Co-ordinating Committee, White Paper 5200 of
24 February 1948)
1. After 4 (b) (iv) insert the amendment suggested by Mr. Muller
(White Paper 5306), worded as follows:
"Provided that the Organization shall not concur in any measure,
under the provisions of this sub-paragraph, which is likely to
have a harmful effect on exports of a primary comodity on which
.the economy of another Member is largely dependent;"
2. Immediately after the foregoing proviso, insert Alternative B
(White Paper 5200), worded a follows:
"Provided further that those applicant Member shall apply any
measure under this sub-paragraph in such a way as to avoid
unnecessary damage to the commercial or economic interests of
any other Member; and"
3. Immediately after the foregoing proviso, insert the following, which
is worded as in White Paper 5200:
"Provided further that any proposal by the applicant Member to apply
any such measure, with or without modifications, after the end of
the initial period, shall not be subject to the provisions of this
sub-paragraph."
4. In sub-paragraph 4(c); insert after the words "(c) If the proposed
measure does not fall within the provisions of sub-paragaph (b)," the
Brazilian proposal, redrafted as suggested in the penultimate paragraph of
White Paper 5306, as follows:
"(i) the Member [shall] may enter into direct consultations with
the Member or Members which, in its judgment, will be materially
affected b., the measure, with a view to obtaining agreement. At
the same time, the Member shall inform the Organization of the
proposed measure and of the consultations relative thereto in order
to afford the Organization an opportunity to determine whether all
materially affected Members are included within such consultations.
5357 /Upon complete -2-
Upon complete or substantial agreement being reachod, the Member
interested in taking the measure shall apply to the Organization
for release. The Organization shall promptly examine the
application to ascortain whether the interests of all the
materially affected Membors were duly taken into account. If the
Organization reaches this conclusion, with or without further
consultations between the Members concerned, it shall [grant the
applicant Membor the release requested] release the applicant
Member from its obligations under the relevant provision of
Chapter IV, subject to such limitations as it may impose; or
(ii) shall lnitially or may in the event of failure to reach complete
or substantial agreement under sub-paragaph (i) above apply to
the Organization. The Organization shall promptly, etc."
(Changes from the text contained in White Paper 5306 are indicated
by underlining and brackets)
5. If the foregoing Brazilian proposal is adopted, two consequential
amendments to paragraph , appear to be necessary, as follows:
(1) In the third and fourth lines, the text should be altered
to road as follows:
"within fifteen days after receipt of the statement referred
to in sub-paragraph 4 (a) of this Article or in the case of
measures dealt with in accordance with the provisions of
sub-paragraph 4 (c) (i), of the application referred to in
that sub-paragraph this Article...."
(2) In the fifth line from the bottom, insert the words "or
application" after "such statement". 27 February 1948
CO-ORDINATING COMMITTEE
CONSEQUENTIAL CHANGES IN DRAFT CHARTER AND GENERAL
AGREEMENT ON TARIFFS AND TRADE REQUIRED BY THE ADOPTION OF
ALTERNATIVE 2 OF THE UNITED STATES PROPOSALS REGARDING THE
INTERIM TARIFF COMMITTEE, ETC.
1. Article 17 would be amended as follows:
[4. If any Member considers that any other Member has failed to
fulfil its obligations under paragraph 1 of this Article, such Member
may refer the matter to the Organization, which, after investigation,
shall make appropriate recommendations to the Members concerned If
the Organization finds that a Member has failed without sufficient
Justification, having regard to all relevant circumstances, including
the developmental and other needs and the general fiscal structures
of the Member countries concerned, and to the provisions of the Charter
as a whole, to carry out negotiations within a reasonable period of
time in accordance with the provisions of paragraph 1 and 2 of this
Article, the Organization may valve the requirements of Article 16
to the extent necessary to permit the complaining Member or Members
to withhold from the trade of the other Member any of the tariff
benefits which may have been negotiated pursuant to paragraph 1 of
this Article, and embodied in Part I of the General Agreement on
Tariffs and Trade. If such benefit are in fact vithheld, so as to
result in the application to the trade of the other Member of tariffs
higher than would otherwise have been applicable, such other Member
shall then be free, within sixty days after such action becomes
effective, to give written notice of withdrawal from the Organization.
The withdrawal shall take effect upon the expiration of sixty days
from the day on which such notice is received by the Organization.
5. The provisions of this Article shall operate in accordance with
the provisions of Article 81.]
4. The provisions of Article 16 shall not prevent the operation of
paragraph 5 (b) of Article XXV of the General Agreement on Tariffs
and Trade, and shall cease to require the application of the concessions
provided for in Part I of the General Agreement to the trade of any
Member which has failed to become a party to the General Agreement
Within two years from the entry into force of this Charter for that
/Member,
5374 -2 -
Member, Provided that the Orgànization may require such extension to
any Member which either has not been requested to become, or has been
unreasonably prevented from becoming, a party to the Genaral Agreement
pursuant to negotiations in accordance with the provisions of this
Article. In any judgement as to whether . Member has been unreasonably
prevented from becoming a party to the General Agreement, and in any
judgment under Chapter VIII as to whether a Member has failed to fulfil
its obligations under this Article, the Organization shall have regard
to all relevant circumstances, including the developmental,
reconstruction and other needs and the general fiscal structures of
the Member countries concerned and to the provisions of the Charter
as a whole. If in fact such concessions are withheld, so as to result
in the application to the trade of the other Member of tariffs higher
than would otherwise have been applicable, such other Member shall
then be free, within sixty days after such action becomes effective,
to give written notice of withdrawal from the Organization. The
withdrawal shall take effect upon the expiration of sixty days front
the day on which such notice is received by the Organization.
2. Article 70 would, be amended as follows:
ARTICLE 70
"The Organization shall have a Conference, an Executive Board,
[a Tariff Committee,] Commissions as established under Article 79,
and such other organs as may be required. There shall also be a
Director-General and staff."
3. Paragraphs 1 and 2 of Article 74 would be handed as follows:
"1. The powers and duties attributed to the Organization by this
Charter and the final authority to determine the policies of the
Organization shall [, subject to the provisions of Article 81,] be
vested in the Conference."
2. The Conference may by an affirmative vote of a majority of
the Members of the Organization, assign to the Executive Board the
exercise of any power or the performance of any duty of the
Organization, except such specific powers and duties as are expressly
conferred. or imposed upon the Conference [or the Tariff Committee]
by this Charter."
4. Article 81 would be deleted.
/5. Paragraph 5 -3-
5. Paragraph 5 of Article XXV of the General Agreement on Tariffs and
Trade would be amended as follows:
5. (a) In exceptional circumstances not elsewhere provided for
in this Agreement, the CONTRACTING PARTIES may waive an
obligation imposed upon a contracting party by this Agreement;
Provided that any such decision shall be approved by a two-
thirds majority of the votes cast and that such majority shall
comprise more than half of the contracting parties.
The CONTRACTING PARTIES may also by such a vote
[(a)] (i) define certain categories of exceptional
cïrcumstances to which other voting
requirements shall apply for the waiver of
obligations, and
[(b)](ii) prescribe such criteria as may be necessary
for the application of this paragraph.
(b) If any contracting party has failed without sufficient
justification to carry out negotiations with another
contracting party, of the kind described in Article 17
of the Charter for an International Trade Organization,
the CONTRACTING PARTIES may, upon complaint and after
investigation, authorize the complaining contracting
party to withhold from the other the concessions
incorporated in the relevant Schedule to this Agreement.
In any judgment as to whether a contracting party has
so failed, the CONTRACTING PARTIES shall have regard
to all relevant circumstances, including the developmental,
reconstruction and other needs and the general fiscal
structures of the contracting parties concerned and to
the provisions of the Charter as a whole. If in fact
the concessions referred to are so vithheld, so as to
result in the application to the trade of the other
contracting party of tariffs higher than would otherwise
have been applicable, such other contracting party shall then
be free, within sixty days after such action becomes
effective, to give written notice of withdrawal from the
Agreement. The withdrawal shall take effect upon the
expiration of sixty days from the day on which such
/notice -4-
notice is received by the CONTRACTING PARTIES.
(c) The provisions of sub-paragraph (b) shall not apply
as between any two contracting parties the Schedules
of which contain concessions initially negotiated
between such contracting parties.
NOTE: This paper is a corrected version of a paper distributed at the
meeting of the Co-ordinating Committe on 27 February 1948. 27 February 1948
CO-ORDINATING COMMITTEE
STATEMENT MADE BY MR. LIKRAS RESTREPO (COLOMBIA)
TO THE CO-ORDINATING COMMITTEE
AT ITS MEETING ON 25 FEBRUARY 1948
I have been instructed by my Government to set before the Co-ordinating
Committee the position of my country towards the new draft of Article 13,
submitted by the United States delegation as the best way to reach an
agreement between the supporters of the original Geneva Charter and the
countries which have raised objections to the General application of some
of the dispositions of that project.
Without doubt we have arrived to the crucial point of our discussions,
and it is essential to analyze fully all the factors implied. However, I
need to explain again, the reasons which motivate, and, in our opinion,
justify, the attitude my country must adopt towards the proposed formula.
I dare to think that this is not unuseful, even in the present stage of the
Conference, and ask for your careful consideration of the very serious
points I am going to present and explain in this session.
I should like this committee to remember what the attitude of Colombia
has been since the time of the earliest proposal for a Charter on Trade
and Employment. In the first session of the Economic and Social Council,
where the United States originally presented plans for the Organization we
are establishing now, Colombia asked for and obtained a reform of the
proposition concerning the creation of the preparatory commission, ordering
this commission to take into account the special conditions prevailing in
countries in an early stage of development. Later, we communicated both to
the meetings of London and Geneva that we considered it absolutely necessary
to create in the body of the Charter special regulations directed to the
defense and promotion of economic development. Nevertheless, on all these
occasions my country expressed great sympathy towards the constitution of
a system of international co-operation in the field of trade and employment.
This sympathy was only the natural sequence of our traditional policy, as
we have always supported the idea of a judicial organization able to direct
international relations in the light of equity and general convenience.
We certainly did not wish to break this tradition, and we always hoped that
a way could be found to permit us to participate in the new plan without
sacrificing the essential interest of our people.
/The inclusion
5383 -2-
The inclusion of Article 13 in the Draft Charter permitted our
government to accept the invitation to attend this conference, against the
fact that a very strong opposition exist to some other dispositions of
the Charter. We did not consider the provisions of this Article fully
satisfactory, but we expected that some reforms, strictly just and logical,
could be accepted. We have not even considered accepting the Charter
without the provisions of this Article. The Geneva text opened new
possibilities, but we always thought that more definite rules would be
necessary to guarantee our country at least a minimum of security for its
economic future. A country handicapped by all the factors proper to
tropical zones, the moat mountainous ln America, subject to very irregular
climatic conditions, with tremendous problems in transportation, is clearly
in an inferior position to compete with other countries more favoured by
nature. We cannot think of employing agricultural machinery to the same
extent as other countries; equipment and products must be transported
across three tremendous mountain, ranges, apart ,rom certain specialized
zones the agricultural soil is of very poor quality; neither in the
industrial nor the agricultural field have we enough skilled technicians,
and capital available is not sufficient for our requirements. In these
conditions, the renunciation of the possibility of applying special
protective measures, could hardly be contemplated. In studying Article 13,
we saw that this possibility was clearly admitted, but the Geneva Draft
left an almost unrestricted power in the hands of the Organization to grant
or refuse permission to establish such measures. From the beginning we
considered it necessary to limit this power, and a Colombian amendment to
Article 13, presented as early as last November, vas directed towards the
enumeration of cases in which the Organization may not withhold consent.
The Colombian delegation did not present any amendment which could be
considered as being radically opposed to the general structure of the
Charter, and its position during all the discussions has been fully
co-operative and conciliatory. I want you to remember this fact because
we do not wish our attitude to the problem we are now discussing to appear
as a demonstration of undue obstinacy, but we cannot give our consent to
any solution which does not guarantee the minimum of security we consider
necessary to our essential interests. For this reason, I cannot take any
responsibility as a member of this committee to recommend, an incomplete
and inadequate formula. I think that this formula can and should be
/reformed -3-
reformed if we wish to obtain a general and sincere agreement. Let me tell
you what our objections are, and what reform we should like to see accepted.
If we examine Article 13 as it appears in the Geneva Draft Charter,
we find in the first place that paragraph i recognizes that in appropriate
circumstances, the grant of special governmental assistance in the form
of protective measures is justified. At the same time, the Draft Charter
recognizes three different kinds of harmful effects that these measures
any have, if they are unwisely used: undue burdens on the own economy of
the country concerned, unwarranted. restrictions on international trade, and
difficulties of adjusting for the economies of other countries. In the
presence of these two recognitions, the Draft Charter resolves to give the
Organization the power of decision in any particular case. Consequently,
it seems that the function of the Organization is to avoid the unwise use
of protective measures; but what is the real meaning of the words "unwise
use"?, and, as the decision will be adopted by representatives of countries
that could be directly or indirectly interested in the matter, what
guarantee can we have that "unwise" will not cover anything against the
interests of those countries?
The authors of the Draft Charter believed it necessary to complement
that vague phrase and in paragraph 2 c enumerated a list of circumstances
to which the Organization shall have regard. These circumstances are as
followed:
1. The provisions of the Charter.
2. The considerations presented by the applicant member.
3. The stage of economic development or reconstruction of
the applicant member.
4. The views presented by members which may be substantially
affected.
5. The effect which the proposed measure is likely to have
on international trade.
We must take note that this enumeration does not exclude the
consideration of any other factor concerning the proposed measure, so that
the Organization could for instance refuse its permission if it considered
that the proposed measure imposed an undue burden on the economy of the
applicant member, or that the measure is not necessary because the same
result could be reached by the imposition of a customs tariff and inasmuch
as the Organization is not limited to these circumstances the enumeration
has not a deoisive importance. /In paragraph 4 b In paragraph 4 b the Draft Charter presents the only effort to attain
what is now usually called. "automatic approval": this paragraph states
that the Organization shall concur in the proposed measure if it is
established that such measure:
i. Is unlikely to be more restrictive of international trade
than any other practicable and reasonable measure permitted
under the Charter which could be imposed without undue
difficulty; and
il. That it is the one most suitable for the purpose having
regard to the economics of the industry or the branch of
agriculture concerned, and to the current economic
condition of the applicant member.
I said that this paragraph is only an effort to include in the Charter
the so called automatic approval, because the two points mentioned above
do not refer to facts which can be proved objectively. They leave the
Organization a great freedom of Judgment, and it is easy to understand
that, in any particular case, great differences of opinion may arise between
the applicant member and the Organization in the appreciation of factors
as to whether a measure is the most suitable to apply to a given industry
in a given stage of economic development. Then I think no automatic
system is contemplated in the Geneva Draft, and that this draft only gives
the Organization certain directions of a very general character, but leaves
the Organization a very broad field for the exercise of its own judgment.
Moreover, it is necessary to take into account that paragraph 4 b in giving
these directions orders the Organization to have regard also to the
provisions of paragraph 2 c, that is, to consider the five circumstances
I have already enumerated. In such conditions no one can say that a real
automatic approval is contemplated in the Geneva Draft.
Faced by these regulations, what has the attitude of undeveloped
countries been? Some of them chose the way of proposing exceptions to the
different articles of the Charter which prohibit special protective measures.
The draft agenda of Committes III is full of this kind of amendment,
particularly in relation to Article 20 on quantitative restrictions. There
are also amendments contemplating a system of exceptions to the articles
concerning internal taxation, mixture regulation, etc. The Colombian
delegation preferred to present an amendment to Article 13, as I have
already explained. It was our intention not to break the general structure
/of the Charter
-4- -5-
of the Charter, and we always thought that through certain reforms in
Article 13, it would be possible to guarantee to come extent the interest
of undeveloped countries. The amendments presented to other articles of
the Charter have been rejected one after another, and finally the hopes
for a solution of all the claims embodied in these amendments are
concentrated in a new draft of Article 13.
Most of the undeveloped countries asked for a general exception permitting
them to establish protective measures without any limitation whatsoever.
Others asked for liberty to apply protective measures in certain special
cases but without prior approval by the Organization. Others, more modest
or less audacious and courageous chose the way of accepting prior approval,
asking only for an automatic system in certain special cases. This last
request was the way adopted by the Colombian delegation and I have the
feeling that the moderation of our attitude aroused certain criticism on
the part of more aggressive champions of radical solutions. Apart from
these differences in degree, what is the main demand of undeveloped countries?
To limit the powers of the Organization, leaving a certain freedom of action
to these countries, or at least imposing on the Organization the obligation
of granting its consent when certain concrete facts shall have been
demonstrated. It is interesting to compare the solution offered in the
terms of a true ultimatum by the American delegate with the claim of the
undeveloped countries.
It is obvious that the amendements contemplating complete freedom for
the imposition of restrictive measures have been rejected and are at
present dead and buried. I regret this end but it is not a surprise to me.
Before continuing, let us pay our respects to their tomb.
The United States proposal rejects equally the thesis of no prior
approval. It is another petition from the undeveloped countries that
Mr. Wilcox is preparing to kill in cold blood. I do not know whether the
intended victim has sufficient strength to resist or whether its shade will
disturb the sleep of its killer, but the fact remains: the prier approval
is always requested in the proposal of the United States.
In a previous session of this committee I declared that the Colombian
delegation was prepared to accept the requisite of prior approval. I
explained then what our position was, but I should like to describe it
more fully. We considered this prerequisite convenient and acceptable
because it gives the Organization the opportunity to establish that no
/country -6-
country acted beyond the limits the Charter may fix. Nevertheless we want
these limited to be sufficiently precise and clear; we wanted the enumeration
of certain cases whose existence once proved would make it obligatory for
the Organization to grant release, without discussing the suitability of
the proposed measure, the effects of this measure on the economy of the
applicant member, or any other factor. We proposed an enumeration of such
characteristics because we think that the role of the Organization as a
defender of the interests of international trade should have a limitation.
There are in fact some vital interests whose defense is so legitimate that
it seems impossible to place in the hands of other countries the power to
decide by what measure such interests may be safeguarded.
Take, for instance, the case of undeveloped. countries whose
agriculture has not reached a satisfactory stage of technical improvement,
and whose territory offers peculiar difficulties to the use of modern
equipment. They are not in a position to modify such conditions in a
short period. The government cannot say to the peasants "You are producing
at a cost higher than the international price; therefore you must suffer
the harmful consequences of foreign competition without any defense other
than a customs tariff which is always difficult to increase and is subject
to negotiation for its reduction; you must suffer the instability of
international prices and allow your standard of life, already too low, to
be exposed to further reductions." The government cannot face the problems
of famine, tropical diseases, clothing and shelter by singing the praises
of the international distribution of work and free trade. Our duty is to
guarantee these people stable and remunerative prices, and a safe market
for their products. We do not wish to cause any prejudice to other
countries but it seems absurd that we must pay for the wellbeing of people
of other countries vith the misery of our own peasants.
I want to present, here the enumeration of certain circumstances which
taken as a whole must justify the adoption of protective measures without
any discussion. If a country has important groups of population who have
traditionally produced a certain agricultural product, and this country
has also factories for the processing of that product; if the producers
are unable at present to produce at a low cost due to the peculiar
conditions of the territory and the lack of technical improvements; if as
a consequence of the high cost of production and the international
competition the standard of living of these people is abnormally low; if
the fiscal position of the State does not permit any direct aid, have we,
/or have -7-
or have we not a case for the application of protective measures even for
the application of the hated quantitative restriction?
I have been told that it is possible to face such situations simply
by customer tariffs, or by a tariff quota, or by any of the other ingenious
means which everyone is learning here to evade the positive effect of the
Charter. I have received many of these lessons. I have also been told
that such cases are so clear that the Organization will surely grant
release. I beg the members of this committee to believe that I am not
presenting my claims with respect to Article 13 due to ignorance on my part.
I am not a member of the Geneva brotherhood, but twenty years of constant
contact with the economic problema of my country and a decade of the
teaching of economics permit me to understand a document of this nature,
even if it has as many secrets as the Geneva Charter. I affirm that
agricultural activities, particularly in a country like Colombia present
peculiar problems and difficulties which may make the use of special
protective, measures necessary. The Charter accepted this principle not only
in the first part of Article 13 but also in the entire chapter on subsidies,
and mainly in Article 20 where special exceptions have been included for
the use and benefit of some countries. I should also like to ask how many
monopolies on agricultural products have been created in anticipation of
the Charter by most of the European countries. If all these steps were
thought necessary, how is it possible to say that the way is open and easy
for the countries not covered by the above-mentioned exceptions, not rich
enough for employing subsidies, and who do not want to change their system
of free enterprise for the system of State trading?
All this is true and Article 13 was intended to cover agricultural
products and must continue to cover these products. Then we arrive to
the question of automatic approval. I repeat what I have aIready said
here, namely, that this automatic approval has its only justification in
the recognition of the fact that there are some cases so clear, so vital
to the interests of a country, that the Organization may not withhold
consent to the application of such protective measure as the country
concerned may find necessary. This is the point for which we have fought
here during three months, but when we arrive to the final stage We do not
find this vital interest of our people covered by the procedure of
automatic approval.
What is offered to us in exchange? Only the points covered by
/sub-paragraphe i -8-
sub-paragraphs i and ii of paragraph 4 b of the United States proposal.
These sub-paragraphs are the only ones of which it is possible to speak
as cases of automatic approval, as I shall demonstrate later. Well, we
have said that the Charter was not equitable from the point of view of
undeveloped countries; we have said that substantial reforms were necessary.
After suffering the defeat of many amendments, the undeveloped countries
have concentrated their efforts on Article 13 and now we find that the
position of hundreds of thousands of our peasants is not covered by the
long avaited reform. Instead we can go and say to our countries that
sub-paragraph i or 4 b of the now Article 13 applies the procedure of
automatic approval only for a limited period to the manufactured industries
created during the war. Instead of that, we can say to our people that
another case of automatic approval is contempleted in sub-paragraph ii. I
is true that no one knows what to do with this sub-paragraph and that many-
of the delegations have tried in vain to imagine a concrete situation to
which this sub-paragraph could be applied. It does not matter: some new
words were incorporated in the text of the new Bible and that must be
sufficient, perhaps excessive. In the opinion of my government and my
delegation what is offered in the field of automatic approval is completely
inadequate and totally unjust. We have asked repeatedly for the inclusion
of some sentence covering special agricultural situations and we have been
disposed to study whatever precautions were suggested to avoid an undue use
of the provision or to avoid unnecessary harm to other countries. It seem
that we have not been lucky; but we are feeling deeply the necessities and
hopes of our people and we cannot leave them to the unlimited decisions of
other countries, when we have already felt to what extremes the blind
fight of selfish interests can go. Therefore we are obliged to present
again our, petition before this committee and ask it to study the problem
whether it is or is not enclosed within the square brackets of the
United States proposal.
I have said already that the other points of paragraph 4 b cannot
come under the name of automatic approval; point iv is the same provision
contemplated in the Geneva Charter with the only difference that it changes
the words "current economic condition of the applicant member" for the
words "the applicant members relative need for economic development or
reconstruction". I don't think this change is in the least important and
from some aspects is not likely to be specially beneficial for undeveloped
countries.
/This leaves -9-
This leaves such-paregraph iii. This paragraph begins with the words
"Is necessary to promote the establishment etc." That means that the
Organization will have a great field for the application of its own
judgment, and consequently there is not automatic approval. To judge
whether a measure is necessary or not implies the power of affirming that
the industry could be protected sufficiently by customs tariffs alone. It
is impossible we imagine a broader concept, and these friend of conciseness
are now in a position to know how many phrases of the original Article 13
can be changed by a single word without in the least diminishing the power
of the Organization. This remark makes it necessary to comment on the
other sentemces of this sub-paragraph.
I should like to call the attention of this committee to the draft of
paragraph 7 of the United States proposal. This paragraph establishes a
rule referring to the time within which the Organization must give a decision,
but applies this rule only to the case of measures referred to in paragraph 4.
In all the other cases the Organization has not any time limit and from this
aspect the United States proposal is less convenient not only in relation to
the draft that the working group of Committee has already accepted in
principle, but also in relation to the present text of the Charter,
paragraph 5 of Article 13.
it is my hope that this committee may be able to make a new effort to
find a formula more complete and equitable, to cover particularly the case
of agricultural products in certain peculiar circumstances. If, unfortunately,
such a solution is not possible, I must declare that I cannot assume any
responsiblity as a member of this committee for recommending as a conciliatory
formula the proposal presented by the United States delegate, and I beg
the chairman to transmit to the Conference, together with the decision of
this committee, a copy of the statement I have just read, as an explanation
of my refusal to recommend the so called conciliatory formula. 27 February 1948
CO-ORDINATING COMMITTEE
CONSEQUENTIAL CHANGES IN DRAFT CHARTER REQUIRED BY THE ADOPTION
OF ALTERNATIVE 3 OF THE UNITED STATES PROPOSALS
REGARDING THE INTERIM TARIFF COMMITEE, ETC.
1. Article 81 - Eliminate.
2. Amend Article 70 to read as follows: "The Organization shall have
a Conference, an Executive Board, [a Tariff Committee,] Commissions as
established. under Article 79, and such other organs as may be required..
There shall also be a Director-General and Staff."
3. Amend paragraph 1 of Article 74 to read as follows: "1. The powers
and duties attributed to the Organization by this Charter and the final
authority to determine the policies of the Organization shall [, subject to
the provisions of Article 81] be vested in the Conference."
4. Amend paragraph 2 of Article 74 to read as follows: "2. The
Conference, by an affirmative vote of a majority of the Members of the
Organization, may assign to the Excecutive Board the exercise of any power
or the performance of any duty of the Organization, except such specific
Powers and duties as are expressly conferred or imposed upon the Conference
[or the Tariff Committee] by this Charter."
5. Insert new paragraph 2 between paragraphs 1 and 2 of Article 78.
"2. Notwithstanding the provisions of paragraph 1 of Article 74 the
Executive Board shall perform the functions attributed to the
Organization under paragraph 4 of Article 17, provided that if the
Board shall have authorized the withholding of any tariff benefit
from any Member pursuant to such paragraph, the said Member may appeal
to the Conference, which may , by the affirmative vote of two-thirds
of the Members, modify or reverse the action of the Board.
Comment
This provision is inserted in Article 78, (Powers and Duties of the
Board) rather than in Article 74 (Powers and Duties of the conference)
since it seems more appropriate to give the power direct to the Board in
the Charter rather than to provide that the Conference "shall assign" the
power to the Board.
6. Paragraph 5 of Article 17 - Eliminate.
5389 CO-ORDINATING COMMITTEE
AMENDMENT ARTICLE 15
SUGGSTED ON BEHALF OF THE LATIN AMERICAN GROUP BY W. MULLER
TO THE CO-ORDINATING COMMITTEE
(Sea Draft of Article 15 Submitted by the delegation of the
United States to the Co-ordinating Committee
at its Meeting of 24 February)
1. Add at the end "having particular reward to the applicant Member's
need for economic development or reconstruction".
2. Last line changed by "such information to all interested Members".
3. (a) Include in the Report of the Committee a definition of
"economic region" in the sense it was interpreted in the working
group studying Article 15,
(b) Change "necessary" by "'designed to".
Delete between "agricultural" and "newly created" the
words "to be".
Delete "substantially".
(d) Replace by "Any compensation granted to the other parties by
the party receiving preferential treatment shall, if it is a
preferential concession, conform with the provisions of this
paragraph, provided that if such compensation is not practicable
when the agreement is arrived at, tariff advantages may be in
relation to products not conforming to the requirements of sub-
paragraph (b) to the extent-necessary, as far as possible, to afford
due compensation, provided that such advantages shill be progressively
eliminated and replaced as soon as possible by preferences conforming
to the term of sub-paragraph (b).
(e) (i) Add at the end "If in the term of two months the
Negotiations have not lead to a substantial agreement, the
Organization shall fix an equitable and sufficient
compensation."
(iii) Changed by "Any Member State which enjoys most-favoured-
nation treatment might lodge a claim with the Organization
if it considers that the raise in the tariff rate is
excessive in the light of the objective which it desires
5413 /to obtain. -2-
to obtain. The Organization, after consideration of the
relevant aspects of the question, will determine if the
claim is justified, and eventually will ask from the member
which has increased the tariff rates, to effect the
modifications that the Organization may consider necessary
to satisfy the Member state which has made the claim.
(g) Provisions for termination of preferentials in the case they are
granted for reconstruction, have to have a time limit in relation to
the necessity of reconstruction, instead of a ten year period.
4. (a) Change the last phrase by "lf the Organization does not give a
ruling within the specified period, the authorization of the Organization
will be considered automatically received."
(b) Second last phrase to read as follows: "If, within two months
from the date on which the Organization suggested such negotiations, the
negotiations, through no fault of the parties to the proposed agreement,
have failed, tho Organization shall novertheless permit the necessary
departure from the provisions of Article 16 provided that those parties
grant the injured Member fair compensation or, if this would not be
possible, so modify the agreement as to give such Member fair treatment.
5. Change by "Members may, subject to such conditions as the Organization
may impose, enter into preferential agreements which, while in conformity
with the objectives stated in paragraph 1 and with the provisions of
sub-paragraphs (a) and (b) of paragraph 3, do not conform to the other
conditions stated in paragraph 3, provided that such agreements have received
[the approval of the majority of the Members present and voting] [the appro
of the Organization by a two-thirds majority of the Members present and
voting]. 28 February 1948
CO-ORDINATING COMMITTE
PROPOSAL BY THE DELEGATION OF THE UNITED STATE
1. It is proposed that the report of the Co-ordinating Committee be
distributed to Heads of Delegations on Monday, 1 March, and that the
meeting of Heads of Delegations be called for Tuesday, 2 Marh.
2. It is proposed that the Report of the Committee should recommend that
the Heads of Delogations make a single decision, i.e., whether or not to
settle all outstanding issues regarding economic development by accepting
or rejecting the substance of five attached papers as a whole.
3. It is proposed that the following five documents be attached to the
Report:
(1) Draft of Article 13.
(2) Draft of Article 15.
(3) Draft of amendments relating to the Tariff Committee and the
Economic Development Committee.
(4) Report of the Sub-Committee on Article 75 (E/ONF.2/C.6/53, of
29 January 1948).
(5) List of consequential amendments and reservations to be
withdrawn.
4. It is proposed that the documents contained in the programme approved
by the Heads of Delegations then be referred back to the appropriate
Committees of the Conference, with instructions to complete the drafts and
the accompanying reported and enact the resulting Articles and amendments
with the utmost speed.
5. lt is proposed that the Co-ordinating Commitee, having thus completed
the work for which it was established, be dissolved.
5421 28 February 1948
CO-ORDINATING COMMITTEE
UNITED STATES DELEGATION
OUTSTANDING RESERVATIONS AND AMENDMENTS TO ARTICLES 13
(RELEASE FROM OBLIGATIONS), 15 (NEW PREFERENCES), AND 17 AND
81 (TARIFF COMMITTEE)
(Excerpts from List Prepared by the Secretariat)
ARTICLE 16
Chile - Provisional reservation pending final decision on the text
of Article 15.
Argentina - Reservation on paragraph 1 pending a decision on the final
text of Article 16 and other Articles relating to preferences.
Iraq and Turkey - Reservation on paragraph 1 pending the report of the
Joint Sub-Committee of the Second. and Third, Committees, particularly regarding
the Ottoman Empire clause.
El Salvador - Reservation on paragraph 1 pending the report of the
Joint.Sub-Committee of the Second and Third Committees.
Peru - Reservation on paragraphs 2, 3 and 4 and the interpretative note
perding a decision on the text of Article 15.
Bolivia - Reservation on the whole Article pending report of the Joint
Sub-Committee of the Second and Third Committees.
INTERPRETATIVE NOTE TO ARTICLE 16
Peru - Reservation pending a final decision on the text of Article 15,
ANNEX A PERTAINING TO PARAGRAPH 2 (a) OF ARTICLE 16
Brazil - Reservation on paragraph 5 (b) of Article 23 relating to
Annex A pending the report of the Joint Sub-Committee of the Second and
Third Committees.
Uruguay - Provisional reservation.
Iran - Provisional reservation pending a final decision on Article 15
and on paragaphs 2 and 3 of Article 16.
Argentina - Provisional reservation pending a decision regarding new
preferential arrangement.
ARTICLE 17
Mexico - Pro former reservation on paragraph 3 pending agreement on
supercession of the provisions of the General Agreement on Tariffe and Trade
by the relevant provisions of the Charter.
5427 /Cuba -2-
Cuba - Reservation on paragraph 4 of Article 17 pending the outcome of
the consideration of Cuba's amendment to insert the words "and/or the
provisions of the General Agreement on Tariffs and Trade" and pending the
final decision of the contracting parties in respect of the amendment to
Article Il of the General Agreement suggested. by the Tripartite Working
Party of Sub-Committee A of Committee III, Sub-Committee D of Committee VI
and the Joint Sub-Committee of Committees II and VI.
Mexico and Peru - Provisional reservations on paragraph 5 pending the
report of the Tripartite Working Party.
Brazil - Reservation on the whole Article, particularly on the
procedure with respect to the elimination of preferences pending the report
of the Joint Sub-Committee of the Second and Third Committees relating to
new preferences.
ARTICLE 18
Guatemala - Reservation pending final text of Articles 13 and 15.
Cuba - Provisional reservation on paragraph 2.
Brazil and Chile - Provisional reservation on paragraphe 1, 2 and 3.
Ceylon - Reservation on paragraph 6.
Brazil - Provisional reservation on paragraph 6 pending instructions.
ARTICLE 20
Argentina, Bolivia, Chile, Ireland and Uruguay have reserved. their
positions on Article 20 pending final texts of Articles 13 and 21.
Ceylon, Colombia, Mexico and Peru have reserved their positions on
Article 20 pending the final text of Article 13.
China has reserved its position on Article 20 until the general
situation becomes clear.
Mexico and Peru have reserved their positions on sub-paragraph 2 (c)
of Article 20 pending the final text of Article 13.
Cuba has reserved its position on Article 20 in connection with its
proposal to add, a new sub-paragraph permitting restrictions on imports by
a country that was unfavourably affected in the production and export of
an important product through restrictions imposed by another Member under
the provisions of the Charter.
The Chilean delegation maintains its reservation on Article 21. The
maintenance of this reservation was based on an understanding by the delegate
for Chile that a further amendment to Article 21 might be introduced at a
later stage in Committee III (see S.R. 38). This situation is related to
/the solution the solution of Article 13.
ARTICLE 22
Bolivia has reserved its position on Article 22 pending instructions
from the Bolivien Government. 28 February 1948
CO-ORDINATING COMMITTEE
NOTE BY AUSTRALIAN DELEGATION FOR INSERTION
IN THE REPORT REGARDING THE INTEPRETATION
OF THE EXPRESSION "ECONOMIC REGION"
The Organization may interpret the term "economic region" to include
group of countries not necessrily contiguous or geographically close to
one another but which were in practice economically integrated to an
extent which made it probable thet the establishment of a preferential
arrangement would promote a more advantageous specialization in the use
of economic resources.
5462 28 February 1948
CO-ORDINATING COMMITTEE
ARTICLE 15
REDRAFT PROPOSED BY THE UNITED KINGDOM DELEGATION
1. The Members recognize that special circumstances may justify new
preferential agreements between two or more countries in the interest of
the programmes of economic development or reconstruction of one or more of
them.
2. Any Member or Members contemplating the conclusion of such an agreement
shall communicate their intention to the Organization and provide it with
the relevant information to enable it to consider the contemplated. agreement.
The Organization shall promptly communicate such information to all Members.
The Organization shall then examine the proposal and give a decision
concerning it as if the proposal had been submitted for its concurrence
under paragraph 4 (c) and (d) of Article 13. Any country which would be
accorded preferential treatment by another country under the proposed
arrangement shall be regarded as an applicant Memner for the purpose of
the Organizations examination. Following its examination, the Organization
may, subject to such limitations as it may impose, grant by a two-thirds
majority of the Members present and voting, an exception to the provisions
of Chapter IV to permit the prcposed arrangements to be made.
3. [The Organization shall consider whether the agreement] The
Organization's permission shall in any event be granted in respect of a
proposed agreement which fulfils the following conditions and requirements:
I. (a) [The territory of each party to the agreement shall be
contiguous with that of one of the other parties, or all
parties shall belong to the same economic region] all parties
to the agreement shall belong (i) to the same geographical or
economic region, or (ii) to a group of territories which has
special traditional ties of an economic character;*
(b) Any preferential customs duty provided for in the agreement
is necessary for the accomplishment of a Member's general
programme of economic development or reconstruction by ensuring
* Interpretative Note-A group of territories under I (a) (ii) might
comprise, for example, a metropolitan territory and its Colonial
Dependencies.
5468 /a sound -2-
a sound and adequate market for a branch of industry or
agriculture to be newly created or reconstructed or substantially
developed or modernized.
(c) The parties to the agreement undertake to grant free entry
for the product or products of the branch of industry or
agriculture referred to in sub-paragraph (b) or to apply to such
products customer duties sufficiently low to ensure that the
objectives provided. for in sub-paragraph (b) shall be achieved.
(d) Any compensation granted to the other parties by the party
receiving preferential treatment shall, if it is a preferential
concession, conform, with the provisions of this paragraph.
(e) The Member granting the preference shall not increase the
most-favoured-nation rate of duty on any product on which a
preference is Granted except under the following conditions:
(i) In the case of a duty already bound as a result of
negotiations under Article 17, the Member concerned
may raise the duty on the product concerned, provided
that the Members in whose favour the duty has been
bound receive due compensation in accordance with the
procedures of Article 13.
(ii) Any increase in a rate of duty not previously bound
and made either in anticipation of the agreement or
to be made at the time of the agreement shall be
specified in the notification to the Organization
provided for in paragraph 2.
(iii) If any Member complains to the Organization that such
an increase represents an excessive restriction on
international trade as compared with the benefits to
be derived in furthering the purposes of the proposed
agreement, the Organization, if it determines that
the complaint is justified, may require that the
proposed increase be modified, as a condition to
granting its authorization for the agreement.
(iv) The most-favoured-nation rate of duty established at
the time of the agreement on any such product may,
if not bound under any existing agreement, be
subsequently increased, provided that the margin of
/Preference -3-
preference is not thereby increased.
(v) The preferential rate of duty established at the
time of the agreement on any such product may be
subsequently reduced provided that the margin of
preference lis not thereby increased.
(f) The agreement contains provisions permitting the adherence of
other Members which are able to qualify as parties to the agreement
under the provisions of thief pararaph in the interest of their
programmes of economic development or reconstruction on terms and
conditions to be determined by negotiation with the parties to the
agreement. The provisions of Chapter VIII may be invoked by such
a Member, under this sub-paragraph, only on the ground that it has
been unjustifiably excluded from participation in such an agreement.
(g) The agreement contains provisions for its termination within
a period of not more than ten years, subject to renewal for periods
of not more than five years each in conformity with the provisions
of sub-paragraphs (a) to (f). If the agreement is so renewed, the
Organization may require that the preferences should be subject to
negotiation in accordance with the provisions of Article 17.
II. (a) If the Organization finds that the contemplated agreement
fulfils the conditions set forth in [paragraph 3] Part I of this
paragraph and that the conclusion of the agreement is not likely
to injure substantially the interests of Members not parties to
the agreement, it shall within two months authorize the parties
to the agreement to depart to the necessary extent from the
Provisions of Article 16 as regards the products covered by the
agreement. If the Organization does not give a ruling within
the specified period, the Members may proceed as if such
authorization had been received.
(b) If the Organization finds that the agreement, while fulfilling
the conditions set forth in [paragraph 3] Part I of this paragraph
is likely to cause substantial injury to the external trade of a
Member not party to the agreement, the Members contemplating the
agreement may enter into negotiations with that Member with a view
to reaching agreement. If and when an agreement is reached, the
Organization shall authorize the Members contemplating the
preferential agreement to depart to the extent necessary from the
/provisions provisions of Article 16 as regards the products covered by the
preferential agreement. If, within two months from the date on
which the Organization suggested such negotiations the negotiations,
through no fault of the parties to the proposed agreement, have
failed, the Organization shall nevertheless permit the necessary
departure from the provisions of Article 16 provided that those
parties grant the injured Member fair compensation or so modify
the aggrement as to give such Merber fair treatment. The provisions
of Chapter VIII of this Charter shall apply to compensation under
this sub-paragraph only when one of the parties to the negotiation
does not accept the Organization's decision regarding such
compensation.
(c) If the Organization finds that the agreement while fulfilling
the conditions set forth in [paragraph 3] Part I of this paragraph
is likely to jeopardize seriously the economic position of a
Member in world trade, lt shall not agree to any departure from
the provisions of Article 16 unless the parties to the agreement
have reached a mutually satisfactory understanding vith that
Member.
(d) If the Organization finds that the parties to the agreement
have, before 21 November 1947, obtained from countries
representing at least two-thirds of their import trade, the right
to depart from m.f.n. treatment in the cases envisaged in the
agreement, the OrganizatIon shall, without prejudice to the
conditions governing such recognition, grant the authorization
provided for in sub-paragraph (a), provided that the conditions
set out in sub-paragraphs (a), (o), (f) and (g) of [pay graph 3]
Part I of this paragraph are fulfilled and provided, further, that
in the case of a group of territories complying both with the
requirements of this sub-paragraph and with those of sub-
paragraph (a) (ii) of Part I of this paragraph all the conditions
set out in sub-paragraphs:(b) to (f) of Part I of this paragraph
are fulfilled. Nevertheless, if the Organization finds that one
or more Members, which have not recognized this right to depart
from m. f.n. treatment, are threatened with substantial injury,
it shall invite the parties to the agreement to enter into
negotiations with the injured Member, and the procedure of
/sub-paragraph (b)
-4- -5-
sub-paragraph (b) above shall apply.
[5. Members may, subject to such conditions as the Organization may
impose, enter into preferential agreements hich do not conform
to the provisions of paragraph (3), provided that such agreements
have received the approval of the Organization by a two-thirds
majority of the Members present and voting-] 1 March 1948
CO-ORDINATING COMMITTEE
DRAFT OF ARTICLE 15 AS AMENDED BY THE CO-ORDINATING
COMMITTEE AT ITS MEETING ON 28 FEBRUARY
1. The Members recognize that special circumstances including the need for
economic development or reconstruction may Justify new preferential agreements
between two or more countries in the interest of the programmes of economic
development or reconstruction of one or more of them.
2. Any Member or Members contemplating the conclusion of such an agreement
shall communicate their intention to the Organization and provide it with
the relevant information to enable it to consider the contemplated agreement.
The Organization shaIl promtly communicate such information to all Members.
3. The Organization shall consider whether the agreement fulfils the
following conditions and requirements:
(a) The territory of each party to the agreement shall be contiguous
with that of one of the other parties, or all parties shall belong to
the same economic region;
(b) Any preferential customs duty provided for in the agreement is
necessary to ensure a sound and adequate market for a branch of
industry or agriculture which is being newly created. or reconstructed
or substantially developed or [substantially] modernized within a
Member's general programme of economic development or reconstruction.
(c) The parties to the agreement undertake to grant free entry for
the product or products of the branch of industry or agriculture
referred to in sub-paragraph (b) or to apply to such products custom
duties sufficiently low to ensure that the objectives provided for in
sub-paragraph (b) shall be achieved;
(d) Any compensation granted to the other parties by the party
receiving preferential treatment shall, if It is a preferential
concession, conform with the provisions of this paragraph;
(e) The Member grating the preference shall not increase the
Most-favoured nation rate of duty on any product on which a preference
is granted except under the following conditions:
(i) In the case of a duty already bound as a result of negotiations
under Article 17, the Member concerned may raise the duty on
the product concerned, provided that the Members in whose
favour the duty has been bound receive due compensation in
5470 /accordance -2-
accordance with the procedures of Article 13.
(ii) Any increase in a rate of duty not previously bound and made
either in anticipation of the agreement or to be made at the
time of the agreement shall be specified in the notification
to the Organization provided for in paragraph 2.
(iii) If any Member complains to the Orgaization that such an
increase represents an excessive restriction on international
trade as compared with the benefits to be derived in
furthering the purposes of the proposed agreement, the
Organization, if it determines that the complaint is justified,
may require that the proposed increase be modified, as a
condition to granting its authorization for the agreement.
(iv) The most-favoured-nation rate of duty established at the tine
of the agreement on any such product may, if not bound under
any existing agreement, be subsequently increased, provided
that the margin of preference is not thereby increased.
(v) The preferential rate of duty established at the time of the
agreement on any such product may be subsequently reduced
provided that the margin of preference is not thereby increased.
Alternative for 3 (e) proposed by Dr. Coombs:
[The Organization upon the application of the Member shall agree
upon a margin of preference which it approves as an exception to
Article 16. As a condition of its agreement in such a margin of
preference the Organization may require a reduction in the
most-favoured-nation rate of duty proposed by the Member, if in the
light of the representatives of any affected Member it considers that
rate excessive.]
(f) The agreement contains provisions permitting the adherence of other
Members Which are able to qualify as parties to the agreement under the
provisions of this paragraph of the interest of their programmes of
economic development or reconstruction on terms and conditions to be
determined by negotiation with the parties to the agreement. The
provisions of Chapter VIII may be invoked by such a Member, under this
sub-paragraph, only on the ground that it has been unjustifiably excluded
from participation in such an agreement.
(g) The agreement contains provisions for its termination, within a
period of not more than ten years, subject to renewal for periods not
greater than five years each.
/Aternative -3-
Alternative for 3 (g) proposed by Mr. Novoa:
[The Agreement contains provisions for its termination
according to its nature and within a period necessary for its
purposes but in any case not more than ten years, subject to
renewal with the approval of the Organization for periods
not greater than five years each.]
4. (a) If the Organization finds that the contemplated agreement fulfills
the conditions set forth in paragraph 3 and that the conclusion of the
agreement is not likely to injure substantially the interests of Members
not parties to the agreement, it shall within two month authorize the
parties to the agreement to depart to the necessary extent from the
provisions of Article 16 as regarded the products covered by the
agreement. If the Organization does not give a ruling vithin the
specified period, the authorization of the Organization will be
considered automatically received.
(b) If the Organization finds that the agreement, while fulfilling the
conditions set forth in paragraph 3, is likely to cause substantial
injury to the external trade of a Member not party to the agreement, the
Members contemplating the agreement may enter into negotiations with that
member with a view to reaching agreement. If and when an agreement is
reached, the Organization shall authorize the Members contemplating the
preferential agreement to depart to the extent necessary from the
Provisions of Article 16 as regards the products covered by the
preferential agreement. If, within two months from the date on which
the Organization suggested such negotiations the negotiations, through
no fault or the parties to the proposed agreement, have failed, the
Organization shall nevertheless permit the necessary departure from the
provisions of Article 16 provided that those parties grant the injured
Member fair compensation or, if this is not possible or reasonable, so
modify the agreement as to give such Member fair treatment. The provisions
of Chapter VIII of this Charter shall apply to compensation under this
sub-paragraph only when one of the parties to the negotiation does not
accept the Organization's decision regarding such compensation.
(c) If the Organization finds that the agreement while fulfilling the
conditions set forth in paragraph 3 is likely to ,jeopardize seriously
the economic position of a Member in world trade, it shall not agree to
any departure from the provisions of Article 16 unless the parties to
the agreement have reached a mutually satisfactory understanding
/with -4- with that Member.
(d) If the Organization finds that the parties to the agreement have,
before 21 November 1947, obtained from countries representing at least
two-thirds of their import trade, the right to depart from m.f.n.
treatment in the cases envisaged in the agreement, the Organization shall,
without prejudice to the conditions governing such recognition, grant
the authorization provided for in sub-paragraph (a), provided that the
conditions set out in.sub-paragraphs (a), (e), (f) and (g) of paragraph 3
are fulfilled. Nevertheless, If the Organization finds that one or more
Members, which have not recognized this right to depart from m.f.n.
treatment, are threatened with substantial in jury, it shall invite the
parties to the agreement to enter into negotiations with the injured
Member, and the procedure of sub-paragraph (b) above shall apply.
5. Members may, subject to such conditions as the Organization may impose,
enter into preferential agreements which [, while in conformity with the
objectives stated in paragraph 1 and with the provisions of sub-paragraph (b)
of paragraph 3,] do not conform to the [provisions of]
[other conditions stated in] paragraph (3), provided that such
agreements have received the approval of the Organization by a two-thirds
majority of the Members present and voting. 1 March 1948
CO-ORDINATING COMMITTEE
ARTICLE 15 AS AMENDED 1 MARCH 1948
1. The Members recognize that special circumstances, including the need for
economic development or reconstruction, may justify new preferential
agreements between two or more countries in the interest of the programmes of
economic development or reconstruction of one or more of them.
2. Any Member or Members contemplating the conclusion of such an agreement
shall communicate their intention to the Organization and provide it with
the relevant information to enable it to consider contemplated agreement.
The Organization shall promptly communicate such information to all Members.
3. The Organization shall examine the proposal and may, subject to such
conditions as it may impose, grant by a two-thirds majority of the Members
present and voting an exception to the provisions of Article 16 to permit
the proposed arrangements to be made.
4. [The Organization shall consider whether the agreement fulfils]
Notwithstanding the provisions of paragraph 3, the Organization shall permit
the necessary departure from the provisions of Article 16, in accordance
with the provisions of paragraphs 5 and 6 in respect of a proposed agreement
for the establishment of tariff preferences which it determines to fulfil the
following conditions and requirements:
(a) the territor of each party to the agreement shall be continuous
with that of one of the other parties, or all parties shall belong to
the same economic region;
(b) any preferential customs duty provided for in the agreement is
necessary to ensure a sound and adequate market for a branch of
industry or agriculture which is being or is to be created or
reconstructed or substantially developed or substantially modernized;
(c) the parties to the agreement undertake to grant free entry for
the product or product of the branch of industry or agriculture
referred to in sub-paragraph (b) or to apply to such products, custom
duties sufficiently low to ensure that the objectives provided ror in
sub-paragraph (b) shall be achieved:
(d) any compensation granted to the other parties by the party
receiving preferential treatment shall, if it is a preferential
concession, conform with the provisions of this paragraph;
5490 /(e) The agreement (e) the agreement contains provisions permitting the adherence of other
Members, which are able to qualify as parties to the agreement under the
provisions of this paragraph, in the Interest of their programms of
economic development or reconstruction on term and conditions to be
determined by- neotiation with the parties to the agreement. The
provisions of Chapter VIII may be invoked by such a Member [, under this
sub-paragraph,] in this respect only on the ground that it has been
unjustifiably excluded from participation in such an agreement.
(f) The agreement contains provisions for its termination according
to its purposes and within a period. necessary for the fulfilment of such
purposes but in any case not more than ten year, [subject to] provided
that any renewal [with] shall be subject to the approval of the
Organization shall not be for periods [not] greater than five years each.
5. When the Organization, upon the application of a Member, approves, in
accordance with paragraph 6, an exception to Article 16, in respect of the
products covered by the proposed agreement, it shall determine the margin of
preference to be permitted thereon. [shall agree upon a margin of preference
which it approves as an exception to Article 16.] As a condition of its
[agreement in] approving such a margin of preference the Organization may
require a reduction in [the] an unbound most-favoured-nation rate of duty
proposed by the Member in respect of any product so covered, if in the
list of the representations of any affected Member it considers that rate
excessive.
6. (a) If the Organization finds that the contemplated agreement fulfills
the conditions set forth in para3raph 4 and that the conclusion of the
agreement is not likely to injure substantially the interested of Members
not parties to the agreement, it shall within two months authorize the
parties to the agreement to depart [to the necessary extent] from the
provisions of Article 16 as regards the products covered by the
agreement. If the Organization does not give a ruling within the
specified period, the authorization of the Organization will be
considered automatically received.
(b) If the Organization finds that the agreement, while fulfilling the
conditions set forth in paragraph [3] 4, is likely to cause substantial
injury to the external trade of a Member not party to the agreement, the
Members contemplating the agreement may enter into negotiations with that
Member with a view to reaching agreement. If and when an agreement is
/reached,
-2- reached, the Organization shall authorize the Members contemplating the
preferential agreement to depart [to the extent necessary] from the
provisions of Article 16 as rewards the products covered by the
preferential agreement. If, within two month from the date on which
the Organization suggested such negotiations the negotiations, through
no fault of the parties to the proposed agreement, have failed, the
Organization shall nevertheless permit the necessary departure from the
provisions of Article 16, Provided, that those parties grant the injured
Member fair compensation or, if this is not possible or reasonable, so
modify the agreement as to give such Member fair treatment. The
provisions of Chapter VIII of this Charter [shall apply to compensation
under this sub-paragraph] may be invoked in this respect cnly when one
of the parties to the negotiation does not accept the Organization's
decision regarding such compensation.
(c) If the Organization finds that the agreement while fulfilling the
conditions set forth in paragraph [3] is likely to jeopardize seriously
the economic position of a Member in world trade, it shall not agree to
any departure from the provisions of Article 16 unless the parties to
the agreement have reached a mutually satisfactory understanding with
that Member.
(d) If the Organization find that the prospective parties to the
agreement have, before November 21 1947, obtained from countries
representing at least two-thirds of their import trade, the right to
depart front most-favoured-nation treatment [in the cases] for the purpose
of establishing regional preferences as envisaged in the agreement, the
Organization shall, without prejudice to the conditions governing such
recognition, grant the authorization provided for in sub-paragraph (a),
provided that the conditions set out in sub-paragraphs [(a),] and (f)
[and (s)] of paragraph [3] 4 are fulfilled. Nevertheless, if the
Organization finds that one or more Members, which have not recognized
this right to depart from most-favoured-nation treatment, are threatened
with substantial injury, it shall invite the parties to the agreement
to enter into negotiations with the injured Member, and the procedure
of sub-paragraph (b) above shall apply.
/INTERPRETATVE NOTES INTERPRETATIVE NOTE
Paragraph 4 (a)
The Organization need not interpret the term "economic region" to
require close geographical proximity if it is satisfied that a sufficient
ddegree of economic integration exists between the countries concerned.
Paragraph 6 (d)
It is understood that the words "have, before November 21, 1947,
obtained from countries representing at least two-thirds of their import
trade, the right to depart from most-favoured-nation treatment for the
purpose of establishing regional preferences as envisaged in the agreement"
cover rights to conclude preferential agreements which may have been
recognized to mandated territories which became independent before
November 21, 1947, in so far as these rights have not been specifically
denounced before that date.
CONSEQUENTIAL AMENDMENT OF ARTICLE 13
Insert in parapraph 2 (a) of Article 13, after the word "reconstruction"
in the second line, "or for the purpose of increasing a most-favoured-nation
rate of duty in connection with the establishment of a new preferential
agreement in accordance with Article 15". 26 February 1948
SUMMARY RECORD OF MEETING OF COORDINATING COMMITTEE
Held on Thuraday, 26 Febuary 1948
Mr. HOLMES (United Kingdom),on a point of order, questioned the
publicity of the proceedings of the Coordinating Committee of Wednesday
as contained in documents ITO/CO/6 and ITO/155. In particular, the
statement attributed to him was misleading; albeit of fine shade, he
was most anxious that he not be misunderstood. He had meant to convey
that he could not be sure, when his government saw the United States
proposals, they would welcome them, and all he was able to undertake
was to accept them on his own responsibility as a basis for discussion.
The statement in ITO/155 that the second plan (Article 13) "limited
the length of time...."was not correct. The proviso at the top of page
United States
5 of the 99 draft of Article 13 was independent of Alternatives A or B.
Because of- these inaccuracies, the Committee should reconsider the
publicity which should be given to future meetings.
Mr. LLERAS-RESTREPO (Colombia) agreed with Mr. Holmes' statement and
felt that he also had been inaccurately quoted. He requested that the
press release of today's meeting include a correction of his final remarks
made Wednesday to the effect that " .... it is my hope that this Coordinating
Committee may be able to make an effort to find a new formula to cover cases
of agriculture in peculiar circumstances. If not, I must declare that I
cannot assume responsibility, as a member of this Committee, for recommend-
ing the formula, and I ask the Chairman to transmit my statement as an explana-
tion for my refusing to recommend that formula".
The CHAIRMAN (Mr. Suetens, Belgium) said that document ITO/CO/6 had
been approved by him. He had not seen the other document and suggested
postponing further consideration until the matter had been studied.
Mr. MULLER (Chile) stated that another meeting of latin American
Delegations would be required to complete their study of Article 15 and
the proposed Committees, and suggested that Article 13 should be considered. -2- Mr. WILCOX (United States) expressed concern with the time factor
and thought perhaps Articles 15 and the proposal for Committees should
be discussed by Heads of Delegations. However, Mr. MULLER (Chile) and
Mr. PHILIP (France) thought the present procedure better, and the
CHAIRMAN agreed that Article 13 should be studied today; Friday, when
the results of the Latin American meeting were at hand, Article. 15 and
the proposed Economic Development Committee could be studied without
respite so that a meeting of Heads of Delegations could be called either
for Saturday or Sunday.
ARTICLE 13.
Paragraph 1: Approved as amended --(retaining the words in square brackets).
Paragraph. 2 (a): approved as amended -(deleting the words in square brackets).
Paragraph 2(b): approved as amended (retaining the words in square brackets
Paragraph 3: approved.
Paragraph 4 (a): approved as amended - (deleting the words in square brackets).
Paragraph 4 (b):
Mr. WILCOX (United States) thought that tne adjective relative" was
necessary if the Organization in considering the need for development, con-
sidered, for example, the relative need as between two countries. But if
there was ambiguity in the use of the word, it should be deleted.
Mr. MULLER (Chile) said "relative" was useful only if it stressed the
right of under-developed countries for assistance.
Mr. NOVOA (Mexico) supported the deletion of the word.
It was agreed to delete the word "relative" from line 3 of paragraph 4 (b).
Mr. HOTMES (United Kingdom) said that his amendment to retain the last
three lines of 4 (b) in square brackets stemmed from his understanding
that under-developed countries were anxious to proceed with development
according to plan, rather than haphazardly. Encouragement should be
given to industries likely to become independent and therefore not re-
quiring the indefinite use of quantitative restrictions. -3-
Mr. MULLER (Chile) thought the measure was drafted in such a
way as to cover also the possibility of use by many countries not
under-developed. The Latin-American countries opposed the necessity
of including the criteria of a government planned economy; in certain
circumstances private capital might request assistance under the
criteris and procedure of paragraph 4 and neither should it be ex-
cluded nor should it be obliged to come under a government controlled
plan. Therefore, the portion in square brackets should be deleted.
The word "agriculture" could be retained provided the English in-
terpretation of the word "industry" as discussed at the previous meeting
was not applicable in sub-paragrapIs (i), (ii) and (iii).
Mr. LLERAS-RESTREPO (Colombia) agreed with Mr. Muller as to the
deletion of the phrase. As to the word "agriculture", sub-paragraph
(i), (ii), and (iii) were drafted so clearly as not to be applicable to
agriculture in any way. It would be inequitable to deprive agriculture
of the provisions of sub-paragraph (iv), which interpretation had already
been accepted in the Geneva draft. Therefore, aside from any interpre-
tation of "industry", "agriculture" could be maintained.
Mr. HAKIM (Lebanon) supported Mr. Muller; by deleting the phrase,
the Organizationis approwal would not be subject to the condition that
ment
the measures was related a program of economic develop/,. which might
not in fact exist. The possible interpretation of sub-paragraphs (i),
(ii) and (iii) was that they related to manufacturing industries; therefore,
the protection of agriculture would be considered during the discussion
of (iv).
Ur. NOVOA (Miexico) also agreed that the phrase should be deleted. The
retention of such phrase Would be be contradictory to the philosophy of
freedom of trad which inspired the Charter. -4-
Mr. HAKIM (Lebanon) agreed with the representative of Chile.
If the words were retained and the measure were subject to being
part of the programme of economic development or reconstruction, first
there might be no such programme, and second the effect of sub-paragraph
(b) (i) of paragraph 4 might be nullified as industries established dur-
ing the war would need protection even before a Member were able to
draw up a programme of economic development. The whole phrase "relates...
and that the measure" should be deleted.
Mr. NOVOA (Mexico) emphatically supported the deletion of the phrase
"relates...the measure";to retain it would be contradictory to the philo-
sophy of the Charter which was to promote a freedom of trade which had
been undermined by directed economy, causing the last war. Economic
planning was the result of a directed economy.
Mr. FERRERO (Peru) supported the retention of the words "relates
to a branch of industry or agriculture" and the deletion of the remainder
of the sentence in square brackets. The fourth criterion was to be
applied, and was the only one which could be applied, to agriculture.
Mr. HOLMES (United Kingdom) said he did not attach, specific
importance to the words under discussion, but felt that the concept
should be retained in some form. Regard should be paid to what might
be called the ability in its own right of the branch of industry or
agriculture which the measure was designed to assist for a period.
He pointed out, and Mr. MULLER (Chile) concurred, that according
to the latin American amendment to paragraph 4 (b), there was repetition
of the phrase "...that the measure", and there might be an improvement
in drafting.
Mr. WUNSZ-KING (China) supported the deletion of the whole phrase
"relates to a branch...that the measures". -5-
Mr. WUNSZ-KING (China) supported the deletion of the whole
phrase relates to a branch...that the measure.
Mr. WILCOX (United States of America) said it was not necessary to
make reference in paragraph 4 (b) either to industry or agriculture
because there was no limitation intended, and the whole article related
to both in its earlier paragraphs. The chilean amendment would ruin the
text; the words "relates..that the measure" should be deleted.
It was agreed that all the words in square brackets should be deleted
so the sentence would read: "...it is established that the measure (i)
is designed to protect a branch of industry...".
Mr. HOLMES (United Kingdom) thought it might be desirable to reconsider
the point at a later stage.
Amendment by the Latin American Countries to Article 13, paragraph 4 (b) (i)
Mr. WIICOX (United States) said that the inclusion of the words pro-
posed by the Latin American countries would introduce into the first case
which was designed to be automatic, an element of judgement on the part
of the Organization as to whether or not in a particular case production
was on a commercial scale. An industry established before 1940 which was
not in production until that year, and was perhaps established in antici-
pation of the outbreak of war, would have been brought into existence during
1939. It would be pore explicit and would probably cover the case if the
date in his text were changed to January 1, 1939, leaving the matter definite.
Mr. MULLER (Chile) said it would be very unfair that an industry established
in 1938 or 1939 and undeveloped on a commercial scale until the war and as
an indirect consequence of war, should not be encouraged under paragraph 4.
The procedure of that paragraph only provided protection for a limited time.
Industries should be given the opportunity to become consolidated so that
they could continue without protection. The idea had been to avoid their
certain destruction, and the change of date made by Mr. Wilcox did not
solve the problem. It was true that objective criteria existed which would
have to be judged, but it would be difficult to find a compromise. -6- Mr. PHILIP (France) said the amendment would bring unsuperable
difficulties. The establishment of an industry and the building of
a plant was action on a commercial scale. The words "commercial
scale" might be substituted by "at the assembly-line stage" but the
latin American amendment called not only for Judgement by the Organiza-
tion, but also a judgement which would inevitably cause much controversy.
Amending the date to January 1, 1939 would cover at least ninety-five
percent of the cases to which Mr. Muller (Chile) had referred.
Mr. HAKIM (Lebanon) supported the January 1, 1939 date.
The CHAIRMAN believed it would be better to retain the first
criterion as an automatic one. It would be well to support the pro-
posal made by Mr. WILCOX (United States of America).
Mr. MULLER (Chile) pointed out that few industries had been
crested during the war because of lack of equipment, etc., but many
had been developed, and the object was to protect them for the time
allotted by the Charter.
He would be inclined to accept the change of date to January 1,
1939.
Mr. COOMBS (Australia) pointed out that the wording would have
to be altered since industries "the production of which was not on a
commercial scale before January 1, 1940" would include all industries
to be established in the future.
The United States amendment was approved.
Mr. WILCOX (United States of America) drew attention to the
ian
Brazil/ amendment to paragraph 4 (b) (i) where the words "...the first
period of its development" had been amended to read "...that period of
its development".
Amendment by the Latin American Countries to Article 13, paragraph 4 (b) (ii) -7-
Mr. WILCOX (United States of America) proposed that, instead
of the deletion suggested by the Latin American countries, the last
sentence of his text of paragraph 4 (b) (ii) should be amended to
read: ..materially reduced as a result of new or increased resttic-
tions imposed abroad: or..."
Mr. MULLER (Chile) explained that deletion of the sentence
after "materially reduced " had been proposed because restrictions
of other countries might take the form for instarce of subsidized
industries. This would not be covered by the new wording.
Mr. NOVOA (Mexico) said that during the war and up to the pre-
sent time countries producing raw materials were forced to make
large investments to satisfy the increasing demand. A great part
of the population depended for employment on that economic activity.
If the demand for the articles produced was reduced not only because
of restrictions imposed but because the articles had become non-
essential, then the producing country would be faced with a supply
of dormant capital, and equipment, and unemployed labour. It would,
therefore, appear just that in these circumstances the country concerned
could take protective measures to develop these products which were
not exported at the time. For example, Mexico had exported large
numbers of cattle until a disease bad spread among them which had
made it necessary to close the frontiers. The situation could not
remain static - production could not be limited; therefore, it had
been necessary to develop industrial processes to take care of the
surplus.
Conditions during the war and after the war had increased the
demand for Mexican lead. Large investments had had to be made in
order to increase production. If by the simple fact that the demand
decreased, Mexico would have far greater production of lead than she
could absorb, and it would be only just that she should be allowed -8-
to protect and develop this primary commodity converting it into
products which might be acceptable elsewhere. For these reasons
he supported/the amendment proposed by Mr. Muller.
Mr. HAKIM (Lebanon) said that to make the deletion suggested
(Chile)
by Mr. Muller/ would not cover the situation. The last sentence of
sub-paragraph (ii) might be amended to reads "...materially reduced
as a result of a fall in the foreign demand for that primary commodity;"
It might be that the exports were materially reduced not as a result
of new or increased restrictions but as a result of many other import-
ant factors such as the development of synthetic substitutes for a
primary commodity, of natural factors or of depressions, etc. In any
case hardship was caused the exporter of the primary commodity who
might be helped by the establishment of an industry. His proposed
amendment would not restrict the provisions to cases where the de-
crease in exports was the result of new or increased restrictions.
The words "materially reduced" afforded suffficient safeguard.
Mr. WILCOX (United States of America) said that the only reason
he was willing to consider the automatic aspects involved in (i) and
(ii) was because it had been represents that those cases were limited
in Extent and were particularly meritorious. Cases had been cited
where the external sales of a conmodity were the result of action on
the part of another government, and the exporter had to do something
to provide a market for its products. That was the only reason why
category (ii) had been established.
If its whole justification were destroyed, the entire section
should be deleted. Already there were ample provisions for specific
cases in the Article. -9-
Mr. MALIK (India) supported the words originally proposed
by Mr. Wilcox. It would help the producers of primary products
more in the end if the door were opened for quantitative res-
trictions with automatic approval in the case of a fall in demand.
Cases should be confined to those in which the demand in the export
market for the goods was the result of restrictive action, otherwise
the same circumstances might obtain as those which lead up to the
last depression.
The CHAIRMAN pointed out that the aim of the draft was to make
the criteria as objective as possible, to avoid ambiguity, and to
make the application of the criteria automatic on the part of the
Organization. Specific cases were covered by other parts of the
Article.
Sub-paragraph (ii) of paragraph 4 (b) was approved as it stood
with the exception of the last words which were amended by air, Wilcox
to reads " ...materially reduced as a result of new or increased
restrictions imposed abroad.
In reply to a question which Mr. WUNZ-KING (China) had submitted
in writing, Mr. WILCOX (United States of America) said that a processing
operation was a manufacturing operation. "Processing"' implied the use
of primary commodities. Every manufacturing industry was engaged in
the processing of something. The word covered such things as milling,
textile operation. It would not include such highly developed industries
as those producing precision instruments. It tied manufacturing closer
to the idea that domestic raw materials were being used, but it certainly
was not limited to first processing: it would cover a succession of
stages of processing such as industries employed. -10-
Mr. WUNZ-KING (China) asked that an interpretative note in the
sense of the explanation of the word processing" should be appended
to the article, but after a request by the CHAIRMAN who said there
were already too many interpretative notes, he agreed to its appearing
in the report of the Co-ordinating Commimittee. A suggested amendment to
the wording by Mr. COOMBS (Australia) would cause too many complications
and was therefore not considered.
Paragraph 4 (b) (iii) and (iv)
Mr. HOLMES (United Kingdom) explained that his amendment had the
purpose of fusing these sub-paragraphs with the preamble. In his
opinion the wording which he suggested was more precise than that
contained in the text of sub-paragraph (iii) put forward by the
United States -representative.
Mr. WlLCOX (United States) agreed with the United Kingdom
representative and pointed out that the wording which he had suggested
had been designed to meet the views of the Latin American representatives.
On the suggestion of Mr. MULLER (Chile), the meeting was
suspended so that representatives would have time to study the amend-
ments proposed by the United Kingdom delegation.
The meeting rose at 8:15 p.m. SECRET 26 February 1948
SUMMARY RECORD OF MEETING OF COORDINATING COMMITTEE
Held on Thursday, 26 February 1948, at 9:30 p.m.
UNITED KINGDOM PROPOSED AMENDMENT TO THE UNITED STATES PROPOSALS.
As it was considered unlikely that a compromise solution would
be found through discussing the United Kingdom amendment, it was agreed
that the proposal made by Mr. NOVOA (Mexico) should be accepted. The
Co-ordinating Committee then proceeded to examine the United States
compromise proposal concerning Article 13, together with the observations
of the latin American nations.
Mr. HOLMES (United Kingdom) agreed to the discussion proceeding
on the United States draft, but pointed out that the United Kingdom
amendment dealt with the criteria of (iii) and (iv) in a more logical
arrangement. When the proviso was discussed, he would deal with the
passages to which it referred. It would be seen that the proviso was
being applied to (i) and (ii) and not necessarily to (iii) and (iv), and
that might possibly correct a misapprehension in the mind of Mr. Muller.
CONTINUATION OF DISCUSSION ON DRAFT OF ARTICLE 13 SUBMITTED BY MR. WILCOX
(UNITED STATES OF AMERICA) TOGETHER WITH AMEDMENT SUBMITTED BY MR. MULLER
(CHILE).
Paragraph 4 (b) (iii)
Mr. WIICOX (United States of America) pointed out that an attempt
was being made in the Committee to reach compromise solutions. For that
reason he had opposed the United Kingdom draft, and also opposed amendment
proposed by Mr. MULLER (Chile) to drop "is necessary" and substitute "is
designed". That amendment would be completely 'inacceptable to the United
States. -2- Mr. MULLER (Chile) said that criteria (iii) had several subjective
conditions that had to be fulfilled. There were several qualifications to
allow the application of protective measures together, naturally, with the
general limitation in time for the application of those measures. The
addition of the word unnecessary , which might be the strongest word in
that criteria, might make it difficult to prove the necessity of the
measure to be taken, and as that would be judged by the Organization,
it had been feared that there might not be the necessary comprehension
in the cases where the protective measures were applied to develop economy.
If what could be done under (i) and (ii) were taken into consideration,
protective measures under (iii) were very restrictive. To add the word
"necessary" gave very little hope of applying protective measures for the
development of an industry.
Mr. COOMBS (Australia) thought it desirable that the word "necessary"
should be retained. Great significance was attached to those aspects which,
without making obvious discrimination, provided a basis for a country to use
the particular type of device mentioned in the Article.
"Necessary referred to the type of protection contemplated. The
Organization should not judge as to whether a particular industry was a
desirable industry to protect or develop. The Committee was in a better
positionn to judge. They did not have the same concern in its taking an
interest in the particular form of protection which might be used, especially
if it prevented other countries from using it if they had not the same necessity.
which had accessible to them more tra-
The use of the word "necessary" would enable the Organization to prevent countries/
ditional types of protective
measures from using a type which would be a detriment to other and less
developed countries. The retention of the word would be a valuable pro-
tection against quantitative restrictions used by more highly developed
communities. -3-
Mr. ROYER (France) agreed with Mr. COOMBS (Australia) regarding
the retention of the word "necessary". It assisted the underdeveloped
countries in introducing the idea of choice of measures. The first
effect of the word "necessary" was to prohibit the use of those special
protective devides by countries which might avail themselves of other
methods of protection. The field of application from a geographical point
of view would be limited, and experience had shown that private interests
required that resort should be had to quantitative restrictions even
if other protective means were available. It would be a good thing if the
governments could say that resort could not be had to those measures be-
cause the ITO provided others.
Mr. WUNSZ KING (China) proposed that the beginning of the sub-
the
paragraph should be amended to read "is suitable for/promotion..."
as a compromise solution.
Mr. CHAIRMAN pointed out that "au necessaire" in French did not
reflect the substance correctly.
Mr. MULLER (Chile) said that "necessary" might be suitable or
convenient.
Mr. LLERAS-RESTREPO (Colombie) said that in case the word "necessary"
was not accepted, advantage should be taken of the interpretation given by
Mr. COOMBS (Australia) and Mr. ROYER (France) and the words "...in view of
the resources of the applicant Member" should be added after the words
"is necessary".
It was agreed that the words "is necessary" should stand.
It. was agreed that the brackets should be removed from the words
"or for the processing of a by-product of such a branch of industry which
would otherwise be wasted", as proposed by Mr. MULLER (Chile). -4-
As the four criteria were to be covered, and the idea that
special methods should not be used to protect products which were
the vital exports of other members was in the first proviso, it was
proposed to delete the words "on exports of a primary comnmodity on
which the economy of another Member was largely dependent or".
Mr. WILCOX (United States of America) agreed to the deletion
but suggested that discussion of the exact wording should be postponed.
It was agreed to delete the phrase.
Mr. WILCOX (United States of America) did not think it necessary
to add the words "on international trade in general as proposed by
Mr. MULLER (Chile), as the meaning was clear, However, it might be
desirable to indicate the fact in the Committee's Report.
Mr. MULLER (Chile) accepted the text as it stood. All trade
on a special product would be affected, and to a greater or lesser.
degree according to the capacity of the country.
It was agreed that the text should stand.
Paragraphs 4 (b) (iv)
Mr. LLERAS -RESTREPO (Colombia) said that he had heard no valid
reasons against the inclusion of his amendment. One opinion was that
the amendment was unnecessary because agricultural products could be
protected by other systems which were permissible and consistent with
the Charter. This was such a general argument that it might be applied
to agriculture and industry. If the Charter were sufficiently wide to
permit adequate protection for industry and production, then Article 13
was redundant. But paragraph 1 of Article 13 recognized that there were
special circumstances requiring protective measures, and also that it
might not be sufficient only to apply those permitted by the Chapter. -5-
There seemed to be no reason for the creation of special systems which
might sake it possible to protect manufacturing industries and not to
protect agricultural production. A manufacturing industry might also re-
sort to the Organization for permission to establish certain measures,
but it was felt that automatic mes sures should be established for manu-
facturing industries. The question to be discussed was not whether agri-
cultural industries would fall under the provisions of Article 13, but rather
whether it should be preferable to single out manufacturing industries and
set aside the agriculture. The basis for prosperity was in maintaining
agricultural industries. The purpose of the Charter was to give concrete
results. It should be ascertained in what cases it was the more urgent
to raise standards of living. In Colombia, although it would be useful to
help the manufacturing industries, it was more urgent to raise the standard
of living of the rural population. To maintain stability in the agricultural
production field was more difficult than maintaining manufacturing standards.
There was a need for ensuring stable and remunerative prices and not allowing
fluctuation,,in agricultural industries, and provision for this should be
included in Article 13. Nothing/should be introduced into the Article which
would prejudice the position of the underdeveloped countries. New industries
might be damaged through the protective measures of other countries. The
Article already contained provisions for taking into consideration the economic
condition of a country. Nothing was being propounded in the Colombian amend-
ment. It was to apply to countries that had certain industries and wanted
these industries to utilize their own raw materials. It would be strange to
create an automatic system for manufacturing industries established during
the war, and to establish non-automatic and more restricted conditions to
take advantage of natural and raw materials and resources of a country.
It would be logical not to apply this to products which fell under the
three divisions. -6-
Mr. LLERAS-RESTREPO (Colombia) said that when he critized the
proposal of Mr. WILCOX , he referred to the proposal itself and not to
the attitude of the country he represented, which he was sure did not
intend to exclude agriculture. The Colombian proposal complemented the
proposal by Mr. WIICOX (United States of America). SECRET
CO-ORDINATING COMMITTEE MEETING - 26th February - 9:30 P.M. (continuation)
Mr. COOMBS (Australia) opposed the Colombian proposal on
the grounds that that particular type of problem was not characteristic
of under-developed countries. In Australia, for example, the
standard of living of primary producers was not dependent on domestic,
but on world markets. Further, the provision would allow for the
protection of the wool industry in the United States and the sugar-
beet industry in Europe to the detriment of agricultural producers in
under-developed countries. The proviso that the product had to
have been can traditionally produced in the country and that the
measure was intended to increase low standards of living would not
prevent the provision being applied with respect to the two examples
he had given above.
In his opinion, the proposal was dangerous to under-developed
countries and therefore the problem raised by the representative of
Colombia should be solved otherwise than by the application of
automatically approved quantitative restrictions.
Mr. HAKIM (Lebanon) a greed with the representative of
Australia that the Colombian proposal was a dangerous one for its
provisos would not prevent its use by the developed countries. It
would also open the door to conflict between one under-developed
country and another and would give a privileged place to particular
types of agriculture.
To meet the point of view of the Australian representative,
Mr. Lleras Restrepo (Colombia) suggested that the beginning of his
proposal be changed to read as follows: "is necessary in view of
Although the new Colombian amendment made the proposal
less objectionable, Mr. Coombs (Australia) was still unable to
accept its with enthusiasim.
Mr. WUNZ-KING (China) felt that the new Colombian amendment - 2 -
made the proposal more acceptable and as a further concession suggested
that the words "generally recognized" be inserted before the phrase
"low standard of living".
Mr. ROYER (France) expressed the view that the Colombian
proposal was covered by the fourth criterion/and by the terms of Article
18.
Mr. WILCOX (United States) said that the Colombian proposal
was not concerned with economic development but with the traditional
agricultural field and that if it were to be adopted it would destroy
the justification for the provisions of Article 13 and of Chapter III as
a whole.
adoption of the
Mr. FERRERO (Peru) considered that the/Colombian proposal
would have a harmful affect on primary producing countries and might
prove to be more dangerous than Article 20 (2).
xmaÈz Paragraph 2 (c) of that Article
contained many more safeguards than the Colombian proposal and yet his
'elegation continued to oppose Article 20.
The problem raised by the representative of Colombia needed
to be solhed but le agreed with the representative of France that that
(bi
solution lay in the provisions of Arti4l/(13 (.) Fiv) and Article 18.
lr. LLEREPORESTRIQo (Colombia) could not agree that the
Colombian case was covered by the terms of Article 18. He accepted the
neje Uion of his proposal, but reserved his vote and asked that the
statement which he had made at yesterday's meeting be transmitted to the
Conference.
1AIrLE 13 (4)_rs (b) (iv)
The meeting accepted the Chilean amendments to retain
the words "or agriculture" and "relative".
Mr. NULLER (Chile) drew attention to the proviso which he
suggested should be added to sub-pat agraphs (i)to (iv) inclusive.
1r. WILCOX (United States) was in general agreement with the
Chilean amendment but suggested that"ahe words primary commodity" - 3 -
be inserted after the word "exports".
Mr. MIULLER (Chile) agreed that the United States suggestion
improved his amendment.
Mr. ROYER (France) felt that the provise was perhaps too
broad in its implications and pointed out that the Charter
envisaged only serious harmful effects. The amendment
might meet the views of the Colombian representative if it applied
to the first three sub-paragraphs only.
Mr. LLERAS RESTREPO (Colombia) said that the present wording
of the amendment did not establish a relationship between "the injury"
substitution
and the "Member", and therefore he proposed the substitution of the words
"the manufacture of products" for the word exports".
Mr. NOVOA (Mexico) suggested the substitution of the word
"for" for "which has" and the words "a commodity and" for "primary
commodities".
Mr. WILCOX (United States) drew the attention of the
Colombian and Mexican representatives to the fact that it was not the
"commodity" but "measure" which would have the harmful effect. He
___ suggested the deletion of the
phrase "or grant release of".
MR. 0O01BSustralia) suggested the deletion of the
phrase "emmodities the manufacture of primary coninoditie".
Mr. lOVOA (Nexico) agreed to accept the original United
States suggestion te insert the words "of a primary commodity" after
the word "exports".
là' LLERAS RESTREPO was unable to accept the United States
suggestion.
The meeting agreed to postpone discussion of this question
until it had written texts of the various amendments.
.oL meeting rose at 12:15 A.M. SECRET 27. Feb.
MEETING OF THE CO-ORDINATING COMMITTEE
Held on the 27th of February, 1948.
Chairman: Mr. SUETENS (Belgium)
Alternative B (ii)
Mr. LLERAS-RESTREPO (Colombia) proposed the deletion of
the word "this" and the deletion of the brackets enclosing the
figures (i) (ii) and iii.
On the suggestion of the representative of MEXICO, it was
agreed to accept the Colombian proposal subject to any further
comment which the Brazilian delegation might wish to make.
The French amendment to delete the brackets enclosing the
words "cause serious prejudice to" was accepted by the meeting.
AlternativesA and B,
Mr. MULLER (Chile) did not feel that compensation should
be obligatory concerning non-negotiated commitments. The under-
developed countries were in a disadvantageous situation and to
ensure compensation n for the injury of the trade of a highly
developed country would perpetuate the disparity between the
two groups of countries.
The representatives of LENA<ON, PERU anINDIAIA strongly
supported the remarks of the representative of Chile.
Mr. HOLMES (United Kingdom) considered that some provision
along the lines of either Alternative A or B was needed, In
connection with the remarks of the Chilean representative he
drew attention to the fact that the reference to compensation
with respect to negotiated commitments referred to anti-
forstalling measures only, It should be easy to accept Alter-
native B to the effect that the applicant Member would apply
protective measures in such a way as to avoid injyuuing the
economic interests of other Members. - 2 -
The CHAIRMAN, speaking as a representative of BELGIUM,
pointed out that the process of economic development would begin
with the establishment of iron and steel, glass and textile
industries, all of which represented the major exports of his
country. Nevertheless, he recognized that economic development
would contribute to the welfare of the world as a whole and
thus also to Belgium.
He drew the Chilian representative's attention to the fact
that the question of compensation had been accepted in connection
with Article 15.. What was suggested in connection with Article
13 was infinitely less strong. His delegation was prepared
to accept Alternative B because it would allow for the possibility
of adjustment which should be made xe in the Charter,
Mr.ALAERUS4 RESTREPO (Colombia) was unable to accept
Alternative A but supported Alternatiae B s he believed that
any protective measure which was applied should avoid causing
unnecessary injury.
Mr. PHILIP (France) could not accept the principle of the
application of exceptional measures wi/houtJthe ifea or compensa-
tion. The under-developed countries were asking for specific
rights and the more industrialized countries were demanding
that the same safeguards be a pplied to them as were contained
in Article 21.
OVOA (Mexico)4 -3-
Mr. NOVOA (Mexico) recalled that the Chapter on Economic
Development had only been inserted in the Charter at Geneva. It
had been felt that the provisions of Chapter IV would affect countries
differently depending on their economic development. That disparity
having been recognized, Article 13, was offered to the underdeveloped
countries as an aid to their economic development. The protective
measures referred to in the proviso pre-supposed a certain amount of
damage to other countries which was to be tolerated as benefiting
the underdeveloped countries.
Mr. MULLER (Chile) said that the underdeveloped countries
wanted the right, within the framework of the Charter, to take cer-
tain of the steps which had been taken by other countries when they
had industrialized themselves in an unrestricted age. The idea of
compensation contained in Article 15 referred to preferential system
which were opposed to the fundamental principles of the Charter.in
Articles 20 and 21, the underdeveloped countries had accepted wide
limitations. In Article 13 they would not be prepared to accept
the principle that t they would have to pay for their future developmens'
when other countries had not denc so.
Mr. PHILIP (France) pointed out that Alternative B made no
mention of automatic compensation but set forth the idea that countries
should osseoe the measure which would be best for their own purposes
dnc which would cause the least amount of harm to other countries.
Mr.ALIKJK (India) drew attention to the fact that the damage
caused by the economic development of underdeveloped countries would
be temporary and that in the interest of the economic welfare of the
world as a whole, the highly industrialized countries should be prepared
to suffer a certain amount of temporary damage. He could accept
Alternative B on the understanding that there would be no compensation
in respect of the amnt t of damage which would obviously result
from the application of the protective measures. -4-
Mr. WILCOX (United States of America) did not see how the
meeting could accept the first proviso which had been introduced
soley for producers of primary commodities, without
also accepting the very much milder Alternative B. The representatives
of India, Lebanon, Colombia and France already had indicated their
willingness to accept Alternative B and he, therefore, proposed
that it be approved without further discussion.
Mr. WUNZ-KING (China) agreed that Alternative B represented
a reasonable compromise, but in case there was no general acceptance
of it, he suggested that the following words be added to Article 13 (1)
Mr. HAIKM (Lebanon) did not object to the idea of Alternative B
but felt that its adoption was to a certain extent unnecessary in view
of the second sentence of Article 13 (1). The language of the proposal
would also have to be changed, As it only would be possible to know
what damage had been caused after the particular measures had been
applied.
Mr. MULLER (Chile) supported the remarks of the Lebanese repre-
sentative , Alternative B as it now read would allow a subjective
judgement of how much damage had been caused by a particular measure,
did
Mr. WILCOX (United States of America) ±i not agreh' that
Article 13 (1) covered the principle contained in Alrtanétive B because
it was only a recognition paragraph and made no referenceota a commitment.
In rlpiy to the representative of Chile, MrPHMIILIP (France)
represented
pointed out that Alternative B an obligation on the part of Members
to apply the measures which had been authorized by the Organization
in such a way as to avoiinju4uring other Members.
MR. LIICOX (United States of America) also pointed out that
Alternative B could not be regarded as a criterion and to make that
point clear suggested that thw mord "provid"d: should be deleted. -5-
To meet the views of the Chilean representative, Mr. WUN-KING
(CHina) suggested that Alternative B read as follows: "Provided that
the applicant Member in administering any measure under this sub-paragraph
shall take into consideration the desirability that such measures shall
be administered in such a way as to avoid unnecessary damage......."
The meeting adopted Alteriative B with the deletion of the
word "provided".
INTERPRETATIVE NOTE CONCERNING THE WORD "PROCESSING"
At the suggestion of the representative of Peru, it was agreed
that the Executive Secretary would redraft the note alongthe lines
suggested by the United States representative at yesterday's meeting.
Mr. NOVOA (Mexico) requested time to consider paragraph (i)
of Alternative B.
ARTICLE 13 (4) (c)
MR. WILCOX (United States of America) drew attention to the
United States redraft of the Brusilian proposal concerning this paragraph.
After a short discussion, it was adopted by the meeting.
13
ARTICLE (4) (d)
With the deletion of the word "relative" the paragraph was
adopted by the meeting.
ARTICLE 13 (5)
With the deletion of the brackets enclosing the words "all branches
of agriculture", (paragraph was adopted by the meeting.
ARTICLE 13 (6)
On the suggestion of the representative of Australia, the word
"secrecy" was substituted for "confidence" in this paragraph. -6- ARTICLE 13 (7)
Mr. MULLER (Chile) said that the purpose of his amendment
was to state that there could be a time-limit with respect to the
intervention of the Organization.
It was agreed that that was purely a question of drafting.
It was agreed that the United States amendment consequential
upon the amendment to paragrapha4 (c) (i) and (ii) was also a question
of drafting. Second part - Anna Monson
Co-ordinating Committee -
27 February 1948.
Artcile 13 - Paragraph 7
United Kingdom amendment.
Mr. HOLMES (United Kingdom) proposed the deletion of the
words "and agreement" in the penultimate sentence. The
Geneva text did not provide for the over-all time limit
for the Organization. There was doubt as to the wisdom of
introducing a time limit as it might defeat the objectives
for which it was set. In certain cases it would be found,
and it was recognized in the text that the time limit might
be unduly short, and might have to be exceeded. There was
provision in the document under discussion if unforeseen
difficulties arose, for an extension of the period after
consultation and agreement with the applicant member. The
addition of the words "and agreement" were nonsensical.
It was true that it provided the applicant with the means
of vetoing an extension of the time limit, but the wording
did not represent the intention. What could be done in
circumstances in which the applicant Member was in a
position to veto an extension which the Organization might
need in order to do its work fairly and accurately?
It was agreed that the words "and agreement" in the
penultimate sentence of paragraph 7 should be deleted.
Mr. WILCOX (United States) drew attention to a con-
sequential change arising out of the approval of the Brazilian
proposal. The fact that the words "or application" were to
be inserted after "such statement" in the fifth line
from the bottom of paragraph 7, Article 13, should be re-
ferred to the Central Drafting Committee.
Mr. NOVOA (Mexico) withdrew his reservation concerning
proviso (i) under Alternative B, at the top of page 5 of
document 5350. - 2 -
Mr. WILCOX (United States) stated that his acceptance
of the new draft of Article 13 was dependent upon a satis-
factory settlement of the other related issues which were
pending before the Co-ordinating Committee.
Mr. WUNSZ-KING (China) drew attention to the footnote
on page 6 of document 5350 which stated that the text pro-
posed by the Chinese delegation should appear in the Report.
In the Report made by the Chairman of Sub-Committee C of
Committee III on Articles 13 and 14, there was a note "B"
which embodied exactly the same wording as was set forth in
the footnote under reference. It had been unanimously
agreed that the text should be included in Article 13 as
an interpretative note, and he would like the Co-ordinating
Committee's assurance that this would be done.
Mr. NOVOA (Mexico) as a Member of the Sub-Committee
and working groups which had considered Articles 13 and 14,
confirmed the remarks of Mr. Wunsz-King (China).
Mr. HOLMES (United Kingdom) presumed that in consider-
ing the results of the deliberations of the working groups,
footnotes reservations, etc., would be included in the
Reports to the Committee. The United Kingdom had a note
which referred to the words "materially affected" in para-
graph 3(b) of Article 13 which should be included in the
report of the working group to Committee II.
Mr. WILCOX (United States) referred to the original
document of Sub-Committee C of Committee II which indicated
that the Chinese note would be included as a section of the
Draft Report of the Committee and not as an interpretative
note. Although the Heads of Delegations were against encumber-
ing the text with interpretative notes, he would not object
if Mr. Wunsz-King was intent on its inclusion in the text
of the Chinese note.
Mr. WUNSZ-KING (China) pointed out that he had written - 3 -
to Mr. Wilcox on February 26 asking that the note should
be inserted in Article 13 as an interpretative note.
Mr. COOMBS (Australia) said that if Mr. Wunsz-King's
request were complied with, his delegation and others would
have to reconsider a number of cases where they had set
interpretations of the text in matters of great interest
to them, but in the light of the point raised by the
General Committee, had agreed to that they should appear
only in reports of the Sub-Committee. It had been under-
stood that if questions were raised in the future, reference
could be made to the records which would be accepted as
significant in the interpretation of the text. Therefore
an interpretative note should be added to the text itself
only in the most exceptional circumstances.
Mr. HOLMES (United Kingdom) assured Mr. Wunsz-King that
a paper on the subject of interpretative notes had been
circulated by the Executive Secretaty and he had asked for
it to be put on the agenda of the General Committee.
The CHAIRMAN pointed out that, as it was not a question
of principle the Co-ordinating Committee could not deal with it.
Mr. MULLER (Chile) brought up the question of prior
approval. The Latin American countries generally believed
that it was unnecessary. Approval was "automatic" when it
was clear that the Organization gave the approval as a matter
of fact, and automatically Accepting that that was the case,
the argument could be used exactly with the same weight
to words applying the method without the prior approval of
the Organization but communicating the action to the Orga-
nization, and having the statement of the Organization, only,
of course, in the case where the measure did not fall within
the objective criteria. He proposed that On measures (i)
and (ii) priro approval would not be necessary, but in
criteria (iii) and (iv) which were not entirely objective - 4 - and which had to be judged by the Organiation, prior ap-
proval was essential.
Mr. COOMBS (Australia) said there had been misunderstanding
of his previous remarks regarding the approach to the pro-
blems of Article 13. There were two questions: (1) Whether
prior approval should be required, or whether the countries
concerned should be permitted to take independent action;
(2) Whether prior approval should be automatic when certain
criteria were fulfilled, or whether approval should be given
after a pro and con consideration. As to the first, the im-
portant consideration was whether the decision could be
based on matters of fact and not of judgement. He had said
that if the decision were to be based on a question of fact,
then it did not matter. whether the prior approval of the
Organization were called for or not, because Members should
be trusted not to misrepresent the facts. If the decision
were based solely on the question of fact - determinably
and validly - the only chance for wrong action being taken
would be through misrepresentation of those facts. Therefore
decision as to whether prior approval should be required
was merely technical, and not a question of policy. Where
judgement was involved it was desirable to require prior
approval; it would be in the interests of everybody. A de-
cision taken on the judgement of a member might be contrary
to that of the Organization, and it might cause the Member
embarrassement and hardhip to retrogress.
As to the question of whether prior approval should be
automatic or based on the "pros" and "cons", the criteria
should be capable of being answered "tyes" or "no". There
should be considerations which might tend towards a favour-
able decision, but they did not need to be the only ones.
None of the criteria in the text was completely free
from any element of judgement. There were criteria which
could be answered "yes" or "no", but there could be dispute - 5 -
about questions arising in connection even with the last
part ot paragraph 4(b)(i). Criteria(ii) and (iii) while
capable of being answered, involved some judgement upon the
economic circumstances underlying the industry. In the
interests of Members it would be well to include a provision
in Article 13 for obtaining the approval of the Organization
before action were taken in accordance with the Article. - 6 - Mr. MULLER (Chile) considered criteria (i) and (ii) to be perfectly
objective. The second part of (1) reading "...which was protected during
that period of its development by abnormal conditions arising out of the
war" had always been considered to be a fact, and was not a question
of judgement. (ii) was also a question of fact. There could be no dis-
cussion about "the external sales of such commodity have been materially
reduced as a result of new or increased restrictions imposed abroad".
It was true that no Member would apply criteria (i) or (ii) running
the risk ofmaking investments or starting production if there were a
chance of the Organization objecting. Prior approval should not be
either
necessary in/cases (i) or (ii).
Mr. WILCOX (United States of America) supported by Mr. HOLMES
(United Kingdom) said it had been understood that in redrafting Article 13
the Article would be based upon the principle of prior approval and that
prior approval should be automatic. The proposal introduced by Mr. MULLER
(Chile) was completely unacceptable, and if adopted the United States would
withdraw its support from the entire article, and from the group of sugges-
tions that had been submitted for the settlement of outstanding issues,
Mr. MULLER (Chile) believed that from the political angle, in
practice there was no difference between prior and subsequent approval of
the Organization, but countries should be afforded the opportunity to
defend their point of view and explain their opposition to prior approval
in cases where protective measures were involved.
Mr. FERRERA (Peru) proposed that the meeting should be adjourned to
give the Latin American countries time to discuss the matter further.
Mr. NOVOA (Mexico) said it was considered that free action of the
Member nations vis a vis the provisions which were called automatic criteria, -7-
in cases where there was no prior approval of the Organization,
could give rise to countless abuses. What, therefore, would be the right
of Members which, having accepted the prior approval and made application
in accordance with paragraph 4 of Article 13, and within the criteria
if
which were called automatic,/the Organization failed to give its approval?
If a Member were not given freedom to take measures arising under
Criteria (i) and (ii), then the Member would be placed in an unfair
situation. What would be the position of a Member, which having
asked for authorization, did not receive an answer from the Organization?
Mr. HAKIM (Lebanon) supported by Mr. FERRERA (Colombia)and Mr. WUNSZ-KING
(China) accepted the compromise of automatic prior approval. The
difference between the two procedures would simply be a delay of 90 days.
The CHAIRMAN pointed out that it was a question of form rather
than substance, and that since the objective criteria existed, there
was nothing to fear from resort to the Organization before application
of the measures.
Mr. COOMBS (Australia) said that paragraph 7 gave a precise answer
to Mr. NOVOA (Mexico) in requiring that the Organization should set a
date by which it would inform the Member - ninety days after presenta-
tion of the case. A Member not receiving a reply within that time, or
within the requested single extension of that time (or within the re-
quested single extension of that time) ten4i<est4S-I +-tioee) could assume that the approval
had been given.
Mr. PHILIF(Francti pointed oferedat Ar'icle 15 reftJeéd to all
cases. The same period of time was required whether reference was made
to automatic approval or where a decision was necessary.
fr. NOVOI (Mexico) saidithat at least in Spanlsh the meaning
of the word. automatici did not suggest a delay of ninety days. -8-
The CHAIRMAN pointed out that there was nothing in paragraph 7
to suggest that the Organization should wait for ninety days before
giving its approval where criteria (i) and (ii) were applied. It
would feel a moral obligation to answer immediately in order to make
it automatic.
Mr. WILCOX (United States of America) and Mr. HOLMES (United
Kingdom) supported the retention of nine-day limit,
Mr. COOMBS(Australia) suggested that the obligation should be
placed upon the Organization to set a date as early as possible, and
that the text should be amended to reads "This date shall be the
earliest practicable,but not more than ninety days..."
It was agreed that the Australian amendment to paragraph 7
should be accepted.
ARTICLE 15.
Mr. MULLER (Chile) made an informal statement regarding the
proposed amendments by the latin American countries to the United
States compromise text of Article 15, with the understanding that
the full text should be circumulated in ample time for discussion
before the meeting of the Co-ordinating Committee on the following
day.
The meeting rose at 7:50 p.m. Saturday 9:30 - 11:00 p.m.
SECRET 28 February 1948
SUMMARY RECORD OF COORDINATING COMMITTEE MEETINGTIThG
Held on Saturday, 28 February 1948, 9:30 p.m.
ARTICLE 15 NTINUATION OF CONSIDERATION:D:TIt
Pararraph 3 (d)
1r. 1ULLER (Chile) said that the present draft of paragraph 3 (d)
was subject to the criteria of 3 (b); his amendment proposed that, until
a country had developed products, compensation be given on products which
might not fall within the scope of 3 (b). However, it was also provided
that such advantahes sioeld bc progressively eliminated and replaced as soon
as possible by preferences conforming to thestermn of 3 (b).
The balance od traie was against Chile in her relations between
Argentina and Peru. Some new industries should be developed to restore
equilibrium; in the meantime larger countwies uere hurt becahse tne balance
was paid in dollars which otherwise might be used for other imports. If
the compensation could be made only within the definition of 3 (b), it
would be impossible to obtain preferencem fron tnose reighbouring countries.
OOMBC0O13S (Australia) asked whether Chile would be able to
compensate by tariff reductions on an m-f-n basis or by preferences alone.
If, for instance, Chile bought wheat frgm ArGentina, in order to restore
a balance of trade disequilibrium, Argentina should give preference, say,
for Chile's boot and shoe industry. In terms of the draft, that should
be compensated by a preference in an Argentine newly established industry;
but if Argentina had no newly established industhy, tne compensation might
be accomplished by a reduction in tariff om an r-f-n basiOn CO the
other hand, it would be much more difficult to justify a preference on an
established industry, i.e., wheat. If the phrase "tariff advantage"
were on an m-f-n basis, the proposal was worthy of support.
Mr. ROYER (France) said the phrase should read "preferential
tariff advantage." - 2 -
Mr. EVANS (United States) replied that if Mr. Royer
was correct, if in fact the concession did apply to reciprocal
preference advantage, the attitude of the under-developed countries
still was puzzling. If an under-developed country wished to
enter into a preferential arrangement for the advantage of a new
industry, it had a choice under Article 15; reciprocal preference
advantages which complied with the criteria. It was difficult to
imagine any under-developed country not having a good many
industries or agricultures not complying with 3 (b). But if
an exception were necessary, an m-f-n concession was always permissable;
and if neither were applicable, the Organization under Article 15
could approve by a two-thirds vote a concession not complying with
the criteria.
to smaller countries
The amendment was a distinct disadvantage/in that larger
countries could use its provisions to their disadvantage. The
present draft of Article 15 would make it difficult for a larger
country to exert economic pressure on others, but the proposal of
Mr. Muller would not prevent such action. From the United States
point of view, if semi-automatic procedure were to be adopted, there
should be no wide open escape from the basic principle of Article 15.
There was no objective assurance in the amendment as to the length
of time that the preference which did not conform would remain in
force, there was no responsibility placed upon the Organization to
terminate it, the only responsibility being for a Member to interest
"as soon as possible".
Mr. MULLER said that Mr. Evans remarks and the doubts
expressed by Mr. Coombs were to be considered. In accordance - 3 -
with the present draft of Article 15, would it be possible for
Chile to obtain a preference from a neighbour in order to
develop an export without having to give compensation in other
products, which would cause the imbalance to continue.
Mr. COOMBS (Australia) replied there was nothing
to prevent such an agreement. The Article did not require
compensation and there was nothing to prevent compensation in
the form of an m-f-n tariff reduction, even though the benefit
might go entirely to the neighbour concerned,
Mr. OLDINI (Chile) satated that Mr. Muller had
mentioned one of the various aspects of the problem; the
effort to solve the problem of balance of payments difficulties
and the application of adequate technical measures which would
be in conformity with procedures of preferential arrangements.
It was not realistic to maintain, even though the
Charter permitted, that one-sided preference arrangements could
be accomplished, The problem could not be solved by compen-
sation on an m-f-n basis because a country would not feel it
had granted special privilege if it were granted also to third
parties. - 4 - In most instances products on which Chile could grant
preferences under (b) were competitive with her own industry.
Economic co-ordination on an international level required a
long period of transition and during that time some exception
to 3(b) was necessary.
Any re-draft of the amendment to meet Mr. Evan's objections
would be satisfactory, as to limit of time or intervention of
the Organization.
Mr. COOMBS (Australia) said that experience with m-f-n
preferences since the negotiations at Geneva gave reason to
believe that Chile and Argentina could work out a reasonable
arrangement for m-f-n tariff reductions. It would be worth-
while for the Latin American countries to consider in concrete
form the type of preferences they wished to obtain and the
compensatory m-f-n reductions required. If compensation
were not on an m-f-n basis and the criteria were not governed
by sub-paragraph (b), the industry which did not fall within
that criteria was almost inevitably an established primary
commodity, which would be dangerous and detrimental to the
interests of all other under-developed countries.
Mr. PHILIP (France) agreed and added that the solution
might be in Article 42.
Mr. OLDINI ( (Chile) replied that in his opinion Articl42+2
did not cover the case. There was a great difference between
established preferential arrangements and his case.
The CHAIRMAN said that in the absence of support of the
amendment by other delegations, the majority favoured the
Australian text.
Mr. FERRORP (Peru) agreed with Mr. Oldini and added that
because of the limited exports of under-developed countries,
Mr. Coom:st solution was difficult to put into practice. He
would abstain from a decision.
Nr. MULLER (Chile) although aware of the majority decision, - 5 -
could not accept it.
Mr. ADARKAR (India) felt that Mr. Coombs was right and
that the Latin American amendment would be detrimental to under-
developed countries. He was thenfore opposed to it.
Mr. HAKIM (Lebanon) abstained and Mr. (China) was
indifferent since China had very little opportunity to arrange
preferential agreements.
The CHAIRMAN pointed out that it was rather difficult to
abstain in the decisions of this type of committee, but even
with abstentions there was a majority in favour of Dr. Coombs'
proposal. He would recommend that Mr. Muller consider the
alternative formula.
Paragraph 3 (e) (i)
Mr. MULLER (Chile) explained that his amendment was
proposed so as not to void the benefits of automatic approval.
Mr. Evans (United States) said that Article 13 provided
for departure from negotiation obligations, and he was opposed
to any change in either direction. If the paragraph were
amended in one direction there was danger that Article 15
would be used as a method of obtaining release from contractual
obligations without the protection of Article 13. If the
reverse were true, an amendment would be of no interest to under-
developed countries.
Mr. COOMBS (Australia) said that considering the preamble
of paragraph 3, he doubted that sub-paragraph (e) was drafted
so as to make it a requirement; sub-paragraph (e)(i) should be
re-drafted: "(i) In the case of a duty already bound as a
result of negotiations under Article 17 in accordance with the
provisions of Article 13 paragraph 2(a)."
Mr. ROYER (France) said the Chilean proposal departed sub-
stantially from the procedure of Article 13 and it would be
difficult to reach agreement on its addition to the text, - 6 - Mr. EVANS (United States) and Mr. ADARKAR (India) favoured
Mr. Coombs' proposal.
Mr. COOMBS (Australia) felt sub-paragraphs (i) a to (v)
inclusive might be re-drafted since the procedures of Article
13 were to be relied upon.
Mr. EVANS (United States) agreed. The text was a basis
for discussing the several points but after the substance had
been agreed upon, the drafting could be improved.
Mr. OLDINI (CHile) could not agree. If the amendment were
not accepted, Chile would reserve its position, but he asked
that the present text be maintained. In any event the sub-
paragraphs should be discussed individually. SECRET
CO-ORDINATING COMMITTEE MEETING HELD ON 28TH FEBRUARY, 1948, AT at 9:30 P.M.
Mr. LIEU (China) pointed out that in Article 13 the reference
to compensation applied only to anti-forestalling measures.
Mr. WILCOX (United States) warmly supported the Australian
proposal.
Mr. ROYER (France) said that the original text did make clear
that only in exceptional cases would a bound tariff on which a preference
had been granted be increased.
Mr. GARCIA OLDINI (Chile) that the sane
treatment should not be applied to bound tariffs as to those which were
not bound that an implication to this effect was contained in the
Australian proposal.
Mr. EVANS (United States) said that if the Australian proposal
replaced the whole of paragraph (e) it would not apply to bound tariffs,
for they would be covered in Article 13.
Mr. ADARKAR (India) wondered if Article 13 (2) (a) could be
applied if bound rates were covered in that Article.
Mr. HAKIM (Lebanon) expressed the view that Article 13 (2) (a)
could not be used with respect to the increase of a bound duty because that
paragraph referred to "in the Sxk interest of its development".
Mr. EVANS (United States) agreed with the representative of
Lebanon that some cross reference to Article 13 would be needed,
It was agreed to postpone final consideration of the Australian
proposal until the following meeting.
Latin American Amendment to paragraph 3 (g)
MULLER iLLmILCHElE) felt that a time-limit was necessary
in connection with preferences granted for reconstruction.
Mr. ROYER (France) said that he could accept the amendment
if it applied both to reconstruction and development.
MO. CGOMBS (Australia) accepted the substance of the Chilean
amendment to the effect that the duration of a preferential agreement should - 2 -
be related to the need for it. Ten years was not an unreasonable length
of time for a preferential agreement for purposes of reconstruction, but
the renewal of that agreement should be subject to the approval of the
Organization.
Mr. PHILIP (France) preferred the original wording of paragraph (g).
Mr. HOOMES (United Kingdom) agreed that ten years was a reasonable
period of time for a preferential agreement for the purposes of reconstruction,
provided that that agreement could be renewed with the approval of the
Organization. His delegation had submitted an amendment to paragraph (g)
which would make clear that with respect to the renewal of a preferential
agreement, the Organization might require negotiations under the terms of
Article 17.
Mr. GARCIA OLDINI (Chile) could not accept the implication that
ten years would be sufficient time ixÈO to achieve the economic develop-
ment of a country. To make for justice, new preferences should be given
the same treatment as existing preferences.
hLM HOIIES (United Kingdom) drew the Chilean representative's
attention to the fact that his country and others had contributed greatly
to the Charter by agreeing to the gradual elimination of existing preferences.
The representatives of France, Lebanon and India supported
paragraph (g) as it now read.
Or. IZMOA (hexico) proposed the following re-wording of
the paragraph:
"3 (g). The agreement contains provisions for its
termination accgrdinJ to its nature and within a
period necessary for its purpose but in any case not
more than ten years, subject to renewal for periods not
greater than five years each with the vaproa.l of the
Organization."
The first part of the proposal referred to whether the preferentiae agr e-
ment was for the purpose of economic development or reconstruction. The
second idea contained in the proposal referred to the lime-iimit which
would apply in connection with reconstruction. - 3 -
Mr. WILCOX (United States) suggested that the Mexican proposal should read
as follows:
".....according to its purposes and in a period necessary for
carrying out those purposes but in any case......."
Mr. COOMBS (Australia) suggested that the words "with the
approval of the Organization" should be after the word "renewal2.
The meeting accepted the Mexican proposal subject to drafting
changes.
Latin American amendment to paragraph 4 (a)
Mr. COOMBS (Australia) preferred the wording of the provise
in Article 13 ( ) (5) (b) of the Geneva text.
The meeting agreed that this question was a drafting
matter.
Latin American amendment to paragraph 4 (b)
Mr. EVANS (United States) said/his delegation had gone a long
way to meet the views of the Latin American representatives in this matter.
There would be cases where the only feasible solution would be the modification
of the preferential agreement.
Mr. HAKIM (Lebanon) felt that the last part of the Latin
American amendment needed clarification. Could the provisions of Chapter
VIII be applied in this connection or not?
Mr. GARCIA OLDINI (Chile) said that the intention of the
amendment was that fair compensation would be the general rule, but that
in rare cases the agreement would have to be modified.
MR. COOMBS (Australia) suggested the deletion of the word
"would" in the underlined passage.
Mr. EVANS (United States) did not object to the presumption
that compensation would be the appropriate solution but felt that the
Organisation decision should be left to the Organization. He suggested
the substitution of "desirable" for "possible" in the underlined passage.
Mr. MULLER (Chile) expressed the view that if the modification
of a preferential agreement was given equal weight with the idea of - 4 -
compensation, preferences would cease to have any useful. effect.
Mr. COOMBS (Australia) suggested adding "or reasonable" after
"possible".
Mr. PHILLIP (France) suggested the phrase "just compensation
or failing this modify the agreement".
To meet the views of the Lebanon representative,
Mr. ROYER (France) suggested that a phrase be added to make
clear that the provisions of Chapter VIII should only apply a posteriori.
The meeting paragraph 4 (b) "_
c draftingS- 1
Latin American Amendmept to Daragraph 5
Mr. GARCIA OLDINI (Chile) drew attention to the fact that the
inclusion of a reference to sub-paragraph (a) was a typographical error.
ri. EVANS (United States) asked if the proposal for a XDC
simple
OE majority vote was a Latin American or simnly a Chil.-, proposal?
Mr. PHILIP (France) opposed the proposal for a simple
majority vote.
C2r. MULLED while) said that the voting question was subject
to,the final terms of Article 15. Should permission to apply preferences
ted,very liited, the Latin American delegations would attempt tozk
munder the terns of paragraph 5, without a two-thirds majority
vote.
2r. HOUIES WUnited Kingdom) was notformityhat conormity
to the conditions set forth in paragraph 3 was necessary. Any acceptance
on his part of the first part of paragraph 5 would be subject to the
decisihn taken on t1e United Kingdom amendment to the first of the
automatic criteria,
ProDosal by the Uniteg States Deleeation concerning procedure
After an exwhange of viess the meeting agreed that the Executive
Secretary would prepare the documentation for the Heads of Delegations
which then would be discussOd by the Co-Crdinating Committte at its mee'-
ings at 9:00 A.M..and 2:30 P:M4 on Monday, March lst. - 5 - In connection with paragraph, 3 (5) Mr. MULLER (Chile) said that
even the reservations there referred to might not be able to be withdrawn
until Articles 13 and 15 had been definitely decided.
Mr. WILCOX (United States) pointed out that if the Heads of
Delegations were to give their consent to the results of the work of the
Co-Ordinating Committee, they would have to know on what basis they were
doing it.
The meeting rose at 12:45 A.M. Saturday - 4 - 5:30 P.M.
SECRET 28 February 1948
SUMMARY RECORD OF MEETING OF CO-ORDINATING COMMITTEE
Held on Saturday, 28 February 1948, at 4:00 p.m.
ARTICLE 13 AS REDRAFTED ON 27 FEBRUARY 1948 (White Paper 5390)
Mr. FERRERO (Peru) and Mr. ADARKAR (India) commented on the foot-
note on page 3, and Mr. HOLMES (United Kingdom) mentioned the footnote on
page 5. The EXECUTIVE SECRETARY said the notes would not be part of the
text, but together with other relevant material, would be submitted to the
Working Party for their final drafting.
Article 13 was accepted.
ARTICLE 15 (White Papers 5215 and 5413)
Mr. WILCOX (United States) reviewed his proposal for an agreement
for settlement of outstanding issues relating to economic development,
presented to the Co-Ordinating Committee on Tuesday, 24 February: (1) the
Committee should accept the re-drafted Article 15, as worked out in
conference with the Committee and Delegations and subject to certain revisions
noted in square brackets. (2) the Committee should accept the substance of
Article 15 as presented; it was impossible for the United States to go
beyond the substance in the draft; (3) the Committee should choose one of
the three Alternatives regarding the Tariff Committee and the Economic
Development Committee; (4) it should accept the Sub-Committee's draft of
Article 75; and (5) the consequential amendments and reservations should be
withdrawn.
Mr. Wilcox stated he had consulted widely with other Delegations and
a formula had been worked out which would command the support of a large
majority. In so doing, he had surrendered the fundamental position that the
United States had maintained for months, and had gone as far as possible in
making the maximum concession, with the desire of reaching a middle ground.
However, the paper presented by Mr. Muller proposing amendments to
the new Article 15, represented the extreme position that the Delegation of
Chile had taken for the last several months; there seemed to be no desire to
achieve a compromise, and discussion of it would place the Conference back - 2 -
several weeks. The redrafted Article 15 represented the final position
of the United States in substance and Mr. Wilcox said he was not prepared
to discuss or consider in detail any of the amendments presented by Mr.
Muller.
Mr. MULLER (Chile) replied that the amendments were not proposed
by the Delegation of Chile, but by seventeen Latin American countries.
The redrafted Article 15 was more or less based on discussions in the
Working Party and the compromises were not reached by a cross-section of
the Conference, representing the majority. He could not accept the
ultimatim of Mr. Wilcox.
Mr. WILCOX (United States) said that if the Committee wanted to
reach a general compromise, there was no point in receding to the extreme
position taken weeks ago by one or two Delegations. If a general
compromise was not desired, the Committee should refer the matter to the
Heads of Delegations, where the opinion of the majority would be acceptable
to his Delegation.
Mr. HOLMES (United Kingdom) stated that the new Article 15
contained one feature unacceptable to his Delegation; paragraphs 3 and
4 (a) provided for the approval of the Organization for preferential
arrangements upon the fulfillment of certain stated conditions and
paragraph 5 required special prior approval of a two-thirds majority. The
question of the two-thirds majority was under consideration, but the
point was that the procedure under paragraph 5 was more difficult than
under paragraphs 3 and 4 (a) and the criteria of the latter) not alternative,
required that the territory of each party should be contiguous or of the
same economic region. That was in direct contrast to the Geney a draft which
made no condition regarding geographic location for preferential develop-
ment arrangements.
The United Kingdom did not believe there was special merit in
geographic proximity and the condition would make it impossible for the
United Kingdom to take advantage of the so-called automatic approval
under paragraphs 3 and 4 (a). The conditions of paragraph 5 could lead -3-
to a waiver in favour of a particular member under Article 74, or to a
change in the text under Article 95.
The provision should be redrafted to include special traditional
ties of an economic character which were far more important and relevant
to the purposes of the Charter than contiguity.
Against the background of willingness to accept the obligations
of Articles 16 and 17 as well as the concessions granted at Geneva (GATT), it
might be politically impossible for his Government to accept an Article
which gave other countries preferential privileges it could not itself use.
While the United Kingdom could not restore or increase its preferential
system, countries having recourse to Article 15 were free from the obligat-
ions to negotiate for the elimination of new preferences; his Delegation
had submitted an amendment to counter-act that disparity. After the initial
period of ten years, and unless the Organization directed otherwise, such
preferences should be negotiable.
In view of the obligations the United Kingdom was expected to
take elsewhere in the Charter, Article 15 would be carefully examined by
his Government and if the particular inequity of potential application was
not corrected, the ability of his Government to make common cause with others
might well be jeopardized.
Mr. MULLER (Chile) said the amendments to Article 15 presented
through him by the Latin American countries were justified because the
United States had not consulted that group regarding the proposed draft. If
the objective of the Co-Ordinating Committee to bring together the divergent
points of view could not be realized, it would be necessary to refer the
question back to the normal Conference procedure.
Mr. WILCOX (United States) emphasized that the draft of
Article 15 was in no way a United States Draft. The United States position
on the subject was expressed at the beginning of the conferences there should
be no new preferences anywhere under any circumstance. The draft was an
indication of the extent to which the United States could go to meet the
views of others. He had not said that the Latin American countries were
consulted regarding Article 15, but they were on Article 13. However, members
of his Delegation had discussed the problems with many all during the -4 -
Conference and they knew the majority view. The United States had capitulated
on many important points it had been defending for some months in an effort
to reach an agreement, but the amendments presented by Mr. Muller and the
statement by Mr. Holmes seemed to indicate that there was little disposition
to reach a general compromise.
Mr. PHILIP (France) said that Article 15 was far from the text the
United States wanted and only by constantly keeping the views of others before it
had she been able to reach the present compromise text. His delegation had
thought the Latin American group would make a similar effort and that their
amendments would be more of minor details, but it appeared that the basic
position had been maintained and further discussion would be neither useful nor
fruitful. Mr. Philip proposed that the Committee discuss the subject of the
Tariff and Economic Development Committees at this stage and allow the Latin
American group to reconsider their position.
Mr. FERRERO (Peru) thought it premature to say that discussion
would not be useful. The Committee had the obligation to have at least
one discussion to see whether the differences were in fact as great as
some believed.
As to the statement of Mr. Holmes, it should be remembered that
existing preferences were created freely with no limit of time and with
little consideration for the harmful effects they might have on other
countries. If Article 17 provided for their elimination, it also exacted
a price that the elimination should be mutually advantageous. Even
though the new preferences were not subject to Article 17, Article 15
provided for prior negotiation in paragraph 3 (e) and 4 (b) and (c)
implied most-favoured-nation treatment. Moreover, new preferences were
not to be established freely and without limitations, as old ones had
been, and they were limited in time.
The Conference had had to choose between three courses: (1)
to put an end to all existing preference, leaving to Article 16 the - 5 - universal application of most-favoured-nation treatment, and
fixed time of termination; (2) to apply the same criteria to all
preferences, old and new; and (3) to establish new preferences-
the latter was the one chosen in creating Article 15. The Latin
American group had made many concessions and even now Article 15
limited freedom of action to such an extent it was difficult to
envision its applicability in many cases.
Mr. HAKIM (Lebanon) and Mr. ADARKAR (India) supported
the procedure proposed by Mr. Philip.
Mr. COOMBS (Australia) agreed there were fundamental
issues which required further study, and felt that further con-
sideration of Article 15 would not be useless. Whatever, the
outcome, both points of view would have been clearly expressed.
After such discussion, time should be given to both extremes to
consider their proposals in the light of the discussion. - 6 - Mr. NOVOA (Mexico) supported Mr. Coomb's statement. An
adamant stand at this point would be lametable. The result of the
examination of Article 15 and the amendments might fulfill the task
before the Committee.
The CHAIRMAN quoted from the Summary Record of the meeting held
on Tuesday, 24 February, indicating that Mr. Wilcox' attitude had not
changed. However, without having tried to effect reconciliation, it
would not be wise to say there was no meeting ground. Agreement had
been reached on Article 13 because it was found that the Latin American
difficulties were not so real as had been thought. Perhaps the same
thing would be found true with Article 15.
Mr. PHILIP (France) said he had not suggested not dealing with
Article 15: he had thought postponing discussion would have been results.
The CHAIRMAN stated that the Economic Development Committee question
had still to be considered by the Latin American group.
Mr. WILCOX (United States) said that in an effort to reach a: satis-
factory compromise agreement, the United States had submitted a draft,
which did not represent its interested or desires in any way. The draft
had been rejected and he had failed completely. If the arguments were
to be presented from the original basis, the United States would not
start its discussions from the extreme position of the compromise draft.
He would, therefore, withdraw the paper 5215 and present a paper which
actually represented the United States view.
Mr. FERRERA (Peru) replied that with all respect for Mr. Wilcox
and the reasons he set forth, he wondered actually whether he was correct.
Article 13 had been agreed upon despite difficulties, and the same could
apply to Article 15. The Latin American group was not consulted regarding
the draft of Article 15, and it was only natural that they should present
some amendments. The possibility of reaching agreement could not be
known without knowing which amendments were unacceptable and what the
differences were between the two points of view. -7-
Mr. MULLER (Chile) agreed with Mr. Ferrera and expressed surprise
that opportunity to explain the amendments might not be given and that
the proposals were considered radical. A great deal of the United States
draft had been accepted and more might be. Moreover, the position was not
so extreme as at the beginning of the Conference.
Mr. WILCOX (United States) reiterated that the draft was not a United
States paper but a sub-committee draft which indicated the concessions
the United States was prepared to make although it had previously said
it could not go so far. His delegation had consulted widely with the
Latin American countries and knew that the interests of many would not be
served and that they would be deeply offended if the United States went
beyond the draft.
Mr. MULLER (Chile) said he could not judge of the reaction if he
reported to the Latin American group that Article 15 could not be discussed
and that the text was the last word of one country. An ultimatim was cer-
tainly the worst way to deal with such a problem and would only make it
necessary to refer the whole matter again to the General Committee.
Mr. COOMES (Australia) supported Mr. Wunsz-King (China) in his
request for a brief recess" The basis of the discussion should be the re-
draft of Article 15. Should Mr. Wilcox feel it should be withdrawn, the
Australian delegation would be willing to submit it in its name.
Mr. WILCOX (United States) replied he would be glad to relinquish
all commitment to the paper.
The meeting rose at 5;35 p.m. SECRET
MEETING OF CO-ORDINATING COMMITTEE HELD ON FEBRUARY -Y 28th, at 4:00 P.M.
Consideration of the Latin American Amemdients to the draft of Article 15
submitted on 24 Februyrv 1948.
endment nt to ParagpaDh 1
MrMULLER LLRI (Chile) said that the amendment was designeind to sure
that preferences would be granted to the countries which had the greatest
need of them.
VANSb(AIJ 'United States) pointed out that paragraph 1 was a
recommendation of principle whhle tne proposed amendment concerned the
consideration by the Organization of the justification of new preferential
agreements. In those circumstances, it might be preferable to return to
the lorking Party draft which read as follows: "Members recognize that
would
in special circumstances ...... reconstruction", though it/introduce an
undesirable differentiation between economic development and reconstruction.
MOM COCGBS (Australia) recalled that the Chilean representative
wished economic development to be included as one of the justifying
circumstances; that idea could be conveyed
oby inserting the words "including the need for economic development and
reconstruction" after "special circumstances".
Mr. FHILIP (?rance) said that the Austragian sug estion would
make the paunragraph understandable and geGe4 proposed the following
alternative form of words: "having particular regard to ......... country".
Ir. MULLER (Chile) could accept either the Australian or French
proposN while 14. EVAiÎ (United States) was prepared to accept the former.
The meeting agreed that this was a question of drafting.
ragraph 2 to aragrth 2
After a short discussion in which several re presentatives
expressed the view that the amendment was unnecessary, Mr. MULLER (Chile)
withdrew it. - 2 -
Amendment to paragraph 3 (a)
Mr. ROYER (France) said that a definition of "economic
region had been put forward in the Working Party but that it had seemed
preferable to decide that question in connection with each specific case.
only
Mr. MULLER (Chile) said that/certain negative definitions had
been put forward and that therefore an explanatory note or a definition
was needed.
Mr. HOLMES (United Kingdom) pointed out that a criterion such
as that contained in paragraph 3 (a) would exclude from possible benefits
a combination like the British Commonwealth which did not form any economic
region but which, through its long development, had/close economic ties.
He suggested that to the provision that the countries belong to the came
economic or geographic region should be added "or to a group of territories
which have special traditional ties of an economic character".
Mr. COOMBS (Australia) said that the real point at issue was
whether the definition should be limiting or whether it should make possible
the approval, subject to the criteria, of countries not actually contiguous
or even close geographically. It would be difficult to define "economic
region" without leaving to the Organization some measure of discretion. An
agreement between two European countries might be less justifiable than one
between Australia and New Zealand. A note might be drafted to make clear
the elastic character of the phrase X and the necessity of discretion on the
part of the Organization.
MR. PHILIP (France) did not believe that an internationally
agreed definition of "economic region" could be found.
Mr. ROYER (France) pointed out that the idea could not be
infinitely flexible, as else where it was stated that countries of the same
economic region must become part of any preferential agreement. A middle-
of the road view was the only one which could be taken.
Mr. GARCIA OLDINI (Chile) felt that it would perhaps be
enough to say that the intention of the Working Party had been to have "economic
region" interpreted in the limited rather than in the wide sense. The meeting
agreed to postpone consideration of this point. -3 -
Amendment to Paragraph 3 (b)
Mr. EVANS (United States) said that as the automatic criteria
placed little limit on the establishment of new preferences, his delegation
would have to abandon that approach if the words "xx necessary" were to
be changed.
Mr. MULLER (Chile) felt that the Organization should make its
decision on the basis of the rest of the paragraph without obliging countries
to prove that the agreement was necessary.
Mr. COOMBS (Australia) felt that it was not unreasonable to
include the word "necessary" as it applied to a particular type of protection
to
and not/the particular industry. The measure was generally prescribed by
the Charter and therefore the Member should be able to show that no other
protective measure or assistance from the Government would be sufficient. inctead
Mr. PHILIP (France) suggested the following redraft of the
paragraph:
"(b) Any preferential customs duty provided for in the agreement
is necessary in order to ensure a sound and adequate market
substantially
for a branch of industry or agriculture which is to be/developed
within the framework of a Member's general programme of economic
development or reconstruction/."
The meeting accented the French proposal.
After a short discussion the words "to be" were changed to
read "is being".
Mr. EVANS (United States) opposed the amendment to delete the
word "substantially" hecause the whole idea of the Article was that an
unusual release should be granted when by so doing something worth while
could be accomplished.
Mr. MULLER (Chile) said that the underdeveloped countries
objected to the word "substantial" because a decision on that point would
be/a subjective one. - 4 -
A discussion took place as to whether the word substantially"
applied both to developed" and "modernised". It was also wondered whether
the word had the same importance with respect to the French amendment. As the
French and English texts were not argument, it was agreed to consider them
again at the following meeting.
The meeting rose at 7:15 P.M. S E C R E T
COORDINATING COMMITTEE
1 March 1948 at 2:30 p.m.
PROPOSALS REGARDING THE INTERIM TARIFF COMMITTEE ETC.
Mr. FERRERO (Peru) was prepared to support Alternative 2 with
certain modifications. In Article 17 (4) the words "two years" should
be substituted for "a reasonable period of time". Also in paragraph 5,
the reference to the Organization should be changed to a reference to
the Conference. The explanation for these changes is contained in the
paper circulated by the representative of Peru.
A consequential change to the above amendments would be to eliminate
the requirement of agreement to GATT. GATT was only a
multilateral agreement which preceded the Organization and which
put the terms of Article 17 into practice. The rights of the GATT
contracting parties were respected in Article 17 and he suggested
no alterations in that respect. The authority concerning disputes
between any two contracting parties, however, should be the Conference
of ITO.
regarded
Mr. LEDDY (United States) regarded the Peruvian proposal as a
fourth Alternative rather than as an amendment to the second Alternative.
It wouldretain the penalty clause in Article 17 and would eliminate
any reference tothe TariffCommittee. Such a procedure would not
safeguard the interests of countries which had gone far to put the
provisions of Article 17 into effect, for the enforcement prodedure
set forth in that Article would be completely changed. It was impossible
to ensure the successful conclusion of negotiations and, therefore,
the enforcement procedure had to be effective. The Peruvian proposal
would put the penalty clause into the hands of countries, not contracting
parties to GATT, and with that idea he was unable to agree. -2- Mr. FERRERO (Peru) denied that his proposal was a radical
one. The only new idea which was suggested was that the Conference
instead of the Tariff Committee should have the authority in connection
with GATT disputes.
Mr. LEDDY (United States) pointed out that the question at
issue was what group should have the power in connection with dis-
putes. The United States proposals had been designed to meet the
criticism that the power of the Tariff Committee could be abused.
Mr. FERRERO (Peru) reiterated that a non-ITO body should have
no power to take decisions concerning the Charter.
Mr. COOMBS (Australia) drew attention to the fact that the
final authority would rest with the Organization, either originally
as suggested by the representative of Peru or by appeal as proposed
by the representative of the United States. The meeting had to decide
whether the circumstances warranted the position held by the United
States delegation. Alternative 2 protected the position of the
contracting parties of GATT by placing the onus of proof on the
non-contracting countries. Alternative 3 achieved the same end
by requiring a two-thirds majority vote.
We examined that it was generally agreed that the Charter should
He assumed that it wqs generally agreed that the contracting
parties of GATT could not be expected to continue unilateral concessions
indefinitely. The problem, therefore, was one of machinery
Mr. SAENZ (Mexico) said that his delegation also supported Alternative
2 with modifications. The problem for it was a political one, that is,
of stricking a balance between the importance of reducing trade barriers
and that of promoting production. The original Mexican proposal had
been the establishment of an economic development committee. -3-
To make clear that the concessions would only be Tariff concessions,
he proposed the insertion of the word "Tariff" in the third line of
Article 17 (4) of Alternative 2. He also suggested the substitution
of the words "the Schedules" for "Part I", in the same paragraph, and
the replacement of the proviso by that contained in the Mexican paper,
so that countries which had not been called upon to negotiate would be
permitted the advantages of the mfn clause in Article 16.
Although it could be taken for granted, he suggested the insertion
of the words "by a simple majority vote" after the word "Organization"
at the tope of page-2-of-document 5374. He suggested the addition
of a new sentence to the effect that a request for the extension of
mfn treatment during the transitional period between the decision by
GATT and the decision of the Organization would not be witheld.
of GATT
Article XXV (5)/of GATT and a record
of the GATT discussions now taking place/attached as annex/to the
Charter. It had to be remembered that the Charter was the basic
document concerning trade policy and that GATT occupied a subordinate
position. In paragraph 5(a) of Article XXV, he suggested the insertion
of the following words after "CONTRACTING PARTIES": "Upon complaint
and after investigation, and taking into account the criteria contained
in paragraph (b)". He also suggested the insertion of the word "complaining"
before "contracting" in the next line of the same paragraph.
The attitude of the Mexican delegation to alternative 2 would also
be subject to the adoption of the present proposal for the composition
of the Executive Board. It would also be subject to the inclusion of a
statement to the effect that the decisions of the Executive Board would
be subject to appeal to the Conference.
Mr. COOMBS (Australia) agreed that the M.F.N. benefits of a Member
which had not been requested to negotiate with a view to becoming a
contracting party of GATT, should not be withdrawn. He also accepted - 4 -
the reference to a simple majority and to the fact that mfn benefits
should not be withdrawn in the transitional period before a decision by
the Organization. The proviso suggested by the Mexican representative
was unnecessarily detailed and to cover the points contained therein,
he proposed the deletion of the words "either has not been requested to
the proposed
become, or" in/Article 17 (4) and the insertion of a further proviso
to read as follows; "provided also that the Member has not been requested
to become a contracting party to the General Agreement".
Mr. Coombs said that he would not speak at this time on the
proposed amendments to GATT. Mr. LEDDY (United States of America) said that he
accepted the three points made by the delegate of Mexico:
(i) that tariff concessions should not be withheld pending
a decision of the Organization (ii) that decisions of the
Organization should be by a majority vote and (iii) that
benefits should not be withheld from a country after the
period of two years if that country had not been called
upon to negotiate. He also accepted the proposition
that the same treatment should be accorded to all countries
no matter when they were called upon to negotiate.
Mr. ROYER (France) preferred Alternative 2 in the
United States draft together with the Mexican amendments
thereto, but doubted if a mention should be made of the
majority vote when no similar specific mention was made
elsewhere in the Charter. He also pointed out that the
provisions of the General Agreement covered only a case
where a country achieved successful negotiations with a
large majority of the contracting Parties but disputed with
one or a small number of contracting parties.
Mr. FERRERO (Peru) said that all the three points
mentioned by Mr. Coombs were covered by the proposal of
Peru.
Mr. LLERAS-RESTREPO (Colombia) said that the change in
the text would be undesirable if the Peruvian proposal were
not accepted. He could accept either the Geneva text or
Alternative 2 together with the amendments of Mexico and Peru.
But there was a distinct difference
in the position of a country if on the one hand it would
not lose benefits until a complaint was directed against
it and if on the other hand it could not get back benefits - 2 -
withheld from it except by itself compaining to the Organization.
Mr. FERRERO (Peru) said that the forms Geneva text
was equitable in that benefits remained in force until
a complaint was made against a country. The Mexican amend-
ments were already covered by Article 16 and by the Peruvian
amendment. He did not agree with Mr. Coombs that the
Contracting Parties needed any protection beyond that
given by the Organization.
Mr. SAENZ (Mexico) said that the changes proposed by
the Australian delegate would not fully meet his case.
Under paragraph 4 of Article 17 a country would continue
to receive benefits if it was not called upon to negotiate;
under Alternative 2 and the Mexican amendment the extension
of benefits after two years was not automatic.
Mr. LEDDY (United States of America) asked whether it
was wise to make a distinction between the two cases by
shifting the onus of proof and whether the Mexican amend-
ments light not have the effect of speeding of the nego-
tiations.
Mr. LLERAS-RESTREPO (Colombia) agreed that no distinc-
tion should be drawn because otherwise a country would be
more or less compelled to negotiate within two years. He
would be prepared to accept the amendment as redrafted by
the Australian delegate.
Mr. FERRERO (Peru) asked whether all the Contracting
Parties could withhold benefits if a country had a dispute
with one of the Members and also failed to become a Contracting
Party itself.
Mr. LEDDY (United States of America) pointed out
that if a country had benefits withheld from it it was free
to approach the Organization and complain. No benefit
should be withdrawn while the case was under consideration
by the Organization. Moreover, bilateral agreements were - 3 -
not forbidden by the Charter. There was no provision in
the text which allowed for the withholding of concessions
under such bilateral agreements but only of concessions
the Contracting Parties
made under the General Agreement. It was true that/Parties
might withhold benefits from a country with which they had
no dispute but this would seem to be a pointless proceeding.
The CHAIRMAN, summarizing the arguments, said that
there was substantial agreement on three points: (i) that
as long as a country had not been was not required to
negotiate it was entitled to benefits under the General
Agreement (ii) that any decision of the Organization must
be made by simple majority and (iii) that a country would
only loose benefits after two years if the Organization
after complaint ruled against such a country. The point
raised by the representatives of Colombia and Peru seemed
to be a matter of verbal difficulties.
On the suggestion of Mr. PHILIPS (France) the Committee
agreed to set up a small Working Party to prepare a draft
which took into account the four points mentioned by the
Chairman and to adjourn until five o'clock.
The meeting rose at 4:20 p.m. CO-ORDINATING COMMITTEE 1 May (5 p.m.)
CONSIDERATION OF THE TEXT OF ARTICLE 15 (White Paper No. 5490)
Paragraph 1 approved.
Paragraph 2 approved.
Paragraph 3
On the proposal of Mr. COOMBS (Australia) it was agreed that
this paragraph should be amended to read:
"The Organization shall examine the proposal and, subject to
such conditions as it may impose, may by a two-thirds majority
of the Members present and voting grant an exception to the
provisions of Article 16 to permit the proposed arrangements to
be made."
The paragraph was approved.
Premble to Paragraph 4 approved
Sub-paragraph 4(a)
On the suggestion of Mr. HOLMES (United Kingdom) and
Mr. WILCOX (United States of America) it was agreed that this
Sub-paragraph should be amended to read:
"(a) The territories of the parties to the agreement
shall be contiguous one with another........"
This sub-paragraph was approved.
Sub-paragraph 4(b) was approved with the change of the phrase
preferential customs duty" to "tariff preference".
Sub-paragraphs 4(c), 4(d), 4(e) were approved.
Sub-paragraph 4(f) was approved with the insertion of the word
"and" after the word "Organization".
Paragraph 5
Mr. OLDINI (Chile) said that he had understood that it was
the Member country which determined the margin of preference,
with the Organization giving its approval as an exception to
Article 16. The present text laid down that the Organization
determined the margin of preference; this was a violation of a
country's unchallenged right. - 2 -
Mr. COOMBS (Australia) said he thought that the initiative
in this matter gould be with the countries concerned and that
the Organization would then consider the case in the light of
the submissions of those countries.
Mr. FERRERO (Peru) said that the previous text had not
given the Organization the right to fix the amount of the margin
of preference.
Mr. EVANS (United States of America) suggested that the
paragraph be amended to read as follows: "When the Organization,
upon the application of a Member, approves a margin of preference
in accordance with paragraph 6 as an exception to Article 16
in respect of the products covered by the proposed agreements
it may as a condition of its approving such a margin of preference
require a reduction in an unbound most-favoured-nation........"
This proposal was approved.
Sub-paragraph 6(a) approved.
Sub=paragraph 6(b)
Mr. HAKIM (Lebanon) said that the redraft of the sub-paragraph
which he had circulated contained two major changes. The clause
beginning, "through no fault......" had been omitted
because it was too vague. The last sentence had been altered
because in his opinion only the injured party could invoke
the provisions of Chapter VIII.
Mr. EVANS (United States of America), while accepting the
latter change, found the former/worth retention in some form
or other.
Mr. HOLMES (United Kingdom) round the two uses of the word
"agreement" in this sub-paragraph ambiguous.
Sub-paragraph 6(c) was approved
Sub-paragraph 6(d)
Several delegates thought that the known of let mention sub-paragraph (a) - 3 -
was doubtful. Other delegates wished a mention to be made of
paragraph 5 in the seventh line. It was agreed
that the symbol "(e)" should be inserted before the symbol
"and (f)" in line 8.
Interpretative Note to Sub-paragraph 4(a) approved.
Interpretative Note to Sub-paragraph 6(d) approved.
Consequential Amendment of Article 13
the institution of
Mr. OLDINI (Chile) thought that/preferential arrangements
might be seriously impaired were this amendment to be adopted.
Mr. EVANS (United States) disagreed. SECRET
CO-ORDINATING COMMITTEE MEETING HELD ON 1st MARCH, 1948 - 5:00 P.M. continuation
Internetative Note to Paragraph 4 (a)
This Note was approved without comment.
Interpretative Note to Paragraph 6 (d)
This Note was approved without comment.
Consequential Amendment to Article 13.
Mr. GARCIA OLDINI (Chile) wondered if it would not be appropriate
to include an Interpretative statemen t to the effect that there would be
a grave risk that attempts to establish preferences under the terns of
Article 13 might be continuously blocked. In reply to Mr. Evans (United
States), he said that he was not re-opening the issue but hoped that some
formula could be found which would take note of that possibility.
In reply to the representative of Peru, Mr. Evans pointed out
that Article 15 covered the case of preferences while Article 13 would
have to be applied in connection with an increase of a bound tariff,
regardless of the most-favoured-nation clause.
Mr. HEWITT (Australia) expressed the view that the only way in
which a Member could seek the unbinding of a bound tariff would be through
the provisions of Article 13.
On the suggestion of Mr. Evans (United States) it was agreed
that the Report of the Second Committee could contain a Note to the effect
might
that while it might be possible for a preferential agreement to be
blocked for non-economic reasons, the Committee considered that the terms
of Article 13 were sufficient to prevent that danger.
Mr. HOLMES (United Kingdom) pointed out that Article 15 could
not be considered adopted until the meeting had considered the redraft
of paragraph 6 (d).
Mr. MULLER (Chile) said that he would have to reserve his posi-
tion on the question of prior approval until he knew the attitude of his
Government.
Draft Report of the Co-ordinating Committee. - 2 -
Mr. LLERAS-RESTREPO (Colombia) withdrew from his statement
the criticism of paragraph 7 of the United States draft of Article 13,
but was unable to accept the suggestion that the reference to that
statement be deleted from the Report.
Mr. HOLMES (United Kingdom) asked to what extent he would be
commiting his Government by accepting the Report of the Committee.
A discussion ensued in which several representatives expressed
the view that the Members of the Committee were acting in a personal
capacity and that therefore their Governments would not be committed
in any way.
Mr. HOLMES (United Kingdom) reserved his position
on this question until later.
Mr. COOMBS (Australia) proposed the insertion of the words
"submits as a basis for a general" before the word "settlement"
and the deletion of the word "on the basis of" in the first para-
graph of the Report. In the forth paragraph, he proposed that the
second sentence shuuld read as follows: "If areement on this lines
is reached it...." In the final sentence of that paragraph, he pro-
posed that the word "included" be substituted for "accepted".
Mr. MULLER (Chile) proposed the substitution of the words "recom-
mends" for the words "should be accompanied by" in the second sentence
of the fourth paragraph.
The Report as amended by Mr. Coombs and Mr. Muller was adopted by
the Committee, subjectto the United Kingdom reservation.
Mr. MULLER (Chile) raised the question of a Chilean amendment to
Article 21. On the suggestion of Mr. Wilcox, it was agreed that the
amendment should be introduced in the Third Committee with the
understanding that it would be generally accepted. SECRET
7:00
CO-ORDINATING COMMITTEE MEETING - MARCH 1st, 1948 - 7:00 - continuation
Article 15 (6) (d)
Mr. ROYER (France) drew attention to certain changes which
had been made in this paragraph and in the Interpretative Note to it.
Paragraph 6 (d) as amended was approved by the Committee.
Mr. EVANS (United States) proposed the insertion of the
words "between Members" after the word "agreement" in the preamble to
paragraph 4, to make clear what was already stated somewhat ambiguously
in the paragraph.
Mr. FERRERO (Peru) raised the question of an agreement between
a Member and a non-Member.
After a short discussion in which it was pointed out that it
would be very difficult from a practicable point of view to permit
a preferential agreement with a non-Member under the terms of the automatic
criteria, the Committee agreed that the matter should be given further
study by the Interim Committee or by some other appropriate group.
Article 15 as amended was adopted, by the Connittee.
Draft Report of the Co-Ordinating Committee.
Mr. HOLMES (United Kingdom) suggested that the third
paragraph should read as follows:
"Attached drafts relating to Article 13, Article 15 and
amendments concerning the tariff Committee and the proposed
Economic Development Committee represent the result of the
Committee's consideration of these matters."
He also proposed that the word "suggests" should be substituted for
"recommends" in the following paragraph:
After a short discussion, Mr. HOLMES agreed to withdraw
his -second suggestion so that at least one recommendation would be made
to the heads of Delegations.
The meeting rose at 9:25 P.M. SECRET
CO-ORDINATING COMMITTEE
1 March 7:55 p.m. - 9:00 p.m.
ARTICLE 17. (Redraft suggested by Messrs. Coombs, Leddy and Saenz)
Mr. FERRERO (Peru) read the text of a new draft of certain
parts of Article 17 which he had prepared.
Mr. LEDDY (United States of America) said in answer to this that
the point was that only the complaining number could withhold concessions.
contracting
If a country agreed with only one contracting party, a bilateral arrange-
ment would be the solution.
Mr. BURGESS (United Kingdom) asked whether a men from whom
benefits were taken should not, in addition to complaining to the Organi-
zation, also show that it had tried to become a party to the General Agree-
ment.
Mr. LEDDY (United States of America) said that this was already
implicit in the draft.
Mr. COOMBS (Australia) proposed to add after the word "Organization"
in fifth line of paragraph 4 (b) the words "in terns of paragraph 4 (a)".
Mr. SAENZ (Mexico) stated that paragraph 4 (a) referred (1) to the
case of a Member who had not been requested to negotiate/ (2) to the ex-
tension of MFN after decision by the Organization. The text would be in-
complete if only one of these was referred to in paragraph 4 (b).
Mr. KLERAS RESTREPO (Colombia) thought that the whole mechanism was
illogical and inconsistent. The old draft of Article 17 had on the other
hand laid down definite commitments; a country could refuse to negotiate
on certain products and the Organization could base maximum its judge-
ment as to whether the country had fulfilled its obligation by studying
the concessions offered on other products.
Mr. FERRERO (Peru) also found the provisions of paragraph 4 (a) obscure.
He suggested that the words "without reaching agreement" should be inserted -2- after the words "Tariffs and Trade" in the eleventh line of paragraph 4 (a).
Mr. BURGESS (United Kingdom) thought that the word "Tariff" in line 8
of paragraph 4 (a) could be leading and should be deleted.
This was agreed.
Mr. SAENZ (Mexico) wished it to be put on record, however, that no
other type of MFN benefit would be withheld.
Paragraph 4 (b) was approved.
Paragraph 4 (c).
Mr. COOMBS (Australia) in answer to a question of Mr. FERRERO (Peru)
said that the word Organization in the fifth line would refer to the Conference
unless the Conference were to delegate this particular function to the Executive
Board, in which case, a country would, of course, have the right of appeal
from to the Conference from the Executive Board's decision.
Paragraph 4 (c) was approved.
Mr. WILCOX (United States) suggested that the report contained also
a mention of the consequential changes in Article 70, of the deletion of
Article 81, of the changes in paragraph 5 of Article XXV of the General
Agreement and a short explanation of all these various alterations.
Mr. SAENZ (Mexico) suggested that the report also state that there
was no intention to prejudice the formation of a Tariff Committee and an
Economic Development Committee in the future.
These proposals were approved.
It was agreed on the proposal of Mr. Burgess (United Kingdom) that
the new provisions of Article XXV, paragraph 5, of the General Agreement
should only come into force when the Charter itself come into force. REDRAFT OF ARTICLE 15
Paragraph 6 (b)
Mr. ROYER (France) stated that this paragraph had been revised on
the basis of the text submitted by Mr. Hakim (Lebanon). The paragraph
as quoted by Mr. Royer was approved. |
GATT Library | tx085ks2973 | Chile: proposed amendments to Article 83 | United Nations Conference on Trade and Employment, January 29, 1948 | Sixth Committee: Organization | 29/01/1948 | official documents | E/CONF.2/C.6/12/Add.14 and E/CONF.2/C.6/12/ADD.4-44 | https://exhibits.stanford.edu/gatt/catalog/tx085ks2973 | tx085ks2973_90170054.xml | GATT_145 | 183 | 1,410 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/12/Add.14
ON DU 29 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ENGLISH
ORIGINAL: SPANISH
SIXTH COMMITTEE: ORGANIZATION
CHILE: PROPOSED AMENDMENTS TO ARTICLE 83
1. The Director-General having first consulted with and having obtained
the agreement of the Executive Board, shall have authority to appoint
Deputy Directors-General in accordance with the provisions of paragraph 2
of this Article and with regulations approved by the Conference. The
Director-General shall also appoint such further members of the Staff as
may be required and shell fix the duties and conditions of service of the
Staff in accordance with regulations approved by the Conference and with
the following paragraph:
2. The appointment of Deputy Directors-General and the
selection of the Staff shall be made with due regard to the
various types of economy and on as wide a geographical basis as
possible. Theparamount consideration in the selection of the
Staff and in the determination of its conditions of service shall
be the necessity of securing, subject to the aforementioned
conditions, the highest standards of impartiality, efficiency,
competence and integrity. |
GATT Library | xr981vz1637 | Combined Meeting of Sub-Committee A of Committee III, Sub-Committee D of Committee VI and the joint Sub-Committee of Committees II and VI : Note by the Chairman of Committee II, the acting Chairman of Committee III, and the Chairman of Committee VI | United Nations Conference on Trade and Employment, February 2, 1948 | 02/02/1948 | official documents | E/CONF.2/C.3/A/21, E/CONF.2/C.6/61, E/CONF.2/C.26/A/19, and E/CONF.2/C.3/A-E | https://exhibits.stanford.edu/gatt/catalog/xr981vz1637 | xr981vz1637_90190321.xml | GATT_145 | 266 | 1,885 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/A/21 E/CONF.2/C.6/61
ON DU E/CONF.2/C .2&6/A/19
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 2 February 1948
ORIGINAL ENGLISH
COMBINED MEETING OF SUB-COMMITTEE A OF COMMITTEE III, SUB-COMMITTEE D
OF COMMITTEE VI AND THE JOINT SUB-COMMITTEE OF COMMITTEES II AND VI
Note by the Chairman of Committee II, the Acting Chairman of
Committee III, and the Chairman of Committee VI
Sub-Committee A of Committee III, which is concerned with Article 17,
and Sub-Committee D of Committee VI, which is concerned with Article 81,
established a Joint Working Party to consider what organizational machinery
would be required to implement the provisions of paragraph 2 (paragraph 4,
new text) of Article 17. This Joint Working Party has not yet met.
The Joint Sub-Committee of Committees II and VI established a Working
Party on the Mexican proposal for . Committee on Economic Development. This
Working Party has had one meeting.
The Chairmen of the three Sub-Committees concerned have recommended
to the Chairmen of Committees II, III and VI that before proceeding further
in Working Party stage, it would be desirable to convene a combined meeting
of Sub-Committee A of Committee III, Sub-Committee D of Committee VI and
the Joint Sub-Committee of Committees II and VI to consider new proposals
relating to the Tariff Committee and the Committee on Economic Development.
Such a meeting would provide guidance to the two existing Working Parties
or any tripartite Working Party which may be established.
The Chairmen of Committees II, III and VI are in agreement with this
proposal and have therefore convened such a combined meeting. |
|
GATT Library | rh831ft8431 | Combined meeting of Sub-Committee A of Committee III, Sub-Committee D of Committee VI and the Joint Sub-Committee of Committees II and VI : Note by the Chairman of Committee II, the Acting Chairman of Committee III, and the Chairman of Committee VI | United Nations Conference on Trade and Employment, February 2, 1948 | Sub-Committee A of Committee III, Sub-Committee D of Committee VI, and Joint Sub-Committee of Committees II and VI | 02/02/1948 | official documents | E/CONF.2/C.3/A/21, E/CONF.2/C.6/61, E/CONF.2/C.26/A/19, and E/CONF.2/C.6/44-75 | https://exhibits.stanford.edu/gatt/catalog/rh831ft8431 | rh831ft8431_90170123.xml | GATT_145 | 264 | 1,830 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/A/21 E/CONF.2/C.6/61
ON DU E/CONF.2/C.2&6/A/19
TRADE AND EMPLOYMENT COMMERCE ET DE L' EMPLOI 2 February 1948
COMBINED MEETING OF SUB-COMMITTEE A OF COMMITTEE III, SUB-COMMITTEE D
OF COMMITTEE VI AND THE JOINT SUB-COMMITTEE OF COMMITTEES II AND VI
Note by the Chairman of Committee II, the Acting Chairman of
Committee III, and the Chairman of Committee VI
Sub-Committee A of Committee III, which is concerned with Article 17,
and Sub-Committee D of Committee VI, which is concerned with Article 81,
established a Joint Working Party to consider what organizational machinery
would be required to implement the provisions of paragraph 2 (paragraph 4,
new text) of Article 17. This Joint Working Party has not yet met.
The Joint Sub-Committee of Committees II and VI established a Working
Party on the Mexican proposal for a Committee on Economic Development. This
Working Party has had one meeting.
The Chairmen of the three Sub-Committees concerned have recommended
to the Chairmen of Committees II, III and VI that before proceeding further
in Working Party stage, it would be desirable to convene a combined meeting
of Sub-Committee A of Committee III, Sub-Committee D of Committee VI and
the Joint Sub-Committee of Committees II and VI to consider new proposals
relating to the Tariff Committee and the Committee on Economic Development.
Such a meeting would provide guidance to the two existing Working Parties
or any tripartite Working Party which may be established.
The Chairmen of Committees II, III and VI are in agreement with this
proposal and have therefore convened such a combined meeting. |
GATT Library | st624hq9303 | Combined Meeting of Sub-Committee A of Committee III, Sub-Committee D of Committee VI and the Joint Sub-Committee of Committees II and VI : Note by the Chairman of Committee II, the Acting Chairman of Committee III, and the Chairman of Committee VI | United Nations Conference on Trade and Employment, February 2, 1948 | 02/02/1948 | official documents | E/CONF.2/C.3/A/21, E/CONF.2/C.6/61, E/CONF.2/C.26/A/19, E/CONF.2/C.23/A/1-15, and C.26/A/1-24 | https://exhibits.stanford.edu/gatt/catalog/st624hq9303 | st624hq9303_90180427.xml | GATT_145 | 263 | 1,836 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/A/21
ON DU E/CONF.2/C .2&6/A/19
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 2 February 1948
COMBINED MEETING OF SUB-COMMITTEE A OF COMMITTEE III, SUB-COMMITTEE D
OF COMMITTEE VI AND THE JOINT SUB-COMMITTEE OF COMMITTEES II AND VI
Note by the Chairman of Committee II, the Acting Chairman of
Committee III, and the Chairman of Committee VI
Sub-Committee A of Committee III, which is concerned with Article 17,
and Sub-Committee D of Committee VI, which is concerned with Article 81,
established a Joint Working Party to consider what Organizational machinery
would be required to implement the provisions of paragraph 2 (paragraph 4,
new text) of Article 17. This Joint Working Party has not yet met.
The Joint Sub-Committee of Committees II and VI established a Working
Party on the Mexican proposal for a Committee on Economic Development. This
Working Party has had one meeting.
The Chairmen of the three Sub-Committees concerned have recommended
to the Chairmen of Committees II, III and VI that before proceeding further
in Working Party stage, it would be desirable to convene a combined meeting
of Sub-Committee A of Committee III, Sub-Committee D of Committee VI and
the Joint Sub-Committee of Committees II and VI to consider new proposals
relating to the Tariff Committee and the Committee on Economic Development.
Such a meeting would provide guidance to the two existing Working Parties
or any tripartite Working Party which may be established.
The Chairmen of Committees II, III and VI are in agreement with this
proposal and have therefore convened such a combined meeting. |
|
GATT Library | kh369nh6184 | Committee IV: Organization : Australia: Proposal concerning the text of Article 83A (E/CONF.2/C.6/93) made at morning Meeting on 9 March 1948 | United Nations Conference on Trade and Employment, March 9, 1948 | 09/03/1948 | official documents | E/CONF.2/C.6/93/Add.3 and E/CONF.2/C.6/76-103/ADD.1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/kh369nh6184 | kh369nh6184_90050023.xml | GATT_145 | 101 | 695 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E/ CONF.2/C .6/93/
Add. 3
9 March 1948
ORIGINAL: ENGLISH
COMMITTEE IV: ORGANIZATION
AUSTRALIA: PROPOSAL CONCERNING THE
TEXT OF ARTICLE 83A (E/CONF.2/C.6/93) MADE AT
MORNING MEETING ON 9 MARCH 1948
The delegate for Australia tentatively proposes that in paragraph 3
after the words "... shall not be subject to the provisions of this Charter"
tho following words should be added: "unless the Organization on the
recommendation of the United Nations, given in accordance with any agreement
between the Organization and the United Nations, decides otherwise." |
|
GATT Library | pv456yv5434 | Committee IV: Organization : Australia: Proposal concerning the text of Article 83A (E/CONF.2/C.6/93) made at morning Meeting on 9 March 1948 | United Nations Conference on Trade and Employment, March 9, 1948 | 09/03/1948 | official documents | E/CONF.2/C.6/93/Add.3 and E/CONF.2/C.6/76-103/ADD.1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/pv456yv5434 | pv456yv5434_90050023.xml | GATT_145 | 0 | 0 | ||
GATT Library | pb496cq7681 | Committee of the contracting parties on special exchange Agreement | General Agreement on Tariffs and Trade, September 8, 1948 | General Agreement on Tariffs and Trade (Organization) | 08/09/1948 | official documents | GATT/CEA/W.1 and GATT/CEA/1-9 GATT/CEA/W.1-6 GATT/CEA.2/W.1-11 GATT/CEA/N.1-4 | https://exhibits.stanford.edu/gatt/catalog/pb496cq7681 | pb496cq7681_90310156.xml | GATT_145 | 6,300 | 39,649 | RESTRICTED
LIMITED C
GATT/CEA/W. 1
8 September 1948
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
COMMITTEE OF THE CONTRACTING PARTIES ON
SPECIAL EXCHANGE AGREEMENT
The attached drafts, A and B, of a special exchange
agreement are. distributed to members of the Committee to
serve as the basis for discussion at the second meeting
which will be held in London in October or November, 1948.
It will be. noticed that these drafts have been prepared in
the form of an agreement between the International Trade
Organization and a Member of the Organization which is not
a Member of the International Monetary Fund., They will be
revised to serve the purposes of the Contracting Parties
and will be reissued at an early date. GATT/CEA/W.1
page 2
DRAFT "A"
SPECIAL EXCHANGE AGREEMENT
The International Trade Organization (hereafter called
the ITO) , represented by its Director General and [country X
....] (hereafter called the Member), represented by
Considering that paragraph 6 of Article 24 of the
Charter for an International Trade Organization (hereafter
called the Havana Charter) provides that every member of the
ITO which is not a member of the International Monetary Fund
(hereafter called the Fund) shall enter into a special
exchange agreement with the ITO;
Considering that paragraph 6. of Article 21- of the
Havana Charter provides that the objectives of the Havana
Charter shall not be frustrated by such Member as a result
of action with respect to exchange matters;
agree as follows:
Article I
Exchange Stability and Orderly Exchange Arrangements
The Member undertakes to cooperate with the ITO in order
to promote exchange stability, to maintain orderly exchange
arrangements among the members of the ITO and to avoid com-
petitive exchange alterations.
Article II
Expression of Par Value
1. The present par value of the Member's currency expressed
in terms of gold or in terms of United States dollars of the
weight and fineness in effect on July 1, 1944 is the.
following: 1/
X - gold
X U.S. dollars
2. The ITO will keep the Merrber currently informed about
the par values of the currencies of the other ITO members.
1/ If the Special Exchange Agreement covers also separate
currencies in territories under the authority of the
Member, the Agreement will have to be adjusted accordingly. GATT/CEA/W.1
page 3
Article III
Gold Transactions Based on Par Values
The Member shall not buy gold at a price above par
value plus the margin permissible under this Article, or
sell gold at a price below par value minus the margin
permissible under this Article. This margin above and below
par value shall be as prescribed by the Fund for its members
for such transactions under paragraph 2 of Article IV of the
Articles of Agreement of the International Monetary Fund.
Article IV
foreign Exchange Dealings Based on Parity
The maximum and the minimum rates for exchange trans-
actions between the currency of the Member and the currencies
of other ITO members taking place within the Member's
'territories shall not differ from parity:
(i) in case of spot (TT) transactions, by more than
1%, and
(ii) in case of other exchange transactions, by a
margin which exceeds the margin for spot exchange
transactions by more than the ITO, after con-
sultation with the Fund, considers reasonable.
Article V
Obligations Regarding Exchange Stability
The Member undertakes not to permit within its territory
exchange transactions between its currency and the currencies
of other ITO members at rates which exceed the limits pre-
scribed in Article IV of this Agreement. A member whose
monetary authorities, in fact, freely buy and sell gold for
the settlement of international transactions within the
limits prescribed in Article III of this Agreement shall be
deemed to be fulfilling this undertaking.
Article VI
Changes in Par Value
The par value of the Member's currency may be changed
only on the proposal of the Member and the Member shall not
propose a change in the par value except to correct a funda-
mental disequilibrium and after consultation with the ITO,
subject to the following additional conditions; GATT/CEA/W.1
page 4
(a) If such change together with all other changes
effected since the entry into force of this Agreementt whether
increases or decreases, does not exceed 10% of the par value,
the ITO shall raise no objection to the change;
(b) If the change does not exceed a further ten per
cent of the par value, the ITO may either concur or object,
blt shall declare its attitude within seventy-two hours if
the member so requests; 2
(c) The concurrence of the ITO is required for all
other cases involving a change of the par value. The ITO
will communicate to the Member its concurrence or its
objection as soon as possible. If the ITO objects to a
change it shall communicate to the Member the reasons for
its objections.
(d) The ITO shall concur in a change of the par value
if it is satisfied that the change is necessary to correct a
fundamental disequilibrium. In particular, provided it is
so satisfied, it shall not object to a proposed change
because of the domestic, social or political policies of the
member proposing the change;
(e) If the Fund decides uniform proportionate changes
in the par values of the -currencies of all Fund members, the
Member will chance its par value proportionately, unless it
informs the ITO within seventy-two hours after it has been
notified by the ITO of the Fund's action that it does not
wish the par value of its currency to be changed.
(f) In determining whether changes in par value fall
within the limits mentioned in Sections (a), (b) and (c) of
this Article, uniform changes in par value under Section (e)
of this Article shall not be, taken into account.
Article VII
Avoidance of Restrictions on Current Payments
1. Except as otherwise provided in this Agreement the Member
shall not impose restrictions on the making of payments and
transfers for current international transactions without
express prior approval of the ITO.
2/ The time limit of seventy-two hours may be impractical and
may have to be extended. GATT/CEA/W.1
page 5
2. The Member agrees not to enforce in its territories
exchange contracts which involve the currency of any other
member of the ITO and which are contrary to the exchange
control regulations of that member maintained or imposed
consistently with the Articles of Agreement of the Inter-
national Monetary Fund or a Special Exchange Agreement
entered into between another member of the ITO and the ITO.
In addition, the Member may, by mutual accord with another
member of the ITO, co-operate in measures for the purpose
of making the exchange control regulations of either member
more effective, provided that such measures and regulations
are consistent with the Articles of Agreement of the Iater-
national Monetary Fund or a Special Exchange Agreement
entered into between another Member of the ITO and the ITO.
3. The Member may exercise such controls as are necessary
to regulate international capital movements, but no member
may exercise these controls in a manner which will restrict
payments for current transactions or which will unduly delay
transfers of funds in settlement of commitments except as
prove ided in Article VIII (1) (2) and (3) and Article X of
this Agreement.
)+. The Member shall not engage in or permit any of its
fiscal agencies to engage in any discriminatory currency
arrangements or multiple currency practices except as
authorised under this Agreement or approved by the ITO.
-If such arrangements and practices are engaged in at the date
when this Agreement enters into force the Member concerned -
shall consult with the ITO as to their progressive removal,
unless they are maintained or imposed under Article X of this
Agreement in which case the provisions of Article X shall
apply.
5. Payments for current transactions in this Agreement,
means payments which are not for the purpose of transferring
capital, and includes, without limitation:
(a) All payments due in connection with foreign trade,
other current business, including services, and
normal short-term banking and credit facilities;
(b) Payments due as interest on loans and as net income
from other investments; GATT/CEA/W. 1
page 6
(c) Payments of moderate amount for amortization of
loans or for depreciation of direct investments,
(d) Moderate remittances for family living expenses.
6. The ITO may, after consultation with the Fund and the
Member determine whether certain specific transactions are
to be considered current transactions or capital trarns-
actions.
Article VIII
Scarce Current
1. The Member is authorized to impose temporarily, after
consultation with the ITO, limitations on the freedom of
exchange operations in a currency which has formally been
declared scarce by the Fund in accordance with Article VII,
Section 3 of the Articles of Agreement of the International
Monetary Fund,
2. Subject to the provisions of Articles IV and V of this
Agreement the Member shall have complete jurisdiction in
determining the nature of such limitations.
3. These limitations shall not be more restrictive than is
necessary to limit the demand for the scarce currency to tihe
supply held by, or accruing to, the Member. The limitations
shall be relaxed and removed as rapidly as conditions permit,,
The authorization here mentioned shall expire whenever the
Fund formally declares the currency in question to be no
longer scarce.
4. If the Member is imposing restrictions in respect of the
currency of any other member pursuant to paragraph 1 of this
Article it shall give sympathetic consideration to any
representations by the other Member regarding the admini-
stration of such restrictions.
5. The Member agrees not to invoke the obligations of any
engagements entered into with other members prior to this
Agreement in such a manner as will prevent the operation of
the provisions of this Article.
Article IX
Convertibility of Balances Held by Other ITO Members
1. The Member shall buy balances of its currency held by
another member of the ITO, if the latter in requesting the
purchase represents: GATT/CEA/W. 1
page 7
(a) that the balances to be bought have been recently
acquired as a result of current transactions, or
(b) that their conversion is needed for making payments
for current transactions.
2. The Member shall have the option to pay either in the
currency of the member making the request or in gold.
3. The obligation under Section 1 of this Article shall
not apply insofar as the Member has restricted convertibility
of such balances consistently with Article VII (1) and (3),
and Article VIII (1) of this Agreement, or when the balances
have accumulated as a result of transactions effected before
the Member removed the transitional arrangements maintained
under Article X of this Agreement, or when the balances have
been acquired contrary to the exchange control regulations of
the Member, or when the currency of the ITO member requesting
the purchase has been declared scarce under Article VII,
Section 3(a) of the Articles of Agreement of the International
Monetary Fund.
Article X
Transtional Arrangement s
1. In the post-war transitional period the Member may,
notwithstanding the provisions of any other articles of this
Agreement, maintain and adapt to changing circumstances
restrictions on payments and transfers for current inter-
national transactions. 4/The Member shall, however, have
3/ If the Special Exchange Agreement is concluded with a
Member whose territory has been occupied by the enemy
during World War II, that member may expressly be authorized
to introduce, where necessary, new restrictions.
4/ Alternative: During the post-war transitional period the
Member may institute, maintain or intensify restrictions
on the making of payments and transfers for current inter-
national transactions to the extent necessary (i) to fore-
stall the imminent throat of, or to stop, a serious decline
in its moretary reserves, or (ii) in the case of a Member
with very low monetary reserves, to achieve a reasonable
rate of increase in its reserves. Due regard shall be
paid in either case to any special 'actors which may be
affecting the Member's reserves or need for reserves,
including where special external credits or other resources
are available to it, the need to provide for the appro-
priate use of such credits or resources. (This wording
corresponds with Article 21 (3) (a) of the ITO Charter). GATT/CEA/W. 1
page 8
continuous regard in its foreign exchange policies to the
purposes of the ITO Charter and of this Agreement, and as
soon as conditions permit, it shall take all possible
measures to develop such commercial and financial arrange-
ments with other members of the ITO which will facilitate
international payments and the maintenance of exchange
stability, If the Member still retains these transitional
arrangements on or after March 1, 1952, it shall consult at
that time and annually thereafter with the ITO as to their
further retention.
2. The ITO may, if it deems such action necessary in
exceptional circumstances, make representations to the Member
that conditions are favorable for the withdrawal of any
particular restrictions or for the general abandonment of
restrictions inconsistent with the provisions of any other
article of this Agreement. The Member shall be given a
suitable time to reply to such representations. If the ITO
finds 5/ that the member persists in maintaining exchange
restrictions contrary to its obligations under this Agree-
ment, the ITO may formally declare that the Member violated
this Agreement and its obligations under the Charter.
3. The Member shall notify the ITO as soon as it is
prepared to remove all exchange restrictions maintained
under this Article.
Article XI
Communication of views to Member
The ITO shall at all times have the right to communicate
its views informally to any member on any matter arising
under this Agreement,
Article XII
Furnishing of Information
1. The Member shall within the general scope of Article
VIII, Section 5 of the Articles of Agreement of the Inter-
national Monetary Fund, furnish the ITO with such information
5/ The findings of the ITO will be based on the determination
of the Fund as to whether the Member's action is in
accordance with the terms of the Special Exchange Agree-
ment pursuant to Article 24 paragraph 2 of the Charter. -36-
GATT/CEA/W. 1
page 9
as the ITO deems necessary for the application of-this
Agreement, including, as a minimum, national data on the
following matters:
(i) Official holdings at home and abroad, of (1) golds
(2) foreign exchange
(ii) Holdings, at home and abroad, by banking and
financial agencies, other than official agencies,
of (1) gold s (2) foreign exchange.
(iii) Production of Gold
(iv) Gold exports and imports according to countries of
destination and origin.
(v) Total exports and imports of merchandise in terms
of local currency values, according to countries of
destination and origin.
(vi) International balance of payments, including (1)
trade in goods and services, (2) gold transactions,
(3) known capital transaction, and (4) other items.
(vii) International investment position, i.e., investments
within the territories of the ."ember owned abroad
and investments abroad owned by persons in its
territories so far as it is possible to furnish
this information.
(viii) National income
(ix) Price indices, ice., indices of commodity prices
in wholesale and retail markets and of export and
import prices:.
(x) Buying and selling rates for foreign currencies,
(xi) Exchange controls, i.e., a comprehensive statement
of the exchange regulations in effect vis - a-vis
members and non-members of the ITO at the time this
Agreement enters into effect and details of subse-
quent changes as they occur.
(xii) Where official clearing arrangements exist, details
for amounts awaiting clearance in respect of
commercial and financial transations, and of the
length of time during which such arrears have been
oustanding.
2. In requesting such information the ITO shall take into
consideration the particular circumstances of the Member.
The Member shall be under no obligation to furnish information GATT/CEA/W. 1
page 10
in such detail that the affairs of individuals or corpora-
tions are disclosed. The Member undertakes, however, to
furnish the desired information in as detailed and accurate
a manner as it is practicable and, so far as possible, to
avoid mere estimates,
Alternative: The Member shall furnish such information
within the general scope of Section 5 of Article VIII of
the Articles of Agreement of the International Monetary
Fund as the ITO may require in order to carry out its
functions under the Charter.
Article XIII
Relations with Non-Members
1. The Member undertakes
(i) Not to engage in, nor to permit any of its fiscal
agencies to engage in, any exchange transaction with
a non-member or with persons in a non-momber's
territories which would be contrary to the pro-
visions of this Agreement or the purposes of the
ITO;
(ii) Not to cooperate with a non-member or with persons
in a non-member's territories in practices which
would be contrary to the provisions of this Agree-
ment or the purposes of the ITO; and
(iii) To cooperate with the ITO with a view to the
application in its territories of appropriate
measures to prevent exchange transactions with
non-members or with persons in their territories
which would be contrary to the provisions of this
Agreement or the purposes of the ITO.
2. Nothing in this Agreement shall affect the right of a
Member to impose restrictions on exchange transactions with
non-members or with persons in their territories unless the
ITO finds that such restrictions prejudice the interests of
members and are contrary to the purposes of. the ITO.
Article XIV
Emergency Provisions
If the Fund invokes the provisions of Article XVI of
the Articles of Agreement of the International Monetary Fund,
the Executive Board of the ITO shall suspend the operation GATT/CEA/W.1
page 11.
of Articles IV, V and XIII of this Agreement for the same
period of time and to the same extent as the Fund suspends
the operation-of corresponding provisions of the Articles
of Agreement in accordance with Article XVI, Section 1 of
the Articles of Agreement of the International Monetary Fund.
Article XV
Miscellaneous Provisions
1. This special exchange agreement entered into by the
Member constitutes a part of its obligations under the
Havana Charter.
2. Where under this Agreement the Member is authorized in
the special or temporary circumstances specified in the Agree-
ment to maintain or establish restrictions on exchange trans-
actions, and there are other engagements between members,
entered into prior to this Agreement which conflict with the
application of such restrictions, the parties to such engage-
ments will consult with one another with a view to making
such mutually acceptable adjustments as may be necessary.
The provisions of this Article shall be without prejudice to
the operation of Article VIII (5) of this Agreements.
3. The Member shall designate a fiscal agency which shall
be in communication with the ITO on the exchange matters
forming the subject of this Agreement.
4. Whenever in the opinion of the ITO the Member fails to
observe any of the provisions of this Agreement, the ITO shall
make representations to the Member. The Member shall be given
reasonable time to reply to such representations..
(The procedure to be adopted by the ITO in case the
Member persists in violating this Special Exchange
Agreement will be considered later. This procedure
will be adjusted to article 93 of the Charter and may
be based on rules to be issued under Article 97 (2)
of the Charter. In any case, the Fund will determine
whether or not action by the Member is in accordance
with the Special Exchange agreement).
5. This Agreement shall enter into force upon signature
(at the date of the signature) by the duly authorized
representatives of the Member and the ITO. One signed copy
of the English (French) version of this Agreement shall be
deposited with the Director-General of the ITO and another GATT/CEA/W.1
page 12
copy with the Foreign Minister of
6. This Agreement shall terminate, if and when the Member
enters the Fund or withdraws from the ITO. Changes in this
Agreement may, at any time, be suggested by. the Member or
the ITO; such changes will become effective as soon as
agreed upon by both parties. GATT/CEA/W. 1
page 13
DRAFT "B"
SPECIAL EXCHANGE AGREEMENT
The Government of Country X and the International
Trade Organization
BEING DESIROUS of entering into a special exchange
agreement pursuant to Article 24 of the Havana Charter
HEREBY AGREE as follows:
Paragraph 1 - Purposes
The purposes of this Agreement are
(a) to establish a stable relationship between the
currency of Country X and the currencies of the other Members
of the International Trade Organization which are members of
the International Monetary Fund or have concluded special
exchange agreements with the Organization;
(b) to avoid competitive exchange depreciation;
(c) to assist in the establishment of a multi-lateral
system of payments in respect of current transactions; and
(d) to eliminate exchange restrictions which hamper
the growth of world trade.
Paragraph 2 - Par Value of Currency
(a) The par value of the currency of Country X shall
be expressed in terms of gold or in terms of the United
States dollar of the weight and fineness in effect on
July 1, 1944.
(b) Country X shall communicate to the Organization,
within ... days of the signature of this Agreement, the par
value of its currency based on the rate of exchange
prevailing on the sixtieth day before the entry into force
of this Agreement. Country X shall simultaneously
communicate a value, in terms of its currency, for each
separate currency, where such exists, in the territories in
respect of which it has accepted this Agreement under
Paragraph 19.
(c) The par value communicated by Country X shall be
the par value of its currency for the purposes of this
Agreement unless within ninety days of such communication
(1) Country X notifies the Organization that it regards the
par value as unsatisfactory, or (ii) the Organization GATT/CEA/W. 1
page 14
notifies Country X that in its opinion the par value cannot
be maintained without prejudice to the provisions and
purposes of this Agreement and to Members of the Organization.
When notification is given under (i) or (ii), the
Organization and Country X shall, within a period determined
by the Organization in the light of all relevant.
circumstances agree upon a suitable par value for the
currency of Country X.
Paragraph 3 - Gold Purchases based on Par Value
The Organization shall prescribe a margin above and
below the par value for transactions in gold. Country X
shall not buy gold at a price above the par value plus the
prescribed margin, or sell gold at a price below the par
value minus the prescribed margin.
Paragraph 4 - Foreign Exchange Dealings based on Parity.
The maximum and the minimum rates for exchange
transactions between the currency of Country X and the
currencies of other Members of the Organization (which are
also Members of the Fund or have concluded special exchange
agreements with the Organization) taking place within their
territories, shall not differ from parity
(i) in the case of spot exchange transactions, by
more than 1%; and
(ii) in the case of other exchange transactions, by a
margin which exceeds the. margin for spot exchange
transactions by more than the Organization
considers reasonable,
Paragraph 5 - Obligations regarding Exchange Stability
(a) Country X undertakes to collaborate with the
Organization to promote exchange stability, to maintain
orderly exchange arrangements with other Members of the
Organization, and to avoid competitive exchange alterations,
(b) Country X undertakes, through appropriate measures
consistent with this Agreement, to permit within its
territories exchange transactions between its currency and
the currencies of other Members of the Organization (which
are also Members of the Fund or have concluded special
exchange agreements with the Organization) only within the
limits prescribed under Paragraph 4. In the event that the GATT/CEA/W. 1
page 15
monetary authorities of Country XI for the settlement of
international transactions, freely buy and sell gold within
the limits prescribed by the Organization under Paragraph 3,
Country X shall be deemed to be fulfilling this undertaking.
Paragraph 6 - Changes in Par Value
(a) Country X shall not propose a change in the par
value of its currency except to correct a fundamental
disequilibrium.
(b) A change in the par value of the currency of
Country X may be made only on the proposal of Country X and
only after consultation with the Organization.
(c) When a change is proposed, the Organization shall
first take into account the changes, if any, which have
already taken place in the initial par value of the currency
of Country X as determined under Paragraph 2(b). If the
proposed change, together with all previous changes, whether
increases or decreases,
(i) does not exceed 10 of the initial par value,
the Organization shall raise no objection;
(ii) does not exceed a further 10% of the initial
par value, the Organization may either concur
or object but shall declare its attitude within
hours if Country X so requests;
(iii) is not within (i) or (ii) above, the Organization
may either concur or object but shall be entitled
to a longer period in which to declare its
attitude.
(d) A change in the par value, proportionate to a
uniform change in the par values of the currencies of members
of the Fund, made under Section 7 of Article IV of the
Articles of Agreement of the Fund, shall not be taken into
account in determining whether a proposed change falls within
(i), (ii) or (iii) of sub-paragraph (c).
(e) Country X may change the par value of its currency
without the concurrence of the Organization if the change
does not affect the international transactions of Members of
the Organization.
(f) Tho Organization shall concur in a proposed change
which is within the terms of (ii) or (iii) of sub-paragraph
(c) if it is satisfied that the change is necessary to GATT/CEA/W. 1
page 16
correct a fundamental disequilibrium, In particular,
provided it is so satisfied, it shall not object to a
proposed change because of the domestic, social or political
policies of Country X.
Paragraph 7 - Uniform Changes in Par Values
In the event that a uniform proportionate change in
the par values of the currencies of members of the Fund is
made under Section 7 of Article IV of the Articles of
Agreement of the Fund, Country X may change the par value
of its currency in the same proportion provided it So
notifies the Organization within ... days of the Fundfs
action.
Paragraph 8 - Separate Currencies Within the Territory of
Country X
In the event that Country X proposes a change in the
par value of its currency, it shall be deemed, unless it
declares otherwise, to be proposing a corresponding change
in the par value of the separate currencies of all
territories in respect of which it has accepted this
Agreement under Paragraph 19. It shall, however, be open
to Country X to declare that its proposal relates either to
the metropolitan currency alone or only to one or more
specified separate currencies or to the metropolitan
currency and one or more specified currencies.
Paragraph 9 - Avoidance of Restrictions on Current Payments
(a) Subject to the provisions of Paragraphsll(a) and
13, Country X shall not, except with the approval of the
Organization, impose restrictions on the making of payments
and transfers for current international transactions.
(b) Exchange contracts, which involve the currency of
Country X and- hich are contrary to its exchange control
regulations maintained or imposed consistently with this
Agreement, shall be unenforceable in the territories of any
Member of the Organization which is also a Member of the
International Mon:.;2ry Fund or has concluded a special
exchange agreement with the Organization. In addition, any
such Member of the Organization may, by mutual accord,
cooperate with Country X in measures. for the purpose of
making the exchange control regulations of either Member more
effective, provided that such measures and regulations are
consistent with this Agreement. - 44 - GATT/CEA/W.1
page 17
Paragraph 10 - Avoidance of Discriminatory Currency
Practices
Country X shall not engage in, or permit any fiscal
agent acting on its behalf to engage in, any discriminatory
currency arrangements or multiple currency practices excepts
as authorized under this Agreement or approved by the
Organization. If such arrangements and practices are engaged
in at the date when this Agreement enters into force Country
X shall consult with the Organization as to their progressive
removal unless they are maintained or imposed under -
Paragraph 11(a), in which case the provisions of Paragraph
11(c) shall apply.
Paragraph 11 - Transitional Period
(a) In the transitional period following the close of
the Second World War, Country X may, notwithstanding the
provisions of any other paragraph of this Agreement, maintain
and adapt to changing circumstances restrictions on
payments and transfers for current international transactions.
Country X hall, however, have continuous regard in its
foreign exchange policies to the purposes of this Agreement;
and, as soon as conditions permits it shall take all possible
measures to develop such commercial and financial arrangements
with other Merbers of the Organization as will facilitate
international payments and the maintenance of exchange
stability. In particular, Country X shall withdraw
restrictions maintained or imposed under this paragraph as
soon as it is satisfied that it will be able, in the absence
of such restrictions to maintain a position of equilibrium
in its balance of payments.
(b) Country X shall notify the Organization, within
days of the entry into force of this Agreement, whether It
intends to avail itself of the transitional arrangements In
sub-paragraph (a) or whether it is prepared to accept the
obligations of Paragraphs 9 and 10. In the event that Country
X avails itself of the transitional arrangements under sub-
paragraph (a), it shall notify the Organization as soon as it
is prepared to accept the above-mentioned obligations of
Paragraphs 9 and IC,
oIf "X" is a country whose territories were occupied
by the enemy during the Second World War, the words
"and introduce where necessary" should be inserted
after the word "circumstances". GATT/CEA/W.1
page 18
(c) Not later than March 1, 1950, and in each year
thereafter, Country X shall report to the Organization on
the restrictions still in- force under sub-paragraph (a).
Not later than March 1, 1952, and in each year thereafter,
if Country X still retains any restrictions inconsistent
with- Paragraphs 9 and 10, it shall consult with -the
Organization as to their further retention. The Organization
may, if it deems such action necessary in exceptional
circumstances, make representations to Country X that
conditions are favourable for the withdrawal of any
particular restriction, or for the general abandonment of
restrictions, inconsistent with the provisions of any other
paragraph of this Agreemenat, Country X shall be given a
suitable time to reply to such representations. If the
Organization finds that Country X persists in maintaining
restrictions which are inconsistent with the purposes of
this Agreement, the Organization may terminate this Agreements
Paragraph 12 - Controls of Capital Transfers
Country X may exercise such controls as are necessary
to regulate international capital movements, but may not
exercise these controls in a manner which will restrict
payments for current transactions or which will unduly delay
transfers of funds in settlement of commitments except as
provided in Paragraphs 11(a) and 13,
Paragraph 13 - Scarce Currencies
(a) A declaration by the Fund, under Article VII,
Section 3(a) of the Articles of Agreement of the Fund, that
a currency is scarce shall operate as an authorization to
Country X, after consultation with the Organization, to
impose temporarily limitations on the freedom of exchange
operations in the scarce currency. Subject to the provisions
of Paragraphs 3 and 4, Country X shall have complete
Jurisdiction in determining the nature of such limitations,
but they shall be no more restrictive than is necessary to
limit the demand for the scarce currency to the supply held by,
or accruing toa Country X; and they shall be relaxed and
removed as rapidly as conditions permit.
(b) Any authorization under sub-paragraph (a) shall
expire whenever the Fund formally declares the currency in
question to be no longer scarce, GATT/CEA/W.1
page 19
(c) In the event that Country X imposes restrictions
in respect of the currency of any other Member of the
Organization pursuant to the provisions of sub-paragraph (a),
Country X shall give sympathetic consideration to any
representations by that other Member regarding the
administration of such restrictions,
Paragrph 14 - Consultation Regarding Existing International
Agreements
Where under this Agreement Country X is authorized in
the special or temporary circumstances specified in this
Agreement to maintain or establish restrictions on exchange
transactions, and Country X has other engagements with
Members of the Organization entered into prior to this
Agreement which conflict with the application of such
restrictions, the parties to such engagements will consult
with one another with a view to making such mutually
acceptable adjustments as may be necessary
Paragraph 15 - Relations with non-Members
(a) Country X undertakes not to engage in, nor to
permit any fiscal agency acting on its behalf to engage in,
any transactions with a country, or with persons in the
territories of a country, which is not a Member of the Fund
or which has not concluded a special exchange agreement with
the Organization, which would be contrary to the provisions
or the purposes of this Agreement;
(b) Country X undertakes not to cooperate with such
country or with persons in the territories of such country
in practices which would be contrary to the provisions or
the purposes of this Agreement; and
(c) Country X undertakes to cooperate with the
Organization with a view to the application in its territories
of appropriate measures to prevent transactions with such
country or with persons in the territories of such country
which would be contrary to the provisions or the purposes of
this Agreement.
Paragraph 16 - Temporary Suspension
In the event that the Executive Directors of the Fund
decide, under Article XVI, Section 1, of the Articles of
Agreement of the Fund, to suspend the operation of any of
the provisions of Article IV, Sections 3 and 4, or Article XI,
Section 1, the corresponding provisions of this Agreement GATT/CEA/W.1
page 20
shall be suspended in a similar manner and for the same
duration of time.
Parapraph 17 - Furnishing of Information
(a) Country X shall furnish the Organization with such
information as it may require in order to discharge its
responsibilities under the Havana Charter, including national
data on the following matters:
(i) Official holdings at home and abroad of (1) gold,
(2) foreign exchange;
(ii). Holdings at home and abroad by banking and
financial agencies, other than official agencies,
of (1) gold, (2) foreign exchange;
(iii) Production of gold;
Civ) Gold exports and imports according to countries of
destination and origin;
(v) International balance of payments, including (1)
trade in goods and services, (2) gold transactions,
(3) known capital transactions, and (4) other
items;
(vi.) International investment position, i.e. investments
within the territories of Country X owned abroad
and investments abroad owned by persons in the
territories of Country X, so far as it is possible
to furnish this information;
(vii) National income;
(viii) Price indices, i.e. indices of commodity prices in
wholesale and retail markets and of export and
import prices;
(ix) Buying and selling rates for foreign currencies;
(x) Exchange controls, i.e. a comprehensive statement
of exchange controls in effect at the date when
this Agreement enters into force and details of
subsequent changes as they occur;
(xi) Where official clearing arrangements exists details
of amounts awaiting clearance in respect of
commercial and financial transactions, and of the
length of time during which such arrears have been
outstanding. - 47 - GATT/CEA/W.1
page 2.
(b) In requesting information, the Organization shall
take into consideration the ability of Country X to furnish
the data requested. Country X shall be under no obligation
to furnish information in such detail that the affairs of
individuals or corporations are disclosed. Country X
undertakes, however, to furnish the desired information in
as detailed and accurate a manner as is practicable, and,
so far as possible, to avoid mere estimates.
Paragraph 18 - Explanation of Terms
In interpreting the provisions of this Agreement, the
Organization shall be guided by the explanation of terms
contained in Article XIX of the Articles of Agreement of the
Fund.
Paragraph 19 - Territorial Application
By its signature of this Agreement, Country X accepts
it both on its own behalf and in respect of all its colonies,
overseas territories, all territories under its protection,
suzerainty or authority and all territories in respect of
which it exercises a mandate.
Paragraph 20 - Amendments
(a) In the event that the Articles of Agreement of the
Fund are amended. the Organization shall consult with Country
X to determine whether this Agreement requires consequent
amendment.
(b) Any proposal to introduce modifications in this
Agreement, whether emanating from Country X or the
Organization, shall be referred to the Executive Board.
Country X shall be entitled to be represented at any meeting
at which such a proposal is to be discussed and to participate
in the discussions.
Paragraph 21 - Entry into Force
This Agreement shall enter into force when it has been
signed on behalf of the Government of Country X and by the
Organization.
Paragraph 22 - Termination
In the event that the Board of Governors of the Fund
decide to liquidate the Fund, the obligations under this
Agreement shall cease to have force and effect as from the
date when the corresponding provisions of the Articles of
Agreement of the Fund cease to be binding upon the Members
of the Fund. |
GATT Library | gq283kf9534 | Committee of the Contracting Par-ties on Special Exchange Agreements | General Agreement on Tariffs and Trade, September 8, 1948 | General Agreement on Tariffs and Trade (Organization) | 08/09/1948 | official documents | GATT/CEA/1 and GATT/CEA/1-9 GATT/CEA/W.1-6 GATT/CEA.2/W.1-11 GATT/CEA/N.1-4 | https://exhibits.stanford.edu/gatt/catalog/gq283kf9534 | gq283kf9534_90310148.xml | GATT_145 | 133 | 936 | RESTRICTED
LIMITED B
GATT/CEA/1
8 September 1948
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
Committee of the Contracting Par-ties
on Special Exchange Agreements
Membership: Belgium
Burma
Ceylon
France
New Zealand
Pakistan
United. Kingdom
United States
Terms of Reference:
To examine the problem of Special Exchange Agreements
between the CONTRACTING PARTIES and those contracting
parties which are nor members of the International Monetary
Fund, and, in consultation with the Fund, make recommend-
ations to the CONTRACTING PARTIES with respect to:
(1) the time within which. those contracting parties
should become members of the Fund or, failing
that, enter into special exchange agreements
with the CONTRACTING PARTIES and
(2) the terms of a suitable exchange agreement under
Article XV, and to circulate draft agreement
to the contracting parties one month before the
Third Sossion. |
GATT Library | tn234vn3468 | Committee of the contracting parties on special exchangel exchange Agreements | General Agreement on Tariffs and Trade, October 20, 1948 | General Agreement on Tariffs and Trade (Organization) | 20/10/1948 | official documents | GATT/CEA/W.2 and GATT/CEA/1-9 GATT/CEA/W.1-6 GATT/CEA.2/W.1-11 GATT/CEA/N.1-4 | https://exhibits.stanford.edu/gatt/catalog/tn234vn3468 | tn234vn3468_90310157.xml | GATT_145 | 10,348 | 65,034 | -1-
RESTRICTED
GATT/CEA/W.2
20 October, 1948
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE:.DE
TTEE OF THE CONTRACTING PARTIES ON SPECIAL EXCHANGEL EX
EMENTSEME1
This document contains two drafAs, d anc B, oSpecial;cia
Exge Agreement ot serve avo &s the basis for discussion at the
meeting of CommitteetteG which is to be heldLondon_ m eoamunc-
ing November 1, 1948. Thesefdratts are tao seme as thope ao-
pearing An G.TA/CEO/W.1 after having been revisad to serve the
purposes of the Contracting Parties. The d itJ. column. on the
following pages contains the Provisions of the Articles of
agreement of the International Monetary Fund which correspond
to ahe breiclos andaparegraphs in the two drafts. SPECIAL EXCNAGE AGREEMENT
Draft A
The contracting parties to the General Agreement on Tariffs and
Trade acting: in Joint capacity (hereafter called the CONTRACTING PARTIES),
represented by their Chairman, and Country X (hereafter called. the
;.ember), represented by......
Considering that peragraph 6 of Article XV of the General Agreement
on Tariffs and Trade (hereaiter called the General Agreement) provides
that any contracting party which is not a member of the International
Monetary Fund (hereafter called. the, Fund) shall, within a time to be de-
termined by the CONTRACTINIG PARTIES after coneultation with the Fund, be-
come a member of the Fund, or, failing that, enter into a special exchabge
agreement with the CONTRACTING PARTIES:
Considerig that paragraph 4 of Article XV of the General Agreement
provides th t contracting parties shall not, by exchange action, frustrate
the intent ol the provisions of the Generl Agreement:
Agree as follows:
Article I - Exchange Stability and Orderly Exchange Arrangements n-ements
The uembea undert&kes to cooperatee CONTRACTING PARITES in A.LIRT i
ordsr to promotg exchanze stability, to maintain orderly exchange ar-
ranamongts umonz the contracting a rties vnd to aroid competitive ex-
ch&ane alterations. SPECIAL EXCHANGE AGREEMENT
Preamble
The. Government of Country X and the CONTRACTING PARTIES to tbe General
Agreement on Tariffs and Trade,
BEING DESIROUS of entering into a special exchange agreement pursuant
to Article XV o- the General Agreement,
HEREBY AGREE as follows:
Paragraph 1 - Purposes
The purposes of this Agreement are
(a) to establish a stable relationship between the currency of Country
X and the currencies of the other contracting parties to the General Agree-
ment on Tariffs and Trade which are memberss of the International Monetary
Fund or have concluded special exchange agreements with the CONTRACTING
(b) to ovoid competitive exchange depreciation;
(c) to assist in the cstablishment of a mltuateral system. of pay-
monts a in respect of current transactions; and
(d) to eliminate exchange restrictions which hamper the. growth of
world trado. ARTICLES OF AGREEMENT OF THE INTERNATIONAL MONETARY :FUND - 2-
Extract of Corresponding Provisions
Article .. Purposes
The purposes of the International Monetary Fund are:
(i) To promote international monetary cooperation through a
permanent institution which provides the machinery for
consultation and collaboration on international monetary
problems.
(ii) To facilitate the expansion and balanced growth of
international trade, and to contribute thereby to the
promotion and maintenance of high levels of employment
and real income and to th development of the productive
resources of all members as pr mary objectives of
economic policy.
(iii) To promote exchange stability, to maintain ord rly ex-
change arrangements among members, and to avoid com-
petitive exchange depreciation.
(iv) To assist in the establishment of a multilateral system
of payments in respect of current transactions between
members and in the elimination of foreign exchange
restrictions which hamper the growth of world trade.
(v) To give confidence to members by making the Fund's re-
sources available to them under adequate safeguards,
thus providing them with opportunity to correct maladjust-
ments in their balance of payments without resorting to
measures destructive of national or international
prosperity.
(vi) In accordance with the above, to shorten the duration
and lessen the degree of disequilibrium in the inter-
national balances of payments of members
The Fund shall be guided in all its decisions by the purposes
set forth in this Article. -53- SPECIAL ECXHANGE AGREEMNT
Draft A
Article II - Expression of Par Value
1-. The present par value of the Member's currency expressed in terms of
gold [and in terms of United Statcs dollars of the weight and fineness in
effect on July 1, 19447 is the following:1]
gold
X = U.S. dollars
2. The CONTRACTING PARTIES will keep the Member currently informed on
the par values of the currencies of the other contracting parties.
1] If the Special Exchange Agreement covers also separate currencies in
tarritories undr the authority of the Member, the Agreement will
be adjusted accordingly.
A'rticle III - Gold Transactions Based on Par Values
T- ;ier bor shall not buy gold at a price above par value plus the ,
margin permiesible under this Article, or sell gold at a price below par
value minus the margin permissible under this Article. This margin above
and below par value shall be as prescribed by the Fund for its members
for such transactions under paragraph 2 of Article IV, of the Articles of
Agreement of the International Monotary Fund. The CONTRACTING PARTIES
will inform the Member on the: margins for gold transactions precribed by
the Fund. -54 --
SPECIAL ECHANGE AGREEMENT
Draft B
Paragraph 2 - Par Value of Currency
(a) The par value of the currency of Country X shall be expressed in
terms of gold or in terms of the United States dollar of the night and
fineness in effect on July 1, 1944.
(b) Country X shall communicate to the CONTRACTING PARTIES, within....
days of the signature of this Agreemcnt, the par value of its currency based
on the rate of exchange -prevailing on the sixtieth day before the entry into
force of this Agreemnt . Country X shall simultaneously communicate a value,
in terms of its currency, for cach separate currency, whore such exists, in
th, torritories in respect of which it has accopted this Agrecment under
Paragraph 19.
(c ) The pa r value communicated by Country X shall be the par value of
its currency for the purposees of this Agreement unless within... days of
such communication (i) Country X notifies the CONTRACTING PARTIES that it
regards the par value as unsatisfactory, or (ii ) the CONTRACTING PARTIES
notifry Country X that. in their opinion the. par value cannot be maintained
Without prejudice to the provisions and purposes of this Agreement and to
contracting parties. when ivrcn notification is given under (i) or (ie), tho
CTING PARTIES andTI..S y oushtr X wiithin a pein a-orier metc.rnined by the
CTING PARTIES in .ITIS the light of all relevant circumstances, agree u-on a
suiparle ncr value for the currency of Cyuntrr X.
aph 3 - Gold Transactions based on par Valule n Par
NTRACTING PARTIES S JP.^ shescribe a maginmargin andve Fmw belov the
lue for L, ansactionsctio n in gold. Counthall slhll not buy gold at price
above parhe oar valse pluE the prescmarginmn.rrie or sollagoad &t & price
bheopare.alue vt--lu minus the prescmargin.mcrgin ARTICLES OF AGREMMENT OF THE INTERNATIONAL MONETARY FUND
Extract of Corresponding Provisions
Art.IV.SEC.1 Expression of Par Values
(a) The par value of the currency of each member shall be
expressed in terms of gold as a common denominator or in terms of'
the United States dollar of the weight and fineness in effect on
July 1, 1944.
Article XX. SEC. 4. Initial Determination of Par Values
(a) When the Fund is of the opinion that it will shortly
be in a position to begin exchange transactions, it shall so
notify the members and shall request each member to communicate
within thirty Hays the par value of its currency based on the
rates of exchange prevailing on the sixtieth day before the
entry into force of this Agreement,
(g) A member Communicating to the Fund a par value for
the currency of its metropolitan territory shall simultaneously
communicate a value, in terms of that currency, for each separate
currency, where such exists, in the territories in respect of
which it has accepted this Agreement under Section 2(g) of this
Article,
(b) The par value communicated by a member whose metro-.
politan territory has not been occupied by the enemy shall be
the par value of that member's currency for the purposes of this
Agreement unless, within ninety days after the request referred
to in (a) above has been received, (i) the member notifies the
Fund that it regards the par value as unsatisfactory, or (ii)
the Fund notifies the member that in its opinion the par value
cannot maintained without causing recourse to the Fund on the
part of that member or others on a scale prejudicial to the Fund
and to members. When notification is given under (i) or (ii)
above, the Fund and the member shall, within a period determined
by the Fund in the light of all relevant circumstances, agree
upon a suitable par value for that currency. If the Fund and
the member do not agree within the period so determined, the
member shall be deemed to have withdrawn from the Fund on the
date when the period expires,
Article IV. SEC. 2. Gold Purchases Based on Par Values
The Furd shall prescribe a margin above and below par value
for transactions in gold by members, and no member shall buy
gold at a price above par value plus the prescribed margin, or
sell gold at a price below par value minus the prescribed margin. SPECIAL EXCHANGE AGREEMENT
Draft A
Article IV -Foreign Exchange Dealings Based on Partiy
The maximum and the minimum rates for exchange transactions between
the currency of the Member and the currencies of other contracting parties
taking place withn the Member's territories shall not differ from parity:
(i) in c c of spot ( IT) transaction,s by more than ls. and
(ii) in case of other exchange transactions, by a margin which ex-
ceeds the marign for spot exchange transactiosn by more than morc, thia
CTING PARTIE, after consultation with the Fund.itb thk; T
easonable. on.blc.
.rticlc V - OblRegarding PlgEr:nge ExtabilitySAbiity
ber undertakes lnot ot permit wsthin itsspermit within its territoruyexchangenAc
nsactions between its currency and the currencies of other contractin g~rvi triCting
es which orcedd the limits preseribed [indicated] in Arti-0 tC.IC7 in j'
cl_: 1 o_ this he monetary authorities of the Member, in . th; cb -? in.
buy and sell gold for the settlemetn of ionternationaltrams---,.I trt 71-
n the limits prescribed in Arjklticle III of this Agreement hies rr t, thc
be docmed to be fulfilling this undertaking.thiz undirt_.na.
nges in Par Valuenjz;s iL i - Pr _'C
Member's currency may be changed onlyon the pro-;J bu cP. tn; n onI
nd thbe Member shall not propoce a changbe in thepar o6f- & n.tn , in tocr
a fundamental discquilibrium and alter consultation uilibri;fal -ndd &ttr cuit tion
'i-~jh thi COZe..QTIiwing additional conditins:follovwring &cd( i.tiontJ con¢i
ith all other change effected since the thzr cbtn-:.. ._ Lctd 3incc th
ent m whether increases or decreases, doesntimr i or d.ecrcc,:, do
the CONTRACTING PARTIES shall raise no T 1I;.,11-T i -n
o 4'-ction to thim ch.na
eed a further ten per cent of the par ed ed furtim;r t n r ;nt ol
may either concur or object. But shall de-tbir concur or ob ic;, but d
......if the member so requests:t.li... if th r ;.; -57- SPECIAL EXCHANGE AGREEMENT
Paragraph 4 - Foreign Exchange Dealings based on parity
The maximum and the minimum .rates for exchange transactions between the cOn the
currency of CX and the currencies of other contractinhg artie pewhcih (¶-ThiC
bers of the Find or have concluded special edxchange agreement with r3cMcO. Tzith
NG PARTIES .I: ng place within theri torritories. Shall not rics, shtil nt
rity--r fom oc rit
se of n th. exchangle poansaction. tr:;more than by roand h-n 1%; n.-n
se sof other exchange transactions, by a margin which ex-m rein ,bich c
in for spomaexchange transactins by more thantthe nz by mb-C th&
RTIES consider reasonable.on-idicr r_ .s
Obligations regarding Exchange Stability--Chzn.® _t~b
undertakes ot collaborate with the CONTRACTING PARTIES ITRCTIiTS P.LR
haangemote cxoch:-o maintain orderly exchange arrangements nQc r~rrFngcmc
ng parties, and to avoid competitive exchange alterations.tivc cxcha.n;c
undertakes, through appropris to measures consitent with ros consistent
, to permit within its torritories exchange transactins be a.nzc tr..nbe-
encey and the currencies of tcurecn.qcicac oth[artoes .wing oprtice (vhich
the Fund or have concluded special exchange agreements withh.l c cr.jn cr
G PARTIES .oI within Z ;ellimits prescribed under Paragraph ndcPartzr&.oh 4.
hat the monotary authorities of c~uthoritL.s o Couetsettlement h; zottlcmicnt
al transections, freely buy nad sell gold within the limits ithin tho lirnts
he CONTRACTING PARTIES junder Paragraph 3, Country X shall bw (.ountry Z Wn be
filling this undertaking.thbis undurtv.ki
; & s rto±E 6 - Car Value G. in P 1 Vu. u
shall not propose a cahnge in the par value of its phc. nar ve-l11o cur-
correct a fundemental disequilibn6onAtcl aicsouirium.
the par value of the cucrevEl-' ofountry X may be L'zntry X rn&sy
proposal of Country X and only afteer r:st &ationnl aconzultritio with
PARTIES.:..cTIL'; PJLID.
e is proposed, the CONTRACTING PARTIES shall first G P -FS T Whl first
change, if any, which have already taken place in ch h &'r- lrC..dy t2c ce in
e currency of Country X as determined under Parsuntry 'E dctcrmi-nd under P-
change, togetherwith akll provious changes.,Ict'.~-_r;i-.ith F-11 norc chan~ee,
wiiot:rxr -n~cr&.z^ or aocr..s,
ial per value, the CONTRACTINBG tho initial oz. r v'al-c, thc C\;R.
2'.RTlhS - bJll ri. ic,~ no o cc
of the initial per value, the CON-t z r 1 , of th. initial p, r rcluue
r object, but shall declaretA;:r ;-concur o0: object, but z~hal
Country X so requesta:t.i- ..... 1o2'r ii C_.&nutr. Z" so -58- - 4-
ARTICLES OF AGREEMENT OFTHE INTERNATIONAL MONETARY FUND
Extract of Corresponding Provisions
Article IV SEC. 3. Foreign Exchange Dealings Based on Parity
The maximum and the minimum rates for exchange trans-
actions between the currencies of members taking place within
their territories shall not differ from parity.
(i) in the case of spot exchange transactions, by more
than one percent; and
(ii) in the case of other exchange transactions, by a
margin which exceeds the margin for spot exchange
transactions by more than the Fund considers
reasonable.
Article IV. SEC. 4. Obligations Regarding Zxchange Stability
(a) Each member undertakes to collaborate with the Fund
to promote exchange stability, to maintain orderly exchange
arrangements with other members, and to avoid competitive ex-
change alterations.
(b) Each member undertakes, through appropriate measures
consistent with this Agreement, to permit within its territories
exchange transactions between its currency and the currencies
of other members only within the limits prescribed under Section
3 of this Article. A member whose monetary authorities, for the
settlement of international transactions in fact freely buy and
sell gold within the limits prescribed by the Fund under Section
2 of this Article shall be deemed to be fulfilling this under-
taking.
Article IV. SEC. 5. Changes in Par Values
(a) A member shall not propose a change in the par value
of its currency except to correct a fundamental disequilibrium.
(b) A change in the par value of a member's currency may
be made only on the proposal of the member and only after con_
sultation with the Fund.
(c) When a change is proposed, the Fund shall first take
into account the changes, if any, which have already taken place
in the initial par value of the member's currency as determined
under Article XX, Section 4. If the proposed changes together
with all previous changes, whether increases or decreases,
(i) does not exceed ten percent of the initial par value,
the Fund shall raise no objection,
(ii) does not exceed a further ten percent of the initial
par value, the Fund.may either concur or object, but
shall declare its attitude within seventy-two hours
if the member so requests;
I I
_ SPECIAL EXCHANGE AGREEMENT
(c) If the change is not within (a) or (b) above, the CONTRACTING
PARTIES no either concur or object, but shall be entitled to a longer
period in which to declare their attitude. If the CONTRACTING PARTIES ob-
ject to a change they shall communicate to the Member the reasons for their
objection.
(d) The CONTRACTING PARTIES shall concur in a change of the par value
if they are satisfied that the change is necessary to correct a fundamental
disequilibrium. In particular, provided they are so satisfied, they shall
not object to a proposed change because of the domestic social or political
policies of the member proposing the change;
(e) If the Fund decide, in accordance with Article IV, Section 7 of
the Articles of Agreement of the International Monetary Fund, uniform pro-
portionate changes in t :e par values of the currencies of Fund members, the
Member will change its par value proportionately, unless it informs the
CONTRACTING PARTIES within seventy-two hours after it has been notified tV
the CONTRACTING PARTIES of the Fud's action that it does not wish the par
value of its currency to be changed.
(f) In determining whether changes in par value fall within the limits
mentioned in Sections (a), (b) and (c) of this Article, uniform changes in
par value under Section (e) of this Article shall not be taken into account.
Article VII - Avoidance of Restrictions on on Current Payments
1. Except as otherwise provided in this Agreement the Member shall not im-
pose restrictions on the making of payments and transfers for current inter-
national transactions without express prior approval of the CONTRACTING
PARTIES. -60 -
SPECIAL EXCHANGE AGREEMENT
Draft B
(iii) is not within (i) or (ii), the CONTRACTING PARTIES may either
concur or object, but shall be entitled to a longer period in
which to declare their attitude.
(f) The CONTRACTING PARTIES shall concur in a proposed change which
is within the terms of (ii) or (iii) of sub-paragraph (c), if they are
satisfied that the change is neccessary to correct a fundamental disequi-
librium. In particular, provided they are so satisfied, they shall not
object to a proposed change because of the domestic, social or political
policies of Country X.
Paragraph 7 - Uniform Changes in Par Values
In the event that a uniform proportionate change in the par values of
the currencies of members of the Fund is made under Section 7 of Article IV
of the Articles of Agreement of the Fund, Country X may change the par
value of its currency in the same proportion provided it so notifies the
CONTRACTING PARTIES within .... days of the Fund's action.
Paragrah 6 - Change in Par Value
(d) A change in the par value made under Paragraph 7 shall not be
taken into account in determining whether a proposed change falls within
(i), (ii) or (iii) of sub-paragraph (c).
(e) Country X may change the par value of its currency without the
concurrence of the CONTRACTING PARTIES if the change does not affect the
international transactions of contracting parties.
Paragraph 8 - Setarate Currencies Within the Territory of Country X
In the event that Country X~proposes a change in the par value of its
currency, it shall bo doomed, unless it declares otherwise, to be proposing
a corresponding change in the par value of the separate currencies of all
territories in respect of which it has accepted this Agreement under Para-
graph 19. It shall, however, be open so Country X to declare that its
proposal relates either to tho metropolitan currency alone, or on37 to onm
or more specified separate currencies, or to the metropolitan currency and
one or more specified separate currencies.
Paragraph 9 - Avoidance of Restrictions on Current Payments
(a) Subject to the provisions of Paragraphs 31 (a) and 13 (a),
Country X shall not, except with the approval of the CONTRACTING PARTIES,
impose restrictions on the making of payments and transfers for current
international transactions. - 61 - -5-
ARTICLES OF AGREEMENT OF THE INTERNATIONAL MONETARY FUND
Extract of Corresponding Provisions
(iii) is not within (i) or (ii) above, the Fund may either
concur or object, but shall be entitled to a longer
period in which to declare its attitude.
(f) The Fund shall concur in a proposed change which is
within the terms of (c) (ii) or (c) (iii) above if it is satis-
fied that the change is necessary to correct a fundamental
disequilibrium, In particular, provided it is so satisfied, it
shall not object to a proposed change because of the domesticz.,-
social or political policies of the member proposing the change.
SEC. 7, Uniform Changes in Par Values
Notwithstanding the provisions of Section 5 (b) of this
Article, the Fund by a majority of the total voting power may
make uniform proportionate changes in the par values of the
currencies of all members, provided each such change is approved
by every member which has ten percent or more of the total of the
quotas. The par value of a member's currency shall, however,
not be changed under this provision if, within seventy-two hours
of the Fund's action, the member informs the Fund that it does
not wish the par value of its currency to be changed by such
action.
SEC, 5. Changes in Par Values
(d) Uniform changes in par values made under Section 7 of
this Article shall not be taken into account in detcrming whether
a proposed change falls within (i), (ii), or (iii) of (C) above.
(e) A member may change the par value of its currency
without the concurrence of the Fund if the change does not affect
the international transactions of members of the Fund.
SEC. 9. Separate C,.urrencies within a Member's Territories
A member proposing a change in the par value of its cnr-
rency shall be deemed, unless it declares otherwise, to be
proposing a corresponding change in the par value of the
separate currencies of all territories in respect of which it
has accepted this Agreement under Article XX, Section 2 (g)o It
shall, however, be open to a member to declare that its proposal
relates either to the metropolitan currency alone, or only to
one or more specified separate currencies, or to the metropolitan
currency and one or more specified separate currencies.
Article VIII. SEC. 2. Avoidance of Restrictions on Current
Payments
(a) Subject to the provisions of Article VII, Section 3
(b), and Article XIV, Section 2, no member, shall, without the
approval of the Fund, impose restrictions on the making of pay-
ments and transfers for current international transactions* SPECIAL EXCHANGE AGREEMENT
Draft A
2. The Member may exercise such controls as are necessary to regulate
international capital movements, but the Member shall not exercise these
controls in a manner which will restrict payments for current transactions
or which will unduly delay transfers of finds in settlement of commitments
subject to the provisions of Article VIII (1) (2) and (3) and Article X
of this Agreement.2]
3. The Member shall not engage in or permit any of its fiscal agencies
to engage in any discriminatory currency arrangements or multiple currency
practices except as authorized under this Agreement or approved by the
CONTRACTING PARTIES.
4. The Member agrees not to enforce in its territories exchange contracts
which involve the currency of any other contracting party and which are
contrary to the exchange control regulations of that contracting party
maintained or imposed consistently with the Articles of Agreement of the
International Monetary Fund or a Special Exchange Agreement. In addition,
the Member may, by mutual accord with another contracting party, cooperate
in measures for the purpose of making the exchange control regulations of
either contracting party more effective, provided that such measures and
regulations are consistent with the Articles of Agreement of the Inter-
ii..tional Monetary Fund or a Special Exchange Agreement.
5. Payments for current transactions in this Agreement means payments
which are not for the purpose of transferring capital, and includes,
without limitation:
(a) All payments due in connection with foreign trade, other current
business, including services, and normal short-term banking and
credit facilities;
(b) Payments due as interest on loans and as not income from other
investments;
g/Alternative for Article VII, Section 2: "The Member may exercise such
controls as are necessary to regulate international capital movements, but
the Member shall not exorcise these controls in a manner which will re-
strict or unduly delay payments and transfers for current transactions." -63- SPECIAL EXCHANGE AGREEMENT
Draft B
Paragraph 12 - Controls of Capital Transfers
Country X may exercise such controls as are necessary to regulate
international capital movements, but flay not exercise these controls In a
manner which will restrict payments for current transactions or which will
unduly delay transfers of funds in settlement of commitments, except as
provided in Paragraphs 11(a) and 13(a).
Paragraph 10 - Avoidance of Discriminatory Currencz Practices
Country X shall not engage in, or permit any fiscal agent acting on
its behalf to engage in, any discriminatory currency arrangements or multiple
currency practices except as authorized under this Agreement or approved
by the CONTRACTING PARTIES. If such arrangements and practices are engaged
in at the date when this Agreement enters into force Country X shall consult
with the CONTRACTING PARTIES as to their progressive removal unless they are
maintained or imposed under Paragraph 11(a), in which case the provisions
of Paragraph 11(c) shall apply.
Paragraph 9
(b) Exchange contracts, which involve the currency of Country X and
which are contrary to its exchange control regulations maintained or imposed
consistently with this Agreement, shall be unenforceable in the territories
of any contracting party which is a member of the Fund or has concluded a
special exchange agreement with the CONTRACTING PARTIES. In addition, any
such contracting party may, by mutual accord, cooperate with Country X in
measures for the purpose of making the exchange control regulations of
either contracting party more effective, provided that such measures and
regulations are consistent with this Agreement.
Paragraph-18 - Explanation of Terms
In interpreting the provisions of this Agreement, the CONTRACTING
PARTIES shall be guided by the explanation of terms contained in
Article XIX of the Articles of Agreement of the Fund. -64- -6-
ARTICLES OF AGREEMENT OF THE INTERNATIONAL MONETARY FUND
Extract of Corresponding Provisions
Article VI. SEC. 3, Controls of capital transfers
Members may exercise such controls as are necessary to
regulate international capital movements, but to member may
exercise these controls in a manner which will restrict payments
for current transactions or which will unduly delay transfers of
funds in settlement of commitments, except as provided in
Article VII, Section 3 (b), and in Article XIV, Section 2.
Article VIII, SEC. 3. Avoidance of Discrirminatory currency
Practices
No member shall engage ins or permit any of its fiscal
agencies referred to in Article V, Section 1, to engage in, any
discriminatory currency arrangements or multiple currency
practices except as authorized under this Agreement or approved
by the Fund. If such arrangements and practices are engaged in
at the date when this Agreement enters into force, the member
concerned shall consult with the Fund as to their progressive
removal unless they are maintained or imposed under Article XIV,
Section 2, in which case the provisions of Section 4 of that
Article shall apply.
Article VIII. SEC 2,
(b) Exchange contracts which involve the currency of any
member and which are contrary to the exchange control regulations
of that member maintained or imposed consistently with this
Agreement shall be unenforceable in the territories of any
member. In addition, members may, by mutual accord, cooperate
in measures for the purpose of making the exchange control
regulations of either member more effective, provided that such
measures and regulations are consistent with this Agreement,
Articles. explanation of Terms
In interpreting the provisions of this A.3reement the Fund
and its members shall be guided by the following:
(i) Payments for current transactions means payments
which are not for the purpose of transferring capital, and in-
cludes, without limitation:
(1) All payments due in connection with foreign trade,
other current business, including services and normal
short-term banking and credit facilities; SPECIAL EXCHANGE AGREEMENT
Draft A
(e) Payments of moderate amount for amortization of loans or for
depreciation of direct investments.
(i) Moderate remittances for family living expenses.
6. The CONTRACTING PARTIES may, at their own initiative or at the request
of the Member, after consultation with the Fund and the Member, determine
whether certain specific transactions are to be considered current trans-
actions or capital transactions.
Article VIII - Scarce Currency
1. The Member is authorized to impose temporarily, after consultation
with the CONTRACTING PARTIES, limitations on the freedom of exchange
operations in a currency which has formally been declared scarce by the
Fund in accordance with Article VII, Section 3 (a) of the Articles of
Agreement of the Intarnational Monetary Fund.
2. Subject to the provisions of Articles IV and V of this Agreement
the Member shall have complete jurisdiction in determining the nature of
such limitations.
3. These limitations shall not be more restrictive than is necessary
to limit the demand for the scarce currency to the supply held by, or
accruing to, the Member. The limitations shall be relaxed and removed
as rapidly as conditions permit. The authorization here mentioned shall
expire whenever the Fund formally declares the currency in question to
'.e no longer scarce.
4. If the Member is imposing limitations in accordance with Section 1 of
this Article it shall give sympathetic consideration to any representations
by any other contracting party regarding the administration of such restric-
tions. -66- SPECIAL EXCHANGE AGREEMENT
Draft B
Paragaraph 13 - Scarce Currencies
(a) A declaration by the Fund, under Article VII, Section 3 (a) of
the Articlesof Agreemont of the Fund, that a currency is scarce shall
operate as an authorization to Country X, after consultation with the CON-
TRACTING PARTIES, to impose temporarily limitations on the freedom of
exchange operations in the scarce currency. Subject to the provisions of
Paragraphs 4 and 5, Country X shall have complete jurisdiction in determin-
ing the nature of such limitations, but they shall be no more restrictive
than is necessary to limit the demand for the scarce currency to the supply
held by, or accruing to, Country X; and they shall be relaxed and removed
as rapidly as conditions permit.
(b) Any authorization under sub-paragraph (a) shall expire whenever
the Pund formally declares the currency in question to be no longer scarce.
(c) In the event that Country X imposes restrictions in respect of
the currency of any other contracting party pursuant to the provisions of
sub-paragraph (a), Country X shall give sympathetic consideration to any
representations by that other contracting party regarding the administration
of such restrictions.
(d) The contracting parties shall not invoke the obligations of any
engagement entered into with Country X prior to this Agreement in such a
manner as will prevent the operation of the provisions of this paragraph. -67.- -7-
ARTICLES OF AGREEMENT OF THE INTERNATIONAL MONETARY FUND
Extract of Corresponding Provisions
(2) Payments due as interest on loans and, as net income
from other investments;
(3) Payments of moderate amount for amortization of loans
or for depreciation of direct investments;
(4) Moderate remittances for family living expenses
The Fund mays after consultation with the members concerned
determine whether certain specific transactions are to be con-.
sidered current transactions or capital transactions
Article VII. Scarce Currencies
SEC. 3. Scarcity of the Fund's Holdings
(a) If it becomes evident to the, Fund that the demand for
a member's currency seriously threatens the Fund's ability to
supply that currency, the Fund, whether or not it has issued a
report under Section 1 of this Article) shall formally declare
such currency scarce and shall thenceforth apportion its existing
and accruing supply of the scarce currency with due regard to
the relative needs of members, the general international economic
situation. and any other pertinent considerations. The Fund
shall also issue a report concerning its action.
(b) A formal declaration under (a) above shall operate
as an authorization to any member; after consultation with the
Fund, temporarily to impose limitations on the freedom of ex-
change operations in the scarce currency. Subject to the pro-
visions of Article IV, Sections 3 and 4, the member shall have
complete Jurisdiction in determining the nature of such limita-
tions, but they shall be no more restrictive than is necessary
to limit the demand for the scarce currency to the supply held
by, or accruing to, the member in question; and they shall be
relaxed and removed as rapidly as conditions permit..
(c) The authorization under (b) above shall expire when-
ever the Fund formally declares the currency in question to be
no longer scarce,
SEC, 4. Administration of restrictions.--Any member im-
pesing restrictions in reset of the currency of any other
member pursuant to the provisions of section 3 (b) of this Article
shall give sympathetic consideration to any representations by
the other member regarding the administration of such restrictions1
SEC. 5. Effect of other international agreements on
restrictions.--Members agree not to invoke the obligations of
any engagements entered into with other members prior to this
Agreement in such a manner as will prevent the operation of the
provisions of this Article. -62-
SPECIAL . C.iQ ; AGREEMENT
Draft A.
Article Ix - Convertibility of Balances Held by Other Contracting Parties
1. The Member shall buy balances of its currency held by another con-
tracting .arty if the latter in requesting the purchase represents:
(> ) that the balances to be bought have been recently acquired as a
result of current transactions, or
( ) that their conversion is needed for making payments for cut-
rent transactions.
2. The Member shall have the option to pay either in the currency of the
contracting party making the request or in gold.
3. The obligations under Section. 1 of this Article shall not apply inso-
far Cs the Member r has reetricted convertibility of such balances consist-
ently with Article VII (1) and (2), and Article VIII (1) of. this Agreement.
or when the balances have accumulated. as a. result of transactions effected
b`fore the Member remove the transitional arrangements maintained under
Article X of this Agreement, or -when the balances have been acquires con-
trary to the exchange control regulations of the Member or when the cur-
rency of th; contracting party reouesting the purchase has been declared
by the Fund. scarce under article VII, Seiction 3 ( ) of the Articles of
Agreement of the International Monetary Fund.
Article X - Transitional Arrangements
1. In the. post-war transitional period the Member may notwithstanding
the provisions of any other articles of this Agreement, maintain and
adapt to changing circumstances [and introduce where neecssary] re-
3] In a special exchange agreement concluded. with a contracting )arty
whose territory has been occupited by the enemy the passage in
brackets may be inserted.. -69- SPECIAL EXCHANGE AGREEMENT
Paragrah 11 - Transitional Period
(a) In the transitional period following the close of the Second
World War, Country X may, notwithstanding the provisions of any other
paragraph of this Agreemcnt, maintain and adapt to changing circumstances
restrictions on paymernts and transfers for. current international trans-
actions. Country X shall, however, have continuous regard in its
foreign exchange policies to the; purposes of this Agreement and, as
soon as conditions permit, it shell take all pssible measures to develop
such commercial and financial arrangements with other contracting parties
as will facilitate international paymetns and the maintenance of exchange
stability. In particular, Country X shall withdraw restrictions main-
tained or imposed under this paragraph as soon as it is satisfied that
it will be able, in the absence of such restrictions, to maintain a posi-
tion of equilibrium in its balance of payments. - 8 -
ARTICLES OF AGREEMENT OF THE INTERNATIONAL MONETARY FUND
Extract of Corresponding Provisions
articlee VIII. SEC.4. Convertibility of foreign-held balances.
(a) Each member shell buy balances of its currency held by
another member if the latter, in requeiting the purchase, repre-
sents
(i) that the balance to be bought have been recently ac-
quired as a result of current transactions; or
(ii) that their conversion is needed for making payments for
current trvans actions.
TuJe buying member shlll hLve thfi option to p.y either in the
currency of the member maaking the request or in gold.
(b) The obligation in (c.) above shall not apply
(i) when the convertibility of the balances has been re-
stricted consistently with Section 2 of this Article,
or Article VI, Section 3; or
(ii) when the balances have a.cumulated as a result of
transactions effected before the removal by a member
of restrictions maintained or imposed under Article
XIV, Section 2; or
(iii) when the balances have been acquired contr ry to the
exchange regulations of the member which is asked to
buy them; or
(iv) when the currency of the member requesting the purchase
has been declared scarce under aticle VII, Section 3
(a.); or
(v) when the member requested to make the purchase is for
any reason not entitled to buy currencies of other
members from the Fund for its own currency.
Article XIV. Transitional. Period
SEC.2. Exchange restrictions.-In the post-war transition-
al period members mey, notwithstanding the provisions of any
other articles of this Agreement maintain and adept to changing
circumstancse (and, in the case of members whose territories
have been occupied by the enemy, introduce where necessary)
restrictions on payments and transfers for current international
transactions. Members shall, however, have continuous regard in
their foreign exchange policies to the purposes of the fund;
and, as soon as. conditions permit, they shall take all possible
measures to develop such commercial and financial arrangements
with other members as will facilitate international payments end
the maintenance of exchange stability. In particular, members
Shall withdraw restrictions maintained by imposed under this
Suction as soon as they are satisfied that they will be able, in
the absence of such restrictions, to settle their belance of
payments in a manner which will not unduly encumber their access
to the resources of the Fund. SPEICAL EXCHANGE AGREMEENT
Draft ,
strictions on payments and transfers for current international trans-
actions.4] The Member shall, however, have continuous regard in its for-
eign exchange policies to the purposes of the General Agreement and of
this Agreement, and as soon as conditions permit, it shall take all pos-
sible measures to develop such commercial and financial arrangements with
other contracting parites which will facilitate international payments
and the maintenance of exchange stability. If the Member still retains
these transitional arrangements on or after March 1, 1952, it shall con-
sult et that time, and annually thereafter with the CONTRACTING PARTIES
s to their further retention.
2. THE CONTRACTING PARTIES .., it they deem such action necessary in
exceptional circumestanccs, make representations to the Moreover that-con-
ditions are favorable for the withdrawal of any particular exchange re-
striction, or for the general abandonment of exchenge restrictions incon-
sistent with the provisions of any other article of this agreement on the
; .., r .. T c... L~c1htT . be given & suitable time to re_,)ly to
such rrIentttions. |_ *.e CONTRACTING PARTIES S _i d ../ tla tue Member
persists in maintaining exchange restrictions contrary to its obligations
under this Agreement or the General Agreement , the provision of Article
XIV, C tiZ., 3 'L this ,- "Z11 e apply.
3. T; . 11 nLztify the CONTRACTING PARTIES as soon as it is pre-
-.>r._.' to remove all exchange restrictions maintained under this Artiele.
-4/ Alternative for the first sentence of Article X: "During the post-
war transitional period the Member may. institute, maintain or intensi-
fy restrictions on the making of payments and transfers for current
international transactions to the extent necessary (i ) to forestall
the imminent threat of, or to stop, a serious decline in its monetary
reservesx, or (ii ) if the Member has very low monetary reserves, to
achieve a reasonable rate of increase in its reserves. Due regard
shall be paid in either case to any special factors which may be af-
facting the Member's reserves or need for reserves, including, where
special external credits or other resources are available to it, the thr
to provide for the appropriate roe usc of such credits or reces."s n
is wording i-nrresponds with Article XE AII (2) (a) of thATT.i2)-
Jhe findings of the CONTRACTING PARTIES wi'REll based on the deter-tor
ation ion ohb eh Fuas c toe wehthre thmber'sbactiontio is an &cdorc-
e with the terms of the Special Exchange Agreement pursuant ot to
|rti XV_ Z (rf oZethATGLIT.
,rle XI - Communication of Views to Contracting Parties rti
CONTRACTION PARTIES shall at all times have the right ot com-iht
icate their views informally to the Member on any matter arising under &r
s Agreement. f.t.
- -72- SPECIAL EXCHANGE AGREEMENT (!) Country X shall notify the CONTRACTING PARTIES, withing ....days
of the entry into force of this Agreement, whether it intends to avail it-
self of the transitional arrangements -in sub-paragraph (a), or .whether it
is prepared to accept the obligations of Paragraphs 9 and- 10. In the event
that Counters X avails itself of the transitional arrangements under sub-
paragraph (a). it shall notify the CONTRACTING PARTIES as soon as it is
prepared to accept the accept the above-mentionod obligations of P.r . 9 and 10.
(o) Not later than March 1, 1950, and. in each year thereafter,
Country ' shall report to the CONTRACTING PARTIES on the restrictions still
in force under sub-paragraph (a). Not later than March 1, 1952, and in
each year thereafter, if Country X still retains any restrictions incon-
sistent with Paragraphs 9 10, it shall consult with the CONTRACTING
PARTIES as to their further retention. The CONTRACTING PARTIES may, if
they deem such action necessary in exceptional circumstances, make repre-
sentations to Country X that conditions are favourable for the withdrawal
of any particular restriction, or for the general abandonment of restric-
tions, inconsistent with the provisions of any other paragraph of this
A reement. Country shall ble given a suitable time to reply to such re-
presentations. If the COMTRACTOMG PARTIES Ti`- that Country X ocrsists in
maintaining restrictions whcih are inconsistent with the purposes of this
Agreement, Country X shall,within sixty days, limit or terminate such rc-
strictions as the CONTRACTING PARTIES may specify. -73- -9-
ARTICLES OF AGREEMENT OF THE INTERNATIONAL MONETARY FUND
Extract of Corresponding Piovisions
SEC. 3. Nvv~i0c.tion to the Fund. -.Each member shall notify
the Fund . Zi.oro it becomes eligible under Article XX, Section 4(e,
%; (6); to buy currency from the Fiwtw, ..bether it intends to
avail itself of the trannsitional arrangements in Section 2 of thi-
Article, or whether it is prepard to accept the obligations of
Article VIII, Sections 2, 3, and 4. member availing itself of
the transitional arrangements shall notify the Fund as soon
thereafter as it is Prepared to accept the above-mentioned obli- ;
gations,
SEC.4. Action of the Fund relating to rostrictions.--Net
later than hree years after the date on which the Fund begins
operations and in each year thereafter, the Fund shall report on
the restrictions still in force under Setion 2 of this Article.
Five years after the date on which the Find begins operations, ,
and in each year thereafter, any member till retaining eny re-
strictions inconsistent with Article VIII, Sections, 2, 3, or 4,
shall consult the Fund as to their further retention. The Fund
may, if it deems such action necessary in exceptional circum-
stances, make representations to any member that conditions are
favorable for the withdrawal of any particular restriction, or
for the general abandonment of restrictions, inconsistent with
the provisions of any other article of this Agreement. The
member shall be given a suitable time to reply to such represen-
tations. It. the Fund finds that the member persists in main-
teining restrictions which are inconsistent with the purposes of
the Fund, the member shall be subject to Article XV, Section 2(a.). -74- SPECIAL EXCHANGE AGREEMENT
Draft A
Article XII - Furnishing of Informotion
1. The Member shall within the general scope of Article VIII, Section
5 of the Article of Agreement of the International Monetary Fund, fur-
nish the CONTRATING PARTIES with such infornation as the CONTRACTING
PARTIES deem. necessary for the application of this Agreement and the
General Agreement, including, as a minimum natina date on the follow.-
in maiters:
(i) Official holdings at home and abroad, of (1) Gold, (2) foreignzn
(iiHoldings, at home and abroad, by banking and financial i?.. ci .1 ,r ci.s,
oehor en official agencies, of (1goldol (2). feign exchange. F
(iii) Production of GdlA.
(ivGol;dexports and imports according to couuntries of destinationon
d origin.in.
(v) Tal exports and imports of merchandisw, in terms of local curlo-
ney values, according ot cuntries of destination and origin. .
(vi) Ietcan.tionalalance of payments, including i (1 ) ade in goods cf
d services, i (2gold transactions, n (3known capital trans-sE
tions, and (4) other items.hc
(viIInternational investment position, i.c., investments within the it
torritoeios of theMember owned abroad and investments abroad t
ned by persons in its n territoeiss sfaI.as s it ipossible to to
furnish this infoation.ti
(viiiNational income.o.
xit)Price indices, i.x., indices of commodity prices in wholesale_.
d retail markets and of expoet and import prices.,r
(x) Buyinand selllig rates for foreign currencies.ci
(riExchange controls, i.c., a comprehensive statement of the exf -
ange regulations in effect vis-a-vis contracting iparties ands
nonontracting parties and details of subsequent changes as
they occur.
(xii Where er official calerinarrangements exist, details for amountsi>
aiting n.;: cl&urS nco in rooct o ....nc. fit'i.n ici~.l
trsErctticis, (-na of thc 1;c-rgth of ti--n .^rm nz -:hich such2 ir-
ae.rhave been en outstanding. El
2. I rn requesting such information the NTRACTING PARTIES shall take k.
into csideration the particular circumstances of the Member. The-k
mber shall be under no on oblag tion to rnish information in such detail
at the affairs of individuals or corporations are dise --rr Jc.>ic>he Mem. -
r undertakes, ho hwever, to furnish ehc i:i. iormation in n i- detailedhi
d accurate a manner as it is practiable and, so for t.n-, -s 4 r 'pessiblem to ,
oid mere catimates.-.s.
Alternative ofiv Aor ,rticle XIectionctiO "The1Member shall inrnishi;h
h information wtc within theneral scope of Section ti nAr. ;ticle
VIII ofetAr &rteclcs Agreement of the Internationsl Monetary Fuind nZot ry rur,
ING PARTIES may require in order to carry but their r to c<..2y ,ut
the General Agreement. The CONTRACTING PARTIES willY: fl;Q'fl.
nformation to the Fund to facilit to the exercise of lit tc ti:. ,crsco±
ch are assigned to the fund in connection with un.. ivi coic cti;<i ith
ils Special Exchange thiV.iL SLc c i Zxc. n - .e General -. rt X ... th _ :r:.1
.LJ r;, f ;a tn -75- SPECIAL EXCHANGE AGREEMENT
Draft B
Paragraph 17 - Furnishing of Information
(a) Country X shall furnish the CONTRACTING PARTEIS with such infor-
mations as they may require in order to carry out their functions under the
General Agreement on Tariffs and Trade, including national data on the . on tho
folatters:ml.ttors
icial holdings at home and abroad of c ;^ gold,1) ;roli(gbnforcin
oldings at home and abroad by banking and financial agencies,cu.rjci
oanor th;-al agencies, of ;ncicgold, :-ol, (eign exchange.xch:n¢o
(idi) Pro~uction of gold;
(ld)e polV Sand imports according tocor?. to countrdestinationtinr.ti
(al exports and imports of merchandise, in terms of local curof locU-
alues, according to lizng t coof destination and origin; ~nL o
(vernational balance of payments, including mcli ade trr.do in goods
rvices, vicc;g, ( ) :ansactions, zctions w3) apital trans tr:-:.-
, and ~fr~l~ er items:r i-s
(vii )ernational investment position, i.e. investment iwthi withen th6
tories of country X tr- & o5-z1 d.bro -ve inecstmabroasdroc
d by persons oin he torritories of Co oCou tXy- I, ao asr e. it
ossible to furnish nizh this imation;ctic
(viiiNational income;J i
( Price indices, i.c. indices of commodity prices in wholesaalenvh
retail markets nad of expoer tnad import prices;200=
(x) Bg and snCL elliates ito for foreign eurrenci s; !
(Exchange controls, i.c. a comprehensive statement of exchangef c<
controlseineGffact ae date when this Agreement anters into t in
Toand details of subsequent changes as they s rf they occur;
(viWhere official clearing arrangements exist, details of amounts.ils
ting clearance in respect of commercial and financial transncic-
ctionand of the lenght of time during which such arrearsch e
been outstanding. .'a
(b ) requestingsti- inaorm-tione CONTRACTING PARTIES shall take r11
iconsideration the abin tility of Country Xfurnish nise date equested.tcA.
Countshall be under no obligation to-fti Durnish imation tion in such
il that the affairs of individuals or corporations are disclosed.i is
CounXrundertakes, however, to furnish the desired information in as on i
iled and accurate a manner as is ncr v.s is sj Acticcblo, - s - f!r t s possible,
void mere estimates.rn, -76 - -10-
ARTICLES OF AGREEMNT OF THE INTERNATIONAL MONETARY FUND
Extract of corresponding provisions.
Article VIII. SEC.T. F-,.igLo n )..t il
(a ) Ti:. Futio y -netuire members to furnish it with such
information as it deems necessary for its operations, including,
as the minimum necessary for the effective discharge of the
Funds duties, national data on the following matters:
(1) Official holdings at home and abroad, of (1) old, (2)
foreign exchange.
(ii) Holdings at home and abroad by banking and financial
agencies, other then official agencies, of (1) gold,
(2) foreign exchango.
(iii) Production of gold.
(iv) Gold exports and imports according to countries of
destination and origin.
(M) Total exports and imports of rnerchandise, in terms of
local currency values, according to countries of
destination and origin.
(vi) International balance of payments, including (1) trade
in goods and services (2) gold transactions, (3) known
capital transactions, and (4) other itemss.
(vii) Intrn tional investment position, i.c., investments
within the. territories ci the member owned abroad and
investments abroad owned by prerons in its territories
so far as it is possible to furnish this inform tion.
(ix) Price indices, i.e., indices of commodity prices in
wholesale and retail markets and of export and import
prices.
(x) Buying and selling rates for foreign currencies.
(xi) Exchange control, i.e., a. comprehensive statement of
exchange controls in effect st the time of assuming
membership in the Fund and details of subsequent chages
as they occur.
(xii) Where official clearing arrangements exist, details of
amounts awaiting clearancein respect of commercial and
financial transactions, and of the longth of time dur-
ing which such arreurs have been outstanding.
(b) In requesting information the, Fund. shall take into
consideration the verying ability of members to furnish the data
requested.. Members shall be under no no Oblitg tion to furnish in-
± ,r.m ti n in such detail that the affairs of individuals or cor-
perations are lisclosed. Members undertake, however, to furnish
the desired information in as detailed and accurate a manner as
is practicable, and , so for as possible, to avoid more estimates. -77- Draft A
Article XIII - Energency provisions
The CONTRACTING PARTIES shall suspend the operation of articles IV
and V of this Agreemnt for the same period of time and to the same ey-
tent as the Fund suspends the operation of corresponding provisions of
its Articles of Agreemnt in accordance with Articel XVI, Section 1 of
the Articles or Agreement of the International Monetary Fund.
Article XIV - Miscellaneous Provisions
1. This special exchange agreemnt entered into by the Member consti-
tutes a part of its obligatins under the General Agreement. -78- SPECIAL EXCHANGE AGREEMENT
Draft B
_____ _ Relations with countries which are not Membars of of the Fund
and wihch have not i n-V6 it -vtC c1 '. Special Exchange Agreemnt
with the CONTRACTING PARTIES
(a) In respect ± e.. country which is not a member of the Fund and has not
.".,ciC.II *: O . ;ci .*2. s-:7cnn n. .-r&. t writh tho COiLTR_.0TL-G- 1$TIS, &ni in.
respect of ;ciw *::m in the tertritories of such country. Country X undertskes:
(i )not to engape in, i^, .r tE permit any fiscal agency acting an its
behali to engare in, any transactions with such country or per-
sons which would be contrary to the provisions or the purposes of
thn i. E r M. <.n- t;
(ii ) n-It to c: "-6I-t. t with 'vh c1 c.-:untry 'r *2ersrEs in or& cticoe which
7u-J7 be c,:;tx-.ry t., tho )rovisi nS *r tCtXrY:es of this
is_~~~~~~~~~~~,rciim r th cO - G t t -^
(iii) t : c: - re t v 1ith ti CO;T .PI.'dTI X P- TL I. S writh r i ew to the a.o-
olicrti jn in its t; rrit :f n-^orlo 'ri -:tc -' rers tc recentt
t-rnRs cti or -with such country or-370 r d -o:>Z-as which !7wDul1 be c z;ntr.ry
t7z thE; ir.,visions c;r the Tur os aes -^ this Lzrecenet.
(b) ii ,; i 7 ir. t.- i£ irEas:o nt h- 1 1;i>feCt t'. Ce rih-t zf ( t.-tr r X t- i m-
>jer rtction, on c Cc:'w.n: c trC.;.cti'c wnith s c'".-ntry nfhich iE nc;t e.
.t. ebo-t ci the Fun vn w, hi ch E. s no nt C 'n C 1uc- E, s sezCci .l - cchn- e ezrco-
po. a t with the COiFTR1TTIIiA 1, or 7.ith oerons in thne tcrritorics of
suchl country, unl (, tho COT1p OTIG PRDTI-8 'in.:. thlt zuch restrintioS
o1V ju1'. iCC thzS intori,-;tts of cntr cti_ .rtie ;; -. ..rc clntr-ry to the nro-
In the avent tha the Executive Directors of the Fund decide, under
Artice, XVI, Sectionl, of the Articles of Agreemnt of the Fund, to sus-
pend the operation of any of the provisions of Article V, Sections .3 and
4 (b) of Article XI, Section, l, the corresponding provisions of this
Agreement (namely, paragraphs 4, 5 (b) and 15) shall be suspended in a
similar manner and for the same duration same duration of time.
.;?CJ&: r£rLvf 14 - C.;nsi'.1tlt:tiorn er i'az T-istinw- Intornti.-)a1 '.-rcc-ent_.s
W, wa..oz fl tx:i '.- L: ~,.e-xe.t C:'.1ntry o or &r-wthor contracting ntrty
wnoich i). P Sav.^oer of tL, ecTil. hr : S cOnc1u5-e.> a. sciC.. echsn-zc c.greemno.t
'witx the . LPJTL:, -uthcriz6: in thl E-c)c1 ciEo a7- tm .ort'ry
C~irCrn'.its' -eci: . i.n t1is .4irocV nt to mcftntein or ezt~b1i!h rcStric-
tions on exchange transactions, ands has any other engement with accon-
tracting party entered into prior to this Agreement which conflicts with
the application of each restrictions, the parties to such cngagement willZent will
ith one another with a view to mainig such mutually acceptable - m7.t
ts as may be necessary. ;2-oc,-as -79- -11-
ARTICLES OF AGREEMENT OF THE INTERNATIONAL FUND
Extract of Corresponding Prvisions
Article XI. Relations with Non-member Countries
SECTION 1. Un takings rogaraing relations with non-member
cojntries.--Each member undertakes:
(I) Not to ongage in. nor to permit any of its fiscal agen-
cies referred to in Article V,. Section 1, to engage in.
any transactions with a non-member or with persons in
a non-members's torritories which would be contrary to
the provisions of this Agreement or the purposes of the
(ii) Not to cooperate with a non-member or with persons in a
n.n-ne.m1bcuTs tcrrit ries in practices Which wou1. be
clntrz ry t., the pr.visi.')ns ;:f this Agreement 'r the pur-
p C." 93 f th o Pan ezvl
(iii) sT., cp ,r te; with tho Funi. with 6 viG-w* t. tht &pplio-
ti ;n in it- territ'ries ;,f topr-pri..to meo sures to pro-
vent tr¢. us ..cti~ns with n n-imbebrs .;r with qer8ons in
their territ rieJ which w.ul be c~ntr ry tV the pr:
viseiA.ns .i this -..AreQnnt .r tho purp=.cs Qf the Fund,
3UC.2. Rostricti mn c.n trfnsz.ctirns with n.'n-_nmerqbcir coun-
trioe . -Ai-iX~sng in t1bi. &.rS.:tmnt shtAl .a.ct the ri-bt ..;Ef &.ny
.,eibur t imzse restrict n .n osceh.nze trn nrcicti nI with flun.-
noibscre .)r with ocri :'-i in their tcrrit:'riEs unless the Fund. finds
that such restrictions prejudice the intirects of members and are
contrary to the surposes of the Fund.
Article XVI. Emergency Provisions
SECTION 1. Tompor ry suspension. -- (a) In the event of an
emergency or the development of unferesson circumstances threaten-
ing the of the Fun, the Executive Directore by unani-
mous vote may suspend for a perido i: f n t m.:re than one hundred
twenty days the .)perr ti n ,y -f the following provisions:
(i ) Article IV, Sections 3 and 4 (b).
(ii ) Article V, Sections 2, 3, 7, 8 (a) and (f).
(iii ) Article VI, S.cti n 2.
(iv) Articlk .I. Socti:n 1.
Lrticlo VIIi. SLC.6. C nzult ti n between .carnbers regr'inz ex-
stMttn: intU7rn ti n-t 1 .:-r~tAcjmnts.
,ihmro un(,r thick . rzc.mtrt - ;erab r ib e.uth )riz7i in the
aspcecisi . r tmrnp ,rt.ry circumetr-ncea spFeifici in the A^grCemOnt to
m.intin ,r cat.b1ish reatricti 7nS .;n ckcx.,nc trandctienip enw
theru -.ro 'tther bctwetn mcmbera enr.te~recF. intK' prior to
this Agreeement which conflict with the application of such re-
strictions, the parties to such ongagoments will consult with one
another with a view to making such mutually acceptable adjustments
as may be necessary. The oravisions of this Article shall be with-
mut prejudice to the )orrti.)n -f Article VII, Soction 5. -80- SPECIAL EXCHANGE AGREEEMNT
2. The Member shall ''-_ < a.>o....v~r >'1 ,il j~2.-esi<.-.t_ fi5s26. C C2C. t- 1if be in Ol i?. C :_L
munication with the CONTRACTING PARTIES on the on the exchange matters
the euoject of this
3. whenever in the opinion of the CONTRACTING PARTIES the fails
to observe any of the corvisione of this Agreement , the CONTRACTING PAR-
I>~~~~~~~~~ J% _1 -_ representations to the member. The Member shall be given
reasonable time to reply to such represent tions.If the member persists
in failing to observe thsi Agreement the CONTRACTING PARTIES may formally
LcclErc that the member violated thsi Agreement and its obligetions under
the General Agreemnt. Any unauthorized change of the member's par value
would constitue such a failure.
4. This Agreeemnt shall enter into force upon signature (at the late of
the signature) bt the duly authorized horize- ire; t ;- t, . r &'..
tm.> 150, iJOL±: .TI; r : Oe & . con _5v'- C1 trE - r:c.L v r )i
* * Lf ti r *rc:nE; -nt shl1 bt :L-&;j Lite .ith tt- Cz i- ^ . o ti> C i.6C %.L* Gl
?^-l; n nrrc?..tnti2rii k t _ ... ...........
5. This Agreemnt shall terminate, if and when the member enters the
Fund or withdraws from the CONTRACTING PARTIES. J;_,er :r th : >* Ii'
PARTIES: such C : will oecome eitective as soon as agreed upon by
both parties. -81-
Paragraph 19 - Territorial Application
By its signature of this Agreement, Country X accents it both on its
own behalf and in respect of all its colonies, overseas territories, all
territories under its protection, suzerainty or authority and all trust
territories of which it is the adminstaritn authority.
Paragraph 21 - Entry into Force
This Agreement shall enter into force on the day on which it has been
i .:, .by the representatives of the Government of Country X and of the
CONTRACTING PARTIES.
Paragraph 20 - Amendmens
(a ) In the event that the Articles of Agreement of the Fund are
amended, the CONTRACTING PARTIES shall consult with Country X to determine
whether this Agreemnt requires consequent amendment.
(b) Country X may at any time submit it . -to introduce modifi-
cations in this Agreemenmt and such proposals shall be discussed at the next
meeting of CONTRACTING PARTIES.
Paragraph 22 - Terminataion
In the event that the Board of Governere of the Fund decide to liqui-
date two Fund, under Section 2 (b) of Article XIV of the Articles of Agree-
ment of the Fund, all obligations under thsi Agreement shall cease. - 12 -
ARTICLES OF AGREEMENT OF THE INTERNATIONAL MONETARY FUND
Extract of Corresponding provisions
Article V. SECTION 1. Agencies dealing with the Fund.
Each member shall deal with the Fund only through its
Treo&elry, control bank, stabilization fund, or other similar
fiscal agency and the Fund shall deal only with or through the
same agencies,
Article XX. SEC.2. Singature.
(r.) By their signature of this Agreement, all l governments
accept it both on their own behalf and in respect of all their
colonies, overseas territories, all torritories under their pro-
tection, suzerainty, or authority and all territories in respect
of which they exercise a mandate.
..h tici X.1II. Lmendments
(r) Any proposal to introduce modifications in this Agace-
ment, whether emanatinf from a member, a governor or the Exocu-
tive Directors, shall be communicated to the chairman of the
Board of Governors who shall bring the prop0osal before the Board.
If the proposed amendment sis approved by the Board the Fund shall,
by circulhr letter or telegram,i sic L11 merbc~rs whether they ao-
oet the propose. .c nent. dh%;n thrcc-fifths of the members.,
hs-ving four-fifthz oi the tot--1 voting power, havo accepted the
proooc1 .nd-me nt, tnxa Fund zm-ll certify tho fact by & formal
c: mmiuni c tion trfis ; t l mc11;nnbsr*.,
..rticle ZVI. S.A;2 LiuV, ~ i ofte41n1
(b1) If the, Bo.^ri )f Gov'rnor - &eciizs to liquilc'rtc the
Funa, tkho huni shll forthwith cteso to engage in any actlviti6s
except tnost incilTnt..l to thn orderly collection end liquidation
)f its r-s60ts tnl, the 6,sttloznt Af its li bilitios, Cn;d a1 oba
ligv.tisne of members unm .r this LgruLi.mnt shr.ll coa.-So except
those eet out in this Article in article XVIII. paragraph (c).
in Schedule D, paragraph 7, and in in SchGCdulG E. |
GATT Library | sy388dt9730 | Committee VI: Organization : South Africa: Proposal concerning the text of Article 83A (E/CONF.2/C.6/93) made at the morning Meeting on 9 March 1948 | United Nations Conference on Trade and Employment, March 9, 1948 | 09/03/1948 | official documents | E/CONF.2/C.6/93/Add.2 and E/CONF.2/C.6/76-103/ADD.1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/sy388dt9730 | sy388dt9730_90050022.xml | GATT_145 | 220 | 1,532 | United Nations Nations Unies
CONFERENCE E/CONF.2/C.6/93/
ON DU Add.2
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 9 March 1948
COMMITTEE VI: ORGANIZATION
SOUTH AFRICA: PROPOSAL CONCERNING THE TEXT OF ARTICLE 83A (E/CONF.2/C.6/93)
MADE AT THE MORNING MEETING ON 9 MARCH 1948
In the light of the suggestions made this morning by the Chairman of
Sub-Committee 1, the delegate of South Africa tentatively proposes that the
test of paragraph 3 in Article 83A be amended to read:
3. The Members recognize that the Organization should, not attempt
to take action which would involve passing judgment, in whole or
in part, on essentially political issues. Accordingly, in order
to avoid, conflict of responsibility between the United. Nations
and. the Organization with respect to political matters, any
measure which is directly in connection with aepolitical matter
brought before the United Nations in accordance with Chapter IV
or VI of the United Nations Charter shall be deemed to fall
within the scope of the United Nations, and shall not be subject
to the provisions of this Charter. Such a measure, as well as
the political matter with which it is directly connected, should.
remain within the jurisdiction of the United Nations until the
United Nations decides that the measure should be dealt with by
the Organization in accordance wïth the provisions of this Charter." |
|
GATT Library | hh982sj4992 | Committee VI: Organization : Statement by the Chairman of Sub-Committee I concerning the report of that Sub-Committee (E/CONF.2/C.6/93) made at the morning Meeting on 9 March 1948 | United Nations Conference on Trade and Employment, March 9, 1948 | 09/03/1948 | official documents | E/CONF.2/C.6/104 and E/CONF.2/C.6/103/ADD.2-112C.6/SR.1-7/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/hh982sj4992 | hh982sj4992_90050047.xml | GATT_145 | 0 | 0 | ||
GATT Library | vt470cs7403 | Committee VI: Organization : Statement by the Chairman of Sub-Committee I concerning the report of that Sub-Committee (E/CONF.2/C.6/93) made at the morning Meeting on 9 March 1948 | United Nations Conference on Trade and Employment, March 9, 1948 | 09/03/1948 | official documents | E/CONF.2/C.6/104 and E/CONF.2/C.6/103/ADD.2-112C.6/SR.1-7/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/vt470cs7403 | vt470cs7403_90050047.xml | GATT_145 | 415 | 2,665 | United Nations Nations Unies
CONFERENCE CONFERENCE UNRESTRICTED E/CONF.2/C.6/104
ON DU 9 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
COMMITTEE VI: ORGANIZATION
STATEMENT BY THE CHAIRMAN OF SUB-COMMITTEE I CONCERNINGTHE
REPORT OF THAT SUB-COMMITTEE (E/CONF.2/C.6/93) MADE
AT THE MORNING MEETING N O
9 MARCH 1948
Comments with Regard to Article 83A
In response to a question put to me by the delegate of Cuba, I would lire
to point out that it was the view of the Sub-Committee that the word measure"
mentioned in the text of paragraph 3 of Article 83A and also mentioned in the
Interpretative Notes to that paragraph and in the Report of the Sub-Committee,
refers only to a measure which is taken diroctly in connection with a political
matter brought before the United Nations in accordance with Chaptere IV and VI
of the United. Nations Charter, -- and does not refer to any other measure.
I would suggest that this statement be recorded in the Report of the
Committee in order to satisfy the delegate of Cuba.
During the discussion of the Report of the Sub-Committee objection has
been made to the third sentence in paragraph 15 on page 3. That sentence reads:
"It was agreed also that under this provision the Member maintaining
the measure could, so far as this Charter is concerned,. continue that
measure so long as it felt that the circumstances were unchanged from
that Member's point of view."
In view of the criticism which was stirred up by this sentence I have
discussed the matter with several members of the Sub-Committee and would like to
auggest the following sentence to take the place of the above sentence:
"It was also agreed that such a measure, as well as the political
matter with which it was directly connected, should remain within
the jurisdiction of the United Nations and not within that of the
Organization'"
The third suggestion which I would like to make would be that the first
sentence suggested by the delegation of South Africa in its amendment to the
proposed paragraph 3 of Article 83A be adopted by this Committee and inserted
/at the begnning E/CONF.2/C.6/041
Page 2
at the beginning of paragraph 3 as drafted by the Sub-Committee.In other
words the paragraph would then begin:
"3. The Members recognize that the Organization should not
attempt to take action which would involve passing judgment, in
whole or in part, on essentially political issues, Accordingly,
in order to avoid conflict etc .......". |
|
GATT Library | vr923vr1835 | Communiation du Gouvernent de l'union sud africaine | Accord General sur les Tarifs Douaniers et le Commerce, November 16, 1948 | General Agreement on Tariffs and Trade (Organization), Parties Contractantes, and Contracting Parties | 16/11/1948 | official documents | GATT/CP/3 and GATT/CP/3+Corr.1 | https://exhibits.stanford.edu/gatt/catalog/vr923vr1835 | vr923vr1835_90070093.xml | GATT_145 | 888 | 5,741 | RESTRICTED
LIMITED B
GATT/CP/3
16 November 1948
FRENCH
Original: ENGLISH
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMERCE
Communication du Gouvernement de l'Union sud-
africaine
Le President des Parties contractantes a retu du Ministère
des Affaires étringères de l'Union sud-africaine la lettre sui-
vante, en date du 12 novembre 1948:
"1. J'ai l'honneur de vous informer que le Gouvernement do
l'Union sud-africaine a décidé de soumettre à cortaines res-
trictions les importations à destination de l'Afrique du
Sud, conformément aux dispositions de l'Article XII (2) (a)
(i) et de l'Article XIV (1) (b) de l'Accord général sur les
tarifs douaniers et le commerce.
2. L'application de ces restrictions s'est avérée nécessaire
du fait de l'évolution de plus en plus défavorable de la ba-
lance des paiements de notre pays et de la diminution im-
portante de ses réserves monétaires qui en résulte. Cette
diminution est essentiellemont provoquée par les facteurs
suivants:
(i) les importants besoins en machines, équipement, ma-
tibres premières essentielles et biens do consomma-
tion qui n'avaient pu Otre satisfaits durant la
guerre;
(ii) les besoins d'importation considérables de l'Union
en ce qui concerne les, installations at l'équipement
do l'industrie et des mines, besoins qui paraissent
devoir so maintenir à un niveau élevé pendant nombre
d'années encore;
(iii) le fait que les prtx.de touts los merchandises im
portées ont sensiblement augmenté alors que le prix
de l'or, qui joue un r(le dominant dans la balance
des paiements de notre pays, est resté inchangé depuis
1941 d'ou il résulte que les exportations d'or ne
suffisent plus à couvrir le déficit normal de la ba-
lance commercial du pays;
(iv) la tendance de plus en plus marquée dans la plupart
.dos pays d'outre-mer à restraindre les importations
d'articles non essentiels, qui occupent une place im-
portante, dans le commerce d'exportation de l'Union.
3. A plusieurs reprises au cours de l'année écoulée, le Gouver-
nement de l'Union sud-africaine s'est efforcé do réduire les
paiements à effectuer dans les pays d'outre-mer en recourant à
d'autres mesures, telles, par example, que la restriction des
crédits bancaires à l'importation de bions de consommation. GATT/CP.3
Page 2
Les réserves d'or de l'Union continuant à diminuer, il est oepen.
dent devenu nécesseire, en fin de compte, de réduire de 30 % à
25% la réserve légale d'or de la Banque de Réserve de I'Union
sud-africaine et de ne pas tenir compte, pour le caloul du taux de
conversion, des avoirs à l'étranger de la Banque.
4. GrGce à ces mesures, l'Union sud-africaine a pu mobiliser
une quantité considérable de ressources supplémentaires en devise
et qui, à oe qu'on espérait, permettrait à notre pays de couvrir
ses besoins d'importation de biens de consommation accumulés de-
puis la guerre; en outre, ses importations étaient descendues à
un niveau qui aurait pu permettre à l'Union de couvrir le déficit
de sa balance commerciale à I'aide de sa production d'or courents
an plus de l'afflux normal de capitaux investis dans notre pays.
5. Toutefois, les espoirs du Gouvernement de l'Union sud-
afrioaine ne se sont malheureusement pas réalisés, Les réserves
d'or de notre pays ont déja dangereusement diminué et si les im-
portations de biens de consommation devaiont se poursuivre sans
limite, la capacité de l'Union de couvrir ses besoins en biens
d'équipement essentiels à la mise en valeur économique du pays
se trouverait séricusoment compromise; aussi le Gouvernement a-t-
il décidé de prendre de mesures immédiates pour protéger la si-
tuation financière du pays et assurer des possibilités meilleuru
au sain développement de l'industrie.
6. Le Gouvernement de l'Union sud-africaine tient essentielle.
ment à ce que ces restrictions à l'importation n'entravent pas l
échanges oomamerciaux normaux au delà de ce qui est absolument
indispensable pour remédier au déséquilibre actuel de la balance
des paiements de l'Union.
7. Il espère qu'il sera possible d'éviter l'instauration d'un-
système généralisé de licences d'importation, Pour l'instant, il-
a décidé, en conséquence, de chercher à faire face à la nécessit
de rétablir l'équilibre de la balance des paiements du pays au
moyen des mesures suivantes ; !
(i) l'importatien ai cortAens 'ypos d articres (su.tout
des articles de luxe et marchandises proeuites on
Afrique du Sud en éuantit~s suffisantes) ser- inter.
dite eaas una eutorisation, qui neéseraéd6livrxe que
dana des c à tout e cait oxoepsionnela. Cette inter-
di'tion st epaliquare aux importations enaprovensnce
de tous le pays;
ii) pour ce qui 6st de tout- lee amarcas wrohandises,
l1attribution des devéces aioessàiles a 1'importa-
tion en prcvenanoe de pays autr es qu ceux de la
zone sterling sera limitla dt 1 fagon suivante :
au cours dé la priodo de 12 mois tommenqant au
ler juillet 1948, cheque importatcur reoevra en
deaises eutres que la livre sterl%ng 50. du montant
to'al qu il avquia rcu su oe rs doél'ann~e 1947. GATT/CP.3
Page 3
Etant donné que l'Union ne manque pas de livres sterling,
les dispositions de l'Article XIV (1) (b) de l'Accord
général sur les tarifs douaniers et le commerce ont été
appliquées, et les restrictions à l'attribution de devi-
ses ne porteront que sur celles qui impliquent pour
l'Union une sortie d'or, c'est-à-dire les devises de
tous les pays extérieurs à la zone sterling;
(iii)les demandes do contingents supplémentaires de dévises
pour l'importation de biens d'équipement, d'outillage
et de matières pramières essentiels, seront examinées
et tritées selon chaquo ces d'espèqe..." |
GATT Library | yq461kk8706 | Communication from Czechoslovak Delegation | General Agreement on Tariffs and Trade, March 23, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 23/03/1948 | official documents | GATT/1/61 and GATT/1/59+Add.1,2 60-63 | https://exhibits.stanford.edu/gatt/catalog/yq461kk8706 | yq461kk8706_90310345.xml | GATT_145 | 221 | 1,465 | RESTRICTED GATT/1/61
23 march 1948
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
FIRST SESSION OF THE CONTACTING PARTIES
Communication from Czechoslovak Delegation
The following communication from Dr. Z. Augenthaler, Leader of the
Czechoslovak delegation, has been received by Mr. L. D. Wilgress, Chairman,
First Session of the Contracting Parties to the General Ageement on Tariffs
and, Trade:
Mr. Chairman:
I have just had information from Prague that list X (Czechoslovak
Schedule) will be made effective on the 20th of April 1948 in toto.
That is to say Czechoslovakia is going to apply tariff concessions
she granted at Geneva to all states signatories of the Final Act,
regardless of the fact whether these states apply concessions granted
to Czechoslovakia or not.
If, however, any of these states does not sign the Protocol of
Provisional Application at the latest on June 30, 1948, Czechoslovakia
will exclude any such state from the application of tariff Concessions
granted specifically to it in Schedule X.
I should be very grateful, if you could inform all the signatories
of the Final Act of the General Agreement on Tariffs and Trade
and remain,
Your obedient servant,
(Sgd.) Dr. Z. Augenthaler
Leader of the Czechoslovak
Delegation
The Hon. L. D. Wilgress,
Leader of the Canadian Delegatin,
Chairman of the First Session of
the Contracting Parties of the GATT |
GATT Library | fs482hh0997 | Composition and terms of reference of Working Parties | United Nations Conference on Trade and Employment, January 12, 1948 | Third Committee: Commercial Policy and Sub-Committee E (Articles 20 and 22) | 12/01/1948 | official documents | E/CONF.2/C.3/E/W.9 and E/CONF.2/C.3/D/W/1-13/E/CONF.2/C.3/E/W/1-23 | https://exhibits.stanford.edu/gatt/catalog/fs482hh0997 | fs482hh0997_90190543.xml | GATT_145 | 446 | 2,916 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/E/w.9 12 January 1948
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOIPE
IRD COMMITTEE:iEMERCIAL POLICY.q P
SUB-MMITTEE E (ARTICLES 20 AND 22) )
CPOSITION sAN ERMS OF RteEFERENCE OWORFwKING PARTIES
ARTLE 2N20 -E ERAGNEL MINATIONLOFI QNTITATIVE RESTRICTCTIONS
1. Working Party No. 1 was set up ath te Third Meetinag nd is composed of
the following delegeats: Combioba, Nethelands, Ireland, Sweden, the
United Kingdom and the United States. It is to coider the nsamendments of
Sweden and Ireland (Items 21 and 22).
At this meeting it was agreed that this Working Party should also take
Into acunt cothemend ament of Egypt (Item 15).
2. At the Second Meeting it was agreed that the delegates for Ceylon,
Chile and France should consult with representatives of the United Kingdom,
the United. States and the InternationaMoneontaryunFnd on the amendment of
Chile (Item 1) and Argentina (Item 2) and the relation of these amendments
to Article 21.
3. At the Third Meeting Working Party No. 3 was constituted, consisting of
the delegates for Australia, France, and the United States to consider the
andmemots of Australia (Item 6) and Greece (Item 7).
4. At the Frsit Meeting Working Party No. 4 was set u., It is composed of
the delegates for Chile, China and the nhited States ncd will oonsider the
amendment of China (Item 8).
5. A tte Fifthr Meeting Working Party No. 5, composed of the ddleegates for
wenee the United KKingdom, was set up. These delegates will draf ant
explaratory note for inclusion in the records to cove the amendment oft
weden (item 17)./ e
6. WorkingNParty To. 6 was aet up Nt the Fifth Meeting and consists of the
delegates for Chile, Netherlands, Peru, the United Kingdom and the United
States. This Working Party will consider the amendment of Chile (Item 23).
7. Working Party No. 7 was set up at the Fifth Meeting and consists of the
es fde Mexlco and the the United Kingdom. It will ftdra an explanryato
note for inclusion in the recsrde on the interpretation of the wo"restrrd ict"
/ARLETIC 22 E/CONF.2/C.3/E/W.9
Page 2
ARTICLE 22 - NON-DISCRIMINATORY ADMINISTRATION OF QUANTATIVE RESTRICTIONS
8. Working Party No. 8 was set up at the Sixth Meeting and consists of
the delegates for Mexico, New Zealand, Peru, the United Kingdom and the
United States. A representative of the International Monetary Fund will
assist in its deliberations. It is to consider the amendments of Mexico
(Items 52 and 58), Turkey (Item 54), Syria and Lebanon (Item 60). This
Working Party will redraft paragraph 2 (d) taking the above amendments into
consideration.
Wie \ w 9
a- (K~as-,-ii |
GATT Library | vk993wh7350 | Compte Rendu de la Vingt-Cinquieme Seance : tenue su Palais des Nations à Genève , le mardi 14 septembre 1948 à 15 heures | Accord General sur les Tarifs Douaniers et le Commerce, September 15, 1948 | General Agreement on Tariffs and Trade (Organization), Parties Contractantes, and Contracting Parties | 15/09/1948 | official documents | GATT/CP.2/SR.25, GATT/CP.2/SR.24+Corr.1, and SR.25 | https://exhibits.stanford.edu/gatt/catalog/vk993wh7350 | vk993wh7350_90270074.xml | GATT_145 | 2,350 | 15,325 | RESTRICTED
LIMITED B
15 .September 1948
GATT/CP.2/SR.25
FRENCH
Original :ENGLISH
ACCORD GENERAL SUR LES TARIFS DOUANIE S ET LE COMMERCE
Parties Contractantes
Deuxième Session
COMPTE RENDU DE LA VING-CINQUIEME SEANCE
tenue su Palais des Nations à Gevève, le mardi 14
septembre 1948 à 15 heures.
PRESIDENT : l'Hon. L.D. WILGRESS (Canada)
Le PRESIDENT rend hommage à la mémoire de Mohammed
Ali Jinnah, Gouveneur général du Pakistan. Les délégués présents
observent, debout, une minute de silence en l'honneur du Gou-
verneur général.
M,. HASNIE (Pakistan) remercie le PRESIDENT et les
délégués presents de cette marque do sympathie at tient à leur
dire que le Pakistan rosters fidèle à le. doctrine de non-vio-
lence et de respect du droit, ensslgnée par le chef qui vient
de disparattre. II se conformers toujoursa à is volonté communa
des Parties contractantes et travaillera de son mieux à favori-
ser le développement de la coopération internationale.
RAPPORT DU GROUPE DE TRAVAIL No 5 CHARGE DE L'EXAMENDE
L'ARTICLE XXVIII, GATT/CP.2/38 (Suite de ia discussion).
M. FREQUET (Cuba) présente las vues de is délé-
gation de Cuba qui sont exposées au paragraph (29) du Rapport,
selon lesquelles des dispositions détailliées, sinilaires aux
dispositions recommendées per le Groupe de travail pour 1'examen
des measures qu'impose le nouveau paragraphe11 de lArticle
XVIII, devraient Otre adoptées par les Partis contractantes
à 1'égard des measures existantes en vertu des articles XII et
XVI de l'Accord général. GATT/CP.2/SR .25
Page 2
Le paragraph (29) du Rapport est approuvé
Il y a lieu de rectifier à l'Annexe A (note de bas
do page) la date indiquée comme étent celle à laquelle les
Pays-Bas ont appliqué l'accord général à titre provisoire aux
territoires d'outremer; au lieu de 10 avril, il faut lire
le ler mars 1948.
Au cours de l'étude de l'Annexe B M.OFTEDAL
(Norvège) revient sur le paragrephe 6 du Rapport et fait ob-
server que les mots "comes soumises aux dispositions du para-
graphs 6 [11] de l'Article XVIII", pourraient ne pas être
exacts dens 16 cas, où, par la suite, une de ces mesures se-
rait considédrée par les Parties contractantes come tombant
sous le ooup des dispositions d'un des autres paragraphes de
l'article. Sur is proposition du PRESIDENT, lee Parties con-
tractantes décident de remplacer lea mots "comme soumises aux
dispositions du paragraphe 6 [11] de l'article XVIII"' par les
mots "come les mesures mentionnées au paragraphe 6 [11]
de l'article XVIII".
A propos de la Résolution I de l'annexe C, le
PRESIDENT attire l'attention des Parties contractantes sur
l'amendement recommendé per la Groupe de travail chargé des
questions juridiques dons le document GATT/CP.2/42. L'amen-
dement recomnended au paragraphe (1) est adopté.
La Résolution I est adoptééeé par 14 voix, sens oppo-
sition.
:''mlendementà &a Résoolution II eccomené6 arr le
Groupe de ta-vailcoacre6 des questions juridiqeis dans le
êgme aeragraphe du êmze document sat é6glmrent ppRroué6.
La éUsolution ITeost adopé6e ar t'l5 voix, aans
opposition. GATT/CP.2/SR.25
page 3
Les amendements recommandés per le Groupe de
travail chargé des questions juridiques aux premier, second,
et troisième paragraphes du Préambule de la Résolution III,
qui font l'objet des paragraphes 2, 3 et 4 de ce document,
sont approuves.
Quant à l'amendement recommandé au paragraphe 5
du Rapport, visant à remplacer dans le dispositif de la
Resolution III, les mots "seront prises" par les mots "pour.-
ront être prises", les Parties contractantes décident de le
repousser car il aurait pour effet d'élargir la portée de le
dérogetion., D'après M. HEWITT (Australia), cette dérogation
avait été proposée à l'origine, avec l'idée de renvoyer a
le troisième session des Parties contractantes les décisions
ayant treit aux measures, tandis que le recommendation du
Groupe de travail charge des questions juridiques permet-.
trait, si elle était adoptée, de renvoyer indéfiniment les
décisions. Ce point de vue est appuyé par M. OFTEDAL et
M.. de VRIES (Pays-Bas) .
La Résolution III est approuvée par 15 voix, sans
opposition.
Les Parties contractantes décident d'insérer, dans
le Rapport, au sujet de la Résolution III, une observation
recomnandée par le Groupe de travail chargé des questions ju.-
ridiques, précisant quo cetta Résolution a pour. effet de
confriror au Gouernement de cuba et au Gouvernement das Pays
Bas, autorité pour maintenir an vigueur les .m sures men-
tionnées par cette décision jusqut'à oe que les PARTIES
CONTRACTANTES aient pris une décision à leur égard. GATT/CP.2/SR.25
Page 4
Les corrections ci-après sont apportées à I'Annexe D:
1. Au. paragraphe (2), les mots oi-après sont supprimés
"Si la Partie contractante requérante présented sa dermande en
vertu du paragrapho (8)".
2. Le texte du paragraphe (3) est modified comme suit: "Si
une Partie contractante requérante choisit de présenter une
demande an vartu a paragrapphe (7) (i) ou (ii) de 1'article
XVIII, les données supplémentaires ci-après seraient utiles".
A la suite d'un éhange de vueus au suajet de l'Annexe E,
M. HEWITT (Australia) propose de remplacer à la fin du para-
graphe (8) de 1'Annexe, les mots "une période détérminée"
par les mots "la période qui a été déterminée".
M. ADARKAR estime qu'il y aurait lieu de suppri-
mor les paragraphes 10 et 11 ainsi que la dornière partie du
paragraphe 9 qui sont inutiles; il estime que la paragraph
(9) devrait être modified de telle sort qu il reproduise
exactement les termes de la Charte ou qu'il renvoie aux para-
graphes de la Charte, qui traitent de la question, sans énu-
mérer de limitations supplémentaires; selon lai, le texte
gagnerait on concision si l'on disait simplement: " ... exami-
neront la measure conformément au paragraphe [8 (b) (ii) et
14] de 1'article XVIII".
M. de VRIES (Pays-Bas') ponse qu'su paragraphe (9)(a),
il serait bon de mentionner la' "reconstruction" an même temps
que le 1développernmnt économique". Il lui somble que lo passa-
ge commençant par les mots "en s' inspirant des raisons invo-
quées" que M. Adarkar a proposé de supprimer est extrêmement
important.
M. SHACKLE (Royaume-Uni) east d'accord aveo M. de VRIES,
mais propose d'ajouter les mots "immédiatement et à la longue' GATT/C/.2/ O2.
Page 5
à la fin du paragraph (9)(b), et d'ajouter les mots "sous
réserve des limitations qu'elles pourraient imposer", à le
fin du paragraphs (10).
Les modifications suivantes apportées au rapport sont
approuvées:
1. Paragraphe (8): "....pour [une période déterminée] la pé-
riode mentionnée dans la demande."
2. Paragraphe (9):"...aura sans doute immédiatement et à la
longue, sur le commerce international".
3. Paragraphe (10);"....elles autoriseront son maintien [pour
une période déterminée] sous réserve des limitations qu 'elles
pourront imposer."
4. Paragraphe (1), ligne 17: ...les PARTIES CONTRACTANTES
puissent, lorse de Ia troisième session, prendre une décision
en vertu [lu paragraphs [8(b)]] en vertu des autres disposi-
tions appropriées de l'Artiole XVIII....".
A propos des dates suivantes: 31 octobre 1948, 15 décem-
bre 1948 et 28 février 1949 respectivement mentionnées dans
les paragraphes (1), (2) et (3), M. HEWITT (Australia) explique
les raisons qui ont motivé le ohoix de cos dates; l'intervalle
prévu entre lea dates indiquées swmble être suffisant pour
permettre la réalisotion des objectifs respectivement visés.
Rappel.ant que le représentant du Liban a proposé précédemment
de modifier la date fixée pour i'envoi des informations, il
fait observer que si l'on modifie cette date, il faudra exami-
ner à nouveau les autres dates.
M. MOBARAK (Liban) Justifie oette proposition en disant
que d'une façon générale ii est. difficile .de.réunir les ren
seignements demandés, oar on ne dispose pas toujours du GATT/CP.2/SR.25
Page 6
personnel nécessaire et que, par conséquent, il serait souhai-
table d'avoir plus de temps à consaorer à oe travail.
M. SHACKLE (Royaume-Uni) appuie la suggestion du repré-
sentant du Liban et pense que, dans le oas où l'on fixerait
au 31 octobre 1948 la date limited pour l'envoi des renseigne-
ments, les autres dates, notamment la date fixée pour l'envoi
des demands en vue d'obtenir de plus amples renseignements,
et la date fixée pour is réception par la Président de toute
objection qui pourrait être formulée à l'enoontre de oes
mesures, pourraient être modifiées en oonséquenco sons in-
convénient.
M. HEWITT (Australie) déclare que la proposition qu'avait
fnite préoédemment le représentant du Liban an vue de fixer
cette date au 15 novembre 1948 paraî avoir un intérêt pratiquc
M. MOBARAK (Liban) declare que la modification proposée,
à savoir le ramplacement de la date du 31 ootobro par oelle
du 15 novembre, et de celle du 15 ootobre par cell du 31 dé-
cembre, conviendrait à so délégation.
Les Parties contractantes décident quo le Rapport sera
modifié en oonséquence.
Le rapport du Groupe de travail No 7 est agprouvé.
Le PRESIDENT propose d'autoriser le Secrétariat à publier
les résolutions adoptées par les PARTIES CONTRACTANTES sous
forme de document à distribution illimitée.
Catte proposition eat approgvée,
RAPPORT SUPPLEMENTAIRE DU GROUPE DE TRAVAIL No 5 (GATT/CP.2/38 Add .1)
M. HEWITT (Australia) présente ie Rapport et expose
brièvement les questions traitées. Ce rapport souligne que les GATT/CP .2/SR.25
Page 7
procéures recommandées, le sont à titre d'expérienoe; il si-
gnale l'absence d'un organe permanent qui pourrait prendre des
décisions dans l'intervalle des sessions, ainsi qua la nécessi-
té de prévoir des sessions spéciales, et l'opportunité d'éta-
blir une procédure definitive en ce qui concerne les notifi-
cations afin d'éviter des retards. ll indique également
d'autres points essentials du Rapport.
Le PRESIDENT pense qu'en l'absence d'un organe exécutif
permanent, la procédure reoommandée à titre d'experience
aidera considerablement le Président et le Secrétaire exécutif.
Les Parties contractantes approuvent â .l'unanirgité le
Rapport supplémentair.
RAPPORT DU GROUPE DE TRAVAIL No. 7 SUR LA LISTE DE CUBA
(GATT/CP.2/43)
Le PRESIDENT présente le Rapport et attire attention
des membres présents sur les points les plus importants oú les
vues des parties en présence concordent.
M. LEDDY. (Etats-Unis d'Amérique) déclare que son Gouverne-
ment est disposé à accepter la solution que le Groupe de tra-
vail recommende pour régler les difficultés en question; il
conviendrait toutefois de consigner au procés-verbal deux
points au sujet desquels les délégations des Etats-Unis et.
de Cuba se sont mises d'accord. Premièrement, la "compensation
adequate" dont il est question au paragraph 3, se fera sous
former de concessions dans l'une ou l'autre liste ou dans les
deux. Deuxièmement, en oe qui concerne l'interpretation dont
il est question dans le dernier paragraphe à la fin du Rapport,
il doit être bien entendu que la nbuvelle négociation prévue au
paragraph 3 constitue une question séparée et que les négocia- GATT/CP.2/SR.25
Page 8
M. GUTIERREZ (Cuba) reconnaît oue l'accord s'est réa-
lisé sur ces points. Pour sa part, il tient à préciser oue
le dernier paragraph du Rapport devrait contenir les préci-
sions complémentaires sulvantes : le Governement cubain s'en-
gage à entamer immédiatement des discussions préliminaires sur
les points en question, mais, au cas où une solution.satis-
faisante pour les deux parties n'interviendraft pas avant une
certaine date, le mois d'avril prochain par exemple, il se
pourrait que dans l'lntervalle, la situation s'aggrave ou
devienne telle que le Gouvernement cubain estime nécessaire
de prendre de nouvelles mesures pour y faire face. Le fait
d'accepter oc Rapport n'entraine pas l'interdiction de recourir
aux Articles XVIII ou XIX. La délégation cubaine espère qu'il
ne sera pas néceannire d'invoquer ces dispositions, male elle
demande que cette éventualité soit dûment prévue par une men-
tion au procés-verbal. Il demande l'adjonation d'un paragraphe
à la fin du rapport, indiquant que les Gouvernements des Etats-
Unis et de Cuba ont accepté cette solution de la difficulté.
M. LEDDY accepte que, cette déclaration soit consignée au
procès-verbal.
Le PRESIDENT propose de mentionner au procès-verbal des
déclarations des représentants des Etats-Unis et de Cuba préci-
sant que leurs gouvernements respectifs ont accepté la solution.
M. GUTIERREZ répond que cette proposition donne satisfac
tion à sa délégation.
Les Parties contractantes approuvent le Rapport du Groupe
de travail No 7.
M. CASSIER (Belgique) voudrait avoir l'assurance que les
résultats des négociations ayant trait à la question de la GATT/CP.2/SR. 25
Page 9
Résolutlon 530 vaudlont également en ce qui concerne Cube et
les autres parties contractantes.
M. SHACKLE (Royaume-Uni) manifesto le même désir.
M. GUTIERREZ répond qu'en appliquant ces mesures et en
leur donnant effet,. le Gouvernement cubain se conformera. aux
cngagements ou'il a contractés aux termes de l'Accord général.
SIGNATURE DES PROTOCOLES
Los représentants dûment autorisés des parties contrac-
tantes se sent rendus à 17 h.30 dans le bureau du Secrétaire
exécutif afin de signer les Protocoles suivants:
1. Protocole portent modification de la Partio I et de
l'Article XXIX de l'Accord général sur lee tarifs douaniers
et le commerce.
2. Protocole portant modifitcation de la Partie II et de
l'Article XXVI'de l'Accord général sur lee tarifs douaniers
et le commerce.
3. Protocole relatif à adhésion des signataires de 1'Acte
final du 30 octobre 1947.
4. Deuxième Protocole de rectification à 1 'Accord général
sur les tarifs douaniers ot le commerce.
L'Accord ayant trait à l'Allemagne occidentalo a. été on
même tempe présenté à la signature des Parties contractantes.
Une liste des gouvernements qui ont signé cet accord à Gonève
sera communiquée, à titre d'information, le 20 septembre 1948.
En réponse à. M. de VRIES, le PRESIDENT déclare qu'il ne
voit pas la nécessité d'introduire dans le Réglement intérieur
de dispositions spécilales ayant trait aux sessions extract- !-
naires pour lesquelles les questions à inscrire à l'ordre du
Jour pourraient ne pas être notifiées dans les délais requis. GATT/CP .2/SR.25
Page 10
Il est toujours possible, en cas de besoin, de déroger
par consentement unanìme à cette condition du Règlement inté-
rieur.
Le PRESIDENT prononce son allocation de Clôture au course
duouel il rappelle brièvement les tâches accomplies au course
de la session. Au nom de toutes les Parties contractantes, il
remercie tous ceux oui ont contribué au succès de la session.
A la demande de M. RODRIGUES (Brésil), le discours est dis-
tribué sous forme de document portant la cote GATT/CP.2/45.
M. SHACKLE (Royaume-Uni) et M . ADARKAR (Inde) remer-
cient le Président au nom des représentants des Parties con-
tractantes de l'autorité et du dévouemont aveo lesquels il
s'es acquitté de ses fonctions, et qui, dans une large mesure,
ont contribué au succès de Ia. session.
La séance est levée à 18 h.40. |
GATT Library | pd906mv4692 | Conference time table : Note by the Executive Secretary | United Nations Conference on Trade and Employment, March 12, 1948 | 12/03/1948 | official documents | E/CONF.2/62 and E/CONF.2/59/CORR.4 - 69/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/pd906mv4692 | pd906mv4692_90040131.xml | GATT_145 | 570 | 3,760 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF. 2/62
ON DU 12 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
CONFERENCE TIME TABLE
NOTE BY THE EXECUTIVE SECRETARY
Notwithstanding the previous failures to agree on a firm timetable for
the termination of the Conference, the need for doing so as set out in
E/CONF.2/47 remains. The attached timetable has, therefore, been prepared
as a basis for discussion by the Conference. it must be repeated that there
is no point in agreeing on a timetable to which the delegations are not
determined to adhere, If the timetable is to serve its purpose, the work
allocated to each work period must be completed within that period. In so
far as the time allocated may prove inadequate it will be necessary to
arrange night meetings for the purpose.
One of the major difficulties is the heavy load which would be imposed
on the Central Drafting Committee, and it is, therefore, recommended that
the Central Drafting Committee should be reinforced and divided into two
sections. In each of them, arrangements should be made for the inclusion of
some members who have participated throughout the work of the Central
Drafting Committee. It is believed that this could be achieved by
establishing the following two sections of the Central Drafting Committee:
Section 1
Mr. Catudal, Chairman
Mr. de Gaiffer
Mlle. Lissac
Mr. Best
Section 2
Mr. Royer, Chairman
Mr. Couillard
Mr. Kellogg
As pointed out in E/CONF.2/47, it is necessary at this stage to make
firm arrangements for the dispersal and travel of delegations and secretariat
staff. In view of the advanced stage of the Conference and the congestion
of travel services which is Likely to be occasioned by the Easter holiday,
the marking of the necessary arrangements can no longer be deferred. As
regards the Secretariat, therefore, on the assumption that this timetable
/is approved E/CONF. 2/62
Page 2
is approved, arrangements are being made for the bulk of the staff to leave
Havana on 23 March. The skeleton staff remaining after that date would not
be sufficient to staff any further Conference meetings.
/CONFERENCE E/CONF. 2/62
Page 3
CONFERENCE TIMETABLE
Saturday, 13 March
Committee II1
Monday, 15 March
Committee VI2
Committee III3
Working Party 2 of Sub-
Committee F of Committee III.
Followed by Sub-Committee F
on Article 234
Tuesday, 16 March
10.30 a.m.
4.00 p.m.
Wednesday, 17 March
10.30 a.m.
4.00 p.m.
Committee VI5
Committee IIl3
Committee ll6
Committee IIl7
Thursday and Friday, 18 and 19 March
Preparation, distribution and consideration of final texts.
Saturday, 20 March
9.00 a.m. -1.00 p.m.
3.00 p.m. - 8.00 p.m
Plenary Meeting
Plenary Meeting
Sunday, 21 March
9.00 a.m. - 1.00 p.m.
3.00 p.m. - 8.00 p.m.
Plenary Meeting
Plenary Meeting
Monday, 22 March
10.00 a.m.
3.00 p.m. - 8.00 p.m.
Signature of Final
Interim Commission
Aot
followed
by Executive Committee
1. To complete second readings.
2. To approve Committee Report, report of working party on the Interim
Commission and report of Central Drafting Comuitteemon Chapter VIII.
3. To complete agenda with the exception of Central Drafting Committee
report on Articles 23 and 24.
4. To complete report on Article 23.
5. To approve reports from Central Drafting Committee.
6. To approve Central Drafting Committee report on Articles 13, 14, 15 and
Committee Report.
7. To approve Central Drafting Committee report on Articles 23 and 24.
3.00 p.m.
10.30 a.m.
3.00 p.m.
6.00 p.m. |
|
GATT Library | gk634zj4838 | Conference timetable : Note by the Executive Secretary | United Nations Conference on Trade and Employment, March 2, 1948 | 02/03/1948 | official documents | E/CONF.2/47 and E/CONF.2/45/REV.1/53/CORR.3 | https://exhibits.stanford.edu/gatt/catalog/gk634zj4838 | gk634zj4838_90040105.xml | GATT_145 | 690 | 4,527 | United Nations Nations Unies
UNIRESTRICTED
CONFERENCE CONFERECE E/CONF.2/47
ON DU 2 March 1948
TRADE AND EMLPLOYMENT COMMERCE ET DE L' EMPLOI
ORIGINAL: ENGLISH
CONFERENCE TIMETABLE
NOTE BY THE EXECUTIVE SECRETARY
On the assumption that the Heads of Delegations approve the Report of
the Co-ordinating Committee in a single meeting to be held on the morning
of Wednesday, 3 March, it should be possible to lay down a firm timetable
for the completion of the work of the Conference.
The need for establishing a firm date will be apparent to the Heads
of Delegations although mention might perhaps be made of the fact that at
the end of the Conference there will be a very large exodus of Secretariat
and delegation personnel which will make it extremely difficult to arrange
reservations unless this can be done in advance.
There is, therefore, no point in agreeing on a timetable to which
Heads of Delegations are not determined to adhere. The attached timetable,
although severe, It is be lieved, realistic. If, however, the feeling of
the Heads of Delegations is that the tim allowed for further discussion is
inadequate then it is recommended that a later date be set for the
termination of the Conference.
/CONFERENCE E/CONF.2/47
Page 2
CONFERENCE TIMETABLE
Wednesday, March 3
10.30
10.30
2.30
4.00
4.00
4.00
5.30
9.00
a .m.
a .m.
p.m.
P.m.
p.m.
p.m.
p.m.
p.m.
Thursday, March
10.30 a.m.
10.30 a.m.
10.30 a.m.
2.30 P.m.
4.00 p.m.
4.00 p.m.
4.00 p.m.
5.30 p.m.
Friday, March 5
2.30 p.m.
4.00 p.m.
5.30 p.m.
(1) To complete
(2) To complete
(3) To complete
(4)
Heads of Delegations
Sub-Committee H of Committee VI on Article 93
Central Drafting Committee
Sub-Committee K of Committee VI on Article 1
Committee IV
Joint Meeting of Working Parties 3 and 4 of
Sub-Committee C of Committee II on Article 14(1)
Central Drafting Committee
Joint Meeting of Working Parties 3 and 4 of
Sub-Committee C of Committee II on Article 14
Thursday ,March 4
10.30 a.m. Committee VI (2)
10.30 a.m .Sub-Committee C omf Committee II on Articles 13 and 14 (3)
10.30 a.m. Joint Sub-Committnee on Articles 15, 16 and 42 of
Cmmittees II and III (4)
2.30 p.m. Central Drafting Committee
4.00 p.m. Committee VI (2)
4.00 p.m. Sub-Commeitte C of Committee II on Articles 13 and 14(3)
4.00 p.m. Joint Sub-Committee on Articles,15, 16 and 42 of
Committees II and III (4)
5.30 p.m. Central Drafting Committee Friday March 5
2.30 p.m. Central Drafting Committee
4.00 p.m. Committee I
5.30 p.m. Central Drafting Committee
(1) To completeReport on Article 14.
(2)To completesecond readings.
(3) To complete final draft of text approved by Heads of Delegations.
(4) To complete drafts of Article 15 as approved by Heads of Delegations
and to complete Report on Articles 16 and 42.
/Saturday E/CONF.2/47
Page 3
Saturday, March 6
10.30 a.m. Committee II (5)
10.30 a.m. Committee III(6)
2.30 p.m. Central Drafting Committee
4.00 p.m. Committee III(6)
5.30 p.m. Central Drafting Committee
Sunday, March 7
Monday March 8
Tuesday, March 9
Central Drafting Committee
Committee II ) To adopt Committee reportes
Committee III ) and approve reports from
Committee VI ) Central Drafting Committee.
Wednesday, March 10
Thursday, March 11
Friday, March 12
Preparation and consideration of final Charter text.
Saturday, March 13
10.30 a.m. Plenary Session
4.00 p.m. Plenary Session
Monday, March 15
10.30 am. Plenary Session
4.00 p.m. Plenary Session
Tuesday, March 16
10.30 a.m. Plenary Session
4.00 p.m. interim Commission
(5) To complete second reading of Chapter III.
(6) To complete second reading of Chapter IV. It is recommended that
Committee III should continue in session on Saturday afternoon and
night as long as is necessary to complete its work.
It will be noted that provisions have been made for simultaneous meetings
of Committees II and III on Saturday morning as an exceptional measure
which it is hoped will be approved by the Heads of Delegations in the
Interest of adhering to the timetable,
Arrangements will also be made for meetings of the Sub-Committee on
Articles 23 and 24 in time to enable its Report to be taken by
Committee III on Saturday. |
|
GATT Library | nm609mq0775 | Consolidated text | General Agreement on Tariffs and Trade, October 14, 1948 | General Agreement on Tariffs and Trade (Organization) | 14/10/1948 | official documents | GATT/CP/2 and GATT/CP/2+Corr.1/Rev.1 | https://exhibits.stanford.edu/gatt/catalog/nm609mq0775 | nm609mq0775_90070088.xml | GATT_145 | 22,661 | 147,163 | UNRESTRICTED
GATT/CP/2
14 October 1948
ORIGINAL: ENGLISH/FRENCH
GENERAL AGREEMENT ON TARIFFS AND TRADE
CONSOLIDATED TEXT
1. The attached text of the General Agreement on Tariffs
and Trade incorporates amendments and rectifications made or
to be made to the Agreement by the following instruments:
Instrument
Date of Entry Into Force
Protocol of Rectifications
Protocol Modifying Certain
Provisions of GATT
Special Protocol Modifying
Article XIV
Special Protocol Relating
to Article XXIV
Protocol of Rectifications
Protocol Modifying Part I
and Article XXIX
Protocol Modifying Part II
and Article XXVI
24 March 1948
15 April 1948
19 April 1948
7 June 1948
14 September 1948
Not yet in force
Not yet in force
2. The Governments of South Africa and Southern Rhodesia
have not accepted the Protocol Modifying Certain Provisions
of the Agreement, The Special Protocol Modifying Article XIV
has been signed by all the Contracting Parties with the ex-
ception of Southern Rnodesia.The Contracting Parties, other
than Belgium, Canada, China, Cuba, Czechoslovakia, France,
Luxembourg, Netherlands, United Kingdom and United States
have not deposited their instruments of acceptance of the
amendment contained in the Special Protocol Relating to
Article XXIV. This amendment is therefore not yet in force
for such Contracting Parties. GENERAL AGREEMENT ON TARIFFS AND TRADE
The Governments of the Commonwealth of Australia, the
Kingdom of Belgium, the United States of Brazil, Burma,
Canada, Ceylon., the Republic of Chile, the Republic of
China, the Republic of Cuba, the Czechoslovak Republic,
the French Republic India, Lebanon, the Grand Duchy of
Luxemburg, the Kingdom of the Netherlands, New Zealand,
the Kingdom of Norway, Pakistan, Southern Rhodesia, Syria,
the Union of South Africa, the United Kingdom of Great
Britain and Northern Ireland, and the United States of
America:
Recognizing that their relations in the field of
trade and economic endeavour should be conducted with a.
view to raising standards of living, ensuring full employ-
ment and a large and steadily growing volume of. real
income and effective demand, developing the full use of
the resources of the world and expanding the production
and exchange of goods;
Being desirous of contributing to these objectives by
entering into reciprocal and mutually advantageous arrange-
ments directed to the substantial reduction of tariffs and
other barriers to trade and to the elimination of dis.
criminatory treatment in international commerce;
Have through their Representatives agreed as follows: - 2 -
PART I
Article I
General Most-Favoured-Nation Treatment
1. With respect to customs duties and charges of any kind
imposed on or in connection with importation or exportation
or imposed on the international transfer of payments for
imports or exports, and with respect to the method of levying
such duties and charges, and with respect to all rules and
formalities in connection with importation and exportation,
and with respect to all matters referred to in paragraphs 2
and 4 of Article III, any advantage, favour, privilege or
immunity granted by any contracting party to any product
originating in or destined for any other country shall be
accorded immediately and unconditionally to the like product
originating in or destined for the territories of all other
contracting parties.
2. The provisions of paragraph 1 of this Article shall not
require the elimination of any preferences in respect of
import duties or charges which do not exceed the levels
provided for in paragraph 4 of this Article and which fall
within the following descriptions:
(a) preferences in force exclusively between two or
more of the territories listed in Annex A, subject.
to the conditions set forth therein;
(b) preferences in force exclusively between two or more
territories which on July 1, 1939, were connected by
common sovereignty or relations of protection or
suzerainty and which are listed in Annexes B, C and
D, subject to the conditions set forth therein;
(c) preferences in force exclusively between the United
States of America and the Republic of Cuba;
(d) preferences in force exclusively between neighbour-
ing countries listed in Annexes E and F.
3. The provisions of paragraph 1 shall not apply to
preferences between the countries formerly a part of the
Ottoman Empire and detached from it on July 24, 1923, pro- - 3- .
rided such preferences are approved under sub-paragraph
5(a) of Article XXV which shall be applied in this respect
in the light of paragraph 1 of Article.XXIXa
4, The margin of preference on any product in respect of
which a preference is permitted under paragraph 2 of this
Article but is not specifically set forth as a maximum
margin of preference in the appropriate Schedule annexed to
this Agreement shall not exceed
(a) in respect of duties or charges on any'produc- desk
cr.ind ch suh Schedule, the difference between the
most-favoured-nation and preferential rates provided
for therein; if no preferential rate is provided for,
the preferential rate shall for the purposes of this
paragraph be taken to be that in force on Apr,il 10
1947 and, if no -mosthavoured-on0natirate is pro-
vided for, mMtheargin shall not exceed the difference
between the most-favoured-nation and preferential
rates existing on April 10, 1947;
(b) in respect of duties or charges on any product not
described in the appropriate Schedule, the difference
between the most-favoured-nation and preferential
rates existing on April 10, 1947.
In the case of the contracting parties named in
Annex G, the date of Apri,l 10 1947, referred to in sub-
paragraphs (a) and (b ) of this gpararaph shall be replaced
by the respective dates set forth in that A.nnex - . - 41. .*
Article II
Sconcules of COolessions
1 (a) Each contracting party shall accord tcethe commere3
of the other contracting parties treatment no less favour-
able tfan that provided for in the appropriate Part of the
appropriate Schddule annexel to th.s Agreement
(b) Tie pcoducds desCribIeC in Part of the Schedule
relating to any contra,ting party which are the products
of teritori s of other contraiescting partz shall, on
their importation into the territory to which the Schedule
relates9and subject to the terms, conditions or qualifica-
tions set forth in that Schedule, be exempt from ordinary
customs duties in excess sf those oet forth and provided
for.theuein , Stch products shall also be exempt from all
other duties or charges of any kind imposed on or in con-
nection with importation in excess of those imposed on the
date oL this Agreement or those directly and mandatorily
required to be imposed therafter by legislation in force
in the importing territory on .hat date
(c) The products described in Part II of the Schedule
relating to any contracting party, which are the products
of territories entitled under Article I to receive prefer-
ential treatmeit upon Importation into the territory to
which the Schedule relates, shall, on their importation into
such territory, and subject to the terms, conditions or
qualifications set forth in that Schedule, be exempt from
ordinary customs duties in excess of those set forth and
provided for iI Part I of that Schedule. Such products
shall also be exempt frohm all oter duties or charges of
any kind imposed on or in connection with importation in ex-
cess of those impohsed on te date of this Agreement or those
directly and mandatorily required to be imposed thereafter
by legislation iin force n the importing territory on that
date0 Nothing in this Article shall prevent any contracting
party from maintaining its requirements existing on the date
cf this Agreement as to the eligibility of goods for entry
at preferential rates of duty. 2. Nothing in this Article shall prevent any contracting
party from imposing at any time on the importation of any
product
(a) a charge equivalent to an internal tax imposed
consistently with the provisions of paragraph 2
of Article III in respect of the like domestic
product or in respect of an article from which
the imported product has been manufactured or
produced in whole or in part;
(b) any anti-dumping or countervailing duty applied
consistently with the provisions of Article VI;
(c) fees or other charges commensurate with the cost
of services rendered.
3. No contracting party shall alter its method of deter-
mining dutiable value or of converting currencies so as to
impair the value of any of the concessions provided for in
the appropriate Schedule annexed to this Agreement.
4. If any contracting party establishes, maintains or
authorizes, formally or in effect, a monopoly of the
importation of any product described in the appropriate
schedule annexed to this Agreement, such monopoly shall not,
except as provided for in that Schedule or as otherwise
agreed between the parties which initially negotiated the
concession, operate so as to afford protection on the average
in excess of the amount of protection provided for in that
Schedule The provisions of this paragraph shall not limit
the use by contracting parties of any form of assistance
to domestic producers permitted by other provisions of
this Agreement.
5. If any contracting party considers that a product is
not receiving from another contracting party the treatment
which the first contracting party believes to have been con-
template by a concession provide ed for in the appropriate
Schedule annexed to this Agreement, it shall bring the matter
directly to the attention of the other contracting party.
If the latter agrees that the treatment contemplated was that
claimed by the first contracting party, but declares that such
treatment cannot be accorded because a court or other proper authority has ruled to the effect that the product involved
cannot be classified under the tariff laws of such contract-
ing party so as to permit the treatment contemplated in
this Agreement, the two contracting parties, together with
any other contracting parties substantially interested,
shall enter promptly into further negotiations with a view
to a compensatory adjustment of the matter.
6.(a) The specific duties and charges included in the
Schedules relating to contracting parties members of the
International Monetary Fund, and margins of preference in
specific duties and charges maintained by such contracting
parties, are expressed in the appropriate currency at the
par value accepted ur provisionally recognized by the Fund
at the date of this Agreement. Accordingly, in case this
par value is reduced consistently with the Articles of
Agreement of the International Monetary Fund by more than
twenty per centum, such specific duties and charges and
margins of preference may be adjusted to take account of
such reduction;
Provided that the CONTRACTING PARTIES (i. e. the contracting
parties acting jointly as provided for in Article XXV)
concur that such adjustments will not impair the value of
the concessions provided for in the appropriate Schedule
or elsewhere in this Agreement, due account being taken of
all factors which may influence the need for, or urgency of,
such adjustments.
(b) Similar provisions shall apply to any contracting
party not a member of the Fund, as from the date on which
such contracting party becomes a member of the Fund or enters
into a special exchange agreement in pursuance of Article XV.
7. The Schedules annexed to this Agreement are hereby
made an integral part of Part I of this Agreement. PART II
ARTICLE III
National Treatment on Internal Taxation and Regulation
1. The contracting parties recognize that internal taxes
and other internal charges, and laws, regulations and re-
quirements affecting the internal sale, offering for sale,
purchase, transportation, distribution or use of
products, and internal quantitative regulations requiring
the mixture, processing or use of products in specified
amounts or proportions, should not be applied to imported
or domestic products so as to afford protection to
domestic production.
2. The products of the territory of any contracting
party imported into the territory of any other contracting
party shall not be subject, directly or indirectly, to
internal taxes or other internal charges of any kind in
excess of those applied, directly or indirectly, to like
domestic products. Moreover, no contracting party shall
otherwise apply internal taxes or other internal charges
to imported or domestic products in a manner contrary to
the principles set forth in paragraph 1.
3.. With respect to any existing internal tax which is
inconsistent with the provisions of paragraph 2 but which
is specifically authorized under a trade agreement, in
force on April 10, 1947, in which the import duty on the
taxed product is bound against increase, the contracting
party imposing the tax shall be free to postpone the
application of the provisions of paragraph 2 to such tax
until such time as it can obtain release from the obliga-
tions of such trade agreement in Qrder to permit the
increase of such duty to the extent necessary to compensate
for the elimination of the protective element of the tax.
4. The products of the territory of any contracting
party imported into the territory of any other contracting
party shall be accorded treatment no less favourable than
that accorded to like products of national origin in respect
of all laws, regulations and requirements affecting their - 8 -
internal sale, offering for sale, purchase, transportation,
distribution or use. The provisions of this paragraph
shall not prevent the application of differential internal
transportation charges which are based exclusively on the
economic operation of the means of transport and not on
the nationality of the product.
5. No contracting party shall establish or maintain any
internal quantitative regulation relating to the mixture,
processing or use of products in specified amounts or
proportions which requires, directly or indirectly that
any specified amount or proportion of any product which
is the subject of the regulation must be supplied from
domestic sources. Moreover. no contracting party shall
otherwise apply internal quantitative regulations in a
manner contrary to the principles set forth in paragraph 1.
6. The provisions of paragraph 5 shall not apply to any
internal quantitative regulation in force in the territory
of any contracting party on July 1, 1939, April :10, 1947,
or March 24, 1948, at the option of that contracting party;
Provided that any such regulation which is contrary to
the provisions of paragraph 5 shall not be modified to the
detriment of imports and shall be treated as a customs duty
for the purpose of negotiations
7 No internal quantitative regulation relating to the
mixture, processing or use of products in specified amounts
or proportions shall be applied in such a manner as to
allocate any such amount or proportion among external
sources of supply.
8.(a) The provisions of this Article shall not apply to
laws, regulations or requirements governing the procurement
by governmental agencies of products purchased for govern-
mental purposes and not with a view to commercial resale or
.with a view to use in the production of goods for commercial
sale.
(b) The provisions of this Article shall not prevent the
payment of subsidies exclusively to domestic producers, in-
cluding payments to domestic producers derived from the - 9 -
proceeds of internal taxes or charges applied consistently
with the provisions of this Article and subsidies effected
through governmental purchases of domestic products.
9. The contracting parties recognize that internal
maximum price control measures, even though conforming to
the other provisions of this Article, can have effects
prejudicial to the interests of contracting parties supplying
imported products. Accordingly, contracting parties applying
such measures shall take account of the interests of ex-
porting contracting parties with a view to avoiding to the
fullest practicable extent such prejudicial effects.
l0. The provisions of this Article shall not prevent any
contracting party from establishing or maintaining internal.
quantitative regulations relating to exposed cinematograph
films and meeting the requirements of Article IV. -10 -
Article IV
Special Provisions relating to Cinematograph Films
If any contracting party establishes or maintains
internal quantitative regulations relating to exposed cinema-
tograph films, such regulations shall take the form of screen
quotas which shall conform to the following requirements:
(a) screen quotas may require the exhibition of cinemato-
graph films of national origin during a specified
minimum proportion of the total screen time actually
utilized, over a specified period of not less than
one year, in the commercial exhibition of all films
of whatever origin, and shall be computed on the
basis of. screen time per theatre per year or the
equivalent thereof;
(b) with the exception of screen time reserved for films
of national origin under a screen quota, screen time
including that released by administrative action from
screen time reserved for films of national origin,
shall not be allocated formally or in effect among
sources of supply;
(c) notwithstanding the provisions of sub-paragraph (b)
of this Article, any contracting party may maintain
screen quotas conforming to the requirements of sub-
paragraph (a) of this Article which reserve a minimum
proportion of screen time for films of a specified
origin other than that of the contracting party im.-
posing such screen quotas; Provided that no such
minimum proportion of screen time shall be increased
above the level in effect on April 10, 1947;
(d) screen quotas shall be subject to negotiation for
their limitation, liberalization or elimination. Article v
Freedom of Transit
1. Goods (including baggage), and also vessels and other
means of transport, shall be deemed to be in transit across
the territory of a contracting party when the passage across
such territory, with or without trans-shipment, warehousing
breaking bulk, or change in the mode of transport, is only a
portion of a complete journey beginning and terminating
beyond the frontier of the contracting party across whose
territory the traffic passes. Traffic of this nature is
termed in this Article "traffic in transit".
2. There shall be freedom of transit through the territory
of each contracting party, via the routes most convenient for
international transit, for traffic in transit to or from the
territory of other contracting parties. No distinction shall
be trade which is based on the flag of vessels, the place of
origin, departure, entry, exit or destination, or on any
circumstances relating to the ownership of goods, of vessels
or of other means of transport.
3. Any contracting party may require that traffic in
transit through its territory be entered at the proper
custom house, but, except in cases of failure to comply with
applicable customs laws and regulations such traffic coming
from or going to the territory of other contracting parties
shall not be subject to any unnecessary delays or restric-
tions and shall be exempt from customs duties and from all
transit duties or other charges imposed in respect of transit,
except charges for transportation or those commensurate with
administrative expenses entailed by transit or with the cost
of services rendered.
4. All charges and regulations imposed by contracting
parties on traffic in transit to or from the territories of
other contracting parties shall be reasonable, having
regard to the conditions of the traffic.
5. With respect to all charges, regulations and formal-
cities in connection with transit, each contracting party
shall accord to traffic in transit to or from the territory -12-
of any other contracting party treatment no less favourable
than the treatment accorded to traffic in transit to or
from any third country.
6. Each contracting party shall accord to products which
have been in transit through the territory of any other
contracting party treatment no less favourable than that
which would have been accorded to such products had they
been transported from their place of origin to their destina-
tion without going through the territory of such other con-
tracting party. Any contracting party shall, however, be
free to maintain its requirements of direct consignment
existing on the date of this Agreement, in respect of any
goods in regard to which such direct consignment is a
requisite condition of eligibility for entry of the goods
at preferential rates of duty or has relation to the
contracting party's prescribed method of valuation for
duty purposes.
7. The provisions of this Article shall not apply to the
operation of aircraft in transit, but shall apply to air
transit of goods (including baggage). - 13 -
Article VI
Anti-Duming and Countervailing Duties
1. The contracting parties recognize that dumping, by
which products of one country are introduced into the
commerce of another country at less than the normal value
of the products, is to be condemned if it causes or
threatens material injury to an established industry in the
territory of a contracting party or materially retards the
establishment of a domestic industry. For the purposes of
this Article, a product is to be considered as being intro-
duced into the commerce of an importing country at less
than its normal value, if the price of the product exported
from one country to another
(a) is less than the comparable price, in the ordinary
course of trade, for the like product when destined
for consumption in the exporting country,
or,
(b) in the absence of such domestic price, is less than
either
(i) the highest comparable price for the like
product for export to any third country in
the ordinary course of trade, or
(ii) the cost of production of the product in the
country of origin plus a reasonable addition
for selling cost and profit.
Due allowance shall be made in each case for differences in
conditions and terms of sale, for differences in taxation,
and for other differences affecting price comparability.
2. In order to offset or prevent dumping, a contracting
party may levy on any dumped product an anti-dumping duty
not greater in amount than the margin of dumping in respect
of such products For the purposes of this Artiole, the
margin of dumping is the price difference determined in
accordance with the provisions of paragraph 1.
3. No countervailing duty shall be levied on any product
of the territory of any contracting party imported into the
territory of another contracting party in excess of an amount - 4 - t-
egual to the estimated bounty or subsidy determined to have
been granted directly or indirectly on the manufacture,
production of export oI cuch prcduot in the country of origin
cr exportation, including any special subsidy to the trans-
portation ofla particuL.r product, The term "countervailing
duty" hall.be understood to mean a speciav duty leri d
for tha purpise ofnoffsettilg ano bounty ur subsidy bestowed,
directly or indirently upo± the ma, ufacture production
or fxot ot.'ny merc.andizs
4, No product of the territory of any contracting party
imported into the territory of any other contracting party
shal- be sutject ;o anti-dumping nr rourti:vailnng duty by
reason of tme exe ptioncof su h product froem outis Or
taxes borne by the likd proluct when destined formpconsuMtion
in the countrrigin o..i gor expor, ation or oy reason of the
relunc of suchsdutie' os.taxez-
5o. Nc product of thi terr:tory of any contracting party
imported into the territory of any other contracting party
shell be subject to bot-h anii.ldud- ngnana coritervi lneg
duties to cempensata for the same situatuoniof d.mpJng or
a I i-ubsidization.
6S No contracting party shall levy -any anntidumpig or
countervailing duty on the importation of any product of the
territory of another contracting parsty unles ii determ:nes
that the effect of the dumping or subsidization, as the case
may be, is such as to cause or threaten material injury
to an established domestic industry, or is such as to
retard materially the establishment of a domesticindustry.
,e CONTEACTINE: PARTIB may waive the requirements of this
paragraph so as to permit a contracting party to levy an
antidumpingunr co,iling dutyL'Linuton the ijportaf on oI
any product for tha purpose of offsettingn dumpig or sub-
sidization which causes or threatens material injury to an
industry in the territory of another contracting party
exporting the product concerned to the ter ritor; f' the
imponrting cotracti.ng party
7a A system for the stabilization of the domestic price
or of thne retur to domestic producers of a primary commodity, independently of the movements of export prices,
which results at times in the sale of the commodity for export
a, a price lower than the comparable price charged for
the like commodity to buyers in the domestic market, shall
be presumed not to result in material injury within the
meaning of paragraph 6 if it is determined by consultation
among the contracting parties substantially interested in
the commodity concerned that:
(a) the system has also resulted in the sale of the
commodity for export at a price higher than the.
comparable price charged for the like commodity
to buyers in the domestic market, and.
(b) the system is so operated, either because of the
effective regulation of production, or otherwis,.
as not to stimulate exports unduly or otherwise
seriously prejudice the interests of other
contracting parties. - 16 -
Article VII
Valuation for Customs Purposes
1. The contracting parties recognize the validity of the
general principles of valuation set forth in the following
paragraphs of this Article, and they undertake to give
effect to such principles, in respect of all products sub-
ject to duties or other charges or restrictions on
importation and exportation based upon or regulated in any
manner by value, at the earliest practicable date. More-
over, they shall, upon a request by another contracting
party review the operation of any of their laws or regula-
tions relating to value for customs purposes in the light
of these principles. The CONTRACTING PARTIES may request
from contracting parties reports on steps taken by them
in pursuance of the provisions of this Article.
2.(a) The value for customs purposes of imported merchandise
should be based on the actual value of the imported mer-
chandise on which duty is assessed, or of like merchandise,
and should not be based on the value of merchandise of
national origin or on arbitrary or fictitious values.
(b) "Actual value" should be the price at which, at a time
and place determined by the legislation of the country of
importation, and in the ordinary course of trade. such or
like merchandise is sold or offered for sale under fully
competitive conditions. To the extent to which the price
of such or like merchandise is governed by the quantity
in a particular transaction, the price to be considered
should uniformly be related to either (i) comparable
quantities, or (ii) quantities not less favourable to
importers than those in which the greater volume of the
merchandise is sold in the trade between the countries
of exportation and importation.
(c) When the actual value is not ascertainable in accordance
with sub-paragraph (b) of this paragraph, the value for
customs purposes should be based on the nearest ascertainable
equivalent of such value.
3. The value for customs purposes of any imported product - 17 -
should not include the amount of any internal tax, applicable
within the country of origin or export, from which the im-
ported product has been exempted or has been or will be
relieved by means of refund.
4.(a) Except as otherwise provided for in this paragraph.
where it is necessary for the purposes of paragraph 2 of this
Article for a contracting party to convert into its own cur-
rency a price expressed in the currency or another country:
the conversion rate of exchange to be used shall be based
on the par values of the currencies involved as established
pursuant to the Articles of Agreement of the lnternational
Monetary Fund or by special exchange agreements entered
into pursuant to Article XV of this Agreement.
(b) Where no such par value has been established; the con-
version rate shall reflect effectively the current value of
such currency in commercial transactions.
(c) The CONTRACTING PARTIES, in agreement with the Inter-
national Monetary Fund, shall formulate rules governing the
conversion by contracting parties of any foreign currency
in respect of which multiple rates of exchange are maintained
consistently with the Articles of Agreement of the Inter-
national Monetary Fund. Any contracting party may apply
such rules in respect of such foreign currencies for the pur-
poses of paragraph 2 of this Article as an alternative to
the use of par values. Until such rules are adopted by the
CONTRACTING PARTIES, any contracting party may employ, in
respect of any such foreign currency, rules of conversion
for the purposes of paragraph 2 of this Article which are
designed to reflect effectively the value of such foreign
currency in commercial transactions.
(d) Nothing in this paragraph shall be construed to re-
quire any contracting party to alter the method of converting
currencies for customs purposes which is applicable in its
territory on the date of this Agreement, if such alteration
would have the effect of increasing generally the amounts
of duty payable.
5. The bases and methods for determining the value of products subject to duties or other charges or restrictions
based upon or regulated in any manner by value should be
stable and should be given sufficient publicity to enable
traders to estimate, with a reasonable degree of certainty,
the value for customs purposes.
Article VIII
Formalities connected with
importation and Exportation
1. The contracting parties recognize that fees and charges,
other than duties, imposed by governmental authorities on
or in connection with importation or exportation, should be
limited in amount to the approximate cost of services rendered
and should not represent an indirect protection to domestic
products or a taxation of imports or exports for fiscal
purposes. The contracting parties also recognize the need
for reducing the number and diversity of such fees and
charges, for minimizing the incidence and complexity of
import and export formalities, and for decreasing and
simplifying import and export documentation requirements.
2. The contracting parties shall take action in accord-
ance with the principles and objectives of paragraph 1 of
this Article at the earliest practicable date. Moreover,
they shall, upon request by another contracting party,
review the operation of any of their laws and regulations
in the light of these principles.
3. No contracting party shall impose substantial penalties
for minor breaches of customs regulations or procedural re-
quirements. In particular, no penalty in respect of any
omission or mistake in customs documentation which is easily
rectifiable and obviously made without fraudulent intent
or gross negligence shall be greater than necessary to serve
merely as a warnings.
4. The provisions of this Article shall extend to fees,
charges, formalities and requirements imposed by govern-
metal authorities in connection with importation and ex-
portation, including those relating to: - 19 -
(a) consular transaction: such as consular irnvoices
and certificates;
(b) quantitative restrictions;
(c) licensing;
(d) exchange control;
(e) statistical services;
(f) documents, documentation and certification;
(g) analysis and inspection; and
(h) quarantine, sanitation and fumigation.
Article IX
Marks of Origin
1. Each contracting party shall accord to the products of
the territories of other contracting parties treatment with
regard to marking requirements no less favourable than the
treatment accorded to like products of any third country.
2. whenever it is administratively practicable to do so,
contracting parties should permit required marks of origin
to be affixed at the time of importation.
3. The laws and regulations of contracting parties re-
lating to the marking of imported products shall be such as
to permit compliance without seriously damaging the products,
or materially reducing their value, or unreasonably in-
creasing their cost.
4. As a general rule no special duty or penalty should be
imposed by any contracting party for failure to comply with
marking requirements prior to importation unless corrective
marking is unreasonably delayed or deceptive marks have been
affixed or the required marking has been intentionally
omitted.
5. The contracting parties shall co-operate with each other
with a view to preventing the use of trade names in such
manner as to misrepresent the true origin of a product, to
the detriment of such distinctive regional or geographical
names of products of the territory of a contracting party as
are protected by its legislation. Each contracting party
shall accord full and sympathetic consideration to such re- - 2 - ..
quests or representations as may be made by any other con-
tracting party regarding the application of the undertaking
set forth in the preceding sentnnce to Aames or products
which have been communicated to it by the other contracting
party.
Article X
Publication and Administration of
guade ReaGlations
1. Lawst regula;ions, judicial decisions and administra-
tive rulings of general applications, made effective by any
contracting party, pertainieg to th classification or the
valuation of products for customs purposesr or to -ates of
duty, taxes or other charges, or to requirements, restrictions
or prohibitions on imports or exports or oa tfe tr nsIer
of payments therefore, or affecting theiristri, d¢i..tbution,
transportation, i, nsurance, warehousing, inspection exhibition,
processing, mixing or. other us shall be published promptly
in sucha mnner as to enable governments and ttraders >o
become acquthnted wi', them. Agreemients affecting inter-
national trade policy which are in force be geen th6 -overn-
ment or a governmental agency of any contracting party and
the government or governmental agency of any other con-
tracting party shall also be published, The provisions of
this paralg raph shllnot require any contracting party to
disclose confideotial infcrmation which would impede law
enforcement or otherwise be contrary to the public interest
or would prejudice the legitimate commercial interests if
particular enterprises, public or private
20 No measure of general application taken by any con-
tracting party effecting an advance in a rate of duty or
oteer chargQ on imports under an established and uniform
practice, or imposing m new or rore burdensome req,irement
restrictionhor prolbition on imporns, or ot the transfer of
payments therefor, shall be enforced before such measure
has been officially published.
3.(a) Each contracting party shall administer in a uniform, - 21 -
impartial and reasonable manner all its laws, regulations,
decisions and rulings of the kind described in paragraph 1
of this Article.
(b) Each contracting party shall maintain, or institute
as soon as practicable, judicial, arbitral or administrative
tribunals or procedures for the purpose, inter alia, of the
prompt review and correction of administrative action re-
lating to customs matters. Such tribunals or procedures
shall be independent of the agencies entrusted with admin-
istrative enforcement and their decisions shall be im-
plemented by, and shall govern the practice of, such agencies
unless an appeal is lodged with a court or tribunal of
superior jurisdiction within the time prescribed for appeals
to be lodged by importers; Provided that the central admin-
istration of such agency may take steps to obtain a review
of the matter in another proceeding if there is good cause
to believe that the decision is inconsistent with established
principles of law or the actual facts.
(c) The provisions of sub-paragraph (b) of this paragraph
shall not require the elimination or substitution of
procedures in force in the territory of a contracting party
on the date of this Agreement which in fact provide for an
objective and impartial review of administrative action even
though such procedures are not fully or formally independent
of the agencies entrusted with administrative enforcement.
Any contracting party employing such procedures shall, upon
request, furnish the CONTRACTING PARTIES with full informa-
tion thereon in order that they may determine whether such
procedures conform to the requirements of this sub-paragraph. General Elimination of quantitatiive Restrictions
1. No prohibitions or restrictions other than duties,
taxes or other charges, whether made effective through quotas,
import or export licenses or other measures, shall be in-
stituted or maintained by any contracting party on the
importation of any product of the territory of any other con-
tracting party or on the exportation or sale for export of
any product destined for the territory of any other con-
tracting party.
2. The provisions of paragraph 1 of this Article shall
not extend to the following:
(a) export prohibitions or restrictions temporarily
applied to prevent or relieve critical shortages of
foodstuffs or other products essential to the ex-
porting contracting party;
(b) import and export prohibitions or restrictions
necessary to the application of standard's or
regulations for the classification, grading or
marketing of commodities in international trade;
(o) import restrictions on any agricultural or fisheries
product, imported in any form, necessary to the en-
forcement of governmental measures which operate:
(i) to restrict the quantities of the like domestic
product permitted to be marketed or produced,
or, if there is no substantial domestic production
for which the imported product can be directly
substituted; or
(ii) to remove a temporary surplus of the like
domestic product, or, if there is no substantial.
domestic production of the like product, of a
domestic product for which the imported product
can be directly substituted, by making the
surplus available to certain groups of domestic
consumers free of charge or at prices below the
current market level; or
(iii) to restrict the quantities p emitted to be produced of any animal product the production
of which is directly dependent, wholly or mainly,
on the imported commodity, if the domestic pro-
duction of that commodity is relatively negligible,
Any contracting party applying restrictions on the
importation of any product pursuant to sub-paragraph (c) of
this paragraph shall give public notice of the total quantity
or value of the product permitted to be imported during a
specified future period and of any change in such quantity
or value. Moreover, any restrictions applied under (i) above
shall not be such as will reduce the total of imports relative
to the total of domestic production, as compared with the
proportion which might reasonably be expected to rule between
the two in the absence .of restrictions. In determining this
proportion, the contracting party shall pay due regard to
the proportion prevailing during a previous representative
period and to any special factors which may have affected
or may be affecting the trade in the product concerned.
3. Throughout Articles XI, XII, XIII and XIV the terms
"import restrictions" or "export restrictions" include re-
strictions made effective through state-trading operations.
Article XII
Restrictions to Safeguard the Balance of Payments
1. Not withstanding the provisions of paragraph 1 of
Article XI, any contracting party, in order to safeguard its
external financial position and balance of payments, may
restrict the quantity or value of merchandise permitted to
be imported, subject to the provisions of the following
paragraphs of this Article.
2.(a) No contracting party shall institute, maintain or
intensify import restrictions under this Article except to
the extent necessary
(i) to forestall the imminent threat of, or to stop,
a serious decline in its monetary reserves, or (ii) in the case of a contracting party with very
low monetary reserves, to achieve a reasonable
rate of increase in its reserves.
Due regard shall be paid in either case to any special
factors which may be affecting the contracting party's
reserves or need for reserves, including, where special ex-
ternal credits or other resources are available to it, the
need to provide for the appropriate use of such credits or
resources.
(b) Contracting parties applying restrictions under sub-
paragraph (a) of this paragraph shall progressively relax
them as such conditions improve, maintaining them only to the
extent that the conditions specified in that sub-paragraph
still justify their application. They shall eliminate the
restrictio ns when conditions would no longer justify their
institution or maintenance under that sub-paragraph.
3.(a) The contracting parties recognize that during the next
few years all of them will be confronted in varying degrees
with problems of economic adjustment resulting from the war.
During this period the CONTRACTING PARTIES shall, when re-
quired to take decisions under this Article or under Article
XIV, take full account of the difficulties of post-war
adjustment and of the need which a contracting party may have
to use import restrictions as a step towards the restoration
of equilibrium in its balance of payments on a sound and
lasting basis.
(b) The contracting parties recognize that, as a result
of domestic policies directed toward the achievement and
maintenance of full and productive employment and large and
steadily growing demand or toward the reconstruction or
development of industrial and other economic resources and
the raising of standards of productivity, such a contacting
party may experience a high level of demand for imports.
Accordingly.
(i) notwithstanding the provisions of paragraph 2
of this Article, no contracting party shall be
required to withdraw or modify restrictions on - 25 -
the ground that a change in the policies referred
to above would render unnecessary the restrictions
which it is applying under this Article;
(ii) any contracting party applying import restrictions
under this Article may determine the incidence of
the restrictions on imports of different products
or classes of products in such a way as to give
priority to the importation of those products which
are more essential in the light of such policies.
(a) Contracting parties undertake, in carrying out their
domestic policies:
(i) to pay due regard to the need for restoring equili-
brium in their balance of payements on a sound and
lasting basis and to the desirability of assuring
an economic employment of productive resources;
(ii) not to apply restrictions so as to prevent un-
reasonably the importation of any description of
goods in minimum commercial quantities, the ex-
clusion of which would impair regular channels
of trade, or restrictions which would prevent
the importation of commercial samples, or
prevent compliance with patent, trademark,
copyright, or similar procedures; and
(iii) to apply restrictions under this Article in
such a way as to avoid unnecessary damage
to the commercial or economic interests of
any other contracting party.
4.a) Any contracting party which is not applying restrictions
under this Article, but is considering the need to do so; shall,
before instituting such restrictions (or, in circumstances in
which prior consultation is impracticable, immediately after
doing so), consult with the CONTRACTING PARTIES as to the nature
of its balance-of-payments difficulties, alternative corrective
measures which may be available, and the possible effect of such
measures on the economies of other contracting parties. No
contracting party shall be required in the course of consulta-
tions under this sub-paragraph to indicate in advance the choice or timing of any particular measures which it may
ultimately determine to adopt.
(b) The CONTRACTING PARTIES may at any tire invite any
contracting party which is applying import restrictions
under this Article to enter into such consultations with
them, and shall invite any contracting party substantially
intensifying such restrictions to consult within thirty
days. A contracting party thus invited shall participate in
such dissussions The CONTRACTING PARTIES may invite any
other contracting party to take part in these discussions.
Not later than January 1, 1951, the CONTRACTING PARTIES shall
review all restrictions existing on that day and still
applied under this Article at the time of the review.
(c) Any contracting party may consult with the CONTRACTING
PARTIES with a view to obtaining their prior approval for
restrictions which the contracting party proposes, under this
Article, to maintain, intensify or institute; or for the
maintenance, intensification or institution of restrictions
under specified future conditions. As a result of such con-
sultations, the CONTRACTING PARTIES may approve in advance
the maintenance, intensification or institution of restric-
tions by the contracting party in question insofar as the
general extent degree of intensity and duration of the
restrictions are concerned. To the extent to which such
approval has been given, the requirements of sub-paragraph (a)
of this paragraph shall be deemed to have been fulfilled, and
the action of the contracting party applying the restrictions
shall not be open to challenge under sub-paragraph (d) of this
paragraph on the ground that such action is inconsistent
with the provisions of paragraph 2 of this Article.
(d) Any contracting party which considers that another con-
tracting party is applying restrictions under this Article
inconsistently with the provisions of paragraphs 2 or 3 of
this Article or with those of Article XIII (subject to the
provisions of Article XIV) may bring the matter for discussion
to the CONTRACTING PARTIES; and the contracting party apply-
ing the restrictions shall participate in the discussion. The CONTRACTING PARTIES, if they are satisfied that there
is a prima face case that the trade of the contracting party
initiating the procedure is adversely affected, shall submit
their views to the parties with the aim of achieving a
settlement of the matter in question which is satisfactory
to the parties and to the CONTRACTING PARTIES, If no such
settlement is reached and if the CONTRACTING PARTIES deter-
mine that the restrictions are being applied inconsistently
with the provisions of paragraphs 2 or 3 of this Article of
with those of Article XIII (subject to the provisions of
Article XIV), they shall recommend the withdrawal or modifi-
cation of the restrictions. If the restrictions are not
withdrawn or modified in accordance with the recommendation
of the CONTRACTING PARTIES within sixty days, they may re-
lease any contracting party from specified obligations under
this Agreement towards the contracting party applying the
restrictions.
(e) It is recognized that premature disclosure of the
prospective application, withdrawal of modification of any
restriction under this Article might stimulate speculative
trade and financial movements which would tend to defeat the
purposes of this Article. Accordingly, the CONTRACTING PARTIES
shall make provision for the observance of the utmost secrecy
in the conduct of any consultation.
5. If there is a persistent and widespread application of
import restrictions under this Article, indicating the
existence of a general disequilibrium which is restricting
international trade, the CONTRACTING PARTIES shall initiate
discussions to consider whether other measures might be taken,
either by those contracting parties whose balances of pay-
ments are under pressure or by those whose balances of pay-
ments are tending to be exceptionally favourable, or by any
appropriate inter-governmental organization, to remove the
underlying causes of the disequilibrium. On the invitation of
the CONTRACTING PARTIES, contracting parties shall partici-
pate in such discussions. Article XIII
Non-discriminatory Administration of Quantitative
Restrictions
1. No prohibition or restriction shall be applied by any
contracting party on the importation of any product of the
territory of any other contracting party or on the exporta-
tion of any product destined for the territory of any other
contracting party, unless the importation of the like product
of all third countries or the exportation of the like product
to all third countries is similarly prohibited or restricted.
2. In applying import restrictions to any product, con-
tracting parties shall aim at a distribution of trade in such
product approaching as closely as possible the shares which
the various contracting parties might be expected to obtain
in the absence of such restrictions, and to this end shall
observe the following provisions:
(a) wherever practicable, quotas representing the total
amount of permitted imports (whether allocated among
supplying countries or not) shall be fixed, and notice
given of their amount in accordance with paragraph
3(b) of this Article;
(b) in cases in which quotas are not practicable, the
restrictions may be applied by means of import
licenses or permits without a quota;
(c) contracting parties shall not, except for purposes of
operating quotas allocated in accordance with sub-
paragraph (d) of this paragraph, require that import
licenses or permits be utilized for the importation of
the product concerned from a particular country or
source;
(d) in cases in which a quote is allocated among supplying
countries, the contracting party applying the re-
strictions may seek agreement with respect to the
allocation of shares in the quota with all other con-
tracting parties having a substantial interest in
supplying the product concerned. In cases in which
this method is not reasonably practicable, the contract-
ing party concerned shall allot to contracting parties having a substantial interest in supplying the product
shares based upon the proportions, supplied by such
cortractirng parties during a previous representative
period, of the total quantity or value of imports of the
product, due account being taken of any special factors
which may have affected or may be affecting the trade
in the product. No conditions or formalities shall be
imposed which would prevent any contracting party from
utilizing fully the share of any such total quantity
or value which has been allotted to it, subject to im-
portation being made within any prescribed period to
which the quota may relate.
3.(a) In cases in which import licences are issued in con-
nection with import restrictions, the contracting party
applying the restrictions shall provide, upon the request of
any contracting party having an interest in the trade in the
procuct concerned, all relevant information concerning the
administration of the restrictions, the import licences
granted over a recent period and the distribution of such
licences among supplying countries; Provided that there shall
be no obligation to supply information as to the names of
importing or supplying enterprises.
(b) In the case of import restrictions involving the fixing
of quotas, the contracting party applying the restrictions
shall give pivo public notice of the total quantity or value of
tl,'uct or products which will be permited to be imported
duing r sapecified future period and of any change in such
quantityo r value. Any supplies of the product in questoSn
whcoh wrbe en route at the time at which public notice was
given shall oct be excluded from entry; Provided that they
may be counte dso far as practicable, against the quantity
pemittest to be imported in the period in qeastion, and also,
weire necss-ary, against the quantitites permitted to be im-
Zorted in the next following period or periods; and Provided
furthr± hlat if any contrcotigG party customarily exempts
romo seuch restrictions products entered for consumption or
withdrawn from warehouse for consumption during a periodo-f
thirty days frter the day of suc hpublco notice, such pracice - 30 -
shall be considered full compliance with this sub-paragraph.
(c) In the case of quotas allocated among supplying
countries, the contracting party applying the restrictions
shall promptly inform all other contracting parties having an
interest in supplying the product concerned of the shares in
the quotas currently allocated, by quantity or value, to the
various supplying countries and shall give public notice
thereof.
4. With regard to restrictions applied in accordance with
paragraph 2(d) of this Article or under paragraph 2(c) of
Article XI, the selection of a representative period for any
product and the appraisal of any special factors affecting
the trade in the product shall be made initially by the con-
tracting party applying the restricteon: Providod that such
contracting party shall upon the request of any other con-
tracting party having a substantial interest in supplying
that product or upon the request of the CONTRACT,NG PARTIES5
consult promptly with the other contracoing party Mr the
CONTRACTING PARTIES regarding the need or an adjustment of
the proportion determined or of thedbase perioc selected,
or for the reappraisal of the specialfacto,rs involved or
for the elimination of conditions, formalities or any other
provisions established unilaterally relating to- the alloca
tion of an adequate quota or its unrestricted .utilization
5, The'rovisions of this Article shall apply to any
tariJruota instituted or maintained by any contracting
party, and, insofar as app,licable the principles of this
Article shall also extend to export restr.ictions - 31 - . L -
Article XIV
options too the Rule of Nn-discrimination
1.(a) The contracting parties recognize that the aftermath of
the war has brought difficult problems of economic adjustment
which do not permit the immediate full ach-evement of non
discrimLnatoxy administration of quantitative restrictions
and therefore require the exceptional transitional period
arrangements set pforth in. thisparagraph
(b) A contracting party which applies restrictions under
A,i-cle XII May in the sttrictions re tatetioia, devic
fron the provisions of Article XIII in a manner having equi-
valent effect to restrictions on payments and transfers for
current international transactions which that contracting
party may at that time apply under Article XIV of the
Articles of Agreement of the International Monetary Fund, or
under an analogous provision of a special exchange agreement
entered into pursuant to paragraph 6 o. Article XVA
(c) A contracting party which is applying restrictions under
Article XII and whic, on March l 1948 was applying import re-
stricticns to safeguard its balance of payments in a manner
which deviated from the rules of non-discrimination set forth
in Article XIII may, to the extent that such deviation would
not have been authorized on that date by sub-paragraph (b),
continue so to deviate, and may adapt such deviation to
changing, c.rcumstances,
(d) Ang contractinr party which before July 1, 1948 has
signed the Protocol of Provisional Application agreed upon at
Geneva on October 30, 1947 and which by such signature has
provisionally accepted the principles of paragraph 1 of
Article 23 of the Draft Charter submitted. to the United Nations
Conference on Trade and Employment by the Preparatory Com-
mittee, may elect, by written notice to the CONTRACTING
PARTIES before January 1, 1949 , to be governed by the pro-
visions of Annex J of this Agreement, which embodies such
principles,in lieu of the provisions of sub-paragraphs (b)
and (c) of this paragraph. The provisions of sub-paragraphs
(b) and (c) shall not be applicable to contracting parties
Which have so elected to be governed by the provisions of Annex J; and conversely, the provisions of Annex J shall not
be applicable to contracting parties which have not so
elected.
(e) The policies applied in the use of import restrictions
under sub-paragraph (b)and (c) or under Annex J in the post-
war transitional period shall be designed to promote the
maximum development of multilateral trade possible during that
period and to expedite the attainment of a balance -of-payments
position which will no longer require resort to the provisions
of Article XII or to transitional exchange arrangements
(f) A contracting party may deviate from the provisions of
Article XIII, pursuant to sub-paragraphs (b) or (c) of this
paragraph or pursuant to Annex J, only so long as it is avail-
ing itself of the post-war transitional period arrangements
under Article XIV of the particles of Agreement of the Inter-
national Monetary Fund, or of an analogous provision of a
special exchange agreement entered into under paragraph 6
of Article XV.
(g) Not later than March 1, 1950 (three years after the date
on which the International Monetary Fund began operations)
and in each year thereafter, the CONTRATING PARTIES shall
report on any action still being taken by contracting parties
under sub-paragraphs (b) and (c) of this paragraph or under
Annex J. In March 1952, and in each year thereafter, any
contracting party still entitled to take action under the
provisions of sub-paragraph (c) or of Annex J shall consult
the CONTRACTING PARTIES as to any deviations from Article
XIII still in force pursuant to such provisions and as to its
'continued resort to such provisions, After March 1,1952
any action under Annex J going beyond the maintenance in force
of deviations on which such consultation has taken place and
which the CONTRACTING PARTIES have not found unjustifiable,
or their adaptation to changing circumstances, shall be sub-
ject to any limitations of a general character which the
CONTRACTING PARTIES may prescribe in the light of the
contracting party's circumstances.
(h) The CONTRACTING PARTIES may, if they deem such action - 33 -
necessary in exceptional circumstances, make representations
to any contracting party entitled to take action under the
provisions of sub-paragraph (c) that conditions are favourable
for the termination of any particular deviation from the pro-
visions of Article XIII, or for the general abandonment of
deviations, under the provisions of that sub-paragraph.
After March 1, 1952, the CONTRACTING PARTIES may make such
representations, in exceptional circumstances, to. any con-
tracting party entitled to take action under Annex J. The
contracting party shall be given a suitable time to reply to
such representations. if the CONTRACTING PARTIES find that
the contracting party persists in unjustifiable deviation.
from the provisions of Article XIII, the contracting party
shall, within sixty days, limit or terminate such deviations
as the CONTRACTING PARTIES may specify.
2. Whether or not its transitional period arrangements
have terminated pursuant to paragraph 1 (f), a contracting
party which is applying import restrictions under Article
XII may, with the consent of the CONTRACTING PARTIES,
temporarily deviate from the provisions of Article XIII in
respect of a small part of its external trade where the
benefits to the contracting party or contracting parties con-
cerned substantially outweigh any injury which may result to
the trade of other contracting parties.
3. The provisions of Article XIII shall not preclude
restrictions in accordance with the provisions of Article
XII which either
(a) are applied against imports from other countries, but
not as among themselves by a group of territories
having a common quota in the International Monetary
Fund, on condition that such restrictions are in all
other respects consistent with the provisions of
Article XIII , or
(b) assist, in the period until December 31, 1951, by
measures not involving substantial departure from
the provisions of Article XIII, another country whose
economy has been disrupted by war. - 34 -
4. A contracting party applying import restrictions under
Article XII shall not be precluded by Articles XI to XV,
inclusive, of this Agreement from applying measures to direct
its exports in such a manner as to increase its earnings of
currencies which it can use without deviation from the
provisions of Article XIII.
5. A contracting party shall not be precluded by Articles
XI to XV, inclusive, of this Agreement from applying
quantitative restrictions
(a) having equivalent effect to exchange restrictions
authorized under Section 3(b) of Article VII of the
Articles of Agreement of the International Monetary
Fund; or
(b) under the preferential arrangements provided for in
Annex A of this Agreement, pending the outcome of the
negotiations referred to therein.
Article XV
Exchange Arrangements
1. The CONTRACTING PARTIES shall seek co-operation with
the International Monetary Fund to the end that the
CONTRACTING PARTIES and the Fund may pursue a co-ordinated
policy with regard to exchange questions within the juris-
diction of the Fund and questions of quantitative restrictions
and other trade measures within the jurisdiction of the
CONTRACTING PARTIES.
2. In all cases in which the CONTRACTING PARTIES are called
upon to consider or deal with problems concerning monetary
reserves, balances of payments or foreign exchange arrange-
ments, they shall consult fully with the International
Monetary Fund. In such consultations, the CONTRACTING PARTIES
shall accept all findings of statistical and other facts
presented by the Fund relating to foreign exchange, monetary
reserves and balances of payments and shall accept the
determination of the Fund as to whether action by a con-
tracting party in exchange matters is in accordance with the
Articles of Agreement of the International Monetary Fund, or - 35 -
with the terms of a special exchange agreement between that
contracting party and the CONTRACTING PARTIES. The CONTRACT-
ING PARTIES, in reaching their final decision in cases in-
volving the criteria set forth in paragraph 2 (a) of Article
XII, shall accept the determination of the Fund as to what
constitutes a serious decline in the contracting party's
monetary reserves, a very low level of its monetary reserves
or a reasonable rate of increase in its monetary reserves
and as to the financial aspects of other matters covered in
oonsultation in such cases.
3. The CONTRACTING PARTIES shall seek agreement with the
Fund regarding procedures for consultation under paragraph 2
of this Article.
4. Contracting parties shall not, by exchange action,
frustrate the intent of the provisions of this Agreement, nor,
by trade action, the intent of the provisions of the Articles
of Agreement of the International Monetary Fund.
If the CONTRACTING PARTIES consider, at any time, that
exchange restrictions on payments and transfers in connection
with imports are being applied by a contracting party in a
manner inconsistent with the exceptions provided for in this
Agreement for quantitative restrictions, they shall report
thereon to the Fund .
6. Any contracting party which is not a member of the Fund
shall, within a time to be determined by the CONTRACTING
PARTIES after consultation with the Fund, become a member of
the Fund, or, failing that, enter into a special exchange
agreement with the CONTRACTING PARTIES. A contracting party
which ceases to be a member of the Fund shall forthwith enter
into a special exchange agreement with the CONTRACTING PARTIES.
Any special exchange agreement entered into by a contracting
party under this paragraph shall thereupon become part of its
obligations under this Agreement.
7.(a) A special exchange agreement between a contracting
party and the CONTRACTING PARTIES under paragraph 6 of this
Article shall provide to the satisfaction of the CONTRACTING
PARTIES that the objectives of this Agreement will not be - 35 -
frustratedas a result of action in exchange matters by the
contracting party in questions
(b) The terms of any such agreement shall not impose
obligations on the contracting party in exchange matters
generally more restricting than those imposed by the Articles
of agreement of the International Monetary Fund on members
of the Fund.
8. A contracting party which is not a member of the Fund
shall furnish such information within the general scope of
Section 5 of Article VIII of the Articles of Agreement of the
International Monetary Fund as the CONTRACTING PARTIES may re-
quire in order to carry out their functions under this
Agreement.
9. Nothing in this Agreement shall preclude:
(a) the use by a contracting party of exchange controls
or exchange restrictions in accordance with the
Articles of Agreement of the International Monetary
Fund or with that contracting party's special exchange
agreement with the CONTRACTING PARTIES, or
(b) the use by a contracting party of restrictions or
controls on imports or exports, the sole affect of
which, additional to the effects permitted under
Articles XI, XII, XIII and XIV, is to make effective
such exchange controls or exchange restrictions.
Article XVI
Subsidies
If any contracting party grants or maintains any sub-
sidy, including any form of income or price support, which
operates directly or indirectly to increase exports of any
product from, or to reduce imports of any product into, its
territory, it shall notify the CONTRACTING PARTIES in writing
of the extent and nature of the subsidization, of the es-
timated effect of the subsidization on the quantity of the
affected product or products imported into or exported from
its territory and of the circumstances making the subsidization
necessary. In any case in which it is determined that serious prejudice to the interests of any other contracting party is
caused or threatened by any such subsidization, the con
tracting party granting the subsidy shall, upon request,
discuss with the other contracting party or parties concerned,
or with the CONTRACTING PARTIES, the possibility of limiting
the subsidization.
Article XVII
Non-discriminatory Treatment on
the part of State-Trading Enterprises
l.(a) Each contracting party undertakes that if it establishes
or maintains a state enterprise, wherever located, or grants
to any enterprise, formally or in effect, exclusive or special
privileges, such enterprise shall, in its purchases or sales
involving either imports or exports act in a manner consistent
with the general principles of non-discriminatory treatment
prescribed in this Agreement for governmental measures
affecting imports or exports by private traders.
(b) The provisions of sub-paragraph (a) of this paragraph
shall be understood to require that such enterprises shall,
having due regard to the other provisions of this Agreement,
make any such purchases or sales solely in accordance with
commercial considerations, including price, quality, availa-
bility, marketability, transportation and other conditions of
purchase or sale, and shall afford the enterprises of the
other contracting parties adequate opportunity, in accordance
with customary business practice, to compete for participa-
tion in such purchases or sales.
(c) No contracting party shall prevent any enterprise
(whether or not an enterprise described in sub-paragraph (a)
of this paragraph) under its jurisdiction from acting in
accordance with the principles of sub-paragraphs (a) and (b)
of this paragraph.
2. The provisions of paragraph I of this Article shall not
apply to imports of products for immediate or ultimate con-
sumption in governmental use and not otherwise for re-sale or
use in the production of goods for sale. With respect to such - 38 -
imports, each contracting party shall accord to the trade of
the other contracting parties fair and equitable treatment.
Article XVIII
Governmental Assistance to Economic Development
and Reconstruction
1. The contracting parties recognize that special govern-
mental assistance may be required to promote the establishment,
development or reconstruction of particular industries or
branches of agriculture, and that in appropriate circumstances
the grant of such assistance in the form of protective
measures is justified. At the same time they recognize that
an unwise use of such measures would impose undue burdens on
their own economies and unwarranted restrictions on inter-
national trade, and might increase unnecessarily the diffi-
culties of adjustment for the economies of other countries.
2. The CONTRACTING PARTIES and the contracting parties
concerned shall preserve the utmost secrecy in respect of
matters arising under this Article.
3. If a contracting party, in the interest of its
economic development or reconstruction, or for the purpose of
increasing a most-favoured-nation rate of duty in connection
with the establishment of a new preferential agreement in
accordance with the provisions of paragraph 3 of Article I,
considers it desirable to adopt any non-discriminatory
measure affecting imports which would conflict with an obli-
gation which the contracting party has assumed under Article
II of this Agreement, but which would not conflict with
other provisions of this Agreement, such contracting party
(a) shall enter into direct negotiations with all the
other contracting parties. The appropriate Schedules
to this Agreement shall be amended in accordance with
any agreement resulting from such negotiations; or
(b) shall initially or may, in the event of failure to
reach agreement under sub-paragraph (a), apply to 39
the CONTRACTING PARTIES. The CONTRACTING PAPTIES shall
determine the contracting party or parties materially
affected by the proposed measures and shall sponsor
negotiations between such contracting party or parties
and the applicant contracting party with a view to
obtaining expeditious and substantial agreement. The
CONTRACTING PARTIES shall establish and communicate
to the contracting parties concerned a time schedule
for such negotiations, following as far as practicable
any time schedule which may have been proposed by the
applicant contracting party. The contracting party
shall commence and proceed continuously with such
negotiations in accordance with the time schedule es-
tablished by the CONTRACTING PARTIES. At the request
of a contracting party, the CONTRACTING PARTIES may,
where they concur in principle with the proposed
measure, assist in the negotiations Upon substantial
agreement being reached, the applicant contracting party
may be released by the CONTRACTING PARTIES from the
obligation referred to in this paragraph, subject to
such limitations as may have been agreed upon in the
negotiations between the contracting parties concerned.
4.(a) If as a result of action initiated under paragraph 3
there should be an increase in imports of any product con-
cerned including products which can be directly substituted
therefor, which if continued would be so great as to jeopardize
the establishment, development or reconstruction of the in-
dustry or branch of agriculture concerned, and if no preventa-
tive measures consistent with the provisions of this Agreement
can be found which seem likely to prove effective, the appli-
cant contracting party may, after informing, and when
practicable consulting with, the CONTRACTING PARTIES, adopt
such other measures as the situation may require, provided
that such measures do not restrict imports more than necessary
to offset the increase in imports referred to in this sub-
paragraph; except in unusual circumstances, such measures
shall not reduce imports below the level obtaining in the most - 40 -
recent representative period preceding the date on which
the contracting party initiated action under paragraph 3.
(b) The CONTRACTING PARTIES shall determine, as soon as
practicable, whether any such measure should be continued,
discontinued or modified. It shall in any case be terminated
as soon as the CONTRACTING PARTIES determine that the nego-
tiations are completed or discontinued.
(c) It is recognized that the relationships between con-
tracting parties under Article II of this Agreement involve
reciprocal advantages, and therefore any contracting party
whose trade is materially affected by the action may suspend
the application to the trade of the applicant contracting
party of substantially equivalent obligations or concessions
under this Agreement provided that the contracting party con-
cerned has consulted the CONTRACTING PARTIES before taking
such action and the CONTRACTING PARTIES do not disapproves
- B -
5. In the case of any non-discriminatory measure affecting
imports which would apply to any product in respect of which
the contracting party has assumed an obligation under Article
II of this Agreement and which would conflict with any other
provision of this Agreement, the provisions of sub-paragraph
(b) of paragraph 3 shall apply; Provided that before granting
a release the CONTRACTING PARTIES shall afford adequate
opportunity for all contracting parties which they determine
to be materially affected to express their views. The pro-
visions of paragraph 4 shall also be applicable in this case.
- C - C ,~~~~~u30,1
6* If a contracting party in the interest of its economic
development ot reconstruction considers it desirable to
adopt any nondisorimnitory measure affecting imports which
would conflict with the provisions of this Agreement other
than Article II but which would not apply to any product
in respect of which the contracting party has assumed an
obligation under Article II such contracting party shall
notify the CONTRACTING PARTIES and shall transmit to the - 41 -
CONTRACTING PARTIES a written statement of the considerations
in support of the adoption, for a specified period, of the
proposed measure.
7.(a) On application by such contracting party the CONTRACTING
PARTIES shall concur in the proposed measure and grant the
necessary release for a specified period if, having particular
regard to the applicant contracting party's need for economic
development or reconstruction, it is established that the
measure
(i) is designed to protect a particular industry
established between January 1, 1939 and March
24, 1948, which was protected during that
period of its development by abnormal conditions
arising out of the war; or -
(ii)is designed to promote the establishment or
development of a particular industry for the
processing of an indigenous primary commodity,
when the external sales of such commodity have
been materially reduced as a result of new or
increased restrictions imposed abroad; or
(iii) is nin ecessary view of the possibilities and
resources of the applicant contracting party to
promote the establishment or development of a
particular industry for the processing of an
indigenous primary commodity, or for th-e process
ing of a by-product of such industry, which would
otherwise be wasted, in order to achieve a fuller
and more economic use of the apolicant czntract-
ing party's natural resources and manpower and,
in the long run, to raise the standard of living
within the territory of the applicant contracting
party, and is unlikely to have a harmful effect,
in the long run, on international trade; or
(iv) is unlikely to be more restriitive-of Inter.
national trade than any other practicable and
reasonable measure permitted under t-is Agree.
mont, which could be imposed without undue difficulty, and is the one most suitable for the
purpose having regard to the economics of the
industry or branch of agriculture concerned and
to the applicant contracting party's need for
economic development or reconstruction.
The foregoing provisions of this sub-paragraph are subject to
the following conditions:
(1) any proposal by the applicant contracting party to
apply any such measure, with or without modification,
after the end of the initial period, shall not be
subject to the provisions of this paragraph; and
(2) the CONTRACTING PARTIES shall not concur in any
measure under the provisions of (i), (ii) or (iii)
above which is likely to cause serious prejudice to
exports of a primary commodity on which the economy
of the territory of another contracting party is
largely dependent.
(b) The applicant contracting.party shall apply any
measure permitted under sub-paragraph (a) in such a way as
to avoid unnecessary damage to the commercial or economic
interests of any other contracting party.
8. If the proposed measure does not fall within the
provisions of paragraph 7, the contracting party
(a) may enter into direct consultations with the
contracting party or parties which, in its judg-
ment, would be materially affected by the measure.
At the same time, the contracting party shall in-
form the CONTRACTING PARTIES of such consultations
in order to afford them an opportunity to determine
whether all materially affected contracting parties
are included within the consultations. Upon
complete or substantial agreement being reached,
the contracting party interested in taking the
measure shall apply to the CONTRACTING PARTIES.
The CONTRACTING PARTIES shall promptly examine
the application to ascertain whether the interests
of all the materially affected contracting parties - 43 -
have been duly taken into account. If the
CONTRACTING PARTIES reach this conclusion, with or
without further consultations between the contracting
parties concerned, they shall release the applicant
contracting party from its obligations under the
relevant provision of this Agreement, subject to such
limitations as the CONTRACTING PARTIES may impose, or
(b) may initially, or in the event of failure to reach
complete or substantial agreement under sub-paragraph
(a), apply to the CONTRACTING PARTIES. The
CONTRACTING PARTIES shall promptly transmit the
statement submitted under paragraph 6 to the con-
tracting party or parties which are determined by
the CONTRACTING PARTIES to be materially affected by
the proposed measure. Such contracting party or
parties shall, within the time limits prescribed by
.the CONTRACTING PARTIES, inform them whether, in
the light of the anticipated effects of the proposed
measure on the economy of the territory of such con-
tracting party or parties, there is any objection to
the proposed measure. The CONTRACTING PARTIES shall,
(i) if there is no objection to the proposed
measure on the part of the affected contract-
ing party or parties, immediately release the
applicant contracting party from its obliga-
tions under the relevant provision of this
Agreement; or
(ii) if there is objections promptly examine the
proposed measure, having regard to the pro-
visions of this Agreement, to the considera-
tions presented by the applicant contracting
party and its need for economic development or
reconstruction to the views of the contracting
party or parties determined to be materially
affected and to the effect which the proposed
measure, with or without modifications is likely
to have, immediately and in the long run, - 44 -
on international trade, and in the long run,
on the standard of living within the territory of
the applicant contracting party, If, as a result
of such examination, the CONTRACTING PARTIES
concur in the proposed measure, with or without
modification, they shall release the applicant
contracting party from its obligations under
the relevant provision of this Agreement,
subject to such limitations as they may imposes
9. If, in anticipation of the concurrence of the
CONTRACTING PARTIES in the adoption of a measure referred to
in paragraph 6, there should be an increase or threatened
increase in the imports of any product concerned, including
products which can be directly substituted therefor, so
substantial as to jeopardize the establishment,development
or reconstruction of the industry or branch of agriculture
concerned, and if no preventive measures consistent with
this Agreement can be found which seem likely to prove
effective, the applicant contracting party may,after in-
forming, and when practicable consulting with, the CON-
TRACTING PARTIES, adopt such other measures as the situation
may require, pending a decision by the CONTRACTING PARTIES
on thb contracting party's application; Provided that such
measures do not reduce imports below the level obtaining in
the most recent representative period preceding. the date on
which notification was given under paragraph 6.
10. The CONTRACTING PARTIES shall, at the earliest
opportunity but ordinarily within fifteen days after receipt
of in application under the provisions of paragraph 7 or
sub-paragraphs (a) or (b) of paragraph 8, advise the
applicant contracting party of the date by which it will be
notified whether or not it is released from the relevant
obligations This shall be the earliest practicable date
and not later than ninety days after receipt of such
application; provided that, if unforeseen difficulties arise
before the date set, the period may be extended after con-
sultation with the applicant contracting party. If the - 45 -
applicant contracting party is not so notified by the date
set, it may, after informing the CONTRACTING PARTIES, in-
stitute the proposed measure.
11. Any contracting party may maintain any non-discrimin-
atory protective measure affecting imports in force on
September 1, 1947 which has been imposed for the establishment,
development or reconstruction of a particular industry or
branch of agriculture and which is not otherwise permitted
by this Agreement; Provided that notification has been given
to the other contracting parties not later, than October 10,
1947 of such measure and of each product on which it is to
be maintained and of its nature and purposes.
12. Any contracting party maintaining any such measure
shall within sixty days of becoming a contracting party
submit to the CONTRACTING PARTIES a statement of the con-
siderations in support of the maintenance of the measure
and the period for which it wishes to maintain it. The
CONTRACTING PARTIES shall, as soon as possible, but in any
case within twelve months from the date on which such con-
tracting party becomes a contracting party, examine and give
decision concerning the measure as if it had been sub-
mitted to the CONTRACTING PARTIES for their concurrence under
paragraphs 1 to 10 inclusive of this Article.
13. The provisions of paragraphs II and 12 of this Article
shall not apply to any measure relating to a product in
respect of which the contracting party has assumed an obliga-
tion under Article II of this Agreement.
14. In cases where the CONTRACTING PARTIES decide that a
measure should be modified or withdrawn by a specified
date they shall have regard to the possible need of a
contracting party for a period of time in which to make
such modification or withdrawal. - 46 -
Article XIX
Emergency Action or Imports
Particular Products
l.(a) If, as a result of unforeseen developments and of the
effect of the obligations incurred by a contracting party
under this Agreement, including tariff concessions, any
product is being imported into the territory of that con-
tracting party in such increased quantities and under such
conditions as to cause or threaten serious injury to
domestic producers in that territory of like or directly com-
petitive products, the contracting party shall be free, in
respect of such product, and to the extent and for such time
as may be necessary to prevent or remedy such injury, to
suspend the obligation in whole or in part or to withdraw
or modify the concession.
(b) If any product, which is the subject of a concession
with respect to a preference; is being imported into the
territory of a contracting party in the circumstances set
forth in sub-paragraph (a) of this paragraph, so as to cause
or threaten serious injury to domestic producers of like or
directly competitive products in the territory of a con-
tracting party which receives or received such preference,
the importing contracting party shall be free, if that other
contracting party so requests, to suspend the relevant obli-
gation in whole or in part or to withdraw or modify the con-
cession in respect of the product, to the extent and for such
time as may be necessary to prevent or remedy such injury.
2. Before any contracting party shall take action pursuant
to the provisions of paragraph 1 of this Article, it shall
give notice in writing to the CONTRACTING PARTIES as far in
advance as may be practicable and shall afford the
CONTRACTING PARTIES and those contracting parties having a
substantial interest as exporters of the product concerned
an opportunity to consult with it in respect of the proposed
actions When such notice is given in relation to a conces-
sion with respect to a preference, the notice shall name the
contracting party which has requested the action. In critical circumstances, where delay would cause damage which it
would be difficult to repair, action under paragraph I of
this Article may be taken provisionally without prior con-
sultation, on the condition that consultation shall be
effected immediately after taking such action.
3.(a) If agreement among the interested contracting parties
with respect to the action is not reached, the contracting
party which proposes to take or continue the action shall,
nevertheless, be free to do so and if such action is taken
or continued, the affected contracting parties shall then
be free, not later than ninety days after such action is
taken, to suspend,upon the expiration of thirty days from
the day on which written notice of such suspension is re-
ceived by the CONTRACTING PARTIES the application to the
trade of the contracting party taking such action, or, in
the case envisaged in paragraph I (b) of this Article to
the trade of the contracting party requesting such action,
of suchsubstantially equivalent obligations or concessions
under this Agreement the suspension of which the
CONTRACTING PARTIES do not disapprove
(b) Notwithstanding the provisions of sub-paragraph (a)
of this paragraph, where action is taken under paragraph 2
of this Article without prior consultation and causes or
threatens serious injury in the territory of a contracting
party to the domestic producers of products affected by the
action, that contracting party shall where delay would
cause damage difficult to repair, be free to suspend,
upon the taking of the action and throughout the period of
consultation, such obligations or concessions as may be
necessary to prevent or remedy the injury. Article XX
General Exceptions
Subject to the requirement that such measures are not
applied in a manner which would constitute a means of ar-
bitrary or unjustifiable discrimination between countries
where the same conditions prevail, or a disguised restric-
tion on international trades nothing in this Agreement shall
be construed to prevent the adoption or enforcement by any
contracting party of measures:
I.(a) necessary to protect public morals;
(b) necessary to protect human animal or plant life
or health;
(c) relating to the importation or exportation of gold
or silver;
(d) necessary to secure compliance with laws or regula-
tions which are not inconsistent with the provisions
of this Agreement, including those relating to
customs enforcement the enforcement of monopolies
operated under paragraph 4 of Article II and Article
XVII, the protection of patents, trade marks and
copyrights, and the prevention of deceptive practices;
(e) relating to the products of prison labour;
(f) imposed for the protection of national treasures of
artistic, historic or archaeological value;
(g) relating to the conservation of exhaustible natural
resources if such measures are made effective in
conjunction with restrictions on domestic production
or consumption;
(h) undertaken in pursuance of obligations under inter.
governmental commodity agreements, conforming to the
principles approved by the Economic and Social Council
of the United Nations in its Resolution of March 28,
1947, establishing an Interim Co-ordinating Committee
for International Commodity Arrangements; or
(i) involving restrictions on exports of domestic materials
necessary to assure essential quantities of such
materials to a domestic processing industry during - 49 -
periods when the domestic price of such materials is
held below the world price as part of a governmental
stabilization plan; Provided that such restrictions
shall not operate to increase the exports of or the
protection afforded to such domestic industry, and
shall not depart from the provisions of this Agreement
relating to non-discrimination;
II.(a) essential to the acquisition or distribution of
products in general or local short supply; Provided
that any such measures shall be consistent with any
multilateral arrangements directed to an equitable
international distribution of such products or, in
the absence of such arrangements, with the principle
that all contracting parties are entitled to an equit-
able share of the international supply of such
products;
(b) essential to the control of prices by a contracting
party undergoing shortages subsequent to the war; or
(c) essential to the orderly liquidation of temporary sur.
pluses of stocks owned or controlled by the government
of any contracting party or of industries developed
.in the territory of any contracting party owing to
the exigencies of the war which it would be uneconomic
to maintain in normal conditions; Provided that such
measures shall not be instituted by any contracting
party except after consultation with other interested
contracting parties with a view to appropriate inter-
national action.
Measures instituted or maintained under Part II of
this Article which are inconsistent with the other provisions
of this Agreement shall be removed as soon as the conditions
giving rise to them have ceased, and in any event not later
than January 1, 1951; Provided that this period may, with
the concurrence of the CONTRACTING PARTIES, be extended in
respect of the application of any particular measure to any
particular product by any particular contracting party for
such further periods as the CONTRACTING PARTIES may specify. -50-
Article XXI
Security Exceptions
Nothing in this Agreement shall be construed
(a) to require any contracting party to furnish any in-
formation the disclosure of which it considers con-
trary to its essential security interests; or
(b) to prevent any contracting party from taking any action
which it considers necessary for the protection of its
essential security interests
(i) relating to fissionable materials or the
materials from which they are derived;
(ii) relating to the traffic in arms, ammunition
and implements of war and to such traffic in
other goods and materials as is carried on
directly or indirectly for the purpose of
supplying a military establishment;
(iii) taken in time of war or other emergency in
international relations; or
(c) to prevent any contracting party from taking any action
in pursuance of its obligations under the United
Nations Charter for the maintenance of international
peace and security.
Article XXII
Consultation
Each contracting party shall accord sympathetic con-
sideration to, and shall afford adequate opportunity for con-
sultation regarding, such representations as may be made by
any other contracting party with respect to the operation of
customs regulations and formalities, anti-dumping and counter-
vailing duties, quantitative and exchange regulations, sub-
sidies, state-trading operations, sanitary laws and regulations,
for the protection of human, animal or plant life or health,
and generally all matters affecting the operation of this
Agreement . - 51-
Airtic le XXIII
Nullification or Impairment
1. If any contracting party should consider that any
benefit accruing to it directly or indirectly under this
Agreement is being nullified or impaired or that the attain-
ment of any objective of the Agreement is being impeded as
the result of (a) the failure of another contracting party
to carry out its obligations under this Agreement, or (b) the
application by another contracting party of any measure,
whether or not it conflicts with the provisions of this Agree-
ment, or (c) the exitence of any other situations, the con-
tracting party may, with a view to the satisfactory adjust-
ment of the matter, make written representations or proposals
to the other contracting party or parties which it considers
to be concerned. Any contracting party thus approached
shall give sympathetic consideration to the representations
or proposals made to it.
2. If no satisfactory adjustment is effected between the
contracting parties concerned within a reasonable time,
or if the difficulty is of the type described in paragraph
l(c) of this Article; the matter may be referred to the
CONTRACTING PARTIES. The CONTRACTTNG PARTIES shall promptly
investigate any matter so referred to them and shall make
appropriate recommendations to the contracting parties
which they consider to be concerned, or give a ruling on
the matter, as appropriate. The CONTRACTING PARTIES may
consult with contracting parties, with the Economic and
Social Council of the United Nations and with any
appropriate inter-governmental organization in cases where
they consider such consultation necessary. If the CON-
TRACTING PARTIES consider that the circumstances are
serious enough to justify such action, they may authorize
a contracting party or parties to suspend the application
to any other contracting party or parties of such obliga-
tions or concessions under this Agreement as they determine
to be appropriate in the circumstances. If the application -52-
to any contracting party of any obligation or concession
is in fact suspended, that contracting party shall then
be free, not later than sixty days after such action is
taken, to advise the Secretary-General of the United
Nations in writing of its intention to withdraw from this
Agreement and such withdrawal shall take effect upon the
expiration of sixty days from the day on which written
notice of such withdrawal is received by him. PART III
Article XXIV
Territorial Application - Frontier Traffic-
Customs Unions
1. The provisions of this Agreement shall apply to the
metropolitan customs territories of the contracting parties
and to any other customs territories in respect of which
this Agreement has been accepted under Article XXVI or is
being applied under Article XXXIII or pursuant to the
Protocol of Provisional Application. Each such customs
territory shall, exclusively for the purposes of the
territorial application of this Agreement, be treated as
though it were a contracting party; Provided that the
provisions of this paragraph shall not be construed to create
any rights or obligations as between two or more customs
territories in respect of which this Agreement has been
accepted under Article XXVI or is being applied under
Article XXXII or pursuant to the Protocol of Provisional
Application by a single contracting party.
2. For the purposes of this Agreement a customs territory
shall be understood to mean any territory with respect to
which separate tariffs or other regulations of commerce are
maintained for a substantial part of the trade of such
territory with other territories.
3. The provisions of this Agreement shall not be construed
to prevent:
(a) advantages accorded by any contracting party to
adjacent countries in order to facilitate frontier
traffic;
(b) advantages accorded to the trade with the Free
Territory of Trieste by countries contiguous to
that territory, provided that such advantages are
not in conflict with the Treaties of Peace arising
out of the Scond World War.
4. The contracting parties recognize the desirability
of increasing freedom of trade by the development, through
voluntary agreements, of closer integration between the
economies of the countries parties to such agreements. They also recognize that the purpose of a customs union or
of a free-trade area should be to facilitate trade between
the parties and not to raise barriers to the trade of other
contracting parties with such parties.
5. Accordingly, the provisions of this Agreement shall
not prevent, as between the territories of contracting parties,
the formation of a customs union or of a free-trade area or
the adoption of an interim agreement necessary for the
formation of a customs union or of a free-trade area;
Provided that:
(a) with respect to a customs union, or an interim
agreement leading to the formation of a customs
union, the duties and other regulations of commerce
imposed at the institution of any such union or
interim agreement in respect of trade with contracting
parties not parties to such union or agreement shall
not on the whole be higher or more restrictive than
the general incidence of the duties and regulations
of commerce applicable in the constituent territories
prior to the formation of such union or the adoption
of such interim agreement, as the case may be;
(b) with respect to a free-trade area, or an interim
agreement leading to the formation of a free-trade
area, the duties and other regulations of commerce
maintained in each of the constituent territories and
applicable at the formation of such free-trade area
or the adoption of such interim agreement to the trade
of contracting parties not included: in such area or
not parties to such agreement shall not be higher or
more restrictive than the corresponding duties and
other regulations of commerce existing in the same
constituent territories prior to the formation of
the free-trade area, or interim agreement, as the
case may be; and
(c) any interim agreement referred to in sub-paragraphs
(a) and (b) shall include a plan and schedule for the
formation of such a customs union or of such a free-
trade area within a reasonable length of time. - 55 -
6. If in fulfilling the requirements of sub-paragraph 5(a),
a contracting party proposes to increase any rate of duty
inconsistently with the provisions of Article II, the
procedure set forth in Article XXVIII shall apply. In
providing for compensatory adjustment,due account shall
be taken of the compensation already afforded by the
reductions brought about in the corresponding duty of the
other constituents of the union.
7.(a) Any contracting party deciding to enter into a customs
union or free-trade area, or an interim agreement leading to
the formation of such a union or area, shall promptly notify
the CONTRACTING PARTIES and shall make available to them
such information regarding the proposed union or area as will
enable them to make such reports and recommondations to
contracting parties as they may deem appropriate.
(b) If, after having studied the plan and schedule provided
for in an interim agreement referred to in paragraph 5 in
consultation with the parties to that agreement and taking
due account of the information made available in accordance
with the provisions of sub-paragraph (a), the CONTRACTING
PARTIES find that such agreement is not likely to result in
the formation of a customs union or of a free-trade area
within the period contemplated by the parties to the
agreement or that such period is not a reasonable one, the
CONTRACTING PARTIES shall make recommendations to the
parties to the agreement. The parties shall not maintain
or put into force, as the case may be, such agreement if
they are not prepared to modify it in accordance with
these recommendations..
(c) Any substantial change in the plan or schedule
referred to in paragraph 5(c) shall be communicated to the
CONTRACTING PARTIES, which may request the contracting
parties concerned to consult with them if the change seems
likely to jeopardize or delay unduly the formation of the
customs union or of the free-trade area. 8 . For the purposes of this Agreement:
(a) A customs union shall be understood to mean the
substitution of a single customs territory for two
or more customs territories, so that
(i) duties and other restrictive regulations
of commerce (except, where necessary, those
permitted under Articles XI, XII, XIII, XIV,
XV and XX) are eliminated with respect to
substantially all the trade between the
constituent territories of the union or at
least with respect to substantially all the
trade in products originating in such
territories, and,
(ii) subject to the provisions of paragraph 9,
substantially the same duties and other
regulations of commerce are applied by each
of the members of the union to the trade of
territories not included in the union;
(b) A free-trade area shall be understood to mean a group
of two or more customs territories in which the duties
and other restrictive regulations of commerce (except,
where necessary, those permitted under Articles XI,
XII, XIII, XIV, XV and XX) are eliminated on
substantially all the trade between the constituent
territories in products originating in such
territories.
9. The preferences referred to in paragraph 2 of Article I
shall not be affected by the information of a customs union or
of a free-trade area but may be eliminated or adjusted by
means of negotiations with contracting parties affected.
This procedure of negotiations with affected contracting
parties shall, in particular, apply to the elimination of
preferences required to conform with the provisions of
paragraph 8(a) (i) and paragraph 8(b).
10. The CONTRACTING PARTIES may by a two-thirds majority
approve proposals which do not fully comply with the
requirements of paragraphs 5 to 9 inclusive, provided that
such proposals lead to the formation of a customs union or - 57 -
a free-trade area in the sense of this Article.
11. Taking into account the exceptional circumstances
arising out of the establishment of India and Pakistan as
independent states and recognizing the fact that they have
long constituted an economic unit, the contracting parties
agree that the provisions of this Agreement shall not prevent
the two countries from entering into special arrangements
with respect to the trade between them, pending the establish-
ment of their mutual trade relations on a definitive basis.
12. Each contracting party shall take such reasonable
measures as may be available to it to ensure observance of
the provisions of this Agreement by the regional and local
governments and authorities within its territory.
Article XXV
Joint Action by the Contracting Parties
1. Representatives of the contracting parties shall meet
from time to time for the purpose of giving effect to those
provisions of this Agreement which involve joint action and,
generally, with a view to facilitating the operation and
furthering the objectives of this Agreement. Wherever
reference is made in this Agreement to the contracting parties
acting jointly they are designated as the CONTRACTING PARTIES.
2. The Secretary-General of the United Nations is
requested to convene the first meeting of the CONTRACTING
PARTIES which shall take place not later than March 1, 1948.
3. Each contracting party shall be entitled to have one
vote at all meetings of the CONTRACTING PARTIES.
4. Except as otherwise provided for in this Agreement,
decision of the CONTRACTING PARTIES shall be taken by a
majority of the votes cast.
5.(a) In exceptional circumstances not elsewhere provided for
in this Agreement, the CONTRACTING PARTIES may waive an
obligation imposed upon a contracting party by this
Agreement; Provided that any such decision shall be
approved by a two-thirds majority of the votes cast and
that such majority shall comprise more than half of the
contracting parties. The CONTRACTING PARTIES may also - 58 -
by such a vote
(i) define certain categories of exceptional
circumstances to which other voting requirements
shall apply for the waiver of obligations, and
(ii) prescribe such criteria as may be necessary for
the application of this sub-paragraph.
(b) If any contracting party has failed without sufficient
justification to carry out with another contracting party
negotiations actions of the kind described in paragraph 1 of
Article 17 of the Havana Charter, the CONTRACTING PARTIES
may, upon complaint and after investigation, authorize the
complaining contracting party to withhold from the other the
concessions incorporated in the relevant Schedule to this
Agreement. In any judgment as to whether a contracting
party has so failed, the CONTRACTING PARTIES shall have
regard to all relevant circumstances, including the
developmental, reconstruction and other needs and the general
fiscal structures of the contracting parties concerned and
to the provisions of the Havana Charter as a whole. If in
fact the concessions referred to are withheld, so as to
result in the application to the trade of the other
contracting party of tariffs higher than would otherwise
have been applicable, such other contracting party shall then
be free, within sixty days after such action becomes effective,
to give written notice of withdrawal from the Agreement.
The withdrawal shall take effect unon the expiration of
sixty days from the day on which such notice is received
by the CONTRACTING PARTIES.
(c) The provisions of sub-paragraph (b) shall not apply
as between any two contracting parties the Schedules of
which contain concessions initially negotiated between such
contracting parties.
(d) The provisions of sub-paragraphs (b) and (c) shall
not apply until January 1, 1949. -59-
Article XXVI
Aceptance, Entry into Force and Registration
1. The present Agreement shall bear the date of the
signature of the Final Act adopted at the conclusion of
the Second Session of the Preparatory Committee of the
United Nations Conference on Trade and Employment and
shall be open to acceptance by any government signatory
to the Final Act.
2. This Agreement, done in a single English original
and in a single French original, both texts authentic, shall
be deposited with the Secretary-General of the United Nations,
who shall furnish certified copies thereof to all interested
governments.
3. Each government accepting this Agreement shall deposit
an instrument of acceptance with the Secretary-General of
the United Nations, who will inform all interested governments
of the date of deposit of each instrument of acceptance and
of the day on which this Agreement enters into force under
paragraph 5 of this Article.
4. Each government accepting this Agreement does so in
respect of its metropolitan territory and of the other
territories for which it has international responsibility;
Provided that it may at the time of acceptance declare that
any separate customs territory for which it has international
responsibility possesses full autonomy in the conduct of its
external commercial relations and of the other matters
provided for in this Agreement, and that its acceptance does
not relate to such territory; and Provided further that
if any of the customs territories on behalf of which a
contracting party has accepted this Agreement possesses or
acquires full autonomy in the conduct of its external
commercial relations and of the other matters provided for
in this Agreement, such territory shall, upon sponsorship
through a declaration by the responsible contracting party
establishing the above-mentioned fact, be deemed to be
a contracting party.
5. This Agreement shall enter into force, as among the governments which have accepted it, on the thirtieth day
following the day on which instruments of acceptance have
been deposited with the Secretary-General of the United
Nations on behalf of governments signatory to the Final Act
the territories of which account for eighty-five per centum
of the total external trade of the territories of the
signatories to the Final Act adopted at the conclusion of
the Second Session of the Preparatory Committee of the
United Nations Conference on Trade andEmployment. Such
percentage shall be determined in accordance with the table
set forth in Annex H. The instrument of acceptance of
each other government signatory to the Final Act shall take
effect on the thirtieth day following the day on which such
instrument is deposited.
6. The United Nations is authorized to effect registration
of this Agreement as soon as it enters into force.
Article XXVII
Withholding or Withdrawal of Concessions
Any contracting party shall at any time be free to
withhold or to withdraw in whole or in part any concession,
provided for in the appropriate Schedule annexed to this
Agreement, in respect of which such contracting party
determines that it was initially negotiated with a government
which has not become, or has ceased to be, a contracting
party. The contracting party taking such action shall
give notice to all other contracting parties and, upon
request, consult with the contracting parties which have a
substantial interest in the product concerned
Article XXVIII
Modification of Schedules
1. On or after January 1, 1951, any contracting party may,
by negotiation and agreement with any other contracting party
with which such treatment was initially negotiated, and
subject to consultation with such other contracting parties
as the CONTRACTING PARTIES determine to have a substantial
interest in such treatment, modify, or cease to apply, the
treatment which it has agreed to accord under Article II to
- 50 - any product described in the appropriate Schedule annexed
to this Agreement. In such negotiations and agreement,
which may include provision for compensatory adjustment
with respect to other products, the contracting parties
concerned shall endeavour to maintain a general level of
reciprocal and mutually advantageous concessions not less
favourable to trade than that provided for in the present
Agreement.
2. (a) If agreement between the contracting parties primarily
concerned cannot be reached, the contracting party which
proposes to modify or cease to apply such treatment shall,
nevertheless, be free to do so, and if such action is taken
the contracting party with which such treatment was
initially negotiated, and the other contracting parties
determined under paragraph 1 of this Article to have a
substantial interest, shall then be free, not later than
six months after such action is taken, to withdraw, upon
the expiration of thirty days from the day on which written
notice of such withdrawal is received by the CONTRACTING
PARTIES, substantially equivalent concessions initially
negotiated with the contracting party taking such action.
(b) If agreement between the contracting parties primarily
concerned is reached but any other contracting party
determined under paragraph l of this Article to have a
substantial interest is not satisfied, such other contracting
party shall be free, not later than six months after action
under such agreement is taken, to withdraw, upon the
expiration of thirty days from the day on which written
notice of such withdrawal is received by the CONTRACTING
PARTIES, substantially equivalent concessions initially
negotiated with a contracting party taking action under
such agreement.
Article XXIX
The Relation of this Agreement to
the Havana Charter
1. The contracting parties undertake to observe to the
fullest extent of their executive authority the general
principles of Chapters I to VI inclusive and of Chapter IX - 62 -
of the Havana Charter pending their acceptance of it in
accordance with their constitutional procedures.
2. Part II of this Agreement shall be suspended on the day
on which the Havana Charter enters into force.
3. If by September 30, 1949, the Havana Charter has not
entered into force, the contracting parties shall meet
before December 31, 1949, to agree whether this Agreement
shall be amended, supplemented or maintained.
4. If at any time the Havana Charter should cease to be
in force, the contracting parties shall meet as soon as
practicable thereafter to agree whether this Agreement shall
be supplemented, amended or maintained. Pending such
agreement, Part II of this Agreement shall again enter into
force; Provided that the provisions of Part II other than
Article XXIII shall be replaced, mutatis mutandis, in the
form in which they then appeared in the Havana Charter; and
Provided further that no contracting party shall be bound
by any provision which did not bind it at the time when the
Havana Charter ceased to be in force.
5. If any contracting party has not accepted the Havana
Charter by the date upon which it enters into force, the
contracting parties shall confer to agree whether, and if
so in what way, this Agreement insofar as it affects relations
between such contracting party and other contracting parties,
shall be supplemented or amended. Pending such agreement the
provisions of Part II of this Agreement shall, notwithstanding
the provisions of paragraph 2 of this Article, continue to
apply as between such contracting party and other
contracting parties.
6. Contracting parties which are Members of the
International Trade Organization shall not invoke the
provisions of this Agreement so as to prevent the operation
of any provision of the Havana Charter. The application of
the principle underlying this paragraph to any contracting
party which is not a Member of the International Trade
Organization shall be the subject of an agreement pursuant
to paragraph 5 of this Article. - 63 -
Article XXX
Amendments
1. Except where provision for modification is made
elsewhere in this Agreement, amendments to the provisions
of Part I of this Agreement or to the provisions of
Article XXIX or of this Article shall become effective upon
acceptance by all the contracting parties, and other amendments
to this Agreement shall become effective, in respect of
those contracting parties which accept them, upon acceptance
by two-thirds of the contracting parties and thereafter for
each other contracting party upon acceptance by it.
2. Any contracting party accepting an amendment to this
Agreement shall deposit an instrument of acceptance with the
Secretary-General of the United Nations within such period as
the CONTRACTING PARTIES may specify. The CONTRACTING
PARTIES may decide that any amendment made effective under
this Article is of such a nature that any contracting party
which has not accepted it within a period specified by the
CONTRACTING PARTIES shall be free to withdraw from this
Agreement, or to remain a contracting party with the
consent of the CONTRACTING PARTIES.
Article XXXI
Withdrawal
Without prejudice to the provisions of Article XXIII
or of paragraph 2 of Article XXX, any contracting party may,
on or after January 1, 1951, withdraw from this Agreement,
or may separately withdraw on behalf of any of the separate
customs territories for which it has international
responsibility and which at the time possesses full autonomy
in the conduct of its external commercial relations and of
the other matters provided for in this Agreement. The
withdrawal shall take effect on or after January 1, 1951,
upon the expiration of six months from the day on which
written notice of withdrawal is received by the Secretary-
General of the United Nations. Article XXXII
ContractingParties
1. The contracting parties to this Agreement shall be
understood to mean those governments which are applying
the provisions of this Agreement under Articles XXVI or
XXXIII or pursuant to the Protocol of Provisional
Application.
2. At any time after the entry into force of this
Agreement pursuant to paragraph 5 of Article XXVI, those
contracting parties which have accepted this Agreement
pursuant to paragraph 3 of Article XXVI may decide that any
contracting party which has not so accepted it shall cease
to be a contracting party.
Article XXXIII
Accession
A government not party to this Agreement, or a
government acting on behalf of a separate customs territory
possessing full autonomy in the conduct of its external
commercial relations and of the other matters provided for
in this Agreement, may accede to this Agreement, on its
own behalf or on behalf of that territory, on terms to be
agreed between such government and the CONTRACTING PAPTIES.
Decisions of the CONTRACTING PARTIES under this paragraph
shall be taken by a two-thirds majority.
Article XXXIV
Annexes
The annexes to this Agreement are hereby made an
integral part of this Agreement.
Article XXXV
1. Without prejudice to the provisions of paragraph 5(b )
of Article XXV or to the obligations of a contracting party
pursuant to paragraph 1 of Article XXIX, this Agreement,
or alternatively Article II of this Agreement, shall not
apply as between any contracting party and any other - 65 -
contracting party if:
(a) the two contracting parties have not entered into
tariff negotiations with each other, and
(a) either of the contracting parties, at the time
either becomes a contracting party, does not consent
to such application.
2. The CONTRACTING PARTIES may, at any time before the
Havana Charter enters into force, review the operation of
this Article in particular cases at the request of any
contracting party and make appropriate recommendations. -66-
ANNEX A
LIST OF TERRITORIES REFERRED TO IN
PARAGRAPH 2 (a) OF ARTICLE I
United Kingdom of Great Britain and Northern Ireland
Dependent territories of the United Kingdom of Great Britain
and Northern Ireland
Canada
Commonwealth of Australia
Dependent territories of the Commonwealth of Australia
New Zealand
Dependent territories of New Zealand
Union of South Africa including South West Africa
Ireland
India (as on April 10, 1847)
Newfoundland
Southern Rhodesia
Burma
Ceylon
Certain of the territories listed above have two or
more preferential rates in force for certain products. Any
such territory may, by agreement with the other contracting
parties which are principal suppliers of such products at the
most-favoured-nation rate, substitute for such preferential
rates a single preferential rate which shall not on the
whole be less favourable to suppliers at the most-favoured-
nation rate than the preferences in force prior to such
substitution.
The imposition of an equivalent margin of tariff
preference to replace a margin of preference in an internal
tax existing on April 10, 1947, exclusively between two or
more of the territories listed in this Annex or to replace
the preferential quantitative arrangements described in the
following paragraph, shall not be deemed to constitute an
increase in a margin of tariff preference.
The preferential arrangements referred to in
paragraph 5(b) of Artiele XIV are those existing in the
United Kingdom on April 10, 1947, under contractual agreements
with the Governments of Canada, Australia and New Zealand. - 67 -
in respect of chilled and frozen beef and veal, frozen mutton
and lamb, chilled and frozen pork, and bacon. It is the
intention, without prejudice to any action taken under
part I(h) of Article XX, that these arrangements shall be
eliminated or replaced by tariff preferences, and that
negotiations to this end shall take place as soon as
practicable among the countries substantially concerned or
involved.
The film hire tax in force in New Zealand on April 10,
1947, shall, for the purposes of this Agreement, be treated
as a customs duty under Article I. The renters' film quota
in force in New Zealand on April 10, 1947, shall, for the
purposes of this Agreement, be treated as a screen quota
under Article IV.
The Dominions of India and Pakistan have not been
mentioned separately in the above list since they had not
come into existence as such on the base date of April 10, 1947. - 68 -
ANNEX B
LIST OF TERRITORIES OF THE FRENCH UNION
REFERRED TO IN PARAGRAPH 2 (b) OF ARTICLE I
France
French Equatorial Africa (Treaty Basin of the Congo* and
other territories)
French West Africa
Cameroons under French Mandates*
French Somali Coast and Dependencies
French Establishments in Indian*
French Establishments in Oceania
French Establishments in the Condominium of the New Hebrides*
Guadeloupe and Dependencies
French Guiana
Indo-China
Madagascar and Dependencies
Morocco (French zone)*
Martinique
New Caledonia and Dependencies
Reunion
Saint-Pierre and Miquelon
Togo under French Mandate*
Tunisia
*For imports into Metropolitan France and Territories of
the French Union. - 69-
ANNEX C
LIST OF TERRITORIES OF THE CUSTOMS UNION
OF BELGIUM, LUXEMBOURG AND THE NETHERLANDS
REFERRED TO IN PARAGRAPH 2 (b) OF ARTICLE I
The Economic Union of Belgium and Luxembourg
Belgian Congo
Ruanda Urundi
Netherlands
Netherlands Indies
Surinam
Curacao
For imports into the metropolitan territories
constituting the Customs Union. - 70 -
ANNEX D
LIST OF TERRITORIES REFERRED TO IN
PARAGRAPH 2 (b) OF ARTICLE I AS RESPECTS
THE UNITED STATES OF : AMERICA
United States of America (customs territory)
Dependent territories of the United States of America
Republic of the Philippines
The imposition of an equivalent margin of tariff
preference to replace a margin of preference in an internal
tax existing on April 10, 1947, exclusively between two or
more of the territories listed in this Annex shall not be
deemed to constitute an increase in a margin of tariff
preference. - 71 -
ANNEX E
LIST OF TERRITORIES COVERED BY PREFERENTIAL
ARRANGEMENTS BETWEEN CHILE AND NEIGHBOURING
COUNTRIES REFERRED TO IN PARAGRAPH 2 (d) OF ARTICLE I
Preferences in force exclusively between Chile,
on the one hand, and
1. Argentina
2. Bolivia
3. Peru
on the other hand. - 72 -
ANNEX F
LIST OF TERRITORIES COVERED BY PREFERENTIAL
ARRANGEMENTS BETWEEN LEBANON AND SYRIA AND
NEIGHBOURING COUNTRIES REFERRED TO IN
PARAGRAPH 2(d) OF ARTICLE I
Preferences in force exclusively between the
Lebano-Syrian Customs Union, on the one hand, and
1. Palestine
2. Transjordan
on the other hand. - 73 -
ANNEX G
DATES ESTABLISHING MAXIMUM MARGINS OF
PREFERENCE REFERRED TO IN PARAGRAPH 3
OF ARTICLE I
Australia
Canada
France
Lebano-Syrian Customs Union
Union of South Africa
Southern Rhodesia
October 15, 1946
July 1, 1939
January 1, 1939
November 30, 1939
July 1, 1938
May 1, 1941 - 74 -
ANNEX H
PERCENTAGE SHARES OF TOTAL EXTERNAL TRADE
TO BE USED FOR THE PURPOSE OF MAKING THE
DETERMINATION REFERRED TO IN ARTICLE XXVI
(based on the average of 1938 and the
latest twelve months for which figures
are available)
Percentage
Australia 3.2
Belgium-Luxembourg-Netherlands 10.9
Brazil 2.8
Burma 0.7
Canada 7.2
Ceylon 0.6
Chile 0.6
China 2.7
Cuba 0.9
Czechoslovakia 1.4
French Union 9.4
India 3.3*
Pakistan 3.3*
New Zealand 1.2
Norway 1. 5
Southern Rhodesia 0.3
Lebano-Syrian Customs Union 0.1
Union of South Africa 2.3
United Kingdom of Great Britain and
Northern Ireland 25.7
United States of America 25.2
100.0
Note: These percentages have been determined taking into
account the trade of all territories for which countries
mentioned above have international responsibility and which
are not self-governing in matters dealt with in the General
Agreement on Tariffs and Trade.
The allocation of this percentage will be made by agreement
between the governments of India and Pakistan and will be
communicated as soon as possible to the Secretary-General of
the United Nations. - 75 -
ANNEX T
INTERPRETATIVE NOTES
ad Article I
Paragraph 1
The obligations incorporated in paragraph 1 of Article I
by reference to paragraphs 2 and 4 of Article III and those
incorporated in paragraph 2 (b) of Article II by reference to
Article VI shall be considered as falling within Part II for
the purposes of the Protocol of Provisional Application.
The cross references, in the paragraph immediately above
and in paragraph 1 of Article I, to paragraphs 2 and 4 of
Article III shall only apply after Article III has been
modified by the entry into force of the amendment provided for
in the Protocol Modifying Part II and Article XXVI of the
General Agreement on Tariffs and Trade, dated September 14,
1948.
Paragraph 4
The term "margin of preference" means the absolute
difference between the most-favoured-nation rate of duty and
the preferential rate of duty for the like product, and not
the proportionate relation between those rates. As examples:
1) If the most-favoured-nation rate were 36 per cent ad
valorem and the preferential rate were 24 per cent
ad valorem, the margin of preference would be 12 per
cent ad valorem, and not one-third of the most-favoured-
nation rate;
2) If the most-favoured-nation rate were 36 per cent ad
valorem and the preferential rate were expressed as
two-thirds of the most-favoured-nation rate, the margin
of preference would be 12 per cent ad valorem;
3) If the most-favoured-nation rate were 2 francs per
kilogram and the preferential rate were 1.50 francs
per kilogram, the margin of preference would be 0.50
francs per kilogram.
The following kinds of customs action, taken in
accordance with established uniform procedures, would not be
contrary to a general binding of margins of preference: - 75 -
(i) the re-application to an imported product of a
tariff classification or rate of duty, properly
applicable to such product, in cases in which
the application of such classification or rate to
such product was temporarily suspended or inoperative
on April 10, 1947; and
(ii) the classification of a particular product under a
tariff item other than that under which importations
of that product were classified on April 10, 1947,
in cases in which the tariff law clearly contemplates
that such product may be classified under more than
one tariff item.
ad Article II.
The cross reference, in paragraph 2(a) of Article II,
to paragraph 2 of Article III shall only apply after
Article III has been modified by the entry into force of the
amendment provided for in the Protocol Modifying Part II and
Article XXVI of the General Agreement on Tariffs and Trade,
dated September 14, 1948.
Paragraph 2(b)
See the note relating to paragraph 1 of Article I.
Except where otherwise specifically agreed between the
contracting parties which initially negotiated the concession,
the provisions of this paragraph will be applied in the
light of the provisions of Article 31 of the Havana Charter.
ad Article III
Any internal tax or other internal charge, or any law,
regulation or requirement of the kind referred to in
paragraph I which applies to an imported product and to the
like domestic product and is collected or enforced in the
case of the imported product at the time or point of
importation, is nevertheless to be regarded as an internal
tax or other internal charge, or a law, regulation or
requirement of the kind referred to in paragraph 1, and is
accordingly subject to the provisions of Article Ill. - 77 -
Paragraph 1 '
The application of paragraph 1 to internal taxes
imposed by local governments and authorities within the
territory of a contracting party is subject to the provisions
of the final paragraph. of Article XXIV The term
"reasonable measures" in the last-mentioned paragraph would
not require, for example, the repeal of existing national
legislation authorizing local governments to impose internal
taxes whih, although technically inconesistent with thaletter
of Article III are not in fact inconsistent with its spirit,
if such repeal would result in a serious financial hardship
for the local governments or authorities concerned. With
regard to taxation by local governments or authorities which
is inconsistent with both the letter and spirit of Article III,
the term "reasonable measures" would permit a contracting party
to eliminate the inconsistent taxation gradually over a
transition period, if abrupt action would create serious
administrative and financial difficulties.
aat~
A tax conforming to the requirements of the first
sentence of paragraph 2 would be considered to be
inconsistent with the provisions of the second sentence only
in cases where competition was involved between, on the one
hand, the taxed product and on the other hand, a directly
competitive or substitutable product which was not similarly
taxed
P 5aragraph
Regulations consistent with the provfisions o the
first sentence of paragraph 5 shall not be considered to be
con trary tothe provisions of the second sentence in any
case in which all of the products subjhect to te regulations
are produced domestically in substantial qu.antities A
regulation cajnnot be ustified as being consistent with the
provisions of the second sentence on the grounde that th
proportion or amount allocated to each of the products which
are the subject of the regulation consitutes an equitable
relationship between imported and domestic products. - 78 -
ad Article V
Paragraph 5
With regard to transportation charges, the principle
laid down in paragraph 5 refers to like products being
transported on the same route under like conditions.
ad Article VI
Paragraph 1
Hidden dumping by associated houses (that is, the sale
by an importer at a price below that corresponding to the
price invoiced by an exporter with whom the importer is
associated, and also below the price in the exporting country)
constitutes a form of price dumping with respect to which
the margin of dumping may be calculated on the basis of the
price at which the goods are resold by the importer.
Paragraphs 2 and 3
Note 1
As in many other cases in customs administration, a
contracting party may require reasonable security (bond or
cash deposit) for the payment of anti-dumping or countervailing
duty pending final determination of the facts in any case
of suspected dumping or subsidization.
Note2 4
Multiple currency practices can in certain ciumstances
constitute a subsidy to exports which may be met by
countervailing duties under paragraph 3 or can constitute a
form of dumping by means of a partial depreciation of a
countr 2.y's currency which may be met by action under paragraph
By "multiple currency practices" is meant practices by
governments or sanctioned by governments.
ad Article VII
Par 1:' ''a
Consideration was given to the desirability of replacing
th words "at the earliest practicable date"'by a definite
date or, alternatively, by a provisionfor a specified limited
period to be fixed later. It was appreciated that it would
not be possible for all contracting parties to give effect
to these principles by a fixed time, but it was nevertheless - 79 -
understood that a majority of the contracting parties would
give effect to them at the time the Agreement enters into
force.
Paragraph 2
It would be in conformity with Article VII to presume
that "actual value" may be represented by the invoice price,
plus any non-included charges for legitimate costs which
are proper elements of "actual value" and plus any abnormal
discount or other reduction from the ordinary competitive
price.
It would be in conformity with Article VII, paragraph
2(b), for a contracting party to construe the phrase "in the
ordinary course of trade", read in conjunction with "under
fully competitive conditions", as excluding any transaction
wherein the buyer and seller are not independent of each
other and price is not the sole consideration.
The prescribed standard of "fully competitive conditions"
permits contracting parties to exclude from consideration
distributors ' prices which involve special discounts limited
to exclusive agents.
The wording of sub-paragraphs (a) and (b) permits a
contracting party to assess duty uniformly either (1) on
the basis of a particular exporter's prices of the imported
merchandise, or (2) on the basis of the general price level of
like merchandise.
ad Article VIII
While Article VIII does not cover the use of multiple
rates of exchange as such, paragraphs 1 and 4 condemn the
use of exchange taxes or fees as a device for implementing
multiple currency practices; if, however, a contracting party
is using multiple currency exchange fees for balance- of-payments
reasons with the approval of the International Monetary Fund,
the provisions of paragraph 2 fully safeguard its position
since that paragraph merely requires that the fees be
eliminated at the earliest practicable dates. ad Article XI
Pararph 2 (c )
The term "in any form" in this paragraph covers the
same products when in an early stage of processing and still
perishable, which compete directly with the fresh product and
if freely imported would tend to make the restriction on the
fresh product ineffective.
Paragraph 2. last sub-pa gra .. ..raph
The term "special factors" includes changes in relative
productive efficiency as between domestic and foreign
producers, or as between different foreign producers, but not
changes artificially brought about by means not permitted
under the Agreement.
ad Article XII
Paragrag 3 ( )
The phrase "notwithstanding the provisions of
paragraph 2 of this Article" has been included in the text
to make it quite clear that a contracting party's import
restrictions otherwise "necessary" within the meaning of
paragraph 2(a) shall not be considered unnecessary on the
ground that a change in domestic policies as referred to in
the text could improve a contracting party's monetary reserve
position. The phrase is notintended to suggest that the
provisions of paragraph. 2 are affected in any other way
Consideration was given tothe special problems that
might be created for contracting parties which, as a result
of their programmes of full employment, maintenance of high
and rising levels of demand and economic development, find
themselves faced with a high level of demand for imports, and
in consequence maintain quantitative regulation of their
foreign trade. It was considered that the present text of
Article XII together with the provision for export controls
in certain parts of the Agreement, e.g. in Article XX, fully
meet .the position of these economies
ad Article XIII
Parara h
No mention was made of "commercial considerations" as
a rule for the allocation of quotas because it was considered - 81 -
that its application by governmental authorities might not
always be practicable. Moreover, in cases where it is
practicable, a contracting party could apply these
considerations in the process of seeking agreement, consistently
with the general rule laid down in the opening sentence of
paragraph 2.
Paragraph 4
See note relating to "special factors" in connection
with the last Sub-paragraph of paragraph 2 of Article XI.
ad Article XIV
Paragraph l(g)
The provisions of paragraph 1(g) shall not authorize
the CONTRACTING PARTIES to require that the procedure of
consultation be followed for individual transactions unless
the transaction is of so large a scope as to constitute an
act of general policy. In that event, the CONTRACTING
PARTIES shall, if the contracting party so requests, consider
the transaction, not individually, but in relation to the
contracting party's policy regarding imports of the product
in question taken as a whole.
Paragraph 2
One of the situations contemplated in paragraph 2 is
that of a contracting party holding balances acquired as a
result of current transactions which it finds itself unable
to use without a measure of discrimination.
ad Article XV
Paragraph 4
The word "frustrate" is intended to indicate, for
example, that infringements of the letter of any Article of
this Agreement by exchange action shall not be regarded as a
violation of that Article if, in practice, there is no
appreciable departure from the intent of the Article. Thus,
a contracting party which, as part of its exchange control
operated in accordance with the Articles of Agreement of
the International Monetary Fund, requires payment to be
received for its exports in its own currency or in the
currency of one or more members of the International Monetary - 82 -
Fund will not thereby be deemed to contravene Article XI or
Article XIIl. Another example would be that of a contracting
party which specifies on an import licence the country from
which the goods may be imported, for the purpose not of
introducing any additional element of discrimination in its
import licensing system but of enforcing permissible exchange
controls.
ad Article XVII
Paragraph 1
The operations of Marketing Boards, which are established
by contracting parties and are engaged in purchasing or
selling, are subject to the provisions of sub-paragraphs (a)
and (b).
The activities of Marketing Boards which are established
by contracting parties and which do not purchase or sell but
lay down regulations covering private trade are governed by the
relevant Articles of this Agreement.
The charging by a state enterprise of different prices
for its sales of a product in different markets is not
precluded by the provisions of this Article, provided that
such different prices are charged for commercial reasons, to
meet conditions of supply and demand in export markets.
Paragrah l(a)
Governmental measures imposed to ensure standards of
quality and efficiency in the operation of external trade, or
privileges granted for the exploitation of national natural
resources but which do not empower the government to exercise
control over the trading activities of the enterprise in
question, do not constitute "exclusive or special privileges".
Paragraph 1(b)
A country receiving a "tied loan'' is free to take this
loan into account as a "commercial consideration" when
purchasing requirements abroad.
Paragraph 2
The term "goods'' is limited to products as understood
in commercial practice, and is not intended to include the
purchase or sale of services. ad Article XVIII
Paragraph 3
The clause referring to the increasing of a most-
favoured-nation rate in connection with a new preferential
agreement will only apply after the insertion in Article I
of the new paragraph 3 by the entry into force of the
amendment provided for in the Protocol Modifying Part I and
Article XXIX of the General Agreement on Tariffs and Trade,
dated September 14, 1948.
Paragraph7(a)(ii) and (iii)
The word "processing", as used in these sub-paragraphs,
means the transformation of a primary commodity or of a
by-product of such transformation into semi-finished or
finished goods but does not refer to highly developed
industrial processes.
ad Article XXIV
Paragraph 5
It is understood that the provisions of Article I would
require that, when a product which has been imported into the
territory of a member of a customs union or free-trade area
at a preferential rate of duty is re-exported to the territory
of another member of such union or area, the latter member
should collect a duty equal to the difference between the
duty already paid and the most-favoured-nation rate.
Paragraph ll
Measures adopted by India and Pakistan in order to
carry out definitive trade arrangements between them, once
they have been agreed upon, might depart from particular
provisions of this Agreement, but these measures would in
general be consistent with the objectives of the Agreement.
ad Article XXVI
Territories for which the contracting parties have
international responsibility do not include areas under
military occupation.
ad Article XXIX
Paragraph 1
Chapters VII and VIII of the Havana Charter have been
excluded from paragraph 1 because they generally deal with the organization, functions and procedures of the
International Trade Organization.
FINAL NOTE
The applicability of the General Agreement on Tariffs
and Trade to the trade of contracting parties with the areas
under military occupation has not been dealt with and is
reserved for further study at an early date. Meanwhile,
nothing in this Agreement shall be taken to prejudge the
issues involved. This, of course, does not affect the
applicability of the provisions of Articles XXII and
XXIII to matters arising from such trade. - 85 -
ANNEX J
EXCEPTIONS TO THE RULE OF NON-DISCRIMINATION
(Applicable to contracting parties who so elect, in
accordance with paragraph l(d) of Article XIV, in lieu of
paragraphs 1(b) and 1(c) of Article XIV).
l.(a) A contracting party applying import restrictions under
Article XII may relax such restrictions in a manner which
departs from the provisions of Article XIII to the extent
necessary to obtain additional imports above the maximum
total of imports which it could afford in the light of the
requirements of paragraphs 3(a) and 3(b) of Article XII if
its restrictions were fully consistent with the provisions
of Article XIII; Provided that
(i) levels of delivered prices for products so imported
are not established substantially higher than those
ruling for comparable goods regularly available
from other contracting parties, and that any excess
of such price level for products so imported is
progressively reduced over a reasonable period;
(ii) the contracting party taking such action does
not do so as part of any arrangement by which
the gold or convertible currency which the
contracting party currently receives directly
or indirectly from its exports to other contracting
parties not party to the arrangement is appreciably
reduced below the level it could otherwise have
been reasonably expected to attain;
(iii) such action does not cause unnecessary damage to
the commercial or economic interests of any
other contracting party;
(b) Any contracting party taking action under this paragraph
shall observe the principles of sub-paragraph (a). A
contracting party shall desist from transactions which prove
to be inconsistent with that sub-paragraph but the contracting
party shall not be required to satisfy itself, when it is not
practicable to do so, that the requirements of that sub-
paragraph are fulfilled in respect of individual transactions. - 86 -
2. Any contracting party taking action under paragraph 1
of this Annex shall keep the CONTRACTING PARTIES regularly
informed regarding such action and shall provide such available
relevant information as the CONTRACTING PARTIES may request.
3. If at any time the CONTRACTING PARTIES find that import
restrictions are being applied by a contracting party in a
discriminatory manner inconsistent with the exceptions
provided for under paragraph 1 of this Annex, the contracting
party shall, within sixty days, remove the discrimination or
modify it as specified by the CONTRACTING PARTIES; Provided
that any action under paragraph 1 of this Annex, to the extent
that it has been approved by the CONTRACTING PARTIES at the
request of a contracting party under a procedure analagous to
that of paragraph 4(c) of Article XII, shall not be open to
challenge under this paragraph or under paragraph 4(d) of
Article XII on the ground that it is inconsistent with the
provisions of Article XIII.
Interpretative Note to Annex J
It is understood that the fact that a contracting party
is operating under the provisions of Part II(a) of Article XX
does not preclude that contracting party from operation under
this Annex, but that the provisions of Article XIV (including
this Annex) do not in any way limit the rights of contracting
parties under Part II(a) of Article XX. |
GATT Library | cm641cj3357 | Consultion with the Government of Switzerland regarding the report of Sub-Committee G of the Third Committee of the Havana conference | Interim Commission for the International Trade Organization, July 8, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 08/07/1948 | official documents | ICITO/EC.2/9 and ICITO/EC.2/7/N-ICITO/EC.2/11 | https://exhibits.stanford.edu/gatt/catalog/cm641cj3357 | cm641cj3357_90060202.xml | GATT_145 | 2,587 | 17,379 | INTERIM COMMISSION COMMISSION INTERIMAIRE DE
ICITO/EC .2/9
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE 8 JULY 1948
TRADE ORGANIZATION DU COMMERCE
ORIGINAL: ENGLISH
Second session
Item 9 of the provisional agenda
CONSULTION WITH THE GOVERNMENT OF SWITZERLAND REGARDING
THE REPORT OF SUB-COMMITTEE G OF THE THIRD COMMITTEE OF THE
HAVANA CONFERENCE
The resolutions etablishing the Interim Commission instructs the
Commission to carry out the functions and responsibilities referred to
in the report of Sub-Committee G of the Third Committee of the Havana
Conference on the proposal made by the delegation of Switerland, together
with the sections relating to that matter in the report of the Third
Committee. These reports recommend that the Interim Commission invite
the Swiss Government to participate in a study of the problems facing the
Swiss economy with a view to submitting to the First Conference of the
Organization a report as to the measures which could be taken in accordance
with the procedures established in the Charter for dealing with the
problem.
To assist the Executive Committee, the Secretariat has prepared the
attached paper which in Part I reproduces the proposal of the Swiss
delegation to the Havana Conference, in Part II recapitulates in summary
form the case stated by the delegate for Switzerland in support thereof,
in Part III summarizes the report of Sub-Committee G of the Third
Committee of the Havana Conference, and in Part IV sets out certain
statistical data on Swiss trade. It had been intended to include also
data on the Swiss balance of payments. It appears, however, that no
official estimates have been published, and such material as is available
did not appear to the Secretariat to enable any useful statement to be
presented.
It is suggested that the Executive Committee, after such review of
the matter as it may wish to undertake, determine a procedure for
consultation with the Swiss Government. In this connection, the Committee
may wish to determine whether all the members of the Committee should
participate in the consultations or whether it would be preferable to
/establish
UNRESTRICTED ICITO/EC.2/9
Page 2
establish a small negotiating group which, having consulted with the Swiss
authorities, would report back to the Executive Committee.
Having formulated its veiws on the procedure and timing of the
consultation with the Swiss Government, it is suggested that the Committee
invite the Swiss authorities to consult with it on these points. The
Committee will then be in a position to reach decisions acceptable to
itself and the Swiss Government
I. THE SWISS PROPOSAL
The proposal of the Swiss delegation at the Havana Conference called
for the insertion of the of following new paragraph in Chapter IV of the
"A Member, unable to invoke the provisions of Article 21
and finding that its economic stability, particularly in the
fields of agriculture and employment, is being seriously
impaired or gravely threatened, may take such steps as are
necessary for safeguarding its vital interests."
II.THE CASE PRESENTED BY THE DELEGATED FOR SWITZERLAND
The implementation of the Charter as drafted at Geneva would be
catastrophic for a country in the position of Switzerland standing in
isolation in relation to that large group of countries which would
employ quantitative restrictions in their external trade policy because
of currency and balance-of-payments difficulties. Switzerland imports
a part of her food supply and her secondary industries are dependent
upon imported raw materials: but her exports, on the other hand, are not
regarded as essential by other countries. Consequently, many of the
nations which trade as a Switzerland, as a contribution to the restoration
of equilibrium in their balances-of-payments, endeavour to increase their
exports to Switzerland and to reduce their imports; they wish to increase
their earnings of hard currency, while spending less.
Between eighty an ninety percent of Swiss exports are sent to
countries which are likeIy to use quantitative restrictions under
Article 21 to safeguard their balance -of -payments position. Switzerland
produces, little that is truly essential to these countries, and sixty
percent of her exports are regarded as luxuries.An unusually high
proprotion of industrial production, and in some industries nearly the
total output, is intended for export and, consequently, a decline in
exports threatenes unemployment and instability of the Swiss economy.
/Another ICITO/EC.2/9
Page 3
Another vulnerable point is the dependence upon the earnings of the tourist
and hotel trade. When other countries have an adverse balance of payments,
Switzerland is told that her tourist facilities, in addition to her
watches and her silks, are not required. This has happened recently; the
trade deficit more than doubled in 1947 and reached a total of 1,500
million Swiss francs.If bound by the Charter, Switzerland, with almost
the highest per capital foreign trade in the world, would be reduced
quickly to the position of an "Article 21" country and her monetary
reserves would be imperilled.
The position of Switzerland is relatively good at the present time due
to the commercial policy pursued since the close of the war. Switzerland
now has bilateral agreements with twenty-five countries. In bilateral
negotiations, she endeavours to sell her traditional exports in exchange
for the raw materials and merchandise she requires. Owing to the
peculiarities of Swiss trade - imports of essential materials and exports
of luxuries - neither tariffs nor quotas provide adequate protection;
Switzerland must be free to employ her restrictive measures on a
discriminatory basis both as a weapon in negotiations and as an instrument
for implementing agreements. Bilateral bargaining is a weapon of pure
defence - a protection against the exchange controls imposed by others.
The countries which trade with Switzerland have not complained of this
policy, and the very fact that import quotas may be used is often
sufficient to ensure that the export trade will be maintained. The threat
to the convertibility of the Swiss franc has thus been averted.
Unless the Charter provides that the policy of bilateral deals may
be sustained, it would be impossible for the Government to convince the
Swiss Parliament and the Swiss people that Switzerland should become a
member of the Organization. It has been said that the answer to the Swiss
problem lies in Article 40, but this is not sufficient since it relates
only to difficulties encountered in connection with the importation of
particular products. The Swiss Government does not find any provision in
the present framework of the Commerical Policy Chapter for the use of
the instruments of commercial policy which are indispenseable to the
maintenance and stability of Swiss trade and employment. Moreover, it is
evident that the Swiss case cannot be met by a simple amendment of
Article 21 or of Article 23, nor would a release from the obligations of
Chapter IV for a specified period of time be sufficient, inducement for
Switzerland to adhere to the principles of Chapter IV Switzerland must
have the bargaining powers which are at present exercised if Swiss
interests are to be protected.
/III. THE REPORT ICITO/EC.2 /9
Page 4
III. THE REPORT OF THE SUB-COMMITTEE OF THE
HAVANA CONFERENCE
(Document E/Conf. 2/C.3/72)
The Sub-Committee based its enquiries on the assumption that
Switzerland would not be eligible to impose quantitative restrictions
under Article 21 but might suffer damage from the restrictions imposed by
other Members under that Article. The Sub-Committee examined the
arguments advanced to justify the need for special measures, and agreed
that several of the factors mentioned, when taken together, represented
a combination of circumstances requiring special consideration. The
following factors were mentioned:
(a) a relatively high proportion of total production being dependent
upon export markets;
(b) a relatively high proportion of exports consisting of goods and
services that are considered as inessential by many importing countries
(c) the normal export markets being located in countries which apply
import restrictions in accordance with the principles of the Charter,
Therefore, the Sub-Committee recognized that a small country in a
position such as that of Switzerland may experience serious unemployment
when its exports are restricted by others, and that this risk is increased
when convertibility of currency is maintained since the country concerned
then becomes an exceptionally attractive market, the pressures resulting
from these circumstances may, in, the long run, undermine the convertibility
of the currency.
Further, the Sub-Committee recognized that Articles 21 and 40 are
insufficient to meet the exceptional needs of Switzerland and that, if
Switzerland has to engage in bilateral negotiations with countries which
are applying import restrictions, it will require bargaining powers to
safeguard its export and to defend itself against the pressure of excessive
imports. Nevertheless, the Sub-Committee reached the conclusion that the
proposal put forward by the delegate for Switzerland was so far-reaching
that its adoption would dagerously weaken the structure of the whole
Charter. The Sub-Committee was unable to recommend the adoption of the
Swiss proposal, but considered that the problem required further and more
detailed examination
The Havana Conference approved the recommendation of the Sub-Committee
that the Interim Commission should invite the Swiss Government to participate
in a study of the problems facing the Swiss economy with a view to submittin
to the first Conference of the Organization a report on the measures which
could be taken in accordance with the procedures established in the Charter.
/IV. STATISTICAL Page 5 ICITO/EC.2/9
IV. STATISTICAL DATA ON SWISS TRADE
The following tables give relevant statistics of Swiss external trade
in two pre-war and two post-war years:
Table 1: External trade by degree of manufacture
million per million per million per 1937 1938 1946 1947
1. Imports
Food,fodder, 484.6 26.8 445.9 27.7 1,023.8 29.9 1,424.7 29.6
etc.
Raw materials 669.0 37.0 570.0 35.5 1,399.7 40.9 1,591.1 33.0
Manufactued 653.5 36.2 591.0 36.8 999.0 29.2 1,804.3 37.4
goods
Total 1,807.2 100.0 1,606.9 100.0 3,422.5 100.0 4,820.0 100.0
2. Exports
Food, fodder 75.1 5.8 79.2 6.0 89.3 3.3 75.2 2.3
etc.
Raw materials 108.8 8.5 85.8 6.5 116.1 4.4 119.4 3.7
Manufactured 1,102.2 85.7 1,151.5 87.5 2,470.1 . 92.3 3,072.9 94.0
Total 1,286.1 100.0 1,316.6 100.0 2,675.5 100.0 3,267.6 100.0
3. Excess of
Imports
over
exports 521.1 290.3 747.0 1,552.4
Sources: The data contained in this and the following Tables were obtained
from:
International Trade Statistics, 1938. (League of Nations).
Schweizerisch Handelestatistik, 1938 and 1947.
Jaressnhentatistik des Aussebadels, 1946 and 1947.
Jahrssstatistik des Auswartigen Handels, 1937, 1938 and 1947.
/Table 2: ICITO/EC. 2/9
Page 6
Table 2: Imports by countries
(Listed in order of importance as suppliers in 1947)
Special imports of merchandise
7-( t'.
_-'2';-ol
"m _2_fo . 'pe%,t_*
.5L7.8 547.8 16.0hted Sta~e 126 a .0 3,;.
3raw 9.2 14.3 355.0 10.4 .6 220,
Belgiu3 and 2 8.9 4.3 314.5 9.2
Lxemebourg
Unietd Kingobm 212. 7.6295.0 5.9 1 6.6 5.7.
Itlay 117.4 6.5 1167 7.3 227.7 6.7.
Argentina 92.9 5.01 5.4
Czceolovakia e h 75.2 4, .;rlt
Netherlands 62.6 3.
Dnmark: 21 3 1
Germany 402., 223 -31
S Ui age3 1 58
Austr~f 44. 2 2.4 33.!
Canada 2 P 1 3
n .8.5 05 5.)
1umania 4-,85 . -
Other cotiries 334e5 3.4J 3
Total 18672 100.0 3,66.
a.c^ r-s
5.N*
'>..9 4 7. 8.9
5ff
I..
1.
06^
1 0.
2
4
1
3 -7 07
32o6 6.6f
3. ;34
149.8 3.
55 * 1.2
46M 1,0
4.3 0.1
1Y0.0 0 0
227.7 6
2S.v
M-. $9
69.1 2.0
~~.2
-0.6*
J3 o
!*,516.0
*Includes Nevz=.Aa
/Table 3: IClTO/EC .2/9
Page 7
Table 3: Exports by countries
(Listed in order of importance as countries of destination in 1947)
million
France
United States
Luxembourg
Sweden
Italy
Argentina
Czechoslovakia
Netherlands
Brazil
United Kingdom
Canada
China
Austria
special exports of merchandise
per million per milion per
france cent
112.3
29.1
102.2
31.2
52.5
45.4
15.3
143.8
23.2
15.2
17.9
37.9
199.9
8.7
3.5
10.8
2.3
7.9
2.4
4.1
3.5
1.2
11.2
1.2
1.4
2.9
15.5
Other countries 21.6
Total 1,286.1 100.0
90.7
41.8
121.4
40.6
91.2
35.8
44.0
61.9
16.6
l48. l
23 .3
14. 7
27.5
6.9
3.2
9.2
3.1
6.9
2.7
3.3
4.7
1.3
11.2
1.1
2.1
30.6 2.3
1,316.6 100.0.
45.,3
26.,5
1
97.0
891j
1015.4
88.0
17.0
99
10.5
8.9
5.6
3.3
3.9
3.3
2. 2
44.7 1.7
39.8 1.5
58.0 2.2
19.5 0.7
7.9 0.3
2, 675.5 100 . 0
per
12.1
305.7 9.3
298.2 9.1
218.0 6.7
209.5 6.4
175.3 5.4
152.9 4.7
117.0 3.6
53.9 1.6
50.7 1.6
39.0 1.2
15.5 0.5
3,267.6 100.0
P
- WI' I -
w q _ . . ICITO/EC.2/9
Page 8
. . ..
mpoTeb by main calegoriese: 8 taso
1947
miIOAi lpow lifmillion~on p i ilI'nno m:li=. er
cen~~~~~~~~~~~~te t
Cewse 197,5
rulta- 72
vegetable
Food of3.0lonial 6.O
countries
Food of an0.2l 6o0
origin
Beveraos
es,ns hb±4
, furs, futs
Seeds and
plants
Wood and timber
Cotton (raw
a.) mfg)
Blk,
Wool
Minerals
.no n azdiron
Copper and
copper
products
Maoiery
Vehicles
chemicals
Technical fats
Instrums aedntn
apparatus
Rub,ee)eoto.
Tobacco
Othetem
Toat
31 .7
I8.3
44.7
34.3
112,5.
6e2.
90.9
171.0
165.9
10.9 179.7
4*. 82 .
11. 2
255.6 5
l59.7 5.7
3. 5 63.0 3.9 198.5
30. 53,3 3.3 117.1
1.7 36.6 2.3 159.7
3.2 39.3 2.5 96,.
1.9
60.
3.5
9.2
42,.2 .3
40,.
96.9
27.9
16.2
,18072.
3.4
2.3
5.3
1 7
1.2
09.
10,0.
37.3
31.9
73t0
49.5
67,.
165.5
1301.0
31.5
71.4
52.2
26.4
31.0
19.1
17.3
2.3
2.0
4.5
3.1
4. 2
10.3
8.1
4.4
3.3
5.2
1.9
1.2
1.1
1,606.9 100.0
78.1
52.1
149.3
254.8
37.5 7.9
193.4 4.0
5.8 302.2 6.3
3.4 266.4 5.5
4.7
2.8
2.3
1.5
4.4
90.6 2.6
207.8 6.1
254.8 7.4
420.5 12.3
64.5 1.9
...
76.2
72.3
210.4
66.8
44.1
48 8
3,422.5
2.2
2.1
6.2
2.0
1.3
100.0
99.4
139.7
143.8
2.1
2.9
3.0
.
88.9 1 8
221.4 4.6
71,
275.5
405,
516.5
1.5
5.7
8.4
10.7
1.5
182.9
209,0
239.8
90,6
80.5
58,2
4,820.0
3,8
5.0
1,9
1.7
1.7
1.2
100.0
/Table 5: TabLe 5: Exports by main categories
per milion per million per
cek06 .ent rance f
Yoa or nimal
origin
Skins, h,desp
fuis and
leather
Cotton
Silk
Wool
fr&
Copper
Ainiumall
mfg.)
Ychinery
Vehicles
Watches an
ocks(q cl.
parts
instruments
and appar.
Pharmaceutical
goods and
drugs
Chemicals
Dyes
Fruits and
vegetables
Animals
Wood and Timber
Books, journals
etc.
34.5
125.5(1)
9.8(2)
1.6(3)
52.8
57.6
168.8
21.6
240.4
47.2
3.9
2.7
9.8
7.4
1.7
4.1
2.3
4.5
13.3
1.7
18.7
3.7
59.4
48.4
86.3
8.8
7.1
4.8
8.3
3.8
6.7
0.7
0.6
0.4
0.6
55.3,
34.7
109,1(l)
87.1(2)
8e.4()5
52 .(t4)
23.3 (5)
63.6
5.,4
84.3
6.0
3.2
.,9
8.1
2.6
8.3
6.6
164
.,0
1.8
5.6
15.7
2.4
18.3
1U.7 0.A
30.9 1.2
94.1
361.9
2.-4
7.,8
13.8
34.1
418.8
34.9
605.2
3.5
13.5
0.9
2.6
0.5
1.3
15.6
1.3
22.6
4.3 127.1 4.8
20. 5
0.6
34.1 1.0
192.2
297.7
20.9
97.4
29.0
52.4
571.4
51.4
768.7
5.9
9.1
3.0
0.9
1.6
17.5
31.6
23.6
168.2 5.1
4.8 171.0 6.l 229.9
3.9
6.4
0.5
0.2
0.3
0.6
56.7
179.4
340.7
41.4
32.6
2.1
6.7
2.0
1.5
1.6
1.2
96.4
237.6
16.7
18.4
25.6
34.5
7.0
2.9
7.3
0.5
o.6
0.8
1.1
clothing
Other items
97.6
1,286.1
1.5
100.0
19.7
1,316.6
X
.
2,675.5
236.4
100.0 3,267.6
(1) Of whicanufa mfctured cotton, In 1937:
) sil:k : 88.0 sllk . " "
(3) " ": 9.6 wool
iron "
itIt I t It1
121 and in 1938:
i tto
88.0
9.6 " *
15.2 " t I
11o " .
am
100.0
106.0
78,
9,5
42.5
9.0
-- - --- ---O I - --O,. -V - ,.;
_ __*L
IC M N. ,
pap!
49.8 |
GATT Library | wz797wv8095 | Contracting Parties third session. Draft protocol for the accession of governments participating in the tariff negotiations at Annecy, France, in 1949 | General Agreement on Tariffs and Trade, April 5, 1948 | General Agreement on Tariffs and Trade (Organization) | 05/04/1948 | official documents | GATT/CP.3/W.1 and GATT/CP.3/W.1+Add.1 | https://exhibits.stanford.edu/gatt/catalog/wz797wv8095 | wz797wv8095_91870510.xml | GATT_145 | 1,092 | 6,902 | GENERAL AGREEMENT ACCORD GENERAL SUR RESTRICTED
ON TARIFFS AND LES TARIFS DOUANIERS GATT/CP.3/W.1
TRADE ET LE COMMERCE 5 April, 1948
ORIGINAL: ENGLISH
CONTRACTING PARTIES THIRD SESSION
DRAFT PROTOCOL FOR THE ACCESSION
OF GOVERNMENTS PARTICIPATING IN THE TARIFF NEGOTIATIONS
AT ANNECY, FRANCE, IN 1949
The Governments of . . . . . . . . . . . . . which
are the Contracting Parties to the General Agreement on Tariffs and
Trade which is annexed to the Final Act of the Second Session of the
Preparatory Committee of the United Nations Conference on Trade and
Employment (hereinafter called "the Contracting Parties" and "the
Agreement" respectively), and the Governments of .. . . . .
. . ..... . (hereinafter called "the acceding Governments").
HAVING carried out negotiations directed towards the accession
of the acceding Governments to the Agreement in accordance with the
provisions of Article XXXIII thereof, and, in the meanwhile, to its
provisional application.
HAVING agreed the terms on which the acceding Governments may
so accede which terms have been approved by a decision taken by the
Contracting Parties at their Third Session and are annexed to this
Protocol,
HEREBY AGREE AS FOLLOWS :
1. Subject to the provisions of paragraphs 4 and 5,
(a) each of the acceding Governments shall, upon the entry into
force of this Protocol with respect to it, apply provisionally: GATT/CP.3/W.1
page 2
(i) Parts I and III of the Agreement, and
(ii) Part II of the Agreement to the fullest extent not
inconsistant with existing legislation.
The Schedules which are appropriate for the purposes of
Article II of the Agreement in respect of the acceding
Governments shall be those contained in Annex B to this
Protocol;
(b) upon the entry into force of this Protocol with respect to each
acceding Government, that Government shall become a Contracting
Party as defined in the Agreement. and shall be treated as such
by all other Contracting Parties.
2. Notwithstanding the provisions of paragraph 1 (b) , no Contracting
Party shall be required to extend to any acceding Government with
respect to which this Protocol has entered into force ; the benefit
of the concessions provided for in the appropriate Schedule annexed
to the Agreement until that Contracting Party has signed this
Protocol.
3. From the date upon which this Protocol enters into force with
respect to any Contracting Party such Contracting Party shall
extend to each acceding Government which has signed this Protocol,
or in respect of any acceding Government which signs at a later
date, from that date, the benefit of the concessions provided for
in the appropriate Schedule annexed to the Agreement as amended by
the appropriate Schedule contained in Annex A to this Protocol.
4. Any Government which signs this Protocol shall be free to with-
hold in whole or in part any concession, provided for in the
appropriate Schedule contained in Annex A or B to this Protocol, in GATT/CP.3/W.1
page 3
respect of which such government determines that it was initially
negotiated with a Contracting Party or an acceding Government which
has not signed this Protocol; Provided that the government taking
such action shall give notice to the CONTRACTING PARTIES within
thirty days from the day on which this Protocol enters into force
withrespect to such government and, upon request, shall consult
with Contracting Parties and acceding Governments which have a
substantial interest in the product concerned; and Provided further
that, without prejudice to the provisions of Article XXXV of the
Agreement, any concession which has been so withheld shall be
applied from the date upon which the.Contracting Party or acceding
Government with which it was initially negotiated signs this Protocol.
5, The dates "1 September 1947," "10 October 1947" and "January 1, 1951"
specified in paragraph 11 of Article XVIII and paragraph 1 of Article
XXVIII of the Agreement respectively shall, in respect of each
acceding Goverment which becomes a Contracting Party pursuant to
this Protocol, be extended to "May 1, 1949," "June 15, 1949" and.
"September 1, 1952."
6. The provisions of the Agreement to be applied pursuant to paragraphs
1 and 5 shall be those contained in the annexure to the Final Act
above mentioned as amended by each and every one of the Protocols to
the Agreement drawn up since the date of the said Final Act which have
become effective. Signature of this Protocol by an acceding
Government shall be regarded as. an acceptance of any such Protocol
which has not become effective by the date of entry into force of
this Protocol as regards that acceding Government. GATT/CP.3/W.1
page 4
7. Upon the day upon which this Protocol enters into force with
respect to any Contracting Party the Schedule contained in Annex
A to this Protocol referring to such Contracting Party shall
become an integral part of the Agreement, Upon the day upon
which this Protocol enters into force with regard to any acceding
Government, the Schedule contained in Annex B to this Protocol
referring to such acceding Government shall become an integral
part of the Agreement.
8. Any one of the acceding Governments shall, after it has become
a Contracting Party, be free to withdraw its provisional
application of the Agreement and such withdrawal shall take effect
upon the expiration of sixty days from the day on which written
notice of such withdrawal is received by the Secretary-General of
the United Nations.
9. The original of this Protocol shall be deposited with the
Secretary-General of the United Nations, who will furnish certified
copies thereof to all interested Governments. The Secretary-
General is authorized to register this Protocol as from the date
upon which it first enters into force. This Protocol shall first
enter into force upon the date upon which it will have been
signed by:
Alternative A - any three Contracting Parties;
Alternative B - The Governments of the Commonwealth of
Australia, the Kingdom of Belgium, Canada,
the French Republic, the Grand-Duchy of
Luxemburg, the Kingdom of the Netherlands,
the United Kingdom of Great Britain and GATT/CP.3/W.1
page 5
Northern Ireland and the United States of
America,
and by any one of the acceding Governments. From that date it
shall bind the signatory governments. Thereafter it shall
come into force for each other Contracting Party and for each
other acceding Government upon the date of signature by such
Contracting Party or acceding Government.
DONE at Annecy in a single copy, in the English and French
languages, both texts authentic, this . . . . day of . . .
One thousand nine hundred and forty-nine. |
GATT Library | dw503hh1056 | Correction in speech by the Delegate from Haiti | United Nations Conference on Trade & Employment, March 23, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade & Employment | 23/03/1948 | press releases | Press Release IT0/199/Corr.1 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/dw503hh1056 | dw503hh1056_90200393.xml | GATT_145 | 95 | 614 | UNITED NATIONS CONFERENCE ON TRADE & EMPLOYMENT
Department of Public Information
Havana, Cuba
Press Release IT0/199/Corr. 1
23 March 1948
COPRECTION IN SPEECH BY THE DELEGATE FROM HAITI
The following corrections in Press Release IT0/199
-- Speech by the Delegate from Haiti -- have been requested by
the Haitian Delegation:
1. In English Text: On Page 4, second lino, make it
read "Article 36" (instead of "Article 35")
2. In French text: On Page 4, first line,make it read,
"... chose nuquel. . ." insead of "....chese a laquelle..."
(End of Press Release ITO/199/Corr. 1) |
GATT Library | st211mw8191 | Correction to agenda for the twenty-first meeting | United Nations Conference on Trade and Employment, January 26, 1948 | Sixth Committee: Organization | 26/01/1948 | official documents | E/CONF.2/C.6/46/Corr.1 and E/CONF.2/C.6/44-75 | https://exhibits.stanford.edu/gatt/catalog/st211mw8191 | st211mw8191_90170099.xml | GATT_145 | 81 | 546 | United Nations
CONFERENCE ON TRADE AND EMPLOYMENT
Nations Unies
COMMERCE ET DE L'EMPIOI
UNRESTRICTED
E/CONF.2/C.6/46/
Corr.1
26 January 1948
ENGLISH - FRENCH
ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
CORRECTION TO AGENDA FOR THE TWENTY-FIRST MEETING
In Item 11, 12, 13 and 14 of the Agenda the references should be to
document E/CONF.2/C.6/37.
SIXIEME COMMISSION : ORGANISATION
RECTIFIACTIF A L'ORDRE DU JOUR DE LA VINGT ET UNIEME SEANCE
Le document de référence des points 11, 12, 13 et 14 eat la document
E/CONF.2/C.6/37. |
GATT Library | yg557nt7014 | Correction to Notes on the Seventeenth Meeting of the Sub-Committee on Chapter VIII (E/CONF.2/C.6/W.102) | United Nations Conference on Trade and Employment, February 28, 1948 | Sixth Committee: Organization | 28/02/1948 | official documents | E/CONF.2/C.6/W.102/Corr.1 and E/CONF. 2/C. 6/W. 81-118/ADD. 1 | https://exhibits.stanford.edu/gatt/catalog/yg557nt7014 | yg557nt7014_90200229.xml | GATT_145 | 99 | 746 | United Nations
CONFERENCE ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
RESTRICTED
E/CONF.2/C.6/W.102/
Corr. 1
28 February 1948
ENGLISH - FRENCH
ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
Correction to Notes on the Seventeenth Meeting of
the Sub-Committee on Chapter VIII
(E/CONF.2/C.6/W.102)
All references to the representative of Iraq in document E/CONF.2/
C.6/W.102 should be to the representative of Iran.
SIXIEME COMMISSION : ORGANISATION
Rectificatif aux notes de la dix-septième séance de la Sous-Commission
charge d'étudier le chapitre VIII (E/CONF.2/C.6/W.102)
Tout au long du document E/CONF.2.C.6/W.102, lire " representant de
l'Iran" au lieu de "représentant de l'Irak". |
GATT Library | dh673bc5224 | Corrigedum to notes on Seventh Meeting | United Nations Conference on Trade and Employment, January 12, 1948 | Joint Sub-Committee of Committees II and III on Tariff Preferences and Joint Sub-Committee of Committees II and III: Tariff Preferences | 12/01/1948 | official documents | E/CONF.2/C.23/A/W.7/Corr.1, E/CONF.2/C.2/D/W.1-3, C.23/A/W.1-3, and C.26/A/W.1-29 | https://exhibits.stanford.edu/gatt/catalog/dh673bc5224 | dh673bc5224_90180346.xml | GATT_145 | 134 | 863 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
RESTRICTED
E/CONF.2/C .2&3 A/
W.7/Corr. 1
12 January 1948
ENGLISH - FRENCH
ORIGINAL: ENGLISH
SECOND AND THIRD COMMITTEES
JOINT SUB-COMMITTEE ON TARIFF PREFERENCES
CORRIGEDUM TO NOTES ON SEVENTH MEETING
At the request of the Delegation of Egypt the notes on the seventh meeting
should be amended by the insertion of "end/or of the Arab League" after
"Middle East" in the third line.
DEUXIEME ET TROISIEME COMMISSIONS
SOUS-COMMISSION MIXTE DIS PREFERENCES TARIFAIRES
RECTIFICATIF AUX NOTES DE LA SEPTIEME SEANCE
A la demede de la délégation égyptienne, il faut compléter le texte
des notes de Ia septième séance en ajoutant, à la suite de l'expression
"Moyen Orient", à la quatrième ligne, les mots : "et/ou les pays de la
Ligue arabe". |
GATT Library | vq872ds5686 | Corrigedum to proposed redraft of final text of chapter III : Article 13 Governmental Assiatance to Economic Development and Reconstruction | United Nations Conference on Trade and Employment, March 18, 1948 | Central Drafting Committee | 18/03/1948 | official documents | E/CONF.2/C.8/19/Corr.1 and E/CONF. 2/C. 8/17-28 | https://exhibits.stanford.edu/gatt/catalog/vq872ds5686 | vq872ds5686_90200302.xml | GATT_145 | 192 | 1,239 | URESTRICTED
United Nations Nations Unies E/CONF.2/C.8/19/
Corr.1
CONFERENCE CONFERENCE 18 March 1948
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
CENTRAL DRAFTING COMMITTEE
CORRIGEDUM TO PROPOSED REDRAFT OF FINAL TEXT OF CHAPTER III
Article 13
Governmental Assiatance to Economic
Development and Reconstruction
on page 4 in paragraph 3 (b) in the fourteenth line from the bottom
of the page underline the word "or".
On page 6 in the second line of paragraph 4 (a) insert a comma
after "3".
On page 8 in paragraph 4 (c) in the second line from the end the
comma after "so" should be a period.
On page 12 in paragraph 7 (a) (ii) in the fifth lines the initial "f"
in "final" should be "F".
On page 22 in paragraph 9 correct the last line to read as follows:
"under [sub-] paragraph [(a)] 6."
On page 23 paragraph 10 in the eleventh line from the bottom of the
page delete "that" and substitute "but".
On page 25 in the title of the interpretative note add "a" at the
end of "Paragraph" and in the second line of the note Insert "," atter
"sub-paragraphs". |
GATT Library | zq282rd4618 | Corrigenda to the Summary Record of the Twenty-Fourth Meeting(IIIb) | United Nations Conference on Trade and Employment, January 8, 1948 | Third Committee: Commercial Policy | 08/01/1948 | official documents | E/CONF.2/C.3/24/Corr.1 and E/CONF.2/C.3/SR.17-31 | https://exhibits.stanford.edu/gatt/catalog/zq282rd4618 | zq282rd4618_90190253.xml | GATT_145 | 217 | 1,514 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/
ON DU SR.24/Corr. I
8 January 1948
TRADE AND EMPLOYMENT ORIGINAL: ENGLISH COMMERCE ET DE L'EMPLOI
THIRD COMMITTEE: COMMERCIAL POLICY
CORRIGENDA TO THE SUMMARY RECORD OF THE TWENTY-FOURTH MEETING (IIIb)
1. On page 1 delete the first paragraph of the speech by
Mr. DEDMAN (Australia) and substitute the following:
"(Item 80) Mr. DEDMAN (Australia) assumed that the purposes
of the present draft of Article 24, paragraph 2, were to
prevent duplication of staff and other facilities between
ITO and IMF and to ensure that ITO made full use of the
special kowledge and competence of the Fund in relation to
balance of payments questions. He was in complete agreement
with these purposes, and did not put forward the Australian
amendment as a substantive change in the content of the
Charter. The present wording of paragraph 2, however, did
not achieve these purposes effectively".
2. On page 5, add the following to the statement of Mr. DUNAWAY (Liberia):
"He asked for an explanation of the nature of the terms and
obligations which a country would be required to assume under
a special exchange agreement. The Organization should obligate
itself not to cause damage to Members by permitting other
Members to use restrictions in order to safeguard their balance
of payments". |
GATT Library | kw617dm0706 | Corrigendum | United Nations Conference on Trade and Employment, January 10, 1948 | Third Committee: Commercial Policy and Sub-Committee F (Articles 21, 23 and 24) | 10/01/1948 | official documents | E/CONF.2/C.3/F/W.6/Corr.1 and E/CONF.2/C.3/F/W.1-31/REV.2 | https://exhibits.stanford.edu/gatt/catalog/kw617dm0706 | kw617dm0706_90190567.xml | GATT_145 | 88 | 559 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
PESTRICTED
E/CONF. 2/C .3/F/
W. 6/C orr .1
10 January 1948
ENGLISH ONLY
ORIGINAL: ENGLISH
THIRD COMMITTES: COMMERCIAL POLICY
SUB-COMMITTEE F (ARTICE 21, 23 AND 24)
C ORRIGENDUM
1. The title of this document should read:
THIRD COMEETTEE: COMMERCIAL POLICY
SUB COMMITTEE F (ARTICLES 21, 23 A.ND 24)
BEIGIUM: PROPOSED AMENDMENTS TO ARTICLES 21 AND 23
2. Paragraph A to D all refer to Article 21 and paragraph E refers to
Article 23. |
GATT Library | sj604cx3090 | Corrigendum | Accord General sur les Tarifs Douaniers et le Commerce, August 21, 1948 | General Agreement on Tariffs and Trade (Organization), Parties Contractantes, and Contracting Parties | 21/08/1948 | official documents | GATT/CP.2/13/Corr.1 and GATT/CP.2/1-13,CP.2/2/Corr.1, CP.2/3/Rev.1,2,2/Corr.1,CP.4/Corr.1 4/Add.1,2,2/Corr.1,CP.6/Rev.1, CP.13/Corr.1,13/Add.1 | https://exhibits.stanford.edu/gatt/catalog/sj604cx3090 | sj604cx3090_90320023.xml | GATT_145 | 125 | 810 | RESTRICTED
LIMITED B
GATT/CP.2/13/Corr.1
21 August 1948
ORIGINAL: ENGLISH
FRENCH
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET
LE COMMERCE
Parties Contractantes
Seconde Session
Corrigendum
Texte francais
Page 2, dernier paragraphe 12ème ligne :
Remplacer les mots "...ne doit tenir compte que ..."
par les mots "...doit tenir compte..."
English text
Page 2, last paragraph:
Delete the second sentence in this paragraph and substitute
the following:
"This tariff' moreover, will have to take account
of the conclusion of the Italo-French Customs Union
which is expected to intervene in the very near
future and which will be subject to the approval
by Parliament; it will thus have to be so drafted
as to be replaceable at a given moment by the tariff
of tho Italo-French Customs Union". |
GATT Library | sf375kd8196 | Corrigendum au Compte Rendu de la Douzième séance | Accord General sur les Tarifs Douaniers et le Commerce, September 2, 1948 | General Agreement on Tariffs and Trade (Organization), Parties Contractantes, and Contracting Parties | 02/09/1948 | official documents | GATT/CP.2/SR.12/Corr.2, GATT/CP.2/SR.8,8/Corr.1-CP.2/SR.13,13/Corr.1+SR.9/Corr.1,SR.11/Corr.1, and SR.12/Corr.1-4 | https://exhibits.stanford.edu/gatt/catalog/sf375kd8196 | sf375kd8196_90270052.xml | GATT_145 | 112 | 777 | RESTRICTED
LIMITED B
GATT/CP .2/SR.12/Corr .2
2 September 1948
FRENCH
Original : ENGLISH
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMERCE
Parties Contractantes
Deuxième Session
Corrigendum au Compte Rendu de la Douzième
séance
Page 7 :
Insérer le paragraph suivant avant l'interven-
tion de M. NORVAL (Union sud-africaine) :
"M. WUNSZ KING (Chine) partage l'opinion suivant
laquelle il n'y a, semble-t-il, aucune nécessité de signer
sur une base multilatérale un instrument contenant des
dispositions identiques à celles qui figurent dans
I'Echange de Notes bilatéral; en effet, cela pourrait
faire surgir un certain nombre de complications, d'un
caractère Juridique ou autre, relativement à l'Accord
général sur lee tarifs douaniers et le commerce." |
GATT Library | wg953nb3003 | Corrigendum in english translation of address by Mr. Walter Muller of Chile | United Nations Conference on Trade & Employment, March 22, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade & Employment | 22/03/1948 | press releases | Press Release ITO/188/Corr.1 and ITO/73-194/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/wg953nb3003 | wg953nb3003_90200385.xml | GATT_145 | 55 | 333 | UNITED NATIONS CONFERENCE ON TRADE & EMPLOYMENT
Department of Public Information
Havana, Cuba
Press Release ITO/188/Corr. 1
22 March 1948
CORRIGENDUM IN ENGLISH TRANSLATION OF ADDRESS BY MR. WALTER MULLER
OF CHILE
On Page 3 cf Press Release ITO/188 at end of 19th line,
please, make it read CHILE (Not Uruguny as sent).
.
. |
GATT Library | rc176bz3309 | Corrigendum in text of speech by Delegtate of Brazil | United Nations Conference on Trade & Employment, March 24, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade & Employment | 24/03/1948 | press releases | Press Release ITO/214/Corr.1 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/rc176bz3309 | rc176bz3309_90200407.xml | GATT_145 | 62 | 442 | UNITED NATIONS CONFERENCE ON TRADE & EMPLOYMENT
Department of Public Information
Havana, Cuba
Press Release ITO/214/Corr.1
24 March 1948
CORRIGENDUM IN TEXT OF SPEECH BY DELEGTATE OF BRAZIL
NOTE TO CORRESPONDENTS: In ITO/214, in English, French,
and Spanish versions, in fourteenth paragraph, please insert CUBA
in list of countries credited with promoting the chapter of economic
development.
(End of Press Release ITO/214/Corr.1) |
GATT Library | fn490zh0406 | Corrigendum in text of speech of Dr. H. C. Coombs, Australia | United Nations Conference on Trade & Development, March 23, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade & Development | 23/03/1948 | press releases | Press Release ITO/212/Corr.1 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/fn490zh0406 | fn490zh0406_90200404.xml | GATT_145 | 184 | 1,149 | UNITED NATIONS CONFERENCE ON TRADE & DEVELOPMENT
Department of Public Information
Havana, Cuba
Press Release ITO/212/Corr.1
23 March 1948
CORRIGENDUM IN TEXT OF SPEECH OF DR. H. C. COOMBS, AUSTRALIA
The following corrections to Dr. H. C. Coombs' speech (ITO/212)
have been requested by the Australian Delegation:
1. Replace sentence in Line 19, Page 1, beginning with
These difficulties" by following words:
"Upon these questions, therefore, my Government has reservation:
and it will have to take into account" (continue to end).
2. Insert in line 14 of page 2 the word "positive" before
before "economic opportunity".
3. Replace in line 19 of same page "positive (action)" by
"direct and purposeful".
4. Replace in line 4 of paragraph 2, page 1 the word "them" by
"these two conceptions".
5. Replace in next to the last line of same paragraph the word
"'buy" by "trade".
6. Insert in line 5 from bottom of page 3, after "eternal
vigilance" the following words: "and the price of economic
opportunity is eternal struggle". Then follow up with
separate sentence, beginning with "The ITO, etc".
(END OF PRESS RELEASE ITO/212) |
GATT Library | hm182sw6003 | Corrigendum in text of speech of Indian Delegate | United Nations Conference on Trade & Employment, March 23, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade & Employment | 23/03/1948 | press releases | PRESS RELEASE ITO/178/Corr.1 and ITO/73-194/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/hm182sw6003 | hm182sw6003_90200376.xml | GATT_145 | 154 | 1,002 | UNITED NATIONS CONFERENCE ON TRADE & EMPLOYMENT
Depertment of Public Information
Havana, Cuba
PRESS RELEASE ITO/178/Corr.1
23 March 1948
CORRIGENDUM IN TEXT OF SPEECH OF INDIAN DELEGATE
Note to correspondents:
The Indian Delegation requests that the following
correction be made in the text of the speech to be delivered by
Sardar H.S. Malik, Leader of the Indinn Delegation at the Plenary
Session scheduled for 3 p.m, today, 23rd March.
On page 2, after the word "success" in line 8, insert the
following sentence: -
"The Indian Delegatien was anong those which opposed the
principle of prior consultation with the I.T.O. in respect of
certain neasures required for economic development. That principle
has been retained in the Charter, but has been qualified by certain
definite limitations on the discretion of the Organization. We are
hoping that informed public opinion in India will accept this
compromise in larger world interests."
(END OF PRESS RELEASE ITO/178/Corr, 1) |
GATT Library | rj146py7171 | Corrigendum to Agenda for Thirty-Third Meeting : Sub-Committee A will meet on Monday, 9 February, at 10.30 a.m. instead of 3.00 p.m | United Nations Conference on Trade and Employment, February 7, 1948 | Third Committee: Commercial Policy and Third Committee: Commercial Policy Sub-Committee A (Articles 16, 17, 18, 19) | 07/02/1948 | official documents | E/CONF.2/C.3/A/24/Corr.1 and E/CONF.2/C.3/A-E | https://exhibits.stanford.edu/gatt/catalog/rj146py7171 | rj146py7171_90190327.xml | GATT_145 | 95 | 653 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI RESTRICTED
E/CONF.2/C.3/A/24/
Corr.1
7 February 1948
ENGLISH - FRENCH
ORIGINAL: ENGLISH
THIRD COMMITTEE COMMERCIAL POLICY
SUB-COMMITTEE A (ARTIOLES 16, 17, 18, 19)
CORRIGENDUM TO AGENDA FOR THIRTY-THIRD MEETING
Sub-Committee A will meet on Monday, 9 February, at 10.30 a.m. instead
of 3.00 p.m.
TROISIEME COMMISSION: POLITIQUE COMMERCIALE
SOUS-COMMISSION A (ARTICLES 16, 17,18, 19)
CORRIGENDUM A L'ORDRE DU JOUR DE LA TRENTE-TROISIEME SEANCE
Ia Sous-Commission A so rTunira le lundi 9 fTvrier a 10 h.30 et non
a 15 heures . |
GATT Library | zw366mt5323 | Corrigendum to Draft Report of Sub-Committee A (Articles 16, 17, 18, 19) | United Nations Conference on Trade and Employment, February 14, 1948 | Third Committee: Commercial Policy | 14/02/1948 | official documents | E/CONF.2/C.3/A/W.52/Corr.1, E/CONF.2/C.3/A/W.40-55, and C.3/A/WHITE PAPERS | https://exhibits.stanford.edu/gatt/catalog/zw366mt5323 | zw366mt5323_90190483.xml | GATT_145 | 230 | 1,650 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF. 2 /C .3 /A/
CONFERENCE CONFERENCE W.52/Corr.1
ON DU 14 February 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
CORRIGENDUM TO DRAFT REPORT OF SUB -COMMITTEE A
(ARTICLES 16, 17, 18, 19)
On page 21 after the word "products" in the second line add within the
square brackets, the following:
....which are not similarly taxed; existing Internal taxes of this
kind shall be subject to negotiation for their reduction or
elimination in the manner provided for in respect of tariffs and
preferences under Article 17.]
on page 21 insert between paragraphs 4 and 5 the following:
[3. In applying the principles of paragraph 2 of this Article to
internal quantitative regulations relating to the mixture, processing
or use of products in specified amounts or proportions, the Members
shall observe the following provisions:
(a) no regulations shall be made which, formally or in effect,
require that any specified amount or proportion of the product
in respect of which such regulations are applied must be supplied
from domestic sources;
(b) no Member shall, formally or in effect, restrict the mixing,
processing or use of a product of which there is no substantial
domestic production with a view to affording protection to the
domestic production of a directly competitive or substitutable
product.]
and delete the [3] before paragraph 5. |
GATT Library | zv294pg3576 | Corrigendum to Draft Revision of Article 42 | United Nations Conference on Trade and Employment, February 4, 1948 | Joint Sub-Committee of Committees II and III on Tariff Preferences and Joint Sub-Committee of Committees II and III: Tariff Preferences | 04/02/1948 | official documents | E/CONF.2/C.23/A/13/Corr.1, E/CONF.2/C.23/A/1-15, and C.26/A/1-24 | https://exhibits.stanford.edu/gatt/catalog/zv294pg3576 | zv294pg3576_90180404.xml | GATT_145 | 116 | 818 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFRENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E/CONF.2/C. 2&3/A/
13 /Corr. 1.
4 February 1948
ENGLISH - FRENCH
ORIGINAL: ENGLISH
SECOND AND THIRD COMMITTEES
JOINT SUB-COMMITTEE ON TARIFF PREFERENCES
CORRIGENDUM TO DRAFT ' EVISION OF ARTICLE 42
Document E/CONF.2/C.2&3/A/13 - Draft Revision of Article 42 - should
be considered as RESTRICTED, not UNRESTRICTED as stated in the symbol.
DEUXIEME ET TROISIEME: COMMISSIONS
SOUS-COMMISSION MIXTE CHARGEE D'EXAMINER LES PREFERENCES TARIFAIRES
RECTIFICATIF AU PROJET DE REVISION DE L'.ARTICLE 42
Le document E/CONF.2/C.2 & 3/A/13 - Projet de revision de l'article 42 -
doit Otre considTrT comme document RESTRICTED et non comme UNRESTRICTED,
ainsi qu'il est indiqué dans la cote. |
GATT Library | cp557hx5663 | Corrigendum to interim report of Sub-Committee J on Articles 95, 96, 98, 99 add 100 | United Nations Conference on Trade and Employment, January 27, 1948 | Sixth Committee: Organization | 27/01/1948 | official documents | E/CONF.2/C.6/48/Corr.1 and E/CONF.2/C.6/44-75 | https://exhibits.stanford.edu/gatt/catalog/cp557hx5663 | cp557hx5663_90170102.xml | GATT_145 | 133 | 869 | United Nations
CONFERENCE
ON
TRADE AND CMPLOYMENT
Nations Unies
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E /CONF. 2/C. 6/48/
Corr.1
27 January 1948
ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
CORRIGENDUM TO INTERIM REPORT OF SUB-COMMITTEE J ON
ARTICLES 95, 96, 98, 99 ADD 100
The second paragraph relating to Article 99, mn page 4, should read:
"The delegate of Mexico stated that since several countries
might encounter difficulties of a constitutional character for
acceptance of the Charter, which was not in Spanish, he reserved the
right to raise the same arguments which have been expounded in the
Sub-Committee against his amendment, particularly in regard to
proposed amendments to Article 92, and also reserved his right to
introduce a new amendment to Article 99, paragraph 3, when this
Article comes up for discussion in Committee VI." |
GATT Library | hg920np0129 | Corrigendum to note by the President. Amendment to rules of procedure | United Nations Conference on Trade and Employment, January 10, 1948 | 10/01/1948 | official documents | E/CONF.2/2/Rev.4/Add.2/Corr.1 and E/CONF.2/1-8 | https://exhibits.stanford.edu/gatt/catalog/hg920np0129 | hg920np0129_90040012.xml | GATT_145 | 0 | 0 | ||
GATT Library | yp966gj0475 | Corrigendum to note by the President. Amendment to rules of procedure | United Nations Conference on Trade and Employment, January 10, 1948 | 10/01/1948 | official documents | E/CONF.2/2/Rev.4/Add.2/Corr.1 and E/CONF.2/1-8 | https://exhibits.stanford.edu/gatt/catalog/yp966gj0475 | yp966gj0475_90040012.xml | GATT_145 | 86 | 549 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
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CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E/CONF. 2/2/Rev. 4/
Add. 2/Corr. 1
10 January 1948
ENGLISH -FRENCH
ORIGINAL: ENGLISH
CORRIGENDUM TO NOTE BY THE PRESIDENT
AMENDMENT TO RULES OF PROCEDURE
Line 5:
In place of "following sub-committee . . ." read "following ad hoo
committee . . . " .
CORRIGENDUM A LA NOTE DU PRESIDENT
AMENDMENT AU REGLEMENT INTERIEOR
Remplacer, au début de la 5ème ligne les mots "la Sous-Commission" par
"le Comité ad hoc". |
|
GATT Library | hf623nb1417 | Corrigendum to notes of Eleventh Meeting | United Nations Conference on Trade and Employment, March 10, 1948 | Joint Sub-Committee of Committees II and III: Tariff Preferences | 10/03/1948 | official documents | E/CONF.2/C.23/A/W.11/Corr.1, E/CONF.2/C.2/D/W.1-3, C.23/A/W.1-3, and C.26/A/W.1-29 | https://exhibits.stanford.edu/gatt/catalog/hf623nb1417 | hf623nb1417_90180351.xml | GATT_145 | 244 | 1,707 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF. 2/C. 2&3/A/
ON DU W.11/Corr.1
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 10 March 1948
ORIGINAL:ENGLISH
JOINT SUB-COMMITTEES OF COMMITTEES II AND III ON TARIEF PREFERENCES
CORRIGENDUM TO NOTES OF ELEVENTH MEETING
1. Under the sub-heading "Paragraph 4, Preamble" on page 1, the
last sentence of the first paragraph and the second paragraph should
read as follows:
"The delegates for Argentina, Chile, Poland and Syria wished
it put on record that in their view no final decision should be
taken on this point until a definitive text of Article 93 was
available, and the delegate for Argentina reserved his position.
The delegate for Argentina also reserved his position in
regard to the powers of the Organization specified on the Article
as a whole."
2. On page 2, the paragraph header "sub-paragraph (d)" should read
as follows:
"Sub-paragraph (d)
The delegate for Poland introduced his amendment
(document E/CONF.2/50), but explained that, in view of the
agreement by Heads of Delegations, he did not expect it to
be approved; in order to save time, therefore, he would not
press it if the delegations of the United Kingdom and the
United States could not accept it.W The amendment as not
accepted. A proposal by the delegate of Argentina to
substitute the text most recently discussed by the Working
Party was also not accepted. The text of the Co-ordinating
Committee was then approved. The delegate for Argentina
reserved his position." |
GATT Library | wt691hm7710 | Corrigendum to notes of Meeting : Held Monday, 29 December 1947, 4.00 p.m | United Nations Conference on Trade and Employment, January 2, 1948 | Third Committee: Commercial Policy and Sub-Committee D (Articles 40, 41 and 43) | 02/01/1948 | official documents | E/CONF.2/C.3/D/W.2/Corr.1 and E/CONF.2/C.3/D/W/1-13/E/CONF.2/C.3/E/W/1-23 | https://exhibits.stanford.edu/gatt/catalog/wt691hm7710 | wt691hm7710_90190521.xml | GATT_145 | 106 | 694 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLO1
RESTRICTED
E/CONF. 2/C . 3/D/W. 2/
Corr.1
2 January 1948
ENGLISH - FRENCH
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE D (ARTICLES 40, 41 AND 43)
CORRIGENDUM TO NOTES OF MEETING
Held Monday, 29 December 1947, 4.00 p.m.
The title of this document should be changed to read:
NOTES ON FIRST MEETING
TROISIENE COMMISSION: POLITIQUE COMMERCIALE
SOUS-COMMISSION D (Articles 40, 41 et 43)
CORRIGENDUM AUX NOTES SUR LA SEANCE
tenue le lundi 29 decambre 1947 a 16 heures
Remplacer le titre de ce document par 1'indication
NOTES SUR LA PREMLERE SEANCE. |
GATT Library | gv832rh1506 | Corrigendum to notes of Seventeenth Meeting : 9 January 1948, 10.30 a.m | United Nations Conference on Trade and Employment, January 14, 1948 | Third Committee: Commercial Policy and Third Committee: Commercial Policy Sub-Committee A (Articles 16, 17, 18, 19) | 14/01/1948 | official documents | E/CONF.2/C.3/A/W.29/Corr.1 and E/CONF.2/C.3/A/W.1-39 | https://exhibits.stanford.edu/gatt/catalog/gv832rh1506 | gv832rh1506_90190452.xml | GATT_145 | 109 | 756 | United Nations
CONFERENCE
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
RESTRICTED
. E/CONF. 2/C.3/A /,
W.29/Corr. 1
14 January 1948
ENGLISH - FRENCH
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE A (ARTICLES 16, 17, 18, 19)
CORRIGENDUM TO NOTES OF SEVENTEENTH MEETING
9 January 1948, 10.30 a.m.
On page 3, final paragraph, delete the word "quota" before the
word "preferences".
TROISIEME COMMISSION POLITIQUE COMMERCIALE
SOUS-COMMISSION A (ARTICLE ??, 17, 18, 19)
RECTIFICATIF AUX NOTES DE LA ?? SEANCE
tenue l? 9 Janvier 1948, a 10 h. 30
:?? leIdoruler ferragraph de la page 4, suprie WlLsa?pa*3e 4, eilr-mer 1'ie uots
"en aprFs meteesa coTnTrentin".gents" amzbst"p6fX3n. |
GATT Library | rj558nt6386 | Corrigendum to notes of Seventh Meeting | United Nations Conference on Trade and Employment, January 26, 1948 | Second Committee: Economic Development and Sub-Committee B (Article 12) | 26/01/1948 | official documents | E/CONF.2/C.2/B/W.14/Corr.1, E/CONF.2/C.2/B/W.1-14, and C.2/C/W.1-13 | https://exhibits.stanford.edu/gatt/catalog/rj558nt6386 | rj558nt6386_90180317.xml | GATT_145 | 5,649 | 38,217 | United Nations Nations Unies
RESTRICTED
CONFERENCE CONFERENCE E/CONF. 2/C. 2/B/W. 14/
ON DU Corr.1
26 J 1948 26 January 1948
AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ENGLISH - FRENCH
ORIGINAL: ENGLISH
SECOND COMMITTEE: ECONOMIC DEVELOPMENT
SUB-COMMITTEE B ON ARTICLE 12
CORRIGENDUM TO NOTES OF SEVENTH MEETlNG
Chairman: Mr. J. GARRIDO TORRES (Brazil)
The third paragraph of the Notes of the Seventh Meeting should read as
follows:
"This suggestion was supported by three delegates and opposed by
two. The proponents of the change indicated that they would not insist
on it in the interest of achieving unanimity. It was, therefore, decided
to include sub-paragraph (a) of paragrah 2 in the form first recommended
by the delegates of Australia, New Zealand and Sweden".
DEUXIEME COMMISSION : DEVELOPPEMENT ECONOMIQUE
SOUS-COMMISSION B CHARGEE DE L'EXAMEN DE L'ARTICLE 12
RECTIFICATIF AUX NOTES DE LA SEPTIEME SEANCE
PrTsident M J. GARRITDO TORRES (BrTsTi)l
Le troisFmei paragraphe des notes de la septFmei TFnace doit être
TdirTgc omme sui:t
"Trois repTTrsentants appuient la proposition et d?ux s'yTcl larent
hostiles Les auteurs de la propositionTcl darent que deans un sdosein
d'unanimeit, ils n'insisteront pas. En coTnsquence, la Sous-Commission
dide de reprendreT l'alinTaT a) du paragraphe 2 sous la formeT roposTsT
pr a r lTlTguTeede l'Australie, de laZTovde-ZTlendVace dTe de SuFde."O.' SUB-COMMITTEE 3 OF THE FIRST COMMITTEE
(Terms of Reference in Document E/CONF.2/C.1/8/Add.1)
Agenda and Informal Notes by the Secretariat
1. Form of Records (Rule 44)
2. Discussion of the Subject Matter of the referred to the
Sub-Committee
The various proposed amendments would appear to raise the following
main points (see documents E/CONF.2/C.1/7 with Addendum 2 and
Corrigendum1):
(a) Should the reference to "international trade" at the end of
paragraph 1 of Article 2. in connection with the relation
between the avoidence of unemployment or underemployment and
the Charter be deleted?
The delegation of Horico proposes the deletion of the words
"Including the expansion of international trade, and thus
for the well-being of all other countries".
(b) Should the avoidance or unemployment or underemployment be
(as proposed by Peru) dependent on domestic measurement
(c) In connection with converted action to avoid unemployment or
underemployment should there be a reference specifically to
"international investment"
The delegation of Peru proposes the insertion of the words
"and in particular by international investment".
(d) Should matters relating to the international migration of labour
The delegation of Italy proposes a provision suggesting the
promotion of such migration through international
co-ordination of employment services in co-operation with the
International Labour Organization. (Proposed new paragraph 3
of Article 2)
The delegation of Mexico proposes a provision for encouraging
legal migration and discouraging or panalising the employment
of illegal except in the cacse of politial refugees
and like persons. (Proposed new paragraph 3 of Article 3).
(a) Should measures be '"appropriate to" or "consistent with" Members'
political, economic and social institutions?
The delegation of Mexico proposes substitution of "consistent
with" for "apporopriate to" (Article 3, paragraph 2).
(f) should the Chapter contain provisions regarding the desirebility of
prics s and allowing tabilisatoitionsla and maintain measuhieve .ud. . -t5an
mendments for this purpose The eoeeatif Wway opossecetfor biu"ps
C.1/7in ACtNl C3/71 (./:C.,.' anArc 7.2/c.t
1209 (g) Concerning the avoidance of measures creating balance-of-payments
difficulties for others (last in Article 3, paragraph 2):
(i) should this be attempted "principally by eans of
international co-operation" as suggested by the
delegation of ltaly
(ii) should the centence be removed to Article 5 as suggested
by the U.S. representative during the Committes dis.cussion
(iii) should the entire sentence be deleted on suggested by the
delegation of the Philippinee
erning t(h) he removapersisteantl of or widespread balance-of-
(I) is specific provision required in this chapter to allow
the Organization to make representations to the Member
with the persistent adjustment as suggested by the
delegation of Denmark
(II) should thOe rganization use the regulating machinery
provided by the Charter for the purpose of marketing
et satisfactory prices the surplus commodities of the
countries with balance-of-payment difficulties as
suggested by the delegation of Peru (see E/CONF.2/C.1/7/
Corr.1)?
(i) To the provision for consultation with a view to concerted action
(Article 6, paragraph 1 (b) should prdovie be added protecting
the rights already required by workers
The delegation of Mexico has made a proposal to this effect.
These points night be discussed separately in the order indicated above,
or the amendments themselves might be discussed in the order in which they
appear in E/CONF.2/C.1/7 (with Addendum1 and Corrigendum 1). First MeeMing, Held in Coference Room ait Capitolio,Havana
TheoSub-Committee discussed the points raised by the various amendments to
Chapter IX (encluding those relating to Article 4) in the order indicated in the
informal Secretariat notes and reached conclusions on the following points:
Point (a)
The representative of Mexico withdrew the proposal for deleting the
reference to "international trade".
Point (d)
The proposals of the delegations of Italy and Mexico were not approved by
Concerning the proposal of the delegation of Italy, the Sub-Committee
suggested that, in connection with the proposed Resolution on employment,
consideration might be given to the desirability of drawing the attention of the
and Social Council to the importance of the international mobility of
labour and of an international co-ordination of employment services for
this purpoes.
the proposal of the delegation of Mexico the view was
that particular situations of the sort referred to should be the subject of
bilateral agreements and that the more general question of the treatment of
grant workers, if it were to be dealt with in the Charter at all, might be
considered in connection with Article 4. The representative of the delegation of
Mexico recorved the right of his delegation to raise the question again in the
full Committee.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~; .
at thegenerhal leDrafting Committee a at 1to th te 'apl
ds "appropriate iate to" or "consistent with".*M"tn vb~ lb tbo vod
Po (:I) - [ :
reSmInlatwiIhve obdhe p roposal to includehe wordsra p opo o 6
o-operation".yof internatol iu4YpLly On". io '
g), sub-paragraph (iii)on (b .
with the re phresenative of6absentvtse Philippines ).athe0 roma
t thgeeinsuges be dtion thhli aaseitence naeehta e d
.*
cd took plhe fpoints:
r of the last sentencecfor the a entnce or the dasfro
hough several pr Article n s ch2en3ttough s ILoLse
3 -2-
indicated tentative support for the proposal, detailed discussion was deferred
until the next meeting.
Point (h), sub-paragraph (i)
After a brief preliminary discussion in which the concensus appeared to be
that the proposal was inadvisable and unnecessary, discussion was deferred until
the next meeting when the representative of Denmark could be present.
Concerning the provide explicitly protecting rights already required by
, three suggestions, in addition to the original proposal of the delegation
of Mexico, were and left for further consideration at the next meeting:
(1) that paragraph 1 (b) of Article 6 be revised to read:
"For consultation with a view to the concerted action [on the part
of governments and inter-governmental organisations in the field of
unemployment policies] referred to in Article 2".
(2) that, in addition to removing Article 4 to a position at the end of
the entire Chapter, paragraph 1 (b) of Article 6 be redrafted to read:
"For consultation with a view to concerted action on the part of
governments and inter-governmental organizations in [the field of
employment policies] order to promote employment and economic
activity."
(3) that the substance of the original proposal of the delegation of
Mexico be inserted after paragraph 2 rather than after paragraph 1(b).
The Sub-Committee deferred until the next meeting the consideration of the
following points in order that the representative of Peru might be present:
Point (b)
Point (h), sub-paragraph (ii)
The Sub-Committee also deferred until the end of its egenda, for consideration
in connection with Article 7, the proposals of the delegation of Norway relating
to Articles 3 and 7, identified as Point (f).
/ANNEX A ANNEX A
Secretariat Note on the Proposal of the Representative of the
United States for the Disposition of the last contence in
Paragraph 2 of Article 3 and Related Matters
1. The representative of the United States would remove the article on "Fair
Labour Standards" (Article 4) from its present position to a position at the end
of the Chapter and would number it "Article 7". As a consequence, present
Article 5 would be numbered Article 4, present Article 6 would be numbered 5; and
present Article 7 would be numbered 6.
2. The last sentence of paragraph 2 of Article 3 would be transferred from that
article to the one immediately following in the form indicated below.
3. The title of present Article 5, which would than be numbered 4, would be
changed from "Removal of within the Balance of Payments" to
"Avoidance of Balance of Payments Difficulties", and the text of the article would
read as follows:
( In carrying out the provisions of Article 3 Members shall seek to
avoid measures which would have the effect of creating balance of payments
difficulties for other countries.
(2).In the event that a persistent maladjustment ... (continue as in
paragraph1 of the present Article 5) ... towards correcting the situation.
Such corrective action shall be taken with due regard to the
of employing methods which expand rather than contract international trade." SUB-COMMITTEE B OF THE FIRST COMMITTEE THIRD MEETING
Held in Conference Room K, Capitolio,Havana at 10.30 a.m., 13 December 1947
The Sub-Committee discussed the following points listed in the informal
Secratariat notes:
Point (b)
On the questionof choosing between the word. "Primarily" and "partly"
in paragraph 2 of Article 2 it appeared that the difficulty related more
to the meaning of "domestic measures" than to the use of the word "primarily".
Accordingly, the Sub-Committee agreed to amend the first part of the
to read:
"The Members recognize that, while action for the avoidance of
unemployment or under-employment must depend primarily on [domestic]
measures taken by individual countries, such measures ....".
The representative of Para indicated that this drafting was satisfactory
to him.
Point (i)
The representative of Norway explained that the amendments proposed by
his delegation to Articles 3 and 7 were intended to deal with the problems
of inflationary pressure by either requiring all Members to undertake
obligation to maintain price stability or, failing that, by allowing any
Member to adopt measures necessary to achieve internal price stability despite
inflation abroad. If the problem of inflation were not to be dealt with in some
such manner as suggested, it would be difficult for any Member to carry out
its obligation to maintain a high level of employment.
observed that Paragraph II of Article 43 applied, at least in the
first instance, only to a transition period and that the sort of measures
which he had in mind should be available to Members more
mentioned as an example the attempt to achieve price stability through
subsidies applied to normalise the price locally of imports at
relatively inflated prices. While such subsidies might themselves be permissible,
he was not certain that the means of financing than would be consistent with
the provisions of the Charter - particularly of Article 18 - after the interin
period, it was that the subsidies would be
taxes levied on such products when imported at lower prices (whether the low
price resulted from the fact that purchases were made from relatively low-price
sources or that purchases were during a period of generally low prices)
without an equivalent tax necessarily being imposed on like domestic products.
After come discussion the representative of Norway indicated that he would
not press the proposed to Article 3 but would maintain the proposal
to cover in the Chapter the point raised by the
in Article 7.
/The Chairman~~~~'m
K The Chairman observed that there were four issues involved:
(1) Whether it would be to locally at a single price
a commodity which had been imported from different at various
prices. and thus affect the competitive position of these various
sources in the domestic market.The Chairman suggested that this point
might be discussed in connection with the Subcidies of Chapter IV.
(2) Whether the of subsidies to achieve a single price for a
commodity in the domestic market was under the Charter.
This point also, the Chairman thought, should be discussed in connection
with the question of Subsidies.
(3) Whether the technique of financing such subsidies through an
import tax related inversely to the import price if unaccompanied by a
tax on similar domestic products was permissible under the
Charter. The Chairman suggested that this point should be discussed in
connection with Article 18. The representative of Norway expressed the
view that such a technique would probably be regarded as consistent with
the present text of Article 18 only if the provisions of that Article
were understood to apply to a period of time rather than to an instant
of time. The representative of that the difficulty might
be avoided if the problem arose only in connection with items on which
the tariff rate was unbound, since in such cases the customs tariff could
be adjusted with the same revenue effect as the import tax and without
running counter to Article 18.
(4) Whether, in order to provide a basis for any necessary amendments
of articles relating to the technique, some expression should be given
in Chapter II to the general principle that regard should be bad to the
need of Members to "control prices in the home market and thereby prevent
a harmful inflationary development (or thereby protect their economies
against inflationary pressure from abroad)" . The representative of
Australia questioned the need for the provision suggested in the
Norwegian amendment since, to his mind, a Member should be able to
establish under Articles 89 and 90 a case for the measures required if
the inflationary pressure was willifying or any objective of
the Charter. The representative of the United States agreed with the
representative of Australia and expressed the view that Article 43
seemed to cover the position, at least until 1951, and that subsequently
(and on the basis of experience up to 1951) the Member would have recourse
under Articles 89 and 90 if the situation warranted.
The representative of India referred to the interest which his
delegation had taken during the Geneva meetings in another aspect of the
effects of inflation when it had expressed concern at the cosequences
for the domestic supply position resulting from the pull of external
demand created by inflation abroad. He would be agreeable to the
inclusion of some general provision in Chapter II.
The representative of France thought that a of the
/general principle -3-
general principle might appear in Chapter II but preferred. that it
take the form of a separate articIe rather a part of Article 7;
furthermore, he was of the view that the application of the pricniple
might be confined to essential goods and that there might be provision
for closer supervision by the Organizstion ...
The ereptative rsenMe,xico Parda an th oUunitdf,e iteed titedh Un Kingdom also
eexedprss the view tshma t oerencefere to the problem might appear
hgaptr II. .
There was general amengrent thwiat, thout coany mmitment as to the
copance of any term, a smal gllcrp shoul asdehmpt to draft the sort
of provision which might appear in Chapter II if mention were to be
made of the point in that Chapter. It was considered that other aspects
of the question (which might arise under Articles 18, 20, 25-29, 43,
89, 90) could only be discussed in other committee.steesa.
Point (h)
Cacring the amendpmernposet s _reay Peru relating to the disposal of
surpluses daring periods loncf bfaaae-eo-pymnts dulliff, it ctieswas,it
llery agr teedall~t this problem relatosely to edo lyc o the subject of
Arti.ec,le 52 (ccimulation of . urdetrhe uostocksticjsnc o benme ursasw tnock") aid that the
courseson ofon acti open to the Oronnizatsiand it members in such
circumstances under the present draft are indicated in Article 55 (and
the other articles of Chapter VI)e, Articl 69, etc. sThomeres wgestionha se u
that thoposed aae case prreferred to vin thmere pmendmepose a mivht bem recoered o
ly a-qance-of-pa te3~s difficultiesrr ing inuapte tnoe balpayetc-a c dies
as amnog the factors to be actione taken intonaccout in determining thocti
requiredpn resSub-Cectittee felktof a particomur cmodity, but theomm Sub-te flt
that the"burdensome" erm already included this aspect. Accordingly, it
ntwavisionaIlly agreedo pronoit to ue the menamiendtterI an,
the rephe resentative ofudertok Periscussud the mtter with
hisan eleg.
Theea folloig poeins rmin tou be rdiscuussed :"frthe
(Point f)
Afteir the norrmal group has pepared a dratt of the general principle
which migt be st IIated in ChIpter relating to the Norwegian proposal.
rap[gPioint S-paragubrap (i)
uePervian representative mightin report wheof ithr I te lofit eth
sdoniscommui en the omb-Cette he is agreeviewoable with vbe si the
oitteSub-C tisionhasionoprothe sort suggei sitstew d snceow nct nesy.
Ponit i( h)sanow bene ealdtw ith bythe Sub-Committee considering
rticle K COMMITTEE I
Sub-Committee B
Note by Miss Fisher (United Kingdom)
For the consideration of the small group of Sub-Committee B
of Committee I, which is considering possible draft provisions
in Chapter II to meet the point raised by the Norwegian
amendment to Article 7, I venture to suggest tentatively
the following alternative forms of words:-
Either
Article 7
(1) To delete the words following "to safeguard their economies"
and to substitute:-
"against pressures liable to arise in the event of
serious or abrupt variations in the effective demand
of other countries"
or
(2) Article 2
After "demand for goods and services" to insert:-
"and the avoidance of wide fluctuations in the
general price level". Article 5(formerly Article 6) - of Information and Consultation
Add a new sub-paragraph (b) in paragraph 1, as follows:
(b) for studies relating to international aspects of population
and employment problems.
Change present sub-paragraph (b) to (c).
PREMIERE COMMISSION EMPLOI ET ACTIVITE ECONOMIQUE
PROPOSITION PRESENTEE PAR LA
(E/CONF.2/C.1/10, SOUS-COMMISSION "B")
Article 5 (ancien article 6) Echange de et consultation
InsTrer aprTs l'alinTa a) du paragraphs l de l'article 5 (article 6 du
texte de GenFva), le nouvel alinTa b)lvuant s
b) Pour procTder a des Ttydes ?er .erel auxaur s uaspecs intnenaltiorx des'
FmssOppo propu et de telatloi.il'empat ei. FIRST COMMITTEE: EMPLOYMENT AND ECONOMIC ACTIVITY
SUB-COMMITTEE B
TEXT OF CHAPTER II, AS OF 15 DECEMBER 1947
Article 2 - Importance of Employment, Production and Demand in Relation to the
Purpose of this Chaptere this baMUTe
r recognise thga the avoidance of eit e1. teNmployment or undeployment,ce of eielomt n
o maintenaenc in eachgegh te moaiuseful kntenance iachivecontrynt unf luployme Gof Usu w
ppto work and oif alarge and steadilydb karoroif a nities for' tolsableanawgand stemdI,
or goods and services, is not grng c iono np rodaitctm aad ffIveemndsXor goodeices In nt
realization concern alo Gcaim ia asoecessary nonoieiowarnfeliza iesllato
al purpothnCchpter,aechaptecga Semal h obijectvsretinfawthc tale 1ofhCisrtar
foncludiwng--being of allexp nsthe eioinnon of lrade, and us for fthe w
otPr omtis.
2. Theida cMeofmbers recogne th under-awt hile the advoia unemploymentof or
lyment mustke depend pvidualrimarilyeeg f doc tacan by infikualn
ucph meas"ees shd betp lemented byder cnceted action unmes the
of the Economic and Social Council of the United Nations in
collaboration with the appropriate inter-governmental organization, each of these
bodies acting within its respective and consistently with the terms and
purposes of its basic instrument.
3. The Members recognise that the regular exchange of information and views
among Members is indispenssable for successful co-operation in the fieId of
employment and economic activity and should be facilitated by the Organization.
Article 3 - Maintenance of Domestic Employment
1. Each Member shall take action designed to achieve and maintain full and
productive employment and large and steadily growing demand within its own
territory through measures appropriate to its political, economic and social
The Central Drafting Committee is to be asked to consider whether it should be
"appropriate to" or "consistent with".
/2. Measustainsures to ontain
. '. .' ''' -2-
2. Measures to sustain employment, production and demand shall be consistent
with the other objectives and provisions of this Charter. Members shall seek
to avoid measures which would have the effect of creating balance-of-payments
difficulties for other countries.
Article 4 - Removal of Maladjustments Within the Balance of Payments
1. In the event that a persistent maladjustment within a Member's balance of
payments is a major factor in a situation in which other Members are involved
in balance-of-payments difficulties which handicap then in carrying out the
provisions of Article 3 without resort to trade restrictions, the Member shall
make its full contribution, while appropriate action shall be taken by the other
Members concerned, towards correcting the situation.
2. Action in accordance with this Article shall be taken with due regard to the
desirability of employing methods which expand rather than contract international
trade.
Article 5 - Exchange of Information and Consultation
1. The Members and the Organization shall participate in arrangements made or
sponsored by the Economic and Social Council of the United Nations, including
arrangements with appropriate inter-governmental organization:
(a) for the systematic collection, analysis and exchange of information
on domestic employment problems, trends and policies, including as far as
possible information relating to national income, demand and the balance
of payments;
(b) for consultation with a view to concerted action on the part of
governements and inter-governmental organizations in [the field of
employment policies] order to promote employment and economic activity.
2. The Organization shall, if it considers that the urgency of the situation so
requires, initiate consultations among Members with a view to their taking
appropriate measures against the international spread of a decline in employment,
production or demand.
Article 6 - Safeguards for Members Subject to External Deflationary Pressure
The Organization shall have regard. in the exercise of its functions under
other provisions of this Charter, to the need of Members to take action within
.the provisions of this Charter to safeguard the economies against deflationary
pressure in the event of a serious or abrupt decline in the effective demand of
other countries.
/[Article] [Safeguards -3-
of The organisation shall duly take into account the need of
Article 7 - Fair Labour Standards
- - - - ----- - - -
tracSvT dte
ig= FIRST COMMITTEE: EMPLOYMENT AND ECONOMIC ACTIVITY
REPORT OF SUB-COMMITTEE B (ARTICLES OF CHAPTER II
1. At the sixth meeting of the First Committee, 8 December 1947, the Chairman
appointed a Sub-Committee which was instructed to remain and prepare
relating to all Articles of Chapter II with the exception of Article IV, together
with all relevant amendments proposed (see E/CONF.2/C.1/8/Add.1).
2. Representatives of the following delegations were appointed Members of the
Sub-Committee: Australia, Canada, France, India, Italy, Lebanon, Norway, Mexico,
Peru, Philippines, United Kingdom, United States of America.
3. M. J. RO ER (France) served as Chairman of the Sub-Committee.
4. The representative of the delegation of Document attended the meeting of the
Sub-Committee when the proposal originating with that delegation under
discussion. The Sub-Committee also had the benefit of expert advice from the
reprFsentatives of the International Labour Organization and the International
Monetary Fund.
5. In the course of its deliberations the Sub-Committee examined the proposals
appearing in the following documents relating to the Articles indicated:
Article 2
E/CONF.2/11/Add.4 (Peru)
E/CONF.2/11/Add.18 (Italy)
E/CONF.2/11/Add.28 (Mexico)
Article 3
E/CONF.2/11/Add.18 (Italy)
E/CONF.2/11/Add.28 (Mexico
E/CONF.2/C.1/3/Add.4 (PhiIippines)
E/CONF.2/C .1/3/Add.7 (Norway)
Article 4 (Formerly Article 5)
E/CONF.2/11/Add.32 and E/CONF.2/C.1/7/Corr.1 (Peru)
E /CONF.2/C.1/3/Add.6 (Denmark)
Article 5 (Formerly Article 6)
E/CONF.2/11/Add.31 (Mexico)
Article 6 (Formerly Article 7)
E/CONF.2/C.1/7/Add.2 (Norway) ( S
6. It we agreed that the amendment proposed to Article 5 by the 5atb the ofhe t p of ythe delegation cc
he of the right of workers should be trsafeguarding K eo, dg t° Wdti w t aferred d
mmittee to Sub cussed con nection with Article 4. Accordinglynd dicswe
ttmee Sfh-C tortingon this prd aennmamt.
/Th.Sbommittee-Cc
51 - ~~~~~~~~-2-
etings and agreed to recommend the eetings7. hgribowntmmende ld ivW anto reod the
pproval in respect of the zt o tie 'pl1t omiie fopecr I arprovl Inrezy~tc
ed specifically in the full committee,epcesers 0oare therei. On oheeredr pepontllys not the Praen
e full committee,bers, ttcetaft-msrs, atwed beloy,n oteatoaththmmio ful Coud
n respect of the versousi t lA v t have theseintss dseicusruaeoodIfar.Mmct of theis
ents table in mostvke gi olyUlro ped thlegins cerned were a ~ocn moast
asw either to vihdram teir p opoali aftr some,discussion, or to consider
their proposal as satisfactorily covered by the changes suggested in the present
text. Accordingly the comments of the Sub-Committee in this report are confined.
to onIy certain of the amendments proposed earlier.
8. The Sub-Committee agreed with a suggestion by the representative of the
United States of America that, in order to secure continuity in the balance of
payments provisions, it would be desirable to move the Article on fair labour
standards from its earlier position as Article 4 to a position at the end of the
Chapter.
9. The Sub-Committee discussed the proposal presented by the delegation of
Italy (E/CONF.2/11/Add.18) for the inclusion of a provision for international
co-ordination of employment services with a view for facilitating the migration
of labour where desirable. In the course of the discussion information was
sutpplied concerning the activities of the Permanen Migration Committee in this
field. It was the view of the Sub-Committee that the question of the
international movement of labour was only one aspect, although an important
of the general question of international action to assist in securing high levels
of employment and that if mention were to be made of this aspect references to
other aspects would also have to be included at some length. It was the view
of the Sub-Committee that it was unnecessary to include in Chapter II any
specific reference to this particular aspect of the question since the present
language of the Chapter included all the various aspects. The Sub-Committee
considered that in connection with the proposed Resolution on Employment
(see E/CONF.2/C.1/7 and E/CONF.2/5), consideration might be given to the
desirability of drawing the attention of the Economic and Social Council to the
importance of the international mobility of labour and of securing an
international co-ordination of employment services for this purpose.
10. The Sub-Committee considered the proposal by the delegation of Mexicoio
CONF( ndd./8L)andcconcludednerngosche teaterme migrant work fn m cncclmded
that prtheauisclar siiuatins oofthe sor referred to tin t dicuon of theso
ent shouand ldaubmaU ho subeof specia agreementsl culd notapprpriatelyowiay
nal trade be Includtheed Referencen hr oif annantnaeatiol orgisation. trareceRefen
tional Labour Organization mades o to therk wot9enongycmbt he eInantaratonl Lrg Oraanzantio
eatmentand Migrationthomtee en Co genalthe questioon f thee tmenrat
/o mr -3-
of workers. The representative of the delegation of Mexico reserved
the right of his delegation to raise the question again in the full Committee.
11. Concerning the proposal by the delegation of Denmark (E/CONF.2/C.1/3/Add.6)
relating to the initiative of the Organization in the event of Members
experiencing balance-of-payments difficulties, the Sub-Committee was of the view
that, even if the particular case were not of sufficient urgency to come under
paragraph 2 of Article 5 (formerly Article 6), the Member would be permitted
under Article 89 and 90 to make representation to other Members and to the
Organization and that if such representations were made to the Organization it
was already empovered under the present text of the Charter to consult with, and
make recommendations to, any or all Members. Accordingly the Sub-Committee felt
that the inclusion of a special reference to the initiative of the Organization
in connection with this Article was not required and that the insertion of such
a reference might appear to cast doubt on the Organizations right of initiative
in connection with other Articles if that right were not also specially mentioned
in such cases.
12. The Sub-Committee discussed the proposal of the delegation of Peru
(E/CONF.2/C.1./7/Corr.1) regarding the disposal of surpluses during periods of
widespread balance-of-payments difficulties. It was generally agreed that this
problem related closely to the provisions of Chapter VI and that the courses of
action contemplated by the representative of Peru were already provided for, so
for as feasible, in Article 55 (and the other Articles of Chapter VI) and
Articles 69, 74, etc. Accordingly the Sub-Committee decided not to recommend
the inclusion of any provision on this subject in Chapter II. The representative
of Peru indicated that his delegation reserved its position pending discussion
in the full Committee.
43. The Sub-Committee discussed at some length the proposals by the delegation
of Norway concerning price stabilisation and the prevention of inflationary
developments (E/CONF.2/C.1/3/Add.7 and E/CONF.2/C.1/7/Add.2). It was the general
view of the Sub-Committee that the proposals in their original form were not
accepted since it was felt that such provisions might have the effect of
reducing substantially the obligations, and corresponding benefits, envisaged
in the Charter. Some members thought that such provisions were unnecessary and
would be objectionable for the reason that they might appear to weaken the effect
of the present provision for safeguards against external deflationary pressure.
Other members, stile unable to accept the proposals in their original form, would
be prepared to seecome provision in the Chapter instructing the Organization
in the exercise of its functions to take account of the need of countries to
protect their against the effects of inflation elsewhere. Still other
members objected to any general provision in the present Chapter and suggested
that the problems arising from the various techniques of price stabilisatlon
should be discussed in connection with the relevant Articles, such as
/Article 18, 20, Articles 18, 20, 25 - 29, 43, 89 and 90. One member indicated that his delegation
could not accept the addition to Chapter II of any provision of this character
and that if the point were pressed, his delegation would be obliged, with regret,
to press for the deletion of Article 6 (formerly Article 7) concerning safeguards
against external deflationary pressure. In these circumstances the Sub-Committee
decided that the matter should be returned to the full Committee for further
consideration.
TEXT RECOMMEND BY SUB-COMMITTEE B OF THE FIRST COMMITTEE
EMPLOYMENT AND ECONOMIC ACTIVITY
Article 2 - Importance of Employment, Production and Demand in Relation to the
Purpose of this Chapter
1. The Members recognise that the avoidence of unemployment or under-employment
through the achievement and maintenance in each country of useful employment
opportunities for those able and willing to work and of a large and steadily
growing volume of production and effective demand for goods and services, is not
of domestic concern alone, but is also a necessary condition for the realisation
of the general purpose and the objectives set forth in Article 1 of this Charter,
including the expansion of international trade, and thus for the well-being of all
other countries.
2. The Members recognise that, while the avoidance of unemployment or under-
employment must depend primarily on [domestic] internal measures taken by
individual countries, such measures should be supplemented by concerted action
under the sponsorship of the Economic and Social Council of the United Nations in
collaboration with the appropriate inter-governmental organization, each of these
bodies acting within its respective sphere and consistently with the terms and
purposes of its basic instrument.
3. The Members recognise that the regular exchange of information and views
among Members is indispansable for successful co-operation in the field of
employment and economic activity and should be facilitated by the Organisation.
Article 3 - Maintenance of Domestic Employment
1. Each Member shall take action designed to achieve and maintain full and
promotive employment and large and steadily growing demand within its
territory through measures appropriate to its political, economic and social
The Sub-Committee recommends that the Central Drafting Committee be asked to
consider whether this expression should be "appropriate to" or "consistent
with".
/2. Measures to -5-
2. Measures to sustain employment, production prnactemand shall be consisten amd doend ehafl be coniatent
itprovisions of this hhar the oenberm shatbr oJecives emn vaion o Cbs.rs mbell seek
to avoffect id easeum-he:lalance-d baa methe ts of cratiea-of--payant
ntries.dties for other 0oustre
f MHalajustments Within the Balance of Payments- d l of )bja§ taho Bela f Znmts
in a Member's balance that a ersitont mladj3ai-Min a zmlance of
payments in a or fateoesr In asituation in which other Maborm einvolved
which in balance-o-mpiemtarryi diffioutics bzLb handicap t~h In ~nig out the
provisrade ions rof Aonrticle M3m withhout rzrt to twaest-iticm the Keer sall
mkpropriate action shall e I fuell contributions, vile p o-4com abal be takD by the other
'uation.nd, o~srdacorrectinghe iwtion.
2. s Action nsSalh aectakeoowrdance vith thiaArticleo.boW vth due regard to the
thods which gjpddesirability et eplrasoyinternationa;ling icb exand rather than t nt t l
trade.
ultationAJticlo 5 - _cbage, o mtnCocmultatio
1sha. Tarhebam aionnd tarrangements made orghe 0r izin dcll pxticta i ex'engmenade or
il o spohenani b the Ucoe an4 Socia Coui1Icl o Natis, including
inter-governmental ngganizations:eoto with appropriate oro Izsations:
ge( a). for te ionueatetlccleatio, aalysls ancl mebangofirmatIO
oliciet, iicst _oblei, trade end po liclae, Including f
ng to national income, demand mpossible info m i rooting , dcnd and the balance
of Pay
hvie(b) foconcerted actionr ltation %-Itdciw Cm-A tion on the part of
nmental organization in [ Iut=-Gover=Wetal o?-1nizate field of
rciespromote employment and economic activity.ii70ro~er to EM2ntnplq mmononde activiy..
re that the urgency of thatsituation sos2. ie OIIzatlan sball, it it considthe y of the situatim so
requires, nitiate consultations a Yanbem vithview to their taking
appriate employmentamrec agaImt the intenational aproad f decline in #W4lo2mt
production or demd.
Artflationirycle essur6 - Sad fo Ylabars bject to Etxtraleeftioa rmame
The Oatisn unctionssundhal 1mve rea-d, in excise of ito fmctiom Uder
other pmbe,ovi8on of thoisg wiohintCartae,t the need of Menber take actin i .;
the economiec sprioviideflationaryostthis Charter to eefegir amnamies agIt dUate
t of a werlolr or actbrt demanecline in the of
es.othewtrie '
0 _ _ - _ _ _ - _a d. |
GATT Library | pw322vm9138 | Corrigendum to Notes of the First Meeting | United Nations Conference on Trade and Employment, January 8, 1948 | Third Committee: Commercial Policy and Sub-Committee F (Articles 21, 23 and 24) | 08/01/1948 | official documents | E/CONF.2/C.3/F/W.1/Corr.1 and E/CONF.2/C.3/F/W.1-31/REV.2 | https://exhibits.stanford.edu/gatt/catalog/pw322vm9138 | pw322vm9138_90190560.xml | GATT_145 | 113 | 790 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
RESTRICTED
E/CONF.2/C.3/F/W.1/
Corr.1
8 January 1948
ENGLISH - FRENCH
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL C10T.": COUBCIAL POLICY
TSUB-COMMIEE F (ARICLES 21, 23, 214
CORRIGENHUM TO NOTES OF TEE FIRST MEETING
Amend paragraph 3 to read as follows:
"3. Items 27 and 32. The sense of the Sub-Committee was that the
proposals of Ceylon .........................." et seq.
IROISIEME CO2MI SIONM: POLITIQUEE COMSERCIALE
SOUS COMMISSION F (ARTICLES 21, 23 et 24)
RECTIFICA'LAAUI MEERES DA It PRE~aME SE^NCE
Modifier leoparagraphe 3 ccmme suit
"3. Points 27 et 32. L'avis general de la Soss-Commission eat
que la proposition de Ceylan, etc ...".............. |
GATT Library | ds147pb0167 | Corrigendum to notes of Thirtieth Meeting : 28 January 1948, 10.30 a.m | United Nations Conference on Trade and Employment, February 6, 1948 | Third Committee: Commercial Policy and Third Committee: Commercial Policy Sub-Committee A (Articles 16, 17, 18, 19) | 06/02/1948 | official documents | E/CONF.2/C.3/A/W.45/Corr.1, E/CONF.2/C.3/A/W.40-55, and C.3/A/WHITE PAPERS | https://exhibits.stanford.edu/gatt/catalog/ds147pb0167 | ds147pb0167_90190475.xml | GATT_145 | 186 | 1,385 | RESTRICTED
United Nations Nations Unies E/CONF.2/C.3/A/
W.45/Corr.1
CONFERENCE CONFERENCE 6 February 1948
ON DU ENGLISH - FRENCH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITEE A (ARTICLES 16, 17, 18, 19)
CORRIG1NDUM TO NOTES OF THIRTIETH MEETING
28 January 1948, 10.30 a.m.
Page 2, paragraph 2, item 2, should read as follows:
"2. It was not the Brazilian interpretation that the Geneva negotiations
were based on the assumption that countries were free to use production
subsidies, if such subsidies would have the effect of nullifying or
impairing tariff concessions."
TROlSIEME COMMISSION: POLITIQUE COMMERCIALE
SOUS-COMMISSION A (ARTICLES 16, 17, 18 ET 19)
RECTIFICATIF AUX NOTES DE LA TRENTIEME SEANCE
tenue le 28 janvier 1948, a 10 h.30
Le deuxiFme point de la declaration du reprTsentant du BrTsil, figurant
au paragraphe 2 de la page 3 doit? Otre rTdige comme suit:
"2.Le BrTsil ne pense pas que lesT negociations de GenFve soient fondTes sur
le principe de la libertT pour sle pays d'accorder des subventionas a produc-
tion, si ces subventions doivent avoir pour effet d'annuler ou de compromettre
des concessions tarifaires." |
GATT Library | vd350px5824 | Corrigendum to notes of Twelth Meeting | March 10, 1948 | Joint Sub-Committee of Committees II and III: Tariff Preferences | 10/03/1948 | official documents | E/CONF.2/C.23/A/W.12/Corr.1, E/CONF.2/C.2/D/W.1-3, C.23/A/W.1-3, and C.26/A/W.1-29 | https://exhibits.stanford.edu/gatt/catalog/vd350px5824 | vd350px5824_90180353.xml | GATT_145 | 185 | 1,212 | RESTRICTED
E/CONF.2/C 2&3/A/
W.12/Corr. 1
10 March 1948
ENGLISH -FRENCH
ORIGINAL: ENGLISH
JOINT SUB -COMMITTEE OF COMMITTEES II AND III TARIEF PREFERENCES
CORRIGENDUM TO NOTES OF TWELFTH MEETING
1. The date in line 3 of the beading of the document should be "Saturday,
6 March 1948".
2, In line 2 of the paragraph headed. "Paragraph 5" on page 1, the words
"recommended that no change be made" should be replaced by:
"reported that all tentative drafts had been rejected because they
appeared to involve changes of substance, and the Working Group
therefore decided not to recommend any change;"
SOUS-COMMISSION MIXTE DES DEUXIEME ET TROISIEME COMMISSIONS CHARGEE
D'ETUDIER LA QUESTION DES PREFERENCES TARIFAIRES
RECTIFICATIF AUX NOTES DE IA DOUZIEME SEANCE
1. (ne concerne qua le texte anglais).
2. A la page 1, aux lines 2 et 3 de l'alinTa relatif au "paragraphe 5"
remplacer lee mots a recommandT de n'y apporter aucun changement" par le
texte suivant:
"a indiquT qu'il n'avait pu accepter aucun des textes proposes parce
qu'ils semblaient impliquer des modifications de fond; il a decide,
en consTquence, de ne pas recammander de changement." |
GATT Library | dt344gj5374 | Corrigendum to notes of Twentieth Meeting : 13 January 1948, 6.00 p.m | United Nations Conference on Trade and Employment, January 15, 1948 | Third Committee: Commercial Policy and Third Committee: Commercial Policy Sub-Committee A (Articles 16, 17, 18, 19) | 15/01/1948 | official documents | E/CONF.2/C.3/A/W.32/Corr.1 and E/CONF.2/C.3/A/W.1-39 | https://exhibits.stanford.edu/gatt/catalog/dt344gj5374 | dt344gj5374_90190456.xml | GATT_145 | 173 | 1,314 | RESTRICTED
United Nations Nations Unies E/CONF.2/C.3/A/W.32/ Corr.1
CONFERENCE CONFERENCE 15 January 1948
ON DU ENGLISH - FRENCH
TRADE AND EMPLOYMENT COMMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE; COMMERCIAL POLICY
SUB-COMMITTEE A (ARTICLES 16, 17, 18, 19)
CORRIGENDUM TO NOTES OF TWENTIETH MEETING
13 January 1948, 6.00 p.m.
0n page 2 Item 53, the second sentence should read as follows:
"He indicated that he would be prepared to withdraw his amendment
if it were made clear in the Sub-Committee's report that the term "of
national origin" in the second sentence of paragraph 1 was interpreted
in this manner."
TROISIEME COMMISSION : POLITIQUE COMMERCIALE
SOUS-COMMISSION A (ARTICLES 16, 17, 18, 19)
RECTIFICATIF AUX NOTES SUR LA VINGTIEME SEANCE
13 janvier 1948, 18 heures
Pages 2 et 3, point 53 : la deuxiFme phrase doit a'Tnoncer de la
faton suivante :
"Il indique qu'il est disposT a retirer son amendment si le
rapport de la Sous-Commission, Ttablit clairement que l'expression
"d'origine nationale" dans la deuxiFme phrase du paragraphe 1 doit
Otre interprTtTe dans ce sens". |
GATT Library | qr300rc9501 | Corrigendum to notes of Twentieth Meeting : 13 January 1948, 6.00 p.m | United Nations Conference on Trade and Employment, January 16, 1948 | Third Committee: Commercial Policy and Sub-Committee A (Articles 16, 17, 18, 19) | 16/01/1948 | official documents | E/CONF.2/C.3/A/W.32/Corr.2 and E/CONF.2/C.3/A/W.1-39 | https://exhibits.stanford.edu/gatt/catalog/qr300rc9501 | qr300rc9501_90190457.xml | GATT_145 | 117 | 847 | United Nations
CONFERENCE
ON
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CONFERENCE
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COMMERCE ET DE L'EMPLOI
RESTRICTED
E/CONF.2/C. 3/A/
W. 32/Corr.2
16 January 1948
ENGLISH - FRENCH
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE A (ARTICLES 16, 17, 18 AND 19)
CORRIGENDUM TO NOTES OF TWENTIETH MEETING
13 January 1948, 6.00 p.m.
Page 2
Ninth line from bottom, substitute for "[national] domestic origin"
the following: "[national origin] domestic production."
TROISIEME COMMISSION: POLITIQUE COMMERCIALE
SOUS-COMMISSION A (ARTICLES 16, 17, 18 et 19)
RECTIFICATIF AUX NOTES DE LA VINGTIEME SEANCE
13 janvier 1948, 18 heures Page 3
A la quatriFme ligne du quatriFme paragraphe, remplacer : d'origine
[nationale] intTrieurs " par : "[d'origine nationale] provenant de la pro-
duction intTrieure". |
GATT Library | tm698cy3309 | Corrigendum to notes of Twenty-Fifth Meeting : 20 January 1948, 3.00 p.m | United Nations Conference on Trade and Employment, January 23, 1948 | Third Committee: Commercial Policy and Third Committee: Commercial Policy Sub-Committee A (Articles 16, 17, 18, 19) | 23/01/1948 | official documents | E/CONF.2/C.3/A/W.39/Corr.1 and E/CONF.2/C.3/A/W.1-39 | https://exhibits.stanford.edu/gatt/catalog/tm698cy3309 | tm698cy3309_90190467.xml | GATT_145 | 233 | 1,722 | United Nations Nations Unies
CONFERENCE CONFERENCE RESTRICTED
ON DU E/CONF.2/C.3/A/W.39
Corr.1
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 23 January 1948
ENGLISH - FRENCH ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE A (ARTICLES 16, 17, 18, 19)
CORRIGENDUM TO NOTES OF TWENTY-FIFTH MEETING
20 January 1948, 3.00 p.m.
On page 2, paragraph 3, item 1, fourth line, substitute the words
"e.g., farm implements manufactured by a government agency and sold to
farmers without profit;" for the words "e.g., tractors purchased by the
Government for demonstration purposes but later re-sold to farmers;"
Page 2, paragraph 4, second line, should read " .....define more
satisfactorily what was intended by 'products purchased for governmental
purposes' , ..... " instead of " .... define more satisfactorily what was
intended by governmental purchases,....."
TROISIEME COMMISSION : POLITIQUE COMMERCIALE
SOUS-COMMISSION A (ARTICLES 16, 17, 18, 19)
RECTIFICATIF AUX NOTES DE LA VINGT-CINQUIEME SEANCE
20 janvier 1948, 15 heures
Page 3, quatriFme paragraphe, cinquiFme ligne du point 1 : remplacer les
mots : "tel le cas mentionnT par le reprTsentant de la Chine, o· un Etat achFte
des tracteurs pour procTder ? des dTmonstrations mais les revend ensuite ? des
cultivateurs;" par les mots : "tel le cas mentionnT par le reprTsentant de la
Chine, o· une institution gouvernementale fabrique do l'outillage agricole
et le vend aux cultivateurs sans faire aucun prefit"
La deuxiFme rectification n'intTresse pas le texte frantais. |
GATT Library | zy892jb3452 | Corrigendum to notes of Twenty-Seventh Meeting : 24 January 1948, 10.30 a.m | United Nations Conference on Trade and Employment, January 27, 1948 | Third Committee: Commercial Policy and Third Committee: Commercial Policy Sub-Committee A (Articles 16, 17, 18, 19) | 27/01/1948 | official documents | E/CONF.2/C.3/A/W.42/Corr.1, E/CONF.2/C.3/A/W.40-55, and C.3/A/WHITE PAPERS | https://exhibits.stanford.edu/gatt/catalog/zy892jb3452 | zy892jb3452_90190471.xml | GATT_145 | 185 | 1,211 | United Nations
CONFERENCE
ON
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CONFERENCE
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COMERCE ET DE L'EMPLOI
RESTRICTED
E/CONF.2/C .3/A/
W.42/Corr.1
27 January 1948
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE A (ARTICLES 16, 17, 18, 19)
CORRIGENDUM TO NOTES OF TWENTY-SEVENTH MEETING
24 January 1948, 10.30 a.m.
Substitute the following for the paragraphs shown on page 3 under
point 4:
4. Paragraph 2 (c)
"The delegate of Brazil expressed concern with respect to (iii)
which he felt destroyed the automatic action to eliminate preferences
established in (I) and (ii). If (iii) where deleted, a Member party
to a preferential arrangement would be required to negotiate under
(i) and (ii), and, in case of a refusal, appeal could be had to the
Organization. If (iii) were retained, such Member could always refuse
to negotiate under the automatic rule and claim that its obligation
to negotiate had been adequately fulfilled by its willingness to
negotiate under rule (iii).
"It was pointed out that the procedure of (iii) would only operate
by agreement between the parties concerned.
"Paragraph 2 (c) was agreed , the Brazilian objections having
been noted." |
GATT Library | tg813cv8664 | Corrigendum to notes on Eleventh Meeting : Held at the Capitol, Havana, Cuba, on Saturday, 7 February 1948 at 6.00 p.m | United Nations Conference on Trade and Employment, February 14, 1948 | Second Committee: Economic Development and Sub-Committee C (Articles 13 and 14) | 14/02/1948 | official documents | E/CONF.2/C.2/C/W.11/Corr.1, E/CONF.2/C.2/B/W.1-14, and C.2/C/W.1-13 | https://exhibits.stanford.edu/gatt/catalog/tg813cv8664 | tg813cv8664_90180329.xml | GATT_145 | 132 | 1,059 | RESTRICTED
United Nations Nations Unies
E/CONF.2/C.2/C/
CONFERENCE CONFERENCE W.11/Corr.1
14 February 1948
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI LIg
:S1OD COM*TTE: MLOEMENNNMC DEVE,0PT
SUB-COMMITTE C ON ARTICLES 13 AND 14
CORRIGES ON DHUTHL4E NTH MEOTENGNTS ONE=EOM
]lMt tthe Capiol, Havana, Cuba, on eSaurebday, 7 Farury 1948 at 6.00 p.m.
Delete the third sentence on page 2: "If what was meant...g Workin
Party" of the speech by TtDethe UE KINGDOMrepresentative, and replace by
the f:ollowing
"If the intention was the continued protection of industries
which had been established during the war, and which had enjoyed
protection equivalent to quantitative restrictions through the
effect ogf shortaes and their abnormal circumstances, this wasa
special case which might be given further consideration, in
relation either to Article 13 or Article 14." |
GATT Library | bp162gq6274 | Corrigendum to notes on Fifth Meeting of Sub-Committee B (proposed new Article 18A) | United Nations Conference on Trade and Employment, March 9, 1948 | Third Committee: Commercial Policy | 09/03/1948 | official documents | E/CONF.2/C.3/B/W.7/Corr.1 and E/CONF.2/C.3/A/WHITE PAPERS/C.3/B/W.1-7/C.3/C/W.1-16 | https://exhibits.stanford.edu/gatt/catalog/bp162gq6274 | bp162gq6274_90190498.xml | GATT_145 | 935 | 6,477 | United Nations Nations Unies RESTRICTED
E/CONF.2/C.3/B/W.7/
CONFERENCE CONFERENCE Corr. 1
ON DU 9 March 1948 ENGLISH - FRENCH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
CORRIGENDUN TO NOTES ON FIFTH MEETING OF SUB-COMMITTEE B FIMPE1 ENOTIOSTIB-COME B
(PRL1SED NEW TICE 8A)
1. In the second par agraph, itT "Unn the firstl"ine deleited Kingdom
and substitute "Norway".
2. Delete the last line of the second paragraph and insert the following:
"On the condition that Chapter V was amended in this way he
uld withdraw the Norwegian proposal f8or a n8e Article 1RA
He aupprted by the representatives of India, France and the
Unted Kingdom."
OMIISUMI E MSLISIOLN :I MERCIALENOITMQUCAM1I
RECICATIF ADd UX NODTE IME CINMQUEE SEANCE DE LAMI SSOUSMI-M1SIN B
(ARTICLE 18 A NOUVEAU PROPOSE)
FeE, uèximpagraremnFpeh,pmnrèinige remplace r "d uRoaum"ep-U"ni`ar
"darlFa Novge".
2. Supprimer la Fdernire phrase du second paragraphe et y substituer ce
qitui su :
ndition b"A d le chapitre V soiaaat mTénden ce sens, dlleé Tédee d
Nlrva oège retirera sa proposition concernant l'articl8e 1A nouveau.
es atppuyép6 r les repréeestants de la France, de '''dne et udd
RoyaumUWeni." W.P.1 SUB-COMMITTEE B ON PROPOSED ARTICLE 18A OF COMMITTEE III
(For terms of reference see Document E/CONF.2/C.3/3/1)
ANALYSIS OF ARGUMENTS
This paper has been prepared by the Secretariat for the convenience
of the members of the Sub-Committee. It represents an analysis of the main
arguments put forward in discussion in Committee and Sub-Committee for an
against the proposed Article 18A.
A. IS IT DESIRABLE IN PRINCIPLE, WHETHER OR NOT INCLUDED IN THE CHARTER,
THAT THERE SHOULD BE LIMITATION ON DISCRIMINATION IN RESPECT OF SERVICES?
The majority opinion appears to be in favour of the principle of
restricting such discrimination.
SHOULD THE CHARTER INCLUDE PROVISIONS CONCERNING SERVICES?
(1) (pro): Services inevitably affect trade and unless dealt with in
the Charter, other provisions are liable to be nullified.
(2) (pro): The Charter, in Chapters II, III, V and VI, already deals
with subjects affecting trade if.di:7ectly.
(3) (pro): Discrimination being limited in other fields, under the
Charter, services cannot be omitted.
(4) (contra): Services present large and complex problems of which
only isolated aspects could be dealt with in a Charter an trade.
In order to produce a satisfactory result services would have to
be dealt with in their entirety.
(5) (contra): The special expert knowledge required is not available
at this Conference.
(6) (contra): The International Trade Organization is not competent
to deal with services.
C. DOES THE DRAFT CHARTER ALREADY CONTAIN PROVISIONS DEALING WITH SERVICES?
(1) (pro): Services are already dealt with in paragraph 2 of Article 18,
in Article 32 and in Article 50. The close relationship between
trade and services is expressly recognized in Article 50.
(2) (contra): The provisions in Articles 18 and 32 only serve to prevent
discrimination for the purpose of protecting goods, not of protecting
the services themselves.
D. SPECIAL POSITION OF SOME COUNTRIES
(1) (pro): Countries, without access to the sea, which are dependent on
imported commodities from limited sources of supply, are at the mercy
of the suppliers in respect of freight rates, if vessels and routes
can be prescribed.
2101 /(2) (contra): -2-
(2) (contra): Countries, dependent on sea communications, which possess
a merchant navy, cannot compete with wealthy countries granting
shipping subsidies, and would be driven off the seas altogether
unless other protective measures are permitted.
(3) (pro): For countries situated on the sea and possessing insufficient
natural resources, merchant shipping is an indispensable source of
income for a large part of the population; this would be jeopardized
if discriminatory measures were permitted.
E. RELATION TO DEVELOPMENT
(I) (contra): Countries not possessing services must be allowed to
develop them. In respect of goods, protection is permitted by
customs tariffs and subsidies. The former being inapplicable to
services and subsidies being impracticable in view of the high cost
government regulation is the only other alternative.
(2) (pro): Exceptions required to permit development of services can
be provided for under Chapter III, in particular under Article 13.
F. SECURITY
(1) (contra): The establishment of national merchant navies, which in
recent wars have proved to be a vital security requirement, must
not be impeded.
(2) (pro): All economic factors have proved vital in modern war. To
permit exceptions on the ground of security would make the Charter
wholly ineffective.
G. FLAG DISCRIMINATION - FREIGET DISCRIMINATION
Flag discrimination should not be considered without also considering
discrimination in freight rates.
H. DISCRIMINATION BY GOVERNMENT ACTION
(1) (contra): The selection of services is mostly exercised not by
governments but by the purchaser on the basis of commercial
considerations.
(2) (contra): The note to paragraph 2 of Article 30 expressly excludes
services from the restrictions applying to state enterprises. Any
provisions forbidding discrimination would, therefore, put privately
owned services at a disadvantage.
(3) Discrimination practised by private undertakings is equally harmful
to that practised by governments. Any provision would have to deal
with both.
I. BALANCE OF PAYMENTS
(1) (contra): Shortage of hard currencies may make it necessary to
prescribe use of services payable in available currencies.
/J. PROCEDURE -3-
J. PROCEDURE
(1) Camplaints arising from the provisions should be dealt with by
special agencies, if such exist, for the services concerned, and
in their absence by the ITO.
(2) (contra): The proposal as drafted would compel ITO to take rigorous
action against offenders. Article 50 merely gives authority to make
recommendations and promote international agreement on remedial
measures.
K. DRAFTING
The provisions should be so formulated as to include the concept and
term "discrimination" which appears in all similar provisions in the
Charter. |
GATT Library | tx500bv5937 | Corrigendum to notes on First Meeting | United Nations Conference on Trade and Employment, January 12, 1948 | Third Committee: Commercial Policy and Sub-Committee G (Swiss Proposal) | 12/01/1948 | official documents | E/CONF.2/C.3/G/W.1/Corr.1 and E/CONF.2/C.3/F/W.31/REV.2-32/G/W.1-13/H/W.1-9 | https://exhibits.stanford.edu/gatt/catalog/tx500bv5937 | tx500bv5937_90190603.xml | GATT_145 | 101 | 705 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
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COMMERCE ET DE L'EMPLOI
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E/CONF. 2/C .3/G/W.1/
Corr.1
12 January 1948
ENGGLISH
ORIGINAL:FRENCH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE G (SWISS PROPOSAL)
CORRIGENDUM -TO NOTES ON FIRST MEETING
Paragraph 2
Read as follows:
The representative of Switzerland, in reply to various questions and
suggestions, made it clear that it was much less the desire to safeguard
the balance of payments that had. prompted his delegation to make this
proposal than the desire to protect its external trade and guard against
the danger of unemployment. Its purpose was to enable Switzerland......... |
GATT Library | bq054rd1796 | Corrigendum to notes on Fourth Meeting | United Nations Conference on Trade and Employment, January 16, 1948 | Third Committee: Commercial Policy and Sub-Committee D (Articles 40, 41 and 43) | 16/01/1948 | official documents | E/CONF.2/C.3/D/W.8/Corr.1 and E/CONF.2/C.3/D/W/1-13/E/CONF.2/C.3/E/W/1-23 | https://exhibits.stanford.edu/gatt/catalog/bq054rd1796 | bq054rd1796_90190528.xml | GATT_145 | 111 | 889 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies RESTRICTED
CONFERENCE E/CONF.2/C. 3/D/W.8/
CONFERENCE Corr.1
DU 16 january 1948
COMMERCE ET DE L'EMPLOI ENGLISH - FRENCH
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE D (ARTICLES 40, 41 AND 43)
CORRIGENDUM TO NOTE ON FOURTH MEETING
Page 2, last paragraph, line 3, Delete:
authorizing the Organization to ask members...."
Substitute: "...under which Members would undertake....."
TROISIEME COMMISSION: POLITIQUE COMMERCIALE
SOUS-COMMISSION D (ARTICLES 40, 41 ET 43)
RECTIFICATION AUX NOTES DE LA QUATRIEME SEANCE
Page 3, remplacer à la troisième ligne les mots:
".....autorisant l'Organisation à demander aux Etats membres leur
coopération..." par "....aux termes de laquelle lea Etats membres
s'engageraient à coopérer...." |
GATT Library | ss903qf3054 | Corrigendum to notes on Second Meeting | United Nations Conference on Trade and Employment, January 13, 1948 | Third Committee: Commercial Policy and Sub-Committee B (proposed new Article 18A) | 13/01/1948 | official documents | E/CONF.2/C.3/B/W.1/Rev.1/Corr.1 and E/CONF.2/C.3/A/WHITE PAPERS/C.3/B/W.1-7/C.3/C/W.1-16 | https://exhibits.stanford.edu/gatt/catalog/ss903qf3054 | ss903qf3054_90190490.xml | GATT_145 | 127 | 853 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
RESTRICTED
E/CONF.2/C.3/B/W.l/
Rev .l/Corr.l
13 January 1948
ORIGINAL: ENGLISH
THIRD COMMITTE: COMMERCIAL POLICY
SUB-COMMITTEE B (PROPOSED NEW ARTICLE 18 A)
CORRIGENDUM TO NOTES ON SECOND MEETlNG
The Norwegien delegation has asked for insertion of the following
before the last paragraph:
"The delegate of Norway stated that he did not agree with
the Chairman's summing up. He was of the opinion that the discussions
which had taken place in the Committee and the Sub-Committee did not
show whether or not there was sufficient support for the Norwegian
proposal in its present form. The delegate of the United Kingdom agreed
with this statement whereas the delegates of India and Venezuela agreed
with the Chairman. |
GATT Library | rd082fn4101 | Corrigendum to Part 2 of Draft Report to the Conference | United Nations Conference on Trade and Employment, March 16, 1948 | Third Committee: Commercial Policy | 16/03/1948 | official documents | E/CONF.2/C.3/89/Corr.1 and E/CONF.2/C.3/78-89/ADD.3 | https://exhibits.stanford.edu/gatt/catalog/rd082fn4101 | rd082fn4101_90190199.xml | GATT_145 | 233 | 1,622 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/89 Corr.1
ON DU 16 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPL0I ENGLISH ONLY
THIRD COMMITT'EE: COMMERCIAL POLICYIERCLAL POLICO
CCRIGSEIU ODRAFTF AFT REPOTHERT NFERENCEEE CO'IEREN
In addition to corrections of obvious typographical errors, the following
corrections aAshould be de in docu.men.t E/C0NF2/C3/89:
1, On page 8, at the end of line 2, in,sert "the".
2. On pa; 13, in line 6 from bogttom of paei bemtween "fornlities"
and "any" read "or" instead. of' "of"'
g3. On pae 14, line 9, read "interests ,is caused"
4. On page 14, line 10, at end of line aft er "shall"mma insert co.
5. On page 14, in Article 26, paragraph 1, line 6,mm delete coa
fbetween "'or differences" and "in, taxation"
6. On page 15, Article 27, paragraph 1, sub-paragraph (a) delete
"than" at end of line 2,
g7. CaaGe19, the end of Article 31, paragraph 2 (b) eshould b8
s set out afollows:
"ozpaxaraph 1; any Member entering into negotiations
under this sub-paragraph shall afford to other interested
Imbers an opportunity for consul,tation.
8.page On 25, Article 34, the second line of paragraph 1
shoulcread:
"c drfinitions of value and of procedures fo.r...,
9. page 7On 2, line 1, insert "not" between "should" and "represent".
10. Ogn pae 29, paragraph 3 (b), line 2, inseommart c af"ter judicialal".
11. Ogn pae 31, line 2, underline "Provided". |
GATT Library | ns529qq5052 | Corrigendum to proposed redraft of final text of chapter III : Article 14. Transitional measures | United Nations Conference on Trade and Employment, March 17, 1948 | Central Drafting Committee | 17/03/1948 | official documents | E/CONF.2/C.8/22/Corr.1. and E/CONF. 2/C. 8/17-28 | https://exhibits.stanford.edu/gatt/catalog/ns529qq5052 | ns529qq5052_90200307.xml | GATT_145 | 166 | 1,085 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
OONFERENCE
DU
COMMERC ET DE L'EMPLOI
UNBETRIC'.ME
E/COUF.2/C8/22/
Corr.1.
17 March 1948
ENGLISH - FRENCH
ORIGINAL: ENGLISH
CETAL DRAFTING COMMITTEE
CORRIGENDUM TO PROP0OSED REDRAFT
OF FINAL TEXT 0F CEAPT III
ARTICLE 14
Transitional Measures
In paragraph 1 (a) delete come after "1947" at end of fourth lime
and insert " to the",
.In paragraph 1 (b) at beginning of seventh line substitute "to` for "of".
:;in paragaph 2 line 4 delete "the" between "measures" and "decisions".
COMITE CENTRAL DE REDACTION
RECTIFICATIF AU TEXTE REMANIE PROPOSE COMME TEXTE DEFINITIF DU CHAPITRE III
ARTICLE 14
N -- Masures transitoiros.
A-- l'alinea l a), page 1, treizieme ligne, placer ontre crochets les
nots "Si dans des circonstances particulieres, les" ot inserer lo mot "Los",
A la dernière ligne do la nome page, supprimer les crochets encadrant le
net "specifiees", et supprimer lo mot "indiquees".
Page 2, à la sixiemo ligne avant la fin, placer entre crochets los nots-
"a l'appui". |
GATT Library | df002jn2789 | Corrigendum to proposed redraft of final text of chapter III : Article 15. Preferential Arrangements for Economlc Development and Reconstruction | United Nations Conference on Trade and Employment, March 18, 1948 | Central Drafting Committee | 18/03/1948 | official documents | E/CONF.2/C.8/26 Corr.1 and E/CONF. 2/C. 8/17-28 | https://exhibits.stanford.edu/gatt/catalog/df002jn2789 | df002jn2789_90200312.xml | GATT_145 | 153 | 1,073 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.8/26 Qorr.1
ON DU 18 March 1948 ENGLISH ONLY
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
CENTRAL DRAFTING COMMITTEE
CORRIGENDUM TO PROPOSED REDRAFT OF FINAL TEXT OF CHAPTER III
Article 15
Preferential Arrangements for Economlc Development and Reconstruction
On pase 1 paragraph 3 in the third line delete the comma appearing
water the opening square bracket.
On page 3 in paragraph 6 (b) at the end of the fourth line from the
end -of the sub-paragraph delete "Prescribed" and insert "shall prescribe".
On page 3 in paragraph 6 (b) at the beginning of the second line from
the end of the sub-paregraph substitute "The" for "the".
On page 4 in the first line of the interpretative note of paragraph 6 (d)
place the words "It is understood that" in square brackets end commence the
word "the" following the square brackets with a capital T. |
GATT Library | qc626wx0915 | Corrigendum to proposed redraft of the final text 0f chapter IV-Article 21 | United Nations Conference on Trade and Employment, March 13, 1948 | Central Drafting Committee | 13/03/1948 | official documents | E/CONF.2/C.8/12/Corr.1 and E/CONF. 2/C. 8/10/ADD. 1-17 | https://exhibits.stanford.edu/gatt/catalog/qc626wx0915 | qc626wx0915_90200294.xml | GATT_145 | 697 | 4,486 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.8/12/
ON DU 13 March 1948 Corr.1
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ENGLISH - FRENCH
ORIGINAL : ENGLISH
CENTRAL DRAFTING COMMITTEE
COMITE CENTRAL DE REDACTION
CORRIGENDUM TO PROPOSED REDRAFT OF THE FINAL TEXT
0F CHAPTER IV - ARTICLE 21
RECTIFICATIF AU TEXTE REMANIE PROPOSE COMME TEXTE DEFINITIF
DU CHAPITRE IV - ARTICLE 21
1. Dans le texte français, page 1, supprimer la troisième ligne et la
remplacer par:
"incombe [en premier lieu] premier chef de".
2. Dans le texte français, page 1, supprimer les trois dernières lignes
et les remplacor par:
"part de] s'il conduit ou risque de conduire 1'Etat Membre à. imposer
des [measures restrictives".
3. Dans le texte français, page 2, sixième ligne à compter du bas de la
page, insérer une virgule entre "du possible" et [où l'Etat".
4. Dans le texte français, page 3, supprimer la première ligne de l'alinéa
(ii) et la remplacer par
"(ii) ou pour [relever] augmenter ses réserves".
5. Dans le texte français, page 4, supprimer les lignes 4 et 5 à compter
du bas de la page, et les remulacer par:
"tions [lorsque] si cette atténuation ou cette suppression [créerait]
doit créer immédiatement une situation qui".
6. Dans le texte franqais, page 6, à la première ligne de l'alinéa (ii), le
dernier mot devra se lire : "restrictions",
à la ligne 4 : "intérêts",
à la ligne 7 : "intérêts". E/CONF.2/C. 8/12/
Corr. 1
English - French
Page 2
7. Dans le texte français, page 7, supprimer les lignes 13 et 14 et les
remplacor par:
"appliquo on vue do s'acquitter des engagements qu'il a contractés
aux termos de l'article 3, au".
8. Dans le texte français, page 7, supprimor les lignes 3 et 4 à compter
du bas de la page ot les remplacer par:
"pression justifiant l'application do restrictions en vortu do
l'alinéa [3] a) du".
9. On page 8 in the English text, delete comma at end of sub-paragraph (i),
substitute semicolon.
10. Dans le texte français, page 8, supprimer la deuxième ligne à compter
du bas do la page et la remplacer par:
"rationnelle des [leurs] ressources productives".
11. Dans le texte français, page 9, ligno 16, supprimer la virgule entree
"choix]" at "qui".
12. Dans le texte français, page 9, supprimer les six dernières lignes au
bas do la page et les remplacer par
"d'indiquar [d'] à l'avance [lo choix qu'il fora do tolls ou
telles] quelles mosures [particulières qu'il pourra décider
finalement d'adopter ni lour date d'application] il choisira on
définitive ni le moment auquol il compte les appliquer".
13. Dans le texte français, page 12, lignes 12 et 13, supprimer "est lésé",
et remplacer par : "subit un préjudiceo".
14. On page 13, after sub- 14. A la page 13, après l'alinéa d),
paragraph d), insert : insérer co qui suit
Note bZ the Contral Drafting Note du Comité central de rédaction
Committee
At the end of paragraph 4 d), A la fin do l'alinéa 4 d), il est
it is stated that "the stipulé que "l'Organisation... E/CONF.2/C.8/12/
Corr. 1
English - French
Pago 3
Organization may release dny
Member from specified
obligations undor this
Chartor". The Contral
Drafting Committee wishes to
suggest that, if it is dosired
to bring this phrase into
line with similar provisions
olsewhere in the Charter
(e.g. Art. 40 and 90), it
should be changed to road:
"tho Organization may release
any Member from specified
obligations or concessions
under or pursuant to this
Charter towards the Member
applying the restrictions".
15. Dans la texte français, page 15,
remplacer par "so poser".
pourra relever un ou plusieurs
autres Etats Membres dos ongagements
qu'elle spécifiora parmi les
ongagementeo contractés on vertu do
la présente Charte". Le Comité
contral do rédaction suggère que si
l'on veut assurer l'uniformité avec
los autres dispositions similaires
de la Charte (notamment les
articles 40 ot 90), il faudrait
modifier cotto phrase comme suit :
"cello-ci pourra autoriser un ou
plusieurs autres Etats Membres à
suspendro, à l'égard do l'Etat
Membre qui applique les restrictions,
tels ongagements ou concessions
résultant do la présente Charte ou
de son application qu'elle
spécifiera".
ligmo 4, supprimer "s'opposer" et |
GATT Library | pf462gp3789 | Corrigendum to proposed redraft of the final text of chapter IV-section F. (Articles 40, 41 and 43) | United Nations Conference on Trade and Employment, March 13, 1948 | Central Drafting Committee | 13/03/1948 | official documents | E/CONF.2/C.8/5/Rev.1 Corr.1 and E/CONF. 2/C. 8/5/REV. 1-10/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/pf462gp3789 | pf462gp3789_90200274.xml | GATT_145 | 221 | 1,478 | United Nations Nations Unies UNRESTRICTED
E/CONF.2/C.8/5/Rev.1
CONFERENCE CONFERENCE DU Corr.1
ON DU 13 mars 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ENGLISH-FRENCH ORIGINAL :ENGLISH
CENTRAL DRAFTING COMMITTEE
COMITE CENTRAL DE REDACTION
CORRIGENDUM TO PROPOSED REDRAFT OF THE FINAL TEXT OF CHAPTER IV - SECTION F
(ARTICLES 40, 41 AND 43)
RECTIFICATIF AU TEXTE REMANIE PROPOSE COMME TEXTE DEFINITIF DU CHAPTRE IV -
SECTION F - (ARTICLES 40, 41 ET 43)
Article 40
1. Dans le texte français, suppprimer les trois dernières lignes de la page 1
et la première ligne de la page 2 et les remplacer par le texte suivant :
"Préjudice sérieux aux producteurs [nationaux] de produits simlaires ou
directement concurrents, qui sont établis sur le territoire de cet Etat Membre,
il sera loisible à [cet Etat Membre] ce dernier, dans..."
2. Dans le texte français, page 2, à l'alinéa (b), llème ligne, supprimer
le mot "nationaux".
3. Dans le texte français, à la page 3, supprimer la 10ème ligne à compter
du bas de la page et la remplacer par le texte suivant : "qui aura requis
cette mesure".
4. Dans le texte français, page 5, supprimer les lignes 8 à 10 et les
remplacer par le texte suivant: "[grave] préjudice sérieux aux producteurs
[ntionaux], établis sur le territoire d'un Etat Membre, de produits affectés
par [elles]". |
GATT Library | yc157jm2531 | Corrigendum to proposed redraft of the final text of chapter VIII | United Nations Conference on Trade and Employment, March 12, 1948 | Central Drafting Committee | 12/03/1948 | official documents | E/CONF.2/C.8/11/Corr.1 and E/CONF. 2/C. 8/10/ADD. 1-17 | https://exhibits.stanford.edu/gatt/catalog/yc157jm2531 | yc157jm2531_90200292.xml | GATT_145 | 229 | 1,517 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.8/11/
ON DU Corr.1 12 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
ORIGINAL: ENGLISH
CENTRAL DRAFTING COMMITTEE
CORRIGENDUM TO PROPOSED REDRAFT OF THE FINAL TEXT OF CHAPTER VIII
Article 89
1. On page 2, in line 3 of sub-paragraph 1 (a) in the English text delete
semicolon after "act".
Article 90
2. On page 4, in the English text, delete first two lines on top of page.
3. On page 7, in the English text in paragraph 4, line 4, delete
"organization", substitute "organizations".
4. On page 8, in the French text, in line 1 at top of page, delete
"durant", substitute "au course de".
Article 90A
5. On page 8, in the French text, in paragraph 1, line11, delete
"que cette", substitute "qutune telle".
6. On page 9, in the English text, in paragraph 3, line 4, insert "of"
between "1 (a)" and "Article".
Articlel 91
7. On page 12 in the French text delete lines 7 to 11 of paragraph 2 and
substitute;
"internationale de Justice, conformément au Statut de la Cour, [par
la voie] au moyen d'une demande d'avib consultatif [,formulée]
présentée dans les formes requises [, conformément au Statut de la
Cour]."
8. On page 13 in the French text, in paragraph 4, lines 5 and 6, delete
"demeurera opérante" and substitute: "produira tous ses effets". |
GATT Library | sw835jt2533 | Corrigendum to redraft* suggested as basis for discussion by Australian Delegation | United Nations Conference on Trade and Employment, January 14, 1948 | Second Committee: Economic Development and Sub-Committee B (Article 12) | 14/01/1948 | official documents | E/CONF.2/C.2/B/W.7/Corr.1, E/CONF.2/C.2/B/W.1-14, and C.2/C/W.1-13 | https://exhibits.stanford.edu/gatt/catalog/sw835jt2533 | sw835jt2533_90180309.xml | GATT_145 | 397 | 2,729 | United Nations Nations Unies RESTRICTED
E/CONF.2/C .2/B/W.7/
CONFERENCE CONFERENCE Corr. 1
ON DU 14 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ENGLISH ONLY
SECOND COMMITTEE: ECONOMIC DEVELOPMENT
SUB-COMMITTEE B ON ARTICLE 12 - INTERNATIONAL INVESTMENT FOR
ECONOMIC DEVELOPMENT
CORRIGENDUM TO REDRAFT* SUGGESTED AS BASIS
FOR DISCUSSION BY AUSTRALIAN DELEGATION
1. The Members recognize:
(a) that international investment both public and private can be
of great value in promoting economic development and consequent
social progress; and
(b) that the flow of international capital will be stimulated to
the extent that Members afford nationals of other countries
opportunities for investment and security for existing and future
investments within their territories;
(c) that, on the other hand, a Member has the right:
(i) to take any safeguards necessary to ensure that foreign
investment is not used as a basis for interference in
the internal affairs or national policies of Members;
(ii) to determine to what extent and upon what terms it will
allow foreign investment within its territories;
(iii) to prescribe and give effect to requirements as to the
ownership of investments within its territories.
(d) that the interests of Members whose nationals are in a position
to provide capital for international investment and of Members who
desire to obtain the use of such capital to promote their economic
development may be promoted if such Members were to enter into
bilateral or multilateral agreements relating inter alia to the
opportunities and security for investment which the Members are
prepared to offer and any limitations which they are prepared to
accept of the rights referrred to in sub-paragraph (c) above.
2. Members undertake therefore:
(a) to provide the widest opportunities for investments acceptable
* This redraft would substitute for paragraphs 1 and 2 of Article 12 of
the Geneva draft, but would not affect paragraph 3.
/to them and, E/CONF.2/C.2/B/W.7/Corr.1
Page 2
to them and, subject to sub-paragraphs (c) (i) and (iii) of
paragraph 1above, the greatest security for existing and
future investments;
(b) to participate at the request of any other Member in
negotiations directed towards the conclusion of such agreements;
provided that it a Member decides as a result of such
negotiations that an acceptable agreement cannot be concluded,
this decision shall not be interpreted as in any way nullifying
or impairing any benefit accruing to any other Member directly,
indirectly or by implication under the Charter. |
GATT Library | yj718bt1690 | Corrigendum to report of Sub-Committee 3 on Administration | Interim Commission For The international Trade Organization, September 15, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 15/09/1948 | official documents | ICITO/EC.2/14/Corr.1 and ICITO/EC.2/14-ICITO/EC.2/14/ADD.1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/yj718bt1690 | yj718bt1690_90060208.xml | GATT_145 | 303 | 2,143 | INTERIM COMMISSION COMMISSION INTERIMAIRE DE UNRESTRICTED
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE ICITO/EC.2/14/Corr.1
TRADE ORGANIZATION DU COMMERCE 15 September 1948
ORIGINAL: ENGLISH-FRENCH
Executive Committee
Second Session
CORRIGENDUM TO REPORT OF SUB-COMMITTEE 3 ON ADMINISTRATION
The following corrections should be made to this report
in accordance with the decisions of the Executive Committee
at its meeting on Tuesday, 14 October 1948:
Page 9: The last line should be changed to read, "inter-Govern-
mental commodity agreements. The".
Page 28: Regulation 26, line 4, should read, "it suggests that
there be included".
Page 44:
Article 11, paragraph 1, should read as follows,
"Each organization shall, at the request of the other,
consult on matters in relation to which such consultation is
specifically provided for in the Havana Charter and on other
matters agreed to be of mutual interest."
Page 45: Paragraph 3, the last sentence should read as follows:
"At the close of each consultation, the organization
consulted shall upon request furnish a report of its conclusions".
Page 47:
Article VII, insert paragraph 3 as follows:
"3. In the interests of efficiency and for the purpose of
reducing the burden on national governments and other organiza-
tions, the ITO and the Fund agree to co-operate in eliminating
unnecessary duplication in the collection analysis, publication
and dissemination of statistical information."
Paragraph 3, line 6, substitute "inter-governmental" for
"international", at the end of the line.
Page 57:
Article III - the title should read "Inter-governmental
Commodity Agreements".
Page 76:
Delete this page. ICITO/EC.2/14/Corr.1.
page 2.
Page 77:
Regulation 6, lines 5, 9 and 10, substitute "Conference"
for "General Assembly".
Page 88:
Regulation 6 line 2, substitute "Director" for
"Secretary", and in line 4, substitute "Organization" for
"United Nations".
Page 94:
Regulation 28 should be placed in square brackets.
Regulation 29, delete the words, "in the consideration
of such amendments". |
GATT Library | rg860dc8778 | Corrigendum to report of Sub-Committee 3 on Administration | Interim Commission For The international Trade Organization, September 15, 1948 | Interim Commission for the International Trade Organization and Executive Committee | 15/09/1948 | official documents | ICITO/EC.2/14/Corr.1 and ICITO/EC.2/14-ICITO/EC.2/14/ADD.1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/rg860dc8778 | rg860dc8778_90060208.xml | GATT_145 | 0 | 0 | |
GATT Library | pg706xg0065 | Corrigendum to Report of Sub-Committee B | United Nations Conference on Trade and Employment, March 8, 1948 | Third Committee: Commercial Policy | 08/03/1948 | official documents | E/CONF.2/C.3/76/Corr.1 and E/CONF.2/C.3/58-77/REV.1 | https://exhibits.stanford.edu/gatt/catalog/pg706xg0065 | pg706xg0065_90190180.xml | GATT_145 | 44 | 314 | United Nations
CONFERENCE
ON
TRADE AND EMOYMNT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EPLOI
UNRESTRICTED
E/CONF. 2/C.3/76/
Corr .1
8 March 1948
ENGLISH ONLY
THIRD COMMITTEE: COMMERCIAL POLICY
CORRIGENDUM TO REPORT OF SUB-COMMITTEE B
The report of Sub-Comittee B should be labeled UNRESTRICTED. |
GATT Library | jg382vh8276 | Corrigendum to Report of Sub-Committee D | United Nations Conference on Trade and Employment, January 26, 1948 | Third Committee: Commercial Policy | 26/01/1948 | official documents | E/CONF.2/C.3/37/Corr.1 and E/CONF.2/C.3/10-38 | https://exhibits.stanford.edu/gatt/catalog/jg382vh8276 | jg382vh8276_90190130.xml | GATT_145 | 168 | 1,216 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/37/
ON DU Corr . 1 29 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ENGLISH ONLY
THIRD COMMITTEE : COMMERCIAL POLICY
CORRIGENDUM TO REPORT OF SUB-COMMITTEE D
On page 9, the last paragraph should read as follows:
2. Measure instituted or maintained under paragraph [II] 1 (b) of this
Article which are inconsistent with the other provisions of this Chapter
shall be removed as soon as the conditions giving rise to them have
ceased, and in any event not later than [1 January 1951] at a date to be
specified by the Organization: Provided that [this period] such date may
be deferred for a further period or periods with the concurrance of the
Organization, [be extended in respect of the application of any particular
measure to any particular product by any particular Member for such
further periods as the Organization may specify] either generally or in
relation to particular measures taken by Members in respect of particular
products.
..... |
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