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GATT Library | xc432qd2683 | Protocol of typographical corrections to the Agreement | General Agreement on Tariffs and Trade, March 8, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 08/03/1948 | official documents | GATT/1/13 and GATT/1/9-28+21/Add.1 | https://exhibits.stanford.edu/gatt/catalog/xc432qd2683 | xc432qd2683_90310287.xml | GATT_146 | 135 | 841 | RESTRICTED
8 March 1948
GENERAL AGREEMENT ON TRIFFS AND TRADE
FIRST SESSIN OF THE CONTRACTING PARTIES
- - PROTOCOL OF TYPOGRAPHICAL CORRECTIONS TO THE AGREEMENT
The United Kingdom delegation has submitted the following additional
corrections to the United Kingdom Schedule to the Genaral Agreement on
Tariffs and Trade:
1. Page34. Group 3 XI (8). Line 3.
Insert the words "in the round or hewn or" before "sqare sawn".
2. Page 35. Group 3 XI (8). Line 7.
Insert the words "in the round or hewn or" before "square sawn" .
3. Page 53. Line 15.
After "cotton oil" insert "(cotton seed oil)".
4. Page 25. Group Ex3 X (1). Line 7.
Delete "conversion front and attachments"; substitute
"conversion front end attachments".
5. Page 39. Footnote.
Delete "end. of this Schedule"; substitute "head. of this
Schedule". |
GATT Library | wt542jr3000 | Protocol of typographical corrections to the Agreement | 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/1/15 and GATT/1/9-28+21/Add.1 | https://exhibits.stanford.edu/gatt/catalog/wt542jr3000 | wt542jr3000_90310289.xml | GATT_146 | 97 | 703 | RESTRICTED GATT/1/15
9 march 1948
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
FIRST SESSION OF THE CONTRACTING PARTIES
PROTOCOL OF TYPOGRAPHICAL CORRECTIONS TO THE AGREEMENT
In order to meet a request of the United States delegation for
clarification of the wording of the respective item, the Czechoslovak
delegation submits the following correction to be added to those
relating to Schedule X of the General Agreement on Tariffs and, Trade:
English Text:
Page 3-Tariff Item Number Ex. 17
Now reads Should read
coconuts and similar exotic cconuts and similar exotic
edible nuts. edible nuts includng pecans.
5882 |
GATT Library | vr914mf8401 | Protocol of typographical corrections to the Agreement | General Agreement on Tariffs and Trade, March 4, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 04/03/1948 | official documents | GATT/1/10 and GATT/1/9-28+21/Add.1 | https://exhibits.stanford.edu/gatt/catalog/vr914mf8401 | vr914mf8401_90310284.xml | GATT_146 | 129 | 794 | RESTRICTED
GATT/1/10
4 March 1948
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
FIRST SESSION OF THE CONTRACTING PARTIES
PROTOCOL OF TYPOGRAPHICAL CORRECTIONS TO THE AGREEMENT
The Cezchoslovak representative has made the following comment to
the Secretariat concerning page 12 of document GATT/1/1:
"I should like to point out that the corrections to be
made on Page 11 of the French text of Schedule X refer only
to the second paragraph of each position as mentioned and
not to the paragraph one (i.e. to lines 12 and 23, but not
to lines 9 and 20 where a similar wording is used.)
"In order to avoid a possible misunderstanding I would.
therefore suggest to mention also the respective paragraphs
or lines where the corresponding corrections are to be made."
5691 |
GATT Library | pm867ct7208 | Protocol of typographical corrections to the Agreement | General Agreement on Tariffs and Trade, March 16, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 16/03/1948 | official documents | GATT/1/30 and GATT/1/29-46+38/Rev.1,40/Rev.1 | https://exhibits.stanford.edu/gatt/catalog/pm867ct7208 | pm867ct7208_90310305.xml | GATT_146 | 122 | 814 | GATT/1/30
16 March 1948
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
FIRSST SESSION OF THE CONTRACTING PARTIES
PROTOCOL OF TYPOGRAPHICAL CORRECTIONS TO THE AGREEMENT
The Australian delegation desires the following alteration to the text
of Part I of Sehedule I - Commonwealth of Australia page 36:
Ex 231(E) ...... Gas Carbon Black ... ... ... Free
to read:
Ex 231(E) ...... Carbon Black produced from
natural gas ... . .. Free.
Comment
It was the understanding of the negotiators that "Gas carbon black"
referred to "carbon black produced from natural gas" and the amended wording
is desired to preclude the possiblity of "acetylene carbon black", i.e.,
"carbon black produced from acetylene gas", being considered as being covered
by the concession.
6262 |
GATT Library | qx514dd1423 | Protocol of typographical corrections to the Agreement Delegation of Chile | General Agreement on Tariffs and Trade, March 17, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 17/03/1948 | official documents | GATT/1/32 and GATT/1/29-46+38/Rev.1,40/Rev.1 | https://exhibits.stanford.edu/gatt/catalog/qx514dd1423 | qx514dd1423_90310307.xml | GATT_146 | 195 | 1,377 | GATT/1/32
17 March 1948
GENERAL AGREEMENT ON TARIFFS AND TRADE
FIRST MEETING OF THE CONTRACTING PARTIES
PROTOCOL OF TYPOGRAPHICAL CORRECTIONS TO THE AGREEMENT
DELEGATION OF CHILS
The delegation of Chile submits the following corrections to Schedule VII
of tariff concessions grated by Chilo.
item Present Text Correct Text
43 I (french Text) "... pour fours et chaudieres..." "...pour fours ou
chaudiores ..."
57 (French Text) "...un mm. d'opaissour, pesant.. " "...un mm . d'opaisseur
ou pesant..."
300 (Engish text) " ...8 throads or less" "...8 threads or less"
Ex 1072 " "...in containers of more "...in containors.
than 1 Kg net" with a not content of
over one Kg."
The number of the item following Ex 1189 in the English Text Should
be 1193:
1193 (English Text) "Iron and stell..." "Iron or steel..."
1191. " " "Iron and steel..." "Iron or steel..."
1194 A '' " "Iron and steel.." "Iron or steel..."
1194 B " " "Iron and steel..." "Iron or steel..."
1194 C " " "Iron and steel..." "Iron or steel..."
1349 " " "...with or without bronze "...with or without
wine-presses and trays;.."
1408 " " Illegible
wine-presses and
bronze trays;...
"K.G. 0.18" |
GATT Library | vj504kz0983 | Protocol of typographical errors to the Agreement | General Agreement on Tariffs and Trade, March 3, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 03/03/1948 | official documents | GATT/1/7 and GATT/1/2-8 | https://exhibits.stanford.edu/gatt/catalog/vj504kz0983 | vj504kz0983_90310274.xml | GATT_146 | 1,332 | 8,021 | RESTRICTED GATT/1/7 3 MARCH 1948
GENERAL AGREEMENT ON TARIFFS AND TRADE
FIRST SESSION OF THE CONTRACTING PARTIES
PROTOCOL OF TYPOGRAPHICAL ERRORS TO THE AGREEMENT
There is attached a list of rectifications required in Schedule XX
of the Ageement, supplementary to that which was circulated with document
GATT/1/6 of 1 March.
A memorandum on "Explanatory Notes Concerning Changes in the General
Agreement on Tariffs and Trade, Schedule XX, Proposed by the United States",
is also enclosed.
5586
/1 March 1948 GATT/1/7
Page 2
1 March 1948
ADDITIONS TO, AND MODIFICATIONS OF, PRINCIPAL LIST OF GATT,
SCHEDULE XX RECTIFICATIONS SUBMITED BY THE UNITED STATES
1. Change Item 212 [second] to read:
(a) In the description for saucers in the second Item 212, the
words between the value of "$3" and the first semi-colon thereafter
shall be "per dozen".
(b) In the second Item 212 the sub-description starting "Other
exceptt hotel)" shall read in full "Other (except tableware,
kitchenware, and table and kitchen utensils):"
2. In Item 213 change "crystaline" to "crystalline".
3. In Item 355 delete the word "immediate".
4. Insert after Item 372 [twelfth]:
Item 372 [thirteenth]
In the thirteenth Item 372:
(a) The immediate sub-description for the rate of "10% ad. val."
shall be "For manufacturing or processing vegetable fibers (except
winding, beaming, warping and slashing machinery, and
combinations thereof)".
(b) The last two words, and accompanying punctuation, in the
immediate sub-description for the rate of "40% ad val." shall be
"Bradford" combs".
5. Insert after Item 919 [second]:
Item 924
The rate in Item 924 shall be "5¢ per lb., but not less than
1-3/7 times the most-favoured-nation rate of ordinary customs duty
applicable when such articles are entered, or withdrawn from
warehouse, for consumption to cotton having a staple of 1-1/8 inches
or more in length."
6. Change Item 1102 (b) [first] to read:
In the note following the first Item 1102 (b) the number following
"1115 (a) and" shall be "1119".
7. In Item 1502 [first] insert comma after "Item 1502".
8. Change Item 1503 [third] to read:
The proviso to the third Item 1503 shall be:
"Provided, That for the purpose only of applying the second
/proviso to GATT/1/7
Page 3
proviso to paragraph 1503, Tariff Act of 1930, to articles
provided for in this items each rate of duty "ezisting"
(within the meaning of Section 350, Tariff Act of 1930, as
amended by the Act of July 5, 1945) on January 1, 1945, shall
be reduced to 50 per cenutum of such rate."
9. Insert after Item 1503 [third]:
Item 1527 (a) (1) and (2)
In Item 1527 (a) (1) and (2) the rate for the sub-description
"All other, of whatever material composed, valued above 20 cents
per dozen pieces" shall be "55% ad val., but not less than 50% of
the amount payable on the basis of the duty "existing" (within
the meaning of Section 350, Tariff Act of 1930 as amended by the
Act of July 5, 1945) on January 1,. 1945 if the article were not
dutiable under paragraph 1527, Tariff Act. of 1930."
10. In Item 1529 (a) [first] change "guage" to "gauge".
11. Add at end of list previously submitted:
Part II - Preferential Tariff
Item743 [first]
The description of products in the first Item 743 shall be
"Limes, in their natural state, or in brine."
Item 751
The words between the third comma and the colon in the
principal. description in Item 751 shalI be "and fruit butters". GATT/1/7
Page 4
1 March 1948
EXPLANATORY NOTES CONCERNING CHANGES IN GATT,
SCHEDULE XX, PROPOSED BY THE UNITED STATES
Most of the rectifications proposed are typographical or mechanical
in nature, generally arising from illegibility of the present text. In the
case of the following items, however, the changes are consequential:
Item 212 [second] (b)
This change is designed to rectify an inadvertent mistake in
the description near the top of page 23 (UN English edition) which
now reads:
"Other (except hotel and restaurant tableware and kitchenware
and hotel and restaurant table and kitchen utensils):"
The concessions set forth on page 22 are limited by specified
minimum values. Articles valued below these minima would be covered
by the description quoted above. It was not intended to make a
concession on any of the items on page 2 valued at lees than the
minima specified. Consequently, the language of the exception on
page 23 should be the same as that in the sub-description on page 22.
Item 720 (a) (1), (2), (3), (4), (5), and (6)
The inclusion in the agreement of the concession on unsmoked
boned herring at 1-1/4¢ per lb. would exceed the 50 per cent
limitation on the reductions which may be made under the Trade
Agreements Act, as amended, since the rate on January 1, 1945
for such herring was 3¢ per lb.
A concession on such unsmoked herring was not negotiated with
any country, but was initially included in the interest of
simplicity of language.
This change was made in the President's proclamation of
December 16, 1947 giving effect to the General Agreement.
Item 745
The bilateral offer list exchanged with the French Government
shows a 20% ad val. rate for prepared and preserved peaches, which
was inadvertently omitted in correcting the stencil which was used
in making the authenticated and certified copies of the agreement.
This addition has already been made in the President's production
of December '16, 1947.
/Item 806 (b) GATT/1/7
Page 5
Item 806 (b)
The rate of duty in the Tariff Act of 1930 for concentrated lime
and syrup was 70¢. In the 1938 Trade Agreement between the United
Kingdom and the United States, a concession of 35¢ was made on lime
juice only. Consequently, a further reduction in Item, 806 (b) to
20¢ for lime syrup would exceed the 50 per cent limitation on
reductions which may be made in trade agreements. Therefore, the
rate of 20 per cent must be limited to lime juice. Lime syrup will
fall into the "other" category at 35%.
This change also was made in the President's proclamation of
December 16, 1947.
Item 1503 [third]
The proviso to this item reduces by 50 per cent any rates
otherwise provide for on January 1, 1945 applicable to articles
coming within the item which, pursuant to other tariff paragraphs,
are higher than the rate of 30% ad val. specified for the item..
However, in Section 350 of the Tariff Act of 1930 (Trade Agreements
Act), as amended by the Act of July 5, 1945, the rate of duty
"existing" on January 1, 1945 is defined to exclude certain
emergency rates of duty, including those contained in Schedule III
of the 1943 Trade Agreement between the United States and Mexico.
Since certain of these emergency rates may be applicable to some of
the articles classified under paragraph 1503, the revised wording of
the proviso is designed to assure that the 50 per cent reduction
provided for therein shall be applicable to the rates of duty
"existing" on January 1, 1945
Item 1527 (a) (1) and (2)
See preceding explanation for Item 1503 [third]..
Item 1529 (a) [first]
This change is necessary in order to avoid making a concession
in excess of the 50 per cent limitation under the Trade Agreements Act.
In the 1936 trade agreement between the United States and France
the duty was reduced from 90 to 60% ad valorem on cotton laces, etc.
but limited to those "made with independent beams". Consequently, it
is not possible under the existing trade-agreements authority to
reduce the duty on such laces not made with independent beams below
45%. Under the revised language, these will be dutiable under the
/third GATT/1/7
Page 6
third sub-description, "'Other" at 45% ad valorem.
This rectification was made in the President's proclamation of
December 16, 1947 giving effect to the General Agreement.
Item 1786
The word "in" has been inserted in order to bring the language
into conformity with that of the Tariff Act of 1930. |
GATT Library | tk565rg6267 | Protocol of typographical to the Agreement | 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/1/19 and GATT/1/9-28+21/Add.1 | https://exhibits.stanford.edu/gatt/catalog/tk565rg6267 | tk565rg6267_90310293.xml | GATT_146 | 697 | 5,026 | RESTRICTED
GATT/1/19
11. March 1948
ORIGINAL : ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
FIRST SESSION OF THE CONTRACTING PARTIES
PROTOCOL OF TYPOGRAPHICAL TO THE AGREEMENT
With reference to the draft protocol. concerning typographical errors,
which was circulated as an annexue to document GATT/1/1 of 18 February,
the Cuban delegation. to the. First Meeting of the contracting parties now
being held in Havana, submits herewith a list of corrections which it
considers necessary to make to Schedule IX anex to the General Agreement
on Tariffs and Trade,
Corrections to Schedule IX - CUBA.
English text:
Part I - Most-Favoured-Nation Tariff
Item 56-A. (page 3)
now reads- shall read
"not negotiated." "5.75 per 100 Kgs."
Comment
The above mentioned duty would bring the most-favoured-nation rate
in conformity with the preferential rate negotiated and set forth on
Part II, thus keeping the same margin of preference in force on April 1947.
Item 56-B. (page 3)
now reads shall read
"not negotiated" "11.50 per 100 Kgs."
Comment
Same cent as to item 56-A above.
Item 113-A. (page 8)
Insert after 113 with the following text:
"113-A In skeins, spindles or in other forms
for mechanical manufacture of fabrics of all
kinds, cord or braid, T, 15% 3.15 per 100 Kgs."
Comment
This sub-item does not appear in Part I - Its inclusion is hereby
proposed in. order to conform with Part II, setting forth the corresponding
rate of duty so as to keep the same margin of preference in force on
10 April 1947.-
Item 115-H. /It~~~~~~~~~~~~~em. 115-H. GATT/1/19 Page 2
Item115-H. (page 9)
now reads shall read
"1,00 per Kg," "1,06 per Kg."
Comment
The rate of duty for this sub-item was described by error at
1.00 per Kg. when It should be 1.06 per Kg,, inmuch as only the binding
of the present rate of duty was negotiated. and agreed upon.
Item 127 azd sub-item 127.A . (page 12)
Delete these item and sub-item which were Included by mistake.
Item 128-A. (page 12)
now reads shall read
"not negotiated" "0.094 per Kg."
Comment
The above mentioned duty would bring the most-favoured-nation rate
in conformity with the preferential rate negotiated and set forth on
Part II, thus keeping the same margin of preference in force on 10 Aril 1947.-
Item 129-F. (page 13)
now reads shall read
"not negotiated" "0.46 per Kg."
Item 129-G. (page 13)
now reads shall read
"not negotiated" "13.5%., ad valorem"
Item 129-H. (page 13)
now reads shall read
"not negotiated" "0.32 per Kg"
Item 129-1. (page 13)
now reads shall read
"not negotiated" "0.29 per Kg."
Item 129-J (page 13)
now reads shall read
"not negotiated" "0.37 per Kg."
Item 129J. (page 13)
now reads shall reed
covered by a rubber ".,covered by a rubber
composition. . ." or synthetic rubber
composition.,."
Comments
All corrections in regard with the rate of duty sub-items of
item 129 above referred to are due to the same reason, i.e., to adjust
the margin of preference so as to maintain the margin in force on
10 April 1947.
/The correction GATT/1/19
Page 3
The correction proposed as regards the test of sub-item 129-J as
intended to confrom said text with the corresponding of Part II.
Item 142 and sub-items 142 A to F (page 18)
Delete this item and all sub-items A, B, C, D, E an F, which were
included. by mistake.
Item 152-F. (page 19)
now reads shall. read
..of bisulphite of soda.,," ",,,of bisulphite or soda..."
Item 314-B. (page 34)
now reads shall read.
"not negotiated" -"0.47 per Kg."
Item 314-C. (page 34)
"not negotiated" "0,455 per Kg."
Comment
Same comment as to Item 314-B above.
Part II Preferential Tariff
Item 98-H. (page 48)
insert "0.018 per Kg.," in the rate of duty column.
Comment
The rate of duty now proposed. to be inserted. was negotiated and.
agreed upon with the United States delegation in Geneva. - It was
inadvertently omitted,
Item. 127 and. sub-item 127-A. (page 57)
Delete these item and. sub-item which were included by mistake.
Item 142 and sub-items 142 A to F. (page 64)
Delete item 142 and. sub-items A, B, C, D, E and. F which were included
by mistake. |
GATT Library | wv700nx9275 | Protocol of typograpical corrections | General Agreement on Tariffs and Trade, March 13, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 13/03/1948 | official documents | GATT /1/24 and GATT/1/9-28+21/Add.1 | https://exhibits.stanford.edu/gatt/catalog/wv700nx9275 | wv700nx9275_90310299.xml | GATT_146 | 209 | 1,525 | RESTRICTED
GATT /1/24
13 March 1948
ENGLISH-FRENCH
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMERCE
FIRST SESSION OF THE CONTRACTING PARTIES
PREMIERE SESSION DES PARTES CONTRACTANTES
PROTOCOL OF TYPOGRAPICAL CORRECTIONS
PROTOCOLE RELATIF AUX CORRECTIONS TYPOGRAPHIQUTES
The following correction to La delegation des Etats-Unis
the English and French texts of the apres avoir consulte la delegation
Schedule of Brazil (Schedule III) has du Bresil, a presente la correction
been submitted by the United States suivante aux textes anglais et
delegation after consultation with frencais de la liste du Bresil
the delegation of Brazil (Liste III):
Part I - Most-Favoured-Nation Tariff
Item 230/5
The principal description
immediately preceding sub-item /5
shall read:
"Peaches- pears, apricots, apples,
cherries, plums, prunes, berries,
except strawberries, and mixed
fruits for salad made up chiefly
of the foregoing:"
The rate of duty for this item
shall be "4.20"
6121
Premiere Partie - Tarif de la Nation
la plus favorisee.
Position 230/5
La designation principale qui
precede immediatement la subdivision
/5 dcit se lire:
"Peches, poires, abricots, pommes,
cerises, prunes, pruneaux, baies, a
l'exception des fraises, ainsi que
fruits melanges pour salades
constituees principalement par les
fruits ci-dessus."
Le droit applicable a cette
position doit se lire "4,20". |
GATT Library | wx486yz0408 | Protocol on supersession. Article XXXV | 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/1/42 and GATT/1/29-46+38/Rev.1,40/Rev.1 | https://exhibits.stanford.edu/gatt/catalog/wx486yz0408 | wx486yz0408_90310319.xml | GATT_146 | 127 | 920 | RESTRICTED
GATT/1/42
18 March 1948
ENGLISH - FRENCH
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
FIRST SESSION OF THE CONTRACTING PARTIES
PROTOCOL ON SUPERSESSION
ARTICLE XXXV
New paragraph suggested by the representative of the United Kingdom:
"2. The CONTRACTING PARTIES may, at any time before the Charter
enters into force, review the operation of this Article in particular
cases at the request of any Contracting Party and make appropriate
recommendations."
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMERCE
PREMIERE SESSION DES PARTIES CONTRACTANTES
PROTOCOLE PORTANT SUBSTITUTIONS
ARTICLE XXXV
Nouveau paragraphe propose par le representant du Royaume-Uni :
"2. A la demande d'une partie contractante quelconque, les
PARTIES CONTRACTANTES pourront reviser les modalites d'application
du present article dans des cas particuliers et faire les recommandations
appropriees." |
GATT Library | pd002jk9788 | Protocols : Signed at Geneva on 14th September, 1948 | General Agreement on Tariffs and Trade, September 21, 1948 | General Agreement on Tariffs and Trade (Organization) | 21/09/1948 | official documents | GATT/CP/1 and GATT/CP/1+Corr.1 | https://exhibits.stanford.edu/gatt/catalog/pd002jk9788 | pd002jk9788_90070086.xml | GATT_146 | 10,604 | 68,231 | UNRESTRIECTED
GATT/CP/1
21 September 1948
ORIGINAL: ENGLISH/FRENCH
GENERAL AGREEMENT ON TARIFFS AND TRADE
P R O T 0 C O L S
Signed at Geneva on 14th September, 1948
and
RESOLUTIONS AND DECISIONS OF THE CONTRACTING PARTIES
At the First and Second Sessions,
Havana, March 1948, and Geneva August-September, 1948. GATT/CP/1
Page 2.
TABLE OF CONTENTS Page
Protocols signed at Geneva on on 14th September, 1948:
1. Protocol for the Accession of Signatories of the
Final Act of October 30, 1947. 3
2. Second Protocol of Rectifications. 5
3. Protocol Modifying Part II and Article XXVI. 8
14. Protocol Modifying Part I and Article XXIX. 22
Decision taken by the Contracting Parties at the First Session,
Havana, March, 1948.:
5. .Decision taken on March 20, 1948, concerning the
Formation. of a Customs Union between France and Italy. 27
Decisions taken by the Contracting Parties at the Second
Session, Geneva, August-September, 1948:
6. Decision taken on September 7, 1948, concerning the
Request of the Government of Brazil for Withdrawal of
Concessions in Schedule III. 29
7. Decision taken on September 8, 1948, concerning a Waiver
in respect of the Trust Territory of the Pacific
Islands. 31
8. Decisions taken on September 14, 1948, concerning the
Application of Article XVIII. 33
Resolutions adopted by the Contracting Parties at the Second
Session, Geneva, August-September, 1948:
9. Resolution adopted on A gust 28, 1948, concerning the
Reservation of the Government of Ceylon to the Protocol
of Provisional Application. 35
10. Resolution adopted on September 7, 1948, concerning the
Applicability of Article XXIII to Signatories of the
Final Act of October 30, 1947, failing to sign the
Protocol of Provisional Application by June 30, 1948. 36 GATT/CP/1
page 3
PROTOCOL FOR THE ACCESSION OF SIGNATORIES OF THE
FINAL ACT OF OCTOBER 309 1947.
CONSIDERING the fact that the Protocol of Provisional
Application. of the General Agreement on Tariffs and Trade,
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
considered 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,
provisionally in accordance with the provisions of paragraphs
1(a), 1(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 been 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 much governmental becomes a contracting party,
whichever is the later.
2. Such provisional. applicatfon shall take effect for
any such government on the thirtieth day after the signature
hereof by such governments, Provided such signature is affixed
before February 17, 1949; 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 Agreement. 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 14th day
of September, 1948. GATT/C P/1
page 4
This Protocol has been signed by the following
countries:
Commonwealth of Australia
Kingdom of Belgium
United States of Brazil
Burma
Canada
Ceylon
Republic
Republic
of China
of Cuba
French Republic
India
Lebanon
Grand Duchy of Luxembourg
Kingdom of the Netherlands
New Zealand
Kingdom of Norway
Pakistan
Syria
United Kingdom of Great Britain and Northern
Ireland
United States of America GATT/CP/1
page 5
SECOND PROTOCOL OF RECTIFICATIONS TO
THE 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 Chinay 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, acting in their capacity of
contracting parties to the General Agreement on Tariffs
and Trade, and
THE GOVERMENT of the Republic of Chile, acting in
its capacity of signatory of the Final Act adopted at the
conclusion of the Second Session of the Preparatory Committee :
of the United Nations Coeforence on Trade and pEmlmyient
which authenticated theet'xt of the General Agreement on
Tariffs and Tra,e9
VUXING noted that certain further rectifications should
bm nade in the authenticetcxts of the Schedules forrming part
of the General Aeemoient on Tariffs and Tra,eo
REBY AGREE E.that the following rectifications shall
be made in the Schedule to the General Agrmenont on Tariffs
and Trade:
HEDULE MEVII- IN ONOF SOUTHFR AICA
(This Schedule is authentic only in the English language)
PART I
~~~~~~~~ ..(.w_
In the Eeglish eext of itom 224 ox (d) the description
of aroducts shall reod:
"maffeinmetitheobronine, e9methol"d natural rnethol
SIDJ~E.AE - UMERIDAST.TES OF A}IEIC4
(This Schedule is authentic only in the English language)
£tT u~ $
n Tarif-Fnvourcd-to~nTM 4ff
In the mnglish tox- of iten 708(a) the principal
description shall be:
"Mill. condensed or evaporated: " GATT/CP/1
page 6
Item 1110
In the English text of item 1110 the rate of duty
shall be:
"33¢ per 1b. and 25% ad val.."
In the English text of the third item 1503 the
proviso shall read:
"Provided, That for the purpose only of applying
the second proviso to paragraph 1503, Tariff Act
of 1930, to articles provided for in this item,
each rate of duty "existing" (within the meaning
of Section 350, Tariff Act of 1930, as amended
by the Act of July 5, 1945) on January 1, 1945,
shall be reduced by 50 per centum of such rate."
The provisions of this Protocol shall on and after this
day constitute an integral part of the General Agreement on
Tariffs and Trade, dated October 30, 1947, and the rectifi-
cations included heroin shall be applied as if they had
formed a part of said Agreement on that date.
The original of this Protocol shall be deposited with
the Secretary-Genera1 of the United Nations, who is
authorized to effect registration thereof,
IN WITNESS WHERE OF 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 14th day
of September, 1948. GATT/CP/1
Page 7.
This Protocol has been signed by the following
Commonwealth of Australia
Kingdom of Belgilum
United States of Brazil
Burma
Canada
Ceylon
Republic
Republic
Republic
countries:
of Chile
of China
of Cuba
Czechoslovak Republic
French Republic
India
Lebanon
Grand Duchy of Luxembourg
Kingdom of the Netherlands
New Zealand
Kingdom of Norway
Pakistan
Southern Rhodesia
Syria
Union of South Africa ,
United Kingdom of Great Britain and Northern Ireland
United States of America page 8
PROTOCOL MODIFYING PART II AND ARTICLE XXVI
OF THE 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 China, the Republic of
Cuba, the Czechoslovak Republic, the FrenchRepublic, India,
Lebanon, the Grand Duchy of Luxemburg, the Kingdom of the
Notherlands, 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, acting in their capacity of
contracting parties to the General Agreement on Tariffs
and Trade (hereinafter reforred to as the Agreement),
Desiring to effect an amendment to the Agreement,
pursuant to the provisions of Article XXX thereof,
HEREBY AGREE AS FOLLOWS:
The texts of Articles III, VI, XIII, XVIII and
XXVI of the Agreement and certain related provisions in
Annex 1 shall be modified as follows:
A
The text of Article III shall read:
National Treatment on Internal on Internal Taxation and Regulation
1, The contracting parties 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
domstic production.
2. The products of the territory of any contracting
party imported into the territory of any other contracting
party shall not be subjct, directly or indirectly, to
internal taxes or other internal charges of any kind in
excess cf those applied, directly or indrectly, to like
domestic products Moreover, no contracting party shall
otherpaise, apply internal taxes or othr 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 provisins 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 GATT/CP/1
page 9
application of the provisions of paragraph 2 to such tax
until such time as it can obtain release from the obli-
gations of such trade agreement in order to permit the
increase of such duty to the extent necessary to comapensate
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 internal sale, offering for sale purchase, trans-
portation, 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 quintitative regulation i force in the territory
of any contractihg 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 , shall not be modified to the
detriment of imports and shall be treated as a customs duty
for the purpose of negotiation.
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 procure-
ment by governmental 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 purchases of domestic products.
9. The contracting parties recognize that internal
maximum price control measures, even though conforming to GATT/CP/l
Page 10
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 exporting contracting parties with a vie'. to
avoiding to the fullest practicable extent such prejudicial
effects.
10, The provisions of this Article shall not prevent any
contracting party from establishing or maintaining internal
quantitative regulations relatng to exposed cinematograph
films and meeting the requirements of Article IV."
B
Tho text of Article VI shall read:-
"Article VI
Anti-dumping and Counterveailing Duties
1. The contracting parties recognize that dumping, by
which products of one country are introduced into the
co:-,-.erce of another country at less than the normal value
of the products, is to be concerned 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 introduced 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 nrice 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.
Dtie allowance shall be made in each case for differences in
conditions and terms of sale, for differences in taxation,
and frJr 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 product. For the purposes of this Article, the GATT/CT/l
Page 11.
margin of dumping is the price difference determined in
accordance with the provisiors 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 equal to the estimated bounty or subsidy determined
to have been granted, directly or indirectly, on the manu-
facture, 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
"countervailing 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 manu-
facture, production or export of any merchandise.
4. No product of the territory of any contracting party
imported into the territory of any other contracting party
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 the territory of any contracting party
imported into the territory of any other contracting party
shall be subject to both anti-durmping and countervailing
duties to compensate for the sane situation of dumping or
export subsidization,,
6. No contracting party shall levy any anti-dumping or.
countervailing duty on the importation of any product of
the territory of another contracting party unless it
determines 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 domestic
industry. The CONTRACTING PARTIES may waive the require-
ments of this paragraph so as to permit a contracting party
to levy an anti-dumping or countervailing duty on the
importation of any product for the purpose of offsetting
dumping or subsidization which causes or threatens material
injury to an industry in the territory of another contrac-
ting party exporting the product concerned to the territory
of the importing contracting party.
7, 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 presumed not to result in material injury within
the meaning of paragraph 6 if it is determined by consulta-
tion 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 GATT/CP/1
page 12
(b) the system is so operated either because of the
effective regulation of production, or otherwise,
as not to stimulate exports unduly or otherwise
seriously .prejudice the interests of other
contracting parties . "
C
The phrase "and to any internal regulation or require-
ment under paragraphs 3 and 4 of Article III" in paragraph
5 of Article XIII shall be deleted.
D
The opening clause of paragraph 9 of Article XV shall
read:-
"9. Nothing in this Agreement shall preclude:".
E
The text of Articl e XVIII shall read:-
"Article XVIII T 1_.
Govermentil AssIstancc tomic,ono-I Development
; ", ,. , ," -_ "- ..` - . ..
&nciReconstr~rcoxn
1. The contracting parties recognize that special govern-
mental assistance may lu requi:iL to promote the establish-
ment, development or rocunstruction of particular industries
or branches of agricIuItUre, and ahat In appropriate cir-
cmrsmances the grant of such ass-stance in the forn of
protective measures is justified, At the saxe time they
recognize that an unwise use of such measures would impose
umdue burdens on their own econoi:es and unwarranted
restrictions on internati-nal trade, and light increase
unnecessarily the difficulties of adjustment for the econo-
mies of other counteies.
2. The CONTRACTING PARTIES and the contracting parties
concerned shall preserve the utmost secrecy in respect of
matters arising under tlis Article.
" A
3. If a contracting pcrty, in tho interest of its economic
development or reconstruction, or for the pirpose of increa-
sing a most-favoured-rotion ;ate of duty in connection
with the establishment of a new preferential agreement in
accordance with Lhe prrvisonil^of par-graph 3 of Article I,
minsiders it desirable to adopt any notr,* scrinnatory
measure affecting iLuoor' which xould conflict with an
obligation which the contacting party has assumed under
Article II of this Agreement, but which would not conflict
with other provisions in t?is A .ement, such contracting
party GATT/CP /1
page 13
(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 the CONTRACTING PARTIES. The CONTRACTING
PARTIES shall determine the contracting party
or parties materially affected by the proposed
measure 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 timie schedule which
may have been proposed by the applicant contrac-
ting party, The contracting parties shall
commence and proceed continuously with such
negotiations in accordance with. the time schedule
established by the CONTRACTING PARTIES. At the
request of a contracting party, the CONTRACTING
PARTIES nay where they concur in principle with
the proposed measures assisting 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 para-
graph 3 there should be an increase in imports of any
product concerned 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 industry or branch of agriculture
concerned, and if no preventive measures consistent with
the provisions of this Agreement can be found which seem
likely to prove effective the applicant contracting party
may, after informing, and when practicable consulting with,
the CONTRACTING PARTIES, adopt such other measures as the
situation may requires 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 representatives 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 con-
tinued, discontinued or modified. It shall in any case
be terminated as soon as the CONTRACTING PARTIES determine
that the negotiations are completed or discontinued. GATT/CP/1
Page 14
(c) It is recognized that the relationships between
contracting parties under Article II of this Agreement
involve reciprocal advantages, and therefore any contrac-
ting 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 concerned has consulted the CONTRACTING
PARTIES before taking. such action and the CONTRACTING
PARTIES do-not disapprove.
In the case of any non-discriminatory measure affect-
ting 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 provisions of paragraph 4 shall
also be applicable in this case.
6. If a contracting party in the interest of its economic
development or reconstruction considers it desirable to
adopt any non-discriminatory 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 CONTRACTING PARTIES a written statement of
the considerations in support of the adoption, for a
specified period, of the proposed measure.
(a) On application by such contracting parity 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 be 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 constrictions imposed abroad; or GATT/CP/1
Page 15.
(iii) is necessary in 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 the 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 applicant
contracting 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 restrictive of inter-
national trade than any other practicable and
reasonable measure permitted under this Agree-
ment, 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 pleasure, 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) 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) rmay enter into direct consultations with the
contracting party or parties which in its
judgment, would be materially affected by the
measure. At the same time, the contracting
party shall inform the CONTRACTING PARTIES of
such consultations in order to afford them an
opportunity to determine whether all materially
affected contracting parties fare included within
the consultations. Upon complete or substantial
agreement being reached, the contracting party
interested in taking the measure shall apply to GATT/CP/1
Page 16
the CONTRACTING PARTIES. The CONTRACTING
PARTIES shall promptly examine the application
to ascertain whether the interests of all the
materially affected contracting parties 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 contracting 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 then 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 contrac-
ting party or parties, immediately release
the applicant contracting party from its
obligations under the relevant provision of
this Agreement; or
(ii) if there is objection, promptly examine the
proposed measure having regard to the
provisions of this Agreement, to-the con-
siderations presented by the .applicant con-
tracting party and its need for economic
development or reconstruction, to the views
c'the contracting party or partic s determined
to be materially affected and to the effect
which the proposed pleasure, with or without
modification, is likely to have immediately
and in the long run, on international trade,
and, in the long run, on tho 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 treasure with or without
modification they shall release the appli-
cant contracting party from i ts obligation
under the relevant provision of this Agreement,
subject to such limitations as they may impose. GATT/CP/1
Page 17
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, develop-
ment or reconstruction of the industry or branch of
agriculture concerned, and if no preventive measures con-
sistent with this Agreement can be found which seem likely
to prove effective the applicant contracting party may
after iniforming, and when practicable consulting with, the
CONTRACTING PARTIES, adopt such other measures as the
situation may require, pending a decision by the CONTRACTING
PARTIES on the 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 an application under the provisions of para-
graph 7 or sub-paragrfaphs (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 obligation. 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 dat set, the period may be extended
after consultation with the applicant contracting party.
If the applicant contracting party is not so notified by
the date set, it may, after informing the CONTRWCTING
PARTIES, institute the proposed measure.
11. Any contracting party may maintain any non-discri-
minatory protective measure affecting imports in force on
September 1 1992 which has been imposed for the establish-
ment, development or reconstruction of a particular
industry, or branch of agriculture and which is not other-
wise permitted by this Agreement; Provided that notifi-
cation 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 purpose..
20 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
contracting party becomes a contracting party, examine and
give a decision concerning, the measure as if it had been
submitted to the CONTRACTING PARTIES for their concurrence
under paragraphs 1 to 10 inclusive of this Article.
13, The provisions of paragraphs 11 and 12 of this
Article shall not apply to any measure relating to a
product in respect of which the contracting party has GATT/CP/1
page 18
assumed an obligation. 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."
F
Sub-paragraph (b) and the designation "(a)" in
paragraph 5 of Article XXVI shall be deleted.
G
(i) The following shall be inserted in Annex I
immediately after the interpretative notes relating to
Article II:-
"ad Article
Any internal tax or other internal charge, or any
law, regulation or requirement of the kind referred to in
paragraph 1 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 neverthless 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 III.
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 4
of tha final parngraph of Article XXIV. The term
"measonable n eourla" irithe Test-mentionod paragraph would
,not require for example, the repeal of existing national
legislation authorizine nmeal govoriMints to impose internal
taxes wlhh, although technically inconsistent with the
letter of Article III are not in fact inconsistent with
its spirit, if such repeal would result in a serious
financial hardship for theelnmal govorriehts or autiorities
conncrnod. With regard to taxation by local governments
or authorities which is inconsistent with both the letter
and spirit of Article III,. the term "rmeaasonable esures"
would peoit a contracting party to eliminate the incon-
sistent taxation gradually over a transition period, if
abrupt action would create serious administrative and
financial difficulties.
r 2
formx coniuraing to theerequiremrnts of the first
sentence of paragraph 2 would be considered to be incon-
sistent with the provisions of the second sentence only in GATT/ CP/1
page 19
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
arc 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. "
(ii) The texts of the interpretative notes to
Article VI in Annex I shall read:
"ad Article VI
Paraarah1
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 experting
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 arc 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.
Note 2.
Multiple currency practices can in certain circumstan-
ces 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
country's currency which may be net by action under
paragraph 2. By "mualtiple currency practices" is meant
practices by governments or sanctioned by governments."
(iii) The following shall be inserted in Annex I
immediately after the interpretative notes relating to
Article XVII:- GATT/CP/1
page 20
"ad Article XVIII
Paragraph 3
The clause referring to the increasing of a most-
favoured-nation rate in connection with a now preferential
agreement will only apply after the insertion in Article I
of the now 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, 1918.
Paragraph 7 (a) (ii) and (iii)
The word "processing", as used in these sub-
paragraphs means the transformation of a primary commo-
dity or of a by-product of such transformation into semi-
finished or finished goods but does not refer to highly
developed industrial processes."
2. This Protocol shall, following its signature at the
close of the Second Session of-the CONTRACTING PARTIES, be
deposited with the Secretary-General of the United Nations.
3, The deposit of this Protocol will, as from the
date of deposit, constitute the deposit of the instrument
of acceptance of the amendment set out in paragraph 1
of this Protocol by any contracting party the representa-
tive of which has signed this Protocol without any reser-
vation.
4. The instruments of acceptance of those contracting
parties which have not signed this Protocol, or which
have signed it with a reservation as to acceptance, will
be deposited with the Secretary-General of the United
Nations .
5'. The amendment set out in paragraph 1 of this Protocol
shall, upon the deposit of. instruments of acceptance
pursuant to parabraphs 3 and 4 of this Protocol by two-
thirds of the governments which are at that time contrac-
ting partios enter into force in accordance with the
provisions of article XXX of the. Agreement.
6. The Secratary-General of the United Nations will
informl all interested governments of each acceptance of
the amendment set out in this Protocol and of the date
upon which such amendment enters into force.
7. The Secretary-General.is authorized to effect regis-
tration of this Protocol at the appropriate time,
IN WITNESS WHEREOF the respective representatives duly
authorized to that effect have signed the present
Protocol.
DONE, at Geneva, in a single copy, in the English and
French languages, both texts authentic, this 14th day of
September one thousand nine hundred and forty-eight. GATT/CP/1
Page 21.
This Protocol
has been signed by
the following
countries:
Commonwealth
of Australia
(ad referendum)
Kingdom of
Belgium
United States
of Brazil
(ad referendum)
Canada (ad referendum)
Ceylon (ad referendum)
Republic of China (ad referendum)
Republic of Cuba
Czechoslovak Republic
(ad referendum)
French Republic
India (ad referendum)
Lebanon
Grand Duchy of
Luxembourg
Kingdom of the Netherlands
New Zealand (ad referendum)
Kingdom of Norway
Pakistan
Syria
Union of South
United Kingdom
Africa (ad
referendum)
of Great Britian and Northern
(ad referendum)
Ireland
States of America
United GATT/CP/1
page 22
PROTOCOL MODIFYING PART I AND ARTICLE XXIX OF
THE 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 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, acting in their
capacity of contracting parties to the General Agreement
on Tariffs and Trade (hereinafter referred to as the
Agreement),
Desiring to effect an amendment to the Agreement,
pursuant to the provisions of Article XXX thereof,
HEREBY AGREE AS FOLLOWS:
2., The texts of Articles I, II and XXIX of the Agreement
and certain related provisions in Annexes A and I shall
be modified as follows.-
(i) The phrase "paragraphs 1 and 2 of Article III"
in paragraph 1 of Article I shall read: "para-
graphs 2 and 4 of Article III".
(ii) The phrase "paragraph 3 of this Article" in para-
graph 2 of Article I shall read "paragraph 4 of
this Article".
(iii) Paragraph 3 of Article I shall be renumbered
paragraph 4 of that Article and the following
paragraph shall be inserted as a new paragraph 3
thereof:-
"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, provided
such preferences are approved under sub-
paragraph 5(a) of Article XXV which shall be
applied in this respect in the light of
paragraph I of Article XXIX. "
B
The phrase "paragraph 1 of article III" in paragraph
2(a) of Article II shall read "paragraph 2 of Article III".
C
The text of Article XXIX shall read:- GATT/CP/1
page 23
"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
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 Chaiter 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 con-
tracting par ties, shall be supplemented or amended,
Pending such agreement the provisions of Part II of this
Agreement shall, notwithstanding the provisions of para-
graph. 2 of this Article, continue to apply as between
such contracting party and other contracting parties.
6. Contracting parties which are Members of the Inter-
national 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."
The following paragraph shall be added at the con..
clusion of Annex A relating to Article I:-
"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." GATT/ C P/1
page 24
(i) The phrase "paragraphs 1 and 2 of Article III"
in the interpretative note, to paragraph 1 of Article I in
Annex I shall read "paragraphs 2 and 4 of Article III".
(ii) The following new paragraph shall be inserted
at the end of the interpretative note to paragraph 1 of
Article I in Annex I:-
"The cross references, in the paragraph imme-
diately. above and in paragraph 1 of Article 1,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."
(ii) The heading Paragraph 3" in the interpretative
note to Article I in Annex I shall read: '"Paragraph 4".
(iv) The following shall
immediately after the heading
be inserted
"ad Article
in Annex I
II ": -
"Paragraph 2
(a)
The cross reference in paragraph 2 (a) of
Article 11, to paragraph 2 of Article III shall only
apply aftor 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 4, 1948".
(v) The
of Article II
text of
in Annex
the
interpretative note to paragraph 4
shall read:-
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."
(vi
inserted
note to
i) The following interpretative
I in Annex I immediately after
Article XXVI: -
note shall be
the interpretative
"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."
"Paragraph 4 GATT/C P/1
page 25
2. This Protocol shall, following its signature at the
close of the Second Session of the CONTRACTING PARTIES
be deposited with the Secretary-General of the United Nations,
3, The deposit of this Protocol will, as from the date
of deposit, constitute the deposit of the instrument of
acceptance of the amendment set out in paragraph 1 of this
Protocol by any contracting party the representatives of
which has signed this Protocol without any reservation,
41 The instruments of' acceptance of those contracting
parties which have not signed this protocol, or which have
signed it with a reservation as to acceptance, will be
deposited with the Secretary-General of the United Nations,
The amendment set out in paragraph 1 of this Protocol
shall upon the deposit of instruments of acceptance
pursuant to paragraph 3 and 4 of this Protocol by all the
governments which are at that time contracting parties,
enter into force in accordance with the provisions of
Article XXX of the Agreement,
6. The Secretary-General of the United Nations will
inform all interested governments of each acceptance of the
amendment set out in this Protocol and of the date upon
which such amendment enters into force.
7 The Secretary-General is authorized to effect regi-
stration of this Protocol at the appropriate time.
IN WITNESS WHERE OF the respective representatives,
duly authorized to that effect, have signed the present
Protocol,
DONE, at Geneva in a single copy, in the English and
French languages, both texts authentic, this 14th day of
September one thousand nine hundred and forty-eight. GATT/CP/1
Page 26
This Protocol has
been signed
by the following
countries:
Commonwealth
Kingdom
of Australia
of Belgium
United States
of Brazil
(ad referendum)
Canada (ad referendum)
Ceylon (ad referendum)
RCpublic of China (ad referendum)
Republic of Cuba
Czechoslovak
R public
(ad referendum)
French Republic
India (ad referendum)
Lebanon
Grand Duchy of
Kingdom
New Zealand
Kingdom
Luxembourg
of the Netherlands
(ad referendum)
of Norway
Pakistan
Southern Rhodesia
(ad referendum)
Syria
Union of
South Africa
(ad referendum)
United Kingdom of
Great Britain
and Northern Ireland
States of America
United GATT/CP/1
page 27
DECISION TAKEN BY THE CONTRACTING PARTIES
AT THE FIRST SESSION, HAVANA, MARCH, 1948 .
DECISION TAKEN ON MARCH 20, l948, CONCERNING THE FORMATION OF
A CUSTOMS UNION BETWEEN FRANCE AND ITALY
The CONTRACTING PARTIES DECIDE in terms of paragraph 5
of Article XXV that the provisions of the General Agreement
on Tariffs and Trade shall not prevent the establishment of
a customs union or interim agreement for a customs union
between France and Italy which union or agreement conforms to
the following requirements:
1. (a) 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 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) Any interim agreement referred to in sub-
paragraph (a) above shall include a plan and
schedule for the attainment of such a customs
union within a reasonable length of time.
2. If in fulfilling the requirements of sub -paragraph
1 (a), one of the parties proposes to increase any rate
of duty inconsistently with the provisions of Article
II of the General Agreement on Tariffs and Trade, the
procedure set forth in Article XXVIII of that Agreement
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.
3. (a) The two parties, deciding to enter into a
customs union or an interim agreement leading to the
formation of such a union, shall promptly notify the
CONTRACTING PARTIES and shall make available to them
such information regarding the proposed union as will
enable them to make such reports and recommendations
to contracting parties as they may deem appropriate.
(b) If, after having studied the plans and
schedules provided for in an interim agreement under
paragraph 1, in consultation with the parties to that
agreement and taking due account of the information
made available in accordance with the terms of sub-
paragraph (a), the CONTRACTING PARTIES find that such
agreement is not likely to result in a customs union GATT/CP/1
page 28
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. 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 substantial change in the plan or schedule
shall be notified to the CONTRACTING PARTIES which may
request the two parties concerned to consult with them if
the change seems likely to jeopardize or delay unduly the
achievement of the customs union.
4. (a) A customs union shall be understood to lean the
substitution of a single customs territory for two or more
customs territoriess, so that
(i) tariffs and other restrictive regulations of
commerce (except, where necessary, those
permitted undr Articles XI, XIII XIII, XIV,
XV, XX and XXI of the General Agreement on
Tariffs and Trade) 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 comerce 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;
5. The preferences referred to in paragraph 2 of
Article I of the General Agreement on Tariffs and Trade
shall not be affected by the constitution of a customs
union 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 sub-paragraph
(a) (i) of paragraph 4.
_ _ GATT/CP/1
Page 29
DECISIONS TAKEN BY THE CONTRACTING PARTIES AT THE SECOND
SESSION, GENEVA, AUGUST-SEPTEMBER, 1948.
6. DECISION TAKEN ON SEPTEMBER 7, 1948, CONCERNING THE REQUEST
0F THE GOVERMENT OF BRAZIL.
FOR WITHDRAWAL OF CONCESSIONS IN
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 Trade 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:
Brazilian Tariff Description of Products Rate of Dut
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.K4. 0.84
1530 Penicillin, pure......... 25% ad
Ex - 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 of the binding
or reduction of existing duties on any product or products
imported into Brazil, whether or not such products are now GATT/CP/1
Page 30
described in Schadule 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 effects GATT/CP/1
Page 31
7. DECISION TAKEN ON SEPTEMBER 8,1948, CONCERNING A WAIVER
IN RESPECT OF THE TRUST TERRITORY OF THE PACIFIC ISLANDS
The CONTRACTING PARTIES, acting pursuant to paragraph
5 (a) of Article XXV of the General Agreement on Tariffs
and Trade,
Taking note of the request of the Government of the
United States with respect to the establishment of preferen-
tial treatment for imports into the United States from the
Marshall, Caroline and Marianas Islands (other than Guam),
which islands were formerly hold by Japan under mandate and
which, by agreement with the security Council of the United
Nations approved on April 2, 1947 have boon placed under
the trusteeship system of the Unitd Nations with the United
States as the administering authority,
Considering that while under Japanese mandate, the
exports of such islands were entitled to preferential treat-
ment in the market of the metropolitan territory of Japan,
upon which such exports were substantially dependent, and
that such preferential treatment has been terminated upon
the establishment of the trusteeship under the administra-
tion of the United States,
Considering further that while under Japanese mandate
such islands applied a system of preferential treatment for
imports from Japan, which system will, under United States
administration, be replaced by a system of non-discriminatory
treatment for the goods of all countries,
And considering further that the replacement of prefer-
ential entry for the exports of such islands into the market
of Japan by preferential entry into the market of the
United States is not in view of the nature and small volume
of the production and trade involved and of the underlying
economic factors affecting such production and trade, likely
to result in substantial injury to the trade of any of the
contracting parties,
HEREBY DECIDE AS FOLLOWS:
1. Subject to paragraph 2 of this Decision, the
provisions of paragraph 1 of Article I of the General
Agreement on Tariffs and Trade shall be waived to the extent
necessary to permit the Government of the United States
(a). to accord duty-free treatment except as
otherwise provided for in paragraph (b), to all
products of the Trust Territory of the Pacific Islands
imported into the customs territory of the United
States without obligation thereby to extend the sane
treatment-to the like products of the other contracting
parties, and
(b) to accord, in respect of products of the
Trust Territory of the Pacific Islands.imported into
the customs territory of the United States, the same GATT/CP/1
Page 32
rate of internal tax on the processing of coconut-oil
(or, if such internal tax should be converted into
the equivalent import duty, the same rate of equivalent
duty) as may be applied consistently with the General
Agreement on Tariffs and Trade, in respect of the like
products of the Philippine Republic, without obligation
to extend the same treatment to the like products of
the other contracting par-ties.
2. The margins of preference created upon the
institution of the treatment provided for in paragraph 1
shall thereafter be bound against increase in the same
manner as other preferences under the General Agreement on
Tariffs and Trade and for this purpose the date of April
10, 1947, referred to in sub-paragraphs (a) and (b) of the
final paragraph of Article I of the General Agreement shall
be replaced by the date on which such treatment is instituted;
such date shall be notified to the CONTRACTING PARTIES by
the Government of the United States.
3. In the event that the underlying economic factors
affecting the production and trade of the Trust Territory
of the Pacific Islands should change so that the preferences
authorized by this Decision should result or threaten to
result in substantial injury to the competitive trade of
any contracting party, the CONTRACTING PARTIES, upon the
request of any affected contracting party, shall review
this Decision in the light of all relevant circumstances. GATT/CP/1
page 33
8. DECISIONS taken on September 14, 1948 concerning
the application of Article XVIII
The CONTRACTING PARTIES,
exercising their power of waiver under paragraph 5
(a) of Artiele XXV of tne General Agreement on Tariffs and
Trade
HAVING considered the circumstances relating to the
notification by October 10 1947 of measures under paragraph
6 of Article XVIII in force on September 1, 1947, in over-
seas territories for which the United Kingdom has international
responsibility
DECIDE that with the exception of the date by which
notification of existing measures is required, the provisions
of paragraph 6 of Article XVIII shall apply to measures to
restrict the import of tea into Mauritius and of "filled
soap" into Northern Rhodesia in force on September 1, 1947,
notified by the Goverment of the United Kingdom on August
23, 1948.
II
The CONTRACTING PARTIES
exercising the power of waiver under paragraph 5 (a)
of Article XXV of the General Agreement on Taraffs and
Trade,
HAVING noted the circumstances prevailing in the
Netherlands Indies on September 1, 1947
DECIDE that the provisions of paragraph 6 of Article
XVIII with the exception of the dates of September 1, 1947
and October 10 1947 shall apply to the following measures
of the type referred to in that paragraph notified in respect
of the Netherlands Indies) on August 23, 1948:
1935 No. 86 - cement - latest bylaw 1940 No. 469
1935 No. 341 - iron frying pans - latest bylaw 1940
No. 259
1936 No. 542 - beer latest bylaw 1940 No. 475
1934 No. 678 - coloured woven textiles (sarongs)
latest bylaw 1940 No. 229
1936 Now 65 - some categories of cotton textiles
which can be woven on sarong looms
latest bylaw 1940 No. 431 GATT/CP/1
page 34
III
The CONTRACTING PARTIES
exercising their power of waiver under paragraph 5 (a)
of Article XXV of the General Agreement on Tariffs and
Trade,
HAVING noted that decisions under the provisions of
paragraph 6 of Article XVTII of the Agreement concerning
measures notified by the Governments of Cuba and the
Netherlands (the latter in respect of the Netherlands Indies)
shall be given by January 16, 1949, and April 10, 1949
respectively and
HAVING noted that the next season of the CONTRACTING
PiARTIES is not scheduled to be held until April 1949 and that
it is not possible to make the required decisions at the
current session
DECIDE that .the decisions in respect of the above
mentioned measures shall be given at the Third Session of
the CONTRACTING PARTIES. GATT/CP/1
page 35
RESOLUTIONS ADOPTED BY THE CONTRACTING PARTIES
AT THE SECOND SESSIONS GENEVA AUGUST-SEPTEMBER, 1948
9. RESOLUCTION ADOPTE ON AUGUST
CONCERNING THE RESERVATION OF THE
GOVERNMENT OF CEYLON TO THE PROTOCOL
OF PROVISIONAL APPLICATION
"THE CONTRACTING PARTIES
Having considered the reservation made by the
Government of Ceylon at the time of the signing of the
Protocol of Provisional Application of the GATT, and
Taking note of the reference of the matter to the
CONTRACTING PARTIES by the Government of Ceylon and the
statement of its representative expressing the readiness of
his Goverment to re-open negotiations with any of the
other contracting parties in respect of the tariff items
concerned at any convenient time and place,
Recommend under Article XXIII that the Government of
Ceylon renegotiate with the contracting parties concerned not
later than during the tariff negotiations, which are expected
to commence in April 1949, and use its best endeavours to
achieve a satisfactory adjustment."
In recommending the adopLton of this resolution the
Working Party wishes to express its opinion that the case of
Ceylon was considered in the light of the present special
difficulties of this country and should not serve as a prece-
dent for other cases which should be treated in accordance
with the particular circumstances. GATT/CP/1.
page 36
10. Resolution adopted on September 7,1948,
Concerning 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.
_ on
CONSIDERING that Article XXXIII of the General
Agreement on Tariffs and Trade provides for the accession
to tho General Agreement of governments not "party" to that
Agreement and
CONSIDERING the fact that the Protocol of Provisional
Appiicaton 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
Prmparatory Cormittee for the United Nations Conference on
Trade and Employment, signed Octo.er 30, 19470
THE CONTRACTING PARTIES resolve that a government
signatory of the Final Act of October 30, l947 on behalf of
which the Protocol of Provisional Application was not signed
by June 30, 1948 shall not be c nsidered to.be a "party"
within the meaning of Article XXXIII of the General Agreement
in its Provisional Application and consequently that any such
government may accede to such Agreement pursuant to the
proviscons of Artiole XXXIII. |
GATT Library | nk703fj0116 | Provisional agenda | General Agreement on Tariffs and Trade, July 19, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 19/07/1948 | official documents | GATT/CP.2/6 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/nk703fj0116 | nk703fj0116_90320014.xml | GATT_146 | 413 | 2,732 | RESTRICTED
GATT/CP.2/6
19 July 1948
ORIGINAL : ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
Contracting Parties
Second session
PROVISIONAL AGENDA
1. Adoption of rules of procedure .(see GATT/CP.2/3).
2. Election of Chairman and Vice-Chairman.
3. Adoption of agenda.
4. Replacement of General Agreement provisions (other than
Articles XTV and XXIV) by the corresponding provisions of
the Havana Charter in advance of the entry into force of
the Charter:
(a) Replacement of all Part II provisions, or
(b) Replacement of particular Part II provisions.
5. Amendment of Article XXIX - Insertion of a second sentence
in paragraph 3, and addition of paragraph 6 (see GATT/1/21)
and paragraph I (to be proposed by the Government of the
Netherlands).
6. Development of procedures for carrying out consultation
between, and for action by, the Contracting Parties during
periods between sessions of the Contracting Parties.
7. Note on the Status of the Agreement and Protocols (see
GATT/CP.2/4 ).
8. Request of the Government of Chile for an extension of time
to decide upon adherence to the Protocol of Provisional
Application (see GATT/CP.2/5).
9. Scheduling of future tariff negotiations (see GATT/CP.2/7).
10. Request of the Government of Greece to accede to the Agreement
(see GATT/CP.2/2).
11. Request of the Goverment of Pakistan for re-negotiations
(see GATT/CP.2/1).
12. Request of the Government of Cuba for re-negotiations, etc.
(see GATT/CP.2/8).
/13. Application GATT/CP.2/6
Page 2
13, Application of Article I - Letther from the Netherlands Government
(see GATT/CP.2/9).
14. A further Protocol of rectifications (this item has been proposed
by the Government of the United States of America).
15. Application of the Geteral Agreement to the areas under military
occupation (this item has been proposed by the Government of the
United States of America - see final note in Annex I).
16. Request by the United States of America for waiver Ouer which,
for products of its Trust Territory, the United States of America
might grant free entry ard accord certain preferences and under
which a customs union between such Territory and other Territories
of the United States of America might be established,
17. Article XV - Exchange Arrangements (this item has been proposed by
the Government of the United States of America):
(a) Relations of the Contracting Parties with the
International Monetary Fund;
(b) Special exchange agreements between the
Contracting Parties and those Contracting
Parties which are not members of the
International Monetary Fund.
18. Determination of the date of the Third Session of the Contracting
Parties.
19. Other business. |
GATT Library | zs339dx0803 | Provisional Agenda for First Meeting | Interim Commission of the International Trade Organization, March 15, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) | 15/03/1948 | official documents | ICITO/1/1, ICITO/INF/1-8, and ICITO/1/1-16 | https://exhibits.stanford.edu/gatt/catalog/zs339dx0803 | zs339dx0803_90180010.xml | GATT_146 | 167 | 1,126 | UNRESTRICTED ICITO/1/1
15 March 1948
ENGLISH - FRENCH
ORIGINAL: ENGLISH
INTERIM COMMISSION OF THE INTERNATIONAL TRADE ORGANIZATION
PROVISIONAL AGENDA FOR FIRST MEETING
1. Adoption of Rules of Procedure.
2. Election of the Executive Committee.
3. Election of Executive Secretary.*
4. Delegation of Powers to Executive Committee.
5. Any other business.
* It would be appreciated if delegations would forward their nominations to
the President not later than 6.00 p.m. on Thursday, 18 March. A document
listing these nominations will be distributed on the morning of Friday,
19 March.
COMMISSION INTERIMAIRE DE L'ORGANISATION INTERNATIONALE DU COMMERCE
ORDRE DU JOUR PROVISOIRE DE LA PREMIERE SEANCE
1. Adoption du reglement intérieur.
2. Election du Comité exécutif.
3. Election du Secrétaire exécutif.*
4. Délégation de pouvoirs du Comité éxécutif.
5. Questions diverses.
* Les délégations sont invitées à présenter les noms des candidats à
la présidence pour le jeudi 18 mars à 18 heures au plus tard. Un
document donnant les noms des candidats sera distribué le vendredi
matin 19 mars. |
GATT Library | ny953gh2821 | Provisional Agenda for the First Meeting | Interim Commission of the International Trade Organization, March 15, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 15/03/1948 | official documents | ICITO/EC.1/1, ICITO/EC.1/LIST OF DOCUMENTS, ICITO/EC.1/1-6, and ICITO/EC.1/SR.1,2 | https://exhibits.stanford.edu/gatt/catalog/ny953gh2821 | ny953gh2821_90180060.xml | GATT_146 | 301 | 2,097 | INTERIM COMMISSION OF THE INTERNATIONAL TRADE
ORGANIZATION
Executive Committee
First Session (Havana)
List of documents issued
from 15 March to 15 April, 1948
Document Language Short title of document
Number
Symbol: ICITO/EC.1/
1 Biling.
2 E. F.
2/Add. 1
3
4
5
6
Biling.
E. F.
E. F.
E. F.
E. F.
Provisional Agenda for the First Meeting
Election of Executive Committee - note
by Secretariat
Addendum to text
Draft Rules of Procedure
List of Officers and Members of Exec. Cte.
Report of Working Party on Budget and
Secretariat Proposals
Note by Executive Secretary on Report
of Working Party on Budget and
Secretariat Proposals Document Language Short title of document
Number
Symbol: ICITO/EC. 1/SR.
Summary Record of
First Meeting held
20 March 1948
Summary Record of
Second Meeting held
24 March 1948
at 2.30 p.m.
1. Adoption of Rules of
Procedure
2. Election of Chairman
and Vice-Chairman
3. Consideration of Work
of Committee
(E/CONF.2/C.6/111)
4. Consideration of Budget
& secretariat proposals
Report of Working Party
on Budget and Secretaria
Proposals (ICITO/EC.1/5)
Date and Place of Next
Meeting.
1
E. F.
2
E. F. ICITO/EC.1/1
15 March 1948
ENGLISH - FRENCH
ORIGINAL : ENGLISH JSH
COMMISSION OF THE INTERNATIONAL
ORGANIZATIONONU
CUTIVE CE COMMI TE
PROVISION AGENDA A FOTHERFIRST MmMEH FGIRS T MEETIN
1. Adoption of Rules of Procedure
of C. Electo of ChaiChairman.rman and Vice Chaixran.
3. amme Conswork for the Committee.of rk for the Committee.
4onsideration of budget and secretariat proposals.
5. Date and place of next meeting.
CREMMISLSIOONINETIRAIPE DE 'RGANISATION INTERNAETIONALE DU CCOMERC
COMITE EXECUTI
ORDRE DU JOUR PROMVIRSOIRE CDE LA PREIEE SEANE
g1. Adopinterieur.tion du relement JitdTieur,
2. ElectioPresident.n du PrdTident et du Vice-PrdTident.
3. Exame.en du progamme des travaux du Comitd
4. Examen des propSecretariat.eositions concernant le budget et leSecrdTariat.
5. Date et lieu de la prochaine snce. |
GATT Library | vy097cm9797 | Provisional Agenda (Revised) | Interim Commission for the International Trade Organization, July 13, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 13/07/1948 | official documents | ICITO/EC.2/1/Rev.1 and ICITO/EC.2/INF.1-3 ICITO/EC.2/1-2/ADD.4 | https://exhibits.stanford.edu/gatt/catalog/vy097cm9797 | vy097cm9797_90060174.xml | GATT_146 | 282 | 2,275 | ICITO/EC.2/1/ReV .1 UNRESTRICTED ICITO/EC.2/1/Rev.1 13 July 1948
INTERIM COMMISSION COMMISSION INTERIMAIRE DE ORIGINAL: ENGLISH
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONAL
TRADE ORGANIZATION DU COMMERCE
EXECUTIVE COMMITTEE
Second session
PROVISIONAL AGENDA (Revised)
1. Adoption of agenda (ICITO/EC.2/1/Rev.1).
2. Adoption of rules of procedure (ICITO/EC.1/3 and ICITO/EC.1/SR.1, Item 1).
3. Report by the Executive Secretary on the work of the Secretariat
(ICITO/EC .2/5* ).
4. Relation of the International Trade Organization with the united Nations
and with other inter-governmental organizations, articles 86 and 87
of the Havana Charter (ICITO/EC.2/2).
(a) United Nations (ICITO/EC.2/2/Add.1)
(b) International Monetary Fund (ICITO/EC .2/2/Add.2*)
(c) Food and Agriculture Organization (ICITO/EC.2/2/Add.3*)
(d) International Tariff Bureau (ICITO/EC.2/2/Add.4*)
(e) Other inter-governmental organizations (ICITO/EC.2/2/Add.5*).
5. Relations of the International Trade Organization with non-governmental
organizations, article 87 of the Havana Charter (ICITO/EC.2/11*).
6. Relation of the International Trade Organization with the International
Court of Justice (ICITO/EC.2/3).
7. Havana resolution relating to economic development and reconstruction -
interim report by the Secretariat (ICITO/EC.2/7*).
8. Representation of the Interim Commission on the Interim Co-ordinating
Committee for International Commodity Arrangements (ICITO/EC.2/8*).
9. Consultation with the Government of Switzerland regarding the Report
of Sub-Committee G of the Third Committee of the Havana Conference
(ICITO/EC.2/9).
10. Report by the Executive Secretary on consultation with the Secretary-
General of the United Nations regarding the expenses incurred by the
Preparatory Committee of the United Nations Conference on Trade and
Employment and by that Conference (ICITO/EC.2/4).
* to be issued.
Note: Documents ICITO/EC.2/1,2,3,4 and 9 have been circulated, The remainder
will, be circulated by the beginning of August 11. Draft Financial and staff regulations for the International Trade
Organization (ICITO/EC.2/10*).
12. Consideration of the future programme of the Interim Commission.
*to be issued. |
GATT Library | rb387rx5548 | Provisional application of the general Agreement by Czechoslovakia | General Agreement on Tariffs and Trade, March 16, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 16/03/1948 | official documents | GATT/1/31 and GATT/1/29-46+38/Rev.1,40/Rev.1 | https://exhibits.stanford.edu/gatt/catalog/rb387rx5548 | rb387rx5548_90310306.xml | GATT_146 | 248 | 1,661 | 16 march 1948
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
FIRST SESSION OF THE CONTRACTING PARTIES
PROVISIONAL APPLICATION OF THE GENERAL AGREEMENT BY CZECHOSLOVAKIA
The following communication from Dr. Z. Augenthaler, Leader of the
Gzechoslovak delagation, has been received by Mr. L. D. Wilgress, Chairman,
First Session of the Contracting Parties of the General Agreement on Tariffs
and Trade. March 16, 1948
"Mr. Chairman:
"I am taking great pleasure in passing on to you the following
information:
"I have received news today from my Government in Prague that it
approved, in its Session on March 12th, 1948 the "General Ageement on
Tariffs and Trade" and the President of the Czechoslovek Republic thus
appointed and empovered the Czechoslovak Consul General in New York to
sign the "Protocol of Provisional Application" on Saturday, March 20th, 194
"I have also been informed that provisional application of the
General Agreement Tariffs and Trade will be effective on Czechoslovak
Territory as from April 20th, 1948 on which date all Tariff Concessions
granted by Czechoslovakie in Geneva will be applicable to the trade of the
Contracting Parties.
"I should be very gratefuL if you could inform all signatories of
the Final Act of the General Agreement on Tariffs and Trade.
"I am, Mr. Chairman,
"Your obedient servant,
(Z.Augenthaler)
Dr. Z. Augenthaler,
Leader of the Czechoslovak
Delegation.
Te Hon, L. D. Wilgress,
Leader of the Canadian Delegation,
Chairman of the First Sesson of
the Contracting Parties of the
General Agreement on Tariffs and
Trads." |
GATT Library | wc188qy9629 | Provisional application of the General Agreement by Norway | 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/1/35 and GATT/1/29-46+38/Rev.1,40/Rev.1 | https://exhibits.stanford.edu/gatt/catalog/wc188qy9629 | wc188qy9629_90310310.xml | GATT_146 | 127 | 817 | RESTRICTED
GATT/1/35
18 March 1948
GENERAL AGREEMENT ON TARIFFS AND TRADE
FIRST SESSION OF THE CONTRACTING PARIES
PROVISIONAL APPLICATION OF THE GENERAL AGREEMENT BY NORWAY
The following letter has been received by the Secretariat:
Havana, March 17, 1948
Sir,
Referring to the discussion, during this afternoon's meeting of the
contracting parties of the General Agreement on Tariffs and Trade I beg
to inform you that it is the intention of the Norwegian Governent to
seek to have signed the Protocol of Provisional Application of the
General Agreement as soon as possible after the conclusion of the Havana
Conference and at any rate not later than June 30th this year.
Yours sincerely,
Arne Skaug
Observer of Norway
to the First Session of the
Contracting Parties of GATT.
6370 |
GATT Library | qr090qq8580 | Quatrieme Commission : pratiques commerciales restrictives | United Nations Conference on Trade and Employment, March 3, 1948 | Fourth Committee: Restrictive Business Practices | 03/03/1948 | official documents | E/CONF.2/C.4/20 and E/CONF.2/C.4/1-25 | https://exhibits.stanford.edu/gatt/catalog/qr090qq8580 | qr090qq8580_90190664.xml | GATT_146 | 679 | 4,533 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies UNRESTRICTED
CONFERENCE E/CONF.2/C.4/20
DU 3 mars 1948
COMMERCE ET DE L'EMPLOI ENGLISH - FRENCH
FOURTH COMMITTEE : RESTRICTIVE BUSINESS PRACTICES
QUATRIEME COMMISSION : PRATIQUES COMMERCIALES RESTRICTIVES
The following French text of
paragraph 8 of the Draft Report of
the Fourth Committee incorporates
the translation modifications
suggested by the representatives
of Belgium and Canada. As agreed at
that Meeting, Delegations are
requested to inform the Secretariat
telephone extension 252) by
6.00 p.m. Friday, 5 March, if these
modifications are not acceptable
to them. If any such comments
are received they will be
referred to the Central Drafting
Committee, If no comments are
received, this French text will be
Incorporated as Paragraph 8 of the
Report of the Committee which it
is intended to issue on Saturday.
The approved English text is
reproduced following the French
for purposes of comparison.
FOURTH COMMITTEE : RESTRICTIVE BUSINESS PRACTICES
QUATRIEME COMMISSION : PRATIQUES COMMERCIALES RESTRICTIVES
On a incorporT au texte frantais
ci-dessous du paragraphe 8 du projet
de rapport de la QuatriFme Commission,
les modifications que les reprTsentants
de la Belgique et du Canada ont proposT
d'apporter a la traduction frantaise
du texte anglais. Si ces modifications
ne leur semblent pas acceptables, les
dTlTgations sont invitTes, comme il a
TtT dTcidT au cours de cette sTance, a
en informer le SecrTtariat (poste de
tTlTphone 252), avant le vendredi
5 mars, a 18 heures. Si des observa-
tions dans ce sens sont prTsentTes au
SecrTtariat, elles seront soumises au
ComitT central de rTdaction. Dans le
cas contraire, le texte frantais
ci-dessous constituera le paragraphe 8
du Rapport de la Commission qu'on se
propose de distribuer samedi.
Le texte anglais qui a TtT
approuvT est reproduit immTdiatement
aprFs le texte frantais aux fins de
comparaison. E/CONF.2/C .4/20
English - French
Page 2
"8. La Commission a discut? longuement des rapports qui existent
entre les procedures pr?vues aux articles 45 at 45A du chapitre V,
et celles qui sont pr?vues au chapitre VIII. Au cours de see d?bats, la
Commission a pris en consideration une communication de la Sixi?eea
Commission (E/CONF.2/C.6/63), donnant l'opinion de eclel-ci usr
la relation entrele chapitre VIII et les auters parties ed la
Charte.L a Quatr??me Commission a consta?t quo la question? tait
ext?rmement complexe et q'uil? tait difficile de p?rvoir ?ds
ninteoant toutes leo r?eercussions des cas qui pourraient seo
p?rsenter pratiquement.
Toutefois, la Quatr?ime Commission croit utile do rappelor
qeu les pro?cdures p?rvues dans le chapitre V 'sappliquent aux
?rclamations qui visent les effets nuisibles ?rsultant de pratiqeus
comemrciales qui sont le fait de'ntreprises commerciaels, alors
qeu les pro?cdures p?rvues dans ew chapitro VIII s'appliquent
aux ?rclamations p?rsen?tes centre les Etats Members comem tels.
eIrecours aux proc?eures pr?6ues au chapitre V ne peut donc
emp?cher un Etat Membre de recourir ? celles qui sont pr?vues
au chapitre VIII lorsqu'il ?stime qu'il y a privation totale ou
partielle du fait d'un autre Etat Membre d'avantages dont i1.
b?n?ficie en vertu de la Charte".
"8. The Committee discussed at length the relation between the
procedures of Chapter V under Articles 45 and 45A, and those of
Chapter VIII. In the course of its discussions, the Committee
had the benefit of a communication from Committee VI
(E/CONF.2/C.6/63) setting forth the opinions of that Committee on
the subject. of Chapter.VIII in its general relation to other parts
of the Charter. Committee IV found that the question was full of
complexities and that it was difficult to foresee at this stage
all implications of cases that may in practice arise. E/CONF. 2/C.4/20
English - French
Page 3
However, Committee IV calls attention to the fact that the
procedures under Chapter V apply to complaints directed against
harmful effects arising out of business practices of commercial
enterprises, while the procedures under Chapter VIII apply to
complaints against Members as such. Therefore, the procedures
set forth in Chapter V cannot preclude resort by a Member to the
procedures under Chapter VIII, whenever it considers that there
is nullification or impairment of the benefits under the Charter
by another Member." |
GATT Library | td856zf2624 | Rapport du groupe de travail nø 3 charge d'etudier la demande de dérogation presentée par les Etats-Unis relative à l'octroi d'un régime préférentiel au territoire sous tutelle des iles du Pacifique | Accord General sur les Tarifs Douaniers et le Commerce, September 7, 1948 | General Agreement on Tariffs and Trade (Organization), Parties Contractantes, and Contracting Parties | 07/09/1948 | official documents | GATT/CP.2/36 and GATT/CP.2/28 - 36 CP.2/32/Rev.1 | https://exhibits.stanford.edu/gatt/catalog/td856zf2624 | td856zf2624_90320054.xml | GATT_146 | 2,107 | 13,614 | RESTRICTED
LIMITED B
GATT/CP.2/36
7 September 1948
FRENCH
ORIGINAL: ENGLISH
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMERCE
Parties contractantes
Deuxieme session
Rapport du groupe de travail nø 3 charge d'etudier la
demande de derogation presentee par les Etats-Unis
relative a l'tato;g. d'un regime preferentiel au terri-
toire sous tutelle des iles du Pacifique.
Conformement a son mandat le Groupe de travail a
examine, en se fondant sur les renseignements fournis par
le representant des Etats-Unis la demande de derogation
presentee par ce pays et tendant a accorder un regime
preferentiel au Territoire sous tutelle des iles du Pacifique.
Apres une discussion approfondie au cours de laquelle
les membres du Groupe de travail et un certain nombre d'ob-
servateurs ont exprime leur opinion au sujet des questions
juridiques et economiques que souleve la demande des Etats-
Unis, le Groupe de travail est arrive aux conclusions sui-
vantes:
1 Les PARTIES CONTRACTENTES sont fondees a examiner cette
demande aux termes des dispositions de l'Article XXV de l'Ae-
cord general sur les tarifs douaniers et le commerce. Il
n'existe aucune autre disposition de l'Accord general dans le
cadre de laquelle on puisse examiner cette demande
2. Le Groupe de travail a examine la question de savnir si
la demande des Etats-Unis est fondee sur l'existence de
"circonstances exceptionnelles". Il a conclu que ces circons-
tances exceptionnelles existent pour les raisons enoncees dans
les paragraphes ci-apres.
3. Les iles qui composent le territoire sous tutelle benefi-
ciaient d'un traitement preferentiel de la part du Japon tant
qu'elles sont restees sous mandat japonais et ce traitement
preferentiel sera supprime lorsque les Etats-Unis assumeront
leur administration. Si la derogation demanded etait accordee
aux Etats-Unis, les iles resteraient dans la situation analogue
a celle qui existait avant l'instauration de la tutelle des
Etats-Unis et elles jouiraient de privileges comparables a ceux
dont beneficient d'autres territoires sous titelle qui, confor-
mement aux exceptions prevues a l'Article 1 de l'Accord gene-
ral beneficient d'un traitement preferentiel pour leurs im-
portations dans les territoires des pays charges de les
administrer.
4. En outre, a la difference de la situation qui existait sous
mandat japonais, les produits originaires du pays charge de
l'administration de ces territoires ne jouiraient d'aucun
regime preferentiel a l'entree sur territoire sous tutelle du
Pacifique.
5. D'autre part, le Groupe de travail a estime que l'exode
des 70.000 Japonais qui etaient principalement employs dans
les industries du sucre, de l'alcool et de la sarde sechee
de ces iles, provoquera probablement la disparition de ces
industries, et que la transformation subie de ce fait par
* Les documents GATT/CP.2/W.P.3/5, GATT/CP.2/WP.3/6 et
GATT/CP.2/WP.3/6,Corrl, contiennent des renseignements statis-
tiques et des donnees de fait au sujet de la production et du
commerce du territoire sous tutelle des iles du Pacifique. GATT/CP.2/36
Page 2
l'economie des iles justifierait cortaines mesures exception-
nelles qui permettraient a l'autorite charge de l'adminis-
tration de s'acquitter de ces obligations aux termes du para-
graphe 2 de l'Article 6 de lAccord de tutelle pour les iles
anterieurement placees sous mandat japonais.
6. Le Groupe de travail a estime que les chiffres de la pro-
duction et les possibilites d'exportation de ces iles sont
si minimes que dans les conditions qui existeront vraisembla-
blement l'octrol de cette derogation ne serait pas de nature
a causer des dommages importants au commerce des autres parties
contractantes.
La valeur des exportations des cinq principaux preduits
exportables des iles a ete d'environ 11 millions de dollars
en 1936, mais les exportations de sucre qui representaient
plus de la moitie de ces exportations ne continueront vrai-
semblablement pas et l'on s'attend a ce que les exportations
de phosphate cessent en 1951, en raison de l'epuisement des
ressources. Les exportations do coprah ont varie de 10 a
15 mille tonnes pendant la decade 1930-1939, mais il est peu
probable que la production future depasse une moyernne annuelle
de 10,000 tonnes. Cette producution probable correspondrait
a environ 5% du volume total des importations de coprah des
Etats-Unis.
La plupart de ces produits sont a present admis en
franchise et le systeme des contingentements de l'importation
du sucre maintenant en vigueur aux Etats-Unis no permettrait
pas un accroissement des importations de suore originaire des
iles. Bien que la reduction de 2 cents par livre sur la taxe
afferente a l'extraction de I'huile de coco a partir du coprah
doive augmenter le revenu que los iles tirent de leurs expor-
tations de coprah, il est peu probable qu'elle provoque un
accroissement important du volume global de ces exporations
qui entrent en concurrenco avec la production plus economique
des Philippines.
Il a d'ailleurs ete entendu que si les facteurs econo-
miques sur lesquels la decision des PARTIES CONTRACTANTES se
fondera evoluaient d'une facon qui nuise ou menace de nuire
gravement au commerce des PARTIES CONTRACTANTES la decision
prise au cours de la presente session pourrait etre revisee
par les PARTIES CONTRACTANTES. En outre, l'on a fait remar-
quer qu'une telle decision no lierait que les parties contrac-
tantes et que, lorsque la Charte entrera on vigueur, la Con-
ferenco de l'O.I.C. devra, sauf si l'on juge que les disposi-
tions de l'Article 15 de la Charte sont applicables, examiner
une demande de derogation dans le cadre du paragraphe 3 de
l'Article 77 de la Charte de La Havane.
7. Le Groupe de travail a exarmine la question de savoir si
la derogation devrait prendro la forme d'une autorisation
precise d'accorder un traitement preferentiel a certains pro-
duits du territoire sous tutelle des iles du Pacifique ou la
forme d'une autorisation generale d'admettre en franchise tous
les produits de ce territoire.
En raison du faible volume des changes commerciaux
c -1 cause et de la presence dans certains cas de products divers
et d'importance minime, le Groupe de travail a conclu qu'il GATT/CP.2/36
Page 3
serait puspratique d'accorder une autorisation generale
pour tous les produits du territoire sous tutelle des tiles
du Pacifique qui sont imports sur le territoire douanier
des Etats-Unis, territoire compose des Etats-Unis et de
leurs possessions a l'exception des iles Vierges, de la
partie americaine des Samoas, de l'Ile Guam, de l'Ile Wake,
des Iles Midway et du recif Kingman.
8. La portee de cette derogation serait la suivante:
(a) l'entree sur le territoire douanier des Etats-Unis
de tous les produits du territoire sous tutelle des iles
du Pacifique pourrait se faire en franchise de droits,
et les Etats-Unis ne seraient pas, de ce fait, tenus
d'accorder le meme traitement aux produits similaires
des territoires des parties contractantes.
(b) Les Etats-Unis seraient autorises a appliquer a
l'huile de coco tire du coprah originaire du territoi-
re sous tutelle des iles du Pacifique et importee sur le
territoire douanier des Etats-Unis la taxe reduite de
3 cents par livre, actuellement applicable a l'huile de
coco tiree du coprah originaire de la Republique des
Philippines et les Etats-Unis me seraient pas tenus
d'appliquer le meme taux a l'huile de coco tire du
coprah originaire des territoires des parties contrac-
tantes, le droit applicable restant fixe dans ce cas
a 5 cents par livre.
9. La disposition de la note contenue a l'Annexe D de
l'Aecord general, aux termes de laquelle "l'impositionn
d'une marge equivalente de preference tarifaire auxlieu et
place de la marge de preference qui existait dans l'appli-
cation dune taxe interieure a la date du 10 avril 1947,
exclusivement entre deux ou plusieurs des territoires enu-
meres a la presente Annexe, ne sera pas consideree comme
constituent une majoration de la marge de preferences
tarifaire", s'appliquerait mutatis mutandis a la marge de
preference dont beneficierait dans l'application de la
taxe de transformation, l'huile de coco extraite du coprah
originaire du territoire sous tutelle du Pacifique.
10. Le Groupe de travail recommande que le traitement
preferentiel qui sera accore a l'importation des produits
des territoires sous tutelle des iles du Pacifique soit.
regi par les dispositions de l'Article premier de l'accord
gemeral et que la date du 10 alvril 1947 mentionnee dans les
alineas (a) et (b) du dernier paragraphe de article pre-
mier soit remplacee, en ce qui concerne le regime preferen-
tiel prevu par la presente decision par la date a laquelle
ce regime preferentiel entrera en vigueur. Enfin, il a ete
entendu que ces preferences pourraient faire l'objet de
negociations conformement a l'Article 17 de la Charte de
La Havane, comme toutes les preferences visees a l'Article
16 de la Charte.
Le Groupe de travail soumet a l'examen des PARTIES
CONTRACTANTES aux fins d'approbation, la resolution suivante: GATT/CP.2/36
Page 4
"DECISION RELATIVE A UNE DEROGATIOT EN VERTU DU PARAGRAPHE
5 (a) DE L'ARTICLE XXV DE L'ACCCD GENERAL SUR LES TARIFS
DOUANIERS ET LE COMMERCE EN CE QUI CONCERNE LE TERRITOIRE
SOUS TUTELLE DES ILES DU PACIFIQUE.
LES PARTIES CONTRACTANTES, agissant en vertu de l'alinea
du paragraphe 5 (a) de l'article XXV do l'Accord general
sur les tarifs douaniers et le commerce.
Ayant pris acte de la demande formulee par le Gouver-
nement des Etats-Unis on vue de l'etablissement d'un trai-
tement preferentiel pour les importation aux Etats-Unis
des produits des iles Marshall, Caroline et Marianne, (a
l'exeception de Guam) qui etaient auparavant placees sous
mandat japonais, et qui en vertu d'un accord avec le Conseil
de securi. e des Nations Unies approuve le 2 avril 1947, ont
ete placees sous le regime de tutelle des Nations Unies,
les Etats-Unis eant charges de leur administration,
Considerant que sous le mandat japonais les exportations
de ces iles beneficiaient d'un traitement preferentiel sur
le march du temitoire metropolitain du Japon, don't ces
exportations dependaient pour une tres grande part, et consi-
derant qua le dit traitement preferentiel a cesse lors de
l'etablissement du regimo do tutelle sous l'administration
des Etats-Unis,
Considerat on outre, que sous Ia mandat japonais ces
iles appliquaient un regime preferentiel aux importations
des produits du Japon, et que ce systeme, sous l'administra-
tion des Etats-Unis, sera remplace par un regimo de non-
discrimination en favour des marchandises de tous les pays,
Considerant enfin que le remplacement du regime pre-
ferentiel dont beneficiaient los exportations de ces iles
sur le march du Japon par un traitement preferentiel sur
le march des Etats-Unis n'est pas susceptible, on raison
de la nature et du faible volume de la production et des
ehanges commerciaux en cause et en reison de l'ensemble
des facteurs economiques qui affectent cette production et
ces echanges, de causer un dommage substantiel au commerce
des parties contractantes,
Decident ce qui suit :
1. Sous reserve des decisions du paragraphe 2 de la presente
resolution, il sera deroge & l'application des dispositions
du paragraphe premier de l'Article premier de l'Accord ge-
neral sur les tarifs douaniers et le commerce dans la measure
necessaire pour permeettre au Governement des Etats-Unis :
(a) d'exempter de droits sauf dis- uition contraire de
l'alinea (b), tous los produits du territoire sous
tutelle des iles du Pacifique importes sur le terri-
toire douanier des Etats-Unis sans qu'ils soient obli-
ges de ce fait d'accorder le meme traitement aux pro-
duits similairos des autres parties contractantes, et
(b) d'appliquer, aux produits du territoire sous tutelle
des iles du Pacifique import6s sur le territoire doua-
nier des Etats-Unis le meme taux de la taxe a la trans-
formation de l'huile do coco (ou, si cette taxe devait
etre remplac6e par un droit d'entree equivalent a l'im-
portation, le meme taux de droit) qui pourra etre ap-
plique conformenent a l'Accord general sur les tarifs
douaniers et le commerce, aux produits similaires de
Ia Republique dos Philippines sans qu'il soit oblige
d'accorder lc meme treaitement aux produits similaires GATT/CP.2/36
Page 5
des autres parties contractantes.
2. Les marges de preference instituecs lors de la m ise en
vigueur du regime prevu au paragaphe premier seront conso-
lidees dans les memes conditions que les autros marges de
preference aux termes de l'Accord general sur les tatifs
douaniers et le Commerce. A cette fin, la date du 10 avril
1947, mentionnee aux alineas (a) et (b) du dernier paragraphe
de l'article premier de l'Accord general; sera remplacee par
Ia date a laquelle ce regime sera mis en vigueur. Le Gou-
vernement des Etats-Unis communiquera cette date aux
PARTIES CONTRACTANTES.
3. Au cas ou l'ensemble de la situation economique qui affocte
la production et le commerce du temitoire sous tutelle des
iles du Pacifique changerait de telle facon que les prefe-
renc-s autoris6es en vertu de la presente decision causent
ou menacent de causer un prejudice substantiel au commerce
de l'une des Parties contractantes, les PARTIES CONTRACTANTES,
a la requete d'une partie contractante 16s6e, examineront
a nouveau la presente decision, on tenant compte de tous
les evenements appropries. |
GATT Library | pz072vs9518 | Rearrangement of Article 1. proposed by the delegation of Costa Rica | United Nations Conference on Trade and Employment, February 6, 1948 | Sixth Committee: Organization | 06/02/1948 | official documents | E/CONF.2/C.6/12/Add.20 and E/CONF.2/C.6/12/ADD.4-44 | https://exhibits.stanford.edu/gatt/catalog/pz072vs9518 | pz072vs9518_90170060.xml | GATT_146 | 214 | 1,590 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/12/
Add. 20
ON DU 6 February 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
REARRANGEMENT OF ARTICLE 1
PROPOSED BY THE DELEGATION OF COSTA RICA
The States and separate customs territories parties to this Charter
[agreement]
Recognizing the determination of the United Nations to promote peaceful
and friendly relations among nations [countries]
Undertake in the fields of trade and employment to co-operate with one
another and with the United Nations for the purpose of realizing the aims
set forth in the Charter of the United Nations, particularly the attainment
of the higher standards of living, full employment and conditions of
economic and social progress and development envisaged in Article 55 (a) of
that Charter.
To this end they hereby establish the INTERNATIONAL TRADE ORGANIZATION
through which they shall co-operate as Members to achieve the purpose and
the objectives set in this document, and agree to the present Charter [of the
Organization].
Chapter I
Purpose and Objectives
Article 1
The Members pledge themselves, individually and collectively, to promote
national and international action designed to attain the following objectives:
(a) to assure ....
(b) to foster ....
(c) to further ....
(d) to reduce ....
(e) to enable ....
(f) to facilitate .... |
GATT Library | zv530sv6775 | Recommendation of the heads of Delegations : Secretariat note on Paragraph 4 of Article 17 | United Nations Conference on Trade and Employment, March 4, 1948 | 04/03/1948 | official documents | E/CONF.2/52 and E/CONF.2/45/REV.1/53/CORR.3 | https://exhibits.stanford.edu/gatt/catalog/zv530sv6775 | zv530sv6775_90040114.xml | GATT_146 | 555 | 3,619 | United Nations Nations unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/52
ON DU 4 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
RECOMMENDATION OF THE HEADS OF DELEGATIONS
SECRETARIAT NOTE ON PARAGRAPH 4 OF ARTICLE 17
The Co-ordinating Committee in dealing with proposals relating to the
Tariff Committee and the Committee on Economic Development and Reconstruction
has recommended a revision of Paragraph 4 of Article 17 as in its Report,
Document E/CONF.2/45/Rev.1.
In view of the fact that this amendment has been discussed at length
by the Co-ordinating Committee and is recommended by the Heade of
Delegations, it is proposed to refer the new text direct to Committee III
for adoption.
If any delegation has Comments to make concerning the adoption of this
text, it is requested to submit those commente in writing to the Executive
Secretary by 6.00 p.m. on Friday, 5 March.
Article 17
Text of Paragraph 4 Recommended by the
Co-ordinating Committee and the Heads or Delegations
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, and shall cease to require the application to the trade of
any Member which has failed to become a party to the General Agreement
within two years from the ontry into force of this Charter for such
Member of the concession granted in the relevant schedule of the
General Agreement by any other Member which has requested such Member
to negotiate with a view to becoming a contracting party to the
General Agreement on tariffs and trade without concluding an agreement;
Provided that the Organization by a majority vote may require such h
continued application to any Member which has been unreasonably
prevented from becoming a party to the General Agreement pursuant to
negotiations in accordance with the provisions of this Article,
(b) If a Member which is a contracting party proposes to withhold
tariff concessions from the trade of a Member not a party to the
General Agreement on Tariffs and Trade, it shall give notice in Writing
/to the Organization E/CONF.2/52
Page 2
to the Organization and to the affected Member, which 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 paragraph 4 (a).
(c) In any judgment as to whether a 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 without
sufficient justification 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 concesasions 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 from the day on which such notice is received by the
Organization. |
|
GATT Library | nr842cp9626 | Recommendation on Chapter V | United Nations Conference on Trade and Employment, March 10, 1948 | Third Committee: Commercial Policy and Fourth Committee: Restrictive Business Practices | 10/03/1948 | official documents | E/CONF.2/C.3/81, E/CONF.2/C.4/22, and E/CONF.2/C.4/1-25 | https://exhibits.stanford.edu/gatt/catalog/nr842cp9626 | nr842cp9626_90190666.xml | GATT_146 | 0 | 0 | |
GATT Library | tc809ts1718 | Recommendation on Chapter V | United Nations Conference on Trade and Employment, March 10, 1948 | Third Committee: Commercial Policy and Fourth Committee: Restrictive Business Practices | 10/03/1948 | official documents | E/CONF.2/C.3/81, E/CONF.2/C.4/22, and E/CONF.2/C.4/1-25 | https://exhibits.stanford.edu/gatt/catalog/tc809ts1718 | tc809ts1718_90190666.xml | GATT_146 | 100 | 691 | United Nations
CONFERENCE
ON
TRADE AND EMLPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E /CONF . 2 /C. 3/81
E /CONF. 2 /C. 4 /22
10 March 1948
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
FOURTH COMMITTEE: RESTRICTIVE BUSINESS PRACTICES
RECOMMENDATION ON CHAPTER V
At its forty-third meeting, in connection with the discussion of the
Report of Sub-Committee on Article 1?A (E/CONF.2/C.3/76), the Third Committee
agreed to recommend to the Fourth Committee that a satisfactory solution
be found to the relation of shipping services to Chapter V in order to
avoid conflict with the Inter-Governmental Maritime Consultative Organization. |
GATT Library | st888vt6412 | Recommendation on Chapter V | United Nations Conference on Trade and Employment, March 10, 1948 | Third Committee: Commercial Policy and Fourth Committee: Restrictive Business Practices | 10/03/1948 | official documents | E/CONF.2/C.3/81, E/CONF.2/C.4/22, and E/CONF.2/C.3/78-89/ADD.3 | https://exhibits.stanford.edu/gatt/catalog/st888vt6412 | st888vt6412_90190188.xml | GATT_146 | 90 | 667 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
E/CONF.2/C.3/81
E/CONF.2/C.4/22
10 March 1948
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
FOURTH COMMITTEE: RESTRICTIVE BUSINESS PRACTICES
RECOMMENDATION ON CHAPTER V
At its forty-third meeting, in connection with the discussion of the
Report of Sub-Committee on Article 18A (E/CONF.2/C.3/7 6), the Third Committee
agreed to recommend to the Fourth Committee that a satisfactory solution
be found to the relation of shinning services to Chapter V in order to
avoid conflict with the Inter-Governmental Maritime Consultative Organization. |
GATT Library | bp569xk2560 | Recommendations by the heads of Delegations | United Nations Conference on Trade and Employment, March 3, 1948 | 03/03/1948 | official documents | E/CONF.2/51 and E/CONF.2/45/REV.1/53/CORR.3 | https://exhibits.stanford.edu/gatt/catalog/bp569xk2560 | bp569xk2560_90040113.xml | GATT_146 | 342 | 2,423 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/51 3/March 1948
ON DU 485
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOORIGINAL: ENGLIS
REOOMMDAENDAIONS BY TEH HEAD C O DELEGATIONS
There are set out below, for the guidance of the Committees and
Sub-Committees concerned, recommendations approved at a meeting of the
Heads of Delegations held on Wednesday, 3 March.
1. (a) The Heads fo Delegations recommend the contents of
document E/CNoF2./45/eRv1.()1 as an over-all settlement of
the issues dealt with therein;
(b) this recommendation is usbjeot to reservations by the
delegations of Afghanistan, Argentina, Poland, Turkey and
the United Kingdom.
(1) Subject to the following corrections:
Page 4, footnote, second sentence should read:
"It was agreed that the word "processing" meant the
treatment of a primary commodity for the manufacture of
semi-finished and finished goods;
Page 12, Parargaph 2, sub-parpagrahp (b) should read:
'ny Member, not party to the GATT would enjoy GATT
concessions for two years, but these concessions would thereafter
be withdrawn subject to certain provisos by any other Member
wh ichhas requested such Member to negotiate with a view to
becoming a contracting party to the GATT, without concluding
an agreement.."
Page 14. Paargraph 5 ,fourth line should read:
"....setabilslment by the Organization of either or both of
the two latter Committees in the future."
The Indian dleegato statde that his adherence to the recommendations
and the resolutionw as subject to a satisfactory settlement of
another Article of the draft Charter.
/(c) the E/CONF. 2/51 Page 2
(c) the delegations of Iraq, Ireland and the Philippines felt
unable to express an opinion in the absence of instructions
from their governments,
2. (a) The Heade of Delegations therefore recommend that the
texts submitted by the Co-ordinating Committee be accepted as
the basis for the preparation of final texts by the Committees
and Sub-Committees of the Conference.
These recommendations were accompanied by a resolution, approved by
a large majority of the Heads of Delagations, that the proposals of the
Co-ordinating Committee be adopted by the Sub-Committees and Committees
without major changes of substance. |
|
GATT Library | rk489ry6085 | Recommendations of Fifth Committee relating to Article 43 | United Nations Conference on Trade and Employment, January 8, 1948 | Third Committee: Commercial Policy and Sub-Committee D (Articles 40, 41 and 43) | 08/01/1948 | official documents | E/CONF.2/C.3/D/w.6 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/rk489ry6085 | rk489ry6085_90190525.xml | GATT_146 | 344 | 2,443 | RESTRICTED
United Nations Nations Unies E/CONF.2/ .3/D/w..6
CONFERENCE CONFERENCE 8 January 1948
ON. DU ORIGINAL : ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE D (ARTICLEs 40, 41 and 43)
RECOMMEMDATIONS OF FIFTH COMMITTEE RELATING TO ARTICLE 43
A communication has been received from Committee V, containing the
following recommendations for consideration by Committee III:
1. An additional exemption to the provisions of Chapter VI has been
made by adding a new sub-paragraph (d) to paragraph 1 of Article 67:
"(d) to any inter-governmental agreement, relating sololy to
the conservation of fisheries resources, migratory birds end
wild animals; Provided that such agreements are not used to
accomplish results inconsistent with the objectives of this
Charter and are given full publicity in accordance with the
provisions of Article 57, paragraph 1 (e), and that of the
Organization finds, upon complaint of a non-participating
Member, that the interests of that Member are ,uSJb
prejudiced by the agreement, the agreement shall become subject
to such provisions of this Chapter as the Organization may
prescribe."
The Fifth Committee recommends that a comparable exemption be
made in Chapter IV.
2. Sub-Committee 'A' of the Fifth Committee stated in its report that:-
"In considering the relation of Chapter VI to the Charter as a
whole, it was agreed to recommend to the Committee that it
should discuss the desirability of requesting Committee III
to amend paragraph 1 (h) of Article 43 to read as follows:
(h) undertaken in pursuance of the terms of
inter-governmental commodity, agreements concluded
accordance with the provisions of Chapter VI; or...'
It was considered that the word 'terms' conveys more
appropriately the understanding of the Sub-Committee as to the
desired exception from Chapter IV. It was felt that the word
'obligation' was subject to possible misinterpretation. '
The Fifth Committee agreed to the suggestion of the Sub-Committee
/and accordingly. E/CONF.2/C .3/D/W.6
Page 2
and accordingly recommends this change to the Third Committee.
It is suggested that Sub-Committee F may desire to consider these
recommendations and incorporate its views in the Report. |
GATT Library | bt634kj6399 | Recommendations of the heads of Delegation : Note by Secretariat on the Mexican proposal for the establishment of a Committee for Economic Development | United Nations Conference on Trade and Employment, March 6, 1948 | 06/03/1948 | official documents | E/CONF.2/58 and E/CONF.2/45/REV.1/53/CORR.3 | https://exhibits.stanford.edu/gatt/catalog/bt634kj6399 | bt634kj6399_90040121.xml | GATT_146 | 349 | 2,476 | United Nations Nations Unies 2/58
CONFERENCE 6 March 1948
CONFERENCE ORIGINAL: ENGLISH
ON DU
TRADE N EMPLOYMENTMPLOI COMMERCE ET DE L'ELOI
RECOMWENDASIONS OF 'BHEOF DELEGATION3
NHE MEXICAN rrz PBSPBY RETARISHONISHMENTNTMD 3ALR THE ESTABLJ1RME
OF A COMLM1IBM- ECONOC DEVEZOPMENT
1, The Moeihan psoposal for toe Inourtion of a nowoSection D bis - C*mmittee
,oreEconanic Deveeopmont - in Chaptor VIII contained in pages 11, 12 and 13 of
EseOIW.2/CG/12 C waa reeerred toeemmitteo VI to the eeint Sub-Committoo of
CoaLettoea II and VI in aecordance with tho terms of referince as recorded In
tho Pi.Srt- of the eoint 3ubCommitteo on Articies 9, 10 and 11 In
P/COw?/C.2/36 and E/CONF.2/C.6/72.
2. eTIcoSposal wasyeeneidered S, tho Joinee.ub-Committoo and a Working Party
was set up to examine the proposal, However in view of the connection between
the Mexican proposal for the establishment of a Committee for Economic
Development and proegaals with roaard to the establishment of a Tariff Committee
those questions were co simered by afJoint Meetimg of Sub-fomnittee A o.
CoamaSte-e mmI, ef 3ubConmittoe D of Committee VI aSd the Joint sub-Committee
of Committees II and VI held on 23 February 1948, which set up a Working Party
eepreseitina the three Sub-Committoes. The work of this Worsing Party wa. not
campleted as the questionsrwore conside.ed by the Co-ordinating Committee,
Tme Reeort if tieg oommdInaesna Cimuitteo on thess questions ia contained In
AnONx 3 o-' e/CQUF.2/45/Rov.1 and the recommendations theeeon of the H3ads of
DelegaNtions .n E/COF.2/51,
3 With re~asd to the sexican propomal for the establismment of a Conmittee
CeveEconomic Doeolopment no c hanges in thetext of the Charterdare indicate in
Annex 3 of E/CONF.2/5/Rev.1. Accordingly, no further action by the Conference
appears to be required and the eoirt of thesJiint Sub-CommItteesoI Committeea UI
and VI on Articles 9, 10 and 11 may be considered to be the final report of
the moint s.b-Comnittee
1. If any delegation has any comments to make regarding this procedure, it is
raquestat to submmen ehes e ccmints tothe Executive Sacretary not lator than
6 p.r n Tuesday, 9 March.
V Orsiginally .bmitted in docOument .E/C6F.2/C,/6/.dOd.17, E67/C0F.2/C.2/Add.18. |
|
GATT Library | cp924tz1484 | Rectificatif a la Note du Secretariat | Accord General sur les Tarifs Douaniers et le Commerce, February 27, 1948 | General Agreement on Tariffs and Trade (Organization), Première Session des Parties Contractantes, and Contracting Parties - First Session - 28 February-23 March 1948 | 27/02/1948 | official documents | GATT/1/5/Corr.1 and GATT/1/2-8 | https://exhibits.stanford.edu/gatt/catalog/cp924tz1484 | cp924tz1484_90310279.xml | GATT_146 | 142 | 913 | RESTRAICTED GATT/1/5/Corr. 1:
27 février 1948
FRENCH ONLY
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMERCE
PREMIERE SESSION DES PARTIES CONTRACTANTES
RECTIFICATIF A IA NOTE DU SECRETARIAT
Comme suite à l'indication donnée dans le dernier paragraphe
du document GATT/1/2 en date du 23 féevrier, il est porté à la connais-
sance des représentants, que les séances de la Conférence des Nations
Unies sur le commerce et I'emploi qui se tiendront le samedi 28 février
n'empêcheront pas la première session des parties contractantes.à
l'Accord géneewdral sur les tarifs douaniers et le commerce de s'ouvrir
. cetmême datedaà, & 10 3. 50, comme il avaete6t6epr6vII n1 est donc
proeose que les parties contractantes se r6unissent le samedi 2e f6vrier
10 h. 30 dans la salle 2-2.
mx Ce texte remplace la traduction frcacaise du document GATT/1/5,
dont us sea exemplaires devronetre detruits" . |
GATT Library | cn522ks9906 | Rectificatif au compte rendu de la douzième Séance | Accord General sur les Tarifs Douaniers et le Commerce, August 31, 1948 | General Agreement on Tariffs and Trade (Organization), Parties Contractantes, and Contracting Parties | 31/08/1948 | official documents | GATT/CP.2/SR.12/Corr.1, 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/cn522ks9906 | cn522ks9906_90270051.xml | GATT_146 | 96 | 603 | RESTRICTED
LIMITED B
GATT/CP.2/SR.12/Corr .1
31 August 1948
FRENCH
ORIGINAL: ENGLISH
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMERCE
Parties contractantes
Deuxième session
Rectificatif au compte rendu de la
douzième séance
1. Cet amendement ne concerne pas le texte français.
2. Page 5, dix-septième ligne; au lieu de "vise les trois
zones", lire :"vise toutes les zones".
3. " " dix-neuvième et vingtième lignes; au lieu de
"mais no croit pas qu'il convienne de signer à
présent un document" lire: "mais ne voit pas àa
pérsent la é6cessié6 de signer un document".
I _
- |
GATT Library | gx316fz2236 | Rectificatif au Compte Rendu de la huitième séance | Accord General sur les Tarifs Douaniers et le Commerce, August 27, 1948 | General Agreement on Tariffs and Trade (Organization), Parties Contractantes, and Contracting Parties | 27/08/1948 | official documents | GATT/CP.2/SR.8/Corr.1, 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/gx316fz2236 | gx316fz2236_90270044.xml | GATT_146 | 51 | 337 | RESTRICTED
LIMITED B
GATT/CP.2/SR.8/Corr .1
27 August 1948
FRENCH
ORIGINAL: ENGLISH
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMERCE
Parties contractantes
Deuxième session
Rectificatif au compte rendu de la
huitième séance
Page 1; lire ainsi la date: "tenue au Palais des Nations
è Genève, le 21 août 1948, è10 houres". |
GATT Library | hg145df8399 | Rectification de la Piece Jointe N° 2 du Document GATT/1/1. Ordre du Jour de la Premiere Session des Parties Contractantes | Accord General sur les Tarifs Douaniers et le Commerce, March 4, 1948 | General Agreement on Tariffs and Trade (Organization) | 04/03/1948 | official documents | GATT/1/8 and GATT/1/2-8 | https://exhibits.stanford.edu/gatt/catalog/hg145df8399 | hg145df8399_90310282.xml | GATT_146 | 323 | 2,165 | RESTRCTED
GATT/1/8
4 mars 1948
FRENCH
ORIGINAL : ENGLISH
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMERCE
RECTIFICATION DE LA PIECE JOINTE N 2 DU
DOCUMENT GATT/1/1
ORDRE DU JOUR DE LA PREMIERE SESSION DES PARTIES CONTRACTANTES
1. Adoption du reglement interieur provisoire.
2. Election du President et du Vice-President.
3. Adoption de l'ordre du jour provisoire.
4. Dispositions relative aux services de secretariat des parties
contractantes.
5. Signature d'un protocole apportant des corrections typographiques au
texte des listes de l'Accord general sur les tarifs douaniers et le
commerce signe a Geneve.
6. Notification des mesures prises par les parties contractantes aux
terms du paragraphe 6 de l'article XVIII.
7. Questions susceptibles d'etre soulevees quant aux engagements souscrits
en vertu- de l'Accord et rel.Lti'vca . son application:
a). Nouvel emmen de certain droits de douane 4nonc6s dans la listed X7
b) questions diverse.
8. Rapports de l'Accord. g6n6ral avec 'm Crte de l'Organisaticn
international du caerce' (Article I)
9. Amendements et propositions relatifs asx articles de l'Accord g6n6ral.-
et qui ne sont pas pr6vus dans l'article :
a) Amendement a l'article XXIV: remplacement de cet article par les
dispositions correspondantes de la Charte de la future Organisation
international du commerce. GATT/1/8
French
Page 2
b) Recommandations du Commite de coordination de la Conference de
i) amendement de l'Accord general tendant a permettre l'admis-
sion d'un pays comme partie contractante par decision
prise a la majority des deux tiers des parties contractantes
au lieu de l'etre a l'unanimite, comme il est prevu
actuelluement.
ii) amendement du paragraphe 5 de l'article XXV comme il est
indique aux pages 23 et 24 du document E/CONF.2/45/Rev.1 de
la Conference des Nations Unies sur le commerce et l'emploid.
10. Adi6sion a l'Accord cg6n6ral su= ,ea tarif douaniers et le comerce
de gouvernements qui nie sout pas parties iA 'Accord (article 'M Ii).
11. Fixation de la date de la deuxieme session des parties contractantes.
22. Autres questions. |
GATT Library | dh099qg4245 | Redraft* suggested as basis for discussion by Australian Delegation | United Nations Conference on Trade and Employment, January 13, 1948 | Second Committee: Economic Development and Sub-Committee B (Article 12) | 13/01/1948 | official documents | E/CONF.2/C.2/B/W.7, E/CONF.2/C.2/B/W.1-14, and C.2/C/W.1-13 | https://exhibits.stanford.edu/gatt/catalog/dh099qg4245 | dh099qg4245_90180308.xml | GATT_146 | 395 | 2,764 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE
ON DU E/CONF.2/C.2/B/W.7
ON DU 13 January 1948
TRADE AND EMPLOYMNET COMMERCE ET DE L'EMPLOI
ORIGINAL: ENGLISH
SECOND COMMITTEE: ECONOMIC DEVELOPMENT
SUB-COMMITTEE B ON ARTICIE 12 - INTERNATIONAL INVESTMENT FOR
ECONOMIC DEVELOPMENT
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 national of other countries
opportunities for investment and security for existing and future
investments within its 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 international 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 national 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 referred 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
Page 2
to them and, subject to sub-paragraphs (c) (i) and (iii) of paragraph 1
above, the greatst security for existing and future investments
(c) to participate at the request of any other Member in negotiations
directed towards the conclusion of such agreements; provided that if
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 | rp934vz3004 | Relation of the International Trade Organization and the International Court of Justice. Item 6 of the Provisional Agenda | Interim Commission for the International Trade Organization, June 22, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 22/06/1948 | official documents | ICITO/EC.2/3 and ICITO/EC.2/2/ADD.5 ICITO/EC.2/6/REV.1 | https://exhibits.stanford.edu/gatt/catalog/rp934vz3004 | rp934vz3004_90060184.xml | GATT_146 | 531 | 3,496 | INTERIM COMMISSION
FOR THE INTERNATIONAL
TRADE ORGANIZATION
COMMISSION INTERIMAIRE DE
L'ORGANISATION INTERNATIONALE 22 June 1948
DU COMMERCE
EXECUTIVE COMMITTEE
Second session
RELATION OF THE INTERNATIONAL TRADE ORGANIZATION AND
THE INTERNATIONAL COURT OF JUSTICE
Item 6 of the provisional Agenda
Paragaph 2 (g) of its terms of reference requires the Interim
Comission, inter alia, to carry out the functions and responsibilities
referred to in the resolution of the United Nations Conference on Trade
and Employment regarding the relation of the International trade
Organization and the International Court of Justice. The resolution,
which is annexed to the Final Act of the Havana Conference, reads as
follows:
THE UNlTED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
HAVING considered the relation of the International Trade
Organization and the International Court of justice; and
HAVING provided in Chapter VIII of the Charter, procedures for
review by the International Court of legal questions arising out of
decisions and recommendations of the Organization;
RESOLVES that the Interim Commission of the International Trade
Organization, through such means as may be appropriate, shall
consult with appropriate officials of the International Court or
with the Court itself, and after such consultation report to the
first regular session of the Conference of the International
Trade Organization upon the questions of:
(a) whether such procedures need to be changed to ensure
that decisions of the Court on matters referred to it
by the Organization should, with respect to the Organization,
have the nature of a Judgment; and
(b) whether an amendment should be presented to the Conference
pursuant to and in accordance with the provisions of the
annex to Article 100 of the Charter.
/In preparation ICITO/EC .2/3
Page 2
In preparation for the consultations referred to in the resolution,
the Secretariat on 6 May 1948 communicated* to the Registrar of the
Court the text of the resolution together with a detailed summaryof
the background of the question. The Registrar, on 31 May 1948, informed
the Executive Secretary that he had beep authorized by the Court to hold
himself at the disposition of any representatives that might be appointed
by the Executive Committee of the Interim Commisson to furnish them with
whatever information they might require regarding the statute, jurisdiction
and procedure of the Court. The Registrar indicated his willingness to go
to Geneva for this purpose during the second session of the Executive
Committee. The Registrar has pointed out that the information that he
may thus be in a position to provide cannot in any way bind the Court.
In these circumstances, it is suggested that the Executive Committee,
at an early stage of its second session:
(a) designate a small sub-committee for consultation with the Court;
(b) instruct the Executive Secretary to invite the Registrar to
come to Geneva consult with the Sub-Committee, such consultations
to relate both to the information which the Registrar has offered to
provide and to the timing and procedure for further conultations;
(c) instruct the Sub-Committee to report back to the Executive
Committee during the second session; and, in the light of this
report, instruct the Sub-Committee regarding further action.
*Copies of the correspondence with the Registrar are available for
inspection n the offices of the Secretariat. |
GATT Library | st783rz1745 | Relation of the International Trade Organization and the International Court of Justice. Item 6 of the Provisional Agenda | Interim Commission for the International Trade Organization, June 22, 1948 | Interim Commission for the International Trade Organization and Executive Committee | 22/06/1948 | official documents | ICITO/EC.2/3 and ICITO/EC.2/2/ADD.5 ICITO/EC.2/6/REV.1 | https://exhibits.stanford.edu/gatt/catalog/st783rz1745 | st783rz1745_90060184.xml | GATT_146 | 0 | 0 | |
GATT Library | qb700gt4591 | Relations between the International Labour Organization and the International Trade Organization | Interim Commission for the International Trade Organization, August 17, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 17/08/1948 | official documents | ICITO/EC.2/2/Add.6.17 and ICITO/EC.2/2/ADD.5 ICITO/EC.2/6/REV.1 | https://exhibits.stanford.edu/gatt/catalog/qb700gt4591 | qb700gt4591_90060183.xml | GATT_146 | 1,778 | 12,369 | UNRESTRICTED
INTERIM COMMISSlON COMMISSION INTERIMAIRE DE LIMITED A
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE ICITO/EC.2/2/Add.6.17 August 1948.
TRADE ORGANIZATION DU COMMERCE
ORIGINAL: ENGLISH
EXECUTIVE COMMITTEE
Second Session
Item 4 of the Provisional Agenda.
RELATIONS BETWEEN THE INTERNATIONAL LABOUR ORGANIZATION
AND THE INTERNATIONAL TRADE ORGANIZATION
1. The consultations mentioned in Document ICITO/EC.2/2
and 2/Add.5 previously distributed have now been carried
out with the Secretariat of the International Labour Organi-
zation. Attached hereto is a draft Agreement of Relations
between the International Labour Organization and the Inter-
national Trade Organization prepared in the light of such
consultations.
2. Despite the suggestion made in Document ICITO/EC.2/2
that a draft working arrangement rather than a draft agree-
ment should be prepared in the case of inter-governmental
organizations other than the United Nations, the form in
which the attached document is presented is that of a
formal agreement. This has been done for two reasons.
First, it is understood that the International Labour Organi-
zation would probably prefer to have a formal agreement
rather than a working arrangement. Second, both the
respective spheres of cómpetence of the two organizations
and the area of desirable co-operation between are com-
paratively clearly defined.
3. The Secretariat suggest that if the Executive Committee
finds the general lines of the draft agreement satisfactory
it would be desirable for the Committee to agree that
principles of the draft should be applied so far as pay-
able to the relationship between the Interim Commission
the International Trade Organization and the International
Labour Organization. ICITO/EC .2/2/Add.6
Page 2.
A N N E X
DRAFT OF AGREMENT BETWEEN THE INTERNATIONAL
LABOUR ORGANIZATION AND THE INTERNATIONAL
TRADE ORGANIZATION
WHEREAS the Constitution of the International labour
Organization pledges the full co-operation of the Inter-
national Labour Organization with such international bodies
as may be entrusted with a share of the responsibility for
securing the fuller and broader utilization of the world's
productive resources necessary for the achievement of the
objectives set forth in the Declaration of Philadelphia,
including measures to expand production and consumption, to
avoid severe economic fluctuations, to promote the economic
and social advancement of the less developed regions of the
world, to assure greater stability in world prices of primary
products, and to Promote a high and steady volume of inter-
national trade; and
WHEREAS the Charter for an International Trade Organiza-
tion (a) provides that the International Trade Organization
shall make arrangements with other inter-governmental organi-
zations which have related responsibilities to provide for
effective co-operation and the avoidance of unnecessary dup-
lication in the activities of those organizations, (b) on-
visages the participation of the International Trade Organi-
zation in arrangements concerning employment and economic
activity made or sponsored by the Economic and social Council
of the United Nations, including arrangements with appropriate
inter-governmental organizations, and (c) specifies that in
all matters relating to labour standards that may be referred
to the International Trade Organization it shall consult and
co-operate with the International Labour Organization, ICITO/EC .2/2/Add .6
Page 3.
THE INTERNATIONAL LABOUR ORGANIZATION AND THE INTER-
NATIONAL TRADE ORGANIZATION AGREE AS FOLLOWS:-
ARTICLE I
Co-operation and Consultation
The International Labour Organisation and the Inter-
national Trade Organization agree that, with a view to
facilitatiog the effective attainment of the objectives set
forth in the Constitution of the International labour Organi-
zation and the Havana Charter within the general framework
established by the Charter of the United Nations, they will
act in close co-operation with each other and will consult
each other regularly in regard to matters of common interest.
Without prejudice to the generality of the foregoing the
two Organizations recognise the importance of their co-
operating, within their respective spheres and consistantly
with the terms and purposes of their basic instruments, in
concerted action to sustain employment, production and
demand and to foster and assist industrial and general
economic development, as well as the reconstruction of those
countries whose economies have been devastated by the war.
ARTICLE II
Consultation upon Matters Relating to Labour Stand-
ards Referred to the International Trade Organi-
zation under Chapter VIII of the Havana Charter.
Having regard to the provisions of paragraph 3 of
Article 7 of the Havana Charter, the Director-General of the
International Trade Orranization shall notify the Director-
General of the International Labour Offiice of any matter
relating to labour standards that may be referred to the
former Organization in accordance with the provisions of ICITO/EC .2/2/Add .6
Page 4.
Chapter VIII of the Havana Charter. The two Organizations
shall the upon consult together with a view to reaching
agreement on the procedure to be followed in dealing with the
matter.
ARTICLE III
International Commodity Agreements
1. The International Trade Organization recognises
the International Labour Organization to be a competent
inter-governmental organization within the meaning of
Article 67 of the Havana Charter.
2. The two Organizations will examine at the request
of either of them, the desirability of inviting the Inter-
national Labour Organization to nominate a non-voting rep-
rosentative for appointment to a Commodity Council in pur-
suance of paragraph 3 of Article 64 of the Havana Charter.
1.ARTICLE IV
Reciprocal Representation
1. Representatives of the International Trade
Organization shall be invited to attend the meetings of the
International Labour Conference and to participate without
vote in the deliberations of the Conference and of its
committees with respect to items on their agenda in which
the International Trade Organization has an interest.
2. Representatives of the International Labour
Organization shall be invited to attend the meetings of the
Conference of the International Trade Organization and to
participate without vote in the deliberations of the
Conference and of its committees with respect to items on
their agenda in which the International Labour Organization
has an interest. ICITO/EC.2/2/Add.6.
Page 5
3. Representatives of the International Labour
Organization shall be invited to attend the meetings of
any commissions established by the International Trade
Organization in pursuance of Article 82 of the Havana
Charter to deal with matters concerning which the
International Labour Organization has special competence
and to participate without vote in the deliberations
upon such matters.
4.Appropriate arrangements shall be made by
agreement from time to time for the reciprocal
representation of the two Organizations at other meetings
convened under their auspices which consider matters in
which the other Organization has an interest.
ARTICLE V
Joint Cmmittees
1.The two Organizations may refer to a joint
committee any question of common interest which it may
appear desirable to refor to such a committee.
2.Any such joint committee shall consist of
representatives appointed by each Organization, the
number to be appointed by each being decided by
agreement between the Organizations.
3. The United Nations shall be invited to designate
a representative to attend the meetings of any such joint
committee.
. 4 The reports of any such joint committee shall be
communicated to the Directors-General of th two
rgOanizations for submission to the appropriate bodies
of the Organizations. ICITO/EC .2/2/Add. 6 Page.6
Copies of the documents of any such joint
committees shall be communicated to the Secretary-General
of the United Nations for information.
6. Any such joint committee shall regulate its own
procedure.
ARTICLE VI
Exchange of Information and Documents
Subject to such arrangements as may be necessary for
the safeguarding of confidential material the fullest and
promptest exchange of information and documents shall
be made between the International Labour Organization and
the International Trade Organization.
ARTICLE VII
Personnel Arrangements
The Director -General of the International Labour
Office and the Director-General of the International Trade
Organization shall take measures, within the framework of the
general arrangements for co-operation in regard to
personnel arrangements to be made by the United Nations,
to avoid competition in the recruitment of their
personnel, and to facilitate interchange of personnel
on a temporary or permanent basis in appropriate cases,
in order to obtain the maximum benefit from their services,
making due provision for the retention of seniority and
pension rights.
ARTICLE VIII
Statistical Services
1. The International Labour Organization and the
International Trade Organization agree to strive within
the framework of the general arrangements for statistical ICITO/EC. 2/2/Add. 6
Page 7
co-operation made by the United Nations, for maximum
co-operation with a view to the most efficient use of their
technical personnel in their respective collection,
analysis, publication, standardization, improvement and
dissemination of statistical information. They recognize
the desirability of avoiding duplication in the collection
of statistical information whenever it is practicable for
either of them to utilise information or materials which
the other may have available or may be specially qualified
and prepared 'to collect, and agree to combine their
efforts to secure the greatest possible usefulness and
utilization of statistical information and to minimise the
burdens placed upon national Governments and other
organizations from which which information may be collected.
2. The International Labour Organization and the
International Trade Organization agree to keep one another
informed of their work in the field of statistics and
to consult each other in regard to all statistical projects
dealing with matters of common interest.
ARTICLE IX
Financing of Special Services
If compliance with a request for assistance made by
either organization to the other would involve
substantial expenditure for the organization complying
with the requests consultation shall take place with a
view to determining the most equitable manner of meeting
such expenditure.
ARTICLE X
Implementation of the Agreement
1. The Director-General of the International Labour
Office and the Director-General of the International Trade ICITO/EC . 2/2/Add. 6
Page 8
Organization shall make administrative arrangements to
ensure the closest possible collaboration and liaison
between the staffs of the two Organizations.
2. The Director-General of the International Labour
Office and the Director-General of the International
Trade Organization may enter into such supplimentary
arrangements for the implementation of this Agreement as
may be found desirable.
ARTICLE XI
Revision and Termination
1. This Agreement may be revised by agreement
between the International Labour Organization and the
International Trade Organization. It shall be reviewed
as soon as possible after the expiry of three years from
the date of its entry into force.
2. This Agreement may be terminated by either party
on the thirty-first day of December of any year by written
notice given to the other party not later than the
thirtieth day of September of that year.
ARTICLE XII
This Agreement shall come into force upon its
approval by the Governing Body of the International Labour
Office and the
International Trade Organization.
The question whether the Executive Board or the
Conference is the appropriate body for approving the
Agreement is dependent upon the decision to be taken by
the Conference as to the powers to be delegated to the
Executive Board. |
GATT Library | ys116pq5575 | Relations of the International Trade Organization with other Inter-Governmental Organizations | Interim Commission for the International Trade Organization, July 13, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 13/07/1948 | official documents | ICITO/EC.2/2/Add.5 and ICITO/EC.2/2/ADD.5 ICITO/EC.2/6/REV.1 | https://exhibits.stanford.edu/gatt/catalog/ys116pq5575 | ys116pq5575_90060181.xml | GATT_146 | 3,894 | 27,717 | INTERIM COMMISSION COMMISSION INTERIMAIRE DE
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONAL RESTRICTED
TRADE ORGANIZATION DU COMMERCE ICITO/EC.2/2/Add .5
ORIGINAL: ENGLISH
EXECUTIVE COMMITTEE
Second session
Item 4 (e) of the revised provisional agenda
RELATIONS OF THE INTERNATIONAL TRADE ORGANIZATION WITH
OTHER INTER-GOVERNMENTAL ORGANIZATIONS
In document ICITO/EC .2/2 and Adds. 1, 2, 3 and 4 the Executive Committee
will have before it general recommendations regarding item 4 of the
provisional agenda, detailed recommendations regarding an agreement with
the United Nations and provisional working arrangements with the International
Monetary Fund and the Food and Agriculture Organization, and proposals
regarding the International Tariff Bureau. There remain to be considered in
connection with Article 87 of the Havana Charter a number of
inter-governmental organizations, some of them specialized agencies of
the United Nations end others outside the framework of the United Nations,
which are concerned to a greater or lesser degree with matters within the
scope of the Havana Charter. These organizations are listed below (those
outside the framework of the United Nations in the annex to this paper) with
a commentary.
International Bank for Reconstruction and Development
It will clearly be in the interest of the ITO and the Bank to maintain
close contacts on a wide range of matters of interest to both of them. It
will be of interest to the ITO that representatives of the Bank should
participate in the conferences of the Organization and at other international
meetings that may be sponsored by it. In addition, there should be a full
exchange of information between the two organizations and close collaboration
on such matters as economic development and research programs in fields
of interest to both organizations. It is probable, however, that the
necessary collaboration can better be achieved without any formal agreement
or working arrangement. The close co-operation already achieved with the
Bank in the Preparatory Committee and Conference on Trade and Employment,
supports this view. If subsequent practical experience suggests that a
formalization of working arrangements would be an advantage, the question can
be studied at that time by the Organization and the Bank.
/United Nations Page 2
United Nations Educational, Scientific and Cultural Organization
The UNESCO programme includes the implementation of a number of
resolution of its General Conference on minimizing barriers to the free
flow of educational, scientific and cultural materials. It is clear from
informal consultations which have taken place between the secretariats
of the lnterim Commission and of UNESCO that the latter are fully conscious
of the value of consulting and collaborating with the ITO on such matters.
It will also be desirable to keep in touch with UNESCO in so far as that
organization interests itself in problems of economic development and
particularly in such matters as technical fellowships, technical
bibliographies, etc. (see interim report on Havana resolution on
economic development, ICITO /EC. 2/7). No formal arrangement with UNESCO
would appear to be necessary.
International Labour Organization
The ILO is interested in a number of matters within the purview of
the Charter. Its most immediate and specific interest is in Article 7. In
paragraph 3 of that article, the ITO is expressly enjoined to consult and
co-operate with the ILO in all matters relating to Labour standards that
may be referred to the Organization in accordance with the provisions of
Articles 94 and 95. More generally, the ILO is directly concerned with all
questions of employment policy. The ILO also has an interest in some
aspects of commodity agreements and would probably, for this reason, wish
to be considered a competent organization under Article 67 on the
understanding that the rights thus accorded to the ILO would only be
exercised in respect to such matters as are of concern to the ILO. The
secretariats of the Interim Commission and of the ILO have initiated informal
consultations and a report based on these consultations will at a later
date be placed before the Executive Commiittee.
International Civil Aviation Organization
Informal consultations between the secretariats of the Interim
Commission and of the ICAC suggest that while no formal agreement of
relationship between the ITO and the ICAO should be necessary, it might
be desirable to record for example by an exchange of letters, an
understanding on certain matters of mutual interest. The matters on which
such a common understanding might be useful are Articles 33, 36 and 53 of the
Havana Charter.
(a) Articles 33 and 36: ICAO would recognize the ITO's general
responsibilities under these articles with special reference to
Article 33, paragraph 6, and Article 36, paragraph 4. Similar
provisions are contained in the ICA Convention with specific Page 3
reference to aviation (Articles 22 and 23). The administration
of custom formalities in connection with the movement of aircraft
and goods carried therein presents a unique problem because of
the speed of this mode of transport and the consequent necessity
for special procedures. The responsibilities of ICAO and ITO
in this field are, therefore, complementary and the two
organizations should collaborate in order to harmonize their
activities insofar as they relate to common problems.
(b) Article 53, paragraph 3: If a matter is referred to ITO
under this article referring to civil aviation, the ITO and
the ICAO should confer in determining whether ICAO is the
appropriate inter-governmental organization to which the matter
should be transferred.
If the Executive Committee concurs in the desirability of such an
understanding, the Secretariat will be in a position to suggest a suitable
text.
Inter-Governmental Maritime Consultative Organization
It will probably be desirable to establish close relations between the
ITO and IMCO. In this connection the Executive Committee will recall that
shipping services are by the interpretative note to Article 53 excepted
from the provisions of that article. As the IMCO is still in its
preparatory stage the Secretariat has not yet been able to formulate any
recommendations. The Secretariat is, however, in touch with theExecutive
Secretary of IMCO and hopes to have further informal consultations with
him in the near future.
Univerals Postal Union
The ITO nad the UPU have certain common interests in connection
with the application to improtation and exportation of goods by parcel
post of the general cmomercial provisions in Section E of Chapter IV of
the Havana Charter. There are, however, matters which can be dealt with
ad hoc as they arise.
United International Office for the Protection of Industrial, Literary and
Artistic Property (Berne Bureau) (See Annex)
This organization has responsibility, inter alia, for the
administration of the International Union for the Protection of Industrial
Property. The ITO may find itself dealing with matters within the competence
of the Berne Bureau in consequence of the provisions of Article 49 and
Section E of Chapter IV. The Secretariat proposes to make further inquiries
into the activities of the Berne Bureau and will subsequently report more
fully to the Executive Committee. ICITO/EC.2/2/Add. 5
Page 4
Regional Organizations other than Regional Commissions of United Nations
The ITO may in the of the work find in establishing
relations with such regional organizations as the inter- American
Organizations the Arab League and the Caribbean Conmission. These
bodies have been consulted by the Secretariat in preparing the Interim
Report on Economic Development in connection with item 7 of the
provisional Agenda.
Organization for European Economic Co-operation
The Convention for European Economic Co-operation contains the
following articles which are of special interest to the ITO:
"Article 4
The Contracting Parties will develop, in mutual co-operation,
the maximum possible interchange of goods and services. To this end
they will continue the efforts already initiated to achieve as soon
as possible a multilateral system of payments among themselves,
and will co-operate in relaxing restrictions on trade and payments
between one another, with the object of abolishing as soon as
possible those restrictions which at present hamper such trade and
payments.
In the application of this Article, the Contracting Parties will
take due account of the necessity that they should, collectively and
individually, correct or avoid excessive disequilibrium in their
financial and economic relations, both amongst themselves and with
non-participating countries.
"Article 5
The Contracting Parties agree to strengthen their economic links
by all methods which they may determine will further the objectives
of the present Convention. They will continue the study of Customs
Unions or analagous arrangements such as free trade areas, the
formation of which might constitute one of the methods of achieving
these objectives. Those Contracting Parties which have already
agreed in principle to the creation of Customs Unions will further
the establishment of such Unions as rapidly as conditions permit.
"Article 6
The Contracting Parties wiill co-operate with one another and
with other like-minded countries in reducing tariff and other
barriers to the expansion of trade, with a view to achieving a sound
and balanced multilateral trading system such as will accord with
the principle of the Havana Chrater.
According to the proposals of the Bogota Conference to be unified as
part of the Organization of American States. ICITO/EC .2/2/Add. 5
Page 5
"Artice 7
Each Contracting Party will, heaving due regard to the need
for a high and stable level of trade and employment and for
avoiding or countering the dangers of inflation, take such steps
as lie within its rower to achieve or maintain the stability of
its currency and of its internal financial position, sound rates
of exchange and, Generally, confidence in its monetary system."
The Secretary-General of the OEEC has expressed the wish of that
organization to establish the closest and most effective collaboration
with the Interim Commission and in particular to arrange for a regular
exchange of information and documentation. It would appear desirable
that the Interim Commission should welcome this offer for exchange of
information in order that the Commission may be in a position to furnish
the first conference of the ITO with a report on the activities and plans
of the OEEC in matters of close concern to the ITO. Moreover, the
Executive Secretary, in replyling to the Secretary-General of the OEEC,
suggested that the Interim Commission and the OEEC should consult
together at some future date regarding the relations to be established
between the ITO and the OEEC when the former organization comes into
being.
/ANNEX ANNEX
INTER-GOVERNMENTAL ORGANIZATIONS OUTSIDE THE FRAMEWORK OF THE UNITED NATIONS TO BE CONSIDERED
WITH REFERNCE TO ARTICLE 87, PARAGRAPHS 1 AND 3
Name and Address Founded . Membership General Purposes Hi History or Activtities
Internatiorl Customs
Tariff Bureau, *
(Bureau international
des Tarifs doumaniers).
38 rue de
1 'Association,
Bruxelles.
1891 (The In-
ternational
Union for the
Publication of
Customs Tariffs
was created by
a Convention
in 1890).
Albania, Argentina,
Australia, Austria,
Belgium, Bolivia, Brazil,
United Kingdom, Bulgaria,
Canada, Chile, China,
Colombia, Czechoslovakia,
Belgian Congo, Costa
Rica, Cuba, Denmark,
Dominican Republic,
Egypt, Ecuador, Estonia,
Finland, France Germany,
Greece, Haiti, Honduras,
Hungary, India, Iran,
Italy, Japan, Latvia,
Lithuania, Luxembourg,
Mexico, Netherlands,
Nicaragua, Norway,
Panama, Paraguay Peru,
Poland, Portugal,
Roumania, Siam, Spain,
Sweden, Switzerland,
Turkey, Union of South
Africa, United States of
America, Union of
Soviet Socialist
Republics, Uruguay,
Venezuela, Yugolavia.
The objective of the Union was The Bureau has pursued its task
"to publish, on joint account without interruption for 57 years
and to make known, as promptly despite the two world wars. But
and as accurately as possible since 1939, the Bureau has found
the custome tariffs of the it more and. more difficult to
various countries of the world carry on its work owing to
and any amendments made thereto financial insufficiency. It has
in the future". The Bureau was been proposed by its director
created for that purpose and is that the budget should be
charged with the translation and increased by 4 to 5 times, and
publication of said tariffs the number of languages used in
together with any legislative or the "Bulletin" (n-ow 5 languages
administrative provisions English, French, Italian, German
amending the same. and Spanish) should te
reduced.
* See also ICTI/fEC.2/2/Add.4
I .
-
-
/Unitad Internatilial Name and Address Founded Membership General Purposes History or Activities
United International
Office for the Pro-
tection of Industrial
Literary and Artistic
Property (Bureau
international reunis
pour la Protection
de la Proplete
industrielle
litteraire et
artistique)
Helvetiastrasse 7,
Berne, Suisse.
Created after the Signatory countries of
formation of the the Industrial Property
International Union: Australia,
Union for the Austria, Belgium,
Protection of Brazil, Bulgaria,
Industrial Canada, Cuba,
Property (Paris Czechoslovakia, Danzig,
Convention 1883) Denmark Dominican
and the Inter- Republic Estonia,
national Union Finland, France,
for the Germany, Great
Protection of Britain, Greece,
Literary and Hungar, Italy,
Artistique Japan, Latvia,
Works (Bearne Luxembourg, Mexico,
Convention Morocco, Netherlands,
1886) New Zealand, Norway,
Poland, Portugal,
Roumania, Yugoslavia,
Spain, Sweden,
Swetzerland, Syria and
Lebanon, Tunis, Turkey,
Uinited States of
America.
Signatory countries of
the Literary and
Artistic Poperty Union:
Australia, Austria,
Belgium, Brazil,
Bulgaria, Canada,
Czechoslovakia, Danzig,
Denmark, Estonia,
Finland, France,
Germany, Great Britain,
Greece, Haiti, Hungary,
India, Eire, Italy,
To assure permanently the
administration of the two
Unions, to gather
information of all nature
relating to the protection
of industrial property and
the right of authors, to
maintain steady relations
with the national
administrations with the
same attributions in the
different contracting
countries. To prepare for
Conferences far the
revision of the
Conventions.
Various publications.
,
/Japan,
- , - Name and Address Founded Membership General Purposes History or Activities
United International
Office for the Pro-
tection of Industrial
Literary and Artistic
Property (cont'd)
Japan, Yugoslavia,
Latvia, Liechtenstein,
Luxemubourg, Morocco,
Monaco, Nethetherlands,
New Zealand, Norway,
Poland, Portugal,
Roumnia, Siam, Spain,
Sweden, Switzerland,
Syria and Lebanon,
Tunis, Union of South
Africa, Vatican City.
Bank for International
Settlements. (Banque
des Reglements
internationaux)
7 Centralbaherstrasse,
Basle, Switzerland
20 January 1930
by a Convention,
at the Hague
Conferece.
Constituted by the
Governments of
Belgium, France,
Germany, Italy,
Japan, Switzerland
and United Kingdom,
The right of representa-
tion and of voting at
the general meeting of
the BIS in conformity
with Article 15 of the
Bank's Statutes is now
exercised by 20
national (central)
banks.
To promote the co-operation of
central banks and to provide
additional facilities for
international and financial
operations, and to act as
trustee or agent in regard
to international financial
settlements entrusted to it
under agreement with parties
concerned.
/Organization Name and Address Founded Membership General Purposes History or Activities
Organization of
American States,
Pan American Union
Washington, D. C.
April 1948
"All American States
that ratify the present
Charter are Members of
the Organization. "
To achieve among the American
States an order of peace and
justice to promote their
solidarity, to strengthen their
collaboratetion, and to defend
their sovereignty. their
territorial integrity and their
independence. To be a regional
agency within the United
Nations, one of the essential
tasks is to promote, by
co-operative action, their
economic social and
cultural development.
The following have now become
organs of the QAS: The Inter-
American Conference, the
Meeting of Consultation of
Ministers of Foreign Affairs,
the Pan American Union, the
Inter-American Economic and
Social Council, the Inter-
American Council of Jurists,
the Inter-American Cultural
Council. The executive power
of the Organization is vested
in the Council of the
Organization, which is composed
of one representative of each
Member State. One of its
duties is the promotion and
facilitating of collaboration
between the OAS and the United
Nations as well as between the
Inter-American specialized
agencies and similar inter-
national agencies.
/Pan American Union, Name and Address Founded Membership General - - A - - I
*Pan American Union,
Washingt=<, D. C.
By a resolution
of ,he Fourth
International
Conference of
American States
in 1910 to
replace Ghe
former Inter-
national Bureau
of tIe
American
Rplblics.
td a per
manent organ
of U WO by
Bogo Charter
of April 1948.
Argen-ina, Bolivia,
Fraz-l, Ch2le,
Colombia, Costa Rica,
Cuba, Dordnicrn
Republic, cua[or,
Guemala, Haiti,
Honduras, 4xico,
Nicaragua,
Panama, Perafey
Peru, E1Salvador,
United States,
Uruguay, Venezuela,
To be the central and perment
organ of the Ora&nzaion of
American "ates; to perform,
uner .h dire -oin -The
Ocretar--Gneral of the 'AS
the duties assi.ea o it by P
the Charter of the CAS and
other duties assigned to it in
other treaties and agreements;
to promote under the direction
of the OA's Council economic.
social'juridical and
cultural relations among member
states; to perform other
functions inclu.u te
convocation of the Inter-
American Conference, advising
on agenda matters, rendering
conference service, custody
and depository of documento
and in ar-ferican
instrnets, etc,
*Ltr-Airicn
con:)lcd. Soial
Council
Pan American UnionS
Washington, D. C.
Created All 21 fe;-i
provisionally by Republics (see list
a reOtution of given above)
the intr
&erican Confer-
in l945 as a
perznnt agency
subsidiax to
the Govain'
To p~ 1te economic and
social welfare.f the kirin
nations through effective
co.perati-nfor better
utilization of their natural
rtesources, the develo-neo
their agriculture and industry
eand the raising of th
standards of livii f their
* otProposed by the boga Conference to -e part of the American States.
(Proposed) To propose the means
foruthe rendering of mttual
technical assistance; to
co-ordinate in ir-American
economic and social activities,
so undertake 5tudie8, to
assemble- and report on economic
and social matters; to suggest
the convqcation 2f specialized
/Board
iembersrdP
UnCL Aacis foul-Ic
Pl'ss>Q<
A -j- ! - - Name and Address Founded Membership General Purposes History or Activities
Inter-American
Economic and Social
Council (count'd )
Board of the PAU.
Now made an organ
of the OAS by
Bogota Conference
of April 1948.
people.
conferences; and to carry out
other activities. The Bogota
Conference resolved (April 1948)
that this Council should appoint
a Committee of 3 to meet the
ECLA of the United Nations in
Santiago, Chile, in June 1948 to
draft an appropriate formula for
the functioning of the two
organizations and to outline their
respective fields of activitt and
their general programmes so as to
avoid duplication in organization,
Personnel and functions. Pending
final approval of these, no
study or undertaking should be
carried out without prior
consultation.
Caribbean Commission
(Commission des
Caraibes)
Kent House, Port of
Spain, Trinided,
B.W.I.
By an Agreement
signed in
October 1946
France, Netherlands,
United Kingdom and
United States of
America.
To be a consultative body
which has such legal
capacity as may be necessary
for the exercise of its
functions and the fulfilment
of its purposes. To concern
itself with economic and
social matters of common
interest to the Caribbean
area particularly fisheries,
health,housing, Industry,
labour, social welfare and
trade, To study, formulate
and recommend measures,
Programmes and policies with
The Commission is an expansion of
the Anglo-American Caribbean
Commission established in 1942
by the Government of the United
Kingdom and the United States of
America for the same purposes as
stated above. Later the
Governments of France and
Netherlands agreed in December 1945
to join the Commission, now
renamed the Caribbean Commission.
/respect Name and Address Founded Membership General Purposes History or Activities.
Caribbean Commission
(cont 'd)
respect to social and econonmic
problems designed to
contribute to the well-being
of the area. To advise the
member and territorial
governments on all these
matters, and make recommenda-
tions for carrying into effect
of all action necessary or
desirable in this connection.
To assist in co-ordinating
local projects which have
local significance and to
provide technical guidance
from a wide field not
otherwise available, etc.
Permanent Court
of Arbitration,
(Cour Permanente
d 'Arbitrage)
The Hague,
Netherlands.
1899 (and
Convention of
1907)
Argentina, Belgium,
Bolivia, Brazil,
United Kingdom,
Bulgaria, Chile, China.,
Colombia, Cuba,
Czechoslovakia, Denmark,
Dominican Republic,
Ecuador, Finland, France,
Germany, Greece,
Guatemala, Haiti,
Hungary, Italy, Iran,
Japan, Luxembourg,
Mexico, Netherlands,
Nicaragua, Norway,
Panama, Portugal, Peru
Poland, Roumania,
El Salvador, Siam,
To facilitate immediate The Court is composed of persons
recourse to arbitration in of known competence in questions
international disputes not of international law. From
settled by diplomacy. these persons, parties to a
dispute may choose their
arbitrators to form a tribunal.
After 1921, the Court functioned.
side by side with the Permanent
Court of International Justice,
but in many ways it was
superseded by the latter. However,
the judges of the Permanent
Court of InternationalJjustice
were elected from a listoIf
persons nmMinated by the
national groups in the Court
Of Arbitration. The same method
/Spain. Name and Address Founded
General Purposes
Permanent Court
of Arbitration
(cont'd)
Spain, Sweden,
Switzerland, Turkey,
United States of
America, Uruguay,
Venezuela, Yugoslavia.
of formation has also been
adopted by the United Nations
for the International Court of
Justice.
Organization for
European Economic
Co-operation
(OEEc)
Paris, France,
April 1948
Austria, Belgium,
Denmark, Ireland,
France, Greece, Iceland,
Italy, Luxembourg,
Netherlands, Norway,
Portugal, Sweden,
Switzerland, United
Kingdom, Turkey and
Western Germany.
To implement the principles
and to achieve the aims set
forth in the General Report
of the Committee of
European Economic
Co-operation, particularly,
the speedy establishment
of sound economic conditions
enabling the states speedily
to achieve and maintain a
satisfactory level of
economic activity without
extraordinary outside
assistance, and to make
their full contribution to
world economic stabiliby.
/International Bureau
(Proposed): To prepare necessary
overall production, import and
export programmes; to consider
the best use of productive
capacity and man power to
further the objectives set
down; to promote international
consultation, to consider the
measures and create machinery
for cooperation, especially in
matters of trade, international
payments and movement of labour;
to investigate methods of
co-ordinating purchasing policies;
to assist members to surmount
difficulties in executing the
co-operation programme; to
make recommendations to the
United States and other
Governments or internationaI
organizations on the allocation
of commodities among members,
having due regard to the
allocating fuctions of other
international organizations; to
insure the most efficient use
of aid and indigenous resources;
to report on activity and to
collect information.
History or Activities
Membership Name and Address Founded Membership General Purposes History or Activities
International Bureau
of Exhibitions,
(Bureau international
ies Expositions),
60 Avenue de la
Bourdonais, Paris 7e,
France.
League of Arab States
Ligue des Etats
Arabes, Cairo, Egypt
In 1931 by the
Convention of
22 November 1928
at the end of a
conference.
By the Pact of
the Arab States
concluded on
22 March 1948
Austria, France, Roumania,
Sweden, Switzerland,
Tunisia, Morocco, Italy,
Belgium, Czechoslovakia,
Portugal, Denmark,
Poland, Greece, Norway
and Finland. (Withdrawn
during the war and
about to rejoin:
Great Britain, the
Netherlands, Canada,
pending the revision of
the Convention.)
Syria, Transjordan,
iraq, Saudi Arabia,
Lebanon, Egypt and
Yemen.
To supervise the application Functioned since 1931 and took
of the Convention, which part in the organization of all
regulates the frequency of the major international exhibitions.
the International exhibitions
and establishes the Relations:
obligations of member
governments to offer and On 20 May 1931, the Council of the
facilitate exhibitions. In League of Nations applying
principle, no member country Article 24 of the Covenant
Thay organize an decided to place the Bureau
international exhibition under its direction.
before the Bureau has been Publications.
informed, nor may any member
country take part in an
exhibition held in a non-
member country until it has
consulted the Bureau,
The strengthening of the
relations between the member
states, the co-ordination of
their policies in order to
achieve co-operation between
then and to safeguard their
independence and sovereignty;
and a general concern with the
affairs and interests of the
Arab countries. Close co-
operation among member states
is aimed at on, inter alia,
economic and financial
affairs, incuding commercial
relations, customs currency
and questions of agriculture
and industry. |
GATT Library | yc472vb0217 | Relations of the International Trade Organization with other Inter-Governmental Organizations | Interim Commission for the International Trade Organization, August 31, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 31/08/1948 | official documents | ICITO/EC.2/2/Add.5/Corr.1. and ICITO/EC.2/2/ADD.5 ICITO/EC.2/6/REV.1 | https://exhibits.stanford.edu/gatt/catalog/yc472vb0217 | yc472vb0217_90060182.xml | GATT_146 | 346 | 2,385 | UNRESTRICTED
ICITO/EC. 2/2/Add. 5/Corr.1.
31 August 1948
INTERIM COMMISSION
FOR THE INTERNATIONAL
TRADE ORGANIZATION
COMMISSION INTERIMAIRE DE
L'ORGANISATION INTERNATIONALE
DU COMMERCE
ENGLISH
ORIGINAL: FRENCH
EXECUTIVE COMMITTEE
Second Session
Item 4 (e) of the Revised Provisional Agenda (Document
ICITO/EC.2/1 Rev.1)
RELATIONS OF THE INTERNATIONAL TRADE ORGANIZATION
WITH OTHER INTER-GOVERNMENTAL ORGANIZATIONS
Add at the end of document ICITO/EC.2/2/Add.5 the
text annexed hereto. Name and Address Founded Membership General Purposes History or Activities.
Study Group for
European Customs
Union (Groupe
d'Etudes pour
l 'nion douanióre
ouropéenne), 5
rue de Louvain,
Brussels, Belgium.
September 1947
in Brussels
Austria, Belgium,
Denmark, France,
Greece, United
Kingdom, Iceland,
Ireland, Italy,
Luxembourg,
Netherlands .
Norway, Portugal,
Switzerland,
Turkey, Bizone,
French Zone, Sweden.
Study of the most appro-
priate means of placing
European economy on a
sound and stable basis
within the framework of
the development of
European and world trade,
in particular by the
establishment of a general
European customs union, or,
failing that, of regionaI
customs unions. To facili-
tate the practical study of
the question two immediate
aims are being pursued
1) Preparation of a joint
tariff nomenclature based
on the Geneva nomenclature.
This work is being carried
out by the permanent
Tariff Bureau of the Study
Group and will, it is
hoped, be completed before
the end of 1948.
2) Study by an economic
committee of the reper-
cussions the establieh-
ment of a Customs lron
would have on the economy
of the participating
countries.
1) The Tariff Bureau of the
Study Group has been in per-
menent session in Brussels
since 15 March 1948 to draw
uP a draft tariff nomenclature.
2) The Economic Committee held
its first session on 18 May
1948, in order to draw up a
questionnaire to be sent to
the participating countries.
The second session which will
be held in September will
examine the replies to the
questionnaire and draw up a
general report.
3) Since September 1947 the
Study Group itself has held
three plenary sessions during
which practical methods for
the investigation were devised.
The next session will be held
in November 1948. |
GATT Library | kt296tb4084 | Relations of the International Trade Organization with other Inter-governmental Organizations Item 4(e) of the Agenda | Interim Commission for the International Trade Organization, September 3, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 03/09/1948 | official documents | ICITO/EC.2/W.2, ICITO/EC.2/W.1-2, ICITO/EC.2/SC.1/1-11, and ICITO/EC.2/SC.2/1,2 | https://exhibits.stanford.edu/gatt/catalog/kt296tb4084 | kt296tb4084_90180070.xml | GATT_146 | 289 | 2,115 | INTERIM COMMISSION COMMISSION INTERIMAIRE DE LIMITED C
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE 3 september 1948
TRADE ORGANIZATION DU COMMERCE ORIGINAL :ENGLISH
Executive Committee
Second Session
Relations of the International Trade Organization
with other Inter-governmental Organizations
Item 4(e) of the Agenda
With reference to this item of the Agenda, the follow-
ing Resolution adopted by the Economic and Social Council at
its Seventh Session on 29 August, 1948, is circulated here-
with for the information of delegates.
" THE ECONOMIC AND SOCIAL COUNCIL
BELIEVING that the establishment of the United
Nations and of the specialized agencies having wide
responsibilities in the economic, social, cultural,
educational, health and related fields makes
desirable re-examination by Member Governments of
possible duplication or dispersion of effort between
these organizations and other existing inter-
governmental organizations ;
RECOGNIZING that any action to simplify the
structure of inter-governmental organizations could
be taken only by governments members of such
organizations;
REQUESTS the Secretary-General to transmit,
not later than October 15, 1948, to Member States
and the specialized agencies a list of inter-
governmental organizations, to include those in
E/818 and E/818/Add.1, prepared in response to the
Councils resolution 128 (VI), and any other
organizations established by inter-governmental
agreement which he may consider should be added;
RECOMMENDS that Member States and the specialized
agencies submit by February 1, 1949, their views
regarding
a) the possible termination absorption or
integration of any of these organizations into
the United Nations or the specialized agencies:
b) relationships which might be established
between any of the listed organizations and the
United Nations or the specialized agencies.
REQUESTS the Secretary-General to submit by
May 1, 1949, a consolidated report, based on the
replies received, for consideration by the Council
at its ninth session." |
GATT Library | dv859rk6480 | Relations of the International Trade Organization with the United Nations and other Inter-Governmental Organizations. (Articles 86 and 87 of the Havana Charter) (Item 4 of the provisional agenda) | Interim Commission for the International Trade Organization, June 17, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) | 17/06/1948 | official documents | ICITO/EC.2/2 and ICITO/EC.2/INF.1-3 ICITO/EC.2/1-2/ADD.4 | https://exhibits.stanford.edu/gatt/catalog/dv859rk6480 | dv859rk6480_90060175.xml | GATT_146 | 682 | 4,742 | INTERIM COMMISSION COMMISSION INTERIMAIRE DE UNRESTRICTED
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE ICITO/EC.2/2
TRADE ORGANIZATION DU COMMERCE 17 June 1948
ORIGINAL: ENGLISH
RELATIONS OF THE INTERNATIONAL TRADE ORGANIZATION WITH THE UNITED NATIONS AND OTHER INTER-GOVERNMENTAL ORGANIZATIONS
(Articles 86 and 87 of the Havana Charter)
(Item 4 of the provisional agenda)
The Interim Commission is required, under paragraph 2 (c) of its
terms of reference, to prepare in consultation with the United Nations a
draft agreement of relationships as contemplated in paragraph 1 of
Article 86 of the Charter, for consideration by the first regular session
of the Conference and under paragraph 2 (d) to prepare in consultation
with inter-governmental organizations other than the United Nations
documents and recommendations regarding the implementation of paragraphs 1
and 3 of Article 87 of the Havana Charter. It is convenient to follow the
arrangements of the terms of reference of the Commission and to treat
separately the question of relationships with the United Nations and the
question of relationships with inter-governmental organizations other than
the United Nations.
As regards the former, Article 86 provides that the Organization shall
be brought into relationship with the United Nations "as soon as practicable...
by agreement approved by the Conference". It is accordingly desirable that
the Executive Committee should prepare careful and detailed proposals for
consideration by the Conference, so that it might be possible for the
Conference to approve a draft at its first session for forwading to the
United Nations for concurrence, without the need for further elaborate
The Secretariat has therefore entered into consultation with the
Secretariat of the united Nations With a view to providing the Executive
Committee with a first draft for its study. This draft with story
notes will be circulated as an addendum to the present paper as soon as
the Secretariat consultations have been completed.*
*The Secretariat suggests that if the Executive Committee finds the
general lines of the draft satisfactory, it would be desirable for it
to agree that the principles of the draft relationship agreement be
applied so far as practicable to the relationship between the
Interim Commission for the Organization and United Nations.
/The question Page 2
The question of relationship between the International Trade
Organization and inter-governmental organizations other than the
United Nations presents somewhat different considerations There is not
in this case any great urgency to conclude formal agreements between the
International Trade Organization and other inter-governmental organizations.
Indeed, the Conference may wish to defer the formalization of relationships
with other inter- governmental organizations until it is better able to
Judge from experience what the form or contents of these agreements should
be. On the other hand, the fact that the International Trade Organization
has functions of direct concern to other agencies and will be entering
actively into fields in which other international agencies have been
operating for some considerable time probably makes it desirable that
certain working relationships should at the outset be established between
the Organization and these agencies. These working arrangements would be
subject to review from time to time in the light of experience. The
matters which would appear to require to be covered by such working
arrangements are in some cases abundantly clear, for example, co-operation
with the International Monetary Fund, arrangements with the FAO regarding
the operation of Chapter VI, etc.
The secretariat has therefore entered into consultation with the
inter-governmental organizations concerned with matters covered by the
ITO Charter, with a view to making suggestions to the Executive Committee
as a basis for the recommendations reffered to in paragraph 2 (d) of the
lnterim Commission's terms of reference. Separate documents will be
circulated as addenda to this paper regarding the International Monetary
Fund, the FAO, the ILO and the ICAO.
The case of the International Tariff Bureau is a special one, and the
Secretariat is preparing information to enable the Executive Committee to
determine whether it should recommend to the Conference that authority be
given to the Director-General to enter into an agreement under paragraph 3
of Article 87. A further addendum to this paper will be circulated on this
subject. |
GATT Library | km647ss5645 | Relations with Non-Governmental Organizations : Note by the Secretariat of the Interim Commission for the International Trade Organization. (Item 5 of Provisional Agenda) | Interim Commission for the International Trade Organization, July 15, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 15/07/1948 | official documents | ICITO/EC.2/11 and ICITO/EC.2/7/N-ICITO/EC.2/11 | https://exhibits.stanford.edu/gatt/catalog/km647ss5645 | km647ss5645_90060204.xml | GATT_146 | 5,962 | 42,579 | INTERIM COMMISSION COMMISSION INTERIMAIRE DE
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE
TRADE ORGANIzATION DU COMMERCE UNRESTRICTED ICITO/EC.2/11
15 July 1948
ORIGINAL: ENGLISH
EXECUTIVE COMMITTEE
Second Session
RELATIONS WITH NON-GOVERNMENTAL ORGANIZATIONS
Note by the Secretariat of the Interim Commission for
the International Trade Organization
(Item 5 of Provisional Agenda)
Paragraph 2 of Article 87 of the Havana Charter provides that:
"the Organization may make suitable arrangements for consultation
and co-operation with non-governmental organizations concerned with
matters within the scope of this Charter".
The Resolution establishing the Interim Commission for the
International Trade Organization instructs the Commission:
"to prepare, in consultation with non-governmental organizations
for presentation to the first regular session of the conference,
recommendations regarding the implementation of the provisions
of paragraph 2, Article 87 of the Charter".
Attached as Annex A is a list of non-governmental organizations
which are concerned with various matters within the scope of the Charter.
Attached as Annex B is a letter dated 2 July 1948 from the International
Chamber of Commerce.
As a first step in considering this question it may be useful to
summarize briefly the arrangements made by the Economic and Social Council
and the Specialized Agencies for consultation with inter-governmental
organizations.
Economic and Social Council
The constitutional provision for the arrangements is found in
Article 71 of the United Nations Charter:
"The Economic and Social Council may make suitable arrangements
for consultation with non-governmental organizations which are
concerned with matters within its competence. Such arrangements may
be made with international organizations and, where appropriate, with
national organizations after consultation with the Member of the
United Nations concerned".
/ p ose of ICITO/EC .2/11
Page 2
The purpose of consultation as set out in the Report of the Committee
on Arrangements for Consultation with Non-Governmental Organizations
(21 June 1946) is:
"On the one hand for the purpose of enabling the Council or
one of its bodies to secure expert information or advice from
organizations having special competence ....... and, on the other
hand, to enable organizations which represent important elements
of public opinion to express their views".
The consultative organizations are divided into three categories
as follows:
(A) Organizations which have a basic interest in most of the
activities of the Council, and are closely linked with the
economic or social life of the areas which they represent;
and it is stated that this category will include organizations
of labour, of management and business, of farmers and consumers;
(B) Organizations which have a special competence but are
concerned specifically with only a few of the fields of
activity covered by the Council;
(C) Organizations which are primarily concerned with the
development of public opinion and with the dissemination of
information.
Of the seventy-one organizations which have so far been granted
consultative status, nine have been placed in Category (A), fifty-seven
in Category (B) and five in Category (C) . The Council's Committee on
Arrangements for Consultation with Non-Governmental Organizations is
charged with the duty of examining the applications for consultative
status and making recommendations thereon to the Council.
The opportunities given to consultative organizations to present
their views on economic and social questions to the Council and its
Commissions fall under several heads. In the first place, all
consultative organizations may send their authorized representatives
to attend the meetings of the Council and its Commissions. Arrangements
have been made to send all Economic and Social Council documents to
the headquarters of all organizations having consultative status. The
organizations in Category (A) may submit written statements expressing
their views on any economic or social matter; these communications are
reproduced in full and distributed as official documents by the
United Nations Secretariat to all the Members, of the United Nations,
the Specialized Agencies,. theNon-Governmental Organizations with
consultative status, etC. Organizations in Categories (B) and (C) may
also submit written statements and suggestions and the Secretariat
prepares and distributes "a list of all such communications, briefly
indicating the substance of each". These communications are reproduced
/in full and ICITO/EC.2/11
Page 3
in full and distributed only on the request of a member of the Council.
As for consultation with Commissions it is provided, in regard to
organizations in Category (A), that consultation should normally be with
the Commission itself, In the case of the organizations in the other
categories, the Commissions may consult with these organizations either
directly or through a committee or committees established for the
purpose. When the consultant attended a commission he may ask to speak.
On numerous occasions, consultants have presented the views of their
organizations on particular matters at the time they arose in the
Commissions. The consultative organizations may also express their
views to the Council on the report of a Commission, or on other matters,
through the Council's Non-Governmental Organizations Committee.
The arrangements for consultation, as provided for in the afore-
mentioned Report were expanded at the fourth and fifth sessions of the
Council. In the first place, the amended rules of procedure of the
Council provide that organizations in Category (A) may submit items
for the provisional agenda of the Council. When the Agenda Committee of
the Council considers this provisional agenda in order to recommend
to the Council what its definitive agenda should be, it is provided that
an "organization in Category (A) which has requested the inclusion of
an item in the provisional agenda shall be entitled to present its
views through its representative at any meeting of the Agenda Committee
at which the question of the inclusion of the item is discussed".
Organizations in Category (A) have also been granted the right to place
items on the provisional agenda of the functional commissions.
At the fifth and sixth sessions of the Council, a number of items
proposed by non-governmental organizations were placed on the definitive
agenda.
An additional right given to an organization in Category (A) is that
when the Council discusses the substance of an item presented by it,
its representative is entitled, as a matter of right, to make an
introductory statement of an "expository nature" to the Council in support
of the proposal of his organization. It is, furthermore, provided that
the President of the Council, may, with the consent of the Council, invite
the representative of such an organization to make in the course of
the debate an additional statement for the purposes of clarification.
On the other hand, organizations in Category (A) which desire to
be heard by the Council on any item of the agenda other than one
submitted by themselves are required to present a written request to the
Council's Non-Governmental Organizations Committee "not later than forty-
eight hours after the adoption of the agenda by the Council".
/Specialized Agencies ICITO/EC.2/11
Page 4
Specialized Agencies
The procedure adopted by the Specialized Agencies varies widely.
The International Bank, the International Monetary Fund and the Universal
Postal Union have no formal relations whatever with non-governmental
organizations. On the other hand, the FAO has formal relations and
divides non-governmental organizations into three categories on the lines
of the procedure of the Economic and Social Council. Other Specialized
Agencies have procedures of varying degrees of formality. Most of these
procedures provide for some participation by non-governmental
organizations in the meetings of the agency concerned. The procedure
of the FAO in this respect approximates to that of the Economic and
Social Council; that of the ILO allows non-governmental international
organizations with which it has consultative arrangements to address
meetings of the Conference, Governing Body and other organs on the
invitation of the Chairman of the meeting concerned. It appears that
none of the Specialized Agencies make any provision for the submission
of agenda items by non-governmental organizations and only the FAO
appears to make provision for the distribution to members of written
statements or notification of the receipt of written statements from
non-governmental organizations. Some of the Specialized Agencies
provide for the regular distribution of documents to non-governmental
organizations; others do not. The Director-General of UNESCO is
empowered "to bring together in an advisory capacity, on an ad hoc
basis, representatives of the international non-governmental
organizations and semi-governmental organizations approved for
consultative status" and UNESCO has one such Committee, namely, the
Temporary International Council for Educational Reconstruction
consisting of the representatives of twenty-one non-governmental
organizations.
Conclusions and Recommendations
It is suggested that the procedure regarding non-governmental
organizations appropriate to a deliberative body such as the Economic and
Social Council is not necessarily the most suitable for the
International Trade Organization. The Havana Charter requires the ITO
to deal with an immense number of commercial and technical matters
and it is clearly desirable that the ITO should be able to take full
advantage of the knowledge and experience of the non-governmental
organizations in these various fields. However it is suggested that it
would not be advantageous to attempt to define rigidly or to
circumscribe the methods of consultation and the circumstances under
/which consultation ICITO/EC.2/11
Page 5
which consultation can most effectively take place. In particular it
would seem most undesirable to attempt to divide non-governmental
organizations into rigid categories. Such a classification is liable
to give: rise to questions of prestige and to be wrongly interpreted
as measuring the importance of the organization. Furthermore a system
of classification, with specific rights and duties Attaching to each
category, leads to rigidity and has substantial disadvantages as
compared with a flexible-policy whereby the degree and nature of
consultation is determined according to the circumstances of each
particular case. If the Economic and Social Council pattern were
followed the highest category, with the fullest consultative rights,
would be reserved for organization with the broadest interest in the
work of the ITO as a whole. In practice, however, it might well be
that on a specific technical matter very close collaboration might be
desirable with a specialized organization which would not qualify for
the highest consultative category. In the light of these considerations
and of the experience of other agencies of the United Nations it would
appear desirable for the ITO, at any rate at the initial stage and
subject to review later, to envisage flexible arrangements as set out
below rather than a rigid and formal procedure.
It is suggested that the First Conference should formally place
on record that the ITO is desirous of taking full advantage of the
knowledge and experience of non-governmental organizations engaged in
work within its purview and Instruct the Director-General to act
accordingly.
As regards attendance at the Conference it is suggested that the
ITO should welcome observers from non-governmental organizations at the
sessions of its Conference. For this purpose it is suggested that
non-governmental organizations should apply to the Director-General for
inclusion on a register and the Director-General in consultation as
he thinks necessary with the Executive Board should decide which
organizations should be so included. These non-governmental organizations
should have the right to suggest items for inclusion in the provisional
agenda of the Conference and, if the items are accepted and included
in the final agenda, to make a statement or statements to the Conference.
On other occasions observers from non-governmental organizations should
be permitted to speak at the discretion of the Chairman of the
particular meeting of the Conference. Written statements presented
/by non-governmental by nongovernmental organizations should be circulated to the Conference
at the discretion of the Director-General. The Director-General should
in addition circulate to the Conference a list and brief description of
all communications received from non-governmental organizations. Any
such communication should at the request of any member of the Conference
be circulated in full. As regards the First-Conference the Secretariat
will propose a list of non-governmental organizations, to which
invitations should be sent, when other arrangements for the First
Conference are under consideration.
All organs of the ITO as well as the Director-General should observe
the general policy laid down by the Conference to consult with non-
governmental organizations. The Director-General should in addition have
the right to appoint any Advisory Committee consisting of
representatives of non-governmental organizations that he may think
useful.
/ANNEX B Provisional List of Non-Governmental Organizations which might be Consulted in
Conection with Paragraph 2 (e) of the Resolution Establishing
an Intereim Comission*
Name of Organization Founded Membership General Purposes
Specific Interests
Activities
Relationship with
united Nations and
specilized agencies
.International 1919
Chamber of
Commerce
38 Boulevard.
Albert Ier,
Paris,
France
National
Comittees
in 29
countries
General Purposes To represent the economic
factors of international
business, including
finance industry and
transportation and
commerce; to ascertain
and to express the
considered judgment of
those interested in
international business,
to secure effective and
consistent action both
in improving the
conditions of business
between nations, and in
applying solutions for
international economic
problems.
Specific Interests "A better balance between
production and consumption,
to ensure that order and
stability without which no
material and technical
progress is possible;
economic disarmament and
economic peace, which can
alone make possible the
development of the well-
being of all nations
through an lensive
increase of exchange".
Activities Holds biennial
congresses. 27
working committees
devoting themselves
to major studies in
the field of
production and
distribution,
commerce and finance,
law and commercial
policy, transport
and communications.
It has been
represented at a
large number of
international
economic conferences
and has close
working
relationships with
many international
non-govermental
organizations and
inter-governmental
organizations.
Relationship with United and specialized agencies ECOSOC Conultative
status. (a)
FAO Conultative
status (I)
Represented at
ITCI Conferece
.
*. The list is mainly based on the working papers (E/C.2//W) of the Economic and. Social Council's NGO Committee.. The.
quotations are mostly from statements made by the NGO's in support of their -Applications to the Council for
Consultative Status. /International
Name of
Organization Founded Membership General Name of
Organization
Intemational
Co-opelative
Alliance
Orchard House,
14 Gt.Smith
St., London,
S.W.L
Inter-
American
Council of
Commrce
and
Production
Founded Membership
1895 8.5,00,000
faMilies
under
national
co-operative
organiza -
tions in
37
countries
1941 "will
consist of
the
associations
invested in
each
country
with the
pernanent
representa-
tion of the
Specific Interests
To represent the interests
of the organized consumers
of the world; to defend
the interests of the
co-operatively organized
producers of the world.
Its aims are "economic,
social and humanitarian
in the fullest sense, and
the whole of its activity
during the past 50 years
constitutes a campaign
for economic and
political peace". "It
is committed to economic
democracy and freedom of
all people, stands
opposed to monopolies,
combines and cartels
and all other barriers
to abundant production
and distribution.
To represent and develop
the economic interests of
all the American countries
and to insure better
guidance in meeting
present day problems in
dealing vith new trends
in the foreign trade of
the nations of the
Western Hemisphere in all
the fields that require
Activities
"The ICA for more than
50 years has been a
service arm for
co-operatives in
many countries,
engaged for the most
part in educational
and promotional
activities looking
forward to expansion
of the movement and
determining its
economic and social
policy."
The first and second
plenary meetings of
the Council adopted
resolutions concerning
almost all aspects of
trade and production,.
e.g. government
intervention.,
consumption and
under-consumption.,
industrialization,
Relationship with
United Nations and
specialized agenoies ECOSOC Consultative
status (a)
FAO Consultative
status (1)
ECOSOC Consultative
Status (b)
'. Name Of
organization Founded Membership
General Purposes
Specific Interests
Activities
Relationship with United Nation and
specialized agencies
Inter-
American
Counci1 of
Commerce
Production
(cont'd)
commerce and
production
and which
subscribes
or adhere to
the
convention".
Has members
in all of
the
American
Republics
and Canada.
co-ordinated and co-operative
Information or joint action
on the part of the private
economic bodies of the
countries of the Americas.
consolidation of
Inter-American trade
and co-ordination of
industres,
international
movement of capital,
production of, and
trade in key
products.
Commercial practices,
obstacles to
development of
trade, etc.
International 1921
Co-operative
Women's
Guild
1921 18,150,000 To unite-women attached to
(1946) the co-operative movement
in different countries
with a view to insuring
joint action in promoting
development of
cooperative principles
and practices; to raise
the status and extend
the influence of women,
particularly housewives,
to improve welfare
institutions and
protect the interests.
of mothers and
children; to raise the
standard of nutrition
and the general
condition of home life,
to further international
understanding and world
collaboration.
Held triennial
conferences.
ECOSOC Consultative
Status (b)
/International Name of
Organization Founded.
lnternational
0rganization
of Industrial
Employers,
33 rue Ducale,
Brussels,
Belgium
Membership
1919 Industrial
Employer' s
organizations
in 32
countries.
Other
applications
pending
Specific Interests
The study of social problems The economic aspect
affecting industry and of social questions.
labour.
Activities
Closely followed
the work of the
ILO. Has been
represented at
numerous
conferences and
sessions of its
governing body.
Has issued many
documentary
studies to its
members for use
in connection
with their
participation
in the governing
body.
Relationship with
United Nations and
specialized agencies
ECOSOC Consultative
status (a)
National
Association
Of
Manufacturors,
14 West 49th
Street, New
York, 20,
N.Y.
1895 15,000
manufacturers
To establish and maintain
a mutual and co-operative
organization of American
manufacturers in the
United States for the
fostering of their trade,
business and financial
interests, procure
uniformity and certainty
in customs and usages
pertaining to trade,
business and financial
interests of its members
to promote the industrial
interests of the United
States, to foster domestic
and foreign commerce in
the United states.
Foreign Investements,
inter-govenmental
commodity agreements
reciprocal trade
agreements,
international
double taxation,
colonies, export
controls, etc.
Intensive campaign
against price
controls, deficit
financing and
government
sell-out to
labour". Held
numerous meetings
and conferences.
ECOSOC Consultative
statUS (b)
It is also a member
of the United States
Associates of the
ICC and the Inter-
American Council of
Commerce and
Production, both of
which have been
granted consultative
status (a and b
respectively) by th-
ECOSOC .
Wlld Federation Name of
0rganization
Founded Membership
General purposes
Speific
Activities
Relationship with
United Nations and
specialized agencies
World
Federation
of Trade
Unions
1 rue Vernet
Paris 8 eme.
1945
67,326,000
To improve the living and
working conditions of the
people of all countries
and to unite them in the
pursuit of the objectives
desired by all freedom
loving people. "These
objectives cannot be more
fully attained than by
the creation of a world
order in which all the
wold' s resources will
be utilized for the
benefit of the whole
humanity, of which the
vast majority are manual
and intellectual workers,
whose protection and
progress depend on the
union of all their
strengths organized at
the national and
international level".
To organize and unify Created 15
the trade unions of international
the world, to assist trade
workers to organize "departments"
their unions holding
wherever necessary, international
in the socially or trade
industrially less conferences,
developed countries, etc.
to pursue the
struggle for the
extermination of
all fascist forms
of government, to
combat the war and
the cause of the
war and to work for
a stable and durable
peace, to represent
all the interests of
workers in all
international
institutions, to
organize the common
struggle of trade
unions of all countries
for various ends and
to prepare and
organize the educa -
tion of all trade
unionists in what
concerns the question
of international
unity of workers and
to awake in them the
ECOSOC Consultative
Status (a)
lLO appoved in
principle the
establishment of
consultatilve
relationships, with
the WFTU
FAO Consultative
Sattus( 1)
/conscientiousness Name of
Organization Founded Membership
General Pursposes
Specific Interests
Activities
United Nations and
speialized agencies
World
Federation
of Trade
Unions
(cont' d)
conscientiousness of
their individual
responsibility in
the realization of
the ends and
objectives of trade
unions.
American
Federation
of Labor
(Federation
Americaine
du
Travail)
Washington, D.C.
1881 7,004.,907
(1947)belonging
to various
affiliated
trade unions.
Some of these
have members
in Canada
and Mexico.
To promote the economic,
social and industrial
interest of the working
people and to adopt
such measures and disseminate
such principles among.
working people as will
permanectly unite them to
secure the recognition of
rights to which they are
Annual conventions. ECOSOC
Has been repre- Consultative Status
sented by two (a)
permanent
consultants to
ECOSOC and by
temporary
consultants for
particular
occasions. Usual
activities
pertaining to a
trade union and
in particular
endeavours to
influence
legislation
International 1920
Federation of
Christian
Trade Unions,
Ruis van den
Arboid,
Utrecht,
Netherlands
2,200,000 in
6 countries.
12 interna-
tional
secretariats
are associated
with it.
To perform general trade
union activities in
accordance with
Christian principles.
Economic and other
matters of interest
to trade unions.
Represented
Christian trade
unions in the ILO
and before the
Economic
Consultative
Committee of the
League of Nations ,
and the Permanent
Court of Inter-
national Justice.
ECOSOC Consultative
Status (a)
/International Transport
. Name of
Organization Founded
MeembershIp
Spcific Interests
Activities
Relationship with
United Nations and
specializes agencies
international 1896
Transport
Workers
Federation,
Maritime
House,
Old. Town,
Clapham
London S.w.4
2,000,000
through
effective
affiliation
in 33
countries,
1,000,000
through token
affiliation
in 33
countries,
780,000
through
nominal
affiliation
in 33
countries.
To promote the welfare of
the transport workers, to
Support national and
international action in
their interests, and to
work for a peaceful world
order based on the use of
world resources for the
common welfare.
To improve the
working condition
of the transport
workers and to work
for the
rehabilitation of
the transport
industry.
Working for the
adoption of ILO
conventions
dealing with
transport, and
helped to organize
seamen for the
United Nations
war effort.
ECOSOC Consultative
Status (b)
International 1946
Federation of
Agricultural
Producers,
45 Bedford
Square
London W.C.1
Affiliated
Organizations
in 13
countries,
applications
are being
received from
more
countries.
To promote co-operation
between organizations of
agricultural primary
producers in order to
meet food requirrments of
the people of the world
and to improve the
economic status of all
who live by and on the
land.
Holding
conferences.
ECOSOC Consultative
Status (a)
FAO Consultative
Status (1)
/International Union
General Purposes Name of
Organization
Founded Membership
General Purposes
specific Interests
Activites
Relationship With
United nations and
specialized agencies
international
Union of
Producers and
Distributors
of Electric
Power,
12 Place des
Etats-Unis,
Paris -xv1
1925
14 organiza-
tions in14
countries
(some
government
owned.).
The study of all questions
relating to the production
and distribution of
electric power.
Several Congresses
were held before
the war. Has
studied the
problem of
electric
production and
distribution
from scientific,
technical and
economic points
of view.
ECOSOC Consultative
Status (b)
World Power
Conference,
36 Kingsway,
London,
W.C. 2.
1924
National
committees
in 26
coutries and
other
membership in
5 additional
countries.
To consider how the
the sources of heat
and power may be
adjusted nationally
and internationally.
Heat and power
considered from
the economic
point of view.
Held World
Power Conferences
in 1924, 1930
and 1936. Next
to be held in
1950. To
appoint
Committee to
study the
utilization of
atomic energy
for industrial
and domestic
purposes.
ECOSOC Consultative
Status (b)
/International Statistical Name of
organization
Founded Membership
General Purposes
Specific Interests
Activities
Rlelationship with
United Nations and
Specialized agencies
International
Statistical
Institute,
Lange
Houtstraat 26,
The Hague,
Netherlands.
1885
170 persons
in 34
countries
"To stirmilate the development
of administrative and
scientific statistics
by seeking and
recommending the best
methods of securing
Uniformity; in
the structure and
analysis of statistical
returns, in order to
render the results
obtained in the
different countries
comparable; by
issuing international
publications and
establishing
permanent relations
between statisticians
of all countries;
by assisting in the
propagation of
statistical principles
and interesting statesmen
and scientists in the
numerical study
of Bocial facts."
Has studied
a very large
number of
international
statistical
problems and
its work has
served as
a basis for
the research
of the
League of
Nations, etc.
ECOSOC Consultative
Status (b)
.
/Econometricc i Name of
Organization Founded
Econometric 1930
Society,
The
University of
Chicago,
Chicago 37,
illinois.
General Purposes
Membership
774 members,
including 52
fellows
representing
40 countries.
Specific Interests
The advancement of economic
theory in its relation to
statistics and
mathematics.
Relationship with
United Nations and
specialized agencies
Ordinarily annual ECOSOC Consultative
meetings in Status (b)
Europe and in
America;
publishes
quarterly Journal
International 1930
Institute of
Administrative
Science, 47
rue Juliette
Wytsman,
Brussels,
Belgium
10 countries To examine administrative
"adhere to the experience in the different
Institute countries, to work out
(officially international administrative
represented), methods, and to promote
national studies and agreements
member sections for improving administrative
in 7 countries, law and practice.
and 3 national
institutes as
" collective
members".
Administrative
aspects of all
economic and social
matters as they are
regulated by the
State.
Took part in
Conferences,
called various
conferences in
co-operation with
other
organizations.
ECOSOC Consultative
Status (b)
World Feder-
ation of
United
Nations
Associations
47 Belgrave
Square,
London S.W.1
1946
22 national
United Nations
Associations
of which 16
have signed
the Constitu--
tion.
To support the United
Nations, to co-ordinate
the activities of the
United Nations
Associations, and to
contribute to the
solution of world
problems.
Divers.
Established a ECOSOC Consultative
permanent Economic Status (a)
and Social
Commission.
Plenary Assembly
meets annually.
Held a wide
campaign in
support of the
United Nations
Charter.
/International Association Name of
Organization Founded
Membership
General Purposes
Specific Interests
Activities
Relations with
United Nations and
speciaIized agencies
International 1897
Association
for the
Protection of
Industrial
(Association
Internationale
pour la
Protection de
la Propriete
industrielle)
Zurich,
Babuhofstrasse
31,
Switzerland.
International 1914
Parliamentary
Conference of
Commerce
(Conference
Parliamentaire
Internationale
du Commerce),
126 rue du
Prevot,
Bruxelles,
Belgique.
About 1200
under national
sections of
16 countries.
Delegates from
the Parlia-
mentary Trade
Committee of
46 countries.
37 parliaments
are officially
represented.
To propagate the idea of
the necessity of
international protection
for industrial property
(patents, inventions,
trade marks, industrial
designs and models,
etc.); to study and
compare existing
legislation in
preparation for their
improvement and
standardization; to
endeavour to widen the
scope of the
international
conventions
(20 March 1883. etc.).
To co-ordinate the activities
of all committees of
commerce or commercial
legislation which
attempt to secure the
unification of laws,
regulations and customs
regarding trade where
such questions are
suitable for
international treatment.
Congresses;
discussions and
proposals
concerning the
provisions of the
Paris Convention
of 1883, the
Madrid Agreement
of 1891 (concerning
the suppression of
False Indication
of Origin), the
Madrid Agreement
of 1925
(concerning the
International
Deposit of
Industrial
Designs and
Models), etc.
Publications: 20
conferences held
between 1914-1937.
Created
International
Institute of
Commerce.
/International Committee Name of
Organization Founded
Membership
General Purposes
Apecific Interests
Activities
Relations with
United Nations and
specialized agencies
International 1933
Committee for
Exchanges
(Comite
International
des
Exchanges)
Chambre Suisss
de l"horlogerie
de Chaux-de-
Fonds,
Suisse.
Institute of
European
Economies
(Institut
d' economie
Europeene)
71, rue de la
Victoire,
Bruxelles,
Belgique.
1932
National
sections and
individual
members.
Belgian and
foreign
economists,
teachers,
industrialists,
financiers
and diplomats.
To promote the idea of the
need for the normal
development of international
trade and to facilitate
its achievement; to bring
about the general
stabilization of
currencies, preceded by a
settlement of international
debts, to bring about the
simplification of customs
measures, etc.
To organize by economic
committees the study of
European judicial, economic
and intellectual problems.
Participated in the
Conferences of the
World Trade
Organizations of
the ICC. Interna-
tional Congress in
October 1948.
Publications.
Working for the
organization of
Europe on a
federal basis.
European
Centre of
Documentation
and Compensa-
tion. (Centre
European de
Documentation et
de Compensation)
45 Boulevard
Gouvion-Saint-
Cyr, Paris, 12e
To engage in co-operation
with other important
economic organizations,
in establishing a series
of "comparative
European statistics"; to
interest the public at
large in this part of the
economic science.
Continuous propaganda
for the adoption by
all European and world
organizations of'
documentation and
statistics of a
uniform method of
work. Publica-
tions, various.
/Inter-American Name of
0rganization Founded Membership
General Purposes
Specific lnterests
Activities
Relations with
United Nations and
specialized agencies
Inter-
American
Arbitration
Commission,
(Commission,
Inter-
Americaine
d' Arbitrage
Commercial),
9 Rockefeller
Plaza, New
York City,
N.Y.
1934
international 1925
Fairs Union
(Union des
Fairs
Internationales)
Piazza Dnomo, 17
Milan, Italy
To establish an Inter-
American system of
arbitration for the
settlement of commercial
disputes.
3C internation- To promote closer relations
al fairs. between international
fairs; to co-ordinate a
calendar of fairs; to
obtain the greatest
assistance from
governments and public
authorities.
Publications
(The Arbitratation
Journal)
InternationaI
congresses and
publications. ICITO/EC .2/11
Page 20
ANNEX B
LETTER FROM THE PRESIDENT OF THE INTERNATIONAL CHAMBER OF COMMERCE
TO THE EXECUTIVE SECRETARY.
2 July 1948
Dear Mr. Wyndham White,
I am writing to express to you the great interest which the
International Chamber of Commerce takes in the important matter of its
cooperation with the eventual I.T.O.
The International Chamber feels the relationship with I .T.O. is a
question of great importance, not only because of our consultative status
with the United Nations, but more especially, as you will agree, because
of the identity of interests with which the I.T.O. deals in the
governmental sphere, and the International Chamber in the private and
commercial aspects of international trade.
For this reason, the form of cooperation between the two organizations
is of interest to us both and, after consulting with leading members
of the I.C.C. Executive Committee and Council, I would therefore like to
suggest the following general lines of cooperation, based on our past
experience as consultants to the League of Nations and other international
organizations, and also on the Document E/INF/23 of 30th April 1948-
"Guide for Consultants" - issued by the Economic and Social Council.
I. I. C.C. CONTRIBUTION
1) The I.C.C. will be very happy to give every possible assistance to the
I.T.O. and its work Because of our close connections with business
communities all over the world, we can:
- at the request of the I.T.O. carry out investigations among our
members and report on their point of view concerning any given
matters;
- keep the I.T.O. fully informed of all relevant I.C.C. activities
and communicate to the I.T.O. any of our documents which would
be helpful to its work;
distribute I.T.O. documents among our National Committees all
over the world and, where desirable, call upon them to take
specific action.
2) The help we may be able to give you should be made easier by the fact
that we already have Committees paralleling your work. I believe it is
unlikely in the initial stages, at least, that the creation of any new
Committees will be necessary since existing I.C.C. Committees cover
practically the whole field of the Havana Charter.
/Havana Charter- ICITO/EC.2/11
Page 21
Havana Charter-Chapter II - IC.C.Committees-Committee on Maximum Employment
-Chapter III- . Committee on Foreign Investments
-Chapter IV- -Commission on Commercial Policy
-Committee on Customs Technique
-Committee on Monetary Relations
-Chapter V - -Committee on International
Industrial Ententes
-Chapter VI - -Committee on Primary Products and
International Markets
Other items, with which the Havana Charter deals indirectly, are
covered by the I.C.C.Committee on Taxation, Foreign Establishments, Sea
Transport, Simplification of Formalities in International Transport, etc.
3) As a matter of course I.T.O. will benefit from full reciprocity as
regards attendance at I.C.C. meetings. Specifically the I.T.O. will receive
invitations to all relevant meetings of the I.C.C. and the I.T.O. Secretariat
will receive, on a confidential basis, all the preparatory documents of
such meetings. The I.T.O. representatives may of course participate freely
in the discussions and submit suggestions, orally or otherwise. You will,
of course, let us know of any other way in which our organization might
assist I.T.O. in its work.
II. ATTENDANCE AT I.T.O. MEETINGS
The suggestions below as to procedures relating to participation in
I.T.O. meetings are based on those accorded to Category A. consultants by
the Economic and Social Council.
1) The I.C.C. would be invited to all meetings, whether of the full
Conference or of the Commissions and Sub-Committees, except in the case of
the Executive Board or of secret or confidential meetings between
governmental delegates only.
2) The I.C.C. could, as was the case with the Economic and Social Council,
propose questions for inclusion in the provisional agenda of any meeting.
All provisional agenda and all convening notice would be sent to the I.C.C.
delegation at the same time as it is forwarded to the members of the
meeting in question.
The I.C.C. would be entitled to present its views through a
representative at any meeting of the Agenda Committee at which the
inclusion of the item is discussed. When items originally proposed by
the I.C.C. are presented for discussion by the Conference or the Commissions,
the I.C.C. would be entitled to make an introductory statement of an
expository nature.
/3) Without ICITO/EC.2/11
Page 22
3) Without prejudice to 2) above, the I.C.C. representative may request
the opportunity to present orally the views of his organization. With
the consent of the Committee in question, these views may then be called
for. In specific cases (as is provided for by ECOSOC E/INF/23 of
30/4/48 page 89) it may also be recommended by a designated officer or
committee of the I.T.O. that the Executive Board receive the I.C.C.
representative for an expression of the I.C.C. point of view.
4) The I.C.C. representatives would receive all documents issued during
the meetings, whether restricted or not, as is the case with both the
Economic and Social Council and the Economic Commission for Europe. It
is understood that restricted documents will be treated as strictly
confidential.
5) The I.C.C. Delegation may submit written statements or reports
expressing its views on trade matters. These documents would be reproduced
in full and distributed as official documents by the I.T.O. to all members,
specialised agencies and all other non-governmental organizations forming
part of their usual mailing list.
6) The I.C.C. would be invited to all ad hoc Conferences arranged by the
I.T.O., on the consultative basis outlined above.
III. I . T.O. DOCUMENTS
On the basis of our past experience, we feel that if the collaboration
between the two Organizations is to be systematic and effective, it is
most important that essential I.T.O. documents should reach the I.C.C.
both in ample time for consultation and in a sufficient number for
distribution. It is suggested that the following procedures might be
adopted with that end in view:
From our point of view, I.T.O. documents would probably fall into
three categories:
A-DOCUMENTS: Unrestricted documents, issued for information only. The
I.C.C. would receive 4 copies in English and 4 in French.
B-DOCUMENTS: Documents whether restricted or unrestricted on which the
I.C.C. is asked to express an opinion or take action through its
National Committees.
1) The I.C.C. would receive 3 copies for each National Committee
and 20 copies for the working committees of International Headquarters,
so as to enable it to carry out the necessary consultations among
National Committees and Committee Members.
2) To enable serious work, these documents should be received at
least three months before the I.T.O. meeting convened to discuss them.
/C-DOCUMENTS: ICITO/EC .2/11
Page 23
C-DOCUMENTS: Restricted documents issued for confidential information
only. The I.C.C. would receive one copy in each language for the
confidential information of Headquarters or of I.C.C. representatives at
the relevant I.T.O. meetings. (Four copies would be preferable if it would
be possible to give us that many; we quite understand that for special
reasons it might be necessary to withhold certain documents altogether).
In making these recommendations which we hope you will find helpful
we have no other purpose than to give you the full benefit of the
international machinery of consultation and representation existing within
the Chamber and to make a really effective contribution to the cause to
which both the I.T.O. and the I.C.C. are committed: the expansion of
world trade and the raising of standards of living in all countries.
Yours sincerely,
(signed) Arthur Guinness
ARTHUR GUINESS
President |
GATT Library | kg544dy4532 | Remarks of Ambassador Dana Wilgress, Chairman of the ICITO Executive Committee, at the Opening Session, August 25th, Geneva | United Nations Office at Geneva Information Centre Geneva, August 25, 1948 | Interim Commission: International Trade Organization, Executive Committee, and United Nations Office at Geneva Information Centre Geneva | 25/08/1948 | press releases | Press Release No.519 and PRESS RELEASE NO.420-628 | https://exhibits.stanford.edu/gatt/catalog/kg544dy4532 | kg544dy4532_90260248.xml | GATT_146 | 835 | 5,345 | UNITED NATIONS OFFICE AT GENEVA Press Release No. 519
Information Centre 25th August 1948.
Geneva.
INTERIM COMMISSION: INTERNATIONAL TRADE ORGANIZATION
EXECUTIVE COMMITTEE
Remarks of Ambassador Dana Wilgress, Chairman of the ICITO
Executive Committee, at the Opening Session, August 25th,
t_~~~~~en.~i__ 3
The following are extracts fromi the remarks of Amabassador
Wilgre s
mrc meting togtethc to pass another Milestone on the
long road towards the ostablis'.1nt of an International Trade
Organization. We have climbed up successfully the steepest and
most arduous part of that road. Now, with a Charter for the future
organization marking the summit of the pass, we have to plod along,
tho more levee path on the plateau leading; to tho holding of the
first annual Conference of the Organization. Our task is to do
everything possible to prepare for the holding of that Conference
se thpt the Ommanieation when it is sot ue can corlencc to function
smoothly and efficiently.
"Teat our task is less arduous than thc tasks which confronted
the Preparatory Committee and the United Nations Conference on Trade
and I1ploynent at Havana is evidenced by the fact that the Interim
Commission, comhosed of morc than fifty countries, 'as delegated
all of its functions to en Exocutivo Composed of only eightecn
countries. That fact, however, also makes clear the responsibility
that devolves upon us. We musenjustify the confidence that has beom
placed in us by ovor fifty nations. We must do our job well.
"Our task has been facilitated greatly by the excellent
preparationdefor this session that have been maci by the Executive
Secretary. Mr. Wyndham Whitc was faced with a most difficult problems.
He had to wind up the Havana Conference, move fromi Havana to Lake
Success, Zathur together the usmontial nucleus of a. staff, get ther
to workc on preparing; comp ehensive papers on each of the item.is of
the agenda, arranZe for their translation and distribution, and
finally to transfer himself and all his staff from Lake Success to
Geneva.
"Our a.cnda may be divided roughly into two parts. The first
comprises those iteis which arise out of the resolution adopted at
the Havana Conference formthe constitution of the Interim Comrission
and arc designed to prepere the ground for the holding of thu first
annual Conference of the international Trade Organization. The
second part includes those itens which arise out of resolutions
adoptee orcecaion teken at the Havana Confkrenca cnd arc referred to
in paragraph 2 (r) of the resolution constituting the interim
Commission. Those are: e1) the establishment of authentic tcxts
of the Havana Charter in guages;nese, Russian and Spanish lan ge>i-;-
(2) the Relation of the ITO with the International Court of Justice;
(3) Economic D4volopnment and R1construction; and (+) Consultation
witd tge Govermient of Switzerland regar6inp the Report of Sub-
Committee G of the Third Committee of the Havana Confercnce. Special
attention will havc to be givcn to these problems at this session
of the Executive Coimiittee. Press Release No. 519
Page 2.
"The Executive Sucretary has proposed that, after discussion
in full meeting of the Executive Committee, the various questions
on our agenda which cannot be disposed of in full meeting should
be referred to sub-committees. He has proposed the setting up of
four such sub-committees - one on Administrative Questions; one
on the International Court of Justice; one on Economic Development
and Reconstruction, and one on Technmical Questions. Besides, it
would appear to me to be necessary for us to constitute a committee
on crodentials and also a panel of experts who would go over the
authentic text of the Charter in the Spanish language.
"I believe that all the questions on our agenda can be
referred, when such a course is necessary, to one or other of these
subsidiary bodies. The Swiss problems, for instance, could be
referred to the Sub-Committee on Technical Questions, and the first
task of that sub-committee would be to determine the procedure for
consultation with the Swiss Government in the light of the discus-
sions which will take place on this question of procedure in the
Lull meetings of the Executive Commiittee. The questions that relate
to preparations for the holding of the first annual Conference of
the I.T.O. could be referred to the Sub-Committee on Administrative
Questions, except that the question of the relation of the I.T.O.
with the International Monotary Fund could perhaps more appropria-
tely be dealt with by the Sub-Committee on Technical Questions.
"Finally, Gentlemen, I wish to express my pleasure at once
again having the privilege of presiding ever meetings of the
Executive Committee and enjoying the benefit of your co-operation
in furthering the cause we all have at heart. The seed represen-
ted by the original proposals for an International Trade
Organization has shown great vitality and has germinated a tender
sprout. That tender sprout has been entrusted to your care and I
am sure you will all do your best to see that it grows to maturity-
and eventually blossoms forth as a fully-established International
Trade Organization. 11 |
GATT Library | yc244hs4848 | Report by the AD HOC committee on Article 69 (c) (i) | United Nations Conference on Trade and Employment, February 16, 1948 | Sixth Committee: Organization | 16/02/1948 | official documents | E/CONF.2/C.6/75 and E/CONF.2/C.6/44-75 | https://exhibits.stanford.edu/gatt/catalog/yc244hs4848 | yc244hs4848_90170139.xml | GATT_146 | 131 | 1,051 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/75
ON DU 16 February 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
REPORT BY THE AD HOC COMMITTEE ON ARTICLE 69 (c) (i)
The following change has been agreed by the Ad Hoc Committee composed.
of the representatives of the Belgian, Indian, Mexican, United Kingdom and
United States delegations:
Article 69
Functions
The Organization shall perform the functions provided for elsewhere
in this Charter. In addition, the Organization shall have the following
functions:
(a) ....
(b) ....
(c) to undertake studies on, and, having due regard to the
objectives of the Charter and the constitutional and legal systems
of Members, make recommendations for, and promote international
bilateral or multilateral agreements on, measures designed
(i) .....
(ii) ....
etc. |
GATT Library | cn245zh3155 | Report by the Executive Secretary of the ICITO on the work of the Secretariat | Interim Commission for the International Trade Organization, July 13, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 13/07/1948 | official documents | ICITO/EC.2/5 and ICITO/EC.2/2/ADD.5 ICITO/EC.2/6/REV.1 | https://exhibits.stanford.edu/gatt/catalog/cn245zh3155 | cn245zh3155_90060187.xml | GATT_146 | 4,472 | 29,670 | UNRESTRICTED
INTERIM COMMISSION COMMISSION INTERIMAIRE DE ICITO/EC.2/5
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE 13 July 1948
ORIGINAL: ENGLISH
TRADE ORGANIZATION DU COMMERCE
Second session
Item 3 of the revised Provisional Agenda
REPORT BY THE EXECUTIVE SECRETARY OF THE IICTO ON
THE WORK OF THE SECRETARIAT
I. ADMINISTRATION AND FINANCE
The first task confronting the Exeutive secretary in undertaking his
responsibilities was the recruitment of staff. The Executive Secretary
was guided by the proposal contained in ICITO/EC.1/5, due regard being
given to the need for economy and ( within the limits and possibilities
of a small staff) to the principles of Article: 84, paragraph 2, of the
Havana Charter. The following appointments have been made:
Deputy Executive Secretary - Mr. J. A. Lacarte.(Uruguay), appointmet
effective 30 July.
Special Assistant - M. Jean Royer (France), appointment
effective 19 July.
Commercial Policy Advisor - Mr. F. A.Haight (South Africa).
Research Assistat -Mr. Constant Shih (China).
Research Assistant - Mr. G. Maggio (Italy), appointment
effective 9 August.
Administrative Assistant - Miss D. W. Peaslee (United States).
Information Officer - Mr. Richard Ford (United Kingdom).
As regards the other principal posts, the Executive Secretary has,
for all except one, been able to arrange with the United Nations for the
loan of personnel on a reimbureable basis. The United Nations has agreed
to make available to the Interim Ccmmission as Legal Advisor,
Mr. Alan Renouf (Australia), who acted in a similar capacity for the
Preparatory Committee and the Conference at Havana. As regards the
Commodity Advisor, the Executive Secretary has made an arrangement
with the Secretary-General of the United Nations which, while relieving
the Interim Commission of the expense of maintaining a full-time
commodity advisor, enables the Commission to remain in close touch with
commodity questions. This arrangement also fulfills the responsibilities
/of the ICITO/EC.2/5
Page 2
of the Interim Commission under paragraph 5 of its terms of reference.
An exchange of letters between the Executive Secretary and the Secretary-
General on this matter is attached as Annex A.
The Secretary-General also assisted the Interim Commission by the
temporary loan of an official of the Department of Budget and Administration
who undertook to prepare the draft financial and staff regulations. These
regulations are submitted to the Executive Committee under Item 12 of
the provisional agenda.
No appointment has yet been made to the position of Economic
Development Advisor. Of the various candidates proposed to the Executive
Secretary, none appeared to have all the necessary qualifications for
this position. The Executive Secretary, therefore, arranged with the
United Nations for the loan of the services of Mr. Gosschalk. In
addition to acting as secretary of Committee II at Havana, Mr. Gosschalk
has also worked for some time in the Economic Development Section of the
United Nations Department of Economic Affairs. By this arrangement, it
has been possible to prepare an interim report on the economic development
Resolution for consideration by the Executive Committee at its Second
Session. The appointment of an Economic Development Advisor will be
reconsidered after the Executive Committee has discussed and commented
upon the Interim Report.
The other immediate task was to provide for financing the Interim
Commission.. The Executive Secretary applied to the Secretary-General of
the United Nations for an initial advance of $86,490 for the Second
Quarter of 1948. The Secretary-General agreed to this advance subject
to an undertaking for the reimbursement of this and all subsequent
advances, by the ITO when established. The Executive Secretary in reply
referred to paragraph 4 of the Commission's terms of reference and
expressed confidence that the Commission would accept the position
that any advances to the Commission should be reimbursable to the United
Nations by the ITO. It is suggested that the Executive Committee
authorize the Executive Secretary to confirm this commitment formally
to the Secretary-General. Negotiations are at present proceeding for
a further advance for the third quarter.
In addition to the matters referred to above, the Secretary-General
of the United Nations has agreed for a number of administrative services
to be undertaken, subject to reimbursement, by the Secretariat of the
United Nations on behalf of the Interim Commission. These services
include translation, reproduction and distribution of documents,
interpretation, conference services, budget control, and general
/administrative ICITO/EC.2/5
Page 3
administrative services such as are connected with personnel, travel,
etc. As part of these arrangements, the Executive Secretary has agreed that
the administration, financial and personal regulations of the United Nations
shall, where appropriate, apply to the Secretariat of the Interim
Commission.
The Executive Secretary wishes to place on record his appreciation
of the co-opretion which the Secretary of the United Nations has accorded
to the the Interim Commission and recommends that he be authorized to send to
the Secretary- General a formal expression of appreciation on behalf of the
Interim Commission.
One final matter of organization may usefully be referred to in this
Report. The Executive Secretary has been anxious to ensure that the
removal of the Secretariat from Lake Success to Geneva should not
interfere witth the maintenance of close personal contacts with the
Secretariat of the United Nations and with FAO, the Bank and the Fund.
He has, therefore, decided that a representative of the Interim Commission
should remain at the headquarters of the United Nations. For the time
being this representative will be the Deputy Executive Secretary.
II. WORK OF THE SECRETARIAT*
(a) Preparation of authentic texts of the Havana Charter in the
Chinese, Spanish and Russian languages
The Russian and Chinese translations of the Final Act and the Eavana
Charter, prepared by the translating services of the United Nations,
were disributed, in accordance with the procedure agreed at Havana,
to all signatories of the Final Act and member of the Interim Commission
on 28 May and 12 June respectively. Governments were advised that the
Executive Secretary would take note of comments on the Russian text
received by 10 September 1948 and the Chinese text by 25 September 1948.
The Spanish text, prepared by the Cuban Government and received by the
Secretariat in a complete form by Monday 21 June, was distributed on
25 June, comments being required by 10 October 1948. As soon as possible
after receiving these comments the Executive Secretary will circulate
revised texts. Two months from the date of circulation, if no
objections have been received within that period, the texts will be
deposited as authentic with the Secretary-General of the United Nations.
The earliest dates, therefore, at which the authentic texts could be
* See also Annex B or in information activities. /available ICITO/EC.2/5
Page 4
available if this procedure were strictly followed are: Spanish,
24 December 1948; Russian, 24 November 1948; Chinese, 9 December 1948.
In the circumstances the Executive Committee may wish to consider
whether the procedure can not be expedited.
(b) Publication of Reports of the Havana Conference
The First Session of the Executive Committee directed the Executive
Secretary to publish the Reports of Committees supplemented by such
Sub-Committee Reports and other documents or extracts therefrom as might
be necessary for a full understanding of them. In accordance with this
instruction, the Secretariat prepared a compilation of the reports which
was circulated on 6 May, for information, to all members of the Interim
Commission as document ICITO/W.1. At the same time, this compilation
was sent to the consultative panel appointed by the Executive Committee
at its First Session. The Secretariat will revise the Reports in the
light of the suggestions of the consultative panel and will thereafter
make arrangements for printing and publication.
(c) Relation with United Nations and other Specialized Agencies
The Secretariat initiated discussions with the Secretariat of the
United Nations and with the secretariats of other inter-governmental
organizations in order to present to the Executive Committee preliminary
drafts of agreement or working arrangements with the agencies with
whom the ITO will be most closely concerned. It should be made clear,
however, that the drafts submitted do not in any way represent the
official views of any other organization. These drafts have been
prepared by the Secretariat, and consultations have been held solely
for the purpose of obtaining information and advice.
Action taken by the Secretariat on other items on the agenda for the
Second Session is indicated in the various papers circulated separately.
(d) Large Format Text of the Havana Charter
To facilitate the work of the Commission and, ultimately of the Conference
of the ITO, the Secretariat arranged to publish a large format edition of
the Final Act and Related Documents of the Havana Charter, the smail type
edition published by the United Nations being unsuitable for use as a
workinng document. Although this involved some additional expenditure,
the outlay should prove fully Justified.
III. THE CONTRACTING PARTIES TO GENERAL AGREEMENT ON TARIFFS AND TRADE
At the First Session of the Contracting Parties, in Havana, it was
agreed, as a provisional arrangement, to request the Executive Secretary
to provide secretariat services to the Contracting Parties to the General
/Agreement lCITO/EC.2/5
Page 5
Agreement on Tariffs and Trade. In consequence the Secretariat has been
handling the day to day administrative work arising out of the General
Agreement on Tariffs and Trade as well as preparing for the Second Session
of the Contracting Parties. The Executive Secretary did not, at the
time he accepted the request of the Contracting Parties, make any
suggestion as to the terms on which these services would be rendered
as he wished to take this matter under consideration.
In the view of the Executive Secretary any work done by the
Secretariat in relation to the GATT may properly be regarded as falling
within the general authority contained in paragraph 2(i) of the terms
of reference of the Commission. Accordingly, no claim should be made
on the Contracting Parties for payment for services rendered by the
Secretariat of the Commission.
IV. PREPARATION FOR THE SECOND SESSION OF THE EXECUTIVE COMMITTEE AND
FOR FUTURE WORK OF THE ITNERIM COMMISSION
The Secretariat has concentrated its efforts towards bringing before
the Executive Committee at its Second Session as many as possible of
the specific matters contained in the Commission's terms of reference.
In so doing, the Secretariat was guided by the considreation that the
major task of the Commission is to prepare for the first regular session
of the oCnference of ITO. In order, therefore, to give the Commission
more freedom at a later date to concentrate on this work, it seemed
desirable to proceed as quickly as possible to examine the other tasks
of the Commission. It Is for this reason that certain matters, a,s for
example, the draft financial and staff regulations, have been brought
up for consideration at this early dat.e The Executive Secretary
considers it desirable to make as much progress as possible on these
tems, the Commission, of course, being free to revert to them later
for such revisions as may be required in the light of changing
circumstances.
Although concerning itself mainly with the immediate task of
preparing for the Second Session of the Executive Committee, the
Secretariat has given some attention to its future programme of wor .
As a basis for this, there has been prepared an analysis of the Charter
in terms of the functions and responsibilities of the Organization. In
ts present form, the analysis is concerned largely with responsibilities
of the Conference, the Executive Board and the Commissions, as distinct
from the duties of the Secretariat. It is proposed at an early date to
expand this analysis and to add material relating to functions of the
Secretariat of the Organization. The preliminary analysis referred to
/above ICITO/EC.2/5
Page 6
above has closed the following as matters to which the Interim Commission
and the Executive Committee might wish to direct its attention:
(a) Recommendations to the Conference as to the powers and duties
which should be assigned to the Executive Board in accordance with
Article 77 (ii), including recommended rules as to appeals from
Executive Board decisions under Article 13 (9) (see document
ICITO/W.1, Report of Committee II on page 29, paragraph 10).
(b) Recommendations regarding procedural arrangements for
negotiations between members for reduction of tariffs and elimination
of preferences, Article 17 (i). If the Committee decides to prepare
such recommendations, it might wish to consider requesting the advice
of the Contracting Parties of the General Agreement on Tariffs and
Trade.
(c) Initiation, in collaboration with the Fund, of arrangements for
the preparation of the Report referred to in Article 23, paragraph 1 (g)
which the Organizatidn is required to make not later than 1 March 1950.
(d) Recommendations regardnig the nature of the statistical work to
be undertaken under Article 39.
(e) Recommendations on Rules of Procedure for the Conference
(Article 76, paragraph 2).
(f) Recommendations on Rules of Procedure for the Executive Board
(Article 80, paragraph 1).
(g) Recommendations regarding site and branch offices.
(h) Preparation of draft regulations regarding the position of the
Director-General (Article 84, paragraph 1).
(i) Recommendations as to what, if any, commissions should be
established by the First conference.
(j) Recommendations on conditions of service for members of
commissions (Article 83, paragraph 2).
(k) Recommendations so to the functions of such commissions
(Article 82).
The items listed above are set out by way of example and the list
does not purport to be exhaustive. The speed with which the Organization,
when established, can begin to operate effectively may well depend upon
the amount of preparatory work which the Interim Commission decides to
undertake. The Secretariat is proceeding on the assumption that, owing
to the comparative lateness of the appearance of the ITO in the
International field, it is desirable, that the Organization should be
enabled to undertake effective operations as soon as possible after it
is established. The Executive Secretary has felt therefore that the
/Interim Commission ICITO/EC.2/5
Page 7
Interim Commission would wish, so far an possible, to consider in advance
a number of problem and arrangements which in the case of other
specialized agencies, were left to be determined somewhat later. ICITO/EC.2/5
Page 8
ANNEX A
CORRESPONDENCE BETWEEN THE EXECUTIVE SECRETARY OF THE ICITO
AND THE SECRETARY-GENER AL OF THE UNITED NATIONS
Sir,
I have the honour to refer to the Resolution of the United Nations
Conference on Trade and Employment establishiig an Interim Commssion
for the International Trade Organization containing the following
paragraph:
"5. Arrangements may be made with the Secretary-General
of the United Nations regarding the provision of such
personnel as may be required to carry on the work of the
Interim Co-ordinating Committee for International Commodity
Arrangemnts."
This provision was the subject of discuss at the first session of the
Executive Committee of the Interim Commission. The Executive Committee
felt that, as the ICCICA is an organ of the United Nations established
by Resolution of the Economic and Social Council, it was appropriate that
the Secretariat be provided and financed by the Secretary-General of the
United Nations. Nevertheless, the Interim Commission for the ITO has a
special interest in Commodity matters and in particular in the work of
the ICCICA in view of the provisions of the Havana Charter prescribing
important functions for the eventual ITO in the commodity field. In
these circumstances ,the Executive Committee instructed me to enter into
discussions with the Secretary-General to ascertain whether arrangements
could be made whereby the Secretariat of ICCICA, whilst continuing to be
provided by the United Nations, might nevertheless render certain services
to the Interim Commission on mutually acceptable reimbursement conditions.
I have had certain conversations with members of your staff on the
basis of which I should like to put forward for your consideration the
following arrangements:
(a) The Secretariat of the ICCICA will be provided by the
Commodity Section of the Department of Economic Affairs.
(b) The files and records collected and maintained by the
Commodity offers of the Secretariat of the United Nations
Conference on Trade and Employment shall therefore for the time
being be retained by the Economic Affairs Department of the United
Nations, the question of the ultimate disposition of these records
/being ICITO/EC.2/5
Page 9
being left open for further discussion between the United Nations and
the Interim Commission when the establishment of the International
Trade organization is more imminent.
(c) The Commodity officers of the Department of Economic Affairs
shall keep the Secretariat of the Interim Commission fully informed
on all international commodity questions, including the supplying
to the Interim Commission of all reports or studies undertaken by
them in this field.
(d) The Commodity officers of the Department of Economic Affairs
will, at the request of the Interim Commission, undertake reports
and studies on commodity questions of special importance to the
Interim Commission subject to reimbursement to the United Nations
for the time spent on the compilation of such reports or studies.
(e) The Commodity officers of the Department of Economic Affairs
shall be authorized at the request of the Executive Secretary of
the Interim Commission, to represent the interests of the Interim
Commission at international meetings on commodity questions. If
such officers attend these meetings exclusively for the purpose
of representing the Interim Commission, the whole of their salary,
per diem and travel costs shall be reimbursed to the United Nations
by the Interim Commission. If the Commodity officers attend these
meetings to represent the United Nations as well as to represent the
interests of the Interim Commission, the expenses shall be shared
between the United Nations and the Interim Commission on a mutually
satisfactory basis to be determined in each particular instance.
(f) The Secretary-General, upon the request of the Executive
Secretary of the Interim Commission, and subject to availability will
second one or more of the Commodity officers for temporary assignment
to the Interim Commission on the usual terms governing the secondment
of United Nations personnel to specialized agencies.
I should be grateful to have your views on these proposed arrangements
at your early convenience.
I have the honour to be,
Sir,
Your obedient Sarvant,
(Signed) E. Wyndham White
Executive Secretary
W. Trygve Lie,
Secretary-General,
United Nations,
Lake Success, N. Y.
/25 May 1948 ICITO/EC.2/5
Page 10
25 May 1948
Sir,
I have the honour to acknowledge the receipt of your letter of
11 May 1948 referring to the resolution of the United Nations Conference
on Trade and Employment concerning arrangements between the Interim
Commission for the International Trade Organization and the United Nations
regarding the work of the Interim Co-ordinatlng Committee for International
Arrangements.
I am happy to agree that the Commodity Section of the Department of
Economic Affairs, which provides the Secretariat of the Interim
Co-ordinating Committee for International Commodity Arrangements, should
also render certain services to the Interim Commission on mutually
acceptable conditions of reimbursement.
The general arrangements set out in your letter are acceptable, it
being understood that the details will be discussed at the appropriate
stage with representatives of the Assistant Secretary-General in charge
of Economic Affairs.
I have the honour to be,
Sir,
Your. obedient Servant,
(signed) Trygve Lie
Secretary-General
Mr. E. Wyndham White
Executive Secretary
Interim Commission for the
International Trade Organization.
/ANNEX B Page 11
ANNEX B
REPORT ON THE INFORMATON ACTIVITIES OF THE SECRETARIAT
1. Members of the Executive Committee will recollect that the question
of information services was left to the discretion of the Executive
Secretary.
It may, therefore, be appropriate to set down the principles which
have guided the Executive Secretary in promoting a limited programme of
public information during the few months which have elapsed since the
Commission came into existence.
2. The initial question was whether the Commission should sponser
any information for the general public about the Havana Charter and the
work of the Commission, or whether that should be left entirely to
governments.
Two factors, in particular influenced the decision in favour of
a limited programme of information. The first was the conviction that
the Havana Charter is probably the most important and most remarkable
document of its kind to be completed in our times. It is a major part
of post-war economic planning, closely linked and integrated wlth the
whole economic programs of the United Nations and its Regionl
Commissions, as well as with the Specialized Agencies such as the Food
and Agriculture Organization, the Information Monetary Fund and the
International Bank for Reconstruction and Development. As such it will
be the subject of wide public discussion and will give rise to a demand
for background information material from many quarters. The Interim
Commission will be the natural source to turn to for this material.
For the Commission to fail to make provision to meet this demand would
be to fall short of its responsibilities.
Secondly, the Executive Secretary considered that an information
programme adhering strictly to impartiality, could be of some assistance
to many if not to all member governments in the presentation of the
Charter to public opinion in their countries.
3. The main principle followed has been that information sponsored
by the Commission should be confined to simple, factual straightforward
exposition of the Charter and of the tasks of the Interim Commission.
It is no part of the function of the Interim Commission to undertake
a "selling campaign" or to enter into any detailed interpretation of
the Charter.
The over-riding consideration has been that whatever information
material was sponsored by the Commission should be helpful to member
/governments ICITO/EC.2/5
Page 12
governments. Great care has been taken with the texts of all public
infomation material, and the task of compiling them has been the entire
responsibility of the Secretariat.
4. The first action taken was, therefore, to send a Note from the
Executitve Secretary regarding Public information (ICITO/INF/2) to all
governments members of the Commission giving an outline of the proposed
information policy. The second consideration was to set a target for
information activities within the limitatons of staff.
5. Working relations with the various sections of the Department of
Public Information of the United Nations have been established. This
has enabled good use to be made of available facilities, before the
Secretariat left United Nations Headquarters for Geneva. The main
results of this liaison are to be seen in
(a) a leaflet giving the basic facts about the Charter, the events
leading up to the Havana Conference, the functions of the Interim
Commission, and so forth. This leaflet was published in English
in July 1948. French and Spanish language editions will, it is
hoped, be available in time for the Meeting of the Executive Committee,
(b) a pamphlet, written in popular style, explaining the reason for
bringing ITO into being and giving a general picture of world trade.
This also is being printed in English, French and Spanish.
The cost of both the above publications, it may be added, is borne
almost wholly by United Nations, the Commission paying only for such
copies as it may require.
The distribution of the above two publications through United Nations
channels is substantial. It covers the twelve United Nations regional
information centres, each with their own local mailing lists. It also
covers, for example, 800 newspaper and radio correspondents, as well as
speakers aid organizations of all kinds in many parts of the world.
6. In addition to the two publications of a popular type, described
above, the two Information papers have been prepared and issued in
mimeographed form in English, French and Spanish. These are:
A Summary of the Havana Charter which attempts to reduce the
Charter to its main, simple elements, chapter by chapter.
The General Agreement on Tariffs and Trade, which summarizes the
history, developmant and implications of the GATT.
These two papers, if they meet with general approval, could be printed
and arrangements made for substantial distribution. It is unIikely,
however, that United Nations Headquarters will be able at this stage to
finance printing costs beyond the two publications mentioned above,
/7. In addition ICITO/EC.2/5
Page 13
7. In addition to the above publications, opportunity has been taken to
contribute articles to the United Nations Bulletin and to various works
of reference. The Executive Secretary has also been able to make several
addresses and broadcasts.
8. Very few opportunities have occurred to introduce news about the
Havana Charter or the Interim Commission into the daily newspapers. The
channels for distributing "spot" news through United Nations facilities
remain always available. But the experience of the past few months tends
to indicate that the national aspects of trading problems, such as the
renewal of the United States Reciproal Trade Acts, are more likely to
obtain newspaper space than the international aspects in their formative
stage, now that the Havana discussions are over.
9. There is, however, a steady demand for thoughtful articles on trading
problems and on the part that ITO can expect to play. The difficulty, as
will be appreciated, is that any articles sponsored by the Commission
or by the United Nations must inevitably take a somewhat neutral stand,
while articles by private writers or sponsored by governments can usually
adopt a more partisan and thus a more lively approach.
10. The Committee will doubtless wish to consider whether the information
programme is, as the Executive Secretary believes, starting on the right
lines, and, if so, whether there are any ways in which it can be most usefully
developed to assist such governments as may be interested. It is
appreciated that some governments with large scale domestic channels of
information at their disposal, will find the information service of less
value than governments whose services are less developed.
There is, it would appear, an almost unlimited amount of education
to be done as to the main purposes of ITO, its place amongst the other
United Nations specialized agencies, and the main features of the Havana
Charter. The printed word and the spoken word are the vital elements
in contributing to this process of education. The Committee may, in
fact, wish to propose further developments in publications. In this
connection the Executive Secretary urges that, as a general rule, all
publications for general information should be attractively printed
in the English, French and Spanish languages.
11. Whatever may be the facilities for distributing information through
United Nations channels, the Executive Secretary believes that it is the
member governments themselves which hold the key to the problem of
dissemination. For this reason, it is hoped that, wherever it seems
desirable, close working relations between interested member governments
and the Secretariat can be established for the consideration of matters
involving public information. /12. The working ICITO/EC.2/5
Page 14
12. The working relations established with the Department of Public
Information at United Nations Headquarters will, of course, be maintained
with the department of Public Information at Geneva. It should be borne
in mind, however, that while the Geneva office offers excellent facilities
for disseminating day to day news, for more general information work,
the Secretariat will be obliged to rely on the facilities at headquarters. |
GATT Library | vz040fz5367 | Report D on Sub-Committee 40, 41 and 43 | United Nations Conference on Trade and Employment, January 28, 1948 | Third Committee: Commercial Policy | 28/01/1948 | official documents | E/CONF.2/C.3/37 and E/CONF.2/C.3/10-38 | https://exhibits.stanford.edu/gatt/catalog/vz040fz5367 | vz040fz5367_90190129.xml | GATT_146 | 3,334 | 21,745 | United Nations Nations Unies UNRESTRICTED
CONFERENCE ON CONFERENCE E/CONF.2/C.3 /37
TRADE AND EMPLOYMENT DU 28 January 1948
COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
REPORT OF SUB-COMMITTEE D ON ARTICLES 40, 41 AND 43
1. The Third Committee at its seventeenth meeting on 22 December 1947
appronoved the fomation of a Sub-Committee on Section F - Special Provisions -
of Chapter IV consisting of the representatives of Argentina, Belgium,
Colombia, Denmark, France, Iraq, Italy, Peru, Southern Rhodesia, United
Kingdom and the United States of America.
2. The terms of reference of the Sub-Comittee were to consider and make
recommendations upon the text of Articles 40 to 43 and the amendments
submitted to these Articles, with the exception of these amendments to
Artiicle 42 which affected the question of preferences and were referred to
the Joint Sub-Committee of Committtees II an III, and the Swiss proposal for
a new provision, which was referred to Sub-Committee G of Committee III.
3. At its twentieth meeting on 31 December 1947,the Third Comittee adopted
a recommendation by the Joint Sub-Committee of Committees II and III to refer
to thate Sub-Committe also those proposals relating to Article 42, which
had been previously referred to Sub-Committee D.
4. The Sub-Committee held its first meeting on Monday, 29 December 1947,
and unanimously elected Mr. R. J. Shackle (United Kingdom) its Chairman.
5. The Sub-Committee held eight meeting. Delegates for several countries
not members of tmmhe Sub-Committee attended its meetings. Representatives of
Afghanistan, Cuba, Netherlands, Norway and Turkey took an active part in
the discussion on points of special interest to them.
6. In the course of its work the Sub-Committee examined the text of
Articles 40, 41 and 43, all outstanding amendments to these Articles as
listed in document E/CONF.2/C.3/11, as well as amendments and observations
subsequently submitted by Members and recommendations received from other
committees and sub-committees. The Sub-Committee did not examine the text
of Article 42 which it considered to be outside its terms of reference, all
amendments to that Article having been referred to another sub-committee.
7. The Sub-Committee was able to reach unanimous agreement on most points,
only a small number of decisions taken being subject to reservations by
individual delegations. The majority of such reservations were concerned
with matters forming part of larger issues or related to problems still
/under discussion E/CONF.2/C.3/37
Page 2
under discussion in other sub-committees. The substantial measure of
agreement reached was due to the spirit of conciliation shown by members of
the Sub-Committee.
8. The text of Articles 40, 41 and 43 as agreed - subject to the
reservations mentioned - and recommended by the Sub-Committee for approval
by Committee III is attached as an Annex to this Report.
SPECIFIC COMMENTS
Article 40 - Emergency Action on Imports of Particular Products
9. The Sub-Committee did not consider justified a proposal
(E/CONF.2/C.3/1/Add.42/Rev.1) to exclude quantitative restrictions on imports
of agricultural and fisheries products from the measures provided for in
this Article. The delegation of Peru reserved its position in this matter.
10. The Sub-Committee was unanimous in its understanding of this Article
that action taken by Members under paragraphs 1 (a), 1 (b) and 3 (b) - as
distinct from paragraph 3 (a) - should not involve any discrimination against
the trade of any Member. As the text as drafted might leave room for doubts
an this point, it was felt that this intention, as interpreted by the
Sub-Committee, should be expressly stated in the Charter. The Sub-Committee
decided therefore to recommend that this interpretation be embodied in a
foot-note attached to the Article and forming part of the Charter. The
delegation of Argentina reserved provisionally its position.
11. The question was raised whether, in taking action under paragraph I of
Article 40, Members would be limited to the reimposition of measures which
had been in effect prior to the entry into force of the Charter.
It was agreed that the text as drafted does not limit the measured which
Members might take. For example, it would be possible, under this paragraph,
for a Member to impose a quantitative restriction on imports of a particular
product, if such a restriction were in fact necessary to prevent or remedy
serious injury to domestic producers in the face of increased imports, even
though a quantitative restriction had not been applied prior to the adoption
of the Charter. There would, however, have to be a relationship of cause
and effect between (a) the increase in imports resulting in injury, and
(b) the obligations assumed by Members under Chapter IV. Such a relationship
might exist in the following cases, among others:
(i) The granting of a tariff concession (either the reduction of
a duty or the binding of a duty against increase) might lead
to injurious imports. . ; ,
(ii) The elimiination of a quantitative restriction exsting prior
to the adoption of the Charter might ad to injurious imports.
This might happen even though the restriction in question had
never been actually applied but had merely been provided for
/under the E/CONF.2/C.3/37
Page 3
under the laws or regulations of a Member.
In view of the broad scope of paragraph 1 of Article 40, as illustrated
above, the amendment proposed by the delegation Cuba (C.3/1/Add.22) was
withdrawn.
12. In sub-paragraph 1 (a) the word "relatively" was inserted between "such"
and "increased" so as to make it clear that Article 40 could apply in cases
where imports had increased relatively to domestic production, even though
there might not have been an absolute increase in imports as compared with
a previous base period.
13. The Sub-Committee was unable to accept a proposal to delete
sub-paragraph 1 (b).
14. The Sub-Committee shared the doubts expressed by the delegation of
Argentina as to the exact meaning of the word "critical" in paragraph 2 and
recommends its substitution by the words "of special urgency" to follow after
"circumstances".
15. The delegation of Argentina recorded a reservation in respect of the
words "the suspension of which the Organization does not disapprove" at the
end of sub-paragraph 3 (a).
Proposed New Article 40A
16. The Sub-Committee, having given full consideration to the Colombian
proposal for insertion of a new Article, decided that internal price
regulation and internal taxation were matters outside the scope of Section
and might properly be discussed in relation to Article 18.The propasal of
the Working Party composed of the representatives of Colombia and the United
States to reccommende that a provision dealing with certain aspects of these
matters be included in Article 18, was therefore referred to the Sub-Committee
dealing with that Article.
Article 41 -Consultation
17. It was decided to add to the measures mentioned specifically in this
Article "internal price regulations" and "'practices and "regulations affecting
the freedom of transit", the latter being subject to examilnation by the
Central Drafting Committee.
Article 43 General Exceptions to Chapter IV
18. The numbering of paragraphs in this Article was changed so as to bring
it into line with all other provisions of the Charter since there did not
seem to be any reason for departing from the genral practice followed.
elsewhere.
19. Upon recommendation of Sub-Commitee I of Committee VI an exception
was added concerning "laws and regulations relating to public safety", the
latter term, in the view of the Sub-Committee, including the concept of
"public order". E/CONF.2/C . 3/37
Page 4
"public order".
20. In discussing an amendment to sub-paragraph (a) (v), previously I (d),
designed to exempt measures against so-called "social dumping" from the
provisions of Chapter IV, the Sub-Committee expressed the view that this
objective was covered for short-term purposes by paragraph 1 of Article 40
and for long-term purposes by Article 4 in combination with Articles 89 and
90.
21. The delegation of Australia maintained its reservation in respect of
sub-paragraph (a) (viii) of paragraph 1 formerly I (g)) subject to the
final wording of Article 94.
22. Upon recommendation of Committee V a further exception was inserted for
measures taken under inter-governmental agreements for the conservation of
fisheries resources, migratory birds and wild animals, as a corollary to a
similar addition made to paragraph 1 of Article 67. It was thought
desirable, however, that the Central Drafting Committee should examine the
wording of this provision as well as the question whether it requires to be
stated separately or might be incorporated in the present sub-paragraph (x),
previously (h).
23. In sub-paragraph (a) (x) (previously I (h) the words "terms of" were
substituted for "obligations under" since it was felt that the word
"obligation" was liable to misinterpretation. It was agreed that this change
should be subject to further examination by the Central Drafting Committee
24. The Sub-Committee was unable to accept a proposal for deletion of the
last part of sub-paragraph (a) (xi) beginning with the words "during
periods..". The delegation of Argentina reserved its position on this
point.
25. The Sub-Committee expressed the view that governmental measures relating
to the orderly marketing of agricultural commodities for which storage
facilities in both the countries of origin and destination were insufficient,
were covered in paragraph 2 (b) of Article 20. On this understanding the
proposal by the delegation of Afghanistan to add a new provision to
paragraph 1 (a) was withdrawn.
26. In sub-paragraph (b) (1), previously II (a), the words "general
inter-governmental" were substituted for the word "multilateral". In the
view of the Sub-Committee the provision is intended to require Members to
take guidance not from any multilateral agreement as such, but from
agreements of a wide and general character, and the change was made so as
to express this intention more accurately. The delegate of Argentina
recorded a reservation.
27. The Sub-Committee in considering sub-paragraph (b) (ii) and (iii),
/formerly II E/CONF.2/C.3/37
Page 5
formerly II (b) and (c), agreed that the words "the war" were intended solely
to refer to World War II. In the course of the discussion it appeared,
however, that not only there might be room for a different-interpretation,
but that the concept of World War II, as applied to different parts of
the world, is in itself not sufficiently precise. It was decided, therefore,
to recommend that the Central Drafting Committee examine this provision with
a view to removing any ambiguity and vagueness.
28. A proposal to delete the proviso in sub-paragraph (b) (iii), previously
II (c), was not accepted. The delegation of Argentina recorded a reservation
on this point.
29. The Sub-Committee decided to recommend that, instead of including a
definite date in the final paragraph, the Organization should be authorized
to specify when the measures permitted under sub-paragraph 1 (b), previously
II, should be discontinued. It was felt that the conditions due to the
war had not improved at the rate and to the extent expected when the
Charter was first drafted and that even now it was not possible to foresee
with any accuracy when these conditions would be likely to cease. It
appeared desirable therefore, not to specify a date in advance, but to
empower the Organization to fix the time limit for the termination of all
or any measures in the light of future developments.
The delegate of Belgium did not insist on a proposal to leave the
present text unchanged and to add a provision empowering the Organization
to authorize the application of particular measures in respect of
particular products if it considered such measures warranted by
circumstances then ruling. A proposal by the delegation of Argentina to
delete the last part of paragraph 2 beginning with the-words "and in any
events having found no support, the representative of Argentina reserved
his position. E/CONF.2/C .3/37
Page 6
ANNEX
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 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 e 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 relevant 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 [critical] 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 shall be effected immediately after taking such action.
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 free to do so, and if 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
Article 40: It is understood that any suspension withdrawal or modification
under paragraphs 1 (a), 1 (b) and 3 (b) must not discriminate
agasit imports from any Member. /of thirty days E/CONF.2/C .3/37
page 7
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 hall, 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 construed (a) to require any Member,
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.
Article 41
Each Member shall accord ? 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 regulations, internal price regulations, subsidies,
practices and regulations affecting the ? 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 Charper.
Article 4
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 arbtrary or unjustifiable
discrimination beteewn 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: /[1] (a) [(a)] E/CONF.2/C.3/37 Page 8
[1.] (a) [(a)] (i) necessary to protect public morals;
(ii) necessary to the enforcement of laws and
regulations relating to public safety;
[(b)] (iii) necessary to protect human, animal or plant
life or health;
[(c)] (iv) relating to the importation or exportation of
gold or silver;
[(d)] (v) necessary to secure compliance with laws or
regulations which are not Inconsistent with the
provsions of this Chapter including those
relating to customs enforcement, the enforcement
of monopolies operated under Secton D of this
Chapter, the protection, of patents, trademarks
and copyrights, and the prevention of deceptive
practices;..
L)] evi)?,relating to the products of prison labour;.
(f)]g(vjil imposed for theoprotection of national treasures
of artistic, historic or archaeological value;
[(g)] (viii) relating to the conservation of exhaustible
natural resources if such measures are made
effective in conjunction with restrictions on
domestic production or consumption; ''
(L dua.ekaicein pursuance of -an intergo-levnmetnlla
rg~mene trelatings Sleylzto the cons rvation of
fisheries rsoeucersm graioryt irbds a d wnldi
animals; Provided taht theseme saure ra eusjectb
o the requirement o- pgragraph 1 (E) of
Article 67;
[(h)] (x) undertaken in pursuance of [obligations under]
the terms of inter-governmental commodity
agreements concluded in accordance with the
provisions VTNTUMTf Chapter VI; or
)- i27 jiing 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 E/CONF.2/C.3/37
Page 9
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;
[II.] (b) [(a)] (1) 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] 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;
[(b)] (ii) essential to the control of prices by a Member
country undergoing shortages subsequent to the
war; or
[(c)] (iii) essential to the orderly 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
consultatione with wother interested Members with
a view to appropriate international action.
2. Measures 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 at a date to be specified d 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 Inspect of particular products. |
GATT Library | fb002qm1326 | Report of Ad Hoc Working Group on the Swiss question | Interim Commission for the International Trade Organization, September 4, 1948 | Interim Commission for the International Trade Organization and Interim Commission for the International Trade Organization | 04/09/1948 | official documents | ICITO/EC.2/18 and ICITO/EC.2/15-ICITO/EC.2/21 | https://exhibits.stanford.edu/gatt/catalog/fb002qm1326 | fb002qm1326_90060214.xml | GATT_146 | 565 | 3,612 | INTERIM COMMISSION COMMISSION INTERlMAIRE DE UNRESTRICTED
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE ICITO/EC .2/18
FOR THE INTERNATIONAl L'ORGANISATION I4 September 1948
TRADE ORGANIZATION DU COMMERCE ENGLISH ORIGINAL:ENGLISH/FRENC
INTERIM COMMISSION FOR THE INTERNATIONAL TRADE ORGANIZATION
REPORT OF AD HOC WORKING GROUP
ON THE SWISS QUESTION
1. The Working Group came to the conclusion at its first
meeting that the decision of the Havana Conference "to
invite the Swiss Government to participate in a Study of the
problems facing the Swiss economy..." could best be carried
out by arranging for their governments to appoint a number of
experts to conduct an inquiry, under the direction of the Work-
ing Group, into the special problems relating to the possible
adherence of Switzerland to the Havana Charter, having special
regard to the problems connected with the Swiss economy.
2. It was arranged that the Chairman of Working Group,
Mr. M. Suetens, should meet the representative of the
Swiss Government, Mr. Walter Stucki, to discuss this proposal
with him and to mention that the Swiss Government would be
invited to nominate a person, who is au fait with the present
circumstances and future possibilities of the Swiss economy,
to join the experts and to assist in their study. The Work-
ing Group envisaged that the report of the experts would be
completed early in 1949; and the Working Group would then
meet again to examine the report and to decide on its presen-
tation to the Third Session of the Executive Committee.
3. At the second meeting the Chairman reported that he had
discussed the Working Group's proposal with the represen-
tative of the Swiss Government who had said that he could not
assist in an inquiry into the circumstances of the Swiss
economy which would be conducted on Swiss soil and which would
involve a. questioning of Swiss officials, nor could he partici-
pate in an inquiry upon the advantages and disadvantages for
Switzerland of joining the ITO; he had said that Switzerland
was not asking for favourf. and therefore could not be placed in
the position of a petiti and still less as being on the
defensive. On the other hand, it was the desire of Switzerland
to observe the decision of the Havana Conference and to co-
operate accordingly; he thought that the problem had been
thoroughly discussed at Havana, but if there were some
considerations or facts or figures which had been overlooked,
for example, questions relating to the trade in goods of a
luxury character, the Swiss Government woulLd be pleased to
supply information in response to questions submitted in
writing. ICITO/EC. 2/18
page 2
4. It was the general desire of the Working Group to
continue its endeavour to carry out a study on the
lines envisaged in the Havana decision, but it seemed
advisable to ascertain whether the Swiss Government would
be willing to supply the information which the Working
Party considered to be the minimum required to enable it
to arrive at conclusions and to make recommendations of
value. Accordingly, two members of the Group undertook
to prepare a sample set of the questions which might be
addressed to the Swiss Government. This "sample" was
discussed at the third meeting of the Working Group and
approved as a basis on which the Chairman could personally
sound the representative of the Swiss Government at a
meeting which had been arranged for Wednesday, 15th September. |
GATT Library | cb691kk8688 | Report of Ad Hoc Working Group on the Swiss question | Interim Commission for the International Trade Organization, September 15, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Interim Commission for the International Trade Organization (ICITO/GATT) | 15/09/1948 | official documents | ICITO/EC.2/18/Rev.1 and ICITO/EC.2/15-ICITO/EC.2/21 | https://exhibits.stanford.edu/gatt/catalog/cb691kk8688 | cb691kk8688_90060215.xml | GATT_146 | 686 | 4,513 | INTERIM COMMISSION COMMISSION INTERIMAIRE DE UNRESTRICTED
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE ICITO/EC.2/18/Rev.1
15 September 1948
TRADE ORGANIZATION DU COMMERCE ENGLISH
INTERIM COMMISSION FOR THE INTERNATIONAL TRADE ORGANIZATION
REPORT OF AD HOC WORKING GROUP
ON THE SWISS QUESTION
1. The Working Group came to the conclusion at its first
meeting that the decision of the Havana Conference "to
invite the Swiss Government to participate in a study of the
problems facing the Swiss economy..." could best be carried
out by arranging for their governments to appoint a number of
experts to conduct an inquiry, under the direction of the Work-
ing Group, into the special problems relating to the possible
adherence of Switzerland to the Havana Charter, having special
regard to the problems connected with the Swiss economy.
2. It was arranged that the Chairman of the Working Group,
Mr. M. Suetens, should meet the representative of the
Swiss Government, Mr. Walter Stucki, to discuss this proposal
with him and to mention that the Swiss Government would be
invited to nominate a person, who is au fait with the present
circumstances and future possibilities of the Swiss economy,
to join the experts and to assist in their study. The Work-
ing Group envisaged that the report of the experts would be
completed early in 1949; and the Working Group would then
meet again to examine the report and to decide on its presen-
tation to the Third Session of the Executive Committee.
3. At the second meeting the Chairman reported that he had
discussed the Working Group's proposal with the represen-
tative of the Swiss Government who had said that he could not
assist in an inquiry into the circumstances of the Swiss
economy which would be conducted on Swiss soil and which would
involve a questioning of Swiss officials, nor could he partici-
pate in an inquiry upon the advantages and disadvantages for
Switzerland of Joining the ITO; he had said that Switzerland
was not asking for favours and therefore could not be placed in
the position of a petitioner and still less as being on the
defensive. on the other hand, it was the desire of Switzerland
to observe the decision of the Havana Conference and to co-
operate accordingly; he thought that the problem had been
thoroughly discussed at Havana, but if there were some
considerations or facts or figures which had been overlooked
for example, questions relating to the trade in goods of a
Luxury. character, the Swiss Government would be pleased to
supply information in response to questions submitted in writing.
4. It was the general desire of the Working Group to
continue its endeavour to carry out a study on the
lines envisaged in the Havana decision, but it seemed
advisable to ascertain whether the Swiss Government would
be willing to supply the information which the Working Party
considered to be the minimum required to enable it to arrive
at conclusions and to make recommendations of value. Accordingly, ICITO/EC. 2/18 Rev. 1
Page 2
two members of the Group undertook to prepare a sample
set of the questions which might be addressed to the
Swiss Government. "sample" was discussed at the
third meeting of the Working Group and approved as a basis
on which the Chairman could personally sound the represen-
tative of the Swiss Government at a meeting which had been
arranged for Wednesday, 15th September.
5. The Working Group requests authority to continue
its work and to report to the Third Session of the
Executive Committee.
The Executive Committee, at the meeting held on
15th September, approved the request of the
Working Group in paragraph 5 of its report and
authorized it to continue its work with the
following terms of reference:
The Executive Committee empowers the Working Group
on the Swiss question to continue its examination
of the problems referred to it With a view to
Submitting its report to the Executive Committee
at the Third Session; the wOrking Group is
authorized to discuss the various aspects of the
question with representatives designated by the
Swiss Goverment, and may also take appropriate
measures to obtain expert advice.
Note: |
GATT Library | cc168gt2959 | Report of drafting Committee on the Spanish text | Interim Commission for the International Trade Organization, September 13, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 13/09/1948 | official documents | ICITO/EC.2/19 and ICITO/EC.2/15-ICITO/EC.2/21 | https://exhibits.stanford.edu/gatt/catalog/cc168gt2959 | cc168gt2959_90060216.xml | GATT_146 | 163 | 1,109 | UNRESTRICTED
INTERIM COMMISSION COMMISSION INTERIMAIRE DE ICITO/EC.2/19
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE
TRADE ORGANIZATION DU COMMERCE
Executive Committee
Second Session
REPORT OF DRAFTING COMMITTEE ON THE SPANISH TEXT
The Drafting Committee composed of experts from the
Colombian, Cuban, French, United Kingdom and United States
delegations, with assistance from the Mexican delegation,
has in the course of 10 days reviewed about one-third of the
provisional Spanish text of the Charter.
In view of the progress achieved, the Committee
considers it advisable to complete the work in Geneva, and
therefore recommends that the members who are able to do
so, continue the work in hand. It is expected to complete
the review of the Spanish text by September 25th.
It is suggested that this text be circulated by the
Executive Secretary to all Governrments immediately it is
ready and that provided no objections are lodged with him
before November 30th, the text should then be deposited as
authentic with the Secretary-General of the United Nations. |
GATT Library | rm278hw4501 | Report of drafting Committee on the Spanish text | Interim Commission for the International Trade Organization, September 13, 1948 | Interim Commission for the International Trade Organization and Executive Committee | 13/09/1948 | official documents | ICITO/EC.2/19 and ICITO/EC.2/15-ICITO/EC.2/21 | https://exhibits.stanford.edu/gatt/catalog/rm278hw4501 | rm278hw4501_90060216.xml | GATT_146 | 0 | 0 | |
GATT Library | zx677pd4209 | Report of drafting Committee on the Spanish text as approved by the Executive Committee at its Meeting on September 15 | Interim Commission for the International Trade Organization, September 16, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 16/09/1948 | official documents | ICITO/EC.2/19/Rev.1 and ICITO/EC.2/15-ICITO/EC.2/21 | https://exhibits.stanford.edu/gatt/catalog/zx677pd4209 | zx677pd4209_90060217.xml | GATT_146 | 258 | 1,668 | UNRESTRICTED
INTERIM COMMISSION COMMISSION INTERIMAIRE DE
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE
ICITO/EC. 2/19/Rev. 1
16 September 1948
TRADE ORGANIZATION
DU COMMERCE
ORIGINAL : ENGLISH
Executive Committee
Second Session
REPORT OF DRAFTING COMMITTEE ON THE SPANISH TEXT AS
APPROVED BY THE EXECUTIVE COMMITTEE AT ITS MEETING ON SEPTEMBER 15
The Drafting Committee composed of experts from the
Colombian, Cuban, French, United Kingdom and United States
delegations, with assistance from the Mexican delegation,
has in the course of 10 days reviewed about one-third of the
provisional Spanish text of the Charter.
In view of the progress achieved, the Committee considers
it advisable to complete the work in Geneva, and therefore
recommends that the members who are able to do so, continue
the work in hand.
It is expected to complete the review of
the Spanish text by September 25th.
It is suggested that this text be circulated by the
Executive Secretary to all Governments immediately it is
ready and that provided no objections are lodged with him
before November 30th, the text should then be deposited as
authentic with the Secretary-General of the United Nations.
If changes are suggested by a government or governments?
they shall be circulated before November 30 to all the members
of the Interim Commission.
If such changes cannot be agreed
upon by correspondence, the Executive Secretary is authorized to
consult a panel of experts in order to establish the final
text of the Havana Charter and to deposit this authentic
text with the Secretary General of the United Nations by
December 31st at the latest. |
GATT Library | ys094vw7346 | Report of Informal Working Party of Sub-Committee J. United States ammendment to araaticle 99 | United Nations Conference on Trade and Employment, February 18, 1948 | Sixth Committee: Organization | 18/02/1948 | official documents | E/CONF.2/C.6/W.104 and E/CONF. 2/C. 6/W. 81-118/ADD. 1 | https://exhibits.stanford.edu/gatt/catalog/ys094vw7346 | ys094vw7346_90200231.xml | GATT_146 | 210 | 1,480 | United Nations Nations Unies
CONFERENCE CONFERENCE E/CONF.2/c.6/W.104
ON DU 18 February 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
SIXTH COMMITTEE: ORGANIZATION
REPORT OF INFORMAL WORKING PARTY OF SUB-COMMITTEE J
UNITED STATES AMMENDMENT TO ARAATICLE 99
1. The Working Party has been unable to find a generally acceptable
alternative to the insertion of a provision in the Charter along the lines
of the United States amendment.
2. The Working Party has examined a text which was suggested for a new
paragraph for Article 68, and finds it generally acceptable and recommends
that it be considered by Sub-Comittee J. The English text is as follows:
"The Conference, on application of the competent authorities,
shall determine the conditions upon which rights and obligations under
the Charter shall apply to such authorities in respect of territories
under military occupation and shall determine the extent of such
rights and obligations."
3. The delegation of New Zealand generally accepted the text mentioned in
paragraph 2 above, and the Working Party therefore auggests to Sub-Committee J
that that part of the New Zealand amendment to Article 68, paragraph 5,
which relates to such special regimes as Con-Dominions should be referred
back to Commnittee VI with the suggestion that an Ad. Hoc Working Party should
study it. |
GATT Library | wm546rd6561 | Report of Informal Working Party on Article 21 | United Nations Conference on Trade and Employment, February 2, 1948 | Third Committee: Commercial Policy and Sub-Committee F (Articles 21, 23 and 24) | 02/02/1948 | official documents | E/CONF.2/C.3/F/W.21 and E/CONF.2/C.3/F/W.1-31/REV.2 | https://exhibits.stanford.edu/gatt/catalog/wm546rd6561 | wm546rd6561_90190584.xml | GATT_146 | 342 | 2,402 | United Nations Nations Unies RESTRICTED
E/CONF.2/C.3/F/W.21
CONFERENCE CONFERENCE 2 February 1948
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLIOI
THIRD COMMTTIEE: COMMERCIAL POLICY
SUB-COMMITEE F (ARTICLES 21, 23 AND 24)
REPORT OF INFORMAL WORKING PARTY ON ARTICLE 21
1. At its Ninth Meeting Sub-Committee F agreed to the principles contained
in the new paragraph 1 of Article 21 proposed in the report of the Working
Party on Article 21 (document E/CONF.2/C.3/F/W.19). However, the text of
Sub-paragraph (a) of this paragraph was referred to an informal Working Party
to suggest such drafting changes as might be necessary to bring out clearly the
intention of the provisions of the new paragraph. The members of this
informal Working Party were the delegates of Belgium, Cuba, Czechoslovakia,
Norway, the United Kingdom, and the United States of America, with
Mr. J. A. GUERRA (Cuba) as Chairman.
2. After consideration of the issues involved, the informal Working Party
unanimously recommends the following draft of sub-paragraph (a) of the proposed
new paragraph 1 of Article 21:
"1. (a) Members recognize that
(i) 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;
(ii) an adverse balance of payments of one Member may have
important effects on the trade and balance of payments
of other Merbers, [particularly] if it results in
or may lead to the imposition by the Member [ for
the purpose of safeguarding its external financial
positions of restrictions affecting international trade;
(iii) 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 balance of payments;
(iv) 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."
Note. Brackets indicate deletions and underlining indicates additions. |
GATT Library | xv496wk9002 | Report of Study Group on Article 16 | United Nations Conference on Trade and Employment, March 9, 1948 | Third Committee: Commercial Policy | 09/03/1948 | official documents | E/CONF.2/C.3/79 and E/CONF.2/C.3/78-89/ADD.3 | https://exhibits.stanford.edu/gatt/catalog/xv496wk9002 | xv496wk9002_90190186.xml | GATT_146 | 198 | 1,427 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF .2/C .3/79
ON DU 9 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
THIRD COMMITTEE : COMMERCIAL POLICY
REPORT OF STUDY GROUP ON ARTICLE 16
1 The Study Group was established by Sub-Committee A of Committee III at
its 38th meeting on 16 February 1948 to study and make recommendations direct
to Committee III on the question of special surcharges levied in Venezuela
on goods imported there via certain dependent territories in the Caribbean
area.
2. The Study Group was composed of the representatives of Colombia, Cuba,
Netherlands, United Kingdom, United States and Venezuela and, held three
meetings.
3. Having discussed the problem referred to it in full detail the Study Group
agreed unanimously to recommend to Committee III that the following Note be
inserted in the appropriate Annex to the Charter:
"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." |
GATT Library | rn825kn9286 | Report of Sub-Committee | United Nations Conference on Trade and Employment, January 8, 1948 | Fourth Committee: Restrictive Business Practices | 08/01/1948 | official documents | E/CONF.2/C.4/5 and E/CONF.2/C.4/1-25 | https://exhibits.stanford.edu/gatt/catalog/rn825kn9286 | rn825kn9286_90190648.xml | GATT_146 | 5,658 | 37,547 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF. 2/C.4/5
ON DU 8 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOIO.IGI, L zGLz
EE: RESTRICTIVE BUSINESS PRACTICES3BII3S PRACTIC
COMMITTEEUS-COr'rEL'=
1, The Fourth Committee at its mDeceng on 4 IecEmber 1947 approved the
fonmation of a Sub-Committee to consider the text of Chapter V in the light of
all the various amendments related to this Chapter and of the observations
expressed in the course of the meetings of the Fourth Committee.
rmanThe Chatrma of the Fourth Committee on 5 December 1917 (document
V/CONF.2/C,4/3) appointed the delegations of Argentina, Belgium, Canada,
Ecuador, India, Iraq, Mexico, Norwayg United KinGdom and the United States as
niembera of -the S.b-Comnittee
3. The Sub-Corittee held its first meeting on 6 December 1947 and ulanimousl~
elected MIr. Jose E. Lopez Alcar (Mexicol as its Chairman.
4. The Sub-Committee held twenty-three meetings and in the course of its work
considered in great detail all the amendments included in document
E/CONi.2/C.4/4 and Addendums and had the benefit of consultation with
representatives of the delegations of Afghaanistan, Brazil, Ceylon, Colombia.
Cuba, Czechoslovakia, Greece, Italy, South Africa, and Switzerland. A
number of other delegations also regularly attended the meetings of the
Bub-Comnittec .
5. The Sub-Committee took note of the helpful observations of the
lnternationi Co-operative Alliance contained in document E/CONF.2/15. The
Sub-Comnittee was of the opinion that the Organization would wish to take every
opportunity of consulting with Non-Governmental Organizations of Category A,
su.Cch aws the I.A. hich have had wide experience of the problems covered by
Chapter V. They felt, however, that it would be inappropriate gt this staGe
to make any more detailed provision in this connection than already exists
in the Charter.
6. And ad hoc committee, appointed by the Chairman of the Sub-Committee and
composed of the delegates for Belgium, Canada, Mexico, United Kingdom and the
United States, accomplished a large part of the drafting of the new text.
7. mmitte Sub-Coittee has approved the text of Chapter V as it appears in
Part II: of this report and recommends that the text be approved by the
Committee. The delegate for Argentina has reserved his 'Government s position
/in respect of E/CONF.2/C.4/5
Page 2
in respect of the inclusion of "public commercial enterprises" within the
scope of Chapter V, and to Article 50.
The delegate for Norway has reserved his position in regard to Article 50,
pending final decision on the Norwegian delegation's proposal to insert a new
Article 18A in the Charter.
The delegation of India reserves its position on Chapter V and particularly
on Article 56 pending the final disposal of the new Article 18A proposed in
another Chapter.
8. The Sub-Committee wishes to record its thanks for the assistance it has
received from the Executive, Interpreting and Clerical Members of the
Secretariat; Their able and wholehearted co-operation has been greatly
appreciated.
/1. GENERAL COMMENTS E/CONF.2/C.4/5
Page 3
1. . GENERAL COMMENTS
9. The Sub-Committee noted that the majority of amendment s'submitted
centred around the definition of three principles. These were asoO-llows:
1. The extent of control to be exercised by the Organization over
services, particularly those operated by Governmental Agencies.
2. The inclusion or exclusion of public comercial enterprises
within the provisions of Chapter V.
3. The Interpretation of the words 'decide' and 'decision' as used.
in Articles 44, 45A and 47.
10. In connection with point 1, in regard to Services, some delegations
expressed their hesitation in accepting the text of Article 50 as it now
stands, on the ground that certain services, when state administered and
managed, should not be subject to any inquiry under this Chapter. However,
the Sub-Ccmmittee, after detailed study, substantially agreed and wishes
to emphasize that there is nothing in Article 50 to prevent any Government
fiom Maintaining a monopoly or complete control over any services, but that
Article 50 merely refers to certain business practices in connection with
those services, which might prove restrictive and have harmful effects as
described in paragraph l of Article 44. The delegate of Argentina reserves
the position ohf is government in respect of Article 50.
11. With reference to Point No. 2, as to whether or not the business
practices of -plbJic enterprises should be included within the scope of
Chapter V, the Argentine delegation expressed itself as being strongly
opposed to their inclusion, on the ground that the application of Chapter V
to plb3ic enterprises established by a state in pursuane of economic
objectives designed. to improve the standard of living of the people of that
state, would entail a surrender of sovereign rights which the Argentine
Government was. not prepared to relinquish. The delegate for Argentina has
reserved. his Government's position in respect of "public commercial
enterprises" throughout the Chapter.
Other members of the Sub-Committee supported the inclusion of the
business practices of public commercial enterprises within the scope of
Chapter V, on the principle that when a state engages in commercial
activiti,s7 it acquires the same rights and obligations under this Chapter
in respect of these activities as it acquires in respect of similar
activities of private enterprises, and that the Chapter should not imply
any discrimination in favour of one form of commercial enterprise over the
others. However, the Sub-Committee made a clear distinction between the
state acting in a legislative or executive capacity and the state pursuing
the activitieo Of a business enterprise. It was considered important to
/point out E/CONF.2/C.4/5
Page 4
point out that the inclusion of business practices of public commercial
enterprises in Chapter V does not infringe upon the sovereignty of the
state itself, but is designed to bring within the framework of the Chapter
the business practices of public commercial enterprises insofar as they
may harmfully affect international trade.
12. With regard to Point No. 3, the Sub-Cammittee, after due study and
consideration, decided to incorporate in their report to the Fourth
Committee a definition of the words 'decide' and 'decision', as used in
certain parts of this Chapter, to serve as an aid to proper interpretation
of those words. The interpretation adopted by the Sub-Committee, and
submitted to the Fourth Committee for approval is as follows:
"The words 'decide' and 'decision' (Iconstate' and 'constatation'
in the French text) as used in Articles 44, 45A (except in paragraphs 3
and 4) and 47 relate to conclusions by the Organization whether or
not particular practices have had, have or are about to have the
harmful effects described in paragraph 1 of Article 44, and do not
prescribe the obligations of Members. Members' obligations regarding
these 'decisions' are set out in the relevant paragraphs of Article 47.
Therefore, such 'decisions' (or 'constatations') are not to be construed
as binding the legislative, executive or judicial activities of
Member States".
Furthermore, the Sub-comnittee agreed on the following text to be
included as sub-paragraph (d), paragraph 2 of Article 51:
"(d) The terms 'decide' and 'decision' as used in Articles 44, 45A
(except in paragraphs 3 and 4) and 47, do not determine the obligations
of Members, but mean only that the Organization arrives at, or reaches,
a conclusion.'
The acceptance of the delegation of India of sub-paragraph (d) was
provisional.
/2. SPECIFIC C OMMENTS E/CONF. 2/C.4/5
Page 5
2. S;ECKFKC COMMENTS
Article 44
13. In paragraph). of Article I44 the words "and shall co-operate with the,
Organization" were subatituted- for 'the words "individually or through the
Organization 'or in both ways" in order to express the general-principle of
co-operation between members -and the Organization".
14. In considering paragraph 2, sub-paragraph (c) of Article 44 the
Sub-Committee was of the opinion that the expression "effective control of
trade between two or-more countries" was open to possible misinterpretation.
The amendment is designed to make it clear that the activities of an'
enterprise which has been granted sole rights of import or export of a
particular product in a. particular country, and which might, therefore, be
said to have de jure control of trade between that country and any other, will
not be liable to complaint unless It also has de facto control of trade and is
in a position to exert monopolistic pressure on its suppliers or customers to
accept certain terms or conditions. This interpretation might be applied even
though the Member's exports or Imports of the product were a negligibly small
proportion of international trade and even though its buying or selling
enterprises faced keen competition. Generally speaking, the enterprise will
not be in a position to exert such de facto control of trade with any other
single country unIess it also controls trade among several countries, and
it is for this reason -that -the Sub-Committee introduced. the more general.
expression "effective control of trade among a number of countries". The less
frequent case of an enterprise which exerts de facto control of trade between
two countries only is' also intended to be covered by this phrase.
15. In Article 44, paragraph 3' (a) the term "third parties" has been changed
to read "others'' in order to maintain uniformity with the French text of the
Geneva Draft -of the Charter 'and. to reflect the understanding of the
representatives of some delegations as to the meaning of ,this sub-paragraph.
It was the Sub..Committee's view that the language should be broad. enough to
allow the procedures of Chapter V to be applied to (i) cases in which two or
more parties agree upon the terms of their bohavious toward other parties,
including prices or other conditions of doing business with such other
parties; and (ii) cases in which "one" enterpriser, including a complex of,
f irms related by common ownershhip 'of' some or all of their respective capital,
engage. in the practice of monopolistic extortion towards other buyers or
sellers. The representative -of the United States delegation held. -that in-.:
the light -of (ii) above, "-'this sub-paragraph would therefore be applicable
to cases similar to those which have' been regarded 'by the United States-courts
as subject to the provision of the Sherman Anti-Trust Act which related to
"monopolizing or attempting to monopolize" trade.
/The Sub-Committee E/CONF.2/C.4/5
Page 6
The Sub-Committee emphasizes that this sub-paragraph is not to be
construed as applying to simple price situations where, for example, an
enterprise during the period of a "sellers' market" may be charging prices
higher than could normally be obtained. It was not the Sub-Committee's
intent to recommend that the Organization should exercise functions similar
to those, of a national price control agency. The Sub-Committee points out
that sub-paragraph 3 (a), like all other sections of paragraph 3, can be
construed only together with paragraphs 1 and 2.
16. Paragraph 4 of Article 44 was transferred to Article 51, paragraph 2,
sub-paragraph (b).
17. The delegation of Afghanistan withdrew its amendment for the insertion
of the words "including the discriminatory establishment of, exclusive
agencies, detrimental to a Member's economic recovery", after the members
of the Sub-Committee had explained that the practices which were the basis
of that amendment could be considered as falling under the provisions of
paragraph 3 of Article 44, although, of course, each case would have to be
considered on its merits.
Article 45
18. After much detailed study by the Sub-Comittee it was decided to divide
Article 45 into two Articles, namely 45 and 45A. This was done to distinguish
clearly between the two procedures envisaged in Article 45, i.e. the
procedure of consultation and the procedure regarding complaints. . -
Article 45A
19. Article 45A was renumbered and the new paragraphs 1 and 7 were redrafted
to take account of the amendments submitted to Article 45.
The Sub-Committea feels that paragraph 7, to which a new proviso has
been proposed, is of considerable importance. This paragraph provides that
if the Organization decides that certain restrictive business practices have
harmful effects, it shall call upon the Members concerned to take remedial
action. The paragraph provides further that the Organization may make.
recommendations to the Members concerned regarding remedial measures to be
taken in the particular case.
In view of its importance the Sub-committee calls attention to this
distinction between a decision of the Organization and a recommendation.
The term decision relates to conclusions by the Organization as to whether
the practices in question have harmful effects. The term recommendation
relates to specific or general suggestions formulated and advanced by the
Organization which set forth a course of action that might be followed to
advantage by the Members concerned in remedying the situation under complaint.
I . /Tt is not E/CONF. 2/C.4 /5
Page 7
It is not contemplated in paragraph 7 that in every case such a recommendation
would be proper or necessary. In Simple situation involving one, or perhaps
two countries, a recommendation by the. Organization might not be appropriate;
however, in complex cases involving a number of countries, it is frequently -
difficult, if not impossible, for one country to act-effectively and properly
in the absence of -knowledge as to the lines -of conduct which -other countries
propose to follow. In the view of the Sub-Committee it appears inadvisable
to require the Organization to make recommendations in every case or to-define
the type of case in which recommendations would be appropria-e. This matter
should be left to the discretion. of the Organization.
20. The proviso to- paragraph 45A. (7) is designed to draw attention to the fact
that the concluding stages of the procedure described in that Article cannot
appropriately be utilized when the member assumes specific responsibility for
particular business practices -carried out by an enterprise within its
jurisdiction. When it appears, therefore. that a practice which is the subject
of an investigation has been specifically required by a Member, a complaint
regarding such practice is removed from the scope of paragraphs 7, 8, 9 and
10 of Article 45A. In such a case, the complaining Member may have recourse
cnly through. the procedures provided focr elsewhere in the Charter.
Article 47
21. The transposition of the words "in accordance with the Member's system of
law ana economic organi-zation" and the addition of the word "constitution" to
paragraph 1 of. this Article, are intended to make it clear that in implementing
the obligations undertaken by a Member in terms of this Article it has to
proceed in- accordance with its own system of political and economic-
organization. The nature of the exact legal or administrative implementations
of these obligations would accordingly very from country to country, and no
impairment of fudamental legislation would be involved in giving effect to
a Member's obligations under this Article.
22. A small amendment in Article 47 (1) makes it clear that the practices
referred to in Article 47 and in respect of which Members undertake obligations
are those which meet. the conditions of paragraphs 1, 2 and 3 of Article 44.
Article 48 .
23. The Sub-Committee found. that the Geneva draft of Article 48 was ambiguous
especially in-relation to its reference to the term "remedial order". After a
full discussion the Sub-Committee approved the present text as representing
more clearly the intentions of the Article.
Article- 50
2,4. The delegation of- Mexico beld that the reference to banking ir-Article 50
migbt be interpreted as covering the credit and monetary control operations of
- . /a Central E/CONF.2/C .4/5
Page 8
a Central Bank undertaken to implement a national-financial policy. The
Sub-Committee.was unanimously of the opinion that their Governments counld
not accept such an interpretation. They; therefore, agreed to the present
text of.Article 50 and to make the following observations: the alteration of
the word "banking" in the first sentence of Article 50 (1) -to the phrase''the
commercial services of banks," is designed to make it perfectly clear that the
banking operations to which-the-peragraph refers are simple financial services
directly and intimately connected with international commercial transactions
such as the provision of short-tbrm credit facilities -to cover Imports and
exports of goods; and the alteration of the phrase "in relation to them to
the phrase "enterprises engaged in these activities in international trade".
is intended to Show that the paragraph refers only to banking institutions
which are themselves directly engaged in international commercial transactions.
The Sub-Committe'e was of the opinion that it should be established. beyond
doubt that the provisions of Article 50 do not refer to such activities as the
regulation of internal credit or of internal monetary circulation by a central
bank or to longer term international lending by a governmental agency.
Article 51
25. After lengthy discussions the Sub-Committee agreed to replace the list
of specific exceptions in Article 51 by an interpretative Article which-would
clarify the position in regard to various ambiguities which were felt by some
Delegations to exist in Chapter V. They accordingly adopted the new text of
Article 51. During -the discussions, several Delegations-expressed-concern that
Chapter V was so broadly phrased that it might come into' conflict with other
Chapters of the Cbaiter. The Sub-Committee emphasized that Chapter V was-
intended to supplement and not to conflict with the 'rest of the Charter.
Paragraph 1 of the new Article 51 is intended to make -it clear that action
taken in pursuance of, for instance, an inter-governmental commodity-control
agreement which meets tile requirements of Section -C of Chapter VI, cannot
ordinarily be subject to challenge under Chanter V. Paragraph 2 (a). C
specifically lays down that single contracts of purchase, sale :or lease
concluded between- two commercial enterprises whether public private shall
not except in the special circumstances set out in the proviso be considered
as falling within the meaning of the term "business practice" as used in
this Chapter. It was believed by the Sub-Committee that this provision would
be a safeguard against certain types of' complaints vhich did not-properly fall
within the scope of -Chapter V. The Sub-Committee brought into
paragraphs 2 (b), (c) and (d) of the Article on Interpretation and Definition,
the' remaining points on which the Sub-Committee felt that clarification was
necessary. An alteration in the definition of public enterprises was made in
paregraph 2 (b) (l) in older to distinguish between the actions of a State
/when acting E/CONF . 2/C. 4/5
Page 9
when acting in its soverign legislative or administrative capacity and when
acting in a trading or commercial capacity. In the former case the actions
of a State are not subject to investigation under Chapter V.
/PART III E/CONF.2/C. 4,/5
PRRT III
THE TEXT OF CHAPTER V AS APPROVED BY THE SUB-COMMITTEE
RESTRICTIVE BUSINESS PRACTICES
ARTICLE 44
General Policy Towards Restrictive Business Practices
1. Each Member shall take appropriate measures, [undividually or through
the Organization or in both ways7]and shall co-operate with the Orgenization,
to prevent, on the part of private or public commercial enterprises, business
practices affecting international trade /whether engaged in by private or
public comneecial enterprises)] which restrain competition, limit access to
markets, or foster monopolistic control, whenever such practices have
harmful effects on the expansion of production or trade and interfere with
the achieveman of any of the other objectives set forth in Article 1.
2. Without limiting the generality of paragraph 1 of this Article, and in
order that the Organization may decide in a particular instance whether
certain practices have or are about to have any of the effects described in
pararaph I of this Article, the Members agree that complaints regarding any
of the practices listed in paragraph 3 of this article shall be subject to
investigation in accordance with the procedure regarding complaints provided
in Articles 45A and 47, whenever
(a) such a complaint is presented to the Organization; and
(b) the practices are engaged in or are made effective by one or
more private or public commercial enterprises or by a combination,
agreement or ther arrangement between commercial enter-prises,
whether between private commercial enterprises, between public
commercial enterprises, or between private and public commercial
enterprises; and
(c) such commercial enterprises, individually or collectively,
Possess effective control of trade [between two or more] among a
number of countries in one or more products.
3. The practices referred to in paragraph 2 of this Article are the
following:
(a) fixing prices [or] , terms [;] or conditions to be observed in
dealing with third parties,] others in the purchase, sale or lease
of any product;
(b) excluding enterprises from any territorial market or field of
business activity, allocating or dividing any territorial market or
field of business activity, allocating customers, or fixing sales
/quotas or E/CONF.2/C. 4/5
Page 11
quotas or purchase quotas; *
scc) ndicrgimiatin againscult partiar enterprises;
(mitid) p ling roduction or fixing pro ductionquotas;
(e) preventing bye agreemnt the development ccor appiation of
technoloigy or nvention whether patentunped or; atented
(fn)i esedng t oh e use rights under patents, araadeoo mrks
copy rrigthtsga anyaned y Member, to matters which are determined.
byytem of law tesol0to. bewithin the scope osuch f nnts,,ss o
to procts dr couonditison of production, use or sale wchhia re
similarly determined not to be the subjects ofsuch angrts;
)(ang y misilar praices whctich the Organization by ,mjoa.rity of
two-thirds of the Members prenest and voting my from ti meto time
cideear cepecticti bunsiess practices.
4[. InthisC hapter the term "public commercial enterprise "means
(a) trading agencies of governments, and
(b) enterprises mainly or wholly owned by public authority an:
over which there is fefective control by public authority
including control foen gagement in a practice listed in paragraph 3
of this Article
The p tem "rivate comermcial enterprises" means all other
comermcial enterpriss.e]
ARTICI E 45
upProcere ewhi respect t[Io nvestigations and] consultations
-r[TheOganzaition shall arragen, if it considers, suchat icon to be
usjtified on th eabss iof informtiaon submitedt by the Members concerned,
forpa rticularM embers to take part in a consultation requested y]b Any
affected Memberw hich consider that in any particular instance apr actice
exists (whetheren gaged in by private or public commercial enterprises) which
has ori s about to have the effect described in paragraph 1 ofAr ticle 44
may oncsutl other Members directyl or request the Organization to arargne
for consultation with particular Members with a view to reaching mutualyl
satisfactory conclusions. If requested by the Member and if it considers
such action tobe usjtified, the Organization shall arrange for and assist
in such consultation. Action under this article shall b weithout prejudice
to the procedure provided for in ArtcoIe 4A.5.
RTAICLE 45A
Procedure with respect to Investigation
2][ 1. [A complaint may be presented in writing to the Organization y
Any affected Member on its own behalf or [by] any Member on behalf of any
/affected E/CONF.2/C .4/5
Page 12
affected person, enterprise or organization within that Memberts jurisdiction,
may in accordance with [Article 44,] paragraphs 2 and 3 of Article 44 present
a written complaint to the Oranization That in any particular instance a
practice exists whether engaged in by private or public commercial
enterprises) which has or is about to have the effect described in paragraph 1
of Artile 44. PROVIDED that in the case of [a] complaints against a single
public commercial enterprise acting inpendatly of any other-enterprise,
such comlplaints my be presence only' by a Member on its own behalf and only
after the Member has resorted to the procedure [under paragraph 1 of this
Article7 in Article 45.
[3.] 2. Te Organization' shall prescribe the minimum information to be
included in complaints.[that partcular practices exist whIch have or are
about to have the effect described in paragraph 1 of Article' 44.7 The
information shall give substantial indication of the nature and harmful
effects of the practices.
(4) 3. The Organization shall: consider each complaint presented in
accordance with paragraph 17 1 of this Article. If the Organization
deems it appropriate it shall request Members concerned to furnish
supplementary information, for example, information from commercial
enterprise within their jurisdiction. After reviewing the relevant
information the Organization shall decide whether an investigation is
Justified.
(5) 4. If the Organization decides that an investigation is Justified, it
shall notify all Members of the complaint request any Member to furnish
such additional information relevant to the complaint as the
Organization may deer necessary, and shall conduct or arrange for
hearings on the complaint. Any Member, and any person, enterprise or
organization on whose behalf the complaint has been made, as well as
the commercial enterprises alleged to have engaged in the practice
complained of, shall be afforded reasonable opportunity to be heard.
(6) 5. The Organization shall review all information availabe an decide
whether conditions specified in pargraphs 2 and 3 of article 44 are
present and the practices in question have had, have or about to ,have
the effect described in paragraph 1 of that Article [44.]
(7) 6. The Crganization shall [no#####] ######## all Members of its decision
and the reason tlherefor.
(8) 7. If the Organization decides that in any particular case the
conditions specified in paragraphs 2 and 3 of Article 44 are present /and le 44 ut E/CONF.2/C.4/5
Pago 13
end practices complained of have had, have or about to have the effect
deacrib6d in paragraph 1 of that Articlo [447 it shall request each
Member concerned to take every possible remedial action, and may also
recommend to the Members concerned remedial measures to be carried
out in accordance with their respective laws and procedures. Provided
that if the Organization finds that such practices have been specifically
required by the Member concerned, the. provisions in paragraphs 7, 8,
and 10 of this !Article shall not apl n th
may_ have- further recourse only tbi-uugh the procedures -Drovided in
Chapter VIII and other relevant provisions of this Charter.
9.7 8. The Organization may request any Member concerned to report fully
on the remedial action it has taken in any particular case.
[0.79. As soon as possible after its proceedings in respect of any
complaint under this Article have been provisionally or finally closed,
the Organization shall prepare and publish a report showing fully the
decisions reached, the reasons therefor end ary measures recommended
to the Members concerned. The Organization shall not, if a Member so
requests, disclose confidential information furnished by that Member,
which if disclosed would substantielly damage the legitimate business
interests of a commercial enterprise.
Z11-710. The Organization shall report to all Members and make public the
remedial action which has been taken by the Members concerned in any
particular case.
ARTICLE 46
Studies relating, to Restrictive Business Practices
1 The Organization is authorized
(a) to condioct studies, either on its own initiative or at the request
of any Member oi of any organ of the United Nations or of any other
inter-governmental organization relating to
(i) general aspects of restrictive business practices affecting
international trade; and
(ii) conventions, laws and procedures concerning, for aeample,
incorporation, company registration, investments, securities,
prices, markets, fair trade practices, trade marks,
copyrights, patents and the exchange and development of
technology insofar as they are relevant to restrictive
business practices affecting international trade; and.
(iii) the registration of restrictive business agreements and other
arrangements affecting international trade; and
/(b) to E/CONF.2/C.4/5
Page 14
(b) to request information from Members in connection with such
studies .
2, The Organization is authorized
(a) to make recommendation to Members concerning such conventions,
laws and procedures as are relevant to their obligations under this
Chapter, and
(b) to arrange for conforences of Members to discuss any matters
relating to restrictive business practices affecting international
trade.
ARTICLE 47
Obligations of Members
1. Each Member shall take all possible measures by legislation or
otherwise, in accordance with its constitution of system of law and economic
organization, to ensure, within its jurisdiction, that private and public
commercial enterprises do not engage in practices which are as specified in
paragraphs 2 and 3 of Airticle 44 and have the effect described in paragraph 1
of that Article [44]- [and] In addition it shall assist the Organization in
preventing these practices. [ such assistance to be given in accordance
with the Member's system of law and economic or organization .]
2. Each Membe shall sake adequate arrannements for presenting complaints,
conducting investigations, and preparing information and reports requested
by the Organization.
3. Each Member shall furnish to the Organization, as promptly and as fully
as possible, such information as is requested by the Organization for its
consideration and investigation of complaints and for its conduct of studies
under this Chapter; PROVIDED that any Member on notification to the
Organization, may withhold information which the Member considers is not
essential to the Orgaization in conducting an adequate investigation and
which, if disclosed, would substantially damage the legitimate business
interests of a commercial enterprise. In notifying the Organization that it
is withholding information pursuant to this clause, the Member shall
indicate the general character of the information withheld, and the reasons
'why it considers it not essential.
4. Each Member shall take full account of each request, decision and
recommendation of the Organization under Article 45A and, in accordance with
its system of law and oconomic organization, take in the particular case the
action it considers appropriate having regard to its obligations under this
Chapter.
/5. Each Member E/CONF.2/C.4/5
Page 15
5. Each Member shall report fully any action taken, .independpntly or in
concert with other Members,to comply with requests and carry out
reccomndations ot the Organization and,when no action has been taken,
inform the Organization of the reasons therefor and. discuss the matter further
with the Orgaization if requested to do so.
6. Each Member shall, at the request of the Organization, take part in
consultations and conferences provided for in this Chapter with a view to
reaching mutually satiefactory conclusions.
ARTICLE 48
Supplementary Enforcement Arrangements
[1. Members may co-operate with each other in prohibitive, preventative or
other measures for the purpose of making more effective any remedial order
issued by a duly authorized. agency of any Member in furtherance of the
objectives of this Charter.
2. Members participating in or intending to participate in such.
co-operative action shall notiffy the Organization.]
Members who co-operate with each other to prevent, within their
respective jurisdictions, practices as described in Article 44 shall inform
the Organization of the action taken.
ARTICLE 49
Doestic Measures A.gainst Restrictive Business Practices
No act or cmiassion to act on the part of the Organization shall preclude
any Member from enforcing any national statute or decree directed towards
preventing monopoly or restraint of trade.
ARTICLE 50
Special Procedures with Respect to Services
1. The Members recognize that certain services, such as transportation,
telecommunications, insurance and the commercial services of banks [banking]
are substantial elements of international trade and that any restrictive
business practices [in relation to them] by enterprises engaged in these
activities in international trade may have harmful effects similar to those
described in paragraph 1of Article 44. Such practices shall be dealt with
only in accordance with the following paragraphs.[of this Article]
2 If any Member considers that-there exist restrictive business practices
in relation to service referred to in paragraph 1 of this Article which
have or are about to have such harmful effects, and, that its interests are
thereby seriously prejudiced, the Member may submit a written statement
explaining the situation to the Member or Members the private or public
enterprises of which are engaged in the services in question. The Member or
/Members E/CONF.2/C.4/5 Page 16
Members concerned shall give sympathetic consideration to the statement and
to such proposals as may be made [with a view to affording] and shall afford
adequate opportunities for consultation, with a view to effecting a
satisfactory adjustment. , ..
3 If no adjustment can bcerd affected in acoance withthe provisions of
paragrticleapah 2 o this Ar -d if thee m ttt er is refared.o-he
Oranization; if shall be -ransferred to .he approprrriate inter-govnmental
oranization if one exists, with such observartions nstnhe Oganizatio may
wish to make. If no suchmen inter-governtal organization exists, Members
may askthe Organization, .under Article 69 (c. to make recommendations for,
and promote international agreement on, menasures desiged to remedy the
particulasr situation oo fa wr asn it cmesithi the scope of this Charter.
4. The Organization shal l, i n accordancewith paragraph 2 of Article 84,
co-opate with inter-governmental orgaizations in connection with
restrictive business prfactices af eicting anyfeld coming wicothin the spe
of this Charter and those organizations shall be entitled to consult the
Organization, to seek advice, and to ask that a study of a particular
problem be made. - .
ARTICLE 51 .
INTERPRETATION AND DEFINITION
1. The provisions of this Chapter shallbe construed with due regard for
the rights anrd obligations of Members sret forth elsewhere in this Charte
and shall t therefore be so inter-red as to prevent the adoption and
enforcement of any measures in so far as they are specifically permitted
under other Chapters of this Charter. The Organization may however make
recnentions to-Mees or to any appropriate inter-governmental
organization concerningaea' tues of these measures which may have t'h
effect described in paragraph 1 of Axicle 44.
2 . this Chapter
(a) the term "business actice" shall not be construed to include
an individual contract of purchase and sale or lease or agency
concluded between two commercial enterprises as buyer and seller
respectiv uiel, provided, that such contract is noted to restrain,
cmaeitiono, tmt acce sos to; markets or fo;s::e-mnoolistic-cnto
(b) the term "ublic comercial enterprises" means
aenc Cjfgove emnts insofar as they -ar -engagd
trade, and . - -- -
(i) ryyaiubng enterrisesOwholy ownee d b plic
authority as Pros ed the Member-concerned;erts that.
for the purposes of this Chapter it has effective
control over or assumes responsibility for the
enterprises.
/(c) the term E/CONF.2/C .4/5
page 17
(a) the term "private commercial enterprises" means all commercial
enterprises other than public commercial enterprises;
(d) the term "decide" and "decision" as used in Articles 44, 45A
except in paragraphs 3 and 4) and 47 do not determine the obligations
of Members, but mean only that the Organization arrives at or reaches
a conclusion. |
GATT Library | ph774gr1972 | Report of Sub-Committee 2 on Economic Development and Reconstruction | 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/EC.2/20 and ICITO/EC.2/15-ICITO/EC.2/21 | https://exhibits.stanford.edu/gatt/catalog/ph774gr1972 | ph774gr1972_90060218.xml | GATT_146 | 2,928 | 19,947 | UNRESTRICTED
INTERIM COMMISSION COMMISSION INTERIMAIRE DE ICITO/EC.2/20
THE INTERNATIONAL L'ORGANlSATION INTERNATIONAL 14 September 1948
TRADE ORGANIZATION DU COMMERCE ORIGINAL: ENGLISH
EXECUTIVE COMMITTEE
Second Session
REPORT OF SUB- COMMITTEE 2 ON ECONOMIC
DEVELOPMENT AND RECONSTRUCTION
(1) The Sub-Committee examined the Interim Report
prepared by the Secretariat (ICITO/EC.2/7 and ICITO/EC.2/
7/Add.1 2 and 3) and Annexes listed therein* . In view
of the scope of the Havana resolution and the very short
time available for consideration and discussion at the
Second Session the Sub-Committee considered that it was
not possible at this session for the Executive Committee
to prepare the report or to formulate recommendations for
the First Conference of the ITO. it was agreed that there
should be time for Members of the Executive Committee to
consider further the documents that had been prepared and
that the Secretariat should pursue further studies.
Members would then have an opportunity at the Third
Session of the Executive Committee to submit for considera-
tion specific proposals relating to the Resolution. It
would then be possible to prepare the report to the Con-
ference. This document therefore should be regarded as
a brief record of the discussions at this session and of
certain tentative conclusions which should be considered
by Members before the next session.
I Survey of Existing Activities and Facilities
(2) The Sub-Committee considered existing activities
and facilities under four headings -
(a) United Nations and Specialized Agencies.
(b) inter-governmental organizations other than
the United Nations and Specialized Agencies.
(c) Governments.
(d) Private organizations.
(3) The Sub-Committee took note of the material sub-
mitted by the Secretariat as listed in the appendix which
seemed adequately to summarize the available information
* A list of the documents presented by the Secretariat
is contained in the Appendix to this Report. ICITO/EC.2/20.
Page 2.
in so far as the United Nations and the Specialized Agencies
were concerned.
(4) With regard to inter-governmental organizations
other than United Nations agencies the Sub-Committee
noted that documents had been supplied with regard to inter-
American organizations, the Caribbean Commission and the
Arab League.
( 5) With regard to facilities provided by governments
and private organizations the Sub-Committee took note of
the preliminary indications given by the Secretariat and
the considerable lack of information on this subject.
(6) The Sub-Committee wished to draw particular attention
to the following conclusion of the Sub-Commission on
Economic Development:
"The Sub-Commission's survey of the existing
facilities has revealed that there are several
important fields of economic development activity
in which additional assistance should be given,
if requested, such as in the fields of manufacturing
industries, mining and metallurgy, power development
and public utilities, road and other inland transport,
public works and building activity and mechanical
and civil engineering. The Sub-Commission is of
the opinion that every effort should be made to make
available, especially to under-developed countries,
technical assistance in these fields as well."
(7) The Sub- Committee was of the opinion that it was
most important that activities should be vigorously under-
taken in these fields. The need for activities in the
industrial field both to complement and to support those
of the FAO in the fields of Agriculture, forestry and
fisheries was stressed by the FAO observer and endorsed
by the Sub-Committee. The Sub-Committee noted that both
the Economic Commission for Europe and the Economic
Commission for Asia and the Far East had set up subsidiary
bodies concerned with industrial development.
II Activities of ITO
(8) The Sub-Committee desired, in the first place, to
lay emphasis on the fact that the havana Charter required
the ITO to take a comprehensive interest in economic
development and reconstruction. This had to be weighed
against the fact that similar broad responsibilities were
laid upon other organs of the United Nations, such as the
Economic and Social Council, and that significant work
was already being undertaken by the United Nations and
Specialized agencies in this field. Given the limitation
of the resources of the United Nations and other inter-
governmental organizations the Sub-Committee desried it
essential to ensure that the coming into existence of the
ITO did not result in any duplication but in a net addition
to the sum total of activities, The Sub-Committee was,
therefore, of the opinion that the ITO should not undertake ICITO/EC .2/20
Page 3.
any activities which are being carried out by the United
Nations or other inter-governmental organizations, unless
after consultation and careful consideration it seemed
appropriate both to the ITO and to the other organization
concerned that the Particular activity should be undertaken
by the ITO.
(9) It was agreed that the ITO should not allocate
rigidly to itself a particular field but that it should
pay initial attention to the gap in the industrial field.
indicated in paragraph (6) above.
(10) Although the activities of the ITO can be finally
determined only in the light of experience the Sub-
Committee considered it useful, even at this stage, to
form a preliminary idea of the nature of such activities
in order to indicate the probable magnitude of the task,
to enable preliminary consultations with other agencies
to be carried out on a more realistic basis, to provide
an assurance to countries interested that the Executive
COmmittee was fully conscious of the responsibilities of
the ITO to carry out certain positive, functions and to
make possible recommedations on the further activities
of the Interim Commission.
(11) The Sub-Committee considered that special considera-
tion should be given -
(a) to the provision of technical and other
Assistance or advice to Members, with due regard
to the provisions of the Havana Charter, and
(b) in the broader field, of encouragement to
development, to the undertaking of studies
and to the making of recommendations regarding
the international movement of facilities.
(12) In the light of the foregoing and subject to its
view expressed in Section IV below regarding relations
with other agencies the Sub-Committee reached the following
tentative conclusions regarding particular activities of
the ITO.
(13) The ITO must be prepared to carry out its principal
function under Article 10. This may include despatch,
on request, of missions of experts or individual Experts
to particular countries. The ITO should also be able to
aid requesting governments to obtain appropriate technical
assistance. The experts which the ITO may send to
particular countries could either be officials of the ITO
or specialists engaged for the purpose. The action of
the ITO will vary according to the type of request
received. In some cases the ITO will take action itself
while in others it may direct the government to other
sources of assistance. For this purpose the ITO will
have to equip itself with such staff and advisers as will
enable it to be thoroughly familiar with the needs and
problems of less-developed countries and with public and
private sources of technical assistance in order, inter
alia, to be able competently to advise on the quality of
assistance available. ICITO/EC. 2/20
Page 4 .
(14) In undertaking the work referred to in the preceding
paragraph the ITO will clearly have to possess extensive
information with regard to sources terms, formsand
quality of technical assistance. It may prove desirable
to assemble information as regards sources in the form of
a register of relevant public and private entities, more
especially of consulting engineers and industrial con-
sultants. The Sub-Commiittee felt that the matter required
further consideration at the next session of the Executive
Committee (see Section V).
(15) The Sub-Committee considered that the, ITO should
take an active part in promoting technical fellowships
and other forms of assistance designed to enable less-
developed countries to augment their force of technical
personnel It should also study under Article 72, para-
graph 1(c) (iv) ways and means of promoting agreements
for the setting up of establishment for technical training.
Some delegates thought that it might prove necessary for
the ITO itself to grant fellowships as a part of its
general Programme of technical assistance. The Sub-
Committee however considered that the matter needed further
study.
(16) In connection with the general responsibiIity of
the ITO for the promotion of economic development and
reconstruction and the specific provisions of paragraph 3
of Article 10 and of Article 11 the ITO has been authorised
to take appropriate action, (including the making of
recommendations to Member Governments) towards facilitating
the international movement of capital funds, materials,
modern equipment and technology and technical and managerial
skills. The Sub-Committee did not have the opportunity
to consider the full implications of this huge task.
However, on a preliminary consideration of the matter
the Sub-Committee considered that in order to be able to
perform this task effectively it would be desirable for
the ITO to have at its disposal various whether
made by itself or by other agencies especially on the
following general subJects.
(a) world producution, requirements and trade,
including loans and trends, for selected
materials and manufactured prodcts with a
view, to assisting governments in making their
plants for new industries and general economic
development and in assessing their prospects;
(b) obstacles to the international movement
of facilities for economic development, in-
cluding investment, and the means by which
the obstacles could be overcome;
(c) the extent to which early action could be
taken to promote more equitable distribution
of materiais and equipment necessary for
economic Development and reconstruction. ICITO/EC .2/20
Page 5
(17) The Sub-Committee noted that the United Nations
Secretariat is in the course of making studies regarding
the price relationship between capital goods and primary
commodities. The Sub-Committee considered these studies,
though less wide in scope than the task placed upon ITO
in paragraph 1(d) of Article 72 of the Charter, to be
important for economic development and reconstruction.
(18) It was not possible however during the course of
this session to consider how ITO in its early stage could
best, in collaboration with the United Nations and other
inter-governmental organizations, perform the task
envisaged in paragraph 1(d) of Article 72. In Section V
it is suggested that more information might be available
at the next session of the Executive Committee.
III Structure and Finance of the ITO
(19) The Sub-Committee considered it essential that the
ITO should have a strong and competent staff selected
with due regard to the provisions of paragraph 2 of
Article 85 and with specific responsibilities in this
field. It would also be necessary to have a panel of
part-time consultants whose services could be sought in
connection with the decisions of the Organizations.
(20) The Sub-Committee was of the opinion that the first
annual Conference should consider the appointment of an
Economic Development Commission in accordance with the
provisions of Article 82 to assist the Organization in
carrying out its responsibilities.
(21) The Sub-Committee recommended that the attention
of the Interim Commission be drawn to the need for
providing funds to enable the Organization to Start at
an early date with its activities of assistance for
economic development and reconstruction. No concrete
recommendations could be made at this stage.
IV Working Relations of ITO with other
Agencies
(22) The Sub-Committee was of the view that it was
essential that there should be close coordination and
cooperation between the ITO and the other agencies con-
cerned in carrying, out the particular activities listed
in Section II and that appropriate working arrangements
should be established to this end. While the ITO
would of Course maintain direct relations with each of
the agencies concerned the Sub-Committee recognized that
many matters might have to be considered jointly by
several agencies. In view of its general interest in
economic development it would be necessary for the ITO
to make suitable arrangements to keep itself continuously
informed of the activities of other agencies. In
this connection The Sub-Committee took note of the
existence of the administrative Committee on Coordinating
which at present provides a framework for consultations ICITO/EC .2/20.
Page 6 .
between the United Nations and the Specialized Agencies
and through which the ITO would also be able to keep
itself continuously informed of the activities of other
agencies.
(23) The Sub-Committee took note of the preparation
undertaken by UNESCO of a "World Handbook of Scholarships,
Fellowships and other Forms of Assistance Available to
Persons in Countries Other than Their Own" and of the
arrangements undertaken by that and other agencies for
the dissemination of published scientific and technical
information and for promotion of scientific research.
In view of the importance of these matters to economic
development the Sub-Committee recommended that the ITO
should collaborate with these agencies which have assumed
responsibility in those fields.
V Further Activities of the Interim
Commission
(24) The Sub-Committee recommended that the Executive
Committee ask the Secretariat to provide for its next
session information as to activities of the United
Nations and Specialized Agencies which have developed
since the preparation of the Survey prepared by the United
Nations Secretariat for the Second Session of the Sub-
Commission on Economic Development. The Sub-Committee
noted that at its Second Session the Sub-Commission on
Economic Development had requested the Secretariat of the
United Nations to prepare , for its next session an
analytical study of the assistance rendered for the
promotion of economic development by the United Nations
and Specialized agencies. Therefore in order to avoid
duplicatng enquiries from the various agencies this
might form the basis of the report submitted to the
next session of the Executive Committee. The Sub-
Committee also recommended that full information should
be presented at the next session as to the activities
of the regional commissions of the Economic and Social
Council.
(25) The Sub-Committee suggested that in the interval
between the sessions Governments Members of the Interim
Commission should submit whatever information they could
make available relating to paragraph 1(ii) of the Havana
Resolution in order that this material might be considered
at the next session of the Executive Committee.
(26) The Sub-Committee considered that the Secretariat
should provide for the next session of the Executive
Committee any additional information that may be available
in relation to the particular activities listed in
Section II. The Secretariat should also consult with
other agencies concerned as to the practical working
arrangements necessary for carrying out these activities
in collaboration with them. The Secretariat should in
particular supply information with regard to any such
activities being carried on currently by other agencies,
for example, studies of the Secretariat of the United
Nations concerning factors affecting international move-
ments of capital and concerning the prices of capital
goods and primary commodities and factors affecting the
availability of capital goods for export to underdeveloped
countries. I C I TO/EC.2/20.
Page 7.
APPENDIX
LIST OF DOCUMENTS PRESENTED
BY THE SECRETARIAT
The Interim Report of the Secretariat itself is ICITO/EC.2/7
dated 16 July 1948 and contains Annexes F, H, K, L, M and N.
Annexes A, B, C, D, E, G and J were issued separately at the
same time as ICITO/EC.2/7. On 20 August ICITO/EC.2/7/Add.1
was issued indicating the distribution of Annex 0. On 23
August the supplement to the Interim Report (ICITO/EC.2/7/
Add.2) was issued together with Annex P. On 4 September
ICITO/EC.2/7/Add.3 was issued indicating the distribution of
Annex Q.
The following is a list of all the Annexes:
Annex A:Session of the Sub-Commission on Economic Develpment(E/CN.1/47)
Annex B:hird sessionof the economic and employment commission(E/790)
Annex C:ay of the TechnicleAssistance Available
Annex D:
Annex E:
Annex F:
Annex G :
Annex H:
Annex J:
Report of the First Session of the Sub- Commission
on Economic Development (E/CN.1/47)
Report of the Third Session of the Economic
and employment Commission (E/790)
A Survey of the Technical Assistance available
for Economic Development in the UniTed Nations
and the Specialized Agencies (E/CN.1/sub.3/22
and E/CN.1/Sub. 3/22/Corr. 1).
Technical Assistance rendered to Venezuela by
the United Nations (E/CN. 1/Sub. 3/W.4).
Summary Records of the Second Session of the
Sub-Commission on Economic Development
(E/CN.1/Sub .3/SR.27 to 48 inclusive ).
Note by the Secretariat on Technical Assistance
Provided by UNRRA.
Report of the Second Session of the Sub-
Commission on Economic Development (E/CN.1/61).
Note by the Secretariat on the Activities of the
International Bank for Reconstruction and
Development.
Report and Recommendations by the Secretariat of
the Economic Commission for Asia and the Far East
on training of technical personnel in the economic
field and the use of expert assistance by
governments (E/CN. 11/83). ICITO/EC .2/20
Page 8.
Annex K:
Annex L:
Annex M:
Annex N:
Annex O:
Annex P:
Annex Q:
Resolutions on Economic Development and
Technical Assistance adopted at the third
session of the Economic Commission for Europe
(30 April to 8 May) and the Economic Commission
for Asia and the Far East (1 to 12 June) and at
the first session of the Economic Commission for
Latin America (7 to 25 June 1948)
Note by the Secretariat regarding the special
functions of the United Nations with regard to
the economic development of trust and other
non-self-governing territories.
Note regarding inter-American organizations.
Note regarding The Caribbean Commission.
Economic Commission for Europe - Ad hoc
Committee on Industrial Development and Trade
Potentialities for Increased Trade and
Accelerated Industrial Development In Europe
(E/ECE/ID/2) .
Letter from United Nations Educational,
Scientific and Cultural Organization to Member
Governments on World Handbook of Scholarships,
Fellowships and Forms of Assistance
Available to Persons In Countries Other than
Their Own".
Statement by Dr. El Tanamly, Representative of
the Arab League, on "the League of Arab States
and the Economic Development of the Middle East"
made to a meeting of the Ad hoc Committee on
Proposed Economic Commission for the Middle
East on May 12, 1948 - (E/C.26/15). |
GATT Library | cs310qt1860 | Report of Sub-Committee 2 on Economic Development and Reconstruction : As amended by the Executive Committee at its Meeting on 15 September 1948 | Interim Commission for the International Trade Organization, September 16, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 16/09/1948 | official documents | ICITO/EC.2/20/Rev.1 and ICITO/EC.2/15-ICITO/EC.2/21 | https://exhibits.stanford.edu/gatt/catalog/cs310qt1860 | cs310qt1860_90060219.xml | GATT_146 | 2,950 | 19,723 | FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE ICITO /EC .2/20/Rev.1
TRADE ORGANIZATION DU COMMERCE 16 September 1948
ORIGINAL: ENGLISH
EXECUTIVE COMMITTEE
Second Session
REPORT OF SUB-COMMITTEE 2 ON ECONOMIC
DEVELOPMENT AND RECONSTRUCTION
as amended by the Executive Committee
at its meeting on 15 September 1948
(1) The Sub-Committee examined the Interim Report
prepared by the Secretariat (ICITO/EC.2/7 and ICITO/EC.2/7/
Add.1, 2 and 3) and Annexes listed therein*. In view
of the scope of the Havana Resolution and the very short
time available for consideration and discussion at the
Second Session the Sub-Committee considered that it was
not possible at this session for the Executive Committee
to prepare the report or to formulate recommendations for
the First Conference of the ITO. It was agreed that there
should be time for Members of the Executive Committee to
consider further the documents that had been prepared and
that the Secretariat should pursue further studies.
Members would then have an opportunity at the Third Session
of the Executive Committee to submit for consideration
specific proposals relating to the Resolution. It would
then be possible to prepare the report to the Conference.
This document therefore should be regarded as a brief
record of the discussions at this session and of certain
tentative conclusions which should be considered by Members
before the next session.
I Survey of Existing Activities and Facilities
(2) The Sub-Committee considered existing activities and
facilities under four headings -
(a) United Nations and Specialized Agencies .
(b) Inter- governmental organizations other than the
United Nations and Specialized Agencies.
(c) Governments.
(d) Private organizations.
(3) The Sub-Committee took note of the material submitted
by the Secretariat as listed in the appendix which seemed
adequately to summarize the available information in so far
as the United Nations and the Specialized Agencies were
concerned.
* A list of the documents presented by the Secretariat
is contained in the Appendix to this Report.
INTERIM COMMISSION
COMMISSlON INTERIMAIRE DE
UNRESTRICTED ICITO/EC.2/20/Rev. 1
page 2
(4) With regard to inter-governmental organizations other
than United Nations agencies the Sub-Committee noted that
documents had been supplied with regard to inter-American
organizations the Caribbean Commission and the Arab League.
(5) With regard to facilities provided by governrments
and private organizations the Sub-Committee took note of
the preliminary indications given by the Secretariat and
the considerable lack of information on this subject.
(6) The Sub-Committee wished to draw particular attention
to the following conclusion of the Sub-Commission on
Economic Development:
"The Sub-Commission's survey of the existing
facilities has revealed that there are several
important fields of economic development activity
in which additional assistance should be given,
if requested, such as in the fields of manufacturing
industries mining and metallurgy, power development
and public utilities, road and other inland transports
public works and building activity and mechanical
and civil engineering. The Sub-Commission is of
the opinion that every effort should be made to make
available, especially to under-developed countries,
technical assistance in these fields as well."
(7) The Sub-Committee was of the opinion that it was
most important that activities should be vigorously under-
taken in these fields. The need for activities in the
industrial field both to complement and to support those
of the FAO in the fields of agriculture, forestry and
fisheries was stressed by the FAO observer and endorsed
by the Sub-Committee. The Sub-Committee noted that both
the Economic Commission for Europe and the Economic
Commission for Asia and the Far East had set up subsidiary
bodies concerned with industrial development.
II Activities of ITO
(8) The Sub-Committee desired, in the first place, to
lay emphasis on the fact that the Havana Charter required
the ITO to take a comprehensive interest in economic
development and reconstruction. This had to be weighed
against the fact that similar broad responsibilities were
laid upon other organs of the United Nations, such as the
Economic and Social Council, and that significant work
was already being undertaken by the United Nations and
Specialized Agencies in this field. Given the limitation
of the resources of the United Nations and other inter-
governmental organizations the Sub-Committee deemed it
essential to ensure that the coming into existence of the
ITO did not result in any duplication but in a not addition
to the sum total of activities. The Sub-Committee was
therefore, of the opinion that the ITO should not undertake
any activities which are being carried out by the United
Nations or other inter-governmental organizations, unless
after consultation and careful consideration it seemed
appropriate both to the ITO and to the other organization
concerned that the particular activity should be undertaken
by the ITO. ICITO/EC .2/20/Rev. 1
page 3
(9) It was agreed that the ITO should not allocate
rigidly to itself a particular field but that it should
pay initial attention to the gap in the industrial field
indicated in paragraph (6) above.
(10) Although the activities of the ITO can be finally
determined only in the light of experience the Sub-
Committee considered it useful, even at this stage, to
form a preliminary idea of the nature of such activities
In order to indicate the probable magnitude of the task,
to enable preliminary consultations with other agencies
to be carried out on a more realistic basis, to provide
an assurance to countries interested that the Executive
Committee was fully conscious of the responsibilities of
the ITO to carry out certain positive functions and to
take possible recommendations on the further activities
of the Interim Commission.
(11) The Sub-Committee considered that special considera-
tion should be given-
(a) to the provision of technical and other
assistance or advice to Members, with due regard
to the provisions of the Havana Charter, and
(b) in the broader field of encouragement to
development, to the undertaking of studies
and to the making of recommendations regarding
the movement between countries of facilities
for economic development.
(12) In the light of the foregoing and subject to its
view expressed in Section IV below regarding relations
with other agencies the Sub-Committee reached the following
tentative conclusions regarding particular activities of
the ITO.
(13) The ITO must be prepared in the first place to carry
out its principal function under paragraph 2 of Article 10.
This may include despatch, on request, of missions of experts
or individual experts to particular countries. The ITO
should also be able to aid requesting governments to obtain
appropriate technical assistance. The experts whom the ITO
may send to particular countries could either be officials
of the ITO or specialists engaged for the purpose. The
action of the ITO will vary according to the type of request
received. In some cases the ITO will take action itself
while in others it may direct the requesting government to
other sources of assistance. For this purpose the ITO will
have to equip itself with such staff and advisers as will
enable it to be thoroughly familiar with the needs and
problems of less-developed countries and with public and
private sources of technical assistance in order, inter
alia, to be able competently to advise on the quality of
assistance available. ICITO/EC. 2/20/Rev. 1
Page 4
(14) In undertaking the work referred to in the preceeding
paragraph the ITO will clearly have to possess extensive
information with regard to sources , terms, forms and
quality of technical assistance. It may prove desirable
to assemble information as regards sources in the form of
a register of relevant public and private entities more
especially of consulting engineers and industrial consultants.
The Sub-Committee felt that the matter required further
consideration at the next session of the Executive Committee
(see Section V).
(15 ) The Sub-Committee considered that the ITO should
take an active part in promoting technical fellowships and
other forms of assistance designed to enable less-developed
countries to augment their force of technical personnel.
It should also study under Article 72, paragraph 1(c)(iv)
ways and means of promoting agreements for the setting up
of establishments for technical training. Some delegates
thought that it might prove necessary for the ITO itself
to grant fellowships as a part of its general programme of
technical assistance. The Sub-Committee however considered
that the matter needed further study.
(16) In connection with the general responsibility of the
ITO for the promotion of economic development and
reconstruction and the specific provisions of paragraph 3
of Article 10 and of Article 11 the ITO has been authorised
to take appropriate action, (including the making of
recommendations to Member Governments) towards facilitating
the movement between countries of capital funds, materials,
modern equipment and technology and technical and managerial
skills. The Sub-Committee did not have the opportunity to
consider the full implications of this huge task. However,
on a preliminary consideration of the matter the Sub-
Committee Considered that in order to be able to perform
this task effectively it would be desirable for the lTO to
have at its disposal various studies whether made by itself
or by other agencies especially on the following general
subjects.
(a) world production, requirements and trade,
including plans and trends, for selected
materiais and manufactured products with a
view to assisting governments in making their
plans for new industries and general economic
development and in assessing their prospects;
(b) obstacles to the movement between countries of
facilities for economic development, including
investment, and the means by which the
obstacles could be overcome;
(c) the extent to which early action could be
taken to promote more equitable distribution
of materials and equipment necessary for
economic development and reconstruction. ICITO/EC. 2/20/Rev. 1
page 5
(17) The Sub-Committee noted that the United Nations
Secretariat is in the course of making studies regarding
the price relationship between capital goods and primary
commodities. The Sub-Committee considered those studies,
though less wide in scope than the task placed upon ITO
In paragraph 1(d) of Article 72 of the Charter, to be
important for economic development and reconstruction.
(18) It was not possible however during the course of
this session to consider how ITO in its early stage could
best, in collaborations with the United Nations and other
inter-governmental organizations, perform the task envisaged
in paragraph 1(d) of Article 72. In Section V It is suggested
that more information might be available at the next
session of the Executive Committee.
III Structure and Finance of the ITO
(19) The Sub-Committee considered it essential that the
ITO should have a strong and competent staff selected
with due regard to the provisions of paragraph 2 of
Article 85 and with specific responsibilities in this
field. It would also be necessary to have a panel of
part-time consultants whose services could be sought in
connection with the decisions of the Organisation.
(20) The Sub-Committee was of the opinion that the first
annual Conference should consider the appointment of an
Economic Development Commission in accordance with the
provisions of Article 82 to assist the Organisation in
carrying out its positive functions.
(21) The Sub-Committee recommended that the attention
of the Interim Commission be drawn to the need for
providing funds to enable the Organisation to start at
an early date with its activities of assistance for
economic development and reconstruction. No concrete
recommendations could be made at this stage.
IV Working Regulatons of ITO with other
(22) The Sub-Committeo was of the view that it was
essential that there should be close coordination and
cooperation between the ITO and the Other agencies concerned
in carrying out the particular activities listed in
Section II and that appropriate working arrangements
should be established to this end. While the ITO
would of course maintain direct relations with each of
the agencies concerned the Sub-Committee recognised that
many matters might have to be considered jointly by
several agencies. In view of its general interest in
economic development it would be necessary for the ITO
to make suitable arrangements to keep itself continuously
informed of the activities of other agencies. In
this connection the Sub-Committee took note of the
existence of the Administrative Committee on Coordination,
which at present provides a framework for consultations
between the United Nations and the Specialised Agencies. IC ITO/EC.2/20/Rev .1
page 6.
(23) The Sub-Committee took note of the preparation under-
taken by UNESCO of a "World Handbook of Scholarships,
Fellowships and other Forms of Assistance Available to Person
in Countries Other than Their Own" and of the arrangements
undertaken by that and other agencies for the dissemination
of published scientific and technical information and for
promotion of scientific research. In view of the importance
of these matters to economic development the Sub-Committee
recommended that the ITO should collaborate with these
agencies which have assumed responsibility in these fields.
V Further Activities of
Commission
( 24 ) The Sub-Committee recommended that the Executive
Committee ask the Secretariat to provide for its next
session information as to activities of the United Nations
and Specialised Agencies which have developed since the
completion of the Survey prepared by the United Nations
Secretariat for the Second Session of the Sub-Commission on
Economic Development. The Sub-Committee noted that at its
Second Session the Sub-Commission on Economic Development
had requested the Secretariat of the United Nations to
prepare for its next session an analytical study of the
assistance rendered for the promotion of economic development
by the United Nations and Specialised Agencies. Therefore
in order to avoid duplicating enquiries from the various
agencies this might form the basis of the report submitted
to the next sessioin of the Executive Committee. The Sub-
Committee also recommended that full information should
be presented at the next session as to the activities in
the field of economic development and reconstruction of the
regional commissions of the Economic and Social Council.
(25) The Sub-Committee suggested that in the interval
between the sessions Governments Members of the Interim
Commission should submit whatever information they could
supply relating to the availability to other countries of
facilities for technical surveys or studies from private or
other sources, as described in paragraph 1(ii) of the
Havana Resolution in order that this material might be
considered at the next session of the Executive Committee in
relation to paragraph 14 of this report.
(26) The Sub-Committee recommended that the Secretariat
should provide for the next session of the Executive
Committee any additional information that may be available
in relation to the particular activities listed in
Section II. The Secretariat should also consult with
other agencies concerned as to the practical working
arrangements necessary for carrying out these activities in
such collaboration with them as may be appropriate. The
Secretariat should in particular supply information with
regard to any such activities being carried on currently by
other agencies, for example, Studies of the Secretariat
of the United Nations concerning factors affecting inter-
national movements of capital and concerning the prices of
capital goods and primary commodities and factors affecting
the availability of capital goods for export to under-
developed countries. ICITO/EC. 2/20/Rev. 1
page 7.
APPENDIX
LIST OF DOCUMENTS PRESENTED
BY THE SECRETARIAT
The Interim Report of the Secretariat itself is ICITO/EC.2/7
dated 16 July 1948 and contains Annexes F, H, K, L, M and N.
Annexes A, B, C, D, E, G and J were issued separately at
the same time as ICITO/EC.2/7. On 20 August ICITO/EC.2/7/Add.1
was issued indicating the distribution of Annex 0. On 23
August the supplement to the Interim Report (ICITO/EC.2/7/
Add.2) was issued together with Annex P. On 4 September
ICITO/EC.2/7/Add.3 was issued indicating the distribution
of Annex Q.
The following is a list of all the Annexes:
Annex A:
Annex B:
Annex C:
Annex D:
Annex :
Annex :
Annex G:
Annex H:
Annex J:
Annex K:
Report of teo First Sesssion of the Sub-Commission
on Economic Development (E/CN.1/47)
Report of the Third Session of the Economic
and Employment Commission (E/790)
A Survey of the Technical Assistance available
for Economic Development in the United Nations
and the Specialised Agencies (E/CN.1/Sub.3/22
and E/CN.1/Sub.3/22/Corr.1.).
Technical Assistance rendered to Venezuela by
the United Nations (E/CN.1/Sub.3/W.4)
Summary Records of the second Session of the
Sub-Commission on Economic Development
(E/CN,1/Sub.3/SR.27 to 48 inclusive)
Note by the Secretariat on Technical .Assistance
Provided by UNRRA.
Report of theSecond Session of the Sub-
Commission on Econmic Development (E/CN.1/61)
Note by the Secretariat on the Activities of the
International Bank for Reconstruction and
Development
Report and Recommendations by the Secretariat of
the Economic Commission for Asia and the Far East
on training of technical personnel in the Economic
field and the use of expert, assistance by
governments (E/CN.11/83).
Resolutions on Economic Development and Technical
Assistance adopted at the third session of the
Economic Commission for Europe (30 April to 8 May)
and the Economic Commission for Asia and the Far
East (1 to 12 June) and at the first session of the
Economic Commission for Latin America (7 to 25
June 1948). ICITO/EC. 2/20/Rev . 1
page 8.
Annex L:
Annex M:
Annex N :
Annex O :
Annex P:
Annex Q:
Note by the Secretariat regarding the special
functions of the United Nations with regard to
the economic development of trust and other
non-self -governing territories.
Note regarding inter-American organisations.
Note regarding The Caribbean Commission.
Economic Commission for Europe - Ad hoc
Committee on Industrial Development and Trade -
Potentialitics for Increased Trade and
Accelerated Industrial Development in Europe
(E/ECE/ID/2).
Letter from United Nations Educational,
Scientific and Cultural Organisation to Member
Governments on "World Handbook of Scholarships,
Fellowships and other Forms of Assistance
Available to Persons in Countries Other than
Their Own".
Statement by Dr. El Tanamly, Representative of
the Arab League, on "The League of Arab States
and the Economic Develment of the Middle East"
made to a meeting of the Ad hoc Conmittee on
Proposed Economic Commission for the Middle
East on May 12,1948 - (E/AC.26/15). |
GATT Library | nn053jz1797 | Report of Sub-Committee 3 on Administration : Section 1. Relations between the ITO and the United Nations, specialized Agencies, and Non-Governmental Organizations | Interim Commission for the International Trade Organization, September 10, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 10/09/1948 | official documents | ICITO/EC.2/14 and ICITO/EC.2/11-ICITO/EC.2/14 | https://exhibits.stanford.edu/gatt/catalog/nn053jz1797 | nn053jz1797_90060207.xml | GATT_146 | 21,126 | 141,668 | INTERIM COMMISSION COMMISSION INERIMAIRE DE
FOR THE INTERNATIONAL L'ORGANIZATION ICITO/EC/2/14
TRADE ORGANIZATION DU COMMERCE 10 Septembre 1948
Original: ENGLISH
Executive Committee
Second Session
Relations betwen the ITO anld the United Nations,
Specialized Agencies, and Non-Governmental
Organizations.
The Sub-Committee, in accordance with its directive
from the Executive Committee, has examined the various drafts
submitted as a basis for recommendations to be prepared by
the Interim Commission for submission to the first Annual
Conference of ITO in accordance with paragraph 2 (c), (d),
and (e) of the terms of reference of the Interim Commission.
The detailed recommendations of the Sub-Committee on
each of these drafts are set out below and drafts revised in
accordance with those recommendations are annexed to this
Report.
As regards future procedure to be followed in relation
to these drafts, the Sub-Committee consider that the objective
should be to achieve as full agreement as possible with the
organizations concerned so that the Agreements may be ratified
and cone into force with a minimum of further negotiation.
Accordingly, the Sub-Committee suggest (a) that the Executive
Committee at its current session approve first drafts, (b) that
these first drafts then be circulated to governments for
further study, (c) that with regard to the Draft Agreement
with the United Nations, the Chairman and the Executive
Secretary, and, with regard to the other drafts, the Executive. ICITO/EC.2/14
page 2
Secretary, be authorized to have further consultations with
the organizations concerned, and (d) that, insofar as further
consideration by governments or further consultations with
the other organizations may require, the drafts be re-
submitted to the Executive Committee for further consideration,
The extent to which further consultations may be necessary
subsequent to stage (d) and prior to the submission of the
drafts to the first Annual Conference can be determined at
the next Session of the Executive Committee. Finally, the
Sub-Committee, in order to avoid any misunderstanding in
this respect, wishes to emphasize that the texts submitted
for consideration are intended as drafts which will have to
be considered in due course by the first Annual Conference
and by the appropriate organs of the other organizations
concerned. They are not intended as suggestions for re-
lationships between the Interirm Commission and other
organizations. Such relationships, the Sub-Committee
consider, do not require any formal basis, No doubt as
regards such matters as liaison, exchange of information and,
when appropriate, reciprocal representation the drafts might
serve as a suitable indication for such informal relationships ,
especially in the case of the United Nations, with which the
Interim Commission will need to collaborate closely.
I. DRAFT AGREEMENT BETWEEN THE UNITED NATIONS AND ITO
The Sub-Committee make the following recommendations re-
garding the draft contained in document ICITO/EC.2/2/Add .1:
Article I
Paragraph 1. Line 2 should read "a specialized agency and
as being responsible for taking such action".
Note: The Sub-Committee felt that having regard to the broad
scope of the Havana Charter, it was inappropriate to refer to ICITO/EC.2/14
page 3
the ITO as "the specialized agency" responsible for all
appropriate action within the field of the Charter since
there were other specialized agencies which had responsibilities
for certain aspects of such matters. The text as revised
would conform to Article I of the Agreement between the FAO
and the United Nations.
Paragraph 2. In the third line, delete the words in paren-
theses "hereinafter called the Council".
Note: The Sub-Committee considered that the text of the
Agreement would be clearer if wherever reference was made to
the Economic and Social Council, its title appeared in full.
The words "Economic and Social" should, therefore, be
added before the word "Council" in Article I, paragraph 2,
article II, paragraphs 2 and 6, Article III, Article V,
Article VIII, Article XI, and Article XVIII.
Paragraphs 3 and 4. The Sub-Committee felt that the arguments
adduced in the discussion in the Executive Committee for the
deletion of paragraphs 3 and 4 were well founded. The
position of the Organization regarding political matters was
clearly set out in Article 86, paragraph 3, of the Havana
Charter and the Interpretative Notes to that Article. It
was, therefore, unnecessary and probably unwise to reproduce
in the Agreement a matter which was clearly defined in the
basic instrument of the International Trade Organization.
Article II
The Sub-Committee consider a suggestion for limiting the
scope of paragraph 1 by the deletion of the phrase beginning
"the Commissions .... may convene". The Sub-Committee felt,
however, that such a substantial variation from the usual form
of Agreement would be undesirable and that the anxieties which
had given rise to this suggestion could be met by modifying ICITO/EC.2/14
page 4
the provisions of paragraph 3 of Article VII so as to permit
the Organization and the United Nations to exempt from the
provisions of paragraph 1 of Article II such meetings at which
attendance was restricted because of the confidential nature
of the discussion.
The Sub-Committee therefore recommends that paragraph 3
of Article VII be deleted and that there be inserted in the
draft Agreement a new Article IIA reading as follows:
1. The United Nations and the Organization are subject
to certain necessary limitations for the safeguarding of
confidential information furnished to them by their
Members or others. Moreover, the Havana Charter lays
special emphasis on the highly confidential nature of
certain consultations to be undertaken by or through
the Organization.
2. Accordingly, nothing contained in this Agreement
shall be construed
(a) to require either of then to make available any
information the furnishing of which would in its
judgment constitute a violation of the confidence
of any of its Members or any other source from
which such information shall have been received,
or which would otherwise interfere with the
orderly conduct of its operations, or
(b) to give either of them the right to attend
meetings held by the other at which attendance
is restricted because of the confidential
character of the matters to be discussed. ICITO/EC.2/14
page 5
Article IV
In line 6, insert the word "social" between the words
"economic" and "cultural". This word was omitted from the
draft by inadvertence.
Paragraph 2(a). The last line should be amended to read
"organization and in so far as practicable an account of its
proposed activities and work programmes".
Paragraph 2 (b). The reference to Article XV should be to
Article XVII.
Paragraph 3. To be deleted and replaced by a new Article
I IA, see above.
Aricle XI
Paragraph 3 should be deleted in that it refers to the
internal organization of the ITO.
Paragraph 2. The reference to the Co-ordination Committee
should be to the Administrative Committee on Co-ordination
to conform to the decision of the Economic and Social
Council regarding the change of name of this Committee.
article XIV
Paragraph 1. Line 4: The word "effective" should read
"efficient". This conforms to the standard form of
agreement and the departure was due to inadvertence.
Article XV I
Paragraph 3. Add the words "and agrees to consult at the
appropriate time with the United Nations concerning suitable
arrangements for inclusion of the budget of the ITO within ICITO/EC.2/14
page 6
such a general
budget".
Paragraph 2. Add sub-paragraph (f) as follows:
"The Organization agrees to conform
as far as may be practicable to
standard practices and forms
recommended by the United Nations."
This is in conformity with Agreements with a number
of other specialized agencies.
Article XVIII
The last line should be amended to read as
follows :
"specialized agencies, inter-governmental
organizations or non-governmental organi-
zations."
Article XIX
Paragraph 2. Line 2:
Insert "shall" between the words "agreement"
and "apply".
This omission was a clerical
mistake.
ArticleXX
Line 2:
Insert the word "supplementary" between the
words "such" and "arrangements". ICITO/EC.2/14
page 7
II. Draft Agreement between the ITO and the IMF
The Sub-Committee considered it desirable to make
substantial changes in the draft submitted in document
ICITO/EC.2/2/Add.2/Rev.1 and to submit a new draft as
contained in the Appendix to this Report. In these
circumstances, no attempt has been made to list the
specific changes as is done in the case of other Agreements.
As regards the general question raised in the
preliminary discussion in the Executive Committee as to
the provisional or definitive character of the Agreement,
the Sub-Committee felt that in view of the terms of Article
VIII(3) of the revised draft dealing with the revision of
the Agreement, the point was of less importance than at
first appeared. They feel, therefore, that if the draft
of this Article is accepted by the Executive Committee,
no further question need arise on this issue.
III. Draft Agreement between the ITO and the FAO
The Sub-Committee recommends the following modifications
in the draft contained in document ICITO/EC.2/2/Add.3 :
Article I
Paragraph 2: Delete the last sentence and insert the
following new paragraph 3:
"Such consultation may be undertaken through
arrangements at the secretariat level, or through
such joint committees as may be established by
the two organizations composed of an equal number
of persons designated by each organization.
The United Nations shall be invited to designate
a representative to attend the meetings of such
committees and copies of the documents of such
committees shall be sent to the Secretary-General ICITO/EC.2/14
page 8
of the United nations for information.
Representatives of appropriate specialized
agencies of the United Nations may also be
invited to attend the meetings of such committees".
Note:
The Sub-Committee considered that provision for joint
committees which, in document ICITO/EC.2/2/Add.3, is the
subject of a special Article VI would more appropriately be
included in Article I which deals with consultation.
Article II
Paragraph 4: Line 3:For "Articles 82 and 83" read "Article
82".
Line 4: For "shall be entitled" read "may".
The last sentence of this paragraph to read as
follows :
"Similarly if FAO at any time establishes
commissions or committees, representatives of
the ITO shall be invited to attend meetings
in which it has an interest and may participate
without vote in deliberations in respect of
items of interest to it."
Article III
In the title, for "International Arrangements" read
"Intergovernmental Arrangements".
Paragraph 1(b) : For "will" read shall".
Paragraph 2(a) : The Sub-Committee recommend the following
redraft:
"2(a) FAO is recognized by ITO to be competent
within the meaning of Article 67 of the Havana
Charter and FAO shall, therefore, have the
rights and responsibilities set out therein." ICITO/EC.2/14
page 9
Note: The Sub-Committee suggest that if the Executive
Committee agree that an Article in this form be included in
the draft, it should be pointed out in the Report of the
Interim Commission to the Conference that in approving such
a provision, the Conference would be making a substantive
ruling under Article 67. The Sub-Committee consider
that it would be desirable in the interests of co-operation
between the FAO and the ITO that such a ruling be
made at the first Annual Conference.
Paragraph 2 (b): First line, for "will" read "shall".
Note: The Note above to paragraph 2 (a) applies with even
greater force to paragraph 2 (b). The Sub-Committee feel
that decisions under paragraph 3 of Article 64 to invite
inter-governmental organizations to nominate representatives
to a commodity council should normally be taken ad hoc in
relation to each particular case. In view, however, of the
special interests of FAO in relation to agricultural commodities
and for the reasons given in the preceding Note, it should be
recommended that the first Annual Conference make a
ruling in the sense of this paragraph.
Paragaph 3: The Sub-Committee recommend the following
redraft:
"3. Having regard to the special responsib-
ilities of the ITO under the Havana Charter
and to the exemptions from certain oblig-
ations therein for Members concluding
Commodity agreements in accordance with
Chapter VI of the Charter, the FAO recogn-
izes that the ITO is responsible for
procedures and principles involved in such
international commodity agreements. The ICITO/EC.2/14
page 10
ITO shall consult the FAO on all matters of
common concern in this fields."
Articles IV and V
The Sub-Committee recommend the amalgamation of these
two Articles as follows:
"FAO and ITO shall co-operate, in consultation
with the United Nations whenever appropriate,
in any studies, surveys or activities which
can be most advantageously undertaken on a
joint basis, including
(a) any studies on the relationship between
world prices of primary agricultural
commodities and manufactured products
that may be undertaken in accordance with
the functions of the ITO as set out in
Article 72, paragraph 1 (d), of the Havana
Charter; and
(b) whenever appropriate, activities directed to
the facilitation and promotion of agricultural,
industrial and general economic development."
The Sub-Committee suggest the insertion of a new Article V
on inter-secretariat relationships to read as follows:
" Article V
Inter-Secretariat Relationships
The Directors-General of FAO and ITO shall, when
appropriate, develop inter-secretariat consultations
and joint working groups for the purpose of formu-
lating and carrying out proposals for joint or
parallel secretariat studies, or formulating
proposals for reference to the governing bodies
of the respective organizations." ICITO/EC.2/14
page 11
Article VI
Following the recommendation of the Sub-Committee
regarding the incorporation of the substance of Article VI in
I, the present Article should be deleted.
Article IX
The Sub-Committee suggest the addition of a new sentence
at the end of paragraph 2 to read as follows:
"In particular, the organizations shall examine,
in consultation as necessary with the Statistical
Office of the United Nations, the desirability of
submitting to governments in appropriate cases
joint requests for statistical information."
Article XII
Delete the words "the Council of" before "Food
and Agriculture Organization".
Article XIII
For the words "the Secretary-General of the United Nations",
substitute "the Economic and Social Council".
Article XIV
For "subject' in the first line, read "open".
In the second and third lines, delete "Council of the "
before "Food and Agriculture Organization" and "Executive
Board of the" before "International Trade Organization".
Minor Modifications.
In all references to the FAO subsequent to that in
Article I, paragraph 1, delete the words "of the United
Nations". This modification affects Article II, paragraphs
1, 2, 4 and 5, Article VI, paragraphs 1 and 3, Article VII,
paragraphs 1 and 2, Article VIII, Article IX, paragraphs 1 and
2, and Articles XI, XII,XIII and XIV. ICITO/EC.2/14
page 12
IV. Draft Agreement between ITO and ILO
The Sub-Committee recommend the following modifications
in the draft contained in document ICITO/EC.2/2/Add.6 :
In the second paragraph of the Preamble, line 4, insert
commas between "organizations" and "which" and between "res-
ponsibility" and "provide".
Paragraph 1: Add the following words at the beginning of
the paragraph :
"Having regard to the provisions of Article 57 (b)
and Article 62 (b) of the Havana Charter...."
Note: The Sub-Committee felt that it was desirable by
reference to specific provisions of the Havana Charter to
indicate those aspects of inter-governmental commodity
agreements in which the ILO has a particular interest.
As in the case of a similar provision in the Draft Agreement
with FAO, the Sub-Committee suggest that it be brought to
the attention of the Conference that the approval of an
Article in these terms involves a substantive ruling
under Article 67 of the Havana Charter.
Paragraph 2 : The Sub-Committee recommend the deletion of
this paragraph.
Note : The Sub-Committee felt that the paragraph as drafted
was too sweeping in its effects and might set an embarrassing
precedent. Decisions under paragraph 3 of Article 64 to
invite inter-governmental organizations to nominate represent-
atives to a commodity council should normally be taken ad hoc
in relation to each particular case. Moreover, paragraph 2
was probably unnecessary in any event in view of the provisions
of Article I regarding consultation on matters of common
concern. ICITO/EC.2/14
page 13
Article IV
The Sub-Committee took note of the variation of this
draft Article from the standard forms of agreement in making
no provision for reciprocal representation on subsidiary
organs of either body. They understood that the view of
the Secretariat of the ILO was that the ILO would prefer
to rely upon the provisions of paragraph 4 of this Article
rather than to insert a provision in a permissive and
qualified form regarding the Executive Board such as
appeared in the original drafts for agreements between
the ITO and the IMF and FAO.
Article V
Paragraphs 1 and 2 : Delete and substitute by the following
single paragraph:
"1. The two organizations may refer to a joint
committee established by agreement between them
any question of common interest which it may
appear desirable to refer to such a committee."
Article VIII
Pargraph 2 : Add at the end the following sentence:
"In particular, the Organizations shall examine,
in consultation as necessary with the Statistical
Office of the United Nations, the desirability of
submitting to governments in appropriate cases
joint requests for statistical information."
Article X
PaRagraph 1 : A suggestion was made that this paragraph
should also refer to collaboration and liaison between the
staffs of regional offices. The Sub-Committee did not
adopt this suggestion since it considered that the Article
was broad enough to cover both headquarters and regional
offices. ICITO/EC.2/14
page 14
Article XII
Delete the reference before "the International Trade
organization" to "the appropriate body for approving the
Agreement".
V. Relations between ITO and ICAO
The Sub-Committee recommend the text contained in
document ICITO/EC.2/SC.2/2 as a basis for an exchange of
letters between the ICAO and ITO, subject to the following
modifications:
Paragraph 1, line 6 : For "the" read "their" before "annual
conferences".
Line 8: For "likely to be of common interest" read "at which
matters of common interest are scheduled for discussion".
Paragraph 2(i ) : Third sentence, redraft as follows:
"It is recognized that the administration
of customs formalities in connection with
the movement of aircraft presents a special
problem because of the speed of this mode
of transport. "
In the fourth sentence, for "not in conflict with" read
"in conformity with".
The Sub-Committee suggest that the fifth sentence be
deleted as it gives rise to difficulties of drafting and is
in any case already covered by implication in the preceding
sentence.
In the sixth sentence, revise to read as follows
"The ITO will request ICAO's participation, and
will take into account the work of ICAO in this
field, in the preparation of recommendations on
customs formalities insofar as these relate to
the carriage of goods by air." ICITO/EC.2/14
page 15
VI. International Customs Tariff Bureau
The Sub-Committee entrusted the detailed investigation
of this question to a Working Party which, in addition to
exploring the legal and administrative problems involved,
and various alternatives for their solution, also consulted
with the Director of the Bureau.
On the basis of the Working Party's Report, the Sub-
Committee submit the following recommendations
(1) On the basis of a detailed examination of this
problem by a Working Party, the Sub-Committee are of the
opinion that, if the work of the Bureau is to be maintained
without interruption, the most practicable procedure would
be that envisaged in Article 87,paragraph 3 (c), of the
Havana Charter. The Sub-Committee therefore recommends
that the Executive Secretary be directed, in
consultation with the officials of the Bureau, to
work out the details of an arrangement for bringing
the Bureau under the direct supervision of the ITO.
The arrangement so worked out would be submitted to
the Executive Committee at its next session and eventually
to the First Session of the Conference of the ITO. Under
such an arrangement, the Bureau would be financed from
the ITO budget, at least insofar as those of its Members
which are also Members of the ITO are concerned. Such a
method of financing would relieve ITO Members from further
current contributions to the Bureau. It would, however,
leave the Bureau free to collect full contributions from
other Members which were not Members of the ITO, and to
seek the payment of arrears from any Members which had
not already made such payment. ICITO/EC.2/14
page 16
(2) The Sub-Committee believed, however that at a later
stage it might be found desirable to look forward to the per-
formance of the functions of the Bureau by the ITO itself. The
Sub-Committee recommends, therefore,
that the Executive Secretary be requested to take this
possibility into consideration in the course of the
consultations referred to above, and to report to the
Executive Committee on possible means of of effecting at a
later stage a transfer of the functions and resources of
the Bureau to the ITO under paragraph 3 (b) of Article 87
of the Havana Charter.
Under the second stage it might be envisaged that the
work might still be carried on in Brussels, but the Working
Party does not feel qualified to express a view at this time as
to what arrangements should be made at such stage.
(3) The Sub-Committee was impressed by the stringent
financial difficulties in which the Bureau now finds itself, and
considered that Members of the Interim Commission would feel
that they had a substantial interest in the carrying on of the
Bureau's work without interruption. At the same time, the Sub-
Committee felt that it would not be appropriate for one body to
make detailed recommendations regarding the internal affairs of
another. The Sub-Committee did, however, feel that it would be
appropriate for the Executive Committee to give moral support to
the efforts made by the Bureau, with the assistance of the
Belgian Ministry of Foreign Affairs, to collect contributions to
the Bureau which are in arrears, and possibly to seek additional
voluntary contributions for the Bureau.*
Accordingly, the Sub-Committee recommends the following
Resolution for consideration by the Executive Committee.
*The representative of Czechoslovakia expressed the view that
it was inappropriate for the Executive Committee to make
recommendations to governments regarding their participation
in other inter-governmental organizations. ICITO/EC.2/14
page 17
DRAFT RESOLUTION
OF THE EXECUTIVE COMMITTEE OF THE INTERIM
COMMISSION FOR THE INTERNATIONAL
TRADE ORGANIZATION
REGARDING FINANCIAL ASSISTANCE TO THE
INTERNATIONAL CUSTOMS TARIFF BUREAU
AT BRUSSELS
THE EXECUTIVE COMMITTEE OF THE INTERIM
COMMISSION FOR THE INTERNATIONAL TRADE ORGANIZATION
CONSIDERING the importance of the work which
has long been and is still being performed by the
International Customs Tariff Bureau at Brussels in
translating and publishing the customs tariffs of
all the countries of the world, and
CONSIDERING the immediate financial
difficulties confronting the Bureau, which have
seriously impaired its ability to translate and
publish these customs tariffs; and
CONSIDERING that, although it has instructed
the Executive Secretary to enter into consultations
with the appropriate authorities of the Bureau
with a view to presenting to the first Conference
of the International Trade Organization proposals
for bringing the Bureau within the budget of the
International Trade Organization, nevertheless
such financial assistance as this may ultimately
provide to the Bureau will not relieve the
Bureau's present difficulties; and ICITO/EC.2/14
page 18
CONSIDERING that the efficiency of the Bureau
should be maintained on as high a level as possible
until such a time as the relationship between the
Bureau and the International Trade Organization may
be determined and brought into effect; and
CONSIDERING that the Belgian Ministry of Foreign
Affairs is charged under the 1891 Convention with the
adoption of the measures necessary for the organization
and operation of the Bureau;
RECOMMENDS to Governments Members of the Interim
Commission that they give the most careful
consideration to any appeal which may be made by the
Belgian Ministry of Foreign Affairs on behalf of
the Bureau, for the purpose of obtaining payment
of the contributions due to the Bureau, or to other
suggestions which the Ministry may make with a view
to relieving the present financial difficulties of
the Bureau. ICITO/EC.2/14
page 19
VII. Relationships with Non-Governmental Organizations
The Sub-Committee submit the following proposals
as a basis for the recommendations to be submitted by the
Interim Commission to the first Annual Conference. The
Sub-Committee feel that in general no explanation of
their proposals is required as they are self-explanatory.
The Sub-Committee does, however, wish to record the
view that the most fruitful field of collaboration will
be the consultation referred to in paragraph 4 (b).
Such consultation will enable the Organization to
benefit from the technical knowledge and experience of
the consultant organizations, and the latter to make a
constructive contribution to the technical work of the
Organization.
(1) The ITO shall take full advantage of the knowledge
and experience of non-governmental organizations
engaged in work within its purview.
(2) To this end, arrangements shall be made for
including appropriate non-governmental organizations in
a list of consultants to the ITO.
(3) The Conference of the Organization shall
accordingly adopt a list of consultant organizations"
on the recommendation of the Executive Board. Whilst
such "consultant organizations" shall be chosen in the
first instance from the Economic and Social Council list
of Organizations to which it has accorded consultative
status, the Executive Board shall include in its
recommendations any other organizations which have
special competence in the field of the ITO. In
considering the inclusion of such additional organizations,
the Executive Board shall consult as necessary with the ICITO/EC.2/14
page 20
Economic and Social Council.
NOTE: In making this recommendation, the Sub-Committee
had particularly in mind the practice of the Economic
and Social Council in excluding from its list non-
governmental organizations of a highly specialized character
on the ground that it is more appropriate for these
organizations to enter into arrangements with the
Specialized Agencies. The suggestion for consultation
with the Economic and Social Council is to facilitate
conformity with the policies of the United Nations.
(4) Consultative organizations shall have the following
facilities and responsibilities:
(a) attendance at meeting of, or arranged by,
the Organization.
Consultative organizations shall be
invited to be represented by observers at the
Annual Conferences. Wherever matters or
suggestions have been submitted to the
Conference by a consultative organization
in accordance with the arrangements set out
in paragraph (c) below and are under
discussion by the Conference, the representative
of the organization concerned may make a
statement or statements to the Conference.
On other occasions, representatives of
consultative organizations may speak at the
discretion of the Chairman of the meeting on
a matter as to which the Organization has a
special concern or competence.
At other meetings hold by or under the aegis
of the Organization, attendance of represent-
atives of consultative organizations shall be ICITO/EC.2/14
page 21
determined in accordance with the requirements
of effective consultation as provided for in
paragraph (b) below.
(b) Consultation with the organization other than
through the Conference
Where specific projects are entrusted to
subsidiary bodies of the Organization or to the
Director-GeneraI, there shall be consultation
with the consultant organization or organizations
competent in the field of such projects. In
the first instance, such consultations shall
be undertaken by the Director-General in
preparing the documentation for the subsidiary
body concerned. Such subsidiary body may,
however, consult directly with the consultant
organization concerned.
(c)Documents submitted by, and to to be furnished to,
consultant organizations
Consultant organizations shall receive all un-
restricted conference documents and such other
documents as are necessary for effective
consultation as provided for in paragraph (b)
above. Documents submitted to the Organization
by consultant organizations shall be distributed
at the discretion of the Director-General. The
Director-General shall also circulate a list of
all communications received from consultant
organizations and any document so listed shall
receive full distribution at the request of
any Member government. ICITO/EC.2/14 page 22
(5) The Director-General shall refer to the Executive
Board any difference of view between himself and any
consultant organization regarding the interpretation
or implementation of these arrangements.
(6) These arrangements shall be reviewed from time to
time and in such review, the views of the consultant
organizations shall be given full consideration.
As regards the first Annual Conference the Sub-
Committee recommend that the Executive Committee, as part of
the arrangements for convening the Conference,approve a list
of non-governmental organizations to be invited to that
Conference.
SECTION 2
Budget Estimates for the Interim
Commission for the period 1 October 1948
to 31 December 1949.
The Sub-Committee were informed by the Secretariat
that it had been necessary to make budget forecasts for
the whole of this period in order to comply with a
request from the Advisory Committee of the General
Assembly. The estimates had to take account of a number
of uncertain factors, and to be adequate to cover the
needs of the Interim Commission so far as they could be
foreseen at this date, including provision for such
secretariat services as the Executive Committee might
agree to furnish to the Contracting Parties to the General
Agreement on Tariffs and Trade on a reimburseable basis.
The budget estimates had been scaled down as far
as had been thought to be safe in relation to the forecast
of the work to be undertaken. It might be possible in
practice to reduce expenditure below the levels indicated,
and the Secretariat would make every effort in this direction. ICITO/EC.2/14.
page 23.
The Sub-Committee felt that the estimates for
common services were very high. They were informed that
the estimates had been based on the United Nations scale
of charges for such services provided to specialized
agencies. The basis of charges to the Interim
Commission had not yet been settled and discussions on
this subject were pending. In these discussions the
Secretariat intended to request reductions in certain
charges and the sub-Committee recommend that the efforts
of the Secretariat in this direction receive the support
of the Executive Committee.
The Sub-Committee considered and rejected a
suggestion by the Executive Secretary that that post be
reclassified to be equivalent to that of a director,
rather than a top-ranking director of the United Nations.
As regards the other personnel the Sub-Committee noted
that the present staff fell below the establishment approved
by the Executive Committee in Havana in that only two
Advisors out of three authorized, and three Research
Assistants out of four, were at present employed. The
Sub-Committee considered that the personnel budget was
reasonable having regard to the nature of the work at
present envisaged.
The Sub-Committee therefore recommend for approval
by the Executive Committee the budget estimates attached
as Annex B to this report. Those estimates differ from
the estimates submitted to the Sub-Committee by the
deletion of the estimates for the last quarter of 1948
of the item for Travel and Removal Expenditure of Staff ICITO/EC.2/14
page 24
Members and Dependents ($3000) and in showing the amount
deductible from the estimates in respect of services to
be rendered to the Contracting Parties ($76,000).
The Sub-Committee also recommend that the
Executive Committee instruct the Executive Secretary to
make arrangements for the auditing of the accounts of the
Interim Commission.
SECTION 3
Draft Finance and Staff Regulations for
the International Trade Oranization
On the basis of the Report of a Working Party
established to examine the finance and staff regulations,
the Sub-Committee submit the following recommendations.
A draft of the regulations amended in accordance with the
Sub-Committee's recommendations is attached as Annex C to
this Report.
The Sub-Committee recommend the acceptance of the
general principle of adapting provisionally the finance
and staff regulations of the United Nations to the circum-
stances of the ITO, introducing as few amendments as possible.
The Sub-Committee make the following recommendations
regarding the draft provided by the Executive Secretary
(document ICITO/EC.2/10): ICITO/EC.2/14
page 25
Regulation 3 should be amended to read:
"The financial year shall be the calendar year
1st January - 31st December."
Regulations 6 and 7. Although the question of the
detailed financial machinery for the Organisation was
not wholly within the terms of reference of the Sub-
Committee and would, of course, be the subject of
debate and resolution at the first Session of the
Conference, it seemed to the Sub-Committee desirable
to indicate an approach to the problem. The Sub-
Committee has therefore assumed that the Conference
will approve the establishment of an Advisory Committee,
similar to that established by the United Nations of a
limited number of independent persons meeting fairly
frequently -
(a) to examine budget estimates.
(b) to authorise such transfers between Budget
sections or advances from the Working Capital
Fund as are beyond the competence of the
Director Genaral,
(c) to advise the Conference , the Executive Board
and the Director General, upon such admini-
strative and financial questions as may be
referred to it.
(d) to examine the auditors' reports.
In the light of this principle Regulations 6 and 7
should be amended as follows (and consequential amend-
ments should be made where necessary elsewhere in the
Regulations):- ICITO/EC.2/14
page 26
"Regulation 6 - The estimates shall be submitted
to the Advisory Committee on Administration and
Finance (hereinafter referred to as the Advisory
Committee) at least 12 weeks prior to the opening
of the annual Session of the Conference. They
shall be examined by the Advisory Committee which
shall prepare a report thereon. The estimates
together with the Committee's report shall be
transmitted to all members at least 5 weeks prior
to the opening of the regular annual Session of
the Conference.
Regulation 7 - The estimates and the reports of
the Advisory Committee thereon shall be submitted
to the Conference and referred to the proper
committee for consideration and report to the
Conference."
Regulation 8 It is the understanding of the Sub-
Committee that in accordance with the provisions of
Article 77 of the Charter the budget will be debated and
appropriations voted by the Conference.
Regulation 12 It is assumed that a Working Capital
Fund will be established by a resolution of the
Conference.
Regulation 17 Amend second sentence to read:
"The Director General may at his discretion lay down
conditions under which member governments may pay part
of their contributions in other currencies to the extent
that the approved budget requires expenditures in those
currencies."
Regulation 30 The Sub-Committee accepts the proposal ICITO/EC.2/14
page 27.
in the footnote to Regulation 30 that it is desirable
to make use of the U.N. Board of Auditors if available.
They consider that in addition to carrying out the
annual audit, it would be desirable that the Board
should be able to advise the Director General on such
matters as he may refer to them from time to time.
It is recommended, therefore, that Regulation 30
should be amended to read:
"For the purpose of making annually, and at such
times as may be necessary for special purposes,
an independent audit of the funds assets and
accounts of the Organisation, the Organisation
shall so far as possible make use of the Board
of External Auditors of the Accounts of the
United Nations. The procedures governing the
audit shall be determined by a resolution of
the Conference."
(The auditing experience of the U.N. has been
utilised to form the basis of a draft resolution
on auditing procedures under this Regulation
Annex D).
Regulation 32 For "Executive Board" read "Advisory
Committee".
Regulation 2 The Sub-Committee considers that the
text of the United Nations oath of acceptance should
not be modified as suggested in the footnote to this
Regulation.
Regulation 5 Amend second sentence to read:
"They shall not communicate to any person any
unpublished information known to them by reason of ICITO/EC.2/14
page 28
their official position except as their duties
may require or by authorisation of the Director
General."
Regulation 7 The form of the U.N. text is preferred
to that of the draft.
Regulation 12 The Sub-Committee interprets the
second paragraph as in no way implying that individual
probationers should receive special treatment.
Regulation 15 The Sub-Committee interprets this
as relating to general questions affecting conditions of
service and in itself implying no obligation on the
Director General to discuss the private problems of
individuals.
Regulation 16 The Sub-Committee considers that no
recommendation regarding scales of allowances should
be made until the question has been considered fully
by the Conference. They suggest amendment of the
last words of the sentence to read:
"who shall follow in principle the scales of
remuneration of the United Nations".
Regulation 22 The Sub-Committee considers that a
maximum indemnity payable upon termination of employment
should be fixed, and recommend that the Regulation
should be amended to conform with the equivalent U.N.
Regulation.
Regulation 26 The Sub-Committee recommends that the
Organisation should be affiliated with the U.N. Pension
Scheme if it is adopted at the forthcoming General
Assembly in Paris. It suggests that these be included
in the Draft Regulations the following alternative
draft for Regulation 26:- ICITO/EC.2/14
page 29
"The Organisation shall be affiliated with the
Permanent Retirement Scheme of the United
Nations and shall apply the provisions laid
down thereby".
Regulation 28 Some members of the Sub-Committee
considered that Regulation 28 should be deleted
since the matter is academic in the absence of the
establishment of a tribunal by the U.N. Others
considered that the Article should be retained in the
Draft in order to draw the attention of the Conference
to it.
Regulation 29 Delete "without prejudice to the
acquired rights of members of the staff", and substitute
the following:-
"provided that due regard shall be paid
to the rights of members of the staff".
Regulation 30 Amend to read:
"The Director General shall inform the Advisory
Committee of such staff rules and amendments
thereto as he may make to implement these
Regulations. Whenever it considers this
necessary, the Advisory Committee shall draw
the attention of the Conference to them."
Children's allowances and education grants
The Sub-Committee agree that it is unnecessary
at this stage to make detailed provisions for these in
the text of the ITO Staff Regulations (see Regulation 16). ICITO/EC.2/14
page 30 ANNEX A
Draft Agreements modified in accordance with the
Sub-committee's recommendations.
I
Article 57 of the Charter of the United Nations
(hereinafter called the Charter) provides that
specialized agencies established by inter-governmental
agreement and having wide international responsibilities
as defined in their basic instruments in economic,
social, cultural, educational health and related
fields, shall be brought into relationship with the
United Nations.
Article 86 of the Havana Charter provides that
the International Trade Organization (hereinafter
called the Organization) shall be brought into
relationship with the United Nations as one of the
specialized agencies referred to in Article 57 of the
Charter.
Therefore the United Nations and the
Organization agree as follows :
ARTICLE I
1. The United Nations recognizes the Organization
as a specialized agency and as being responsible for
taking such action as may be appropriate under its basic
instrument for the accomplishment of the purposes set
forth therein.
2. The United Nations recognizes that certain of
the functions now performed by the subsidiary organs
of the Economic and Social Council under the supervision
of the Economic and Social Council coincide to some ICITO/EC.2/14
page 31
extent with the functions of the Organization under its
Charter. Consultation shall therefore take place as
soon as possible between the United Nations and the
Organization in order to ensure that the allocation of
functions between the Organization and the subsidiary
organs of the Economic and Social Council shall be
consistent with the provisions of paragraph 1 of this Article.
ARTICLE II
Reciprocal Representation
1. The United Nations shall be invited to send
representatives to attend the meetings of the Conference
of the Organization, the Executive Board, the Commissions
and Committees, and such general, regional or other special
meetings as the Organization may convene, and to
participate, without the right to vote, in the deliberations
of these bodies.
2. The Organization shall be invited to send representa-
tives to attend the sessions of the Economic and Social
Council and of its commissions and committees, and to
participate, without the right to vote, in the deliberations
of these bodies with respect to items on their agenda
relating to matters within the scope of its activities.
3. The Organization shall be invited to send representa-
tives to attend meetings of the General Assembly for
purposes of consultation on matters within the scope of
its activities.
4. The Organization shall be invited to send representa-
tives to attend meetings of the main committees of the
General Assembly when matters within the scope of its
activities are under discussion and to participate,
without the right to vote, in such discussions. ICITO/EC.2/14
page 32
5. The Organization shall be invited to attend the
meetings of the Trusteeship Council and to participate,
without the right to vote, in the deliberations thereof
with respect to items on the agenda relating to matters
within the scope of its activities.
6. Written statements of the Organization shall be
distributed by the Secretary-General of the United Nations
(hereinafter referred to as the Secretary-General) to the
Members of the General Assembly, the members of the
Economic and Social Council and its commissions or the
members of the Trusteeship Council as appropriate.
Similarly written statements presented by the United Nations
shall be distributed by the Director-General of the
Organization (hereinafter referred to as the Director-
General) to the Members of the Organization.
ARTICLE II (a)
Safeguards for confidential information
1. The United Nations and the Organization are subject
to certain necessary limitations for the safeguarding of
confidential information furnished to them by their
Members or others. Moreover, the Havana Charter lays
special emphasis on the highly confidential nature of
certain consultations to be undertaken by or through the
Organization.
2. Accordingly, nothing contained in this Agreement
shall be construed
(a) to require either of them to make available any
information the furnishing of which would in its
judgment constitute a violation of the confidence
of any of its Members or any other source from which
such information shall have been received, or which
would otherwise interfere with the orderly conduct of
its operations, or ICITO/EC.2/14
page 33
(b) to give either of them the right to attend meetings
held by the other at which attendance is restricted
because of the confidential character of the matters
to be discussed.
ARTICLE III
Proposal of Agenda Items
Subject to such preliminary consultation as may be
necessary, the Organization shall include on the agenda of
the Conference, Executive Board and the Commissions, items
proposed to it by the United Nations. Similarly the
Economic and Social Council and its commissions and the
Trusteeship Council shall include on their agenda items
proposed by the Conference or Executive Board of the
Organization.
ARTICLE IV
Recommendations of the United Nations
1 . The Organization having regard to the obligation of
the United Nations to promote the objectives set forth in
Article 55 of the Charter and the functions and powers of
the Economic and Social Council under Article 62 of the
Charter to make or initiate studies and reports with
respect to international economic, social, cultural,
educational, health and related matters and to make
recommendations concerning these matters to the
specialized agencies concerned, and having regard also to
the responsibility of the United Nations, under Articles
58 and 63 of the Charter, to make recommendations for the
co-ordination of the policies and activities of such
specialized agencies, agrees to arrange for the submission, ICITO/EC.2/14
page 34
as soon as possible, to the Conference, the Executive Board,
or other appropriate organ of the Organization, of all
formal recommendations which the United Nations may make to
it.
2. The Organization agrees to enter into consultation
with the United Nations, upon request, with respect to such
recommendations and in due course to report to the United
Nations the results of its consideration of such
recommendations, including any action taken by the
Organization or by its Members as a consequence thereof.
ARTICLE V
General Co-ordination
The Organization affirms its intention of co-operating
in whatever further measures may be necessary to make co-
ordination of the activities of specialized agencies and
those of the United Nations fully effective. In particular,
it agrees to participate in, and to co-operate with any
bodies which the Economic and Social Council has established
or may establish for the purpose of facilitating such co-
ordination and to furnish such information as may be
required for the carrying out of this purpose.
ARTICLE VI
Public Information
Having regard to the fact that it is essential for
the success of the Organization to enlist the support of
an informed public opinion, the Organization agrees that
it will collaborate to the fullest extent practicable
with the machinery of the United Nations for this purpose. ICITO/EC.2/14
page 35
ARTICLE VII
Exchange of Information and Documents
1. The fullest and promptest exchange of information and
documents shall be made by the United Nations and the
Organization.
2. Without prejudice to the generality of the provisions
of paragraph 1 :
(a) the Organization agrees to transmit to the United
Nations regular reports on the activities of the
Organization and insofar as practicable an account of its
proposed activities and work programmes.
(b) the Organization agrees to comply to the fullest
extent practicable with any request which the United Nations
may make for the furnishing of special reports, studies or
information, subject to the conditions set forth in
Article XVII; and
(c) the Secretary-General shall, upon request, consult
with the Director-General regarding the provision to the
Organization of such information as may be of special
interest to the Organization.
ARTICLE VIII
Assistance to the Security Council
The Organization agrees to co-operate with the
Economic and Social Council in furnishing such information
and rendering such assistance to the Security Council as
that Council may request, including assistance in carrying
out decisions of the Security Council for the maintenance or
restoration of international peace and security. ICITO/EC.2/14
page 36
ARTICLE IX
Assistance to the Trusteeship Council
The Organization agrees to co-operate with the
Trusteeship Council in the carrying out of the functions
of that Council, and in particular agrees that it will,
to the greatest extent possible, render such assistance
as the Trusteeship Council may request, in regard to
matters with which the Organization is concerned.
ARTICLE X
Non-Self-Governing Territories
The Organization agrees to co-operate with the
United Nations in giving effect to the principles and
obligations set forth in Chapter XI of the Charter with
regard to matters affecting the well-being and development
of the peoples of non-self-governing territories.
ARTICLE XI
Relations with the International Court
of Justice
1. The Organization agrees to furnish any information
which may be requested by the International Court of
Justice in pursuance of Article 34 of the Statute of the
Court.
2. The General Assembly authorizes the Organization to
request advisory opinions of the International Court of
Justice on legal questions arising within the scope of its
activities other than questions concerning the mutual
relationships of the Organization and the United Nations
or other specialized agencies.
3. When requesting the International Court of Justice
to give an advisory opinion, the Organization shall inform
the Economic and Social Council of the request. ICITO/EC.2/14
page 37
ARTICLE XII
Headquarters and Regional Offices
1. The Organization agrees to consult with the United
Nations before making any decision concerning the location
of its permanent headquarters.
2. In order that any regional or branch offices which the
Organization may establish shall, so far as practicable, be
closely associated with such regional or branch offices as
the United Nations and other specialized agencies have or
may establish, the Organization agrees to consult with the
Administrative Committee on Co-ordination.
ARTICLE XIII
Personnel Arrangements
1. The United Nations and the Organization recognize
that the eventual development of a single unified inter-
national civil service is desirable from the standpoint of
effective administrative co-ordination, and, with this end
in view, agree to develop common personnel standards,
methods and arrangements designed to avoid serious
discrepancies in terms and conditions of employment, to
avoid competition in recruitment of personnel, and to
facilitate interchange of personnel in order to obtain the
maximum benefit from their services.
2. The United Nations and the Organization agree to
co-operate to the fullest extent possible in achieving
these ends and in particular they agree to:
(a) participate in the International Civil Service
Advisory Board established for the purpose of contributing
to the improvement of recruitment and related phases of
personnel administration in all of the participating
international organizations; ICITO/EC.2/14
page 38
(b) consult together concerning other matters
relating to the employment of their officers and staff,
including conditions of service, duration of appointments,
classification, salary scales and allowances, retirement
and pension rights and staff regulations and rules with a
view to securing as much uniformity in these matters as
shall be found practicable;
(c) co-operate in the interchange of personnel, when
desirable, on a temporary or permanent basis, making due
provision for the retention of seniority and pension rights.
(d) co-operate in the establishment and operation of
suitable machinery for the settlement of disputes arising in
connection with the employment of personnel and related
matters.
ARTICLE XIV
Statistical Services
1. The United Nations and the Organization agree to strive
for maximum co-operation, the elimination of all undesirable
duplication between them, and the most efficient use of their
technical personnel in their respective collection, analysis,
publication and dissemination of statistical information.
They agree to combine their efforts to secure the greatest
possible usefulness and utilization of statistical
information and to minimize the burdens placed upon
national governments and other organizations from which such
information may be collected.
2. The Organization recognizes the United Nations as the
central agency for the collection, analysis, publication,
standardization and improvement of statistics serving the
general purposes of international organizations. ICITO/EC.2/14
Page 39
3. The United Nations recognizes the Organization as the
appropriate agency for the collection, analysis, publication,
standardization and improvement of statistics within its
special sphere, without prejudice to the right of the
United Nations, to concern itself with such statistics so
far as they may be essential for its own purposes or for
the improvement of statistics throughout the world.
4. The United Nations shall, in consultation with the
specialized agencies, develop administrative instruments
and procedures through which effective statistical co-
operation may be secured between the United Nations and
the agencies brought into relationship with it.
5. It is recognized as desirable that the collection of
statistical information should not be duplicated by the
United Nations or any of the specialized agencies whenever
it is practicable for any of them to utilize information or
materials which another may have available.
6. In order to build up a central collection of statistical
information for general use, it is agreed that data supplied
to the Organization for incorporation in its basic
statistical series or special reports should, so far as
applicable, be made available to the United Nations.
ARTICLE XV
Administrative and Technical Services
1. The United Nations and the Organization recognize the
desirability, in the interest of administrative and
technical uniformity, and of the most efficient use of
personnel and resources, of avoiding, whenever possible,
the establishment and operation of competitive or over-
lapping facilities and services among the United Nations and
the specialized agencies. ICITO/EC.2/14
page 40
2. Accordingly, the United Nations and the Organization
agree to consult together concerning the establishment and
use of common administrative and technical services and
facilities in addition to those referred to in Articles
XIII, XIV and XVI, insofar as the establishment and use
of such services may from time to time be found practicable
and appropriate.
3. Arrangements shall be made between the United Nations
and the Organization in regard to the registration and
deposit of official documents.
4. The officials of the Organization shall have the
right to use the laissez-passer of the United Nations in
accordance with special arrangements to be negotiated
between the Secretary-General and the Director-General.
ARTICLE XVI
Budgetary and Financial Arrangements
1. The Organization recognizes the desirability of
establishing close budgetary and financial relationships
with the United Nations in order that the administrative
operations of the United Nations and of the specialized
agencies shall be carried out in the most efficient and
economical manner possible, and that the maximum measure
of co-ordination and uniformity with respect to these
operations shall be secured.
2. The United Nations and the Organization agree to
co-operate to the fullest extent possible in achieving
the purposes of paragraph 1 of this Article. Accordingly
the following arrangements shall govern budgetary and
financial relationships between the United Nations and the
Organization: ICITO/EC.2/14
page 41
(a) in the preparation of budgetary estimates of the
Organization the Director-General shall consult with the
Secretary-General with a view to achieving, insofar as
practicable, uniformity in the presentation of the budgets
of the United Nations and of the specialized agencies for
the purpose of providing a basis for comparison of the
several budgets;
(b) the Organization agrees to transmit its budget
or proposed budgetary estimates to the United Nations by
1 July or such other date as may be agreed upon by the
United Nations and the Organization. The General Assembly
shall examine the budget or proposed budget of the
Organization and may make recommendations to it concerning
any item or items contained therein;
(c) representatives of the Organization shall be
entitled to participate, without the right to vote, in the
deliberations of the General Assembly or any committee
thereof or established by it at all times when the budget
of the Organization or general administrative or financial
questions affecting the Organization are under consideration;
(d) the United Nations may undertake the collection of
contributions from those members of the Organization which
are also Members of the United Nations in accordance with
such arrangements as may be defined by a later agreement
between the United Nations and the Organization;
(e) the United Nations shall, upon its own initiative
or upon the request of the Organization, arrange for studies
to be undertaken concerning other financial and fiscal
questions of interest to the Organization and to other
specialized agencies with a view to the provision of common
services and the securing of uniformity in such matters. ICITO/EC.2/14 Page 42
(f) the Organization agrees to conform as far as may
be practicable to standard practices and forms recommended
by the United Nations.
3. The Organization agrees to consult upon request with
the United Nations regarding the desirability and feasibility
of including the budget of the Organization within a general
budget of the United Nations, and agrees to consult at the
appropriate time with the United Nations concerning suitable
arrangements for inclusion of the budget of ITO within such
a general budget.
ARTICLE XVII
Financing of Special Services
1. In the event of the Organization being faced with the
necessity of incurring substantial extra expense as a result
of any request which the United Nations may make for special
reports, studies or assistance in accordance with
Articles V, VI or VII or with other provisions of this
agreement, consultation shall take place with a view to
determining the most equitable manner in which such expense
shall be borne,
2. Consultation between the United Nations and the
Organization shall similarly take place with a view to
making such arrangements as may be found equitable for
covering the costs of central administrative, technical
or fiscal services or facilities or other special assistance
provided by the United Nations.
ARTICLE XVIII
Inter-agency Agreements
The Organization agrees to inform the Economic and
Social Council of the nature and scope of any formal
agreement contemplated and to notify the Council of the ICITO/EC.2/14
page 43
conclusion of any formal agreement between the Organization
and any other specialized agencies inter-governmental
organization or non-governmental organizations.
ARTICLE XIX
Liaison
1. The United Nations and the Organization agree to the
foregoing provisions in the belief that they will contribute
to the maintenance of effective liaison between the two
organizations. They affirm their intention of taking
whatever further measures may be necessary to make this
liaison fully effective.
2. The liaison arrangements provided for in the foregoing
articles of this agreement shall apply as far as appropriate
to the relations between such branch or regional offices as
may be established by the two organizations as well as
between their central offices.
ARTICLE XX
Implementation of the Agreement
The Secretary-General and the Director-General may
enter into such supplementary arrangements for the
implementation of this Agreement as may be found desirable.
ARTICLE XXI
Revision
This Agreement shall be subject to revision by agreement
between the United Nations and the Organization.
ARTICLE XXII
Entry into Force
This agreement shall come into force on its approval
by the General Assembly of the United Nations and the
Conference of the Organization.
I I .
: I . , . I . ICITO/EC.2/14
page 44
II
Inerational Monetary Fund
The International Monetary Fund, pursuant to Article X
of its Articles of Agreement, and the International Trade
Organization, pursuant to Articles 24 and 87 of the
Havana Charter,
In view of the objectives set forth in Article 24,
paragraph 1, of the Havana Charter,
Have agreed as follows:
ARTICLE I
General
The IMF shall co-operate with the ITO in the application
of the various provisions of the Havana Charter in accordance
with the terms thereof. The Fund and the ITO shall seek to
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 ITO. In order to achieve such a
coordinated policy, the Fund, and the ITO shall co-operate in
accordance with the arrangements set forth in the following
Articles.
ARTICLE II
Consultation
1. Each organization shall, at the request of the other,
consult on the matters specifically referred to in the
Havana Charter and on other matters agreed to be of mutual
interest.
2. Either organization may initiate a consultation with
the other by giving notice thereof to the other organization,
and supplying the other organization either at that time or
as soon thereafter as possible with all relevant information. ICITO/EC.2/14
page 45
3. Each consultation shall be held as promptly as
possible in the light of whatever advance preparation
may be required in view of the nature of the question.
Where the matter involved is urgent, such as one arising
under Article 21, paragraph 5 (a) of the Havana Charter,
or a change in par value under a special exchange agreements,
or any other equally urgent matters the two organizations
undertake to give high priority to the commencement and
conclusion of the consultation. At the close of each
consultation, the organization consulted shall furnish a
report of the conclusions.
4. For purposes of consultation, the ITO and the Fund
may by agreement establish Joint Committees.
5. Whenever the situation under review calls for findings
or determinations to be made by the Fund pursuant to
Article 24, paragraph 2, of the Havana Charter, the Fund
shall communicate such findings or determinations to the
Organization in writing.
6. In pursuance of Article 24 of the Havana Charter, the
Organization shall consult the Fund on the preparation and
conclusion of a special exchange agreement between the
Organization and a Member who is not a member of the Fund,
and the Fund shall advise and consult with the Organization
on questions arising out of the operation of such an
Agreement.
ARTICLE III
Annual Reports on discriminatory
Quantitative Restrictions
The Fund shall assist and advise the ITO in the
preparation by it of the reports referred to in paragraph
1(g) of Article 23 of the Havana Charter. So far as
possible, these reports shall be coordinated with the
reports required under Article XIV, Section 4, of the
Articles of Agreement of the Fund. ICITO/EC.2/14
page 46
ARTICLE IV
Customs Valuation
In accordance with Article 35 of the Havana Charter,
the Fund and the ITO will formulate rules governing the
conversion by Members of the ITO of currencies of countries
which maintain multiple rates of exchange consistently with
the Articles of Agreement of the Fund or with special
exchange agreements, when such conversion is necessary to
determine the value of products subject to customs duties
or other charges. Such rules shall be subject to
revision by agreement between the two organizations.
ARTICLE V
Reciprocal Representation and Liaison
1. Representatives of the Fund may attend, and participate
without vote in, meetings of the Conference of the ITO.
2. Representatives of the ITO may attend, and participate
without vote in, meetings of the Board of Governors of the
Fund.
3. Appropriate arrangements shall be made by agreement
from time to time for the reciprocal representation of the
two organizations at other meetings convened under their
auspices which consider matters in which the other
organization has an interest.
4. The ITO and the Fund shall make administrative arrange-
ments to achieve close collaboration and liaison between the
staffs of the two organizations. Each organization will
establish such administrative machinery as may be necessary
to make such collaboration and liaison effective. ICITO/EC.2/ 4
ARTICLE VI
Formal Recommendations
Each organization undertakes not to present any formal
recommendation to the other, particularly under Article 77,
paragraph 5, or Article 81, paragraph 2, of the Charter,
without reasonable prior consultation with regard thereto,
unless the recommendation is made in response to a request
from the organization to which it is directed.
ARTICLE VII
Services
1. Subject to paragraph 1 of Article VIII of this
Agreement, the ITO and the Fund shall, to the fullest
extent practicable, arrange for the current exchange of
information and publications of mutual interest, and the
furnishing of special reports and studies upon request.
2. All information furnished to the ITO pursuant to
Article 24, paragraph 7, of the Havana Charter shall be
made available to the Fund.
ARTICLE VIII
MiscelIaneous
1. Any arrangements made for giving effect to the
provisions of this Agreement relating to consultation and
exchange of information shall pay due regard to the need
to safeguard confidential information and to any special
obligations in this respect of either organization.
2. The chief administrative officers of the Fund and ITO
shall make such supplementary arrangements as are necessary
or proper to carry fully into effect the provisions of this
Agreement. ICITO/EC.2/14
page 48
3. This Agreement may at any time be revised by agreement
between ITO and the Fund.
4. This Agreement may be terminated by either party thereto
on six months' written notice to the other party, and there-
upon, unless otherwise agreed, all rights and obligations of
both parties hereunder shall cease.
5.This Agreement shall come into force when it shall have
been approved by the competent authorities of the ITO and
Fund.
III
Food, and Agriculture, Organization
ARTICLE 1
Co-operation and Consultation
1. The Food and Agriculture Organization of the United
Nations and the International Trade Organization agree that,
with a view to facilitating the attainment of the
objectives of the two specialized agencies of the United
Nations and to the avoidance of unnecessary duplication
in their activities, they will act in close co-operation
with each other.
2. They will consult each other regularly in regard to
matters of common interest. In particular, ITO will consult
with FAO on food and agricultural aspects of ITO activities,
and FAO will consult with ITO on aspects of FAO activities
within the field of interest of ITO.
3. Such consultation may be undertaken through arrangements
at the secretariat level, or through such joint committees as
may be established by the two organizations composed of an
equal number of persons designated by each organization. ICITO/EC.2/14
page 49
The United Nations shall be invited to designate a
representative to attend the meetings of such committees
and copies of the documents of such committees shall be
sent to the Secretary-General of the United Nations for
information. Representatives of appropriate specialized
agencies of the United Nations may also be invited to
attend the meetings of such committees.
ARTICLE 2
Reciprocal Representation
1. Representatives of the Food and Agriculture
Organization shall be invited to attend the meetings of the
Conference of the International Trade Organization and to
participate without vote in the deliberations of the
Conference and of its Committees with respect to items on
their agenda in which the Food and Agriculture Organization
has an interest.
2. Representatives of the International Trade Organization
shall be invited to attend the meetings of the Conference of
the Food and Agriculture Organization and to participate
without vote in the deliberations of the Conference and of
its Commissions and Committees with respect to items on their
agenda in which the International Trade Organization has an
interest.
3. Representatives of the International Trade Organization
may be invited to attend meetings of the Council of the Food
and Agriculture Organization and likewise, representatives of
the Food and Agriculture Organization may be invited to the
meetings of the Executive Board of the International Trade
Organization, and in either case to participate without vote
with respect to items of common interest. ICITO/EC.2/14
page 50
4. Representatives of the Food and Agriculture
Organization shall be invited to attend meetings of any
Commissions established under Article 82 of the Havana
Charter, which may be considering matters of interest to
FAO and may be entitled to participate without vote in
the deliberations in respect to such items. Similarly,
if FAO at any time establishes commissions or committees,
representatives of ITO shall be invited to attend meetings
in which it has an interest and may participate without
vote in deliberations in respect of items of interest to
it.
5. Appropriate arrangements shall be made by agreement
from time to time for the reciprocal representation of the
Food and Agriculture Organization and the International
Trade Organization at other meetings convened under their
respective auspices which consider matters in which the
other Organization has an interest.
ARTICLE 3
Intergovernmental arrangements for agricultural
Commodities
1. As FAO, in accordance with its Constitution and its
Rules of Procedure, as amended by the 1947 Session of its
Conference, has the function of undertaking in appropriate
cases the promotion of action with respect to international
policies on agricultural commodity arrangements:
(a) FAO agrees to consult ITO on all matters in
this field of common interest.
(b) FAO shall invite ITO to be represented at meetings
of FAO bodies held to consider commodity problems. ICITO/EC.2/14
page 51
2. As ITO, in accordance with its Charter, has functions
in relation to international arrangements regarding
commodities, including agricultural commodities:
(a) FAO is recognized by ITO to be competent within
the meaning of Article 67 of the Havana Charter, and
FAO shall, therefore, have the rights and
responsibilities set out therein.
(b) ITO shall invite FAO to appoint a non-voting
representative to any Council set up under
Article 64 of the ITO Charter and concerned with
agricultural commodity arrangements.
3. Having regard to the special responsibilities of the
ITO under the Havana Charter and to the exemptions from
certain obligations therein for Members concluding
commodity agreements in accordance with Chapter VI of the
Charter, the FAO recognizes that the ITO is responsible
for procedures and principles involved in such international
commodity agreements. The ITO shall consult the FAO on all
matter of common concern in this field.
ARTICLE 4
FAO/ITO Joint Projects
FAO and ITO shall co-operate, in consultation with the
United Nations whenever appropriate, in any studies, surveys
or activities which can be most advantageously undertaken
on a joint basis, including
(a) any studies on the relationship between world
prices of primary agricultural commodities and
manufactured products that may be undertaken in
accordance with the functions of the ITO as set
out in Article 72, paragraph 1 (d), of the
Havana Charter; and ICITO/EC. 2/14
page 52
(b) whenever appropriate, activities directed to the
facilitation and promotion of agricultural,
industrial and general economic development
ARTICLE 5
Inter-Secretariat Relationships
The Directors-General of FAO and ITO shall, when
appropriate, develop inter-secretariat consultations and
joint working groups for the purpose of formulating and
carrying out proposals for joint or parallel secretariat
studies, or formulating proposals for reference to the
governing bodies of the respective organizations.
ARTICLE 6
Exchange of Information and Documents
1. Subject to such arrangements as may be necessary for
the safeguarding of confidential material, the fullest and
promptest exchange of information and documents shall be
made between the Food and Agriculture Organization and the
International Trade Organization.
2. The Director-General of the Food and Agriculture
Organization and the Director-General of the International
Trade Organization, or their duly authorized representatives,
shall, upon the request of either party, consult with each
other regarding the provision by either Organization of such
Information as may be of interest to the other.
ARTICLE 7
Personnel Arrangements
The Food and Agriculture Organization and the
International Trade Organizations agree that the measures to
be taken by them, within the framework of the general arrange-
ments for co-operation in regard to personnel arrangements to
be made by the United Nations, will include: ICITO/EC .2/14
page 53
(a) measures to avoid competition in the recruitment
of their personnel; and
(b) measures to facilitate interchange of personnel on
a temporary or permanent basis, in appropriate cases,
in order to obtain the maximum benefit from their
services, making due provision for the retention of
seniority and pension rights.
ARTICLE 8
Statistical Services
1. The Food and Agriculture Organization and the
International Trade Organization agree to strive, within the
framework of the general arrangements for statistical co-
operation made by the United Nations, for maximum co-operation
with a view to the most efficient use of their technical
personnel in their respective collection, analysis,
publication, standardization, improvement and dissemination
of statistical information. They recognize the desirability
of avoiding duplication in the collection of statistical
information whenever it is practicable for either of them to
utilize information or materials which the other may have
available or may be specially qualified and prepared to
collect, and agree to combine their efforts to secure the
greatest possible usefulness and utilization of statistical
information and to minimize the burdens placed upon national
governments and other organizations from which such
information may be collected.
2. The Food and Agriculture Organization and the
International Trade Organization agree to keep one another
informed of their work in the field of statistics and to
consult each other in regard to all statistical projects
dealing with matters of common interest. In particular, ICITO/EC. 2/14
page 54
the organizations shall examine, in consultation as necessary
with the Statistical Office of the United Nations, the
desirability of submitting to governments in appropriate
cases joint requests for statistical information
ARTICLE 9
Financing of special Services
If compliance with a request for assistance made by
either Organization to the other would involve substantial
expenditure for the Organization complying with the request,
consultation shall take place with a view to determining the
most equitable manner of greeting such expenditure.
ARTICLE 10
Implementation of the Agreement
The Director-General of the Food and Agriculture
Organization and the Director-General of the International
Trade Organization may enter into such supplementary
arrangements for the implementation of this arrangement as
may be found desirable in the light of the operating
experience of the two Organizations.
ARTICLE 11
Entry into Force
This arrangement shall come into force on its approval
by the Food and Agriculture Organization and the International
Trade Organization.
ARTICLE 12
Notification to the United Nations
The Food and Agriculture Organization and the Inter-
national Trade Organization will inform the Economic and
Social Council of the terms of the present Memorandum.
ARTICLE 13
Revision and Termination
This arrangement shall be open to revision or
termination provided that such action be approved by the
Food and Agriculture Organization and the International
Trade Organization. ICITO/EC. 2/14
page 55
IV
International Labour Organization
WHEREAS the Constitution of the International Labour
Organization pledges the full co-operation of the Inter-
national Labour Organization with such international bodies
as may be entrusted with a share of the responsibility for
securing the fuller and broader utilization of the world's
productive resources necessary for the achievement of the
objectives set forth in the Declaration of Philadelphia,
including measures to expand production and consumption, to
avoid severe economic fluctuations, to promote the economic
and social advancement of the less developed regions of the
world, to assure greater stability in world prices of primary
products, and to promote a high and steady volume of inter-
national trade; and
WHEREAS the Charter for an International Trade Organiza-
tion (a) provides that the International Trade Organization
shall make arrangements with other inter-governmental organi-
zations, which have related responsibilities, to provide for
effective co-operation and the avoidance of unnecessary
duplication in the activities of these organizations, (b)
envisages the participation of the International Trade
Organization in arrangements concerning employment and economic
activity made or sponsored by the Economic and Social Council
of the United Nations, including arrangements with appropriate
inter-governmental organizations, and (c) specifies that in
all matters relating to labour standards that may be referred
to the International Trade Organization it shall consult and
co-operate with the International Labour Organization. ICITO/EC.2/14
page 56
THE INTERNATIONAL LABOUR ORGANIZATION AND THE INTER-
NATIONAL TRADE ORGANIZATION AGREE AS FOLLOWS:-
ARTICLE I
Co-operation and Consultation
The International Labour Organization and the Inter-
national Trade Organization agree that, with a view to
facilitating the effective attainment of the objectives set
forth in the Constitution of the International Labour Organi-
zation and the Havana Charter within the general framework
established by the Charter of the United Nations, they will
act in close co-operation with each other and will consult
each other regularly in regard to matters of common interest.
Without prejudice to the generality of the foregoing, the
two Organizations recognise the importance of their
co-operating, within their respective spheres and consistently
with the tems and purposes of their basic instruments, in
concerted action to sustain employment production and demand
and to foster and assist industrial and general economic
development, as well as the reconstruction of those countries
whose economies have been devastated by the war.
Consultation upon Matters Relating to Labour Standards
Referred to the International Trade Organization under
Chapter VIII of the Havana Charter
Having regard to the provisions of paragraph 3 of
Article 7 of the Havana Charter, the Director-General of the
International Trade Organization shall notify the Director-
General of the International Labour Office of any matter
relating to labour standards that may be referred to the
former Organization in accordance with the provisions of ICITO/EC.2/14
page 57
Chapter VIII of the Havana Charter. The two Organizations
shall thereupon consult together with a view to reaching
agreement on the procedure to be followed in dealing with
the matter.
ARTICLE III
International Commodity Agreements
Having regard to the provisions of Article 57 (b) and
Article 62 (b) of the Havana Charter, the International Trade
Organization recognises the International Labour Organization
to be a competent inter-governmental organization within the
meaning of Article 67 of the Havana Charter.
ARTICLE IV
Reciprocal Representation
1. Representatives of the International Trade
Organization shall be invited to attend the meetings of the
International Labour Conference and to participate without
vote in the deliberations of the Conference and of its
committees with respect to items on their agenda in which
the International Trade Organization has an interest.
2. Representatives of the International Labour
Organization shall be invited to attend the meetings of the
Conference of the International Trade Organization and to
participate without vote in the deliberations of the
Conference and of its committees with respect to items on
their agenda in which the International Labour Organization
has an interest.
3. Representatives of the International Labour
Organization shall be invited to attend the meetings of
any commissions established by the International Trade
Organization in pursuance of Article 82 of the Havana
Charter to deal with matters concerning which the ICITO/EC .2/14
Page 58
International Labour Organization has special competence
and to participate without vote in the deliberations upon
such matters.
4. Appropriate arrangements shall be made by agreement
from time to time for the reciprocal representation of the
two Organizations at other meetings convened under their
auspices which consider matters in which the other
Organization has an interest.
ARTICLE V
Joint Committees
1. The two Organizations may refer to a joint committee
established by agreement between them on any question of
common interest which it may appear desirable to refer to
such a committee.
2. The United Nations shall be invited to designate a
representative to attend the meetings of any such joint
committee.
3. The reports of any such joint committee shall be
communicated to the Directors-General of the two
Organizations for submission to the appropriate bodies
of the Organizations.
4. Copies of the documents of any such joint committees
shall be communicated to the Secretary-General of the United
Nations for information.
5. Any such joint committee shall regulate its own
procedure.
ARTICLE VI
Exchange of Information and Documents
Subject to such arrangements as may be necessary for
the safeguarding of confidential material, the fullest and ICITO/EC .2/14
page 59
promptest exchange of information and documents shall
be made between the International Labour Organization and
the International Trade Organization.
ARTICLE VII
Personnel Arrangements
The Director-General of the International Labour
Office and the Director-General of the International Trade
Organization shall take measures, within the framework of the
general arrangements for co-operation in regard to personnel
arrangements to be made by the United Nations, to avoid
competition in the recruitment of their personnel, and to
facilitate interchange of personnel on a temporary or
permanent basis in appropriate cases, in order to obtain
the maximum benefit from their services, making due
provision for the retention of seniority and pension rights.
ARTICLE VIII
Statstical Services
1. The International Labour Organization and the
International Trade Organization agree to strive, within
the framework of the general arrangements for statistical
co-operation made by the United Nations, for maximum
co-operation with a view to the most efficient use of their
technical personnel in their respective collection,
analysis, publication, standardization, improvement and
dissemination of statistical information. They recognize
the desirability of avoiding duplication in the collection
of statistical information whenever it is practicable for
either of them to utilise information or materials which ICITO/EC. 2/14
page 60
the other may have available or may be specially qualified
and prepared to collect, and agree to combine their efforts
to secure the greatest possible usefulness and utilization
of statistical information and to minimise the burdens
placed upon national Governments and other organizations
from which such information may be collected.
2. The International Labour Organization and the
International Trade Organization agree to keep one another
informed of their work in the field of statistics and to
consult each other in regard to all statistical projects
dealing with matters of common interest. In particular,
the Organizations shall examine in consultation as
necessary with the Statistical Office of the United Nations,
the desirability of submitting to governments in appropriate
cases joint requests for statistical information.
ARTICLE IX
Financing of Special Services
If compliance with a request for assistance made by
either organization to the other would involve substantial
expenditure for the organization complying with the request
consultation shall take place with a view to determining
the most equitable manner of meeting such expenditure.
ARTICLE X
Implementation of the Agreement
1. The Director-General of the International Labour
Office and the Director-General of the International Trade ICITO/EC .2/14
page 61
Organization shall make administrative arrangements to
ensure the closest possible collaboration and liaison
between the staffs of the two Organizations.
2. The Director-General of the International Labour
Office and the Director-General of the International
Trade Organization may enter into such supplementary
arrangements for the implementation of this Agreement as
may be found desirable.
ARTICLE XI
Revision and Termination
I. This Agreement may be revised by agreement
between the International Labour Organization and the
International Trade Organization. It shall be reviewed
as soon as possible after the expiry of three years from
the date of its entry into force.
2. This Agreement may be terminated by either party
on the thirty-first day of December of any year by written
notice given to the other party not later than the
thirtieth day of September of that year.
ARTICLE XII
This Agreement shall come into force upon its
approval by the Governing Body of the International Labour
Office and the International Trade Organization. ICITO/EC.2/14 page 62
V
International Civil Aviation Organization
1. In the first instance, and subject to reconsideration
in the light of experience, it should not be necessary for
ITO and ICAO to enter into a formal agreement of relation-
ships, it being understood that the two organizations will
afford to each other the right to be represented at their
annual conferences as well as at any other meetings at
which matters of common interest are scheduled for discussion,
and that they will exchange such of the documentation of
each organization as would be of interest to the other.
The working relationships of the two organizations could
be adequately covered by a common understanding on the
points set out in 2.
2. Articles 33, 36, and 53 of the Havana Charter are
of interest to ICAO:
(i) Articles 33 and 36. The ITO has general
responsibility for promoting "international
agreement relating to the simplification of
customs regulations concerning traffic in
transit" (Article 33, para. 6) and for "the
simplification and standardization of customs
formalities and techniques" (Article 36,
para. 4). Similar provisions are contained
in the International Civil Aviation Convention
with specific reference to aviation in
Articles 22 and 23; it is recognized that the
administration of customs formalities in
connection with the movement of aircraft
presents a special problem because of the ICITO/EC. 2/14
page 63
speed of this mode of transport. The
"facilitation program" of ICAO in
implementation of Articles 22 and 23 of the
International Civil Aviation Convention is
therefore in conformity with the general
objectives of the ITO as described in
Articles 33 and 36. ITO will request ICAO's
participation and will take into account the
work of ICAO in this field, in the prepara-
tion of recommendations on customs formalities
insofar as these relate to the carriage of
goods by air. ICAO will likewise request
ITO's participation in the formulation of any
recommendations affecting the matters covered
in Articles 33 and 36 of the Havana Charter
that may be drawn up by ICAO in accordance
with Articles 22 and 23 of the International
Civil Aviation Convention. ICAO, in the
formulation of any such recommendations, shall
take account of any general recommendations
formulated by ITO in carrying out its
responsibilities under Articles 33 and 36 of
the Havana Charter.
( ii ) Article 53, para. 3. In the event that under
Article 53, para. 3 of the Havana Charter,
there is referred to ITO a matter affecting
civil aviation, ITO will confer with ICAO in
determining whether ICAO is "the appropriate
intergovernmental organization" to which the
matter should be transferred. In the event ICITO/EC. 2/14
page 64
that the matter is so transferred, ICAO
will take due account of such observations
as ITO may make in accordance with Article
53, para. 3, and will afford ITO an
opportunity to participate in the investi-
gation of the matter by ICAO.
3. Articles of the Havana Charter other than those
cited above may raise problems of common interest,
although these cannot at present be foreseen. ITO will
consult with ICAO if such problems should arise. Like-
wise, ICAO will consult with ITO if in carrying out its
responsibilities under the International Civil Aviation
Convention ICAO is concerned with problems of interest
to ITO. ICITO/EC .2/14
page 65.
ANNEX B
BUDGET ESTIMATES FOR 1948 AND 1949
Budget estimate for 1948:
The figures for the period April-July 1948 are
based as far as possible on actual expenditure during
that period; in view of the fact that no definite
arrangement has been yet arrived at with the United
Nations as to the basis for reimbursement of common
services, a certain number of items are estimates based
on the list of charges contained in the draft memorandum
of agreement reproduced in the Annex attached hereto.
The figures for August to December 31 are estimated
expenditures.
Budget estimate for 1949:
Budget estimates for 1949 incorporate the estimated
expenditure connected with secretariat services to be
furnished to the Contracting Parties on a reimbursable
basis. It has not been possible to make separate
detailed estimates for all items in connection with the
Contracting Parties. A lump sum including identifiable
items and other calculated on a percentage basis appears
as reimbursable by the Contracting Parties and therefore
deductible from the total estimated liabilities of the
Interim Commission.
Separate accounts will be kept in respect of services
rendered to the Contracting Parties and these accounts
will be used as a basis for claiming reimbursement. ICITO/EC.2/14
page 66.
BUDGET ESTIMATES
Estimates
for the period April
- July 1948
Established posts
$ 22,413.-
Other expenses for
personnel
3,360.-
Experts and consultants)
Temporary assistance
)
1,000.-
Travel and Removal Expenditure
of Staff Members and Dependents
Travel and Official Business
Cables, Telegraph, Wireless
Communications and Long
Distance Telephone
Printing
20,000.-
500.-
500.-
3,500.-
Air Freight)
Freight,
Cartage
and Express
)
Hospitality
Common Services
150.- 10,000.- 64,423
Total April
- July 64,423
AuguSt-September 1948
Established Posts
Other expenses for
18,398.-
personnel
Experts and consultants
Temporary Assistance
Over time
Travel and Removal Expenditure
Staff Members and Dependents
of
2,000.-
Travel on Official Business
Cables, Telegraph, Wireless
Communications and Long
Distance
Printing
Freight,
Telephone
Cartage,
Express
Air Freight
Hospitality
Common Services
400.-
1,400.-
)
800.-
280.-
33,261.-
1948
3,000.-
150. -
400. -
200.-
33, 261.-
. ICITO/EC. 2/14
page 67.
August-September
( cont.)
brought
Executive Committee
forward August-September
ICITO (22 days)
33,261.-
- 12,364
GATT/CP
(20 days)
- 10, 680
October,
November,
December.1948
Established
Other
Posts
expenses
$ 27,460.-
for personnel
Experts
and Consultants
Temporary Assistance
Overtime
Travel and Removal Expenditure
Staff Members and Dependents
Travel on Official
Business
Cables, Telegraph, Wireless
Communications and Long
Distance Telephone
Printing
Freight,
Cartage and Express
Air Freight
Hospitality
Common Services
Total October-December
54,236.-
Unforeseen
83, 526.-
193,49.0-
Note: The expenditure
advances authorized by
for 1948
is covered by
two
the Advisory Committee on
Administrative and Budgetary Questions
of the United
Nations
($86,490
plus $110,000,
giving a
total of
$196,490).
Budget estimates for 1949.........
23, 044. -
56,305
600. -
1,800.-
300.-
3,000.-
4,500.--
600.-
2,100.-
)
1,200.-
8,138. -
54,236
Total......... ICITO/EC.2/14
page 68.
BUDGET ESTIMATES 1949
SALARIES, WAGES &OTHER PAY ITEMS
Established Posts
Experts and Consultants
Temporary Assistance
Over time
113,413.00
2, 500.00
7,000.00
1,000.00
123,913.00
STAFF EXPENSES
Travel on Official Business
Hospitality
10,000.00
1,000.00
11,000.00
MEETINGS
Meetings of the
Meetings of the
Parties
Exec.Cttee.
(20 days)
Contract.
22, 500.00
48,000.00
70,500.00
OTHER EXPENSES (Direct Charges)
Communications
Air freight
Printing
Information services
Freight, cartage and express
5,000 .00
2, 500.00
12,000 .00
10,000.00
5,000.00
34,500.00
COMMON STAFF COSTS
Termination Pay and Commutation
of Annual Leave
Reimbursement of National
Income Taxat.
Staff Provident Fund Contribu-
tions & Staff Ret. fund
Medical & Group Life Insurance
Contributions
Expatriation Allowances
Indemnity and Compassionate
payments and Ex Tratia Payments
Workmen' s Compensation
Children's allowances, Education
Grants and Related Travel
Daily living allowances
Home leave
1, 500.00
2,000.00
7,000.00
1,500.00
6 , 000. 00
1, 500.00
125.00
1,000.00
1,000.00
4,000 .00
25,625.00
COMMON SERVICES
Office Rooms
Documents Reproduction &
Distribution
Translations
Other Services
(Stationery, personnel,
accounting, office machines,
etc.)
UNFORESEEN
(10%)
5,475.00
19, 980.00
7,500.00
47,955.00
313,493 .00
31,350.00
Gross total 344,843.00
Deduction for reimbursement by Contracting
Parties for secretariat services
76,000.00
Nett Total
15,000.00 47,955.00
268, 843.00 ICITO/EC. 2/14
page 69
BUDGETARY JUSTIFICATIONS
Salaries,Wages and Other Pay Items
Established Posts
No. of Grade
Posts
1 Executive Secretary
1 Deputy Executive
Secretary
1 Special Assistant
3 Advisers
1 Information Officer
4 Research Assistant
1 Administrative
Assistant
3 Secretaries
4 Stenographers
1 Junior Stenographers
20
Salary Range
$11, 000-plus
$ 3,000 Rep Allow
10,000
9,200
7,450 -
6 ,700 -
5,450-
3,970 -
2,890 -
2,610 -
2,130 -
- plus
Rep Allow
10,300
9, 200
7,450
5,450
3,970
3 , 570
2,890
Expenditure
for 1949
$14,000.-
10,000. -
9,200.-
23,122.-
7,350.-
22,312
9,647.-
11,370.-
2,262.-
$113,413. -
Experts and Consultants - $2,500. -
Consultants may be necessary in order to carry out
efficiently the functions of the Interim Commission; it
might for example be advisable to have expert advice on the
administrative organisation and structure of the secre-
tariat of the future ITO.
Temporary Assistance - $7,000.-
It will be necessary to recruit personnel on a tem-
porary basis to provide for the replacement of staff on
annual and sick leave, and for assistance during peak
periods; in view of the small number of established posts,
it will probably be necessary to engage a few secretaries
during the meetings, precis-writers for taking the summary
records of the meetings and additional staff during the
period of tariff negotiations. ICITO/EC. 2/14
page 70
Overtime - $1, 000.-
It is anticipated that it will be impossible to
completely eliminate overtime work; therefore it is
estimated on the basis of 26 overtime periods of 4 hours
each for 9 entitled posts; this estimate may be revised
in the light of the experience gained during the present
meeting of the Executive Committee and of the Contracting
Parties.
Staff Expenses
Travel on Official Business - $10,000.-
This figure is the same as the amount allocated for
1948 on an annual basis.
Hospitality - $1, 000.-
The amount shown is based upon the expectation that
senior members of the staff will be required to consult with
Governments and other specialized agencies. In many cases,
discussions are held in informal meetings with various
specialists which require hospitality.
Meetings
The costs of the meeting of the Executive Committee
have been based on the list of charges contained in Annex i;
the total number of days is estimated at 20; for the
meetings connected with the Contracting Parties, the figures
of Annex II have been reproduced.
Other Expenses
Communications - $5,000.-
This figure would cover expenditure in connection with
cables, telegraph, wireless communications and long distance
telephone . ICITO/EC . 2/14
page 71.
Air freight $2,500.
Estimated at nominal figure.
- $12,000.-
This is based on contractual printing of 300
text pages in English and French (1500 copies each)
at an average cost of approximately $1.30 per copy.
Information services- $10,000.-
This figure is purely indicative as the
Executive Committee has not yet taken a decision
on the possible development of information services
of the Secretariat.
Common Staff Costs
Termination Pay and Commutation of Annual Leave-
$1, 500.-
This item has been inserted to provide for the
possible termination of some contracts, if the ITO
were to commence its operations during 1949. Staff
members terminated by the Interim Commission would
receive under certain conditions termination pay
of at least one month. Payment is made for accrued
annual leave regardless of the circumstance of the
separation.
Reimbursement of National Income -Taxation -$2,000.-
This item has to be maintained in the budget
in spite of the transfer to Geneva as it is
understood that U.S. nationals remain liable to
income taxation so long as they have not transferred
their domicile. ICITO/EC.2/14
page 72
Staff Provident Fund and Staff Retirement Fund contributions
An estimate amounting to 6% of the established posts
has been entered in order to confirm with the staff
regulations in force in the U.N. Secretariat; moreover
the ICITO Secretariat may have to continue U.N. contribution
to Staff Retirement Fund with respect to some members of
the staff who had contracts with the U.N., this liability
could be covered by a transfer from another budget item.
Daily Living Allowances - $1,000 .-
This amount would cover the daily living allowances for
new incumbents if vacancies are filled during 1949.
Home Leave
The ICITO may have to contribute to the expenditure
incurred in connection with home leave for some members of
the staff who had acquired rights in this connection while
they were serving with the U.N. Secretariat.
Common Services
Office romms -$5,475.-
This figure is based on 15 standard units in Geneva and
Lake Success at the rate indicated in Annex I; this would
provide about 10 - 12 offices for a staff of 20.
Documents Reproduction and Distribution - $ 19,980.-
This estimate is based on a figure of 1500 pages in
each language (English and French). The rates are those
contained in Annex 1.
Translation-$7,500.-
This estimate is based on translation of 1500 pages.
Other Services $ 15,000.-
estimated at nominal figure, There has not yet been any
definite arrangement as to the basis for reimbursement of
administrative services furnished by U.N. Secretariat. This
estimate also includes the cost of storing documents belonging
to the Secretariat which have not been transferred to Geneva. ICITO/EC . 2/14
page 73.
ANNEX
DRAFT MEMORANDUM OF AGREEMENT BETWEEN THE UNITED NATIONS
AND THE INTERIM COMMMISSION OF THE INTERNATIONAL TRADE
ORGANISATION REGARDING THE MEETINGS OF THE ICITO TO BE HELD
IN GENEVA FROM 25 AUGUST 1948 TO 14 SEPTEMBER 1948 (APPROX)
1. The United Nations agrees that the ICITO meetings shall
be held at the Palais des Nations commencing Wednesday,
25 August l948.
The expected closing date of the
meeting is 14 September 1948,
2. Upon receiving adequate notice from the ICITO, the
United Nations will make every effort to provide such
conference service requirements as ICITO may request.
In particular, the United Nations will provide
facilities as stated in the schedule below.
The
figures i n the second column of the schedule indicate
the extent to which these facilities will probably be
required, but it is recognised by both parties that the
actual requirements may depend on the course of the
proceeding, of the Confererce.
3. The ICITO agrees to reimburse the United Nations Head-
quarters in United states dollars within sixty (60)
days of receipt of the United Nations claim for such
services as it provides, at the rates specified in the
third column of this schedule
Type of Service
of Facility.
Large Conference
Room
2 Sub-Committee
Rooms
Office Rooms
Probable
30 Meetings
30 Meetings
(Total)
32 Rooms
Reimbursement
Rate
$24 per meeting
$ 6 per meeting
$1 per day per
standard unit ICITO/EC.2/14
page 74.
Type of Se vice of Facility
Stencil Cutting
Documents
Reproduction
Consecutive
Interpretation*
Hotel Reservations
Translation
Distribution and
Documents Control
Probable
Requirements
762 Stencils
(during session)
895,350
impressions
60 meetings
60 Delegates
381 pages E/F
Approximately
6 extra staff
Grade 3 for
21 days
Reimbursement
Rate
$.90 per stencil
$4.20 per thousand
impressions
$21.50 per inter-
preter per meeting
$.50 per reserva-
tion
$5 per page
$11 per day per
staff member
Supplies issued Replacement cost
(stationery etc.) to UN plus 5%
overhead
* Additional cost will be incurred to meet the
proportional charge of travel and perdiem of inter-
preters sent from Headquarters to Geneva for the
purpose of this and other conferences.
ICITO will also reimburse United Nations for any extra
costs it may incur in services other than those
specified above including overtime services provided
at the written request of ICITO. ICITO/EC . 2/14
page 75.
ANNEX C
DRAFT PROVISIONAL FINANCIAL REGULAT IONS
FOR THE INTERNATIONAL TRADE ORGANISATION
SCOPE AND APPLICATION
Regulation 1
These regulations shall be cited as the Provisional
Financial Regulations. They shall become effective as
from the date of their approval by the Conference of the
Organisation (hereinafter referred to as "the Conference"
and the "Organisation" respectively.
Regulation 2
These regulations shall govern the financial
administration of the International Trade Organisation.
THE FINANCIAL YEAR
Regulation 3
The financial year shall be the calendar year,
1 January to 31 December.
THE BUDGET
Regulation 4
The Director-General shall submit to the regular
annual session of the Conference estimates for the
following financial year. He may also submit such
supplementary estimates as may be deemed necessary for the
current financial year. ICITO/EC.2/14
page 76.
ANNEX D to
REPORT OF SUB-COMMITTEE 3 ON ADMINISTRATION
DRAFT PROVISIONAL FINANCIAL REGULATIONS
FOR THE INTERNATIONAL TRADE ORGANIZATION
SCOPE AND APPLICATION
Regulation 1
These regulations are established in accordance with
the provisions of Article 85 of the Havana Charter for an
International Trade Organization (hereinafter referred to
as " the Charter" and the "Organization" respectively), and
shall be cited as the Provisional Financial Regulations.
They shall become effective as from the date of their
approval by the Conference of the Organization (hereinafter
referred to as "the Conference").
Regulation 2
These regulations shall govern the financial administra-
tion of the International Trade Organization.
THE FINANCIAL YEAR
Regulation 3
The financial year shall be the calendar year, 1 January
to 31 December.
THE BUDGET
Regulation 4
The Director-General shall submit to the regular annual
session of the Conference estimates for the following
financial year. He may also submit such supplementary
estimates as may be deemed necessary for the current
financial year.
MT/53/48 ICITO/EC . 2/14
page 77.
Regulation 5
The estimates submitted to the Conference shall be
divided into parts, sections and chapters, and shall be
accompanied by:
(a) A detailed statement of the estimated
expenditure provided for under each chapter
and each item of a chapter;
(b) A statement of the estimated miscellaneous
or other income under appropriate headings;
(c) An explanatory statement with regard to
the expenditures proposed in connection with
any new activity or any extension of an
existing activity;
(d) A statement of the estimated expenditure
of the current financial year, and the
expenditures of the last completed financial
year.
Regulation 6
The estimates shall be submitted to the Advisory
Committee on Administrative and Finance (hereinafter
referred to as the "Advisory Committee"), at least twelve
weeks prior to the opening of the annual session of the
General Assembly. They shall be examined by the Advisory
Committee, which shall prepare a report thereon. The
estimates, together with the Committee's reports shall be
transmitted to all Members at least five weeks prior to the
opening of the regular annual session of the General
Assembly. ICITO/EC .2/14
page 78.
Regulation 7
The estimates and the reports of the Advisory
Committee thereon shall be submitted to the Conference and
referred to the proper Committee for consideration and
report to the Conference.
Regulation 8
The adoption of the budget shall constitute an
authorization to the Director-General to incur obligations
and make expenditures for the purposes for which appro-
priations have been voted and up to the amounts so voted.
The appropriations shall be available for obligations
in respect of goods supplied and services rendered in the
financial year to which the appropriations relate.
The Director-General shall make allotments in writing
from the appropriations as voted by the Conference and under
such further sub-headings as may appear appropriate and
necessary, before obligations are incurred thereunder.
TRANSFERS WITHIN APPROPRIATIONS
Regulation 9
Transfers by the Director-General within the total
amount appropriated under the estimates may be made to the
extent permitted by the terms of the budget resolution
adopted by the Conference.
AVAILABILITY OF APPROPRIATIONS AT
THE CLOSE OF THE FINANCIAL YEAR
Regulation 10
Appropriations shall remain available to the extent
that they are required to meet the outstanding obligations
NOTE:
Regulation 10: The proposed regulation, based entirely on the
United Nations' text, establishes the accounting system to
be used by the Organization. This system, usually called
"obligations incurred method", is followed by the United
Nations, ICAO, UNESCO and has been proposed for the WHO.
Other specialized agencies as a rule follow the "cash method". ICITO/E C.2/14
page 79.
as at 31 December represented by goods supplied and services
rendered up to and including that date.
Regulation 11
The balance of appropriations shall be surrendered in
accordance with the provisions of Regulation 14, Out-
standing obligations not represented by goods supplied or
services rendered up to and including 31 December shall be
a charge to the appropriations of the succeeding year.
PROVISION OF FUNDS
Regulation 12
The appropriations subject to the adjustments to be
effected in accordance with the provisions of Regulation 14,
shall be financed by contributions from Members according
to the scale of assessments determined by the Conference.
Pending the receipt of such contributions the appropriations
may be financed from the Working Capital Fund.
Regulation 13
The Conference shall determine the amount of the
Working Capital Fund and any sub-divisions thereof.
Regulation
In the assessment of the contributions of Members,
there shall be adjustments to the amount of appropriations
approved by the Conference for the following financial year
in respect of:
(a) Supplementary appropriations for which con-
tributions have not previously been assessed on
the Members:
NOTES:
Regulations 12 and l3 : These regulations presuppose the
establishment of a Working Capital Fund, following the line
adopted by the United Nations. The establishment of the
Fund is strongly recommended by the experience of
specialized agencies and the United Nations. ICITO/EC . 2/14
page 80
(b) Estimated miscellaneous income for the
financial year to which the appropriations relate;
(c) Miscellaneous income of former years for which
credit has not previously been taken into account,
and deficiencies in estimated income which was
previously taken into account;
(d) Contributions resulting from the admission
of new Members under the provisions of Regulation 16;
(e) Any balance of the appropriations of the last
completed financial year surrendered under Regulation
11.
Regulation 15
After the Conference has adopted the budget and deter-
mined the amount of the Working Capital Fund and its sub-
divisions, the Director-Genaral shall:
(a) Transmit all relevant documents to Members;
(b) Inform Members of their commitments in respect
of annual contributions and of advances to the
Working Capital Fund;
(c) Request them to remit their contributions and
any advances to the Working Capital Fund.
Regulation 16
New Members shall be required to make a contribution
for the year in which they are first admitted and an advance
to the Working Capital Fund, at rates to be determined by
the Conference.
Regulation 17
Annual contributions and advances to the Working
Capital Fund shall be assessed and paid in the currency of
the State in which the Organization has its headquarters.
The Director General may at his discretion lay down
Conditions under which member governments may pay part of ICITO/EC . 2/14
page 81
their contributions in other currencies to the extent that
the approved budget requires expenditures in those
currencies.
Regulation 18
Payments made by a Member shall be applied first as a
credit to the Working Capital Fund and then to the con-
tributions due in the order in which the Member was assessed.
CUSTODY OF FUNDS
Regulation 19
The Director-General shall designate the bank or banks
in which the funds of the Organization shall be kept.
INTERNAL CONTROL
Regulation 20
The Director-General shall:
(a) Establish detailed financial rules and procedures
in order to ensure effective financial administration
and the exercise of economy;
(b) Cause an accurate record to be kept of all
capital acquisitions and all supplies purchased and
used;
(c) Render to the Auditors with the accounts a state-
ment as at 31 December of the financial year concerned,
showing the supplies in hand and the assets and
liabilities of the Organization together with a state-
ment of losses of cash, stores and other assets written
off under Regulation 23;
(d) Cause all payments to be made on the basis of
supporting vouchers and other documents which ensure
that the services or commodities have been received
and that payment has not previously been made; IC ITO/EC . 2/14
page 82.
(e) Designate the officials who may receive monies,
incur obligations and make payments on behalf of the
Organization;
(f) Maintain an internal financial control which
shall provide for an effective current examination
or review of financial transactions in order:
(i) To ensure the regularity of the receipt,
disposal and custody of all funds and
other financial resources of the Organization;
(ii) To ensure the conformity of all expenditures
with the appropriations or other financial
provision voted by the Conference;
(iii) To obviate any uneconomic use of the resources
of the Organization.
Regulation 21
No contract, agreement or undertaking of any nature,
involving a charge against the Organization exceeding
$100(U.S.) shall be entered into, or have any force or
effect, unless:
(a) Credits are reserved in the accounts to discharge
any obligation which may come in course of payment
in the financial year under such contract, agreement
or undertaking;
(b) The charge is a proper one against the
Organization; and
(c) Proof has been provided that the service is for
the benefit of the Organization and the cost thereof
is fair and reasonable.
The Auditors shall draw the attention of the Conference
to any case where, in the opinion of the Auditors, any
charge has been improperly made or was in any way irregular, ICITO/EC .2/14
page 83.
Regulation 22
The Director-General may make such ex-gratia payments
as he deems to be necessary in the interests of the
Organization, provided that a statement of such payments
shall be submitted to the Conference with the annual
accounts.
Regulation 23
The Director-General may, after full investigation,
authorize the writing off of losses of cash, stores and
other assets, subject to the requirements of regulation
20 (c).
Regulation 24
Tenders for equipment supplies and other requirements
shall be invited by advertisement, except where the
Director-General deems that, in the interest of the
Organization, a departure from the rule is desirable.
THE ACCOUNTS
Regulation 25.
The accounts of the Organization shall be kept in
the currency of the State in which the Organization has
its headquarters, provided however, that the local accounts
of branch offices may be maintained in the currency of the
country in which they are situated.
Regulation 26
There shall be established one cash control record in
which shall be recorded all cash receipts accruing to the
benefit of the Organization. The cash control record shall
be divided into such subsidiary receipts classifications
as may be deemed necessary. ICITO/EC . 2/14
page 84
Regulation 27
Cash shall be deposited in one or more bank accounts
as required; branch accounts, or special funds which
involve a separation of cash assets, shall be established
as charges to the cash control record under appropriate
regulations as to objects, purposes and limitations of such
accounts and funds.
Regulation 28
The accounts shall consist of:
(a) Budget accounts showing:
(i) Original appropriations;
(ii) Appropriations after modification by any transfer,
carried out in accordance with the provisions of
regulation 9;
(iii) Credits, if any, other than appropriations made
available by the Conference;
(iv) Allotments made;
(v) Obligations incurred;
(vi) Expenditures.
(b) A cash account showing all cash receipts and actual
disbursements made;
(c) Separate accounts for the Working Capital Fund, its
sub-fund which may be established;
(d) Property records showing:
(i) Capital acquisitions and disposals;
(ii) Equipment and supplies purchased, used and
on hand;
(e) Such records as will provide for a statement of assets
and liabilities for each fund at 31 December of each
financial year. ICITO/EC .2/14
page 85.
Regulation 29
The accounts shall be submitted by the Director-
General to the Auditors by 31 March following the end of
the f inancial year.
EXTERNAL AUDIT
Regulation 30
For the purpose of making annually, and at such times
as may be necessary for special purposes, an independent
audit of the funds, assets and accounts of the Organization,
the Organization shall so far as possible make use of the
board of External Auditors of the Accounts of the United
Nations. The procedures governing the audit shall be
determined by a resolution of the Conference.
TRUST AND OTHER SPECIAL FUNDS
Regulation 31
Appropriate separate accounts shall be maintained for
trust funds and other special funds for the purpose of
accounting for unclaimed monies, monies received and held
in suspense, and for projects where the transactions involve
a cycle of operations. The purpose and limits of each
trust or other special fund established shall be clearly
defined by the appropriate authority.
INVESTMENTS
Regulation 32
The Director-General may make short-term investments
of monies which are not needed for immediate requirements
and shall inform the Advisory Coimmittee periodically of the
investments which he has made. ICITO/EC .2/14
page 86.
Regulation 33
Income from investments of the working Capital Fund
shall be accounted for as miscellaneous income.
Income from investments of the Staff Provident Fund
shall be held in the Fund for ultimate credit to the Pension
Fund.
RESOLUTIONS INVOLVING EXPENDITURES
Regulation 34
No resolution involving expenditure from the
Organization funds shall be approved by the conference of
the Organization or by the Execuitive Board unless the
conference or the Board has before it a report from the
Director-General on the financial implications of the
proposals and an estimate of the costs involved in the
specific proposal.
Where, in the opinion of the Director- General, the
proposed expenditure cannot be made from the existing
appropriations, it shall not be incurred until the Conference
has made the necessary appropriations unless the Director-
General certifies that provision can be made under the
conditions of the resolutions of the Conference relating
to unforeseen and extraordinary expenses and the Working
Capital Fund. ICITO/EC .2/14
page 87.
DRAFT PROVISIONAL STAFF REGULATIONS FOR
THE INTERNATIONAL TRADE ORGANIZATION
CHAPTER I
DUTIES AND OBLIGATIONS OF THE SECRETARIAT
Regulation 1
The Director-General and all members of the Staff of
the Organisation are international civil servants and
their responsibilities are not national but exclusively
international. By accepting appointment, they pledge
themselves to discharge their functions and to regulate
their conduct with the interests of the International Trade
Organisation only in view. In the performance of their
duties they shall not seek nor receive instructions from
any Government or from any other authority external to the
Organisation. All members of the staff are subject to
the authority of the Director-General, and are responsible
to him in the exercise of their functions.
Regulation 2
Upon accepting their appointment, all members of the
staff all subscribe to the following oath or declaration:
"I solemnly swear (undertake, affirm, promise) to
exercise in all loyalty, discretion and conscience the
functions entrusted to me as a member of the international
service of the International Trade Organisation, to discharge
those functions and regulate my conduct with the interests
of the Organisation only in view, and not to seek or accept
instructions in regard to the performance of my duties from
any Government or other authority external to the
Organisation".
Regulation 3
The oath or declaration shall be made orally by the
Director-General at a session of the Conference, and by
the other high officers in public before the Director-
General or his authorised deputy. ICTTO/EC . 2/14
page 88.
Regulation 4
The immunities and privileges attaching to the Inter-
national Trade Organisation by virtue of Article 90 of the
Charter are conferred in the interests of the Organisation.
These privileges and immunities furnish no excuse to the staff
members who enjoy them for non-performance of their private
obligations or failure to observe laws and police regulations.
In any case where these privileges and immunities arise, the
staff member concerned shall immediately reportt to the Director--
General, with whom alone it rests to decide whethae they shall
be waived.
Regulation 5
Members of the staff shall exercise the utmost discretion
in regard to all matters of official business.
They shall not
communicate to any person any unpublishmd information known to
them by reason of their official position except as their duties
may require or by authorisation of the Director-General.
Regulation 6
Members of the staff shall avoid any action, and in
particular any kind of public pronouncement or activity which
may advserly reflect on their position as international civil
servants.
They are not expected to give up their national
Sentiments or their political and religious convictions;
but
they shall at alltimes bear in mind the reserve and tact
incumbent upon then by reason of their international status.
Regulation
7
No member of the staff shall accept, hold, or engage in
any office or occupation which in the opinion of the Secretary-
General is incompatible with the proper discharge of his duties
with the United Nations.
NOTE:
Regulation 4
In principle, staff members of inecn-ational
organisations enjy othe mmiunities ad nprivlieiges conferred on
the organisation. It may be necessary, however, to determine,
at a later stage, the personnel to which this provision should
apply, since timaybe desirable to exclude some categories of
staff mmebers,e .g.personnel paid at hourly rates and personnel
specifically engaged fors ohrt etmrs ervic.e ICITO/EC . 2/14
page 89.
Regulation 8
Any member of the staff who becomes a candidate for a
public office of a political character shall resign from
the Secretariat.
Regulation 9
No member of the staff shall accept any honour,
decoration, favour, gift or fee from any Government or from
any other source external to the Organisation during the
period of his appointment, except for war services, or for
services rendered before appointment.
CHAPTER II
APPOINTMENT, PROBATION AND PROMOTION
Regulation 10
Men and women are equally eligible for all posts in
the Secretariat.
Regulation 11
So far as practicable, appointments to posts in the
Secretariat shall be made on a competitive basis.
Regulation 12
Persons appointed to permanent posts in the Secretariat
shall serve such probationary period as may be prescribed
by the Director-General.
The appointment of members of the staff for a
probationary period or on a short-term contract, which shall
include any temporary contract, may be subject to such
conditions as the Directors General may deem desirable.
Regulation 13
The Director-General may provide facilities to train
members of the staff in subjects relating directly or
indirectly to their duties. This training shall apply
particularly to members on probation whose earlier
educational opportunities have been inadequate or whose language
qualifications are deficient. ICITO/EC .2/14
page 90 Regulation 14
With due regard to Article 85 of the Havana Charter
and without prejudice to the inflow of fresh talent at the
various levels, vacancies shall be filled by promotion of
persons already in the service of the International Trade
Organisation in preference to appointments from outside.
This consideration may also be applied, on a reciprocal
basis, to staff of the United Nations and the specialised
agencies brought into relationship with the United Nations.
Regulation 15
The Director-General shall provide machinery through
which members of the staff may participate in the discussion
of conditions relating to appointment and promotion.
CHAPTER III
SALARIES AND ALLOWANCES
Regulation 16
Pending the adoption of a permanent classification plan,
the salaries of the members of the staff other than the
Deputy-Directors-General shall be determined by the
Director-General, who shall follow in principle the scales
of remuneration of the United Nations.
CHAPTER IV
HOURS OF WORK
Regulation 17
The whole time of members of the staff shall be at the
disposal of the Director-General. The Director-General
shall establish a normal working week.
CHAPTER V
LEAVE
Regulation 18
Members of the staff shall be allowed sick leave,
maternity leave, special leave, annual local leave and home
leave, as prescribed by the Director-General. ICITO/EC.2/14
CHAPTER VI page 91
DISCIPLINARY MEASURES
Regulation 19
The Director-General may impose disciplinary measures
on members of the staff whose conduct or work is
unsatisfactory. He may discharge a member of the staff
who persistently fails to give satisfactory service. He
may summarily dismiss a member of the staff for serious
misconduct. CHAPTER VII
TERMINATION OF APPOINTMENTS
Regulation 20
The normal age of retirement for members of the staff
shall be 60 years. In exceptional circurmstances the
Director-General may, in the interest of the Organisation,
extend this age limit to 65 years.
Regulation 21
The Director-General may terminate the appointment of
a member of the staff in accordance with the terms of his
appointment if made under the provisions of Regulation 12,
Section2 or, if the necessities of the service require, the
abolition of the post or a reduction of the staff, or if the
services of the individual concerned provo unsatisfactory.
Regulation 22
If the Secretary-General terminates an appointment
under Regulation 21 he shall give at least three months
notice and pay an indemnity equivalent to at last three
months' salary. The amount of the indemnity shall be
increased with length of service up to a maximum of 9
months salary. These provisions of notice and indemnity
shall not apply to probationers, to persons holding short-
term contracts, or to persons summarily dismissed.
Regulation 23
The Director-General shall establish administrative
machinery for inquiry and appeal in disciplinary and
termination cases. This machinery shall provide, for staff ICITO/EC . 2/14
page 92.
participation.
CHAPTER VII
TRAVELLING EXPENSES AND ALLOWANCES
Regulation 24
The travel expenses and travel allowances of members
of the staff in respect of authorised journeys on the
business of the International Trade Organisation shall be
paid by the Organisation subject to such conditions as may
be prescribed by the Director-General.
Regulation 25
Subject to such conditions as may be prescribed by
the Director-General, the International Trade Organisation
shall pay the removal costs and the travel expenses and
travel allowances of members of the staff , and, in
appropriate cases, their wives and dependent children:
(a) upon appointment to the Secretariat and
on subsequent change of official station;
(b) at appropriate intervals for a journey to
and from the place recognised as the staff
member's home at the time of the initial
appointment;
(c) upon termination of appointment.
CHAPTER IX
STAFF PROVIDENT FUND
Regulation 26
The Organisation shall be affiliated with the Permanent
Retirement Scheme of the United Nations and shall apply the provisions laid down thereby.
ICITO/EC .2/14
page 93.
Regulation 26: Agreement is being sought by the
United Nations that all specialized agencies or a great
majority of them be affiliated with the United Nations
pension scheme. This scheme, which is expected to be
adopted at the next General Assembly in Paris, contains the
following principal points:
Retirement age
Basis of benefits
Maximum of retirement
pension
Disability pension
Withdrawal benefits:
Within first 5 years of
service
After first 5 years of
service
widow's pensions:
In active service
After service retirement
After disability retirement
Death benefit payable to
any designated beneficiaries
Orphans benefits
60 years
Average salary during
last ten years
50 per cent of average
salary during last ten
years.
Same as retirement
pension, with minimum of
33 1/3 per cent.
Participant's own
contribution plus
interest; in cash
Actuarial equivalent in
cash
50 per cent of
disability pension
50 per cent of
participant's pension
50 per cent of
participant' s pension
Participant's own
contribution plus
interest; payable on
death in active service
when no widow's pension
is payable.
$300 per annum for a
half-orphan and $600
per annum for a full
orphan
The cost of the scheme expressed as percentage of
salary is 21 per cent. The participants would contribute
7 per cent and the Organisation 14 per cent of their
salaries.
Another scheme has been adopted by the International
Bank and the International Monetary Fund showing some
differences in the benefits payable and having two main
points of disagreement: the retierment age is 65 and the
overall cost of the plan is only 18 per cent of the
participant's salary of which 12 per cent is borne by the
organisation.
. . ICITO/EC . 2/14
page 94. CHAPTER X
SPECIAL INDEMNITIES
Regulation 27
A member of the staff who is injured as a result of
an accident incurred in the course of his duty or who is
compelled to discontinue his employment as a result of
sickness directly attributed to his work in the service
of the Organisation shall receive reasonable compensation.
Should the staff member die in such circumstances,
reasonable compensation shall be paid to his widow or such
dependent as the Director-General may determine.
CHAPTER XI
ADMINISTRATIVE: TRIBUNAL
Regulation 28
Any dispute which cannot be resolved internally arising
between the Organisation and a member of the staff regarding
the fulfilment of the contract of the said member or
arising out of disciplinary action shall be referred for
final decision to an international Administrative Tribunal
which may be designated or, if necessary, established by
the Executive Board until definitive arrangements have been
made with the United Nations.
NOTE:
Regulation 28: The proposed regulation forsees the
establishment of an administrative tribunal, if necessary,
or the designation of an existing one, to deal with disputes
arising between the Organisation and a number of the Staff
and which cannot be resolved internally,
It is thought desirable to bring the problem to the
attention of the Interim Commission, since this is a point
on which no final decision has been reached by the United
Nations.
The Preparatory Commission of the United Nations which
met in London, recommended the establishment of the Tribunal
as a means of allowing staff members to have recourse to a
body outside the administrative framework of the United
Nations if a decision taken by the Administration appeared
to be contrary to the staff rules and regulations. A
drafting committee was established and a draft statute for
the tribunal was submitted to the second part of the First
Session of the General Assembly. At the suggestion of some
Delegations, the matter was, however, postponed and has not
been dealt with so far.
The ILO has established an administrative tribunal and
the Interim Commission of the WHO has suggested the adoption
of a provision similar to the text proposed above. CITO/EC .2/14
page 95.
CHAPTER XII
GENERAL PROVISIONS
Regulation 29
These regulations may be supplemented or amended by
the Conference of the Organisation provided that in the
consideration of such amendments, due regard shall be
paid to the rights of members of the staff.
Regulation 30
The Director-General shall inform the Advisory
Committee of such staff rules and amendments thereto as
he may make to implement these Regulations. Whenever it
considers this necessary, the Advisory Committee shall
draw the attention of the Conference to them. ICITO/EC. 2/14
page 96
PROPOSED AUDIT PROCEDURE FOR INTERNATIONAL TRADE
ORGANIZATION
The auditors shall submit their report, together
with the certified accounts and such other statements
as they think necessary, to the Conference. A copy
of this report shall be made available to the Director-
General sufficiently in advance of its submission to
the Conference to permit him to present such comment
or representations to the Conference as he may desire
to submit.
The Audit should be carried out by the Auditors
having full regard to the following requirements of the
Conference:
a. The Auditors should satisfy themselves:
(1) That the accounts, including the balance
sheet, represent a correct record of duly
authorized financial transactions of the
financial year;
(2) That money has not been expended or obligated
other than for the purpose or purposes for
which the appropriations voted by the
Conference were intended to provide, except
in so far as transfers within the budget are
authorized, and that the expenditure conforms
to the authority which governs it;
(3) That transfers from the Working Capital Fund
or other funds have received the necessary
authority.
b. The Auditors, after satisfying themselves that
the vouchers have been examined and certified as correct ICITO/EC. 2/14
page 97
by the accounting organization may, in their discretion
and having regard to the character of the examination within
the department, in any particular case admit the sums so
certified without further examination, provided however,
that, if the Conference requests that any accounts be
examined in greater detail. The Auditors shall take
action accordingly.
c. The Auditors shall examine such store or stock
accounts as are maintained by the organization the
financial accounts of which they are auditing.
d. The Auditors shall have free access at all
convenient times to the books of account and all information
relevant to the accounts of the organization concerned.
Requests for official files which may deal with matters
of policy should be made only through the administrative
officer in charge of administrative and financial
services.
e. The Auditors should not criticize purely admin-
istrative matters, but it is within their discretion to
comment upon the financial consequences of administrative
action. Audit examination should not be undertaken
before accounting effect has been given to transactions,
nor should accounts and vouchers he examined until they
have been duly rendered available by the department
concerned.
f. Objections to any items which may arise during
audit should be communicated immediately to the accounting
department concerned, As a general rule, criticism
should not be made in the Auditors' report without first
affording the accounting department an opportunity of
explanation. ICITO/EC, 2/14
page 98
g. Documentary or other information obtained from a
department should not be published by the Auditors
without reference having been made to the duly authorized
official of the organization or agency concerned.
h. The Auditors certifying the accounts shall
prepare a joint report of each account certified, in
which they should mention:
(1) The extent and character of their examination
or any important changes therein;
(2) Matters affecting the completeness or accuracy
of the accounts, such as:
(a) Information necessary to the correct
interpretation of the account;
(b) Any amounts which ought to have been
received but which have not been brought
to account;
(c) Expenditure not properly vouched;
(3) Other matters which should be brought to the
notice of the Confrerence, such as:
(a) Cases of fraud or presumptive fraud;
(b) Wasteful or improper expenditure of the
organization's money or stores (notwith-
standing that the accounting for the
transactions may be correct);
(c) Expenditure likely to commit the organ-
ization to further outlay on a large scale;
(d) Any defect in the general system or
detailed regulations governing the control
of receipts and expenditure, or of stores;
(e) Expenditure not in accordance with the
intention of the Conference, after making
allowance for duly authorized transfers ICITO/EC .2/14
page 99
within the budget;
(f) Expenditure in excess of appropriations as
ammended by duly authorized transfers within
the budget;
(g) Expenditure not in conformity with the
authority which governs it.
(4) The accuracy or otherwise of the stores'
records as determined by stock-taking and
examination of the records.
In addition, the reports may contain reference to:
(5) Transactions accounted for in a previous year
concerning which further information has been
obtained, or transactions in a later year
concerning which it semes desirable that the
Conference should have early knowledge.
1. The Auditors, or such of their officers as
they may delegate, should jointly certify each account
in the following terms:
"The above accounts have been examined in
accordance with our directions. We have
obtained all the information and explanations
that we have required, and we certify as the
result of the audit, that, in our opinion, the
above account is correct";
adding, should it be necessary, "subject to the
observations in our report."
j .The Auditors shall have no power to disallow
items in the accounts, but shall recommend to the ICITO/EC . 2/14
page 100
Director-General for appropriate action such dis-
allowances as the Auditors are prepared to recommend
to the Conference based on their audit of the accounts
and records. The Auditors shall bring to the attention
of the Conference any cases where its recommendations
for disallowance have not been acted upon by the
Director-General. |
GATT Library | dr009xf0155 | Report of Sub-Committee 3 on Administration : Section 4. Corrigendum | 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/EC.2/14/Add.1/Corr.1 and ICITO/EC.2/14-ICITO/EC.2/14/ADD.1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/dr009xf0155 | dr009xf0155_90060210.xml | GATT_146 | 47 | 377 | RESTRICTED
LIMITED A
INTERIM COMMISSION
FOR THE INTERNATIONAL
TRADE ORGANIZATION
COMMISSION
L'ORGANISATION
DU COMMERCE
INTERIMAIRE
DE
INTERNATIONALE
ICITO/EC.2/14/
Add. 1/Corr .1
14 September 1948
ENGLISH ONLY
Executive Committee
Second Session
Report of Sub-Committee
3 on Administration
Section 4
This document should be marked "RESTRICTED ,
LIMITED A". |
GATT Library | gv046rh5915 | Report of Sub-Committee 3 on Administration : Section 4. Expenses of the preparatory Committee of the United Nations Conference on Trade and Employment and of that Conference | Interim Commission For the International Trade Organization, September 13, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 13/09/1948 | official documents | ICITO/EC.2/14/Add.1 and ICITO/EC.2/14-ICITO/EC.2/14/ADD.1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/gv046rh5915 | gv046rh5915_90060209.xml | GATT_146 | 883 | 5,610 | FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE ICITO/EC. 2/14/Add.1
TRADE ORGANIZATION DU COMMERCE 13 September 1948
ORIGINAL: ENGLISH
EXECUTIVE: COMMITTEE
Second Session
Report of Sub-Committee 3 on Administration
Section 4
Expenses of the Preparatory Committee of the United Nations
Conference on Trade and Employment and of that Conference
Despite a lengthy discussion, the Sub-Committee was
unable to agree on a recommendation on this question. They
therefore report for further consideration by the Executive
Committee three different solutions which were propounded
to the Sub-Committee but none of which commanded sufficient
support to form the basis of a recommendation by the Sub-
Committee.
A. Some members urged that on principle,
the responsibility for these expenses rested
clearly with the United Nations and that no
compelling reason had been advanced why the
matter should not be decided in accordance
with principle. The argument that such a
recommendation by the Interim Commission
would provoke an undesirable debate in the
General Assembly was not fully convincing in
that it was certain that the question of the
ITO would, in any event, be debated at length.
There would inevitably be a discussion also
of the substantial deficit in the Working
Capital Fund even if there were a recommenda-
tion by the Interim Commission in favour of
full reimbursement by the ITO. In addition
to the principle involved there was the
practical consideration that acceptance of
these charges would place a heavy financial
liability on the ITO at its inception.
B. Other members of the Sub-Committee, whilst
agreeing as regards principles, felt that the
particular circumstances and practical consid-
erations were such as to make it desirable that
the ITO should accept these liabilities. Whilst
it was true that the question of the ITO might
be debated in the General Assembly in any
event, the injection into the debate of this
financial controversy would in all probability
damage the ITO. Whilst it might be true that
there would have to be a discussion on the
deficit in the Working Capital Fund, the debate
would be less harmful if there were not
COMMISSION INTERIMAIRE DE
INTERIM COMMISSION
UNRESTRICTED ICITO/EC. 2/14/Add.1
page 2
involved in it an apparent dispute
between the United Nations and one of its
related agencies. It must be admitted
that the result would be to burden the ITO
with debt but this might not be so serious
If the debt redemption could be spread over
several budgets rather than provided for in
the first budget . In any case the sum
involved was not large when spread between
all Members of the ITO. As regards the
majority of contributors, whichever arrange-
ment was adopted, it was unlikely to affect
them very materially as even if the United
Nations accepted the liability, Members of
the United Nations would have to contribute
to the supplementary budget allocation
necessary to replenish the Working Capital
Fund.
C. Other members of the Sub-Committee
favoured a compromise solution whereby the
expenses would be divided between the United
Nations and the ITO in accordance with the
principles which they understood the Secretary-
General intends to submit to the General
Assembly concerning expenses which may properly
be borne by the United Nations in connection
with the creation of any new specialized agency
and expenses which should be regarded as a
proper charge to the new organization. These
principles are set out in paragraph 6 of
document ICITO/EC.2/4::
"6. The expenses of meetings of technical
preparatory committees established by the
Economic and Social Council in accordance
with the terms of Article 59 of the
Charter should be borne, as a general rule,
on the United Nations budget. All other
expenses, including the expenses of the
first World Conference called to frame the
constitution and the expenses of the
preparatory or interim commissions created
by the constitutional conferences should
be borne by the new specialized agency or
by the participating Governments. "
The effect of such a recommendation would be
that the Interim Commission under paragraph 2
(a) of its terms of reference would place
before the First Annual Conference of the ITO
a recommendation that the ITO accept liability
for costs of the Havana Conference advanced
from the Working Capital Fund and that the
expenses of the Preparatory Committee be
financed out of the budget of the United Nations. ICITO/EC. 2/14/Add. 1
page 3
The protagonists of course B considered that the
compromise course C presented the worst of both worlds;
on the one hand, it involved a sacrifice of the principles
upon which the protagonists of course A stood - and which
principles were recognized by protagonists of course B -
and on the other hand, it offered none of them advantages
of course B since it left in controversy the larger part
of the sum in question and the unfortunate results which
had led to the suggestion of course B would therefore
onsue.
The protagonists of course A, however, would have
been prepared to accept course C if that would be the
means of reaching an agreed conclusion. From their point
of view, course C represented some departure from the
principles upon which their attitude was based but, on
the other hand, course C followed general principles which
the Secretary-General was proposing to apply to all cases
and at the same time made some concession on reimbursement. |
GATT Library | fw311ch3516 | Report of Sub-Committee A (Articles 16, 17, 18, 19) | United Nations Conference on Trade and Employment, February 16, 1948 | Third Committee: Commercial Policy | 16/02/1948 | official documents | E/CONF.2/C.3/59 and E/CONF.2/C.3/58-77/REV.1 | https://exhibits.stanford.edu/gatt/catalog/fw311ch3516 | fw311ch3516_90190158.xml | GATT_146 | 9,856 | 64,239 | United Nations Nations Unies
CONFERENCE CONFERENCE E/CONF.2/C.3/59
ON DU
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 16 February 1948
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
REPORT OF SUB-COMMITTEE 1 A (ARTICLES 16, 17, 8, 19)
PART I
1. Sub-Committee A was appointed at the ninth meeting of the Third Committee,
12 December, to examine the proposals and amendments relating to Articles 16
and 17 (other than those relating to paragraphs 2 and 3 of Article 16 which
were referred to the Joint Sub-Committee of the Second and Third Committees)
with a view to reaching agreement on a text to be recommended to the Third
Committee. At the thirteenth meeting of the Third Committee, 17 December,
it was agreed to refer the amendments to Articles 18 and 19 to Sub-Committee A.
2. The Sub-Committee consisted of representatives of the following
delegations: Australia, Brazil, China, Colombia, Cuba, Denmark, France, Mexico,
Netherlands, New Zealand, Peru, Turkey, United Kingdom, United States and
Uruguay. The delegate of Norway replaced the delegate of Denmark when
Articles 18 and 19 were under discussion. The Sub-Committee had the benefit
of consultation with representatives of the following delegations, not members
of the Sub-Committee: Argentina, Ceylon, Chile, Czechoslovakia, Ecuador,
Ireland, the Philippines, Sweden, Syria, and Venezuela, and with a
representative of the International Monetary Fund. A considerable number of
observers attended regularly the Sub-Committee meetings.
3. Dr. G. A. Lamsvelt (Netherlands) was elected Chairman.
4. The Sub-Committee has held thirty-eight meetings.
5. Four Working Parties were established which drafted revised texts of the
note to Annex A of Article 16, and of Articles 17, 18 and 19, respectively,
and a drafting group named which produced the new paragraph 4 of Article 16.
6. Part II of this Report comments briefly on the main changes in the text
and on the manner in which the Sub-Committee dealt with the proposed amendments.
7. The recomendedtt of Articles 16, 17, 18 and 19 (except paragraphs 2
and 3 of Article 16 which were not within the Sub-Committee's terms of
reference), of the consequential changes in other Articles; and of the
interpretative notes, appears in Part III of this Report.
8. The Sub-Committee's task was greatly facilitated by the excellent work of
its never tiring and most competent secretary, Mrs. Margaret F. Berger, to
whom the members of the Sub-Committee and the Chairman in particular feel
sincerely indebted.
/PART II E/CONF.2/C.3/59 Page 2 PART II
(References are to the Revised Annotated Agenda, E/CONF.2/C.3/6,
except as otherwise specified)
Article 16
Annexes A and D and Paragraph 4
The note to Annex A has been redrafted with respect to the imposition of
a margin of tariff preference to replace the preferential quantitative
arrangements described therein, and the reference to the imposition of a margin
of tariff preference to replace a margin of preference in an internal tax
existing on 10 April 1947 exclusively between two or more of the territories
listed has been deleted, as well as the entire note to Annex D. In lieu of
the provisions deleted, a new paragraph 4 has been added to Article 16 which
also provides that any such margin of tariff preference shall be subject to the
provisions of Article 17.
The Danish proposal (Item 5) to amend the note to Annex A.with respect
to the imposition of a margin of tariff preference to-replace the existing
quantitative arrangements, and the Cuban proposal (Item 6) to amend the notes
to Annexes A and D with respect to a margin of tariff preference to replace a
margin of preference in an internal tax, have, been met by these changes. The
Cuban delegation accordingly withdrew its resoervation recrded in the Geneva
* *; F
draft
o As da ceodmogbquentchgeng he. Su-Co=mitterecmmens.smnin& -
paagraph 5 ()o Aticle 23 as. idiated in Part III.:- - .
llThe Brazseiliadoneongatxo.attinp. rviiolay is, rertiW t
sub-pararap](b) zf Aicle 23 w hichh appears in the Geneva draft.bot i
conectniomwih Artiqle2delegdelegationaith -Anex . The Pruvian
re 1served its potin nm 4, and on thednae-6,pargraphs 2,. 3 a,e
iintesrpretative nofite to rtFo 16of , p ndi 1ng ral settlement crticle'.:
ekere. fi s ti l on&ti or ninai Ai ino noex.A pora gz
Articleas6, aaranraph 5d on b-px (b) of Article 23.i
neux-paragrap D 2dSqb) a2 .(cbis --. -
7 e.gnof itdleegate of inth itPhilippes,-X ^
geterfrom Anneee dt t delqence -xh repefernacionetohe Rub~licq,t-
-s ~ d Qr eXsert pa 2 s a s2 np a sneub-pagbaphrrarr
referro ing ptefrrenthe etial arrangementfs ienb owrcn eteee th
Unitateedf America and Se Republic of the othle Pphnes.ilipiB: h1:
Paragrah 5 .- -. '.
1Tof hrticle 16eCubanpro2P(It,3}to ddtoparaga:S 1<-Aft#±
np
/p E/CONF.2/C .3/59
Page 3
provision to the effect that tariff descriptions based on distinctive regional
or geographical names should not be used in such a manner as to discriminate
against products of Members countries was referred to Sub-Committee C by the
Third Committee. Sub-Committee C recommended the inclusion in Article 35 of
a new paragraph along these lines unless its substance was added to Article 16.
Sub-Committee A considered both Sub-Committee C's recommendation and the
suggestion of the Chairman of the Third Committee, i.e., that an even broader
provision be included in Article 16, but decided not to recommend any such
addition on the grounds that it might have the effect of limiting the scope
of the most-favoured-nation clause. The Third Committee subsequently requested
Sub-committee A to incorporate such a provision in Article 16, and paragraph 5
has accordingly been added.
Interpretative Note
The Sub-Committee recommends an interpretative note to Article 16 the
note to paragraph 3 of Article I of the General Agreement on Tariffs and Trade,
which includes the interpretative note to Article 16 appearing in the Geneva
draft.
Article 17
Paragraph 1
Most of the amendments proposed to paragraph 1 of the Geneva draft,
whether relating to the principles laid down in the first sentence or to the
rules for negotiations, were either met by, or withdrawn in view of, the
revised text which specifies in greater detail the rules for negotiations,
without altering the principles. In addition to the amendments referred to
the Sub-Committee, suggestions submitted by Australia, Colombia, France,
Mexico, the United Kingdom and the United States were taken into consideration
in revising the text.
The Argentinian (Item 25), Mexican (Item 27) and Uruguayan (Item 26,
C.3/6/Corr.5) proposals relating to the initiation of and the participants in
negotiations were substantially covered by redrafting the first part of
paragraph 1.
The Argentinian amendment (Item 25) to the effect that negotiations should
be directed to the "progressive" rather than "substantial" reduction of tariffs
received no support, and the Mexican amendment (Item 27) also relating to the
purpose of negotiations, was withdrawn in view of the incorporation of more
detailed rules for negotiations.
The proposal by the delegation of the Philippines (Item 29) to modify
the phrase "elimination of preferences" by the word ``gradual'' was withdrawn
in view of the provisions of new paragraph 2 (a).
Paragraph 2
The Mexican proposals to insert additional rules for negotiations
(Item 3. and C.3/A/W.13) were met to a considerable extent by the revised
/text, E/CONF.2/C.3/59
Page 4
text, particularly new paragraphs 2 (a) and (b). The Mexican delegate
accepted the revised text and did not press those amendments which were not
specifically adopted.
The Peruvian (Item 33) and Colombian (Item 32) amendments relating to the,
effects of currency devaluation on tariffs were withdrawn because:
(a) prior to negotiations, a Member would be free to increase the
specific duty on any unbound item since Article 17 does not provide
for a general binding of all items;
(b) subsequent to negotiations, should a Member's currency be
devalued consistently with the Articles of Agreement of the
International Monetary Fund by more than twenty percent, the
General Agreement (Article II, 6 (a)) permits the readjustment
of specific duties to take account of such devaluation, subject
to certain safeguards;
(c) an interpretative note has been recommended to sub-paragraph 2 (d)
stating that the effects of currency devaluation would be a matter
for consideration during negotiations.
The Sub-Committee considered and the Turkish delegate agreed that this
interpretation would also cover the Turkish delegation's proposed amendment
to Article 140 (C.2/9, page 63). -
Sa h2 * .....e.,.F
It was the Sub-Comittee understanding that the words "undertake not
to raise it (i.e., a tariff duty) above a specified higher level" merely mean
that in certain cases it might be advantageous to any Member to obtain a.
tariff -binding, even though at a higher level, and that the provisions of
sub-paragraph2 (a) are therefore not inconsistent with the aims of paragraph
1, i.e, he substantiaf reduc.ion offe tariffs and elimination of pre4ences.
It wasonideed neces"saoryn to describe the "basis!' fegotiations by
the word "selective" as well as by the term "product-by-product", in order to
make it onclear that negon otiations wouldnot proceed a product-by-product
basis with respect to all products, but rather on the basis of lists of
ereions qonupests and offers of conse-aroducts in which there was mutual
interest
Sub-Paragraph 2 (b)
Former sub-paragraph 1 (c)n has been enxpanded to assure that cocessions
incorporated in the General Agreement on Tariffs and Trade which were
previously provided for in bilateral agreements would be cosidered as
c17 ioncessiomn s u nsder Article n the saewaya concessions already granted
by oriTtginal Members of the G.A.T. for which compensation could asked.
/Sub-Paragraph2 e) E/CONF.2/C.3/59
Page 5
Sub-Paragraph 2 (e)
The Cuban amendment (Item 30) relating to prior international commitments
as subsequently amended by the Sub-Committee has been incorporated in the text
as new sub-paragraph 2 (e). The interpretative note to paragraph 1 of the
Geneva draft was accordingly deleted. In connection with this sub-paragraph,
the Sub-Committee considered that in view of the condition that all agreements
under this Article are to be on a reciprocal and mutually advantageous basis,
the phrase 'carry out negotiations' appearing in paragraph 1 of this Article
does not mean that agreements must invariably result from negotiations which
have been initiated.
Paragraphs 2 and 4
The Ceylon (Item 34), Chilean (Item 40), Colombian (Item 35), Mexican
(Item 31) and Peruvian (Item 33) amendments, proposing that account be taken
by Members during negotiations and by the Organization in making determinations
under paragraph 4 of the needs of countries in special categories, particularly
underdeveloped and war-damaged countries, and of the revenue aspect of Members'
tariffs, were met by the addition of sub-paragraphs 2 (a) and (b) and by the
addition of language in paragraph 4 with respect to the criteria which should
be taken into account by the Organization in determining whether a Member had
failed to fulfil its obligations under Article 17. The Sub-Committee concluded
that it would be impracticable and unwise to attempt to set out in the Charter
itself detailed descriptions of all the specific criteria necessary to cover
all possible future situations. Accordingly, it was agreed that the
Organization should be instructed, broadly, to have regard to "all relevant
circumstances".
The specific language recommended by the Sub-Committee is "all relevant
circumstances, including the developmental and other needs and the general
fiscal structures of the Member countries concerned and the provisions of the
Charter as a whole." It was not felt necessary to refer specifically to the
balance of reciprocal concessions offered by the countries concerned, and the
probable effect or value of these concessions, since it was obvious that these
elements would comprise the very foundation of any case before the Organization,
which would inevitably take them into account. With regard to the suggestion
that language should be included recognizing the need of countries to maintain
reasonable tariff protection, it was felt that (a) in general it is implicit
in Article 17 that reasonable tariff protection is consistent with the
principles of the charter, and (b) the needs of underdeveloped countries in
this respect are recognized in paragraph 1 of Article 13 and would be given
further specific recognition by the inclusion of the reference to
"developmental needs" in Article 17. This means that the
Organization, in assessing the total value of the concessions
which a Member may be willing to grant to another Member, shall
take into account the needs resulting from the different general /conditions E/CONF .2/C.3/59
Page 6
conditions prevailing in different Member countries with respect to their
ability to maintain or develop their industries.
It was understood that the term "developmental and other needs" would
cover, inter alia, a Member's need for reconstruction.
The Chilean delegate withdrew his proposal (Item 40) to add "balance of
payments" and "monetary reserves" as criteria to be taken into account by the
Organization on the grounds that these subjects were more relevant to
Articles 21, 23 and 24.
The amendments proposed by Haiti (Item 28) and EJ. Salvador (Item 41) to
the effect that Members should be released from the obligation to negotiate
because of their economic development and revenue needs were met -in part by
the addition to paragraph 4 of the phrase ".... and the general fiscal
structures of the Member countries concerned...."
Paragraph 3
The substance of the United States amendment (Item 44) was adopted as the
first and second sentences of this paragraph. The third sentence of' the
paragraph was added to cover the substance of the Norwegian amendment (Item 45)
and the interpretative note to Article 17 of the Geneva text relating to
existing bilateral agreements. The Interpretative Note shown in the Geneva
text has accordingly been deleted, and the Cuban delegation has withdraw its
reservation.
As regards any difficulties which might arise from a possible conflict
between the provisions of the Charter and the general provisions of the General
Agreement on Tariffs and Trade, the Sub-Committee was of the opinion that the
best method of eliminating such difficulties would be for the Governments
which signed the Final Act adopted at the conclusion of the Second Session of
the Preparatory Committee of the United Nations Conference on Trade and
Employment to hold a meeting before the signing of the Final Act of the
Havana Conference in order to agree with respect to the supersession of the
general provisions of the General Agreement by the corresponding provisions
of the Charter. Members of the Conference would then be in a position to
know the provisions of the final text of the General Agreement on Tariffs and
Trade, referred to in paragraph 3, prior to signing the Final Act in Havana.
The desirability of amending the unanimity requirement with respect to
agreement on the terms of accession to the General Agreement might also be
considered at such a meeting.
The Mexican delegate did not press his emendment (Item 36) relating to
the revision of negotiated agreements in view of the revised text of
paragraph 3 and the Sub-Committee's opinion expressed above.
/Paragraphs 4 and 5 E/CONF.2/C .3/59
Page 7
Paragraphs 4 and 5
There was no substantial support in the Sub-Committee for the Peruvian
proposal (Item 39) that the Tariff Committee should be only an investigatory
and recommendatory body and that the Executive Board rather than the Tariff
Committee should have the power to make determinations under paragraph 4. No
agreement was reached as to whether the decisions of the Tariff Committee
should be final or whether an appeal from its decisions should be provided for,
although there was considerable support for providing some appeal procedures.
The Uruguayan proposal to delete paragraph 2 of the Geneva text (Item 38) is
still pending. The Sub-Committee has made no change in paragraph 5
(paragraph 3 of the Geneva text) and the Uruguayan and Peruvian proposals
(Item 43) to delete this paragraph are being held in abeyance. The
Sub-Committee may wish to make further recommendations to the Third Committee
when the Report of the Tripartite Working Party of Sub-Committee A of the
Third Committee, Sub-Committee D of the Sixth Committee and the Joint Sub-
Committee of the Second and Third Committees, which is considering matters
relating both to the Tariff Committee and the proposed Economic Development
Committee, is available.
The Cuban delegation has proposed inserting in the thirteenth line of
paragraph 4 of Article 17 the words "and/or the provisions of the General
Agreement on Tariffs and Trade". This amendment would enable the Organization
to waive the requirements of Article II of the G.A.T.T., as well as of
Article 16, in order to authorize contracting parties to withhold benefits
embodied in the G.A.T.T. from another contracting party with whom they had not
completed negotiations, if it were determined that the latter contracting
party had failed to fulfil its obligations under paragraph 1 of Article 17.
The Cuban proposal, although originally referred to the Joint Working Party
of Sub-Committee A of Committee III and Sub-Committee D of Committee VI, is
being studied by the Tripartite Working Party referred to above. The Cuban
delegation reserved its position on paragraph 4 of Article 17 pending the
outcome of the consideration of this amendment, and the final decision
which the contracting parties take in respect of the amendment to
Article II of the G.A.T.T. suggested by the Tripartite Working Party. The
Cuban delegate stated, on instructions from his delegation, that this was
a reservation on the whole position of the Cuban delegation with regard to
the acceptance of the Charter by its Government.
The Mexican and Peruvian delegations each reserved provisionally its
position on paragraph 5 of Article 17.
/General E/CONF.2/C .3/59
Page 8
General
The Sub-Committee considered in principle, at the request of Sub-
Committee E of the Third Committee, paragraph 1 of new Article 27 proposed by
Brazil (C.3/H/W.6), as follows: -
" No mear shl grat, directly or indirectly, any subsidy on
,the d omestic production of any commdity;in respect of which the
tariffhas been reduced or bound by negotiation pursuant to Article 17."
A majority of the Sub-Committee considered, that, in view of the
pirovisions of Section C of Chapter I, I was not necessary to write into the
Charter the proposed Brazilian amendment, either in Its original form or as
revised during the Sub-Committees discussion, whereas a minority of the
Sub-Committee supported the principle contained in the Brazilian amendment.
Sub-Committee H was advised accordingly.
The Brazilian delegation ha 17s reserved its position on Article in any
case pending the report of the Joint-Committee of the Second and Third
Committees.
The delegate of Venezuela withdrew his amendment (Item 42, C.3/6/Corr.2)
hich would have permitted the adjustment of customs duties to compensate for
the elimination of an intern tax, in view of the addition to Article 18 of
new paragraph 3.
The ngiNngoom rwecianad the United Ki Sddeletions each reserved
provisionally its position with respect to the first interpretative note
relating to the whole of Article 17.
Article 18
General
The recommeneefe Oifefsom considerably in Jor fr the Geneva text
but has been changed substantially in only one respect. The second sentence
ofd aparagrapdha 1 of the Geneva rft provided thaat existing internI taxes which
afforded protection to directly competitive or substitutable products in cases
in which there was no substantial domestic production of thelike product could
be maintained, subject to negotiation for th eir elimination orreduction in
the manner provided for in Article 17. The Sub-Committee recomends their
outright elimination. Members would, of course, be free to convert the
protective element of such taxes into customs duties The new for of the
Article makes clearer then did the Geneva text the intention that internal
taxes on goods should not be used as a mean of protection.. The details have
been relegatedto interpwetative nwopotes so that it Mld be easier for.embers
pto ascertain the recise scope of their obligations under the Article.
/The Noregian delegation E/CONF. 2/C .3/59
Page 9
The Norwegian delegation withdrew its reservation on the whole of
Article 18 recorded in the Geneva draft, but maintained provisionally a
reservation on paragraphs 7 and 9.
Paragraphs 1, 2 and 3
The Sub-Committee considered the Argentinian (Item 65 (a)), insofar as it
related to local taxes for revenue purposes, the Colombian (Items 49 and 54)
and Irish and Uruguayan (Item 54) amendments to paragraph1 of the Geneva
text to have been covered insofar as feasible by the revised text and by the
interpretative note to paragraph 1 relating to paragraph 3 of Article 99.
The Sub-Committee considered that charges imposed in connection with the
international transfer of payments for imports or exports, particularly the
charges imposed by countries employing multiple currency practices, where
such charges are imposed not inconsistently with the Articles of Agreement
of the International Monetary Fund, would not be covered by Article 18. On
the other hand, in the unlikely case of a multiple currency practice which
takes the form of an internal tax or charge, such as an excise tax on an
imported product not applied on the like domestic product, that practice
would be precluded by Article 18. It may be pointed out that the possible
existence of charges on the transfer of payments insofar as these are
permitted by the International Monetary Fund is clearly recognized by
Article 16.
The Sub-Committee agreed that a general tax, imposed for revenue
purposes, uniformly applicable to a considerable number of products, which
conformed to the requirements of the first sentence of paragraph 2 would
not be considered to be inconsistent with the second sentence.
It was agreed further that a tax applying at a uniform rate to a
considerable number of products was to be regarded as a tax of the kind
referred to in the preceding paragraph and in the parenthesis in the
interpretative note to Article 17, notwithstanding the fact that the
legislation under which the tax was imposed also provided for other rates
of tax applying to other products.
The delegations of Chile, Lebanon, and Syria inquired whether certain
charges imposed by their countries on imported products would be considered
as internal taxes under Article 18. The Sub-Committee, while not attempting
to give a general definition of internal taxes, considered that the
particular charges referred to are import duties and not Internal taxes
because according to the information supplied by the countries concerned
(a) they are collected at the time of, and as condition to; the entry of the
goods into the importing country, and (b) they apply exclusively.to imported
products without being related in any-way to similar charges collected
internally on like domestic products. The fact that whose charges are
described as internal taxes in the laws of the importing country would not
in itself have the effect of giving them the status of internal taxes
under the Charter. /The delegation of E/CONF.2/C.3/59 Page 10
The delegation of Chile not a member of the Sub-Committee, maintained
provisionally its reservation recorded in the Geneva text. The Sub-Committee
considered that the Lebanese and Syrian amendment (Item 50, C.3/6/Corr.6)
was covered in view of the revised text and of the Sub-Committee's understanding
set forth above. The Chinese delegation withdrew its amendment (Item 51) and
its reservation recorded in the Geneva draft in view of the revised text.
The Peruvian delegate withdrew his amendment (Item 56, C.3/6/Add.2) in
view of the Sub-Committee's interpretation that neither income taxes nor import
duties fall within the scope of Article 18 which is concerned solely with
internal taxes on goods.
The Costa Rican proposal (Item 55) was not accepted on the grounds that
it was not necessary.
The Norwegian proposal (C.3/6/Add.5), which would have exempted from the
provisions of Article 18 domestic price stabilization arrangements involving
subsidies and internal taxes on imported products for the purpose of preventing
or modifying inflationary or deflationary pressures, received no substantial
support, although the Sub-Committee was in sympathy with the objectives the
Norwegian delegation had in mind in proposing this amendment.
The Brazilian delegation reserved its position on paragraphs 1, 2 and 3
for the time being.
The Cuban delegation maintained provisionally its reservation recorded in
the Geneva text.
Paragraph 4 -'
The Norgian delegation had proposed to insert a new paragraph in
Article 18 (em 70) to make sure that the provisions of this Article would
not apply to laws, regulations and requirements which have the purpose of
standardizing domestic products in order to improve the quality or to reduce
costs of production, or have the purpose of facilitating an improved organization:
of internal industry, provided that they have no harmful effect on the expansion
of interonational trade. The Sub-Cmmitteei wias of the opinion that ths
amendment would not be necessary becausew th e Article as drafted ouldpermit the
use of internal regulations required to enforce standards. In accordance with
this opinion the Norwegian delegation withdrew its amendment.
The Sub-Coittee inserted the word "internal" to make it clear that the
phrase differential transportation charges does not refer to international
shipping.
Since paragraph 4 relates solely to the question of differential treatment
between Imported and domestic goods, the inclusion of the last sentence inthat
paragraph should not be understood to give sanction to the use of artificial
measures in the form of differential transport charges designed to divert
traffic from one port to another.
The Cuban proposal (Item 54 C. 3/ 6/Corr.3) to delete theword
"transportation" in the first sentence of this paragraph and to deletethe
second sentence received no support.
/The Mexican E/CONF.2/C.3/59
Page 11
The Mexican dilegate withdrew his amendment (Item 58), which he regarded
as adequately covered. elsewhere in the Charter.
Paragraph 5
The Sub-Committee was in agreement that under the provisions of Article 18
regulations and taxes would be permitted which, while perhaps having the effect
of assisting the production of a particular domestic product (say, butter),
are directed as much against the domestic production of another product (say,
domestic oleomargarine) of which there was a substantial domestic production
as they are against imports (say, imported oleomargarine).
The Mexican proposal to delete paragraph 3 of the Geneva draft (Item 60)
was withdrawn in view of the revised text.
The proposal (Item 61) made by the delegation of caylon, not a member of
the Sub-Committe we, considered to have been covered by the revised draft of
this paragraph and its further proposal (Item 63) was whitdrawn.
The Chilean delegation, not a member of the Sub-Committee, maintained
provisonally its reservation to paragraph 3 of the Geneva draft.
Paragraph 6 -
e excep ton permit tng th oe cuitinua mncen-frexulisting.iirgleations
has been redrasfted as sugegeted by thes a delegantion of Swedo ase (Item 67) s to
brinearlyg out more cl that a M ember wouldbefree e toails of an alter thdeat
existing regulation provided that such alterations do nohat inresult in cngg
theet ov ehralleffo of-e oiregu eation.tthe .dtriment ofimports.
Th delegate.of Ireland inqu"r ed whethermt"he ph ras e mod shallnot.e.fied
to thede triment owf.mports" -uld permit changes in thre amount opproportions
of a product requ ired to bemixed under an existing regulation in Ireland,
wh ire ch cangela-he resut of changes in crors from y-ra Ther to yeaX-Sube
Commded thit sincettee decia the renguulation i qestiocnnt clearlsy oemplate
such changes, the changes wo uld not beprecluded by p aragIraph 6and rish
is dehdrlwehis amendmegat e weite nt.(Itm 62).
The Mexican amendment (It eme 64) andth,Aragenn men ttinmia med(Ite 65(b))
were met by the addition of the date of g the hsigninlofct of the te Fina A
ioittonfe tnce.n .CrconTrade and Employment.i-. -
The Argentinia proposal (Item 65.a))ns excep it r liofar asteated
lqtar revexe-fo-.rpurposes, and the -Brazilian proposalt. (Iem). 69:
ved no reppce~uort. - .. -, .- ---; - ::
T dehe amen e~ emelte .Ib...hle ieoen-eo nof Ceyon -tem 66)nrivd-
s ubstantisepr and the ylon delegastPiont reser ved. it Xsiio- onths .
graph, -
Tlh 9ew Zhea wila dnd & aigo. 4 r a ni paragrtsh 4res)ervation-t.e -b
of ttheGeneyraf.
/The Brazilian E/CONF.2/C. 3/59
Page 12
The Brazilian delegation reserves provisionally its position on this
paragraph.
Paragraph 7
The Norwegian delegation has reserved provisionally its position on this
paragraph.
Paragraph 8
Sub-Paragraph (a)
The Chinese delegation has withdrawn its amendment (Item 72) and its
reservation recorded in the Geneva draft in view of the revised text of this
sub-paragraph.
Ceylon and Mexico have accepted the new text and withdrawn their proposal
(Item 71) to delete paragraph 5 of the Geneva draft.
The Argentinian amendment (Item 73) received no support.
Sub-Paragraph (b)
This sub-paragraph was redrafted in order to make it clear that nothing
in Article 18 could be construed to sanction the exemption of domestic products
from internal taxes imposed on like imported products or the remission of such
taxes. At the same time the Sub-Committee wishes to record its view that
nothing in this sub-paragraph or elsewhere in Article 18 would override the
provisions of Section C of Chapter IV.
Paragraph 9
The Sub-Committee was in agreement that the addition to this paragraph
proposed by Australia was unnecessary because the words "to the fullest
practicable extent" in the recommended text have the same intent as the words
"having due regard for the legitimate purposes of a particular price control
measure and the legitimate interests of the prejudicially affected Member or
Members" which Australia proposed adding at the end of the paragraph. The
Australian delegate accepted this view.
The Norwegian and United Kingdom delegations have each reserved
provisionally its position on this paragraph.
Recommended Consequential Changes
1. If the proposed new paragraph 7 of Article 18 is adopted, paragraph 5 of
Article 22 would have to be amended as suggested in Part III.
2. It is recommended that paragraph 2 of Article 30 be amended (a) to bring
it in line with the wording of paragraph 8 (a) of Article 18 so as to avoid
difficulties of interpretation and (b) to extend the "fair and equitable
treatment" rule established in paragraph 2 of Article 30 with respect to
imports for governmental purposes excepted from the provisions of paragraph 1
of Article 30 to the laws, regulations and requirements relating to procurement
for governmental purposes referred to in paragraph 8 (a) of Article 18.
/The delegate E/CONF. 2/C.3/59
Page 13
The delegate of Ecuador stated that imports into Ecuador of tobacco
and spirits by the state monopolies are subject to import duty end, in
addition, to an internal tax levied at the time of sale which does not apply
to the domestic products. He inquired whether the maintenance of this tax
would be contrary to the provisions of Article 18. It was the view of the
Sub-Committee that if the tax were treated as a negotiable monopoly margin
under Article 31 (i.e. an "import duty" in the sense of paragraphs 2, 3 and
4 of Article 31), it would not fall within the scope of Article 18. The Sub-
Committee considered that this would be accomplished by notifying the
Organization that the charge concerned is a monopoly margin (or "import duty"
in the sense of Article 31) which is subject to the provisions of Article 31.
It might also be desirable to change the legal designation of the charge so
as to refer to it as a monopoly margin rather than an internal tax.
In connection with the opinion expressed above, the Sub-Committee
recommends the following interpretative note to Article 31:
"The tern 'maximum import duty' would cover the monopoly margin
which has been negotiated or which has been published or notified to
to the Organization, whether or not collected at the customs as an
ordinary customs duty."
The delegation of Ecuador reserved its position on Article 18 pending
the Third Committee's consideration of this recommendation.
Article 19
The Sub-Committee recommends the deletion of sub-paragraph 6 (a) of
Article 18, which specifically excepted any internal quantitative regulation
relating to cinematograph films and meeting the requirements of Article 19
from the provisions of paragraph 5 of Article 18, and the introduction at the
beginning of Article 19 of the words "The provisions of Article 18 shall not
prevent an Member from establishing or maintaining internal quantitative
regulations......" so that all special provisions relating to cinematograph
film will be contained in Article 19. No substantive changes has been made
in this Article.
The delegate of Czechoslovakia reaffirmed the views expressed by the head
of his delegation in Committee III (C.3/SP.13) to the effect that cinematograph
films should be explicitly excluded from the competence of the ITO on the
grounds that films, being works of art, are not just simple commercial
commodities or industrial products. However, if the majority of the Conference
favoured the retention of Article 19 his delegation would no longer press its
objections.
The delegate of Norway fundamentally agreed in the view expressed by the
Czechoslovakian delegation. However, as this view had not been sufficiently
/supported, he E/CONF.2/C.3/59
Page 14 supported, he did not reserve his position.
The Argentinian delegate withdrew his amendment (Item 80) in view of the
Sub-Committee's interpretation that the date fixed in sub-paragraph (c) cleary
relates only to discriminatory measures as between foreign films, not as
between domestic and foreign films.
/PART III E/CONF.2/C.3/59 Page 15
PART III
RECOMMENDED TEXT
CHAPTER IV
COMMERCIAL POLICY
SECTION A - TARIFFS, PREFERENCES, AND INTERNAL TAXATION AND REGULATION
ARTICLE 16*
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] within the scope of paragraphs [1 and 2]
2 and 4 of Article 18, any advantage, favour, privilege 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.
(c) bis. preferences in force exclusively between the Republic of
the Philippines and the United States of America, including the
dependent territories of the letter.
3. ...... . . ...
4. The imposition of a margin of tariff preference not in excess of the
amount necessary to compensate for the elimination of a margin of preference
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.
5. The Members recognize 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. Accordingly, the Members
shall co-operate with each other and through the Organization with a view
to eliminating at the earliest practicable date practices which are
irnconsitetzwith this principle.
Interpretative Note
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 prowcious Prnot threlation between those rates. As
* Paragraphs 2 and 3 were not within Sub-Committee A's terms of reference.
/examples: E/CONF.2/C .3/59
Page 16
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:
(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 April 1947;
and
(ii).. the [application to] classification of a particular [commodity]
product [of] under a tariff item other than that [which was
actually applied to] under which importations of that [commodity]
product were classified on 10 April 1947, in cases in which the
tariff law clearly contemplates that such [commodity] product may
be classified under more than one tariff item.
ANNES PERTAINING TO PARAGRAPH 2 OF ARTICLE 16
ANNEX A
List of Territories Referred to in Paragraph 2 (a) of Article 16
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 at 10 April 1947).
Newfoundland.
Southern Rhodesia. E/CONF.2/C .3/59
Page 17
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-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 a margin of tariff preference to replace a margin of
preference in an internal tax existing on 10 April 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
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 called and frozen been and veal. frozen mutton
and lamb, chilled and frozen pork, and bacon [[and hams]. It is the
intention, without prejudice to any action taken under sub-paragraph (k) of
Part 1 of Article 43, that these arrangments 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.] Without prejudice to any action taken under sub-paragraph (.) of
paragraph 1of 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 arrangements or their
replacement by tariff preferences. If after such negotiations have taken
place a tariff preference is created or an existing tariff preference 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 Newv Zealand on 10 Aprl 1947 shall, for
the purpose of this Charter, be treated as a customs duty falling 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 screen
quota fallng within Article 19.
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 territories of the United States of America.
[Republic of the Philippines.] /[The imposition of E/CONF.2/C.3/50.
Page 18
[The imposition of a margin of tariff preference to replace a margin of
preference in an internal tax existing on 10 April 1947 exclusively between
two or more of the territories listed in this Annex, shall not be deemed to
constitute an increase it a margin of tariff preference.]
Recommended Consequential Change in Paragrah 5 (b) of Article 23
5. The provisions of this Section shall not preclude:
(b) restrictions under the preferential arrangements provided for
in Annex A of this Charter, [subject to the conditions set forth
therein.] pending the outcome of the negotiations referred to
therein.
ARTICLE 17
Reduction of Tariffs and Elimination of Preferences
1, Each Member shall, upon the request of [the Organization.] any othertjerationj a
Member or Members and subject to raraaprocedural rngements eystablished b
the OrnIztion, enter into awndcwarry out ith such otheer eemmber or Mmbes
[as the Organizatieon may spcify negotiations directed to the substantial
reductionof the general levels of tariffs and other c harges onimportsand
enos.o tn, ta heelimination of the preferences referredi to, n paragraph 2
of Aiic6le 1 on a reciprocal and muantually taedvt.[us b.a[Tsis hese
negotiationas shll proceed in accordanece witeh th followinlgs ]rue.
2e . goThneitiatons pded for in orovparagraph sproceedaill n
accordance with thefollowing rules:
(a) Such negoltiations lshal be conducted on a selectyive produyct-b
product basis which will afford ppan adecuapote oortyunit to take into
account the needs of individual countries and individual industries.
Members shall be free notg to rant concessions on particular products
and t inhe grag ntinof a concession, theyy ma either reduce the duty,
bind I iat rs then existing level, or undertake not to ra ise't
abov e aspecedifi higher level.
No(, emberb hallb ureequigrndtogrtn au anlaterl concessions,.
or togran t concessions to other Members without receiving adequate
concessions in return. Account shall be taken of the value to ayn
Mmebe or fobtaiing ni nits ow nright and by direct obligation the
indierct conceesions which it woul dothrweise enjoy only by virtue
of Atircle 16. "
the na- n7atennsegetaioh- lti to s-any peific product..;
(i) when a reduction is neg otiatedonly ins thvouree motfad
nation rat e, suchredsuctionpe hall orate automatically
ce,or e4e. n0te lmrgiaggrnnef p eferei rnceapplicable
that tooprdt:uc
i) when _aAi E/CONF.2/C.3/59
Page 19
(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.
[b] (d) The binding against increase of low [tariffs] duties or of
[tariff] duty-free treatment shall in principle be recognized as
a concession equivalent in value to the substantial reduction of
high [tariffs] duties or the elimination of tariff preferences.
[c Account shall be taken of any concession which either Member is
already extending to the other Member by virtue of previous.
negotiations regarding tariffs and preferences pursuant to this
Article.]
(e) Prior international obligations shall not be invoked to
frustrate the requirement under paragraph 1 of this Article 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.
[d The results of such negotiations shall be incorporated in the
General-Agreement on Tariffs and Trade, signed at. ............ on
...........1948 by agreement with the parties to that Agreement,
and thereupon the parties to such negotiations shall become
contracting parties to the General Agreement on Tariffs and Trade,
if they are not so already.]
3. The negotiations loading to the General Agreement on Tariffs and Trade,
concluded at Geneva on 30 October 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) of this Article. - .
IP ~- E/CONF.2/C.3/59
Page 20 [2] 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 its economic position and the
provisions of the Charter as a whole] having regard to all relevant
circumstances, including the developmntal and other needs and the
general fiscal structuree 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 [requirements]
provisions of paragaphs l and 2 of this Article, the Organization may
[determine that any] waive the requirements of Article 16 to the
extent necessary to permit the complaining Member of Members
[shall, notwithstanding the provisions of Article 16, be entitled] 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 .tarriffs higher than
would otherwise have been applicable, such other Member shall then be
free, within sixty days after such action [is taken, to withdraw]
becomes effective, to give written notice of withdrawal from the
Organization. The withdrawal shall take effect upon the expiration of
sixty days from the [date] day on which [written] such notice [of such
withdrawal] is received by the Organization.
[3] 5. The Provisions of this Article shall operate in accordance with the
prpvosons of Article 81.-
Interpretative Notes.
Article 17 - -'
eroviions of t hi s Articlemb Members from conclnaie sdcnieventXM$
aing existing bne biala tarrif ateolr m4 ,r-whricnh ael otari npt
GS=GenerAgreement onaTal WO~g3 t he priovided atthsicsq 4cat Suh
gccnts- noiset- twih he rlevant principlertis A,ofcle 17that a dri9
hon cnse -maadaembyii >rrbeun such aeemes are ntgenaerselito zsd -aeal
rme s cinr~ardanitw irtcel wc6 e 1la];-.;.~
sta idat an etn aro t tex (rtler than a ge-hralnta g~be
rmly applicable to a consppir iel3 mber unbpoodecrs)wwhich it apslieups) d
toa product notdudprod edstic.ome in subalantlal ysatictiesuitould awopbe
treated as a customsy dut under this Articn le iaasny c eh inwi cahi atrff
/ csnceaion on the E/CONF.2/C.3/59
Page 21.
concession on the product would not be of substantial value unless it is
accompanied by a binding or a reduction of the tax.
[Paragraph 1
The undertaking to negotiate regarding preferences necessarily implies
that prior international commitments to grant particular preferences will not
be permitted to frustrate the undertaking to negotiate. For this reason the
provisions of sub-paragraph 1 (a) of the New York draft have been omitted
from the Charter as being implicit. -
Obviy ously anagreement refached afecting prefprerence s ovidedfor in
p oom;i rinorwct oul ,req unr te r) i--belemented, such change
in the latter as mig ht benecessa ryto give affecet to eth rageeemnt. This
change would either have to be agreed between the parties to the prior
mmoamtent or, if, htey. culd not agreee, tho aprty wishing to make the .cahnge,
in order to proceed, would have to terminate the prior ocmitmment in accordance
with its term].s . .. . .* -.
~ra~ah2 {) - :..;-.,-.-;.
In the event f the devaluation of a Member's currency, or of:rise
in ies. he effects of such devaluation or rise in prices would .be a
matiter for consideration durnG gotations in order to determine, .frst,
th ane change the protective incidence of the specific duties, if..of,
the Memificber concerned and, secondly, whether the binding of such spec
duties represents in fact a concession equivalent in value to the
subfstantial reduction of high duties or the elimination of tarif.
,eerences.
ATICLE 18 ,
ational Treatment a Internal Taxation and Reguxtion
1. The Members reggo tat internal taxEs ndcharges, and laws.,_
iulaticsor requirements affecting the internal sale, offering for sale,
rchase, transportation, distribution, or use of productegd.ern
quantitative rdlticn equiring the mixture, processing or use of products
in specifimed amounts or proportions, should not be applied to iported or
sticdMticprdcts.soas t afford protection to d produti
,,eprodus of ananyboth Meberber cuntry, imported into, Der Mem
t countrjy s hall be exempt frEttrrbe sub lectrectly or indLirecy,
to internal taxes andor Ote nted inrnal charges of any .ki,p, n
excess of those applie d kdiroectly or indirectly tolie dmestic
product. [rnatiocnael oriwgichn. Mreoreover, in oas in 13hthe
is rod no subsantiial-domestsic puction of lke product national
plornigi orni no Member shall apyx swon ew ncreased internal ta the
products of other Member countries for the purpose of affording
/protection to the E/CONF.2/C.3/59
Page 22
protection to the production of directly competitive or substitutable products
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.] Moreover,
no Member shall otherwise apply internal taxes or 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 10 April 1947, in which the import tariff 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 until
such time as it can obtain release from its trade agreement obligations in
order to permit the increase of such tariff to the extent necessary to
compensate for the elimination of the protective element of the tax.
[2] 4. The products of any Member country imported into any other Member country
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 internal sale, offering for sale, purchase,
transportation, distribution, or use. 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.
[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.]
5. No Member 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 E/CONF.2/C.3/59
Page 23
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.
[4] 6. The provisions of paragraph [3] 5 shall not apply to [:
(a) any Internal quantitative regulation relating to
cinematograph films and meeting the requirements of Article 19;
(b)] any [other measures of] internal quantitative
[control] regulation in force in any Member country on
1 July 1939 [or] 10 April 1947 or on the day on which
the Final Act of the United Nations Conference on Trade
and Employment is signed,* at the option of that Member; Provided
that any such [measure] regulation which would be in conflict with
the provisions of paragraph [3] 5 shall not be modified to the
detriment of imports and shall be subject to negotiation[s for its
limitation, liberalization or elimination in the manner provided
for in respect of tariffs and preferences under Article 17] and
accordingly shall 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 supply.
[5] 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 governmental
purposes and not [for] with a view to commercial resale or with
a view to use in the production of goods for commercial sale [,] ;
(b) [nor] The provisions of this Article shall [they] not prevent
the payment of subsidies exclusively to domestic producers, [only
of subsidies provided for under Article 25,] 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 purchases of domestic
products.
* If the Conference agrees to delete from Article 100 the words "DONE at...
this....day of....One Thousand Nine Hundred and Forty...." and to
substitute the words. "the. date of this Charter shall be the data upon-
which the Final Act of the United Nations Conference on Trade and
Employment is signed", the words "or on the date of this Charter" should
...be substituted for the words "or on the day on which the Final Act of the
United Nations Conference on Trade.and Empoyment Is signed .
/2.. The Members E/CONF.2/C .3/59
Page 24
2. The Members recognize that internal maximum price control measures,
evan 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.
Interpretative Notes
Article 18
If any internal tax or other internal charge, or any law, regulation
or requiremernt of the kind referred to in paragaph 1, applying to an imported
product and to the like domestic product, is collected or enforced in the case
of the imported product as the time or point of importation, it 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
governments within the territory of a Member is subject to the provisions
of paragraph 3 bf Article 99. The term "reasonable measures" in the
,,; ;o
last-mentioned paragrpeaaph would not require, for example, the rel of
existnational impislimposeation authorizing local governments to Lz ternal
taxes which, although technically inconsistent with the letter of Article 18,
areirsth n hi'einconsistent with its epiit-isuc rpea would result in
a serious financial hardship for the local governments concerned. With regard
to taxation by local governments which inconsistent with both the letter
and spirit of Article 18, the term "reasonable measures" would permit a
Meber ro ei mater they inco nrsistent taxation gaduall over-atsition
period if abrupt action would create serious administrative and financial
dfficulties..
Parmah2.
A tax conformieng to the requi rements opf. th first sentenceof pargrah 2
Ikd e considered to be inconsistent with the second sentence only in cases
where cptitica involved between, on the one hand, the taxed product,
and on the other hand, a directly competitive or su bstitutable productwhich
was not similarlytaxed.
PararphT . - - -
Reaichonnenhentith frst sentence of p-ragrap 5 sbll not
be considered to be contra icto the second sentence in any case -irball
of the products subjomestiect to the regulations are producedtically in
substantialuntities.g -Ar tot bed as bein
/consistent with E/CONF.2/C.3/59
Page 25
consistent with 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.
Recommended Consequential Changes
Article 22, Paragraph 5
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 [and
to any internal regulation or requirements under paragraph 2 of Article 18],
Article 30, Paragraph 2
2. The provisions of paragraph 1 of this Article shall not apply to imports
of products [for immediate or ultimate consumption in governmental use and
not otherwise for resale or for] 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. With respect to such imports, and with respect
to the laws, regulations and requirements referred to in paragraph 8 (a) of
Article 28, the Members shall accord to the trade of the other Members fair
and equitable treatment.
Article 19
Special Provisions Relating to Cinematograph Films -.
y Memer establishes or m]aintansh7 Te provisions of Article 18
shall not prevent any Member mfro establishing or maintaining internal
quantitative regulations relating to exposed cinematogh films []rapn. Ay lms n
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
oalf nation 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 nnof natioal
origin under a screen[no] quota, screen time, including screen time
released by administrative aomction fr minimum time reserved for films
of national origin, shall formally or in effect be a]llocated not be
allocated formally or in effgect amon sources of supply.
(c) Notwithstanding the provisions of sub-paragraph (b[M) abov]e embers
any Member may maintain screen quotas conforming ctno thens] [oditio
requirements of sub-paragraph (a) which reserve a minimum proportion
/of screen E/CONF .2/C.3/59
Page 26
of screen time for films of a [national] specified origin other than
that of the Member imposing such screen quotas; Provided that no such
minimum proportion of screen time. shall be increased above the level
in effect on 10 April 1947. -
(d) Screen. quotoas shall be subject to negotiation [for their limitation,
liberalization or elimination in the manner provided fo n respect of
tariffs and preferences under] and shall according be treated as
customs duties for the purposes of Article 17. . |
GATT Library | qg379qg4360 | Report of Sub-Committee B (Proposed new Article 18A) | United Nations Conference on Trade and Employment, March 6, 1948 | Third Committee: Commercial Policy | 06/03/1948 | official documents | E/CONF.2/C.3/76 and E/CONF.2/C.3/58-77/REV.1 | https://exhibits.stanford.edu/gatt/catalog/qg379qg4360 | qg379qg4360_90190179.xml | GATT_146 | 347 | 2,434 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/76
ON DU 6 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
REPORT OF SUB-COMMITTEE B (PROPOSED NEW ARTICLE 18A)
1. Sub-Committee B was established at the eleventh meeting of the Third
Committee, held on 16 December 1947, for the purpose of studying, and
making recommendations regarding the Norwegian proposal for a new Article 18A.
2. Delegates for Argentina, France, Greece, India, Norway, the Union of
South Africa, United Kingdom and Venezuela were appointed mombers.
3. At the first meeting Dr. J. E. HO##LOWAY (Union of South Africa) was
unanimously elected Chairman of the Sub-Committee which held five meetings.
4. The Sub-Committee discussed fully and in great detail the Norwegian
proposal (document E/CONF.2/C.3/6, page 16) as well as an alternative
proposal submitted by the United Kingdom delegation.
5. It also had the benefit of. hearing the views of representatives of
Australia, Brazil, Ireland, New Zealand, Sweden and Switzerland.
6. Before the deliberations of the Sub-Committee were concluded, the
International Maritime Conference met in Geneva and decided upon the
establishment of the Inter-Governmental Maritime Organization the functions
of which cover the purpose of the proposed Article 18A as well as of
Chapter V insofar as it relates to shipping.
7. In view of this the Sub-Committee arrived at the opinion that in order
to avoid an overlapping of functions and a possible conflict of activities
between the two organizations it would be advisable not to deal with questions
of shipping in the Havana Charter.
8. According, the Sub-Committee agreed to recommend to Committee III
(a) that Article 18A should not be inserted in the Havana Charter,
the countries having made and supported the proposal not insisting
upon its insertion, and
(b) to recommend to Committee IV that shipping be excluded from the
provisions of Chapter V by adding to Article 50 a new paragraph as
follows:
"5. The provisions of this Chapter shall not apply to shipping."
9. The representative of Venezuela reserved the position of his delegation
on the decision of the Sub-Committee. |
GATT Library | sn514sh5219 | Report of Sub-Committee C to Committee III | United Nations Conference on Trade and Employment, January 28, 1948 | Third Committee: Commercial Policy and Sub-Committee C: General Commercial Provisions | 28/01/1948 | official documents | E/CONF.2/C.3/38 and E/CONF.2/C.3/10-38 | https://exhibits.stanford.edu/gatt/catalog/sn514sh5219 | sn514sh5219_90190131.xml | GATT_146 | 9,383 | 61,217 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/38
ON DU 28 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE C - CHAPTER IV, SECTION E - GENERAL COMMERCIAL PROVISIONS
REPORT OF SUB-COMMITTEE C TO COMMITTEE III
Chairman: Mr. C. E. MORTON (Australia)
PART I
1. Appointment
In its fifteenth meeting, held at the Capitolio, Havana, on
19 December 1947, Committee III appointed Sub-Committee C (E/CONF.2/C.3/SR.15)
to deal with Section E of Chapter IV as contained in the Report of the Second
(Geneva) Session of the Preparatory Committee of the United Nations Conference
on Trade and Employment (document E/PC/T/186).
2. Terms of Reference
The following terms of reference were given to the Sub-Committee by
Committee III:
(a) to consider all proposed amendments to Section E of Chapter IV
as contained in document E/CONF.2/C.3/10 together with suggestions
made during the discussions of Committee III and any other amendments
that may be presented during the work of the Sub-Committee; and
(b) to recommend texts of Articles 32 - 39 which would reconcile the
various points of view expressed.
3. Composition
The representatives of the following countries were elected members of
the Sub-Committee: Afghanistan, Argentina, Australia, Canada, Cuba, France, -
Lebanon, Mexico, Netherlands, Norway, Pakistan, Poraltug, UnitKed ingdom,
United States anUrd u yuga.
After the first two meetings the representative of wNyora renounced his
membership of the -SubCommittee and the representative of the Union of
South Africa was elected to membership of the Sub-Committee.
The Sub-mComittee unanimously elected at its first meeting
Mr. C. E. Morton (Australia) as its Chaairmn.
4. Attendance
A number of representatives of delegations who were not members of the
Sub-Committee attended as observers and in manys caes took part in the
/discussions E/CONF.2/C.3/38...
Page 2
4scussns on ' paicrtular endmentsamifor which they were prarlmily
resnsiblepo or iniwhch thehy ad special interest. A representative of the
International Monetary Fund and of the Statistical Office of the United
Nations also participated in the work of the Subomm-Cittee.
5. Working Parties
The Sub-Committee appointed the following Working Parties to deal with
special pnosiwht ichm eerged during the discussions:
Working Party I- composed of the representatives of.Austriala, Brazil,
Cuba, Lebanon, Netherlands, United Kingdom and United States, to
consider Article 33.*
Working Party II - composed of the representatives of France,
United Kingdom, United States and Uruguay, to considearar pgraph 3
of Article 34.
Workingrty IiiyII -composed of the representatives of Australia,
-aiti, Lebanon, Peru, United King domand the United States, to
consi erd agrarea1h l of Article 35.
Working Pa Iy-- co.somposed of the representatives of Afghanistan,
Australia, France, Lebanon, Pakistan, United Kingdom and the
United States to consider an amendment calling for sytui dfredte$
tovsrimprovement oen f nraisportcfaoillities for traffic in transit.
Working Party V - composed of the representatives of Australia, Cuba,--
e,sce,- United Kingdom andUnie tEited States to consider an-
esendmst.cnoncerxlg the usage of regional and gehograpbamcal nis
for purpo sae oftriff classification.
Working Par ty VI- composed of the representatives of Australia,
Urwani, U IedYKingdoni Ur4ted States and of the StatisticaliOfflce
of the United Nations, to consider drae~rif A of-rticle 38.
These Working Pasrtie, together with several Drafting Groups w hichwere
crnonceed with the improvemeft ok the text of several Articles, greatly
litalitated thrk of oi' She-QubtiCommttee; their comprehensive reports proved
xn llentlhelp towardverds spee in .up.the progress of the;discussions.^'
6. Meetings . -
The Sub-Committee eld nineteen meetings. Thanki to-the spinii Qf
co-operatiqn~pmong its members, the Sub-ComaIttee reached UnanimOus agreement
o enablodn the groet MJorita C mesttei' discussed. This cooperation e
hort the Sub-Coume.Ite too l ete iwork within a rt space of tiU2.
7. Secretariat *- --
The Sub-Committee in general, and the Chairme in particular, Wi -
place " recor$:tir'appeoiatin of the courteous, diligent~ and aifolen
mener in whici ke-Scret'Irat at all-times prformed'Itddutiea ai
/Wch ha E/CONF.2/C.3/38
Page 3
which has been in no small measure responsible for the early conclusion of
this Sub-Committee's tasks.
8, Interpretative Notes to the Charter
The Sub-Committee was aware of the decision of the General Committee of
the Conference to eliminate whenever possible the Interpretative Notes
appended to the Geneva Draft. The Sub-Committee could not fail to recognize
however, the special character of the Articles of Section E of Chapter IV in
regard to which many specific provisions of an administrative and/or
procedural nature, rather than principles of commercial policy, required
recognition.-.*
wasvw reeoefcre considered desirable to retain certain Interpretative
NOteas su SUch i numb00 er of cases where the content of the Note could not
readily be incorporated in thex tet of the Articwileo thut reningder the
text ulyund m cuboeersm. As a result of discussions and rmmencoedatsioon f
Working Parties certain additional Notes are presented. for acceptance of
mC=itee III,a &lhogufhcertain Notsea ppearing to the Geneva text have been
deleted.
The Su bomCmittee did not consider the question of the manner in which
the Inteprretatiev Notes should be appedned to the Charter.
.9 R peort-
On behalof f the S-ubmmiCottee the aChman has thh bonour to present,
the Report of SubmmComittee C tommoanittee III as contained in this dmentm
iVth the recmmenddation:
that ommittteeIII7 ap rove the revised texts of the Articles of
Section E of Chapter IV asseat forth in Part III aswvell as the
Intepuretative Notes thereof. E/CONF.2/C.3/38
Page 4
PART II
Part II of this Report contains the conclusions reached by the
Sub-Committee in respect of each of the Articles 32 - 39 inclusive of the
Geneva Charter. Amendments and suggestions proposed in connection with
those Articles are contained in documents E/CONF. 2/C.3/10; E/CONF.2/C.3/10/
Add.1 and 2; E/CONF.2/C.3/10/Corr.1; E/CONF.2/C.3/10/Add.3 and 4; and
E/CONF.2/C.3/10/Add. 3/Rev.1.
Thorough consideration was given to all amendments and suggestions
submitted and reference to them will be found in this Report. No mention
has been made of proposals which were withdrawn before consideration by
the Sub-Committee.
A revised draft of Articles 32 to 39 of the Geneva Report, as the
Sub-Committee recommends them for this approval, is given in Part IIl, with
proposed deletion in square brackets and proposed additions underlined.
/ARTICLE 32 E/CONF.2/C.3/38
Page 5
ARTICLE 32 -
Freeda of Transit
The proposals and suggestions submitted in conection with this
Article are contained in Items 1 to 9 of document E/CONF.2/C.3/10. All were
thoroughly discussed by tommhe Sub-Cittee.
The representative of Chile withdrew his reservation (Item 1)
The proposal of Argentina (Item 2) that the phrase "and also vessels
and other meanss of tranport" be deoeted frcm lines 1 and 2 of pa1agraph i
founu no support in tommSub-Cmamittee.
To meet the proposghanisAf ihsnitan (Item 3) a note to paragraph 1 was
appended in order to cla-ify thesin-tran it status of goods which were
assembled, or disassembled, or reassembled in the transit country solely for
convenience of transport.
At the suggestion of the representative of Chile (not Member of the
Sub-Cconittee) tom0e Sub-Cmittee agreed to state in its report that a
movement between two pointss min the ae country passighng throu another
country was clearlansmy "in-trit" through the other country within the
meaning of paragraph 1.
os'e prop4loof the representativge of ArSnttina (ILm 4) to delete
paragraph-:2 received no support in thomme Sub-Cittee.
The proposal of the representatihve of Cile (Item 5 as modified) orally
that a note be appended to paragraph 2 to the effect that this Article does
not preclude agreemtweents been neighbouring countriese for th regulation of
transit in respect roof thei wn trade was not approved because such
nagreemnL are clearmissly periele under the terms of the Article if they do
not prejudice the interests of Mother embers in violation omf tnhe -f-
ponroy-im of the Charter, and if they do not limieto fre3c of transit for
other Members, The sertative epreaiof Chle reserved his position.
At the suggestion ofrepresentativ the theye of Netherlands and on the
mrec-edation of a Workinartg P:hesSub Committeeteep apigved thel de3eiao
of the Notependem ad toragraph pa5 of thenevaeDva raft (Item 6). It was
agdree that a nparapragea ?ph beded ad to thre Aticle to state that.
sportrarotatinnges ocha n tirain transitffc did nomt coe within the purview
of Article 32, but wsubjere ect to the isponrosis ofa rpargaph 2 of
Article 18 of tenehe eva DraTft. hois wulqud reire the deletion of the
words "for trortationansp orse t from the third ho" lfromine the end of
paragraph 3 of Article 32. Anysequent amendment of subs snubtace in
Article 18 may necessitate a revision of the text of this paragraph.
The proposal of the representative of France (Item 7) to delete the
provision in paragaph 6 that requirements of "dirconectn sigment" should be
/limited to E/CONF.2/C.3/38
Page 6
limited to those existing on the day of signature of the Charter and requisite
to eligibility for entry at preferential rates of duty, or related to the
Member's system of valuation for duty purposes did not receive any support in
the Sub-Committee. A further proposal of the representative of France for the
continuance of a Members requirement of "direct consignment" for exemption
from surtaxes likewise received no support.
The proposal of Afghanistan (Item 46, originally made with reference to
Article 35) was regarded as appropriate for adoption with acme modification,
but was considered to be more pertinent to Article 32. On the recommendations
of a Working Party the Sub-Committee approved the inclusion in Article 32 of
a new paragraph which specifically authorizes the Organization to make studies
and recommendations and promote international agreement concerning measures
designed to further the broad objectives of the freedom-of-transit provisions
of the Charter, and under which Members agree to co-operate with each other
directly and through the Organization, to this end.
There is no doubt that the general functions of the Organization as set
forth in Article 69 are sufficiently broad to authorize the action
contemplated by the new paragraph but the Sub-Committee felt, in view of the
great importance of this matter to many countries, particularly to those
countries which have no access to the sea, that it was desirable to make
specific provision for the matter, as has been done with regard to other
matters of outstanding importance in other Articles of the Charter.
While the implementation of the provisions of this paragraph must be
left to the Organization and to the Members directly concerned, it is the
Sub-Committee' s understanding that these provisions would afford a specific
basis for studies and recommendations by the Organization, and for one Member
to seek the co-operation of another, concerning measures to facilitate
"traffic in transit" generally, and with regard to special arrangements for
transit to and from countries which do not have access to the sea. The
Sub-Committee believes that, in the case of such countries, special
arrangements regarding transport, loading and unloading, storage and
warehousing et cetera may be necessary to enable such countries filly to
participate in and. promote the expansion of international trade envisaged
by the Charter.
The representative of Chile (not Member of the Sub-Committee) reserved
his position with regard to the text of paragraph 9.
/ARTICLE 33 E/CONF.2/C.3/38
Page 7
ARTICLE 33
Anti-dumping and Counterviling Duties
- . 1'..
This Artiolee and the proposE/CONF. to amnd its content (/CO2/C.3/10,
I tems 10 and 25) developeidconsiderablmme discussion n the Sub-Coittee as
a result of a wmiaiivergency osf views aongst Members-a o the means
requisite to afford protection against dumping.
At one end of the snge of views certain countries believed that the
prrimary object of the Aticle should be to restrict abuses and evasion of
o0=is by Members under the guise of measures against dumping or
subsidization. At the opposite rend, other co-1ntieso(Isems 1045) prgpoaed
that the Artxpcle should be epanded to include a condemnatnion of dumping ad
to cover forms of dumping other than the injurious sale of merchandise for
export &t less than its normal value; it was sought in the Charter to include
an express authorization for any Member to combat all forms of dumping and
subsidization by any measures the Member should see fit to adopt.
The various proposals were thoroughly discussed and statements by
representatives of countries not Me-bers of the Sub.Committee were taken
into account. All proposals and suggestions were referred to a Working Party
whose first report led to further discussimon in the Sub-Comittee with the
view to arriving at a compromise. The matter was then referred to an
enlarged Working Party for further consideration.
The Warking Party fin-lly produced a compromise text which was approved
by all Membemms of the Sub-Cosittee except the reArgresina,entative of Eent
who reserved his position. The text of the two reports issued by the
Working Party has been circulaEteONd.2as. dCcument /CF2/C3/0/18. The
representative of Czechoslovakia, whose delegation was not represented on
theiSub-Committee, Indicated that he was not fully satisfied with the
compromise achieved.
It gas however the Seneral-Ciew of the SubCoommittee that the point
of chief concern to Czechoslovakia and some other countries (i.e. adequate
maea for dealing with abusenecessarMember uneceassTilumpinging anti-dw*IZ4
or countervailing duties) was adequately covered by the general provisions
of the Charter, particularly by Articfes 41 and 89 o' the Geneva Draft.
The Article as agreed tm by the Snb-moaminjueree coldesne Wurious "price
dumping" as defined therein and does not relate to other types of dumping.
The Sub.oumttee desires it to be undewstood that, Vhere the word
"industny" Is rtic it the Attidle, it includes suchsactivities ad agriculture,
forestry, mining, etc.manas well as.=nufacturingi
/The Sub-Committee Page 8 -t...
.
mmitee agreed to the deletion of paragraph 6 of the Of th
ft which expressly prohibited the use of measures other than t
ing or countervailing duritieagainst dumping or subsidization. Ii.zationIt
th the definite understanding that measures other than compensatorytory
-dumping or countervailing duties may not be applied to counteractt
umping on subs diiation except in so far as such other measures ar
pperimitted under other provisions of the Charte.
TThe Interpretative Noteto pairagraph 1 was revised to clarify the bas
fofor calculating the "margin of dumping" in cases within its purvie
conform conform in certain other respects to the corresponding Note in the G
Agreeozentment ffa rariffand e.
It was ee.thagreed that a new Interpretative Note should be appe
paragapparagraph 2 to answer any doubt that a Member could require secuty
the "pthe "payment of anti-dumping or countervailing duty pe inal'
deterdetermination of the facts in cases of suspected dumping or subsidiz
The finThe final sentence of ph 5 of the Geneva text (paregsaph agrf
the proposed text) which contains a reference to "conditions prescribed In
Article 27", Vill rewille-review should a substantial orange ch wade atmthic
Conference in tbe "conhe "conditions" wn in psragreparaaph 1ticle 27 t thof
Gegnea tnevaIn relition to-syste s for the stabi1izsa*liztion i=7 prOmary p E/CONF.2/C.3/38
Page 9
ARTICLE 34
Valuation for Customs purposes
The Sub-Committee found very little to change in this Article. It
agreed that it would, not be feasible now or in the reasonably near future to
fix a specific time limit for compliance with paragraph 2, and that the
expression "at the earliest practicable date" sufficienctly and correctly
expresses the time for compliance. It was of the opinion further that the
Note to paragraph 2 of the Geneve Draft (Item 26) was unnecessary and should
be emitted.
To meet the purpose of an amendment proposed by Argentina (Item 27)
it was agreed that words should be inserted in paragraph 2 to make it clear
that a Member need respond to a request for a review of its customs
valuation procedures only if such request is made by another Member directly
affected by such procedures.
During the discussion of the proposals of Uruguay and Chile (Items 28
and 29) It was revealed that in certain countries it has been the practice
to apply ad valoram tariffs to established values of goods which remain
fixed for various periods of time. It was agreed that, in such cases, the
ad valorem rates are, in practical result, the equivalent of specific
duties so long as the established values of goods are not changed. It was
agreed that a Note recognizing this fact should be appended to paragraph 3.
However, it was agreed (the representative of Chile, non-member of
the Sub-Committee reserving his position) that it would not, and should not
be compatible with the letter or spirit of Article 34 to accept the principle
of variable schedules of "fixed values" for products subject to ad valorem
rates of duty.
The Sub-Committee adopted the substance of a proposal of Uruguay (Item 30)
and it was agreed that the first paragraph of the Note to paragraph 3 of
the Geneva Draft should be amended as to provide expressly for the
presumption that contract prices may represent the basis for establishing
"actual value' in the case of government contracts in respect of primary products.
The proposal of the delegation of Argentina (Item 35) that paragraph 5
be deleted found no support in the Sub-Committee. The Sub-Committee agreed
to accept the substance of the proposal of Uruguay (Item 36), and an
Interpretative Note was appended to paragraph 5 stating that if compliance
with that paragraph would result in decreases in amounts of duty payable,
the Member concerned was allowed a reasonable time to obtain adjustment of
any international agreement which bound the rates of duty.
/In order to E/CONF.2/C.3/38
Page 10
In order to obviate any misunderstanding of the concept of paragraph 5,
sub-paragraph (d) of that paragraph was set up as a special paragraph.
/ARTICLE 35 Page 11 E/CONF.2/C.3/38
ARTICLE 35
Formalities Connected wth
The amendments and suggestions to Article 35 are cotained in Items 38
to 47 of document E/CONF.2/C.3/10 and document E/CONF.2/C.3/10/Add.1 and 2.
They were all thoroughly discussed and partly referred to Working Parties
which reported on them to the Sub-Committee.
The discussion of amendments proposed by Argentina, Turkey and Peru
(Items 38, 39, 43 and E/CONF.2/C.3/10/Add.2) revealed that the intended
scope of. this Article was not clearly indicated in the Geneva Draft. . Particular
difficulty was occasioned by a distinction observed in the Spanish translation
of certain types of governmental charges, It was accordingly agreed that
paragraph 1 should be revised and care should be taken in the translation to
show definitely that this Article relates to all payments of any character
required by a Member on or in connection with importation or exportation,
other than import and export duties, and other than taxes within the purview
of Article 18 of the Geneva Draft.
The representative of Haiti, (not member of the Sub-Committee), who
appeared as an observer, stated that the resultant change in the Article did
not meet the purpose of his proposal (E/CONF.2/C.3/10/Add.1) and he therefore
reserved his position..
he representative of C'ile, (not member of the Sub-Committee), likewise:
present as an observer, also reserved his position.
In this connection the Sub-Committee ase of the unenimous opinion that,
although Article 35 establsh4ed the principle that fees and charges of the
types threein covered should not represent any taxation on imports orexNports
for fiscal or protectivepurpoases, adequate provision was made in other parts
o the Charter for the aeisngg of revenue by means of dutieson impors aand
exports or bynon-ddiscriminatory internal taxes collected on imports a -the
time of importation.
At the suggestion of the representative of Argentina it was ageed dthat
sub-aragarah 22 should beamended d to show clearly that a Member nee . respond
toae request to ndertatke the review of its laws and reullation only1 if
suc 'request i .made b .another Memberdcirectly affected.
- -TheSau-Committee- adopted. the substance of the rwoposal o the delegation
of Uruguay (Item 42) by agreement that an express authorization should be
included in paragraph 3 of the Geneva Draft for studies and recommendations
by the Organization in relation to Customs requirements in respect of
advertising matter and samples for use only in taking orders for merchandise.
/At the joint E./CONF.2/C.3/38
Page 12
At the joint instance of the representatives of Peru (not member of the
Sub-Committee) and the International Monetary Fund it was agreed that the
Interpretative Note to Article 35 (Item 44) should be amended by replacing the
words "with the approval of the International Monetary Fund" by the words "not
inconsistently with the Articles of Agreement of the International Monetary
Fund", since the express approval of the Fund was not required in all cases
covered by the Note.
In view of the retention of this Note the representative of Brazil (not
member of the Sub-Committee) withdrew his reservation (Item 47) concerning
certain charges imposed on the international transfer of payments.
The proposal of Cuba to add to paragraph 1 of Article 16 of the Geneva
Draft a reference to tariff discrimination resulting from the use of.
distinctive regional or geographical names in tariff descriptions was
referred by Committee III to Sub-Committee C.
Although some Members of the Sub-Committee felt that this matter was
appropriate for. Article 16, there was a general agreement that the principle
of the Cuban proposal should be expressed in some Article of Chapter IV of
the Charter.
It was agreed that the principle should be stated provisionally in a
new paragraph at the end of Article 35.
At the request of the Chairman of Committee III the matter is accordingly
referred to Committee III to be considered by that Committee in the light
of any views which may be obtained later from Sub-Committee A of Committee III
on the inclusion of some similar provision in Article 16.
Although the new paragraph is limited to discrimination affected through
the use of distinctive regional or geographical names, the Sub-Committee.
recognizes that discrimination against the products of Member countries by
tariff descriptions can occur other than by the use of distinctive regional
or geographical names. It was not considered practical at this time either
to list all the discriminatory practices or to formulate a general provision
covering them. The matter is undoubiedly one which the Organization will
study under the authority provided for elsewhere in the Charter. The
Sub-Committee desires however, to make it clear that the presence in the
Charter of a provision directed against the use distinctive regional or
geographical names in such a manner as to result in discrimination against
the products of Member countries, is in no sense to be understood as implying
that other discriminatory practices in tariff descriptions are thereby-.-
authorized. - - - -
Tae Subphommittrtiagreed that the order of the peragraaps of A rcle 35
wouldabe more systematic if paragraph 5 of the Geneve Draft were made
paragraph 3 of the Article since it relates only to the matters covered by
paragraphs 1 and 2.
/ARTICX. 36 E/CONF.2/C.3/38
Page 13
ARTICLE 36
Marks of Origin
There were only two suggested amendments to this Article. The delegation
of Argentina proposed (item 48, and modified orally) that paragraph 7 be
deleted, and the delegation of Chile (not member of the Sub-Committee)(Item 49)
proposed that paragraph 7 be amended to include an express statement of the
effect that consumers would not be misled as to the true origin of products
bearing certain types of names if the name of the country of actual origin
were to appear legibly on the label affixed to the product.
Neither of these proposals received any support in the Sub-Committee.
The Sub-Committee accordingly recommends that the Geneva Draft of
Article 36 be adopted without change.
The representative of Argentina reserved the position of his government.
As a result of the discussions on paragraph 7 which have taken place
in the Sub-Committee and at the request of the representative of Chile, it
was agreed that the text of paragraph 7 should not have the effect of
prejudicing the present situation as regards certain distinctive names of
products, provided always that the names affixed to the products cannot
misrepresent their true origin. This is particularly the case when the
name of the producing country is clearly indicated. It will rest with the
governments concerned to proceed to a joint examination of particular cases,
which might arise if disputes occur as a result of the use of distinctive
names of products which may have lost their original significance through
constant use permitted by law in the country where they are used.
The representative of Chile (not member of the Sub-Committee) maintains
his reservation on this Article pending consideration by his Government as
to whether the statement by the Sub-Committee appearing immediately above
satisfies the Chilean position on this matter.
/ARTICLE 37 E/CONF.2/C .3/38
Page 14
ARTICLE 37
Publication and Administration of Trade Regulations
The Sub-Committee considered amendments to this Article as contained in
Items 50 - 52 of Document E/CONF.2/C.3/10.
The proposal of Argentina (E/CONF.2/C.3/10, Item 50) to delete from
paragraph 3 (c) the provision for the right of determination by the
Organization as to whether or not a Member's procedures for review of
Administrative action comply with Charter requirements, was not supported by
any other Member of the Sub-Committee.
The proposal of New Zealand and the United Kingdom (Items 51 and 52) to
the effect that the reference to sub-paragraph (b) at the end of paragraph 3 (c)
was erroneous and should be deleted, was adopted by the Sub-Committee. The
substance of a proposal of Uruguay (Item 37) originally proposed to Article 34,
was adopted by the Sub-Committee with some expansion of its scope and a
sentence was added to paragraph 3 (a) to require that suitable facilities to
consult with the proper Governmental Authorities should be afforded to traders
directly affected by any law, regulation, decision or ruling of a kind
described in paragraph 1.
At the suggestion of the representative of the United States it was agreed
that the word "published" at the end of paragraph 2 should be replaced by the
expression "made public". In the opinion of the Sub-Committee this would make
clearer the intention that the term "published" appearing in the Geneva Draft
did not require the prior public issue of an official document, but that the
effect could also be accomplished by an official announcement made in the
legislature of the country concerned.
/ARTICLE 38 E/CONF.2/C.3/38
Page 15
ARTICLE 38
Information, Statistics and Trade Terminology
The Delegation of Norway proposed a redraft of this Article
(E/CONF.2/C.3/10/Add.3) and the Delegations of Australia (E/CONF.2/C.3/10/Add.4)
and Czechoslovakia (E/CONF.2/C.3/10/Add.3/Rev.1) proposed some changes of this
redraft.
During the course of its discussions of Article 38 the Sub-Committee had
the opportunity of hearing from a representative of the Statistical Office of
the United Nations particulars of the types of activities which are being
carried out by that Office in the fields of international statistics. Members
of the Sub-Committee were impressed by the work being undertaken by the
Statistical Office with the object of providing an international centre for
statistics and avoiding duplication of demands for statistical information
made on countries by various Specialized Agencies of the United Nations. They
were also impressed with the need for the Organization to collaborate with
the United Nations and other Intergovernmental Agencies, as provided in
Article 84, to ensure that the statistics of external trade of Members are
available in a form that will enable the statistical information to fit into
the general pattern of international statistics. They accordingly considered
it important that contact be established as early as possible between the.
Organization and the United Nations (Economic and Social Council) with viewa
to suitable arrangements being made for co-operation in the fields related
to international statistics.
The Sub-Commitete agreed that the Organization has an obligation to
satisfy itself that the statistical information it requires (other than that
referred to in paragraph 1 of the Article) cannot be obtained from other
inter-governmental organizations before requesting such information from
Members.
The Sub-Committee considered the inter-relation of paragraphs 4 and 7 of
teh Geneva Draft and agreed that paragraph 4 relates to the obligation of
Members to give careful consideration to recommendations made to them by the
Organization, while paragraph 7, on the other hand provides for the
Organization to co-operate in studies and make consequent recommendations to
Members.
In view of the opinions expressed by the Sub-Committee the representative
of Norwaywi thdrew his amendment.
/RTICLEA 39 E/CONF.2/C.3/38
Page 16
ARTICLE 39
Boycotts
The representative of the United States stated during the discussions
that the original draft of this Article (Article 17 of the suggested Draft
Charter) was designed to preclude "Buy National Goods" measures and campaigns
by Members an the ground that they were detrimental to the expansion of
international trades. He further stated that, since there was no agreement at
London or later for any stch prohibition in the Charter, and since Article 39
of the Geneva Draft related only to the trade of individual countries and not
to any matter likely to affect the total of external trade, this Article should
be deleted in its entirety and the subject matter should be omitted from the
Charter.
There was unanimous agreement in the Sub-Comittee that the matters
covered by Article 39 were not appropriate for inclusion in the Charter and
that this Article should be deleted.
/PART III E/CONF.2/C.3/38
Page 17
PART III
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 territory of a Member, when the
passage across such territory with or without trans-shipment, warehousing,
breaking bulkm, or change in the mode of transport, is only a portion of a
complete journey beginning and terminating beyond the frontier of the Member
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 my.require that traffic in teansit yhrough its tsrritor bs
entered at the proper customs house, but, except in campes of failure to co.ly
with app acable customs laws%end regulations, such oraffic coming from-:r
going to other Yember countries shalln not be subjectetoysy unnecessary d'la
or restrictions end shall be exempt from cfrom all uties and ,roalal transit
duties or other charges imposed in respect of transi[, except charges rfor
trase]ortamion or thoee7 comnensurate with administrative expenses entailed
bY transit or with the cost of services rendered.
ndAll charges a regulations imposed by Members on traffic in transit to
or from other Member countries shall be reasonable, having regard to the
codittions of the traffic.
5- With respect to all chargea, regulations end formalities in connection
with t:ansit, el ac Member shal Iccord to traffic in transit to or from any
other Member country treatment no less favourablement an the treatnt accorded
to traffic in transit to or from any third country.
6. Each Member shall accord to products whi h have been in'transit through
any other Member country 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 destination without going through such other Member country.
Any Menber shall, however, be free to maintain its requirements of direct
CO~nigne-t existing on the day of the signature of this Charter, in respect of
/any goods in E/CONF.2/C.3/38
Page 18
any good 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 Member's proscribed 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),
8. Transportation charges on traffic in transit shall not be considered as
falling within the purview of this Article but shall be subject to the
Provisions of Paragraph 2 of Article 18.
9. The Organization may undertake studies, make recommendations and promote
international agreement relating to the simplification of customs relations
concerning traffic in transit, the equitable use of facilities required for
such transit and other measures designed to Promote the objectives of this
Article. Members shall co-operate with each other directly and through the
Organization to this end.
NOTE
Paragraph 1
The assembly of vehicles and mobile machinery arriving in a knocked-down
condition or the disassembly (or disassembly end subsequent reassembly) of
bulky articles shall not be held to rendor the passage of such goods outside
the scope of "traffic in transit", it being understood that any such operation
is undertaken solely for convenience of transport.
/ARTICLE 33 E/CONF.2/C.3/38
Page 19
ARTICLE 33
Anti-dumping and Countervailing Duties
1. [No anti-dumping duty shall be levied on any product of any Member
country imported into any other Member country in excess of an amount equal
to the margin of dumping under which such product is being imported.] The
Members 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 a Member country or materially retards the
establishment of a domestic industry. For the purposes of this Article, [the
margin of dumping shall be understood to mean the amount by which] a product
is to be considered as being introduced 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 Member may levy on any dumped
product an anti-dumping duty not greater in amount than the margin of
dumping in respect of such product. For the purposes of this Article, the
margin of dumping is the price difference determined in accordance with the
provisions of paragraph 1 of this Article.
[2.] 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 "countervailing duty"
/shall be E/CONF.2/C.3/38
Page 20
shall be understood to mean a special duty levied for the purpose of offsetting
any bounty or subsidy beatoved, directly or indirectly, upon the manufacture,
production or exportation of any merchandise.
[3.] 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.
[4.] 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 same situation of dumping or export subsidization.
[5.] 6. No Member shall levy any anti-dumping or countervailing duty on the
importation of any product of another Member country unless it determines that
the effect of the dumping or subsidization, as the case may be, is such as
to cause or threaton material injury to an established domestic industry, or
is such as to [prevent or materially] retard materially the establishment of
a domestic industry. The Organization may waive the requirements of this
paragraph so as to permit a Member to levy an anti-dumping duty or
countervailing duty on the importation of any product for the purpose of
offsetting dumping or subsidization which causes or threatens material injury
to an industry in another Member country exporting the product concerned to
the importing Member country. It is recognized that the importation of F
products exported under a stabilization stsGem determined to have conformed
to the conditions prescribed in Article 27 would not result in material
jnJury under the tms of c this paragraph.
. No measure other than eati-dumpi.n or countervailing duties shall be
applied by any Member in respect of any product of any other Member country
for the purpose of offsetting dumping or subsidization.]
NOTES
Paragraph 1
Hidden dumping by associated houses (that is, the sale by [the importers]
an importer at a price below that corresponding to the price invoiced by [the]
an exporter with [which] whom the importer is associated, and also below the
price in the exporting country) constitutes a form of price dumping in which
the margin of dumping may be calculated on the basis of the price at which
the goods are resold by the importer.
/Paragraph 2 E/CONF.2/C.3/38
Page 21
Paragraph 2
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
suspected dumping or subsidization.
Paragraph [2] 3.
Multiple currency practices may in certain circumstances constitute a
subsidy to exports which can be met by countervailing duties under
paragraph [2] 3 or may constitute a form of dumping by means of a partial
depreciation of a country's currency which can be met by action under
paragraph [1] 2 of this Article. By "multiple currency practices" is meant
practices by governments or sanctioned by governments;
/ARTICLE 34 E/CONF.2/C.3/38
Page 22
ARTICLE 34
Valuation for Customs Purposes
1. The Members shall work toward the standardization, as far as practicable,
of definitions of value and of procedures for determining the value of
products subject to customs duties or other charges or restrictions based
upon or regulated in any manner by value. With a view to furthering such
co-operation, the Organization may study and recommend to Members such bases
and methods for determining value for customs purposes as would appear best
suited to the needs of commerce and most capable of general adoption.
2. The Members recognize the validity of the general principles of valuation
set forth in paragraphs 3, 4 and 5 of this Article, and they undertake to give
effect to such principles, in respect of all products subject 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. Moreover,
they shall, upon a request by another Member directly affected, review the
operation of any of their laws or regulations relating to value for customs
purposes 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 Article.
3. (a) They value for customs purposes of imported merchandise should be
based on the actual value of the imported merchandise 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 live 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 custom purposes should
be based on the nearest ascertainable equivalent of such value.
4. The value for customs purposes of any imported product should not
include the amount of any internal tax applicable within the country of
origin or export, from which the imported product has been exempted or has
been or will be relieved by means of refund.
/5. (a) Except as E/CONF.2/C.3/38
Page 23
5. (a) Except as otherwise provided in this paragraph, where it is
necessary for the purpose of paragraph 3 for a Member to convert into its
own currency a price expressed in the currency of 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 International Monetary Fund or by special exchange
agreements entered into pursuant to Articles 24 of this Charter.
(b) Where no such par value has been established, the conversion rate
shall reflect effectively the current value of such currency in commercial
transactions. -
(c) The Organizati on, inagreement with the lntonaltionel Mcaetary
FundJ shalul formIate rules governeng tho conversion by Membersyof anX foreign
currency in respect of which multiple rates of exchange are maintained
consistently with the Articles of Agreement of the International Monetary
Fun . mny"Meaber may apply such rules in respect of oueign currencuxrencies
f r the-pu oses~-of paragraph 3 of this Article as an alternative to the use
o. par values. Until such rules are adopted. by the Organi;ation any Member
mayempliy in-re spect-f 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 currency in commercials tranns.actio
'ad 6'. Nhiingin -thi[pa i5arah]p*7 Aicle shall be construed to require
any Membe rto alte rthe method of converting currencies for customs purposse,
which is applicabl ein ist territory on the day of the signature o ,this
Charter, if such alteration would have the effect of increasing generally
theammounts of duty payable.
f.]J 7. The bases and methods -or determining the value offproducts subject
to duties or other charges or restrictions based upon or regulated in any
manner by value should be table and should be given sufficient publicity to
enable traders to estimate, with a reasonable degree of certainty, the value
for customs purposes.
/NOTES Page 24
NOTES
Paragraph 3 .
(i) It would be in conformity with Article 34 to presume that
"actual value" may be represented by the invoice price (in the case of
government contracts 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 other reduction from the
ordinary competitive price.
(ii) if on the date of signature of this Charter a Member has in
force a system of applying ad valorem rates of duty to established values
which remain fixed for a period of time, the provisions of this Article
requiring the determination of actual value shall not apply so long as the
value established for a particular product remains unchanged.
(iii) It would be in conformity with sub-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.
(iv) The prescribed standard of "fully competitive conditions".
permits Members to exclude from consideration distributors' prices which
involve special discounts limited. to exclusive agents.
(v) The wording of sub-paragraphs (a) and (b) of paragraph 3 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.
Paragrah 5.
If compliance with paragraph 5 would result in decreases 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
date" in paragraph 2 allows the Member concerned a reasonable time to obtain
adjustment of the agreement.
/ARTICLE 35 E/CONF.2/C.3/38
Page 25
ARTICLE 35
Formalities connected with Importation and Exportation
1. The Members recognize that all fees and charges [other than duties,] of
whatever character (other than import and export duties another than taxes
within the purview of Article 18 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 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 of this Article at the earliest practicable date.
Moreover, they shall, upon request by another Member directly affected, review
the operation of any of their 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.
[5.] 3. The provisions of paragraphs 1 and 2 of this Article 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 consular invoices 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.
[3.] 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.
[4.] 5. No Member shall impose substantial penalties for. minor breaches
of customs regulations or procedural requirements. In particular, no penalty
/in respect of any E/CONF.2/C.3/38
Page 26
in respect of any omission or mistake in custom 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
discriminate against products of member countries. Accordingly, the Members
shall co-operate with each other and through the Organization with a view to
eliminating at the earliest practicable date practices which are inconsistent
with this principle.
(Paragraph 6 as appearing above will not be included in Article 35 if
the substance of the paragraph is later incorporated in Article 16).
NOTE - -
Paragraph /3 2.
While Article 35 does not cover the uoe of multiple rates -f
exchange as su[5.] 3.paragraphs 1 and rJ 3 condemn the use of exchange taxes
or fees-as a device for implementing mulciple currowncy practioes; if, h ever,
a Member is using multiple currency exchange fees for balance of payment
rea~o]s pih.th approval/ not inconsistently with the Articles of Agreement
of the International Monetary Fund, the provisiofullf paragraph 2 -fu1y
safeguanc its poeition sirae that paragraph merely requires that the fees
be eliminate& dt the earliest practicable date.
]ABTICLS 36 E/CONF.2/C.3/38
Page 27
ARTICLE 36
Marks of Origin
1. The Members recognize that in adopting and implementing laws and
regulations relating to marks of origin, the difficulties and inconveniences
which such measures may cause to the commerce and industry of exporting
countries should be reduced to a minimum.
2. Each Member shall accord to the products of each other Member country
treatment with regard to marking requirements no less favourable than the
treatment accorded to like products of any third country.
3. Whenever administratively practicable Members should permit required
marks of origin to be affixed at the time of importation.
4. The laws and regulations of Members relating 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 increasing
their cost.
5. The Members agree to work in co-operation through the Organization
towards the early elimination of unnecessary marking requirements. The
Organization may study and recommend to Members measures directed to this
end, including the adoption of schedules of general categories of products,
in respect of which marking requirements operate to restrict trade to an
extent disproportionate to any proper purpose to be served, and which shall
not in any case be required to be marked to indicate their origin.
6. As a general rule no special duty or penalty should be imposed by any
Member 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.
7. The Members shall cooperate with each other and through the Organization
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 the distinctive
regional or geographical names of products of a Member country which are
protected by the legislation of such country. Each Member shall accord full
and sympathetic consideration to such requests or representations as may
be made by any other Member regarding the application of the undertaking set
forth in the preceding sentence to names of products which have been
communicated to it by the other Member. The Organization may recommend a
conference of interested Members on this subject.
/ARTICLE 37 E/CONF.2/C.3/38
Pace 28
ARTICLE 37
Publication and Administration of Trade Regulations
1. Laws, regulations, judicial decisions and administrative rulings of
general application made effective by any Member, pertaining to the
classification or the valuation of products for customs purposes, or to
rates of duty, taxes or other charges, or to requirements, restrictions or
prohibitions on imports or exports or on the transfer of payments therefor,
or affecting their sale, distribution, transportation, insurance,
warchousing, inspection, exhibition, processing, mixing or other use, shall
be published promptly in such a mannor as to enable governments and traders
to become acquainted with them. Agreements in force between the government
or a governmental agency of any Member country and the government or
governmental agency of any other country affecting international trade
policy shall also be published. Copies of such laws, regulations, decisions,
rulings and agreements shall be comunicated promptly to the Organization.
This paragraph shall not require any Member to disclose confidential
information which would impede law enforcement, or 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 or payments
therefor, shall be enforced before such measure has been officially
[published] made public.
3. (a) Each Member shall administer in a uniform, impartial, and
reasonable manner all its laws, regulations, decisions and rulings of
the kind described in paragraph 1 of this Article. 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 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 relating to customs matters. Such tribunals or
procedures shall be independent of the agencies ontrusted 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
time prescribed for appeals to be lodged by importers; Provided that the
/central administration, E/CONF.2/C.3/38
Page 29
central administration of such agency may take steps to obtain a
review of the matter in other 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 a
Member country on the day of the signature of this Charter which in
fact provide for an objective impartial review of administration action
oven 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 [and those of sub-paragraph (b)].
/ARTICLE 38 E/CONF.2/C.3/38
Page 30
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 Oranization, 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 of this
Article 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 of this Article.
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 of this Article.
5. The Members shall make available to the Organization, at its request
and insofar as is reasonably practicable, such other statistical information
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 Organization can obtain the
required information.
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
of this Article. 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 may 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 of this Article, may also study the question of adopting
standards, nomenclatures, 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. /[ARTICLE 39 E/CONF.2/C.3/38
Page 31
[ARTICLE 39
Boycotts
No Member shall encourage, support or participate in boycotts or other
campaigns which are designed to discourage, directly or indirectly, the
consumption within its territory of products of any specific Member country
or countries on grounds of origin, or the sale of products for consumption
within other Member countries on grounds of destination.] |
GATT Library | tp817mp6765 | Report of Sub-Committee E to Committee III | United Nations Conference on Trade and Employment, February 12, 1948 | Third Committee: Commercial Policy and Sub-Committee E (Articles 20 and 22) | 12/02/1948 | official documents | E/CONF.2/C.3/54 and E/CONF.2/C.3/38-57 | https://exhibits.stanford.edu/gatt/catalog/tp817mp6765 | tp817mp6765_90190153.xml | GATT_146 | 6,103 | 39,380 | United Nations Nations Unies UNRESTRICTED
E/CONF.2/C .3/54
CONFERENCE CONFERENCE 12 February 1948
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE E (ARTICLES 20 AND 22)
REPORT OF SUB-COMMITTEE E TO COMMITTEE III
Chairman: Mr. J. E. HOLLOWAY (South Africa)
PART I
1. Sub-Committee E was appointed on 30 December 1947 to examine and
submit recommendations to Committee III on all proposed amendments to
Articles 20 and 22 and was given authority to consult, if necessary, with
Sub-Committee C of Committee II on Articles 13 and 14.
2. The Sub-Committee was composed of the delegations of Ceylon, Chile,
China, Colombia, Egypt, France, Ireland, Mexico, Netherlands, New Zealand,
Peru, South Africa, Sweden, the United Kingdom and the United States.
3. The Sub-Committee at its first meeting on 5 January 1948, unanimously
elected Mr. J. Holloway (South Africa) as Chairman.
4. The Sub-Committee held eleven meetings and established nine Working
Parties to consider particular proposals in detail. All the amendments listed
in the Annotated Agenda (reference E/CONF.2/C.3/7) were fully studied,
together with various proposals arising out of those amendments.
5. The Sub-Committee and the Working Parties enjoyed the benefit of
consultation and co-operation with the delegations of Argentina, Australia,
Canada, Cuba, Czechoslovakia, Denmark, Greece, India, Lebanon, Norway,
Syria and Turkey.
6. On behalf of the Sub-Committee the Chairman has the honour to present
the Report of Sub-Committee E to Committee III as contained in this
document with the recommendation that Committee III approve the revised
texts of Articles 20 and 22 as set forth in Part III of this Report
together with the interpretative notes thereto.
/PART II Page 2 PART II
Part II of this Report contains the conclusions reached by the
Sub-Committee in respect of Articles 20 and 22. Proposed amendments to and
reservations on the Geneva text are set forth in documents E/CONF.2/C.3/7
and E/CONF.2/C.3/7/Corr.3 and Corr.5
A revised draft of Articles 20 and 22 is given in Part III, with proposed
deletions in square brackets and proposed additions underlined.
ARTICLE 20 - GENERAL ELIMINATION OF QUANTITATIVE RESTRICTIONS
(All References are to the Annotated Agenda
Document E/CONF.2/C.3/7 unless otherwise Specified)
General
1. The Sub-Committee cannot recommend the deletion of the Article proposed
by the delegation of Ceylon (Item 26). The representative of Ceylon reserved
his position on the Article, pending a final settlement on the provisions of
Article 13. The representatives of Colombia, Mexico and Peru reserved their
positions on Article 20 until final settlement had been reached on Article 13.
Paragraph 1
2. No amendments were proposed to this paragraph.
Paragraph 2 - General
Amendment of Chile (Item 1)
Argentina (Item 2)
China and Lebanon (Item 3)
Cuba (Item 4)
Cuba (Item 5)
3. A Working Party set up to consider the amendments proposed by Chile and
Argentina (Items 1 and 2) reported that its work had not been completed as it
depended on a proposed amendment to Article 21 and a proposed interpretative
statement by a delegate on the text of that Article. The representative of
Chile reserved his position until the proposals mentioned above had been
accepted and pending the final text of Article 13. The representatives of
Argentina (who was not a member of the Sub-Committee) and Ireland also reserved
the positions of their delegations pending the final text of Articles 13 and 21.
4. The representative of China reserved his position until the general
situation became clearer. The representation of Lebanon (who was not a member
of the Sub-Committee) withdrew his reservation, considering that the problem
of the use of quantitative restrictions by under-developed countries should be
solved under Article 13.
5. There was no support for the amendments of Cuba (Items 4 and 5). The
representative of Cuba (who was not a member of the Sub-Committee) reserved
his position with regard to the latter amendment.
Paragraph 2 (a)
Amendment of Australia (Item 6)
Greece (Item 7)
/China (Item 8) E/CONF.2/C.3/54
Page 3
China (Item 8)
Sweden (Item 9)
Mexico (Item 10)
6. The following text is recommended to meet the amendment put forward by
the delegation of Australia:
"(a) export prohibitions or restrictions [temporarily] applied for the
period necessary to prevent or relieve critical shortages of foodstuffs
or other products essential to the exporting Member country."
7. The Sub-Committee considered the request of the delegation of Australia
that the reference to the term "critical" in the minutes of the proceedings
of Commission A in the Second Session of the Preparatory Committee (document
E/PC/T/A/PV/40 (1) pages 4, 6, 8 and 9) be concurred in by Committee III and
included in its minutes. The Sub-Committee unanimously concurs in the
conclusions of Commission A as set out in Geneva document and recommends to
the Committee that the Australian request be met.
8. In connection with the amendment submitted by the delegation of Greece,
the Sub-Committee felt that the position could best be met by an interpretative
footnote. It is recommended that this note should take the following form:
"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."
9. The delegation of China withdrew this amendment, while reserving its
position should certain other provisions in the Charter be altered.
10. The Sub-Committee was satisfied that the terms of Article 20, paragraph 2 (a)
are adequate to allow a country to impose temporary export restrictions to
meet a considerable rise in domestic prices of foodstuffs due to a rise in
prices in other countries. In view of this consideration the amendment of
Sweden was withdrawn.
11. The amendment of Mexico was withdrawn.
12. No amendments were proposed to this sub-paragraph.
Paragraph 2 (c)
Amendment of Peru (Item 11)
Peru (E/CONF.2/C.3/E/W.5)
Mexico (Item 12)
Norway (Item 13)
Uruguay (Item 14)
/Egypt E/CONF.2/C.3/54
Page 4
Egypt (Item 15)
United Kingdom (Item 16)
Sweden (Item 17)
Ireland (Item 18)
Ireland (E/CONF.2/C.3/E/W.6)
Norway (Item 19)
Uruguay (Item 20)
Sweden (Item 21)
Ireland (Item 22)
Chile (Item 23)
United Kingdom (E/CONF.2/C.3/E/W.10)
Geneva Draft Note (Item 24)
Geneva Draft Note (Item 24)
Geneva Draft Note (Item 25)
13. The Sub-Committee agreed that Article 20 (2) (c) was not intended to
provide a means of protecting domestic producers against foreign competition
but simply to permit, in appropriate cases, the enforcement of domestic
governmental measures necessitated by the special problems relating to the
production and marketing of agricultural and fisheries products.
Interpretation of the Term "restrict"
14. The Sub-Committee agreed that in interpreting the term "restrict" for
the purposes of Article 20 (2) (c) the essential point was that the measures
of domestic restriction must effectively keep domestic output below the level
which it would have attained in the absence of restrictions.
Amendments Designed to Narrow the Scope of Article 20 (2) (c)
15. The Sub-Committee cannot recommend the adoption of the amendments
proposed by Peru (Item 11), Mexico (Item 12) and Norway (Item 13).
16. The Sub-Committee discussed fully the proposals of Egypt and Peru
seeking to provide that Article 20 (2) (c) should apply only:
(a) where the restrictions on domestic output were temporary (Egypt);
(b) to permit only temporary use of import restrictions (Peru);
(c) where there was a surplus of production (Egypt, supported by
Peru); or
(d) where there was notsubsidy to domestic production (Peru).
As regards (a) and (b) it was noted that the term "temporary" was
difficult to define, and that the terms of Article 20 (2) (c), particularly
with the additional provision of the proposed new sub-paragraph 3 (a); would
ensure that import restrictions could be applied only for as long as they
were necessary to the enforcement of restrictions on domestic output. It
was agreed that Governments would certainly not wish to restrict domestic
/output E/CONF.2/C.3/34
Page 5
output of agricultural and fisheries products for any longer period than was
really necessary. The delegates of Egypt and Peru withdrew these proposals.
As regards (c), the Sub-Committee agreed that no Government would wish
to restrict domestic output except when obliged to do so by the existence
of a surplus or by a persistent tendency towards the production of a surplus;
however, to write (c) (or, indeed, (a) or (b)) into the text of the Charter
would in practice have the effect of giving the Organization the power to
determine whether and when Members could or could not institute enforce
particular restrictions on domestic agricultural production, a condition
which governments could not reasonably be expected to accept.
As regards (d) the Sub-Committee agreed that it was not the case that
subsidies were necessarily inconsistent with restrictions of production
and that in some cases they might be necessary features of a governmental
programme for restricting production. It was recognized, on the other hand,
that there might be cases in which restrictions on domestic production were
not effectively enforced and that this, particularly in conjunction with the
application of subsidies, might lead to misuse of the provisions of
Article 20 (2) (c). The Sub-Committee agreed that Members whose interests
were seriously prejudiced by the opera on of a domestic subsidy should
normally have recourse to the procedure of Article 25 and that this procedure
would be open to any member which considered that restrictions on domestic
agricultural production applied for the purposes of Article 20 (2) (c) were
being rendered ineffective by the operation of a domestic subsidy. The
essential point was that the restrictions on domestic production should be
effectively enforced and the Sub-Committee recognized that unless this
condition were fulfilled, restrictions on imports would not be warranted.
It was agreed (except by the representative of Peru who reserved his
position as regards the question of subsidies) that points (c) and (d) might
adequately be met by the insertion of "effectively" after "operate" in the fourth
line of Article 20 (2) (o) and by the provision of other suitable safeguards
for the interests of exporting countries (see paragraphs 17 and 19 below).
Safeguards for Exporting Countries
17. The Sub-Committee gave full consideration to the question of safeguards
to prevent prejudice to the interest of exporting countries by import
restrictions imposed in consequence of restrictions on domestic output under
Article 20 (2) (c). It was agreed that the possibility that the provisions
of the Article might be misused by the imposition of restrictions on domestic
output which were not effectively enforced should be dealt with by the
amendments suggested in the last section of paragraph 16 above.
/18. The E/CONF.2/C.3/54
Page 6
18. The Sub-Committee further noted that the provisions of Article 22, and
in particular the consultation provisions of Article 22 (4), applied to
import restrictions imposed under Article 20 (2) (c); further, that it would
be open to a Member at any time to make representations under Article 41 to
a Member applying import restrictions under Article 20 (2) (c), or to raise
under Articles 89 and 90 the question whether the governmental measures
restricting domestic output were such as to warrant the application of
import restrictions under Article 20 (2) (c).
19. It was pointed out that the sudden imposition of import restrictions
under Article 20 (2) (c) might have serious effects on the interest of
exporting countries, and that to avoid this there should be provisions
requiring Members intending to introduce such import restrictions to give
as much advance notice as possible to exporting countries in order to afford
adequate opportunity for consultation before the import restrictions were
put into effect. It was suggested that this point might be met by the
inclusion of the provisions as to prior notice and consultations set out in
the proposed new sub-paragraph 3 (b) (see Part III).
20. It was agreed that provision should be made for the observance of secrecy
with regard to prior notice of, and consultation concerning, the proposed
introduction of restrictions if the Member proposing to introduce such
restrictions should so request.
21. It was pointed out that it was possible that import restrictions might
in certain circumstances operate so as to give undue advantage to particular
exporting countries. For example, global quotas not allocated among
supplying countries might sometimes operate in a manner unduly favourable to
those countries best able for any reason to take prompt advantage of the
global quota at the opening of the quota period; and it was agreed that
Members, in administering import restrictions, should pay due regard to the
need for avoiding such a result. It was also agreed that, in the case of
perishable commodities, due regard should be had for the special problems
affecting the trade in these commodities.
Amendments Designed to Widen the Scope of Article 20 (2) (c)
22. A majority of the Sub-Committee that the amendment of Ireland
(Item 22), and an amendment of Colombia introduced during the discussion
providing for the use of import restrictions to stabilize agricultural
prices, provided for the use of import restrictions on a much broader
basis than that provided in the case of restrictions under (i) of
Article 20 (2) (c), and if generally applied would widen the scope
of the Article in a way which would seriously endanger the interest
of agricultural exporting countries, and that the particular
difficulties of Ireland should be met by other measures. Accordingly the
/Sub-Committee E/CONF.2/C.3/54
Page 7
Sub-Committee is unable to recommend the adoption of these amendments.
23. The Sub-Committee discussed the amendment of Sweden (Item 21) providing
for the use of import restrictions to mitigate seasonal and short-term
fluctuations in the supply of agricultural products. After hearing a statement
by the representative of Sweden as to his Government's policy in regard to
livestock production, the Sub-Committee agreed that a number of measures that
he had described were certainly capable of being used for restricting domestic
production, and, to the extent that they were so used, would be covered by
the provisions of Article 20 (2) (c) (i). On this understanding the
representative of Sweden withdrew his amendment.
24. The Sub-Committee cannot recommend the adoption of the amendments of
Uruguay (Items 14 and 20) and Ireland (Item 18 and
E/CONF.2/C.3/E/W.6).
Other Amendments
25. The Sub-Committee decided that the proposal by the delegation of Norway
to substitute the word "partly" for "mainly" in Article 20 (2) (c) (iii) was
unnecessary. It was agreed that, under the existing text, in case for
example in which a Member wished to restrict the quantities permitted to be
produced of any animal product the production of which was dependent wholly
or mainly on two or more imported kinds of feeding stuffs considered together
but not necessarily on either kind considered separately it would open
to that Member to restrict the production of animal products, provided that
domestic production of the imported kinds of feeding-stuffs were relatively
negligible, by treating the imported kinds of feeding-stuffs as a single
commodity and applying import restrictions thereto.
It was further agreed that if the various imported feeding-stuffs were
in fact treated as a single commodity, import restrictions thereon should be
applied globally on the total combined imports without allocating shares to
the individual feeding-stuffs. It was felt that, in cases where this
procedure would not be practicable, the import restriction should take the
form of an equal proportionate reduction in the amount permitted to be
imported of each of the several feeding-stuffs.
The representative of Norway accordingly withdrew his amendment (Item 19).
26. The Sub-Committee agreed that the provisions of Article 20 (2) (c) (ii)
would cover arrangements under which the government concerned made temporary
surpluses of grain available as animal feeding-stuffs to small holders and
similar categories with a low standard of living, free of charge or at prioes
below the current market level. In the light of this the representative of
Sweden withdrew the amendment (Item 17).
27. The amendment of Mexico (Item 12) did not find the support of the
/28. The E/CONF.2/C.3/54
Page 8
28. The amendment of the United Kingdom (E/CONF.2/C.3/E/W.10) was withdrawn.
The Sub-Committee accepted a further United Kingdom suggestion that in order
to avoid ambiguity the words "agricultural or fisheries" should be inserted
between "domestic" and "product" at the end of sub-paragraph 2 (c) (i). The
drafting amendment of the United Kingdom (Item 16) was accepted.
29. The Sub-Committee agreed that a new sub-paragraph (3 (a) in the revised
draft of the text below) should be inserted to achieve the objectives of
the amendment of Chile (Item 23).
Paragraph 3
30. No amendments were proposed to this paragraph.
Geneva Draft Notes
31. With regard to the footnote in the Geneva text on the term "in any form"
the Sub-Committee accepted as valid the criticism put forward by the
representative of the United States that the introduction of the term
"perishable" which is inapplicable to many types of agricultural products
had unduly narrowed the scope of sub-paragraph 2 (c). It considered, therefore,
that some clarification of the text was required and accordingly recommends
to the Committee the wording as set forth in Part III of this Report.
32. The Sub-Committee however wishes to make clear that the omission of the
phrase "when in an early stage of processing and still perishable" is dictated
solely by the need to permit greater flexibility in taking into account the
differing circumstances that may relate to the trade in different types of
agricultural products, having in view only the necessity of not making
ineffective the restriction on the importation of the product in its original
form and is in no way intended to widen the field within which quantitative
restrictions under Article 20, paragraph 2 (c) may be applied. In particular,
it should not be construed as permitting the use of quantitative restrictions
as a method of protecting the industrial processing of agricultural or fishery
products.
33. The word "utilization" refers to the ultimate use of the products and is
not used in a technical sense. For example, wheat and flour are so closely
related as regards utilization that flour is to be regarded as a processed form
of wheat such as is referred to in the interpretative note.
34. The Sub-Committee took note that paragraph 3 (a) was not intended to and
did not establish any new exception permitting the use of quantitative
restrictions on imports. It is to be understood that the basic requirement of
the effective operation of restrictions on domestic production or marketing
remains as a condition precedent for all cases in which import restrictions
may be imposed under paragraph 2 (c) (i).
/35. With regard. E/CONF.2/C.3/54
Page 9
35. With regard to the interpretative note on "special factors" the Sub-
Committee agreed that it was desirable to make clear that changes in relative
productive efficiency between the home producers and foreign producers should
be taken into consideration in determining the size of import quotas under
Article 20 (2) (c) (i). The Sub-Committee recommends that the note to
Article 20 (2) (c) of the Geneva text on "special factors" should be retained
as an interpretative note to sub-paragraph 3 (d) in the form set out in
Part III of this Report.
36. The Sub-Committee, after consideration of the interpretative notes on
"special factors" to Articles 20 and 22 of the Geneva text, agreed that, as
stated in those notes, changes artificially brought about since the
representative period (assuming that period to have preceded the coming into
force of the Charter) by means not permissible under the provisions of the
Charter were not to be regarded as "special factors" for the purposes of
Article 20 (2) (c) and Article 22. The Sub-Committee agreed, however, that
it was unnecessary to state this specifically in the text of the Articles or
in the interpretative notes.
37. The Sub-Committee agreed that the use of the words "inter alia" in the
footnotes to Articles 20 and 22 on "special factors" (see pages 13 and 16)
should be brought to the notice of the Central Drafting Committee in order
that the footnotes throughout the Charter might be standardized an to their
form.
Other Points
38. At the request of the representative of Mexico the Sub-Committee agreed
to have it recorded that in its view the freedom given to a Member to apply
restrictions under Article 20 (2) (c) did not free such Member from a prior
obligation to any individual Member.
39. The representatives of Colombia, Mexico, and Peru reserved their positions
on Article 20 until final settlement had been reached on Article 13.
40. The representative of Ireland maintained that the provisions of Article 20
should be extended so as to enable countries to use import restrictions at
least to meet situations arising out of unavoidable seasonal fluctuations in
supply, and also to allow for the maintenance of stable incomes in agriculture.
He accordingly reserved his position on these points.
ARTICLE 22 - NON-DISCRIMINATORY ADMINISTRATION OF QUANTITATIVE RESTRICTIONS
1. The amendment of the delegation of Argentina (Item 61) to delete
paragraphs 2, 3, 4 and 5 found no support in the Sub-Committee.
2.. The amendments of Uruguay (Item 51) and Mexico (Item 58) were withdrawn
since the Sub-Committee considered that their objectives were covered by the
existing text of the Article; the amendments of Mexico (Item 52 and
/Turkey E/CONF.2/C.3/54
Page 10
Turkey (Item 54) were withdrawn in view of the revision of the interpretative
note on "special- factors" (see paragraph 5 below).
3. The amendment of Syria and Lebanon (Item 60) was referred to Sub-
Committee F with the concurrence of those delegation and of Sub-Committee F.
4. The Sub-Committee agreed to delete the footnote to sub-paragraph 2 (d)
of the Geneva text.
5. The Sub-Committee agreed that the interpretative note on "special factors"
should be retained as a note but should be made more explicit both by the
deletion of the cross-reference to the note to Article 20 which appears in
the Geneva text and by the specific mention of certain additional factors
which should be taken into account in the allocation of quotas. The Sub-
Committee also agreed that it was desirable to make clear that, in cases
where separate import quotas were allotted to the various foreign suppliers,
a country whose productive efficiency or ability to export had increased
relatively to other foreign suppliers since the representative period on which
import quotas were based should receive a relatively larger import quota.
The Sub-Committee accordingly recommends the wording shown in Part III (see
also paragraph 37 under Article 20).
6. The Sub-Committee agreed that the objectives of the amendments of India
(Items 55 and 57) could best be met by the insertion of a new interpretative
note to the text, as shown below in Part III.
7. The Sub-Committee considered that some provision should be made in the
Charter for releasing a Member from its obligation to give public notice
under sub-paragraphs 3 (b) and 3 (c) in the case of a Member trading with a
non-Member or non-Members. Accordingly the Sub-Committee recommends that a
new sub-paragraph 3 (d) be inserted in the text (see Pert III). The Sub-
Committee expressed the view that, to enable prompt consideration of
applications under sub-paragraph 3 (d) it would be desirable for the
Organization to delegate its functions in respect of this sub-paragraph to
the Executive Board; and that, provided an application under this sub-paragraph
was made sufficiently early and accompanied by sufficiently full information
to enable adequate consideration by the Executive Board before the commencement
of the quota period the Executive Board should temporarily release the
applicant Member from the requirement to give public notice for the period
necessary for the Executive Board to make a decision on the application.
/PART III E/CONF.2/C.3/54
Page 11
PART III ARTICLE 20
General Elimination of Quantitative 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 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 [temporarily] 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 product,
imported in any form, necessary to the enforcement of governmental measure
which operate effectively:
(i) to restrict the quantities of the like domestic product
permitted to be marketed or produced [of the like domestic
product], 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 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): E/CONF.2/C.3/54
Page 12
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
their import in quantities sufficient to satisfy demand for current
consumption purpose 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 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 these consultations shall be kept strictly
confidential.
(c) any Member applying such restrictions [on the importation of any
product pursuant to this sub-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.
(d) [Moreover] 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 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 Note to 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.
/Interpretative E/CONF.2/C.3/54
Page 13
Interpretative Note to Sub-paragraph 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.]
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.
Interpretative Note to 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.
Interpretative Note to Sub-paragraph 3 (d)
The term "special factors" in sub-paragraph 3 (d) includes inter alia
change 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
Charter], which may have occurred since the representative period.
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 E/CONF.2/C.3/54
Page 14
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 permite 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 a
substantial interest in supplying the product concerned. ln 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
being made within any prescribed period to which the quota may relate.
3. (a) In cases in which import licences are issued in connection with
import restrictions, the Member applying the restriction 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 restriction, 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 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 on route at the time at which public notice was given shall
/not be excluded E/ .2/C.3/
Page 15
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 suppIying 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 factores
affecting the trade in the product shall be made initially by the Member
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 and to any internal regulation
or requirements under paragraph 2 of Article 18.
/Interpretative Note. E/CONF.2/C .3/54
Page 16
Interpretative Note
[See note relating to "special factors" in connection with the last
sub-paragraph of paragraph 2 of Article 20]
The term "special factors" is 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.
Interpretative Note
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 Iater 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 | dk894wj0743 | Report of Sub-Committee G to Committee III | United Nations Conference on Trade and Employment, February 28, 1948 | Third Committee: Commercial Policy and Sub-Committee G (Swiss Proposal) | 28/02/1948 | official documents | E/CONF.2/C.3/72 and E/CONF.2/C.3/58-77/REV.1 | https://exhibits.stanford.edu/gatt/catalog/dk894wj0743 | dk894wj0743_90190175.xml | GATT_146 | 1,247 | 8,328 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
UNRESTRICTED
Nations Unies
E/CONF. 2/C. 3/72
CONFERENCE 28 February 1948
DU ORIGINAL: ENGLISH
COMMERCE ET DE L'EMPLOI
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMERCIAL G (SWISS PROPOSAL)
REPORT OF SUB-COMMITTEE G TO COMMITTEE III
1. Sub-Committee G was appointed by Committee Ill on 5 January 1948 with
the following terms of reference:
To consider the proposal of the Swiss delegation (reference
E/CONF.2/C.3/11) that the following new paragraph be inserted in.
Chapter IV:
"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."
2. The following delegations were appointed to the Sub-Committee:
Belgium, China, France, Poland, Sweden, Switzerlend, the Unitea Kingdom,
the United States of America, Uruguay and Venezuela. The Sub-Committe held
ten meetings. Mr. L. P. Thompson-McCausland (United Kingdom) was unanimously
elected Chairman. Owing to the departure of Mr. L. P. Thompson-McCausland.
before the work of the Sub-Committee was completed Mr. A. Philip (France)
was unanimously elected Acting Chairman at the tenth meeting.
3. Proceeding from the draft amendment contained in its terms of reference,
the Sub-Committee based its enquiries on the assumption that the Member
concerned was not eligible to impose quantitative restrictonsi under
Article 21 but was liable to suffer damage from restrictions imposed by otehr
Members under that Article.
4. A variety of factors was put before,the Sub-Comimttee as justifying
special measures. Several were regarded by the Sub-Committee as irrelevant,.
others as doubtful, and. no single factor was judged to be, sufficient by
itself toj ustify special treatment. The Sub-Committee, however, agreed that
the following factors advanced yb the delgeate for Switzerland represented,
when taken together, a combination of circumstances requiring speiacl
consideration:
/(a) that a E/CONF./2C.3/72
Page 2
(a) that a relatively high proportion of the country's total
production depended upon export markets;
(b) that a relatively high proportion of these exports consisted of
goods and services considered as inessential by many importing countries
and treated by them accordingly;
(c) that the country's normal export markets wore in countries
which were applying restrictions in accordance with the principles
of the Charter.
5. The Sub-Comaittee therefore recognized that a small country, in which
a relatively high proportion of workers depend for their employment on the
manufacture of inessential goods for export, may be liable to serious
unemployment when the countries to which it normally exports such goods
can, under the Charter, greatly restrict, or stop completely, their
imports of them. This risk is increased when the exporting country has
a convertible currency, since countries in balance of payments difficulties
would be anxious both to reduce their imports from it to save "hard
currency" and to increase their exports to it to earn "hard currency".
The country would, in fact, be an attractive export market for all other
countries, and, while in normal co-.nditions economic forces would operate
to limit the impact of excessive imports, there is in present conditions
a threat of imports flooding in at a rate which would endanger domestic
production and employment. These pressures, in combination, might in the
long run deunrmine the convertibility of the currency. The Sub-Committee
agreed that it would not be in the interests of the members to eoxpse
suchount cry to such presraues.
6. The Sub-Committee considered whether the existing provisions of the
Charter would give the necessary safeguardons a country in the situation
described above and came to the conclusion that with respect to both
exports and imports a certain protection exists in Articles 21 and 40. It
was, however, recognized that these provisions are insufficient to meet
the exceptional needs of Switzerland. It was accordingly agreed that if
such a country has to engage in bilateral negotiations with other countries
which are tmsheelvesp aplying restrictions to their imports, it will need
bargaining powers to safeguard its export interests by the use of necessary
measures. It may also need powers to defend itself against the pressure
of excessive imports.
7. The amendment presented by the Swiss delegation would safeguard the
country's freedom of action. The majority of the Sub-Committee, however,
held that this proposal was so far-reaching that its adoption by the
/Conference E/CONF.2/C.3/72
Page 3
Conference would dangerouly the structure of the whole Charecter.
The sub committee was therefore unable to recommend the amendment
solution of the problem .(4 delegates being against the amendment for it,
2 abstaing and 1 absent),
8. In an effortt enable Switzerland to adhore to the Charter the Sub-
Committee examined other solutions, but regrets that it has been unable
to find.one which could accommodate Switzerlead without excessive Weakening
of the Charter. The Sub-Committee, therefore, has aimed at keeping open
a way by which Switzerland might later enter into negotiations with the
Organization regarding its adherence to the Charter. Before specific
proposals to this end could be submitted, further and more detailed
examination of the problem is called for.
9. The Sub-Committee recommends, therefore, that the Conference should
direct the Interim Commission to invite the Swiss Governmmnt 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
mesures which could be taken in accordance with the procedures established
in the Charter for dealing with the problem.
10. The Sub-Committee also exentned the cases of Venezuela and Uruguay
which were presented to it and finds that neither of these countries has
established any special problems connected with transition from their
present systems of trading to that contemplated. by the Charter.
11. It was the view of the Sub-Committee that the present text of
Article 21 made adequate provision for many of the considerations put
forward by the delegates of Venezuela and Uruguay. Thus, it was pointed
out that paragraph 3 (a) (2 (a) of the Geneva text) requires that "due
regard" be paid in the monetary reserve questions there involved "to any
special factors which may be affecting the Member's ....need. for reserves,.."
It was pointed out that a country exporting principally a small number of
products would, in like conditions, probably be considered to have need. for
greater reserves than a country exporting a large variety of products,
particularly if the exports were exhaustible or subject to considerable
fluctuations of supply or price. A country actively embarked on a programme
of economic development which is raising levels of production and foreign
trade would probably then be considered to have need for greater reserves
than when its economic activity was at a lower level.
12. Beyond this the issues raised involve matters now under active
consideration in connection which Articles 13 and 14. The consideratioans
put forward by Venezuela and Uruguay in this connection are not Dissimilar
/from those E/CONF. 2/C.3/72
Page 4
from those being urged by. a considerable number of other "underdeveloped"
countries in connection with the economic development chapter of the Charter.
This Sub-Committee felt it should not pursue this matter any further since
to do so would be to duplicate the work of Committee II and its Sub-Committees.
13. The delegate of Venezuela has advised the Sub-Committee that they
are satisfied with the foregoing statements by this Sub-Committee.
14. The delegate of the United States, while agreeing with the fineal
conclusion, stated that he is not in agreement with certain aspects
of this report. (see document E/CONF. 2/C. 3/73). |
GATT Library | wq783gj6506 | Report of Sub-Committee G to Committee III Observations by the Delagation of the United States | United Nations Conference on Trade and Employment, February 28, 1948 | Third Committee: Commercial Policy and Sub-Committee G (Swiss Proposal) | 28/02/1948 | official documents | E/CONF.2/C.3/73 and E/CONF.2/C.3/58-77/REV.1 | https://exhibits.stanford.edu/gatt/catalog/wq783gj6506 | wq783gj6506_90190176.xml | GATT_146 | 549 | 3,608 | UNRESTRICTED
United Nations Nations Unies E/CONF.2/C.3/73
CONFERENCE CONFERENCE 28 February 1948
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L 'EMPLOI
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE G (SWISS PROPOSAL)
REPORT OF SUB-COMMITTEE G TO COMMITTEE III
OBSERVATIONS BY THE DELAGATION OF THE UNITED STATES
1. The report of Sub-Committee G to Committee III has now been circulated
as document E/CONF.2/C.3/72. This report contain the following paragraph:
"14. The delegate of the United States, while agreeing with
the final conclusion, stated that he is not in agreement with
certain aspects of this report."
2. The delegation of the United States here sets forth its objections to
certain aspects of the report.
3. The delegation of the United States is in agreement that various factors
in the Swiss economy constitute a combination of circumstances requiring
special consideration (paragraph 4 of the report). It also agrees that the
proposal put forward by the delegation of Switzerland to meet this problem
"would dangerously weaken the structure of the whole Charter" (paragraph 7
of the report). It further agrees that the Sub-Committee has been unable to
devise a solution which would accommodate Switzerland without excessive
weakening of the Charter (paragraph 8 of the report). It also agrees with
the final conclusion of the Working Party that the Interim Commission should
invite the Swiss government to participate in a study of the problem facing
the Swiss economy with a view to devising a solution (paragraph 9 of the
report).
4. However, the delegation of the United States cannot accept some of the
statements contained in paragraphs 5 and 6 of the report. In our view these
paragraphs go so far in accepting the arguments and proposed solutions put
forward here by the delegation of Switzerland as in effect to limit the
freedom of the Interim Commission in exploring this question. Thus, to say
that "there is in present conditions a threat of imports flooding in at a
rate which would endanger domestic production and employment" and to say that
/"it was . . . E/C ONF.2/C.3/73
Page 2
"it was... recognized thlat these provisions (Articles 21 and 40) are
insufficient to meet the exceptional needs of Switzerland" and to say that
"it was accordingly agreed that if such a country has to engage in bilateral
negotiations with other countries which are themselves applying restrictions
to their imports, it will need burgaining powers to safeguard its export
interests by the threat and, if necessary the imposition of quantitative
restriction" is to concede most of the arguments put forward by Switzerland
and the basic solution proposed by Switzerland and thus effectively to limit
the scope of the inquiry of the Interim Commission.
5. The delegation of the United States is prepared to agree that Switzerland
would face certain special problems as a Member of the ITO and is prepared
to give its full co-operation in seeking a reconciliation of the Swiss problems
with the general structure of the Charter. But it is not prepared to enter
upon such an inquiry under an advance comm tment which would make it extremely
difficult to come to any other conclusion than that here sought by the
delegation of Switzerland.
6. The delegation of the United States proposes therefore that paragraphs 5
and 6 be deleted from the report. |
GATT Library | xy678sj6462 | Report of Sub-Committee 'H' on Subsidies | United Nations Conference on Trade and Employment, February 12, 1948 | Third Committee: Commercial Policy | 12/02/1948 | official documents | E/CONF.2/C.3/51 and E/CONF.2/C.3/38-57 | https://exhibits.stanford.edu/gatt/catalog/xy678sj6462 | xy678sj6462_90190149.xml | GATT_146 | 4,365 | 27,987 | United Nations Nations Unies UNRESTRICTED E/CONF.2/C.3/51
CONFERENCE CONFERENCE 12 February 1948
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
THIRD COMMITTEE: COMMERCIAL POLICY
REPORT OF SUB-COMMITTEE 'H' ON SUBSIDIES
PART I
1. The Sub-Committe was appointed at the Twenty-Seventh Meeting.
(7 January l948) of theThird Committee (III.b.). It was given the
following terms of reference:
"(a) to consider all proposed amendments to Section C of Chapter IV
of the Draft Charter as contained in document E/CONF.2/C.3/8, together
with all suggestions and proposals made during discussion of those
proposed amendments in Committee III.b; and
(b) to recommend texts to reconcile the various points of view
expressed".
2. The Sub-Committee consisted of representatives of the following
delegations:
Argentina, Australia, Brazil, Canada, Cuba, Denmark, France, Netherlands,
Peru, Philippines, Sweden, Turkey, United Kingdom, United States of
America and Venezuela.urenl Turkey, United Kingdomr, United Statof-
meric and Vene~zuelnt ''._.--j '-'
3. Irt E. MwcCART (Australia) was elected Chan. At the seve-,h
meotipg 9i he S-Commitee Mr. G. WAWICK SMM (Aused
inlace of.Mr. .McCartby ho had to leave Havana.-. -
4. -At the Fifth meeting .of Tthe Sub-Committee it was decided to stup a -
Working PartyPeto examine proposed amendments to Artices 26 to 9., he
Workin PartZcwinpised of epresentatives of Brail-, Canada,. eru,
Unite& ingdUhited -States of America and. Venezuela, together .yth the
ChaNFirmaAX o± th Sb-Committee. It held ten mingsand its Report to the
Sub-Comjigrteel .ctined i ocment E/COIW .2/C .3/H/6.
5. Th S~ub-Vopitee h41d eight meetral a,'eement on
a text. tsubmitt it the Committee. -
6. Par TT of this, Report contains a brief statement on the main changes
in theltextealt wih proposed.
aene-nts.h - , . b . , ,ted
7, *saThe text SetionC.- Susidies.In- (Articles 25-29) a agreed y the
Sub-Committeep-ttached a an anInex to this Report., relation to
e Genva tz;.ag /PART IIeed deletiod agreed
eAdittons-Fby. underlining. f E/CONF.2/C .3/51
Page 2
PART II
(References are to items in E/CONF.2/C.3/8)
General
(a) The delegation of Brazil provisionally reserved its position on
Section C.
(b) The delegation of Peru wished its view recorded that there was a
difference of treatment as between subsidies which operate directly or
indirectly to maintain or increase the export of any primary commodity,
and subsidies which operate directly or indirectly to reduce, or
prevent an increase in, the imports of any primary commodity. The
former were subject to the provisions of Article 28, while the latter
were subject only to the much weaker provisions of Article 25. In their
view the latter type of subsidy ought to be subject also to provisions
parallel to these of Article 28, because the interests of exporting
countries were prejudiced just as much by a subsidy which decreases
imports in an importing country as by one which increases exports from
a competing exporting country. Consequently the delegation of Peru
reserved its position on Section C.
(c) The Sub-Committee considered an inquiry from the Central Drafting
Committee as to whether it was desired that references in Section C to
primary commodities should be covered by the definition of a "primary
commodity" contained in Article 53. It was agreed that the definition
contained in paragraph 1 of Article 53 was applicable to all such
references.
(d) The Sub-Committee considered the suggestions of the International
Chamber of Commerce (E/CONF.2/14) regarding the arrangement of the
Section, but thought that the present arrangement was appropriate.
Article 25
(a) The Sub-Committee was unable to agree to the inclusion of the
words "direct or indirect", or of an alternative amendment having
a similar purpose, proposed by the delegation of Cuba (Item 2).
The representative of Cuba explained to the Sub-Committee that
the amendment constituted a matter of immediate and practical
importance to his country, which could not afford to promote its
econonic development by the methods of direct subsidization.It had
therefore introduced a system by which certain domestic industries
were exempted from internal taxes payable on imported goods. This
was simpler in practice than, though no different in principle from,
the system of "payments to domestic producers derived from the
proceeds of internal taxes or charges" which was permitted under
/paragraph 5 E/CONF.2/C .3/51
Page 3
paragraph 5 of Article 18. The system employed in Cuba had secured
favourable results, particularly in encouraging capital investment,
both domestic and foreign.
The Sub-Committee was in general agreement that the terms of
Article 25 were sufficiently wide to cover a case such as that
described by the Cuban deligation. It was considered that the
proposals of Cuba in regard to Article 25 would not alter the sense
of the Article, nor would they have the effect of permitting
continuance of the Cuban system if it conflicted with other provisions
of the Charter such as those regarding non-discrimination. The
appropriate place to consider an amendment with this purpose was
under Article 18 concerning the non-discriminatory application of
internal taxation. The representative of Cuba maintained the
reservation of his delegation on Article 25.
(b) Arising from an amendment proposed by the United States
delegation (Item 3), it was agreed to make the following changes
in the first sentence:
"....which operates directly or indirectly to maintain or
increase exports of any product from, or to reduce, or prevent
It was felt that the existing text of the Article failed to
cover subsidies which, whilst not increasing a Member's exports nor
reducing its imports, might nevertheless effect a Member's share
of total trade.
(c) It vas agreed to accept the proposal by the United States
delegation to introduce in the last sentence the phrase
"a Member considers" in place of determinations by the Organization.
It was thought that this change was consistent with similar changes
made in Chapter VI and would expedite procedure.
Article 26
The Sub-Committee was unable to accept the proposal of the United States
delegation (Item 18) to except subsidies on primary commodities from the
provisions of paragraph 1, and the consequential changes proposed in regard
to other Articles. The United States delegation, however, submitted
alternative suggestions to which reference is made in the notes on
Articles 27 and 28 below.
Paragraph 2 . . :t - .
(a) Drafting changes proposed by th United Stateadelegation have
been accepted with slight modification.
/(b) The nsertion E/CONF.2/C.3/51
Page 4
(b) The insertion of the words "in general of those products" after
"payments to domestic producers" is inteded to make it clear that the
payments in question refer to general subsidisation of domestic
producers of like produucts.
(c) The delegation of Sweden withdrew its proposal (Item 5) to insert
the words "directly or indirectly" between the words "taxes" and
"imposed". It is understood that the text - paticularly the phrase
"remission of such duties or taxes.......which have accrued" - cover
the case of remission of duties or taxes imposed on raw materials
and semi-manufactured products subsequently used in the production
of exported manufactured goods.
(d) It was understoood that the term "like products" is intended to
mean closely similar products in the corresponding stage of
production, allowing for such differences as are necessary for
export purposes.
(a) The Sub-Committee was unable to accept the proposal by the delegation
of Argentina (Item 6) to delete the time-limit provisions in this
paragraph. The delegation of Argentina reserved its right to reopen
the question in Committee.
(b) The introduction of the words "and if so on what terms" in the last
sentence of paragraph 3 is prompted by the decision to exclude subsidies
on non-primary commodities from the provisions of Article 28. It was
felt that the position of the Organization in relation to such subsidies
should be stated more explicitly.
(c) The Sub-Committee agreed to certain drafting changes proposed by
the delegation of the Netherlands.
Proposed New Paragraph
The Sub-Committee considered the proposal by the delegation of Venezuela
(Item 7) to insert a new paragraph designed to except certain types of subsidy
from the provisions of paragraph 1 of Article 26. It was felt that the
subsidies in question, i.e. those whose effect on world trade in the ?
is of minor significance, would be largely covered by the proposed new texts
of Paragraphs 3 and 5 of Article 27, and of sub-paragraphs 4 (b) and 4 (c) of
Article 28. In particular it sas understood that the phrase "if an agreement
is inappropriate" in the proposed text of paragraph 5 of Article 27 meant that
if Chapter VI procedure was inappropriate (including cases judged to be
inappropriate by the Organisation under Article 55, paragraph 2), a. Member
could grant or maintain an export subsidy vithout being bound to seek an
inter-governmental agreement on the Commodity in question. Moreover, in cases
/where negotiations E/CONF.2/C.3/51
Page 5
where negotiations did take place toward an inter-governmental agreement, a
Member would be free (under paragraph 3 of Article 27), pending the outcome
of such negotiations, to maintain export subsidies on the commoidity in
question.
Article 27
General
Specific references in Article 27 to the provisions of Article 28 are
not intended to be exclusive. They are included for purposes of emphasis.
It was agreed to insert in sub-paragraph (a) the words "or is so
designed as to result" after the words "has also resulted". It was felt that
this covered the substance of a similar amendment proposed by the delegation
of Venezuela (Item 8).
A corresponding addition has been made in sub-paragraph (b).
Proposed New Paragraph 2
The Sub-Committee considered the new paragraph proposed by the
delegation of the Netherlands (Item 9) relating to certain types of price
stabilization schemes. It was generally agreed that a system for the
stabilization of the domestic price or of the return to domestic producers
of a primary commodity, independently of the movement of import prices,
which results, or is so designed as to result, in the sale of the commodity
in the domestic market at a price at times higher and at times lower than
the comparable landed cost for the imported product, should be treated as
a case under Article 25. On this understanding the delegation of the
Netherlands withdrew its proposal.
Paragraph 2 is a new provision emphasizing the responsibility of Members
granting any form of subsidy on a primary commodity to co-operate in
negotiating inter-govenmental agreements under Chapter VI.
(a) Tlhis paragraph takes the place of paragraph 2 in the Geneva text
of Art icle 27. The Sub-Committee was unable to accept the proposal by
the delegations of Argentina and Peruu(Item 10) to delete the paragraph.
(b) The paragraph has been redrafted to make it clear that, as regards
serious prejudice caused by the granting of a subsidy, the paragraph
applies to all types of subsidization of primary commodities.
(c) A new provision has been added to permit a Member to maintain a
subsidy pending the outcome of negotiations under Chapter VI.
Paragraph 4
Paragraph 4 is a new provision prohibiting a Member from granting a new
/subsidy or E/CONF.2/C/3/51
Page 6
subsidy or increasing an existing subsidy, affecting the export of a primary
commodity, during a commodity conference dealing with the commodity in
question, unless the Organization concurs. This provision serves to limit
the above-mentioned new provision contained in paragraph 3. The Sub-Committe
was unable to agree to a proposal by the delegation of Argentina to delete
the phrase "unless the Organization concurs", and that delegation reserved
its right to re-open the question in Committee.
Paragraph 5
(a) This paragraph takes the place of paragraph 3 in the Geneva text
of Article 26. The.Sub-Committee was unable to accept the proposal by
the delegations of Argentina and Peru (Item 10) to delete the paragraph;
the delegation of Argentina was satisfied, however, that its point was
covered by the new text. The delegation of Peru reserved its position
on the paragraph.
(b) On the basis of a suggestion by the United States representative,
the paragraph has been redrafted in order to permit Members, considering
their interests seriously prejudiced, to apply or maintain
export subsidies on primary commodities, without prior approval or a
determination by the Organization, where Chapter VI procedure has
failed or does not promise to succeed or where an inter-governmental
agreement is inappropriate. It is recognized that any judgment by a
Member that an agreement is "inappropriate" could subsequently be
challenged by any other Member through the procedure of Chapter VI.
Article 28
(a) 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 findings to which Members shall conform. Other
changes which have been agreed are as follows:
(i) The Article now refers not only to export subsidies but to any
form of subsidy operating directly or indirectly to increase
or maintain exports; its application, however, is now limited
to primary commodities.
(ii) The concept of a "previous representative period." as the
basic criterion has been replaced by that of "an equitable
share of world trade". This is intended to meet criticisms
that the Article, as in the Geneva text would tend to
stabilize an existing trade situation to the detriment of
under-developed countries. It is thought that the new text
will, in this respect cover the case of these countries and
/go some E/CONF.2/C.3/51
Page 7
go some way to meet the position of the delegation of Argentina
expressed in its proposal (Item 12) to delete the Article.
(iii) Factors are specified which, amongst others, the Organization
shall take into consideration in reaching its findings on an
"equitable share". In regard to sub-paragraph (b) of
Article 28 it is understood that the terms "the economy" and
"the economies" mean national economy as a whole and would
include the balance of payments situation of the Members
concerned. The terms would naturally cover any special aspects
of the economic structure of a Member.
(b) It was felt that the new text, by its application of safeguards
to general subsidies affecting exports, partly met the point raised
in the amendment submitted by the delegation of Brazil (paragraph 2
of proposed Article 27 A Sec E/CONF.2/C.3/II/5). Regarding the other
point raised by the delegation of Brazil (paragraph 1 of proposed
Article 27 A), which was referred to Sub-Committee "A"
(on Articles 16-19), the Sub-Committee has noted the latter's decision,
namely that a majority of the Members of Sub-Committee "A" felt that it
was unnecessary to insert the amendment, whereas a minority supported
the Brazilian proposal, at least in principle. (See E/CONF.2/C.3/A/W.45).
(c) The representative of Argentina proposed. amending paragraph 3 so as
to remove the provision that a Member should conform to a finding by the
Organization. The Sub-Cormmittee was unable to accept the proposal, and
the representative of Argentina reserved his delegation's position on
the paragraph.
(d) In regard to paragraph 4 (d), one delegation called attention to the
fact that a major consideration in deciding what is an "equitable share"
is the extent to which a country may successfully have limited the supply
of a surplus commodity; This is recognized as concerns one kind of such
limitation in the reference to paragraph 1 of Article 27. However, there
are other method of limiting supply which also deserve mention because
of their specific and important relevance.
(e) The term "other measures" in paragraph 4 (e) refers only to measures
permitted under Section 'C'.
Article 29
It was agreed to delete this Article and instead to make appropriate
reference to the Organization in paragraph 3 of Article 26 and in paragraph 1
of Article 27 in regard to the determinations provided for in those paragraphs.
The deletion of Article 29 had been proposed by the delegation of
Argentina (Item 15). E.CONF.2/C.3/51
Page 8
ANNEX
SECTION 'C' - SUBSIDIES
(Note: in relation to the Geneva text, square brackets indicate proposed
deletions and underlining proposed additions).
Articl 25
Subsidies in General*
If any Member grants or maintains any subsidy, including any form of
income or price support, which operates directly or indirectly to maintain or
increase exports of any product from, or to reduce, or 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 quantiy of the affected product
or products imported into or exported from the territory of the Member and of
the circumstances making the subsidization necessary. In any case in which
[It is determined] a Member considers that serious prejudice to [the] its
interest [of any other Member] is caused or threatened by any 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
Additional Provisions on Export Subsidies
1. No Member shall grant, directly or indirectly, any subsidy on the expert
of any product, or establish or maintain any other system, which subsidy or
system results in the sale of such protect for export at a price lower than
the comparable price charged for the like product to buyers in the domestic
market, due allowance being made for differences in the conditions and terms
of sale, for differences in taxation, and for other differences affecting
price comparability.
2. [Notwithstanding the provisions of paragraph 1 of this Article a Member
may exempt] The exemption of exported products from duties or taxes imposed
in respect of like products when consumed domestically, or [may remit] the
remission of such duties or taxes in amounts not in excess of those which
have accrued [.], shall not be construed to be in conflict with the provisions
of paragraph 1 of this Article. The use of the proceeds of such duties or
taxes to make payments to domestic producers in general of those products
[however] shall be considered as a case under Article 25 [except insofar as
such payments subsidize exportation, in the sense of paragraph 1 of this
* Article 25 was not referred to the Working Party, but is included here
for convenience of reference.
/Article, by E/CONF. 2/C .3/51
Pago 9
Article, by more than the amount of the duties or taxes remitted or not
imposed, in which case the provisions of paragraph 1 of this Article shall
apply to such excess paymentes.
3. Members shall give effect to the provisions of paragraph 1 of this
Article at the earliest practicable date, but [in any event] not later than
two years from the day on-which -this Charter enters into force. If any Member
considers itself unable to do so in respect of any [specified] particular
product or products, it shall, at least three months before the expiration of
such period, give notice in writing to the Organization, requesting a specific
extension of the period. Such notice shall be accompanied by a [complete]
full analysis of the system in question and the [effects] circumstances
justifying it. [It7 The Organization shall. then [be] determine[d] whether,
and if so on what terms, the extension requested should be made.
4. Notwithstanding the provisions of paragraph 1 of this Article, any.
Member may subsidize the exports of any product to the extent and for such
time as my 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 [adversely affected] seriously prejudiced by such action, consult
with that Member or with the 'Organization 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 of the return to
domestic producers of. a primary commodity, independently of the movements of
enterprices which results at times in the sale of the product for export
at a price lower than the comparable price charged for the like product to
bu##rs the domestic market, shall be considered not to involve a subsidy
an export wiithin the meaning of paragraog 1 of Article 26 if [i t is] the
########### determine [dies that that
(a.) [that] the system has also resulted, or is so designed to
result in the sale of the product for export at a price higher
than the comparable price charged for the like product to buyars
in the domestic market [,] and
(b) [that] the system is so operated, or is desigrad so to operate
either because of the effective regulation of production or otherwise,
as not to stimulate exports unduly or otherwise serious. prejudice
the iptereste of othar Members.
2. Any Members granting a subsidy affecting a primary shall
tol times-in efforts to negotiate eratt alleffgreements-uoceduresdnder the pr
/of Chapter VI E/CONF.2/C .3/51
Pagu 10
of Chapter VI.
[2. In any case of subsidiration of a primary commodity, if a Member considers
that its interests are seriously prejudiced by the subsidy or if the Mumber
granting-the subsidy consider it self unable to comply with the provision of
paragraph 3 of Article 26 within the time limit laid down therein, the
difficulty may be deemed to be a special difficulty under Chapter VI and in
that event the procedure laid down in that Chapter shall be followed.]
[2.]3. In any case involving a primary commodity, if a Member considers that
its interests would be seriously prejudiced by compliance with the provisions
of Article 26, or if a Member considers that its interests are seriously
prejudiced by, the granting of any form of subsidy, the procedure laid down .
in Chapter VI maybe followed. The Member which considers that its interests
are thus seriously prejudiced shall, however, be exempt provisionally from
the requirements of paragraphs 1 and 3 of Article 26 in respect of that
commodity, subject to the provisions of Article 28 .
4. No Member shill grant a new subsidy or increase an existing subsidy:
affecting tho export of a primary commodity during a commodity conference
called for the purpose of the negotiating an inter-governmental control agreement
for the-commodity concerned unless the Organization concurs. Any Such new
or additional subsidy shall be subject to the provisions of Article 28.
[3.] 5. If the measures provided for in Chapter VI have not succeeded, or
do not promise to succeod, within a reasonable period of time, [either because]
or if [no] an agreement [has been reached or because the agreement] is
[terminated, any Member adversely affected. may apply for exemption]
inappropriate, any Member which' considers that its interests are 'serioualy
prejudiced shall not be subject to [from] the requirements of paragraphs 1 and
3 of Article 26 in respect of that commodity[. If it is determined that the
circumstances described in Article 59 apply to the commodity concerned and
that. the subsidization will not be so operated as to stimulate exports unduly
or otherwise seriously prejudice the interests of other Members, the..
Organization shall grant such exemption for such period and within such limits
as may be determined.], subject to the provisions of Article 28.
Article 28
Undertaking Regarding Stimulation of Exports of Primary Commodities
[Notwithstanding the provisions of paragraphs 1, 2 and 3 of Article 26
and of paragraph 3 of Article 27, no Member shall grant any subsidy on the
exportation of any product which has the effect of acquiring for that Member
a share of world trade in that product in excess of the share which it had
during a previous representative period, account being taken insofar as
/practicable E/CONF. 2/C .3/1
Page 11
practicable of any special factors which may have affected or may be affecting
the trade in that product. 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 ember granting the subsidy; Provided
that such Member shall, upon the request of any other Member having an
important interest in the trade in that product, or upon the request of the
Organization, consult promptly with the other Member or with the Organization
regarding the need for an adjustment of the base period selected or for the
re-appraisal of the special factors involved.]
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. 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 Members which consider that
serious prejudice to their 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 make a finding as to what constitutes
an equitable share end the Member granting the subsidy shall conform to this
finding.
4. In making its finding, the Organization.ehall take into account any
factors which may have affected, or may be affecting, world trade in that
primary commodity and shall have particular regard to
(a) the Member's share of world trade in the commodity in a previous
representative period;
(b) whether the subsidizing Member's share of world trade in the
commodilty is so small that the effect of the subsidy on such trade
is likely to be of minor significance;
(c) the degree of importance of the external trade in the commodity
to the economy of the Member granting, and to the economies of the
Members materially affected by, the subsidy;
(d) the existence of price stabilization systems in accordance with
paragraph I of Article 27;
(e) the desirability of facilitating the gradual expansion of production
for export in those areas able to satisfy world market requirements of
the commodity concerned in the most effective and economic manner, and
therefore of limiting any subsidies or other measures which make that
expansion difficult.--- |
GATT Library | kk257mq9856 | Report of Sub-Committee I on consultations with the International Court of Justice | Interim Commission for the International Trade organization, September 10, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 10/09/1948 | official documents | ICITO/EC.2/15 and ICITO/EC.2/15-ICITO/EC.2/21 | https://exhibits.stanford.edu/gatt/catalog/kk257mq9856 | kk257mq9856_90060211.xml | GATT_147 | 1,003 | 6,476 | UNRESTRICTED
INTERIM COMMISSION COMMISSION INTERIMAIRE DE
FOR THE INTERNATIONAL L'ORGANISATlON INTERNATIONALE ICITO/EC.10 September 1948
TRADE ORGANIZATION DU COMMERCE
ORIGINAL: ENGLISH
Executive Committee
Second Session.
REPORT OF SUB-COMMITTEE I ON CONSULTATIONS WITH
THE INTERNATIONAL COURT OF JUSTICE
1. The Sub-Committee on Consultations with the International
Court of Justice which was composed of representatives Of
Australia, Benelux, Columbia, Egypt, France, Italy, Mexico,
United Kingdom and United States and which was presided over
by Mr. I. Couillard (Canada) had as its terms of reference the
reselution concerning the relation of the International Trade
Organization to the International Court of Jutstice adopted by
the United Nations Conference on Trade and Employment,
2. Pursuant to the Resolution the Sub-Committee consulted
with the International Court of Justice through the Registrar
of the Court, Mr. E. Hambro, who attended the session of the
Executive Committee for this purpose. The Sub -Committee wishes
to record its appreciation for the valuabe assistance which
the Registrar was able to give. The consultations took the
of the representatives addressing to the Registrar a series
of questions arising out of Chapter VIII of the Charter in So
far as that Chapter referred to recourse to the International
Court of Justice. The Registrar recorded these questions and
the answrers he gave to them in two aide-memoires Which are
attched to the Notes of the First, Second and Third Meetings
of the Sub-Committee (documents ICITO/EC.2/SC. 1/3 and ICITO/
EC. 2/Sc.1/6). The Sub-Committee recommends that these aide-
memoires should eventually be incorporated in the report which
the interim Commission will make to the first Session of the
Conference of the Organization. The Sub-Committe considered
that no further consultations with the International Court of
Justice or with its Registrar should be necessary.
3. In the course of the consultations with the Registrar
of the Court, the Registrar was asked his Opinion upon the first
question mentioned in the terms of reference of the Sub-Committee,
that is, the question whethe the procedures set out in Chapter
ViIIX of the Charter needed to be changed to ensure that decisions
of the International Court on matters referred to it by the
Organization should, with respect to the Organization, have the
nature of a judgment. The Registrar replied that there was
nothing in the Statute of the International Court which would
prevent the Organization or its Members agreeing that an advisory
opinion should have binding force. The Registrar further stated.
that the text of Article 96 was quite satisfactory as a means of
requiring and securing an advisory opinion from the International
Court. After this opinion had been given, the Sub-Committee
turned its attention particularly to answer the second question
Stated in its terms of reference. ICITO/EC. 2/15
page 2
4. During the discussion the Sub-Committee observed that
there appeared to be nothing in sub-paragraph 2 (c) of
Article 94 to prevent the question of monetary compensation
being included in the terms of reference to arbitration in
any case arising out of a breach of an obligation under the
Charter.
5. The Sub-Committee recommends that the Interim Commission
should make the following report upon this matter to the
First Session of the Conference of the Organization:-
A
"The Interim Commission considered the problems
arising out of the resolution relating to the
review of decisions of the Organization by the
International Court of Justice and out of Annex
N of the Havana Charter. It was the conclusion
of the Interim Commission, after consultation
with the Registrar of the International Court of
Justice, that no amendment to the Charter was
necessary, on the understanding that the following
is the interpretation of the relevant provisions
of the Charter:-
1. In connection with the procedure for obtaining
an advisory opin on under paragraph 2 of Article 96
(a) Any Member, party to a dispute between two
or more Members which has been the subject of a
decision of the Conference, will be deemed to
have an interest prejudiced by the said decision.
(b) The fact that a decision of the Conference
is contrary to the position of a Member, not a
party to such dispute, on the merits of the
dispute shall not in itself determine the
question whether the interest of such Member
has or has not been prejudiced by the decision.
2. Article 96 permits the Organization, in its
request to the Court for an advisory opinion, to
include the question of monetary compensation for a
Member whose interests have been prejudiced in a case
arising out of a breach by a Member of an obligation
under the Charter. In such a case, the request for
an advisory opinion shall, at the instance of a
Member party to the dispute, include the question
of monetary compensation.
B The Interim Commission also considered that,
as a general rule, the request for an advisory opinion
should not include a question as to monetary compensation:-
(a) f or any period prior to the date of the
decision of the Conference, in cases where the
decision has been adverse to the complaint; or ICITO/EC.2/15
page 3
(b) in other cases, for any period prior
to thirty days before the time when written
representations or proposals satisfying the
requirements of Article 93 of the Charter
were first made with respect to the dispute.
The Interim Commission calls to the attention
of the First Session of the Conference of the
Organization the fact that paragraph 4 of Article 95
of the Charter in its present form does not provide
a right of withdrawal in a case where the Inter-
national Court of Justice decides that monetary
compensation is the appropriate remedy."
6. The representative of Australia reserved his position
as to whether the interpretation proposed by the Sub-Committee
was within the terms of the Resolution of the United Nations
Conference on Trade and Employment or within the terms of
Annex N of the Charter. He also reserved his opinion upon
the substance of the interpretation recommended by the Sub-
Committee should the Executive Committee decide that it
was within its competence. |
GATT Library | fw936ry4875 | Report of Sub-Committee J (State Trading) | United Nations Conference on Trade and Employment, February 3, 1948 | Third Committee: Commercial Policy | 03/02/1948 | official documents | E/CONF.2/C.3/43 and E/CONF.2/C.3/38-57 | https://exhibits.stanford.edu/gatt/catalog/fw936ry4875 | fw936ry4875_90190140.xml | GATT_147 | 3,700 | 24,029 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/43
ON DU 3 February l948
TRADE AND EMPLOYMENT COMMRCE ET DE L'EMPLOI ORIGlNAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
REPORT OF SUB-COMMITTEE J (STATE TRADING)
1. The Third Committee at its twenty-eighth meeting on 7 January 1948
approved the formation of a Sub-Committee on Section D - State Trading -of
Chapter IV consisting of the representatives of Czechoslovakia, Ecuador,
Egypt, Mexico, Netherlands, New Zealand, Pakistan, Switzerland, the United
Kingdom and the United States.
2. The terms of reference of the Sub-Committee were to consider and make
recommendations upon the text of Articles 30 and 31 and the Notes attached
and amendments submitted to these Articles.
3. The Sub-Committee understood the proposal by the delegation of Argentina
to delete the entire Section D, which had met with no support during the
discussion in Committee, to be outside its terms of reference and did not,
therefore, include it in its considerations.
4. The Sub-Committee held its first meeting on Monday, 12 January 1948 and
unanimously elected. the Right honourable Walter Nash (New Zealand) Chairman
5. The Sub-Committee held seven meetings. Representatives of several
countries not members of the Sub-Committee attended the meetings as observers.
Delegates for Belgium, Canada, Cuba and Denmark took an active part in the
discussion on points of special interest to them.
6. In the course of its work the Sub-Committee examined the text of
Articles 30 and 31, the Notes attached and all outstanding amendments
submitted to these Articles as listed in document E/CONF.2/C.3/9, as well
as amendments and observations subsequently submitted by Members and
recommendations made by other Sub-Ccmmittees.
7. In order to facilitate the work of the Sub-Committee, several working
groups to consider particular items were established on which the delegates
for Czechoslovakia, Mexico, the Netherlands, New Zealand, Switzerland, the
United Kingdom and the United States were represented. The successful
conclusion of the Sub-Committee's tasks was in no small measure due to the
untiring efforts of these working groups under the presidency of the Chairman
of the Sub-Committee, and of the Secretariat.
/8. The Sub-Committee E/CONF.2/C 3/43
Page 2.
8. The Sub-Committee was able to reach unanimous agreement on most points,
only a small number of decisions taken being subject to reservations by
individual delegations. This large measure of agreement reached was due to
the spirit of conciliation shown by all who had submitted amendments.
9. The text of Section D as agreed - subject to the reservations mentioned -
and recommeded by the Sub-Committee for approval by Committee III is attached
as an Annex to this Report.
SPECIFIC COMMENTS
Section D
10. With regard to the additional provisions included in this Section it
was considered necessary to make a corresponding change in the title of the
Section.
11. In the opinion of the Sub-Committee, the term "state enterprise" in
the text does not require any special definition; it was the general
understanding that the term includes, inter alia, any agency of government
that engages in purchasing or selling.
12. A drafting amendment, replacing in sub-paragraph I (a) the words
"principles..applied in this Charter to governmental measures" by prescribed
in this Charter for governmental measures" was adopted so as to express more
correctly the purpose of the provision.
13. It was decided to embody the substance of the paragraphs in the.,
footnotes to paragraph 1 relating to Marketing Boards in a new Article to
follow Article 30.
14. In regard to the footnote to paragraph 1 concerning different prices
in different markets for sales of products by state enterprises, it was
decided to retain the interpretation contained in the footnote. The
Sub-Committee agreed, therefore, to amend the text so as to include
purchases as well as sales and to take account also of relevant factors
other than supply and demand. The representative of Belgium stated that
if the new text is approved his delegation would not maintain the
reservation made at Geneva.
15, The Sub-Ccmmittee felt that the Note appended to sub-paragraph 1 (a)
could not be dispensed with. It was unanimously agreed to recommend the
retention of its text, with certain alterations, as a footnote attached
to that sub-paragraph and forming a part of the Charter.
16. It was felt that the matter covered in the Note appended to
sub-paragraph (b) did not require express statement. It was therefore
agreed to delete this Note.
17. An amendment by Mexico proposing to delete paragraph 2 was withdrawn.
/18. It was not E/CONF.2/C .3/43
Page 3
18. It was not considered necessary to retain the Note attached to
paragraph 2 in the Geneva Draft.
New Article 30 A
19. Following the discussion on the footnotes relating to Marketing Boards
appended to paragraph 1 of Article 30 and an the amendment by the
New Zealand delegation as to how the provisions of the Charter would apply
to the activities of Marketing Boards, Commissions and similar bodies it
was agreed unanimously that a provision dealing with this question should
be included in the Charter. A suitably drafted text for a new Article,
headed "Marketing Organizations", has accordingly been inserted.
Article. 31
20. Arising from the amendment proposed by the United States, the
Sub-Committee agreed that the last phrase of sub-paragraph 1 (b) as
previously drafted did not accurately express the intention of that
provision. It was therefore decided to make the drafting change indicated
in the annexed text.
21. The Cuban delegation explained the object of its amendment
(document E/CONF.2/C.3/1/Add.52) and advised that they would be satisfied
if paragraph 2 (b) was altered in any of the following ways:
(A) ". . .or would be not wholly effective for the achievement of...."
(B) ".......or would not be satisfactorily effective for the
achievement of....."
"Provided that a record should also be kept with the Committee with an
explanation of the interpretation to the effect, that if the negotiation
of the maximun import duty should not be entirely or partially effective in
attaining the objects mentioned in sub-paragraph 1 (b), any other agreement
which is reached in accordance with sub-paragraph 2 (b) does not exclude the
agreement regarding the maximum import duties mentioned in sub-paragraph (a)."
It was considered that the proposed change in the wording would not add
anything to the present scope of sub-paragraph (b). The Sub-Committee
expressed the view that the wording of sub-paragraph (b) was not intended
to preclude a negotiation by mutual agreement under this sub-paragraph in
conjunction with, or in addition to, a negotiation under sub-paragraph (a).
22. The Sub-Committee expressed the view that the Note appended to
paragraph 3 of the Geneva Draft which reads.
"If the maximum import duty is not bound by negotiations according
to sub-paragraph 2 (a) the Member is free to change at any time the
declared maximum import duty, provided that such change is made public
or notified to the Organization."
represents a correct interpretation of the provision. It was considered,
/however, that E/CONF.2/C.3/43
Page 4
however, that the text as drafted was sufficiently clear and that there was
no need to retain the footnote.
23. In order to remove any possi ble ministerpretation of paragraph 4 and
to make its intention fully clear the words "exclusive of "were substituted
for "after due allowance for".
24. In paragraph 4 as well as in theNote to paragraph 4 the words
'' primary product'' were replaced by the words "primary commodity". In
using the expression "primary commodity'' in Section the Sub-Committee
had Io mind the definitoni contained in paragraph 1 of Article 53.
25. The Sub-Committee considered that it was desirable to retain the Note
appended to paragraph 4 of the Geneva draft as a footnote.
26. The proposal by Denmark to add to paragraph 5 the following provision
"Provided that such rationing does not aim at restrctions over and
above such restrictions that are otherwise justified according to
the Charter".
was not approved as it was felt that Chapter VIII gave adequate safeguards
in the event of albuse by any Member, and furthermore that Artice 41 provided
specifically for consultation with regard to all state-trading operations.
The representative of Denmark thereupon withdrew his amendent.
27. An amendment to paragraph 6 submitted by the delegation of Switzerland
was full considered in the Sub-Committee.
It was decided to retain the present text.
28. The Representative of Mexico supported by the delegate of Ecuador
made the following statement.
``The delegation of Mexico has noted the views of the Sub-Committee
that it was not intended in the drafting of paragraph 6 of Article 31
to define in any narrow see the term 'social purposes!, and further
that, it would be unwise for the Sub-Commtteei itself to decide that a
particular interpretation should have greater force than any other.
The resposnsibility placed on the Members and the Organization is
simply, that they should pay `due regard' to the fact that some
monopolies may be established mainly for 'social purposes' and, to
that extent general economic considerations would not be the sole
factor to be, taken into account in any negotiations.
In these circumstances, the delegation of Mexico considers that
this to would appropriately include, amongst other aspects of
monopolies established and operated mainly for social purposes, such
state, monopolies as are set up under specific legislation to supply
the nesesary elements for the people's subsistance and to for to foster the
the paa an .tofoue
social development of the nation".
/The representative E/CONF.2/C.3/43
Page 5
The representative of Mexico then withdrew his amendment.
29. The representative of Ecuador provisionally reserved his position in
respect of all provisions relating to state monopolies for fiscal purposes.
30. It was decided to omit the Note attached to Article 31 of the Geneva
draft, concerning the deletion of Article 33 as contained in the London draft.
31. The following statement appears as a footnote under Article 31 on page 29
of the Geneva draft:
"Arising out of a proposal by the New Zealand delegation to make an
addition to the previous text of Article 33, the Preparatory Committee
considered 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 regulations of their foreign trade. In the
opinion of the Preparatory Committee 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.
The delegation of New Zealand reserved the position of its Government on
this question."
The Ned Zealand delegation stated that until the final text of the Charter
had been de termined it maintained its reservation on this question.
32, The Sub-Committee considered the following communication from the
Chairman of Sub-Committee of Committee VI:
"The Joint Sub-Co mmittee of Committees V and VI has been considering.
the substance and the location of an exception to be made in respect
of agreemenrt made by or for military establishments for the purpose
of meeting essential requirements of national security. The
Sub-Cmmittee had decided to recommend the inclusion of the appropriate
provision in Article 94.
However, in putting forward this recommendations the Sub-Committee
is of the view that a related provision should be introduced elsewhere
in the Charter concerning the need for consultation on the liquidation
of any stock pile accumulated under such a provision in Article 94
The Sub-Committee considers that the insertion of a provision on
liquidation might best be considered in Section D of Chapter IV.
Accordingly, the Joint Sub-Committee would be grateful if Sub-Committee
of the Third -committee would give consideration to this question. The
Joint Sub-Committee has instructed me to communicate this request to
you and at the same time to transmit for possible consideration by
/Sub-Committee, J E/CONF.2/C .3/43
Page 6
Sub-Committee J two alternative versions of such a provision which
the Joint Sub-Committee had before it:
(1) That following the word "sale" at the end of the first
sentence in paragraph 2 of Article 30 a proviso might be added
to the following effect:
"Provided that, upon a complaint that substantial injury is
being caused or is anticipated, a 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 disposal
of reserve stocks so acquired."
(2) That any provision to be made in Section D might be along
the following lines:
"Any Member accumulating non-commercial reserves of primary
commodities for military purposes under an inter-governmental
agreement....shall not make arrangements for the commercial
liquidation of such reserve stocks in such a way as to injure
the commercial interests of producers of the commodities in
question, and shall consult with the Organization as to the
best means to that end."
While the Joint Sub-Committee was agreed in recommending that
Sub-Committee J consider the inclusion of some provisions for
consultation on the liquidation of such stock piles, the Joint
Sub-Committee had not examined the merits of either of the texts
reproduced above and is merely transmitting them for information
and to provide a possible basis for discussion."
The Sub-Committee decided to recommend the insertion of a new Article, to
follow Article 31, dealing with the liquidation of non-commercial government
stocks of primary commodities. The term "non-commercial purposes" has been
used to make clear that the stocks held by Governments for commercial
purposes - e.g., those of state trading enterprises, are excluded from the
provisions of the proposed new Article. The main reason for the inclusion
of Article 31A was to provide machinery for prior consultation in regard
to the liquidation of stocks accumulated for security reasons. It is
implied in the text of the Article that the Organization on receipt of
notice as provided shall advise the Member Governments accordingly.
New Article 31A
33. The Sub-Committee considered that Article 31A does not in any way affect
the obligations of Members under Article 30 as it relates solely to public
or prior notification of an intention to liquidate stocks.
/ANNEX E/CONF. 2 /C.3/43
Page 7
ANNEX SECTION D - STATE TRADING AND RELATED MATTERS
ARTICLE 30
Non-Discriminatory Treatment
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
manner consistent with the general principles of non-discriminatory
treatment [applied] prescribed in this Charter [to] 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 Charter, make any such purchases or
sales solely in accordance with commercial considerations, including
[prices] price, quality, availability, marketability, transportation
and other conditions of purchase or sale, and shall afford the
enterprises of the other Members adequate opportunity, in accordance
with customary business practice, to compete for participation in such
purchases or sales.
(c) No Member 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 1 of this Article shall not apply to imports
of products for immediate or ultimate consumption in governmental use and not
otherwise for resale or for use in the production of goods for sale. - With
respect to such imports, the Members shall accord to the trade of the other
Members fair and equitable treatment.
NOTES
Paragraph 1
Different prices for sales and purchases of products in different
markets are not precluded by the provisions of this Article, provided that
such different prices are charged or paid for commercial reasons having regard
to differing conditions, including supply and demand, in such markets.
Sub-Paragraph 1 (a)
Sub-paragraphs 1(a) and (b) of this Article shall not be construed as
/applying to E/CONF.2/C -3/43
Page 8
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;
(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 enterprise in question,
or create a monopoly whose trading activities are subject to effective
governmental control or direction.
/ARTICLE 30A E/CONF.2C. 3 /43
Page 9
ARTICLE 30A Marketing Organizations
If a Member establishes or maintains a marketing board, commission or
~~~~~~~~~~~~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ ........o y, .. ...
similar organization It shall:
(a) be subject to the provisions of paragraph 1 or Article 30
with respect to purchases or sales by such organizatons; and
(b) with respect to any regulations of such, organizations governing
the operations of private enterprises, be subject to the other.
relevant provisions of the Charter.
/ARTICLE 31 E/CONF. 2/C . 3/43
Page 10
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, such 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
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; or
(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 [prevent] reduce any limitation of imports [to an extent inconsistent
with the provisions of this Charter,] which is comparable with a limitation
made subject to negotiation under other provisions of this Chapter.
2. In order to satisfy the requirements of sub-paragraph 1 (b) of this
Article, the Member maintaining a monopoly shall negotiate:
(a) for the establishment of the maximum import duty that may be
imposed 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 impracticable or would be ineffective for the achievement
of the objectives of paragraph 1 of this Article.
Any Member entering into negotiations under sub-paragraph (b) of this
paragraph shall afford to other interested Members an opportunity for
consultation in respect of the proposed arrangement..
3. In any case in which a maximum import duty is not negotiated under
paragraph 2 (a) of this Article, the Member maintaining 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 price charged by the import monopoly for the imported product in
the home market shall not exceed the landed cost plus the maximum import
/duty E /CONF . 2 /C . 3 /43
Page 11
duty negotiated under paragraph of this Article or made public or notified
to the Organization under paragraph 3 of this Article [after due allowance
for] exclusive of internal taxes, transportation, distribution and other
expenses incident to the purchase, sale or further processing, and [for] a
reasonable margin of profit; Provided that regard may be had to average
landed ? and selling prices over recent periods; and Provided further
that, where the product concerned is a primary [product] commodity and 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 negotiation.
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.
NOTE Paragrapha 4
With reference to the second proviso the method and ?gree of
adjustment to be permitted in the case of a primary [product] commodity
that is the subject of a domestic price stabilization arrangement should
normally be a matter for agreement at the time of the negotiations under
sub-paragraph (a) of paragraph 2.
/ARTICLE 31A E/CONF.2/C. 3/43
Page 12
ARTICLE 31A
Liquidation of Stocks
1. Any Member holding stocks of any primary commodity accumulated for
non-commercial purposes shall: .
(a) give not less than four months public notice of its
intention to Iiquidate such stocks; or,
(b) give not less the four months prior notice to the Organisation
of such intention.
In either case, th e Member concerned shall, at the request of any Member
which considers itself substantially interested, consult as to the best means
of avoiding substantial injury to the economic interests of producers and
consumers of the prima commodity in question.
2. The provisions of paragraphs 1 shall not apply to routine disposal of
supplies necessary for the rotation of stocks to avoid deterioration. |
GATT Library | nk258vv5331 | Report of the Ad Hoc Committee on the amendment to rule 38 of the rules of procedure | United Nations Conference on Trade and Employment, January 23, 1948 | 23/01/1948 | official documents | E/CONF.2/29 and E/CONF.2/14-15/REV.1 | https://exhibits.stanford.edu/gatt/catalog/nk258vv5331 | nk258vv5331_90040084.xml | GATT_147 | 0 | 0 | ||
GATT Library | th280pr1390 | Report of the Ad Hoc Committee on the amendment to rule 38 of the rules of procedure | United Nations Conference on Trade and Employment, January 23, 1948 | 23/01/1948 | official documents | E/CONF.2/29 and E/CONF.2/14-15/REV.1 | https://exhibits.stanford.edu/gatt/catalog/th280pr1390 | th280pr1390_90040084.xml | GATT_147 | 251 | 1,821 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/29
CONFERENCE CONFERENCE 23 January 1948
TRADE AND EMPLOYMENT COMMERCE E T DE L'EMPLOI ORIGINAL: ENGLISH
REPORT OF THE AD HOC COMMIETTE ON THE AMENDMENT
TO RULE 38 OF THEE RULES OF PROCEDURE
The Ad Hoc Committee, appointed in accordance with Rule 57, met on
Monday, 12 January 1948 and on 14 January 1948 under the Chairmanship of
Sr. A. Vilhena Ferreira Braga of Brazil. The Committee consisted of the
representatives of Canada, China, El Salvador, France, Mexico, Norway and
Peru. The Committee considered an amendment proposed by the delegation of
El Salvador to add to Rule 38 the words "but in Sub-Committees Spanish
shall also be used as a working language" and a consequential proposal by
the delegation of Argentina that the principal working documents of the
Conference should be translated into Spanish.
Having considered the difficulties confronting the Spanish speaking
delegations, the Committee agreed to mako the following practical
recommendations for meeting these difficulties:
(a) that the maximum use should be made of simultaneous
interpretation in the Sub-Committees;
(b) Insofar as the difficulties of Spanish-speaking delegations
were not met under (a), the Secretariat to provide "whispering"
interpreters for delegates In Sub-Committees who are unable to
follow the proceedings in the working languages;
(c) the Secretariat to provide Spanish translations of the
annotated agendas, the reports of Sub-Committees, and the reports
of the Committees of the Conference.
For the action taken by the Secretariat to implement these recommendations
see documents E/CONF.2/INF.109 and E/CONF.2/28. |
|
GATT Library | dr630vp1134 | Report of the Co-ordinating Committee to the Heads of Delegations | United Nations Conference on Trade and Employment, March 2, 1948 | 02/03/1948 | official documents | E/CONF.2/45/Rev.1 and E/CONF.2/14-15/REV.1 | https://exhibits.stanford.edu/gatt/catalog/dr630vp1134 | dr630vp1134_90040102.xml | GATT_147 | 8,891 | 57,211 | United Nations Nations Unies
CONFERENCE CONFERENCE E/CONF.2/45/Rev.1
ON DU 2 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
REPORT OF THE CO-ORDINATING COMMITTEE
TO THE HEADS OF DELEGATIONS*
The Co-ordinating Committee, consisting of the following individuals
acting in a personal capacity: Messrs. Abello,** Beteta, Coombs, Ferrero,
Hakim, Holmes, Lleras Restrepo, Malik, Muller, Philip, Wunsz King and
Wilcox, under the Chairmanship of M. Max Suetens, was established by the
Heads of Delegations at their meeting on 4 February 1948, in order to
expedite the successful termination of the Conference by recommending
compromise solutions for differences relating primarily to questions of
economic development.
The Committee therefore devoted its attention to establishing a basis
for agreement on Article 13, Article 15 and the Tariff Committee and the
proposed Economic Development Committee.
The 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.
The Committee recommends that the Heads of Delegations consider these
drafts from the standpoint of obtaining an overall solution to the problems
involved and of reaching a decision on the proposals as a whole. If an
agreement on these lines is reached it is recommended that it be accompained
by withdrawal of a number of amendments and reservations entered pending
the settlement of the final drafts of the Articles involved in the overall
settlment. The Committee also considers that, as a decision on the report
of the Sub-Committee on Article 75 (E/CONF.2/C.6/53) has been postponed
pending a settlement of the matters referred to above, that report should
also be included as part of the overall settlement.
If this procedure is acceptable to the Heads of Delegations, and It
proves possible to reach agreement on the substance of the drafts submitted,
it is recommended that the drafts be referred to the appropriate Committees
as the basis for the adoption of final texts.
* This revised document is issued in order to incorporate corrections
in Annexes 1 and 3
** Mr. Abello was unable to attend the later meetings.
*** There is also circulated, at the request of Senor Lleras Restrepo, a
statement made by him to the Co-ordlnating Committee regarding the
draft of Article 13.
/ANNEX 1 E/CONF.2/45/Rev.1
Page 2
ANNEX I
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
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 or 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
shall enter into direct negotiations with all the other
Members which have contractual rights with a view to
obtaining agreement. The Member 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 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.
5390 /The Organization E/CONF.2/45/Rev.1
Page 3
The Organization shall establish and communicate to the
Members concerned a time schedule for such negotiations,
following 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 Members 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 imports more than necessary
to offset the increase in imports referred to in this sub-paragraph.
Except in unusualy 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 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, E/CONF. 2/45/Rev.1
Page 4
relates, and whose trade is materialy affected by the action, may
suspend the application to the trade of such Member of such substantially
equivalent obligations or concessions under Chapter IV, the suspensions
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 determine 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 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 to 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
. :Fincl Act of the present Charter, vhich 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 develoment 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 meaning of the word "processing" which appears(ii) in 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 highly developed industrial processes such as the
manufacture of precision instruments. primary commodity E/CONF.2/45/Rev.1
Page 5
primary commodity, when the external sales of such commodity
have been materially reduced as a result of new or increased
restrictionas imposed abroad; or
(iii) ls 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 the 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 raise the standard of living within the territory
of the applicant Member and is unlikely to have a harmful
effect in the Iong 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 without undue difficulty
and, ls 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.
Provided 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-
paragaph; and
(ii) The Organization shall not concur in any measure under the
provisions of sub-paragraphs (i) (ii) or (iii) which is likely
to cause serious prejudice to exports of a primary commodity
on which the economy of another Member is largely dependent.
The applicant Member shall apply all measures under this
sub-paragraph in such a way as to avoid unnecessary damage to the
commercial or economic interests of any other Member.
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.
/(c) If the proposed E/CONF.2/45/Rev.1
Page 6
(c) If-the proposed measure does not fall within the provisions of
sub-paragraph (b),
(i) the Member may 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.
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. 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 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 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 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 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 measure, the Organization shall immediately
free the applicant Member to apply it.
* Text proposed by United Kingdom to be inserted in Report:
The question was raised with reference to paragraph 4 (c) as to the
meaning of the words "materially affected". It was agreed that this term
would not be restricted to those countries, which in the past had been
the principal suppliers and that It would be proper for the Organization
to have regard, for instance, to the interests of those Members which
supplied a large proportion of the imports of the applicant Member in the
product concerned, those Members which were substantially interested in
exporting the product to world markets and those Members, whose economies
were materially dependent on exports of the product.
/(d) If there E/CONF.2/45/Rev.1
Page 7
(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 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 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 referred to in paragraph 4 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, 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 imports below the level obtaining in the
most recent representative period preceding the date on which the Member's
original notification was made.*
6. The Organization and the Members concerned shall preserve the utmost
secrecy 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)
or, In the case of measures dealt with in accordance with the provisions of
sub-paragraph 4 (a) (i)** of the application referred to in that sub-paragraph
* Text proposed by the Chinese delegation to appear as an interpretative note:
It was agreed that paragraph 5 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.
** It was decided to ask the drafting committee to consider whether this
reference should also apply to sub-paragraph 4 (c) (ii).
/of this E/CONF. 2/45/Rev.1
Page 8
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 the earliest practicable but shall not be
more than ninety days subsequent to the receipt of such statement or
application; Provided that, if before the date set, unforeseen difficulties
arise, the period may be extended after consultation 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.
/ANNEX 2 E/CONF.2/45/Rev. 1
Page 9
ANNEX 2
ARTICLE 15
PREFERENTIAL ARRANGEMENTS FOR ECONOMIC DEVELOPMENT
1. The Members recognize that special circumstances, including the need for
economic development or reconstruction, may justify now 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 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.
4. 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 between Members for the establishment of tariff
preferences which it determines to fulfil the following conditions and
requirements:
(a) the territories of the parties to the agreement shall be contiguous
one with another, or all parties shall belong to the same economic region;
(b) any tariff preference 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 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) an 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 agreement contains provisions permitting the adherence of other
Member, 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 E/CONF.2/45/Rev.1
Page 10
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 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 years, provided that
any renewal shall be subject to the approval of the Organization and
shall not be for periods greater than five years each.
When the Orgarnization, 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 agreement, it
may, as a condition of its approval, require a reduction in an unbound most-
favoured-nation rate of duty proposed by the Member in respect of any product
so covered, if in the light 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 paragraph 4 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 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 shall be considered automatically received.
(b) If the Organization finds that the agreement, while fulfilling the
conditions set forth in paragraph 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. When agreement is reached in the negotiations, the
Organization shall authorize the Members contemplating the preferential
agreement to depart 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 have failed and the Organization considers that the
injured Member is unreasonably preventing the conclusion of the
negotiations it shall permit the necessary departure from the provisions
of Article 16 by fixing a fair compencation to be granted by the parties
to the agreement to the injured Member or, It this is not possible or
reasonable, by ordering such modification of the agreement as will give
Such Member fair treatment. The provisions of Chapter VIII may be
/invoked by E/CONF.2/45/Rev.1
Page 11
invoked by such Member only if it does not accept the decision of the
Organization regarding such compensation.
(c) If the Organization finds that the agreement while fulfilling the
conditions set forth in paragraph 4 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 finds that the prospective parties to a regional
preferential agreement have, before 21 November 1947, obtained from
countries representing at least 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, without prejudice
to the conditions governing such recognition, grant the authorization
provided for in paragraph 5 and in sub-parapraph (a) of this paragraph,
provided that the conditions set out in sub-paragraphs (a), (e) and (f)
of paragraph 4 are fulfilled. Nevertheless, 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 wlth the injured Member, and the procedure
of sub-paragraph (b) above shall apply.
INTERPRETATIVE NOTES
Paragraph 4 (a)
The Organization need not interpret the term "economic region" to require
close geographical proximity if it is satisfied that a sufficient degree of
economic integration exists between the countries concerned.
Paragraph 6 (d)
It is understood that the words "have, before 21 November 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 in respect
of mandated territories which became independent before 21 November 1947, in
so far as these rights have not been specifically denounced before that date.
CONSEQUENTIAL AMENDMENT OF ARTICLE 13
Infort i1 paragraph 2 of Article 13
in the first line, "or for the purpose of increases amost
rate of duty in connection with the establishment of a new preferential
agreement in accordance with Article 15".
/ANNEX 3 E/CONF.2/45/Rev.1
Page 12
ANNEX 3
PROPOSAL DEALING WITH THE TARIFF COMMITTEE,
THE COMMITTEE ON ECONOMIC DEVELOPMENT AND RECONSTRUCTION, ETC.
1. The Co-ordinating Committee considered three alternative proposals
submitted by the delegation of the United States, for dealing with the
problem of the Tariff Committee, the proposed Committee on Economic
Development and Reconstruction and a possible Commercial Policy Committee.
2. It was agreed that the second proposal would be accepted as a basis
for the work of the Committee. Under this alternative:
(a) there would be no provisions in the Charter for a Tariff Committee,
a Committee on Economic Development and Reconstruction or a Commercial
Policy Committee.
(b) Members, not parties to the G.A.T.T. would enjoy G.A.T.T.
concessions for two years, but these concessions would thereafter be
withdrawn unless the Member concerned had become party to the G.A.T.T.
3. The Committee considered in addition amendments to this proposal
submitted by various members of the Committee.
4. The Committee agreed to submit the following text of the Articles or
paragraphs affected:
A. 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."
B. PARAGRAPHS 1 AND 2 OF ARTICLE 74*
"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 Committe]
by this Charter."
* Square brackets indicate deletions from the Geneva draft.
/O. PARAAGRAPH 4 OF ARTICLE 17 E/CONF 2/45/Rev.1
Page 13
C. PARAGRAPH 4 OF ARTICLE 17
"(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, and shall cease to require the application 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 such Member of the concession granted in the relevant
schedule of the General Agreement by any other Member which has
requested such Member to negotiate with a view to becoming a
contracting party to the General Agreement on tariffs and trade
without concluding an agreement; Provided that the Organization by
a majority vote may require such continued application to any Member
which has been unreasonably prevented from becoming a party to the
General Agreement pursuant to negotiations in accordance with the
provisions of this Article.
(b) If a Member which is a contracting party proposes to withhold
tariff concessions from the trade of a Member not a party to the
Generla Agreement on Tariffs and Trade, it shall give notice in writing
to the Organization and to the affected Member, which 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 withhold
pending a decision by the Organization under paragraph 4 (a).
(c) In any judgment as to whether a 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 without
sufficient Justification 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 from the day on which such notice is received by the
Organization.
/. DELETE ARTICLE 81: E/CONF.2/45/Rev. 1
Page 14
D. DELETE ARTICLE 81: THE TARIFF COMMITTEE
5. The Committee agreed that the fact that no provision was made in the
Charter for a Teriff Committee, a Committee for Economic Development and
Reconstruction or a Commercial Policy Committee, would not preclude the
establishment by the Organization of any of these Committees in the future.
6. In relation to paragraph 4 (a) of Article 17, it was agreed that whereas
this paragraph provides that Article 16 does not require the continued
application of the Tariff concessions embodied in the schedules of the
G.A.T.T. to the trade of a Member which has failed to become a party to the
G.AT.T., it does not permit the withdrawal of other formal of most-favoured-
nation treatment required by the Charter, e.g. in relation to internal.
taxation, the administration of quantitative restrictions, etc.
7. It was also agreed that since Members would under the provisions
of Article 17 be required to become contracting parties to the G.A.T.T., it
was desirable that they should be aware of the obligations which would be
imposed upon them as contracting parties. In this connection attention
was drawn to the fact that
(a) It has been proposed to amend the G.A.T.T. to permit the admission
of a country as a contracting party upon a vote of two-thirds of
the contracting parties instead as of a unanimous vote as at present
required;
(b) it was decided to suggest to the heads of delegations that they
should recommend to the contracting parties that they amend the
text of paragraph 5 of Article XXV of the G.A.T.T. 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)] (1) define certain categories of exceptional
circumstances to which other voting
requirements shall apply for the waiver of
obligations, and
* Underlining and square brackets indicate additions to and deletions from
text of paragraph 5 as contained in Volume 1, page 58 of the General
Agreement on Tariffs and Trade. E/CONF.2/45/Rev.1
Page15
[(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 lnternational Trade Organization.
the CONTRACTlG 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
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 withhold, so an 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 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.
/ANNEX 4 E/CONF.2/45/Rev.1
page 16 ANNEX 4
STATEMENT MADE BY MR. LIKRAS RESTREPO (COLOMBIA)
TO THE CO-ORDINATING COMMITTEE
AT ITS MEETING ON 25 FEBURARY 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.
J. 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 proposals for a Charter on Trade
and Employment. ln the first session of the Economic and Social Council
where the United States originally presented plans for the Organization we
are estabishing 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 doped that
a way could be found to permit us to participats in the now plan without
sacrificing the essential interests of our people.
/The inclusion E/CONF.2/45/Rev. 1
page 17
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 oppostion exists to some other dispositions of
the Charter. We did not counsider the provisions of this Article fully
satisfactory, but we expected that some reform, 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 now
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 most mountainous in 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 from 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, was 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 E/CONF.2/45/Rev.1
Page 18
reformed if we wish to obtain a general and sincere agreement. Let me tell
you what our objections are, and what reforms 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 1 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
may 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 onwise use
of protective measures; but what is the real meaning of the words "onwise
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
follows:
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 way be substantially
affected.
5. The effect which the proposed measure is likely to have
on international trade.
We must take note that this enumeratlon 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 measures 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 decisive importance.
/In paragraph 4 b E / . 2/45/Rev.1
Page 19
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:
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
ii. That it is the one most suitable for the purpose having
regard to the economics of the industry of 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 judment, 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 Committee III is full of this kind of amendment,
particularly in relation to Article 20 on quantitative restriction. 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 E/C0NF. 2/45 /Rev.1
Page 20
of the Charter, and we always thought that through certain reforms in
Article 13, it would be possible to guarantee to some extent the interests
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.
Other 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 impesing 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 ultinatum by the American delegate with the claim of the
undeveloped countries.
It is obvious that the amendments contemplating complete freedom for
the imposition of restrictive measure 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 prior 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 approal. 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 Organisation the opportunity to establish that no
/country s/CONF. 2/45/Rev. 1
Page 21
country acts beyond the limits the Charter may fix. Novertheless we want
these limits to be suffciently 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 propose 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 coat 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 femine, tropical diseases, clothing and shelter by singing the praises
of the international distribution on of work and free trade. Our duty is to
gurantee these people stable and remunerative prices, and a safe market
for their prducts.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 with 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 whohhave
traditionally. produced a certain agricultural product, and thin 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 hlgh post 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 or have we not a case for the for the
the application of the hated
I have been told that it in to face such of
by customs tariffs, or by a tariff or by of
means which everyone is the
Charter. I have received many of these lessons. I have also been told
than such cases are so clear that the Organization all are only
referee. I beg the members of this committee to believe that I am act
presenting my claims with respect to Article 13 due to on my part,
h~ . t-iO1i -Cmx-. nut `.tuaCLy r )lva of oviztiX~t
connect with this economic problems d'cade t. theoinr2c prCi'O!V and of the
teaching or economic permitnature000MMIOU 110.-t O .o- 'ur.;'ax-siee ? of this nature,
even if it has as many&t'Lr.y Charter.I affirm that
liae'c0a2Vix; res:;tir: 1_xicu'saly '!!in a coumny like Colombua Present
pooulier problems and difficulties which e.¢J 8.u:v Upa of Eo3,e03.
protective measures'i)hismiaBUl'inciplean mry, abtcg p this princip!e not only
in the OtiSt part of 13 but also in the
and mainly in Article 20 where been included n.ticlb 203 hiru or-cloir -.'t.eor' nc~lud~tl ..
the use and benefit of I should also like to ask how many
the - 3O a!d..b.:L1't OI x'J u ;Gll.rioP. e¢:o:l' a_1o - ls 0 Xo 27.4 ~u 3
monopoplice or agriculture producer have been created in anticipation of
the Charter by must of the European contries.If all these steps were
thcw'utany, how is it possible say that the way is open and they
for the countries nct covered by the excap mentioned exceptions, not which
for employing; subsidies, and who not want to charg their system
of free enterprise for the system of state trading ?
All this is true and Article 11was intended to
the question of automatic approval.repeat what I have already said
here namely that this automatic approval has its only justification in
recognition of the fact that there are some cases so clear, so vital
to fhe 14ter.otd of a country, that the Organization may not withhold
consent to the application of such protoctive measures as country
concerned may find necessary. This is the point for which us have fought
here during three months, but when we arrive to the final stage not
find Cao vital interest of our covered by the procedure of
automatic approval, .
what is offered. to.us in exange? Only the points covered by
/sub-paragraphs 1 E/CONF.2/45/Rev.1
Page 23
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 awaitd reform. Instead we can go and say to our countries that
sub-paragraph i of 4 b of the new 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 contemplated in sub-paragraph ii. It
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 seems
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 member's 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 E/CONF.2/45/Rev.1
Page 24
This leaves sub-paragraph iii. This paragraph begina with the words
"Is necessary to promote the establishment etc." That mean than 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 irmplies the power of affirming that
the industry could be protected sufficiently by customs tariffs alone. It
is impossible to imagine a broader concept, and those friends 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 unneceasary to comment on the
other sentences of this sub-paragraph.
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 thart I cannot
assume any responsibility 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. |
|
GATT Library | wk747dg2058 | Report of the co-ordinating Committee to the heads of Delegations | United Nations Conference on Trade and Employment, March 2, 1948 | 02/03/1948 | official documents | E/CONF.2/45 and E/CONF.2/45/REV.1/53/CORR.3 | https://exhibits.stanford.edu/gatt/catalog/wk747dg2058 | wk747dg2058_90040103.xml | GATT_147 | 9,011 | 57,269 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/45
ON DU 2 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
ORIGINAL: ENGLISH
REPORT OF THE CO-ORDINATING COMMITTEE
TO THE HEADS OF DELEGATIONS
The Co-ordinating Committee, consisting o1' the following individuals
acting in a personal capacity; Messre. Abello*, Beteta, Coombs, Ferrero,
Hakim, Holmes, Lleras Restropo, Malik, Muller Philip,Wunaz King and
Wilcox, under the Chairmanship of M. Max Suetens, was etablished by the
Heads of Delegations at their meeting on, 4 February 1948, in order to
expedite the successful termination of the Conference by recommending
compromise solutions for differences relating primarily to questions of
economic development.
The Committee therefore devoted its attention to establishing a basis
for agreement on Article 13, Article 15 and the Tariff Committee and the
proposed Economic Development Committee.
The 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.
The Committee recommends that the Heads of Delegations consider these
drafts from the standpoint of obtaining an overall solution to the problems
involved and of reaching a decision on the proposals as a whole. If an
agreement on these lines is reached it is recommended that it be accompanied
by withdrawal of a number of amendment and reservations entered pending
the settlement of the final drafts of the Articles involved in the overall
settlement. The Committee also considers that, as a decision on the report
of the Sub-Committee on Article 75 (E/CONF.2/C.6/53) has been postponed
pending a settlement of the matters referred to above, that report should
also be included as part of the overall settlement.
If this procedure is acceptable to the Heads of Delegations, and it
proves possible to reach agreement on the substance of the drafts submitted,
it is recommended that the drafts be referred to the appropriate Committees
as the basis for the adoption of final texts.
* Mr. Abello was unable to-attend the later meetings.
** There is also circulated, at the request of Senor Lleras Restrepo, a
statement made by him to the Co-ordinating Committee regarding the
draft of Article 13.
/ANNEX 1 E/ 2/45
Page 2
ANNEX 1
ARTICLE 13
GOVERNMENTAL ASSISTANCE TO ECONOMIC DEVELOPMENT
1. The Member recognize that special governmetal assiststance may be
required to promote the establishment, development or reconstruction of
particular industries, or particular branches of agriculture, and that in
appropriate circumstamces the grant of such assistance in the form of
protective measure 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. If a Member in the interest of its economic development or reconstruction
considered 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
(a) shall enter into direct negotiations with all the other Members
which have contractual rights with a view to obtaining agreement. The
Member 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
(b) shall initially or may, in the event of failure to reach
agreement under sub-paragraph (a) 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 negotiatlions, following
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
tho 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 E/CONF.2/45
Page 3
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.
3. If as a result of action initiated under paragraph 2 above, there should
be an increase; in the. import of the product or products concerned, including
products which can be directly substituted therefore, which if continued would
be so great as to reoperdize 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 imports more than
necessary to offset the increase in imports referred to in this 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 paragraph 2. 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 paragraph 2 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 application to the trade
of such Member of such substantially equivalent obligations or concessions
under Chaptler IV, the suspension of which the Organization does not
disapprove. Any Member intending to suspend such application shall consult
the Organization before doing so.
4. 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 priovisions of that Chapter, the provisions of pararaph 2 (b)
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 3
shall also be applicable in this case.
5. If a Member in the interest of its economic development or reconstruction
/considers E/CONF .2/45
Page 4
considers it desirable to adopt any non-discriminatory 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
(a) shall initially or may, in the event of failure of the Organization
to concur in the proposed measure under paragraph 6 below, 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. 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, 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
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 release the
applicant Member from its obligations under the relevant provision
of Chapter IV, subject to such limitations as it may impose; or
(b) shall initially or may, in the event of failure to reach
complete or substantial agreement under sub-paragraph (a) above,
apply to the Organization and transmit to it a written statement
of the considerations in support of the adoption of the proposed
measure.
In the case of measures to which the provisions of paragraph 5 (b)
* Text proposed by United Kingdom to be inserted in Report:
The question was raised with reference to paragraphs 5 (a) and 8 as
to the meaning of the words "materially affected". It was agreed that this
term would not be restricted to those countries, which in the past had been
the principal suppliers and that it would be proper for the Organization
to have regard, for instance, to the interests of those Members which
supplies a large proportion of the imports of the applicant Member in the
product concerned, those Members which were substantially interested in
exporting the product to world markets and these Members, whose economies
were materially dependent on exports of the product.
/apply E/CONF. 2/45
Page 5
apply the Organization shall concur is the proposed measure and grant release
from the appropriate provision of Chapter IV for a specified period if,
having particular regard to tho applicant Member's need for economic
development or reconstruction, it is established that the measure
(a) 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
(b) is designed to promote the establishment or development of a
branch of industry for the processing* of an indigenous primary
commodity, when the external sales of such commodity have been
materially reduced as a result of now or increased restrictlons
imposed abroad; or
(c) 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 the 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 raise 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
(d) is unlikely to be more restrictive of international trade than any
other practicable and reasonable measure permitted under this Charter
* Text to appear in Report: Tje Chinese delegation has expressed some doubt
about the meaning of the word "processing" which appears in (b) and (c) of
paragraph 6. It was agreed that the word "processing" meant the treatment
of a primary commodity for the manufacture of semi-finished and
finished goods; it would not refer to highly developed industries
processes such as the manufacture of precision instruments.
** Text to appear in Report: It was agreed that "International trade"
as cited in paragraph 4 (c) meant international trade in general
and not trade in the specific product to which the measure
related. E/CONF .2/45
Page 6
which could be imposed without undue dificulty 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.
Provided 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 Organization shall not concur in any measure under the
provisions of sub-paragraphs (a), (b) or (c) which is likely
to cause serious prejudice to exports of a primary commodity
on which the economy of another Member is largely dependent.
7. The applicant Member shall apply all measures to which the provisions of
paragraph 6 apply in such a way as to avoid unnecessary damage to the
commercial or economic interests of any other Member.
8. If the proposed measure does not fall within the provisions of paragraph
5 (a) or 6 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 Orgnization, 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 measure, the Organization
shall immediately free the applicant Member to apply it. If there be any
objection, the Organization shall promptly examine the proposed measure,
having regard to the provisions of the Charter, to the consideratlons presented
by the applicant Member and its 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 measure, with or
without modification, it may release the applicant Member from its
obligations under the relevant provisions of Chapter IV, subject to such
/limitations E/CONF.2/45
Page 7
limitations as it may impose.
9. If in anticipation of the concurrence of the Organization in the adoption
of a measure referred to in paragraph 5 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, 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 imports below the level obtaining in the
most recent representative period preceding the date on which the Member's
original notification was made.*
10. In the case of measures referred to in paragraph 5 of this Article,
the Organization shall, at the earliest opportunity but ordinarily within
fifteen days after receipt of the application** referred to in pararaph 5 (a)
or of the application referred to in paragraph 5 (b) 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 the earliest practicable but shall not be more than ninety
subsequent to the receipt of such application; Provided that
(a) if before the date act, unforeseen difficulties arise, the period
may be extended after consultation with the applicant Member. If the
applicant Member does not receive such decision by the date set, it my
after informing the Organization, institute the proposed measure; and
( b) if a Member applies to the Organization under paragraph 5 (a) and
subsequently under pragraph 5 (b) or vice versa the Organization may
*Text proposed by the Chinese delegation to appear as an interpretative note
It was agreed that paragraph 9 would permit a Member to prohibit entireIy 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
** In the draft approved in principle by the co-ordinating Committee was
decided to ask the Drafting Committee to consider the appropriate way
of dealing with the time limit under the provisions of what was
sub-paragraph 1 (c) (ii) and is now paragraph 8.
/set a second E/CONF.2/45
Page 8
set a second date which shall be not more than ninety days subsequent
to the receipt of the second applicatian.
11. The Organization and the Members concerned shall preserve the utmost
secrecy in respect of matters arising under this Article.
/ANNEX 2 E/CONF. 2/45
Page 9
ANNEX 2
ARTICLE 15
PREFERENTIAL ARRANGEMENTS FOR ECONOMIC DEVELOPMENT
1. The Members recognize that special circumstances, including the need for
economic development or reconstruction, may justify new perferential
agreement 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 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.
4. 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 between Members for the establishment of tariff
preferences which it determines to fulfil the following conditions and
requirements:
(a) the territories of the parties to the agreement shall be contiguous
one with another, or all parties shall belong to the same economic region;
(b) any tariff preference 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 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 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 E/CONF . 2/45
Page 10
economic development or reconstruction on terms and condition to be
determined by negotiation with the parties to the agreement. The
provisions of Chapter VIII may be invoked by such a Member 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 years, provided that
any renewal shall be subject to the approval of the Organization and
shall not be for periods greater than five years each.
5. 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 agreement, it
may, as a condition of its approval, require a reduction in an unbound most-
favoured-nation rate of duty proposed by the Member in respect of any product
so covered, if in the light 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 paragraph 4 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 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 shall be considered automatically received.
(b) If the Organization finds that the agreement, while fulfilling the
conditions set forth in paragraph 4, is likely to cause substantial
injury to the external trade of a Member not party to the agreement, the
Member contemplating the agreement may enter into negotiations with
that Member. When agreement is reached in the negotiations, the
Organization shall authorize the Members contemplating the preferential
agreement to depart 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 have failed and the Organization considers that the
injured Member is unreasonnaly preventing the conclusion of the
negotiations it shall permit the necessary departure from the provisions
of Article 16 by fixing a fair compensation to be granted by the parties
to the agreement to the injured Member or, if this is not possible or
reasonable, by ordering such modification of the agreement as will give
such Member fair treatment. The provisions of Chapter VIII may be
/invoked by Page 11 E/CONF.2/45
invoked by such Member only if it does not accept the decision of the
Organization regarding such compensation.
(a) If the Organization finds that the Agreement while fulfilling the
conditions set forth in paragraph 4 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 agreemeent have reached a mutually satisfactory understanding with
that Member.
(d) If the Organization finds that the prospective parties to a regional
preferential agreement have, before 21 November 1947, obtained from
countries representing at least 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, without prejudice
to the conditions governing such recognition, grant the authorization
provided for in paragraph 5 and in sub-paragraph (a) of this paragraph,
provided that the conditions set out in sub-paragraphs (a), (e) and (f)
of paragraph 4 are fulfilled. Nevertheless, 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 Member, and the procedure
of sub-paragraph (b) above shall apply.
INTERPRETATIVE NOTES
Paragrap 4 (a)
The Organization need not interpret the term "economic region" to require
close geographical proxinity if it is satisfied that a sufficient degree of
economic integration exists between the countries concerned.
Paragraph 6 (d)
It is understood that the words "have, before 21 November 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 in respect
of mandated territories which became independent before 21 November 1947, in
so far as these rights have not been specifically denounced before that date.
CONSEQUENTIAL AMENDMENT OF ARTICLE 13
Insert in paragraph 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".
/ANNEX 3 E/CONF.2/45
Page 12
ANNEX 3
PROPOSAL DEAL.ING WITH THE TARIFF COMMITTEE,
THE COMMITTEE ON ECONOMIC DEVELOPMENT AND RECONSTRUCTION, ETC.
1. The Co-ordinating Committee considered three alternative proposals
submitted by the delegation of the United States, for dealing with the
problem of the Tariff Committee, the proposed Committee on Economic
Development and Reconstruction and a possible Commercial Policy Committee.
2. It was agreed that the second proposal would be accepted as a basis
for the work of the Committee. Under this alternative:
(a) there would be no provisions in the Charter for a Tariff Committee,
a Committee on Economic Development and Reconstruction or a Commercial
Policy Committee.
(b) Members, not parties to the G.A.T.T. would enjoy G.A.T.T.
concessions for two years, but these concessions would thereafter be
withdrawn unless the Member concerned had become party to the G.A.T.T.
3. The Committee considered in addition amendments to this proposal
submitted by various members of the Committee.
4. The Committee agreed to submit the following text of the Articles or
paragraphs affected:
A. 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 "
B. PARAGRAPHS 1 AND 2 OF ARTICLE 74
"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."
C. PARAGRAPH 4 OF ARTICLE 17
(Underling and Square Brackets Signify Additions
and Deletions from the Text of Paragraph 4 as
Contained in White Paper 5374)
"(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, and shall cease to require the
/application E,/CoNF .2/45
Page 13
application [of the concession 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 year from the entry into
of this Charter for [that] such Member of the concession granted
force of this Charter for [that] such Member of the cocession granted
in the relevant schedule of the General Agreement by any other Member
which has requested such Member to negotiate with a view to becoming
contracting party to the General Agreement on tariffs and trade without
concluding an agreement; Provided that the Organization by a majority
vote may require such [an extension] continued application to any Member
which [either has not been requested to become, or] has been unreasonably
prevented from becoming a party to the General Agreement pursuant to
negotiations in accordance with the provisions of this Article.
(b) If a Member which is a contracting party proposes to withheld
tariff concessions from the traded of a Member not a party to the
General Agreement on Tarlffs and Trade, it shall give notice in writing
to the Organization and to the affected Member, which 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 paragraph 4 (a).
(c) In any judgment as to whether a 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 without"
sufficient justification 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 from the day on which such notice is received by the
Organization.
D. DELETE ARTICLE 81: THE TARIFF COMMITTEE,
(5) The Committee agreed that the Fact that no provision was made in the
Charter for a Tariff Committee, a Committee for Economic Development and
Reconstruction or a Commercial Policy Committe, would not preclude the
Reconstruction or a Commercialm Committee, would not preclude the
eetablishment by the organizationn of any of these Committees in the future.
(6) In relation to paragraph 4 (a) of Article 17, it was agreed that whereas
this paragraph provides that Article 16 does not require the continued
application of the tariff concessions embodied in the schedules of the GATT to
the trade of a Member which has failed to become a party to the GATT it does E/CONF .2/45
Page 14
treatment required by the Charter, e.g. in relation to internal taxation,
the admninistration of quantitative restrictions etc..
(7) It was also agreed that since Members would under the provisions
of Article 17 be required to become contracting parties to the GATT, it
was desirable that they should be aware of the obligations which would be
imposed upon them as contracting parties. In this connection attention
was drawn to the fact that
(a) it has been proposed to amend the GATT to permit the admission
of a country as a contracting party upon a vote of two-thirds of
the contracting parties instead as of unanimous vote as at present
required.
(b) it was decided to suggest to the heads of delegations that they
should recommend to the contracting parties that they amend the
text of paragraph 5 of Article XXV of the GATT 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
circumstances 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 E/CONF . 2/45
Page 15
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 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 notice of withdrawal from the
Agreement. The withdrawal shall take effect upon the
expiratlon of sixty days from the day on which such
notice is received by the CONTRACTING PARTIES.
(c) The provision 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.
/ANNEX 4 E/CONF.2/45
Page 16
STATEMENT MADE BY MR. LIRPAS RESTREPO (COLOMBIA)
TO THE CO-ORDINATING COMMITTEE
AT ITS MEETING ON 25 FEBURARY 1948
I have been instructed by my Governnment to set before the Co-ordinating
Committee the position of my country toward 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 dispositlons 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 proposals 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 interests of our people.
/The inclusion E/CONF. 2/45
Page 17
The inclusion of Article 19 in the Draft Charter permitted our
government to accept the invitation to attend this conference, against the
fact that a very strong opposition exists 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 now
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 most mountainous in 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 from 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, was 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 E/CONF.2/45
Page 18
reformed if we wish to obtain a general and sincere agreement. Let me tell
you what our objections are, and what reforms 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
may 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
follows:
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 decisive importance.
/In paragraph 4 b E/CONF. 2/45
Page 19
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
ii. 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 Committee 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 E/CONF.2/45
Page 20
of the Charter, and we always thought that through certain reforms in
Article 13, it would be possible to guarantee to some extent the interests
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 Articie 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 amendments 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 prior 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 E/CONF. 2/45
Page 21
country acts beyond the limits the Charter may fix. Nevertheless we want
these limits 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 handed 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 techniical improvement,
and whose territory offers peculiar difficulties to use of modern
eqiupments. They are not in a position to modify such conditions in a
short period.The governmen 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 an is subject
to negotiation for its reduction; you must suffer the instabiltiy 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 priases
of the international distribution of work and free trade. Our duty is to
guarantee these people stable and remunerate prices, eand a safe market
for their products. We do not wish to cause any prejudce to other
countries bu it seems absurd that we must pay for the wellbeing of people
f other countries with the misery of our own peasants..
I wan 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
competiion 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 E/CONF.2/45
Page 22
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 customs tariffs, or by a tariff quota; or by any of the other ingenious
means which everyone is learning here to evade the positive effects 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 problems 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 accepts 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 already 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 measures 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-paragraphs i Page 23 E/CONF.2/45
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 awaited reform. Instead we can go and say to our countries that
sub-paragraph i of 4 b of the new 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 contemplated in sub-paragraph ii. It
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 to 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 seems
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 member's 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 E/CONF. 2/45
Page 24
This leaves sub-paragraph 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 to imagine a broader concept, and those friends or conciseness
are now in a position to know how many phrases of the original Article 13
can be changed by a single ford without in the least diminishing the power
of the Organization. This remark makes it unnecessary to comment on the
other sentences of this sub-paragraph.
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 responsibility 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. |
|
GATT Library | xs234yr3983 | Report of the credentials Committee | Interim Commission for the International Trade Organization, September 6, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 06/09/1948 | official documents | ICITO/EC.2/13 and ICITO/EC.2/11-ICITO/EC.2/14 | https://exhibits.stanford.edu/gatt/catalog/xs234yr3983 | xs234yr3983_90060206.xml | GATT_147 | 94 | 687 | INTERIM COMMISSION
FOR THE INTERNATIONAL
TRADE ORGANIZATION
COMMISSION INTERIMAIRE DE
L'GANISATION INTERNATIONALE
DU COMMERCE
UNRESTRICTED
ICITO/EC. 2/13
6 September 1948
ORIGINAL: ENGLISH
Executive Committee
Second Session
REPORT OF THE CREDENTIALS COMMITTEE
The Credentials Committee which was composed of
the representative of China, Colombia, Czechoslovakia
and Greece was presided over by Dr. Brigard Silva
(Colombia).
The Committee examined the credentials
produced by the representatives attending the Second
Session of the Executive Committee and found them
all to be in good form and in accordance with the
requirements of Rule 6 of the Rules of Procedure. |
GATT Library | xw049mr8081 | Report of the Drafting Group | United Nations Conference on Trade and Employment, January 6, 1948 | First Committee: Employment and Economic Activity and Third Committee: Commercial Policy Sub-Committee C: Proposed Resolution on Employment | 06/01/1948 | official documents | E/CONF.2/C.1/C/W.10, E/CONF.2/C.1/A/W.1, and C.1/C/W.1-11 | https://exhibits.stanford.edu/gatt/catalog/xw049mr8081 | xw049mr8081_90180297.xml | GATT_147 | 617 | 4,492 | RESTRICTED
United Nations Nations Unies
E/CONF.2/C.1/C/W.10
CONFERENCE CONFERENCE 6 January 1948
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
FIRST COMMITTEE: EMPLOYMENT AND ECONOMIC ACTIVITY
SUB-COMMITTEE C: PROPOSED RESOLUTION ON INTERNATIONAL
ACTION RELATING TO EMPLOYMENT
Report of the Drafting Group
The Drafting Group recommends the following text for consideration by
the Sub-Committee:
"THE UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Having recognized in drawing up the Charter for an International
Trade Organization that future prosperity and peace must be founded
on full and productive employment and large and steadily growing
demand which, although primarily dependent upon internal measures
taken by individual countries, also require consultation and concerted
action as well as assistance from inter-governmental agencies;
Taking note of the resolution adopted by the Second Session
of the General Assembly which approved the initiation of surveys of
economic conditions and trends and requested recommendations by
the Economic and Social Council on appropriate measures relating thereto;
Recognizing that inflationary as well as deflationary tendencies
need to be combatted and that, with respect to each, different measures
may be appropriate for different countries, according, for example, to
the stage of economic development or reconstruction and the availability
of the various factors of production;
Noting also that the Economic and Employment Commission and its
Sub-Commission on Employment and Economic Stability have been instructed
to consider the draft resolution on international action relating to
employment prepared by the First Session of the Preparatory Committee,
and reaffirming its interest in the four measures therein specifically
recommended for study;
1. Considers that studies in the field of employment and
economic activity should be advanced as rapidly as possible
and that attention should be given now to methods of assuring
that the high levels of employment and economic activity at
present prevailing in many countries shall be maintained even
/when special Page 2
when special factors of temporary duration have ceased to operate,
and accordingly
SUGGESTS THAT, in addition to the investigations which it
has already initiated, the Economic and Social Council, with a
view to making appropriate recommendations,
(a) Request the submission at an early date, by Members
of the Uniited Nations and by non-Members represented at the
present Conference, of information concerning action which
they are now taking to achieve or maintain full employment
and economic stability and the nature of any prepared plans
to prevent a future decline, and
(b) Request the various Specialized Agencies to indicate
the nature and extent of the assistance they are preparing
to provide if a decline in employment and economic activity
threatens.
2. Considers that for a many countries, t-the probe msof persistent
surplus or shortage of manpower are closely linked with the attainnmet
of full employment and that their solution would advance the aims of
the International Trade Organization; and accordingly
SUGGES TSTHAT t hcenoEomic and Social Council initiate or
encourage stuedis andeco rmmend appropriate action in connection
with international aspects ofpopulation problems as these releat
to employmen t,production and demand. . ..
3. Considers that, in relation to the maintenance of full
e mpo't ,itsadvntageous to countries whirch rerquie..
and o countries whiworch supWly Yers an a seasonal or temporary
basisto adopt regulations which will mutually safeguard their.
and also portect such mdintereanlo protsuchect workers against unfair competition
or treatment; and accordingly .
SSTST th Ecoouncil in conjuctionnomic and Social Co iu nciluconJtion
with apiproprate agencies such as the Internna tioalLabour .
Oion comrganiz, ation and its Permanent Migratmitteeconsider
the probeof temporary or seasonal migration of workers,,;
fvor the purposeof fmgormvulai onentions and model bilateral
agreements on the basis of which individual governments may
concert theirctions to ensure mutually advantageous arrangements
foour thern tries ad fair conditions" for the workers co"ncrned. |
GATT Library | vf948xp7219 | Report of the Interim Commission regarding chapter VIII of the Havana charter | Interim Commission for the International Trade Organization, September 13, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 13/09/1948 | official documents | ITICO/EC.2/17 and ICITO/EC.2/15-ICITO/EC.2/21 | https://exhibits.stanford.edu/gatt/catalog/vf948xp7219 | vf948xp7219_90060213.xml | GATT_147 | 508 | 3,168 | INTERIM COMMISSION COMMISSION INTERMAIRE DE UNRESTRICTED
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE
ITICO/EC.2/17 13 September 1948
TRADE ORGANIZATION DU COMMERCE ORIGINAL : ENGLISH
Executive Committee
Second Session
REPORT OF THE INTERIM COMMISSION REGARDING
CHAPTER VIII OF THE HAVANA CHARTER
A.
The Interim Commission examined the problems arising out
of the resolution adopted by the United Nations Conference on
Trade and Employment relating to the review of decisions of
the Organization by the International Court of Justice and
out of Annex N of the Havana Charter. It was the conclusion
of the Interim Commission, after consultation with the
Registrar of the International Court of Justice, that no
amendment to the Charter was necessary, on the understanding
that the following is the interpretations of the relevant
provisions of the Charter:-
1. In connection with the procedure for obtaining an
advisory opinion under paragraph 2 of Article 96
(a) Any Member, party to a dispute between. two or more
Members which has been the subject of a decision of the
Conference contrary to the position of that Member on
any aspect of the dispute, will be deemed to have an
interest prejudiced by the said decision.
(b) The fact that a decision of the Conference is
contrary to the position of a Member, not a party to
such dispute, on the merits of the dispute shall not
in itself determine the auestion whether the interest
of such Member has or has not been. prejudiced by the
decision.
2. Article 96 permits the Organization, in its request to
the Court for an advisory opinion, to include the question of
monetary compensation for a Member whose interests have been
prejudiced in a case arising out of a breach by a Member of
an obligation under the Charter. In such a case, the request
for an advisory opinion shall, at the instance of a Member
party to the dispute, include the question of monetary
compensation.
B.
The Interim Commission considered that, as a general
rule, the request for an advisory opinion should not include
a question as to monetary compensation:-
(a) for any period prior to the date of the decision
of the Conference, in cases where the decision has
been adverse to the complaint or ICITO/EC. 2/17
page 2
(b) in other cases, for any period prior to thirty
days before the time when written representations or
proposals satisfying the requirements of Article 93
of the Charter were first made with respect to the
dispute.
The Interim Commission calls to the attention of the
First Session of the Conference of the Organization the fact
that paragraph 4 of Article 95 of the Charter in its present
form does not provide a right of withdrawal in a case where
the International Court of Justice decides that monetary
compensation is the appropriate remedy.
C.
Annexed to this Report are two aide-memoires prepared by
the Registrar of the International Court containing a record
of the questions put to the Registrar by members of the
Interim Commission in the course of consultation and of the
answers given thereto. |
GATT Library | wf385gd0785 | Report of the Joint Sub-Committee | United Nations Conference on Trade and Employment, January 17, 1948 | Fifth Committee: Inter-Governmental Commodity Agreements and Sixth Committee: Organization | 17/01/1948 | official documents | E/CONF.2/C.5/14, E/CONF.2/C.6/45, and E/CONF. 2/C. 5/1-19 C. 5/A/1-2 | https://exhibits.stanford.edu/gatt/catalog/wf385gd0785 | wf385gd0785_90200064.xml | GATT_147 | 592 | 4,214 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.5/14
ON DU E/CONF.2/C.6/45
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
FIFTH COMMITTEE: INTER-GOVERNMENTAL COMMODITY AGREEMENTS
SIXTH COMMITTEE: ORGANIZATION
REPORT OF THE JOINT SUB-COMMITTEE
1. With the agreement of the Sixth Committee, the Fifth Committee at its
thirteenth meeting approved the establishment of a joint sub-committee,
consisting of the members of Sub-Committee I of the Sixth Committee, together
with representatives of the Fifth Committee, to
(a) draft an exception for national security in relation to
inter-governmental commodity agreements on the basis of the
recommendations contained in paragraph (ii) (a) and (b) on page 9 of
the Report of Sub-Committee A of the Fifth Committee (document
E/CONF.2/C.5/9), and
(b) recommend regarding the location in the Charter of such an
exception.
2. The Joint Sub-Committee consisted of representatives of the following
delegations:
Australia Iraq
Chile Netherlands
Costa Rica New Zealand
Czechoslovakia Pakistan
Denmark Philippines
Guatamala Union of South Africa
France United Kingdom
India United States of America
3. Mr. Luis TINOCO (Costa Rica) was elected CHAIRMAN of the Joint
Sub-Committee.
4. In the course of its deliberations the Joint Sub-Committee examined the
proposels on page 9 of E/CONF.2/C.5/9 and in E/CONF.2/C.5&6/W.1/Add.l.
5. The Sub-Committee reached agreement on the following points:
(a) That the exception to be made regarding the requirements of
national security should appear in Article 94.
(b) That the term of this exception should be as follows:
"Nothing in this Charter shall be construed
"(a) to prevent any Member from entering into or carrying out any
/inter-governmental E/CONF.2/C.5/14
E/CONF.2/C.6/45
Page 2
inter-governmental agreement, or other agreement on behalf of
a government for the purpose specified in this exception, made by
or for a military establishment for the purpose of meeting essential
requirements of the national security of one or more of the
participating countries."
(c) That the insertion of this provision in Article 94 be accompanied
by the addition to Section D of Chapter IV of a provision for consultation
on the liquidation of any stock piles accumulated pursuant to this
paragraph of Article 94.
6. The Joint Sub-Committee has communicated informally to the Sub-Committee
of the Third Committee dealing with Section D of Chapter IV its view concerning
the desirability of amending that Section to cover consultation on the
liquidation of stocks and has also transmitted to that Sub-Committee possible
text for such a provision which might serve as a basis for discussion. The
representative of the United Kingdom indicated that acceptance by his delegation
of the proposed new paragraph in Article 94 was contingent upon the insertion
elsewhere in the Charter of a satisfactory provision relating to consultation
on the liquidation of stocks.
7. The Joint Sub-Committee considered the possible inclusion of the word
"solely" before " for the purpose of ..." in the text recommended for the new
paragraph (c) of Article 94 but felt that the question of including or omitting
this qualifying word should be dealt with by Sub-Committee I of the Sixth
Committee in relation to Article 94 as a whole.
8. It is suggested by the Joint Sub-Committee that the Central Drafting
Committee might be asked to consider whether at the end of the proposed new
paragraph of Article 94, the word "countries" or the word "states" should be
used.
9. The representative of Iraq indicated that his delegation could not agree
to the inclusion of the proposed new paragraph in Article 94 pending
determination of the final shape of the hole of Article 94 in the light of
the amendment submitted by the Iraq Delegation. |
GATT Library | rk564yq3543 | Report of the joint Sub-Committee | United Nations Conference on Trade and Employment, January 17, 1948 | Fifth Committee: Inter-Governmental Commodity Agreements and Sixth Committee: Organization | 17/01/1948 | official documents | E/CONF.2/C.5/14, E/CONF.2/C.6/45, and E/CONF.2/C.6/44-75 | https://exhibits.stanford.edu/gatt/catalog/rk564yq3543 | rk564yq3543_90170097.xml | GATT_147 | 604 | 4,190 | United Nations Nations Unies UNRESTRICTED
ON E/CONF.2/C.5/14
DU E/CONF.2/C.6/45
TRADE AND EMPLOYMENT COMMERCE ET DE DE L'EMPLOI 17 January 1948
GINAL: ENGLISH ~~~~~~ORI!G]NA:Lt =NGIM;
ENTAL COMMODITY AER IMENTSI-'.SIM CO C7:, OPRT1ATIO
N REPORT OF THE JOINT SUB-COMMTTEEm TR op O E JOMmU sUB-aCI
he Sixth Committee, the Fof the Sith Comi-ttee, the Fifth Committee at its
thirteen meeting approvjd, ths estammishment of a Joint aub-coem3iee,
consisting of the members of Sub-Committee I of the Sixth Committee, together
virepre se;tatives of the Fifth Committee, to
(a) dzrefsecurity tion for national meourity in relation to
inter-go.vorlntal commodity agreements on the basis of the
n paragraphs ( icontained In preagraphs (i) (a) and (b) on pe 9 of
the Report of Sub-Committee A of the Fifth Commttee (document
E/Ca. 2/O5/9), end
(b) roo regarding the locationann the Charter of such na
2, The Joint Sub.Committee consisted of reprowingative of the folling
delegations:
Australi- Iraq
Chile nds Netherlar~s
Cost.. X New Zealand
Czechoslovakias Pakietan
Demrk. Philippines
Guatamla Union niW South Africa
Frece Un om Vted Kingdc
India Unitemedi States of Arca
3. Mr. Luis TIicaO (Costa Rjoa) HAIRMAN cted CMA4 of the Joinit
Sub-C=m; ttee.
4. in the course of its deliberations themmioint Sub-Couittee examined the
proposals on OWFge 9 of EaCWN.2/0.5/9 endW in E/CONF.2/15&6/w.l/Add. .
5. The Sub-Gommittee reached agreement on the following points:
(a) That the exception to be made regarding the requirements of
national security should appear in Article 94.
(b) That the terms of this exception should be as follows:
"Nothing in this Charter shall be construed
"(c) toMomevent any Heiber from entering into or carrying out any
m/inter-goverwental E/CONF.2/C.5/14
E/CONF. 2/C.6/45
Pege 2
inter-govarnmental agreement, or other agreement on behalf of
a Government for the purpose specified in this exception,made by
or for a military establishment for the purpose of meeting esseantial
requirements of the national security of one or more of the
participating countries."
(o) That the insertion of this provision in Article 94 be accompanied
by the addition to Section D of Chapter IV of a provision for consultation
on the liquidation of any stock piles accumulated pursuant to this
paragraph of Article 94.
6. The Joint:Sub-Committee has communicated informally to the Sub-Committee
of the Third Committee dealing with Section D of Chapter IV its view concerning
the desirability of amending that Section to cover consultation on the
liquidation of stocks and has also transmitted to that Sub Committee possible
texts for such a provieion which might serve as a basis for discussion. The
representative of the United Kingdom indicated that acceptance by his delegation
of the proposed new paragraph in Article 94 was contingent upon the insertion
elsewhere in the Charter of a satisfactory provision relating to consultation
on the liquidation of stocks.
7. The Joint Sub-Committee considered the possible inclusion of the word
"solely" before "for the purpose of ..." in the text recommended for the new
peragraph (c) of Article 94 but felt that the question of including or cmitting
this qualifying word should be dealt with by Sub-Committee I of the Sixth
committee in relation to Article 94 as a whole.
8. It is suggested by the Joint Sub-Committee that the Central Drafting
Committee might be asked to consider whether at the end of the proposed new
paragraph of Article 94, the word "countries" or the word "states" should be
used.
9. The representative of Iraq indicated that his delegation could not agree
to the inclusion of the proposed new paragraph in Article 94 pending
determination of the final shape of the whole of Article 94 in the light of
the amendment submitted by the Iraq Delegation. |
GATT Library | zm130zk8941 | Report of the Legal Working Group | General Agreement on Tariffs Trade, August 26, 1948 | General Agreement on Tariffs and Trade (Organization), Contracting Parties, and Working Party 3 on Modifications to the General Agreement | 26/08/1948 | official documents | GATT/CP 2/WP.3/4 and GATT/CP.2/WP.3/1-6 WP.3/6/Corr.1 | https://exhibits.stanford.edu/gatt/catalog/zm130zk8941 | zm130zk8941_91870482.xml | GATT_147 | 509 | 3,205 | RESTRICTED
GATT/CP 2/WP.3/4
26 August 1948
ORIGINAL: ENGLISH
GENERAL AGREENENT ON TARIFFS & TRADE
Contracting Parties
Second Session
WORKING PARTY 3 ON MODIFICATIONS TO THE GENERAL AGREEMENT
REPORT OF THE LEGAL WORKING GROUP.
1. The Legal Working Group recommends the attached
Draft Protocol for adoption by the Working Party,
2. The Government of. Chile would not be included as a
party to the Protocol as provision has been made to cover
acceptance by the Government of Chile in the Draft Protocol
which the Legal Working Group has prepared for consideration
by the contracting parties in connection with the
request by the Government of Chile for an extension of
time in which to sign the Protocol of Provisional
Application.
3, Parts of paragraphs 4, 5 and 6 have been presented
in square brackets. If the contracting parties agree
that a contracting party should be permitted to accept
one or more of the revised texts and not the others,
the second alternative shown by the square brackets in
paragraphs 4 and 5 should be deleted and the words in
square brackets In paragraph 6 retained, In the event
of the contracting parties deciding that the revised
texts are part and parcel of the one bargain, the
opposite procedure should be followed.
The Governments of acting
in their capacity of contracting parties to the General
Agreement on Tariffs and Trade (hereinafter referred to as
the Agreement)
HEREBY AGREE AS FOLLOWS:-
1. The texts of Articles I, II and XXIX of the Agreement
shall read as follows:- GATT/CP 2/WP. 3/A
page 2
2. The texts of Articles III, VI, XIII, XV, XXVI and
XXVIII of the Agreement shall read as follows::-
3. This Protocol done in a single English and a single
French original both texts authentic shall, following
its sIgnature at the close of the Second Session of the
Contract ing Parties, be deposited with the Secretary-General
of the United Nations, The deposit of the Protocol wills
as from the date of deposit, constitute an acceptance
of' the Protoc.ol by any government whose representative
has signed without qualification. The instruments of
acceptance of other governments will be deposited with
the Secretary-General of the United Nations.
4. [Each of] [the text] set out in paragraph 1 of this
Protocol shall enter into force upon acceptance of [it]
[them] by all the governments which are at the time
contracting parties
5. [Each of] [The texts] set out in paragraph 2 of this
Protocol shall enter into force upon acceptance of [it]
[them] by two thirds of the governments which are at that
time contracting parties.
6. The Secretary-General of the United Nations will
inform all interested governments of each acceptance of this
Protocol [or part thereof] and of the date upon which
[each part of] this Protocol enters into force. The
Secretary-General is authorized to effect registration
of this Protocol at the appropriate tine.
IN WITNESS WHIEEOF the respective representatives duly
authorized to that effect, have signed the present Protocol.
DONE at Geneva this day of August one thousand nine
hundred end forty eight. |
GATT Library | xd352rc9451 | Report of the Legal Working Party upon the decisions taken by the Contracting Parties pursuant to the report of the Working Party on Article XVIII | General Agreement on Tariffs Trade, September 13, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 13/09/1948 | official documents | GATT/CP.2/42 and GATT/CP.2/38/Rev.1 CP.2/39+Add.1 CP.2/40-45 CP.2/44/Add.1 | https://exhibits.stanford.edu/gatt/catalog/xd352rc9451 | xd352rc9451_90320063.xml | GATT_147 | 318 | 1,977 | RESTRICTED
LIMITED B
GATT/CP. 2/42
13 September 1948
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS & TRADE
Contracting Parties
Second Session
REPORT OF THE LEGAL WORKING PARTY UPON THE
DECISIONS TAKEN BY THE CONTRACTING PARTIES
PURSUANT TO THE REPORT OF THE WORKING PARTY
ON ARTICLE XVIII
The Legal Working Party recommends that the following
amendments should be made in the Decisions taken by the
CONTRACTING PARTIES pursuant to the Report of Working Party
on Article XVIII (Document GATT/CP.2/38) :-
1) Consolidate the first two paragraphs of the preamble
of Decisions. I and II (page 13) to read as follows:-
''The CONTRACTING PARTIES exercising their
power of waiver under paragraph 5 of
Article XXV of the General Agreement on
Tariffs and Trade."
2) Amend the first paragraph of the preamble of Decision
III (page 14) in the same way.
3) Amend the second paragraph of the preamble of Decision
III to read:-
"HAVING noted that decisions under the
provisions of paragraph 6 of Article XVIII
`of the' Agreement concerning measures
notified by the Governments of Cuba and
the Netherlands (the latter in respect of
the Netherlands Indies) shall be given.... "
Amend the third paragraph of the preable of Decision
III to read:-
"HAVING noted that the next session of
the CONTRACTING PARTIES is not scheduled
to be held...."
5) Amend the word "shall" in the operative part of
Decision III to read: "may".
The Legal Working Party recommend that there should be
inserted in the Report of Working Party 5 a statement that
It follows from Decision III that the Governments of Cuba
and the Netherlands are permitted to maintain the measures
to which that Deeision refers until a decision regarding them
is taken by the CONTRACTING PARTIES.
The Delegation of the United States reserved the right
to introduce further drafting amendments to the Decisions in
the meeting of the CONTRACTING PARTIES should it see fit to
do so. |
GATT Library | xd497yg2377 | Report of the Legal Working Party upon the form of the protocols to contain the modifications agreed by working party no. 3 | General Agreement on Tariffs and Trade, September 2, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 02/09/1948 | official documents | GATT/CP.2/27 and GATT/CP.2/22/Rev.1+Rev.1/Corr.1 CP.2/22/Rev.1/Annex II/Rev.1 CP.2/23-27 | https://exhibits.stanford.edu/gatt/catalog/xd497yg2377 | xd497yg2377_90320044.xml | GATT_147 | 761 | 4,923 | RESTRICTED
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GATT/CP. 2/27
2 September 1948
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
Contracting Parties
Second Session
REPORT OF THE LEGAL WORKING PARTY UPON THE FORM OF THE
PROTOCOLS TO CONTAIN THE MODIFICATIONS AGREED BY WORKING
PARTY NO. 3.
The Legal Working Party recommends that the CONTRACTING
PARTIES should adopt the two attached draft Protocols to
embody the modifications contained in the Report of Working
Party No. 3. GATT/CP.2/27
Page 2
PROTOCOL MODIFYING PART I AND ARTICLE XXIX OF
THE GENERAL AGREEMENT ON TARIFFS AND TRADE.
The Governments of acting in their
capacity of contracting parties to the General Agreement on
Tariffs and Trade (hereinafter referred to as the Agreement)
Desiring to effect an amendment to the Agreement,
pursuant to the provisions of ArticleXXX thereof,
HEREBY AGREE AS FOLLOWS:
1. The texts of Articles I, II and XXIX of the Agreement
and certain related provisions in Annex I shall be modified
as follows:-
2. This Protocol shall, following its signature at the
close of the Second Session of the Contracting Parties, be
deposited with the Secretary-General of the United Nations,
3. The deposit of this Protocol will, as from the date of
deposit, constitute the deposit of the instrument of acceptance
of the amendment set out in paragraph 1 of this Protocol
by any contracting party the representative of which has
signed this Protocol without any reservations
4. The instruments of acceptance of those contracting
parties which have not signed this Protocol, or which have
signed it with a reservation as to acceptance, will be
deposited with the Secretary-General of the United Nations.
5. The amendment set out in paragraph 1 of this Protocol
shall, upon the deposit of instruments of acceptance pursuant
to paragraphs 3 and 4 of this Protocol by all the governments
which are at that time contracting parties, enter into force
in accordance with the provisions of Article XXX of the
Agreement. GATT/CP.2/27
Page 3
6. The Secretary-General of the United Nations will inform
all interested governments of each acceptance of the amendment
set out in this Protocol and of the date upon which such
amendment enters into force.
7. The Secretary-General is authorized to effect
registration of this Protocol at the appropriate time.
IN WITNESS WHEREOF the respective representatives duly
authorized to that effect, have signed the present Protocol.
DONE, at Geneva, in a single English and a single French copy,
both texts authentic, this day of September one
thousand nine hundred and forty eight. GATT/CP. 2/27
Page 4
PROTOCOL MODIFYING PART II AND ARTICLE XXVI OF
THE GENERAL AGREEMENT ON TARIFFS AND TRADE.
The Governments of acting in
their capacity of contracting parties to the General
Agreement on Tariffs and Trade (hereinafter referred to
as the Agreement)
Desiring to effect an amendment to the Agreement,
pursuant to the provisions of Article XXX thereof,
HEREBY AGREE AS FOLLOWS
1. The texts of Articles III, VI, XIII, XV, XVIII and
XXVI of the Agreement and certain related provisions in
Annex I shall be modified as follows:-
2. This Protocol shall following its signature at the
close of the Second Session of The Contracting Parties, be
deposited with the Secretary-General of the-.United Nations.
3. The deposit of this Protocol will, as from the date of
deposit, constitute the deposit of the instrument of
acceptance of the amendment set out in paragraph, 1 of this
Protocol by any contracting party the representative of
which has signed this Protocol without any reservation.
4. The instruments of acceptance of those contracting
parties which have not signed this Protocol, or which have
signed it with a reservation as to acceptance, will be
deposited with the Secretary-General of the United Nations.
5. The amendment set out in paragraph l of this Protocol
shall, upon the deposit of instruments of acceptance pursuant
to paragraphs 3 and 4 of this Protocol by two-thirds of the
governments which are at that time contracting parties, enter
into force in accordance with the provisions of Article XXX
of the Agreement.
6. The Secretary-General of the United Nations will inform
all interested governments of each acceptance of the amendment
set out in this Protocol and of the date upon which such
amendment enters into force. GATT/CP. 2/27
Page 5
7. The Secretary-General is authorized to effect
registration of this Protocol at the appropriate
time.
IN WITNESS WHEREOF the respective representatives,
duly authorized to that effect, have signed the present
Protocol,
DONE, at Geneva, in a single English and a single
French copy, both texts authentic, this day
of September one thousand nine hundred and forty eight. |
GATT Library | pf023mb2700 | 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 | General Agreement on Tariffs and Trade, August 26, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 26/08/1948 | official documents | GATT/CP.2/20 and GATT/CP.2/13/Add.2,3 CP.2/14-22, CP.2/22/Add.1,Corr.1 | https://exhibits.stanford.edu/gatt/catalog/pf023mb2700 | pf023mb2700_90320032.xml | GATT_147 | 355 | 2,271 | RESTRICTED
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GATT/CP .2/20
26 August 1948
ORIGINAL: ENGLISH
GENERAL AGEEMENT 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;
The Legal. Working Party recommends for consideration
by the Contracting Parties the attached Draft Protocol as
being the simplest method of acceding to the request made
by the Government of Chile. In preparing this Protocol
the Legal Working Party assumed that each of the
Contracting Parties would be in a position to sign this
Protocol and therefore bring it into force at the
conclusion of the current session. If this is not the
case a different approach will need to be adopted. GATT/CP .2/20
page 2
The Governments of ............................... being
the governments which have signed the Protocol of
Provisional Application of the General Agreement on
Tariffs and Trade (hereinafter referred to as the Protocol)
HAVING considered the request of the Government
of Chile for an extension of the period of time allowed
for signature under paragraph 4 of the Protocel.
HEREBY AGREE AS FOLLOWS:
1. The following sentence shall be added at the end of
paragraph 4 of the Protocol:
"The preceding provisions of this paragraph shall
apply to The Government of Chile, in respect of which this
Protocol shall remain open for signature until . . . . 194...
provided that by that date the Government of Chile has
deposited an instrument of acceptance of all the amendments
to the provisions of General agreement, made by the Protocol
of Modifications drawn up at the Second Sesston of the
Contracting Parties to the General Agrrement on Tariffs
and Trade.
2. This Protocol shall enter into force from this day.
The original of it in a single English and a single French
copy, both text's authentic, shall be deposited with the
Secretary-General who is authorized to effect registration.
IN WITNESS WHEREOF the respective representatives,
duly authorized to that effect, have signed this Protocol.
DONE at Geneva this ............. day of ....................
One thousand nine hundred and forty-eight. |
GATT Library | gz911vb7006 | Report of the Sub-Committee | United Nations Conference on Trade and Employment, January 7, 1948 | First Committee: Employment and Economic Activity and Third Committee: Commercial Policy Sub-Committee C: Proposed Resolution on Employment | 07/01/1948 | official documents | E/CONF.2/C.1/17 and E/CONF.2/C.1/1-26 | https://exhibits.stanford.edu/gatt/catalog/gz911vb7006 | gz911vb7006_90180253.xml | GATT_147 | 1,000 | 7,265 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.1/17 7 January 1948
ON DU
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
FIRST COMMITTEE: EMPLOYMENT AND ECONOMIC ACTIVITY
SUB-COMMITTEE C: RESOLUTION ON EMPLOYMENT
Report of the Sub-Ccmmittee
As authorized by the First Comittee at its ninth meeting, 2 December 1947,
the Chairman of the Committee appointed a Sub-Committee to consider whether or
not a resolution was required and, if so, to recommend a text for such a
resolution in the light of the draft prepared by the First Session of the
Preparatory Committee and any further proposals which might be received from
individual delegations (see document E/CONF.2/C.1/16). The Sub-Committee was
instructed to take account also of the new text of Chapter II and of the
information reported in document E/CONF.2/5.
Representatives of the following Delegations comprised the Sub-Committee:
Australia Pakistan
Belgium . Poland
Brazil El Salvador
France Sweden
Italy United Kingdom
Lebanon United States of America
Mexico
Mr. J. E. G. PIERSON (United States of America) was elected Chairman.
After some discussion the Sub-Committee agreed that it would be appropriate
and desirable, to recommend that the Conference adopt a resolution relating to
employment.
The Sub-Committee concluded that it would not be desirable to reiterate
the text of the draft resolution prepared by the First Session of the Preparatory
Committee since that resolution had already been mentioned in a resolution of the
Economic and Social Council and, at least in part, had been included in
instructions to the Sub-Commission on Employment and Economic Stability. It was
felt, however, that it would be useful to affirm in the present text the interest
of the Conference in all four of the measures dealt with in the draft resolution
of the Preparatory Committee (see page 1 of E/CONF.2/5).
In the preparation of a text the Sub-Committee examined proposals submitted
by the Delegations of Australia, Brazil, Denmark, Italy, Mexico and Poland, and
an informal draft put forward by the Chairman of the Sub-Committee. The
/Sub-Committee also E/CONF.2/C.1/17
Page 2
Sub-Committee also took account of suggestions presented orally by the
representatives of Czechoslovakia, France, Lebanon and Pakistan.
The Sub-Committee appointed a Drafting Group, comprising representatives
of the Delegations of Australia, Mexico and the United Kingdom, which met under
the chairmanship of Miss N. K. FISHER (United Kingdom) and prepared a text
which was subsequently considered and modified by the full Committee.
The Sub-Committee hold four meetings and reached agreement on the
accompanying text which it recommends to the First Committee for approval:
RESOLUTION TO THE ECONOMIC AND SOCIAL COUNCIL RELATING TO EMPLOYMENT
THE UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Having recognized in drawing up the Charter for an International
Trade Organization that future prosperity and peace must be founded on
full and productive employment and large and steadily growing effective
demand which, although primarily dependent upon internal measures taken
by individual countries also require consultation and concerted action
as well as assistance from inter-governmental agencies;
Recognizing that different measures may be appropriate for different
countries, according, for example, to the stage of economic development
or reconstruction and the availability of the various factors of
production;
Recognizing that inflationary as well as deflationary tendencies.
need to be combatted;
Taking note of the resolution adopted by the Second Session of the
General Assembly which approved the initiation of surveys of economic
conditions and trends and requested recommendations by the Economic and
Social Council on appropriate measures relating thereto;
1. Notes that the Economic and Employment Commission and its
Sub-Commission on Employment and Economic Stability have been instructed
to consider the draft resolution on international action relating to
employment prepared by the First Session of the Preparatory Committee, and
AFFIRMS its interest in the four measures specifically recommended
for- study in that draft resolution.
2. Considers that the studies which have been initiated dealing with
the achievement and maintenance of full and productive employment should
be advanced as rapidly as possible and that attention should be given
now to methods of ensuring that high levels of employment and economic
activity shall be maintained even when special factors of temporary
duration now prevailing in many countries have ceased to operate,.and
accordingly
/SUGGESTSTHAT, E/CONF . 2/C.1/17
Page 3
SUGGEST THAT, with a view to making appropriate recommendations,
the Economic and Social Council, in addition to the investigations which
it has already undertaken,
(a) Request the submission at an early date, by members of the
United Nations and by non-wembers represented at present
Conference, of information concerning action which they are now
taking to achieve or maintain full employment and economic stability
and the nature of any prepared plans to prevent a future decline,
and
(b) Request the various Specialized agencies to indicate the nature
and extent of the assistance they are preparing to provide if a
decline in employment and economic activity threatens.
3. Considers that, in many countries, the problems of persistent surplus
shortage of manpower are linked with the attainment of full and productive
employment and that the solution would advance the aims of the
International Trade Organization; and accordingly
SUGGESTS THAT the Economic and Social Council, initiate or enourage-
studies and recommend appropriate action in connecion with international
aspects of population problems as these relate to employment, production
and demand.
4. Considers that, in relation to the maintenance of full employment,
id is advantageous to countries which require or receive and to countries
which supply workers on a seasonal or temporary basis to adopt regulation
which will mntually safeguard their interest and also otect both the
migrants and the domestic workers against unfair competition or treatment,
and accordingly
SUGGESTS THAT the conomic and Social Council, in conjunction with
appropriate agencies such as the International Labour Organization and
its Permanent Migration Committee, consider the problems of temporary
or seasonal migration of workers, for the purpose of formulating
conventions and model bilateral agreements on the basis of which individual
governments may concert their actions to ensure mutually advantageous
arrangements for their countries and fair conditions for the workers
concerned. |
GATT Library | gy960zv1655 | Report of the Sub-Committee on Article 69 paragraph 2 | United Nations Conference on Trade and Employment, January 31, 1948 | Sixth Committee: Organization | 31/01/1948 | official documents | E/CONF.2/C.6/38 and E/CONF.2/C.6/44-75 | https://exhibits.stanford.edu/gatt/catalog/gy960zv1655 | gy960zv1655_90170119.xml | GATT_147 | 273 | 1,823 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/38
ON DU 31 January 1948
TRADE AND EMPLOYMENT COMMERCE L' DE LVEMPLOI ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
REPORT OF THE SUB-COMMITTEE ON ARTICLE 69 PARAGRAPH 2
1. The Sub-Committee met on 30 January and considered the Peruvian amendment
to Article 68 paragraph 2 (document E/CONF.2/C.6/12, page 3).
2. In the course of discussion the representative of Costa Rica suggested
insertion of the following new paragraph 2 and consequential. renumbering of
the present paragraph 2 as paragraph 3:
"2. Any other Member of the United Nations shall become a Member
of the Organization upon its acceptance of this Charter as amended
up to the date of such acceptance and the deposit of the instrument
referred to in paragraph 1 of Article 98."
3. Since no other delegate supported the Peruvian amendment nor the
suggestion by Costa Rica the Sub-Committee agreed to maintain the present
text of paragraph 2 with two small drafting changes: deletion of the words
"paragraph 1 of", owing to the present form of Article 98 and insertion off
comma after "Article 98" and deletion of comma after the word "Charter"
so as to make it clear that the word "acceptance" referred to words "of this
Charter as amended up to the date of such acceptance".
The following is the text of the paragraph 2 as agreed to by the
Sub-Committee:
"2. Any other State whose membership has been approved by the
Conference shall become a Member of the Organization upon its
acceptance, in accordance with [paragraph 1 of] Article 98 of this
Charter [,] as amended up to the date of such acceptance. |
GATT Library | qq913ns0069 | Report of the Sub-Committee on Article 75 | United Nations Conference on Trade and Employment, January 29, 1948 | Sixth Committee: Organization | 29/01/1948 | official documents | E/CONF.2/C.6/53 and E/CONF.2/C.6/44-75 | https://exhibits.stanford.edu/gatt/catalog/qq913ns0069 | qq913ns0069_90170113.xml | GATT_147 | 1,204 | 7,638 | United Nations Nations Unies UNRESTRICTED
E/CONF.2/C.6/53
CONFERENCE ON CONFERENCE DU 29 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
REPORT OF THE SUB-COMMITTEE ON ARTICLE 75
1. The Sub-Committee was composed of the representatives of Argentina,
Australia, Belgium, Brazil, Canada, El Salvador, China, Cuba, France,
Italy, India, Norway, Pakistan, Peru, Syria, Turkey, United Kingdom and
United States, and held fifteen meetings under the chairmanship of;
Mr. Jabbara (Syria).
2. -In addition to Alternatives A, B and C contained in the Report.of the
Preparatory Committee the Sub-Committee took into consideration further
proposals submitted by the delegations of Australia, China, Cuba, France,
Mexico and the United States. As a result of a long study of all the
problems involved, and after considering all the different viewpoints
expressed, the Sub-Committee recommends to the Sixth Committee the following
text of Article 75 including an annex stating certain rules to apply at the
first election:
Article 75
Composition of the Executive Board,
.1. The Executive Board shall consist of the representatives of
eighteen Members of the Organization selected by the Conference; Provided
that a customs union, as defined in paragraph 4 of Article 42, may be
so elected if all of its members are Members of the Organization and
If its members desire to be represented as a unit.
2. The Executive Board shall be representative of the major
geographical areas included within the membership of the Organization.
In selecting the members of the Executive Board, the Conference shall
have regard to the objective of ensuring that the Board includes Members
,or customs unions of chief economic importance having particular regard
,to international trade, and is representative of the diverse types of
economies or different-degrees of economic development existing within
the membership of the Organization.
3. (a) At intervals of three years the Conference shall determine, by
a two-thirds majority of the Members present and voting, the eight
/Members or customs E/CONF.2/C/6/53
Page 2
Members or customs unions of chief economic importance having
particular regard to international trade, ..Such Members -or customs
unions shall be declared members of the Executive Board,
(b) The other members of the Executive Board shall be elected by
the Conference by a two-thirds majority of the Members present and
voting.
(c) If on two consecutive ballots no member is elected, the
remainder of the election shall be by a majority of the Members
present and voting.
4. The term of a member of the Executive Board shall be three years,
except that at the first election, the provisions of Annex X shall
apply. Any vacancy in the Board shall be filled by the Conference for
the unexpired term of the vacancy.
5. The Conference shell establish rules for giving effect to the
provisions of this Article.
Annex X
To facilitate the work of the fire Conference',the following rules
for the implementation of Article, 75 shall apply at the first election:
1. Six seats shall be filled, under Article 75, sub-paragraph 3 (a)
and 3 (b), by representatives of Member countries in the Western
Hemisphere.* If five or more of these countries, eligible under
sub-paragraph 3 (b), have not become. Members of the Organization at
the time of the election, only three of these seats shall be filled
by application of the said sub-paragraph. If ten or more of the
countries' in the Western Hemisphere, eligible under sub-paragraph 3 (b),
have not become' Members of the Organization at the time of the election
only two seats shall be filled under the same sub-paragraph; The seat
or seats thus unoccupied shall not be filled unless the 'Conference
otherwise decides by a two-thirds majority vote,
2. In order to insure the election of countries 'under the criterion
of sub-paragraph 3 (a) of Article 75 'the following countries shall be
deemed to fulfill the conditions' get out in said sub-paragraph 3 (a),
namely;
(i) The two countries in the Western Hemisphere * and the three
countries or customs unions in Europe participating in the
Havana Conference with the largest 'external trade; and
(ii) The three countries with the largest population in the world,
havin in view their potential importance in international
trade.
* That is, North, Central and South America.
/Should any E/CONF.2/C.6/53
Page 3
Should any of these countries not be a Member of the Organization
at the time of the election, the Conference will review the situation;
but. the seat or seats thus unoccupied shall not be filled unless the
Conference otherwise decides by two-thirds majority vote.
3. The election of Members of the Executive Board under. the criterion
of Article 75. sub-paragraph 3 (b), shall be conducted so as to insure
the adequate implementation of the requirements of Article 75, having
regard, among other considerations, to the fact that geographical groups
may be representative of affinities between a number of countries,
giving their group a character of distinctiveness and unity.
4. The eight Members elected under sub-paragraph 3 (a) of Article 75
shall serve for a term of three years. Of the ten Members elected under
sub-paragraph 3 (b), five Members, as determined by lot, shall serve
for a term of two years, and the remaining five Members for a term of
four years.
3. Paragraph 3 of the Annex is intended to cover also the case of certain
geographical groups, such as the Arab states, other Middle and Near East
states, and states in the North of Europe. It is anticipated that any one
such group may deem it convenient to present a common candidate to represent
the particular interests of all the countries of the group.
The following minority viewpoints are recorded:
(a) The delegate of Argentina, who was in favour of Alternative B of
Article 75 as drafted in the Report of the Preparatory Committee, has
not yet received definite instructions from his Government.
(b) The delegate of Australia reserved his position on the grounds
that It would be preferable to adopt
(1) Alternative B as embodied in Article 75 of the Report of
the Preparatory Committee; or
(ii) a formula which would enable all the agreed criteria to be
applied to the composition of the Board as a whole.
(c) The delegate of Brazil reserved his position pending consideration
of the final drafts of other articles of the Charter.
(d) The delegate of Italy reserved his position regarding the Annex.
(e) The delegate of Pakistan reserved his position pending the
receipt of instructions from his Government.
(f) The delegate of Peru considered that paragraph 3 (a) of Article 75
was greatly different from Alternative BE which alternative had received
the support of a large majority of delegations in the general debate
/in the E/CONF.2/C.6/53
Page 4
in the Sixth Committee. :Nevettheless, should countries other than
those referred to in paragraph 3 (a) have a similar guarantee of
being represented on the Board, he would be prepared to accept that
paragraph. On these grounds he supported paragraphs 1 and 3 of the
Annex. He was unable, however, to accept any part nomination such
as the one contained in paragraph 2 of the Annex. Consequently the
delegate of Peru reserved his position both on paragraph 3 (a) of
Article 75 and on paragraph 2 of the Annex. |
GATT Library | js447cs9392 | Report of the Sub-Committee on paragraph 2 of Article 83 text of paragraph 2 as agreed by the Sub-Committee | United Nations Conference on Trade and Employment, February 14, 1948 | Sixth Committee: Organization | 14/02/1948 | official documents | E/CONF.2/C.6/74 and E/CONF.2/C.6/44-75 | https://exhibits.stanford.edu/gatt/catalog/js447cs9392 | js447cs9392_90170138.xml | GATT_147 | 112 | 785 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE UNRESTRICTED
DU E/CONF.2/C.6/74
COMMERCE ET DE L'EMPLOI 14 February 1948
ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
REPORT OF THE SUB-COMMITTEE ON PARAGRAPH 2 OF ARTICLE 83
TEXT OF PARAGRAPH 2 AS AGREED BY THE SUB-COMMlTTEE
2. The selection of the Staff, including the appointment of the Deputy
Directors-General, shall as far as possible be made with due regard to the
various types of economy and on a wide geographical basis. The paramount
consideration of the selection of candidates and in determining the
conditions of service of the Staff shall be the necessity of securing the
highest standards of efficiency, competence, impartiality and integrity. |
GATT Library | ch904dy7495 | Report of the Sub-Committee on the protocol incorporating rectifications to the General Agreement on Tariffs and Trade | March 19, 1948 | 19/03/1948 | official documents | GATT/1/37 and GATT/1/29-46+38/Rev.1,40/Rev.1 | https://exhibits.stanford.edu/gatt/catalog/ch904dy7495 | ch904dy7495_90310312.xml | GATT_147 | 7,459 | 47,432 | RESTRICTED
GATT/1/37
19 March 1948
ORIGINAL: ENGLISH and
FRENCH
REPORT OF THE SUB-COMMITTEE ON THE
PROTOCOL INCORPORATING RECTIFICATIONS TO THE
GENERAL AGREEMENT ON TARIFFS AND TRADE
1. The Sub-Committee was set up at the fifth meeting of the First
Session of the Contracting Parties to the General Agreement on Tariffs
and Trade. It consisted of representatives of Australia, Brazil, China,
Luxembeurg, Syria and the United States of America.
2. Mr. V. L. PHELPS (United States) was elected Chairman.
3. The Sub-Committee held six meetings and examined proposed
rectifications submitted in regard to the General Agreement on Tariffs
and Trade and to the Schedules attached thereto relating to the
following countries:
Australia
Belgium, Netherlands, Luxembourg
Brazil
Canada
Ceylon
Chile
Cuba
Czechoslovakia
France
India
Pakistan
Union of South Africa
United Kingdom
United States of America
4. The Sub-Committee submits the attached draft Protocol,
incorporating rectifications to the General Agreement on Tariffs and
Trade, for the consideration of the Contracting Parties. The
rectifications submitted were found to include changes of substance
as well as typographical corrections. Rectifications which the
Sub-Committee considers to be not solely of a typographical nature
are numbered. These were referred to the countries concerned with
a request that the latter should secure the approval of the countries
with which the concessions in question had been negotiated. The GATT/1/37
Page 2
results of this enquiry are set out below:
Schedule Bracketed number
against rectification
Australia (1)
Rectification
approved by
) Canada
) United States
Benelux (1) ) Approval not
(2) ) yet confirmed
Canada (1) )
(2) )
(3) ) Approval
(4) ) not yet
(5) ) confirmed
(6) )
Cuba (1)
(2) ) Approval
(3) ) not yet
(4) ) confirmed
(5) )
Union of South Africa (1) ) Benelux
\(2) )
United Kingdom (1) ) United States of
(2) ) America
(3) )France
(4) ) China
(6) France
United States of America (1) Approval not yet confirmed
(2) China, United Kingdom
(3) United Kingdom
(4) _
(5) Canada
*(6) United Kingdom
(7) United Kingdom
(8) )
(9) ) Approval not
(10) ) yet confirmed
(ii) )
x On reconsideration, the Sub-Committee agreed
this rectification to be merely typ graphical
5. At the request of the Cuban delegation, the Sub-Committee agreed
to the insertion of the rate of duty applicable to each of the
following items in Part I of Schedule IX, although it was of the
opinion that, since these items were not negotiated, such insertion
was not essential: Items 56-A 56-B, 113-A, 128-A, 129-F,-G,-H,-I
and _J, and 314-B and -C.
rmed GATT/1/37
Page 3
6. The Sub-Committee considered the following proposed corrections
to be unnecessary, and obtained the approval of the countries concerned
to their non-inclusion:
Schedule Proposed Correction Document No.
II - Benelux Page 85, Item ex 803) GATT/1/3
Page 86, Item ex 834)
7. In the attached list of rectifications to schedules,.it will
be noted:
(a) that rectifications to the English text are shown in
the left-hand column and rectifications to the French text
in the right-hand column;
(b) that rectifications are shown in both languages only
where they are applicable to both the English and French
texts; and
(c) that authenticity of language is indicated at the
head of each Schedale..
8. In regard to the presentation of the rectifications, one member
of the Sub-Committee thought that in each case the full description
of the rectified item should be shown. In order to save time the
Sub-Committee has nct adopted this method. GATT/1/37,
Page 4
DRAFT PROTOCOL OF RECTIFICATIONS
TO THE GENERAL AGREEMENT ON
TARIFFS AND TRADE
THE GOVERNMENTS of the Common-
wealth of Australia, the Kingdom of
Belgium, Canada, the Republic of Cuba,
the French Republic, the Grand-Duchy of
Luxembourg, the Kingdom of the Nether-
lands, the United Kingdom of Great
Britain and Northern Ireland and the
United States of America, acting in
their capacity of contracting parties
to the General Agreement on Tariffs
and Trade, and
THE GOVERNMENTS of the United
States of Brazil, Burma, Ceylon, the
Republic of Chile, the Republic of
China, the Czechoslovak Republic,
India, Lebanon, New Zealand, the
Kingdom of Norway, Pakistan, Scuthern
Rhodesia, Syria and the Union of
South Africa, acting in their capacity
of signatories of the Final Act adopt-
ed at the conclusion of the Second
Session of the Preparatory Committee
of the United Nations Conference on
Trade and Employment which authentic-
ated the text of the Genral Agreement
on Tariffs and Trade
PROJET DE PROTOCOLE DE
RECTIFICATION DE L'ACCORD
GENERAL SUR LES TARIFS
DOUANIERS ET LE COMMERCE
LES GOUVERNMENTS du Commonwealth
d'Australie, du Royaume de Belgique, du
Canada, de la Republique de Cuba, des
Etats-Unis, d'Amerique, de la Republique
francaise, du Grand-Duche de Luxembourg,
du Royaume des Pays-Bas et du Royaume-Uni
de Grande Bretagne et d'Irlande du Nord,
agissant en leur quality de parties
contractantes a l'Accord general sur les
tarifs deuaniers et le commerce, et
LES GOUVERNMENTS de la Birmanie,
des Etats-Unis du Bresil, de Ceylan, de
la Republique du Chili, de la Republique
de Chine, de l'Inde, du Liban, du
Royaume de Norvetge, de la Nouvelle-
Zelande, du Pakistan, de la Rhodesia du
Sud, de la Syrie, de la Republique
tcheceslevaque et de l'Union Sud-
Africaine, agaissant en leur qualite
de signataires de l'Acte final adepte
a lissue de la deuxieme session de la
Commission preparations do la Confrence
des Nations Unies sur le commerce et
l'eImplci, 1oquol a rcndu authctntiquc le
texte dc l2.ccord g.n~rnal sur les
tzrifs dcuanicnr et le comjlbrco, GATT/1/37
Page 5
HAVING noted that certain
rectifications should be made in the
authentic texts of the General
Agreement on Tariffs and Trade and of
the Schedulos and Annexes forming
part of the said Agreement,
HEREBY AGREE, though the under-
signed representatives duly authorized
to that effect, as follows:
1. The following rectification shall
be made in the Ganeral Agreement on
Tariffs and Trade:
In the French text of Article XX,
last paragraph, the date shall
road in full: "lo ller janvior
1951 au plus tard"
2. The following rectifications
shall be made in the Schedules and
Annexes forming part of the General
Agreement on Tariffs and Trade:
AYANT constate que certaines
rectifications deivent etre apportees
aux textes authentiques do l'Accord
general sur les tarifs douaniers et le
commerce et des lists et des Annexes
faisant partic dudit lAccord,
PAR IES PRESENTS, et par l'entre-
mise de leurs representants dument
autorises a cet effet, conviennent:
1. la rectification suivante sera
appertee au text de l'Accord general
sur les tarifs douaniers et le commerce:
Dans lc texte frangais dc 1A.rticle
=X, au dcrnier paragraphe, le texte
relatif d la date doit 'tre r6dig6e
commc. suit: "lc lcr jarvicr 1951
au plus tard n
2. Los rectifications suivantes
sarent appertees aux Listes et Annexes
qui font partie de l'Accord general
sur les tarifs douaniers et le commerce: GATT/1/37
Page 6
SCHEDULE I - COMMONWEALTH OF
AUSTRALIA
Rectifications in this Schedule are
uthentic only in the English language
Part I - Most-favoured-nation
tariff .
Item 231(E)
LIST I _- COMMONWEALTH
D'AUSTRALIE
Seul fait foi le text anglais des
rectifications portent aur la
present listed
Premiere Partie - Tarif de la
nation la plus favoriseeo
Position 231(E)
The description shall read:
"Carbon Black produced from
natural gas" (1)
La designation doit se lire come
suit:
"Noir de charbon obtenu
a partir du gaz naturel" (1) GATT/1/37
Page 7
SCHEDULE II - BELGIUM
LUXEMBOURG, NETHERLANDS
LISTE II - BELGIQUE, - LUXEMBOURG,
PAYS-BAS
SECTION A - METROPOLITAN
TERRITORIES
Rectifications in Section A are
authentic only in the French
language
Part I - Most-Favourcd-Nation
Tariff
SECTION A - TERRITOIRES
METROPOLITAINS
Seul fait foi le texte francais des
rectfiications portant sur la Section
A,
Premiere Partie - Tarif de la nation
la plus favorisec.
Pocition 100
La position actuellement marquee
"100" doit se lire:
"ex 100"
Item 319
The description in the sub-section
headed "ex b" shall read:
b.
without alcohol.,..... "
SECTION C - NETHERLANDS INDIES
Rectifications in Scction C are
authentic only in the English
language
Part I - Most-Favoured-Nation
Tariff
Item 477
The description shall rcad as
follows:
Position 800
La subdivision de cette position
marquec "ex c" doit se lire:
"ex c. Tungestene.. exemption
SECTION C - INDES NEERLANDAISES
Soul fait foi le tcxtc anglais dos
rectifications portent our la Section
C.
Premiere Partie - Tarif de la nation
la plus favorises..
Position 477
Placcr deux pointe apres "n.s.d."
"Porcelain, even combined with other
wares, n.s.m.:
I - white, not combined with wares
subject to a duty of 20% ad
valorem, nor ornamented, e.g.
not having decorations in relief
or ornaments of the same kind
(cxccpt racks and pege for racks
(for clothes etc.) and articles
such ac soap dishes, intended to
bc fixed by plastoring into or
against walls of bathrooms,
lavatoriecs tc.)
II - other" Schedule II (Contd) - Belgium-Nether-
lands-Luxembourg.
Item 640
(i) The last line of sub-section Ia.
of the description shall read:
"of 20 p.c. ad valorem... ," (1)
(ii) The last line of sub-section.IIa.
of the description shall read:
"20 p.c. ad valorem....."
(2)
- GATT/1/37
Page 8
Liste II (suite) - Belgique-Luxembourg-
Pays-Bas.
Position 640
(i) La derniere ligne de la subdivision
Ia de la designation des produits doit se
lire:
"droit de 20 p.c. ad valorem.."(1)
(ii) La derniere ligne de la subdivision
Ila de la designation des produits doit
se lire:
"un droit de 20 p.c. ad valorem."(2
Item 714
The last line of the preamble in
sub-section III shall read:
partss thereof:"
Item 757
The last nine words of the
description shall read:
"also raper cutting machines
weighing 5 kilograms or less"
Item ex 831
The first seven words of the
description shall read:
"Railway locomotives and parts
thereof, to be"
SECTION E - SURINAM
Rectifications in Section E: are
authentic only in the English
language
Part I - Most-favoured-nation tariff
SECTION E - SURINAM
Soul fait foi le text anglais des
rectifications portaant sur la Section E
Premiere Partie - Tarif de la nation
- plus favorisee.
There shall be inserted immediately
below the words "END OF SECTION E" the
words:
"END OF PART I"
Deuxieme Partie - Tarif Preferentiel
Ajouter apres la premiere partie de
la Section E:
"LISTE II - BELGIQUE, LUXEMBOURGE,
PAYS-BAS
Deuxieme Partie
Tarif Preferentiel
Neant " GATT/1/37
Page 9
SCHEDULE III - UNITED STATES
OF BRAZIL
Rectifications in this Schedule are
authentic only in the English and
French languages
Part I - Most-favoured-nation Tariff
LISTE III ETATS-UNIS DU
BRESIL
Seuls font foi les textes anglais
et francais des rectifications
portant sur la presente liste.
Premiere Partie - Tarif de la
nation la plus favorisee
Position 230/5
(i) The principal description
immediately preceding sub-item /5
shall read:
"Peaches, pears, apricots, apples,
cherries, plums, prunes, berries
except strawberries, and mixed
fruits for salad made up chiefly
of the foregoing:"
La designation principale qui
precede immediatement la subdivision /5
doit se lire:
"Peches, poires, abricets, pommes,
cerises, prunes, pruneaux, baies a
l'exception des fraises, ainsi que
fruits melanges pour salades
constitutes principalement par les
fruits ci-dessus."
(ii) The rate of duty for this item
shall be:
"4.20" GATT/1/37 Page 10
SCHEDULE V - CAANDA
LISTE V - CANADA
Rectifications to this Schedule
are authentic only in the English
and French languages
Part I - Most-favoured-nation Tariff
Seuls font foi les textes anglais
et francais des rectifications
portent sur la presente liste.
Premiere Partie Tarif de la
nation la plus favorisee.
Item ex 156
The Rate of Duty applicable to
sub-section (V) "Liqueurs.......,"
shall read:
4.50"
(1)
Item ex 162
Pcsition ex 162
The first eleven words of the
description shall read:
"Vermouth, aperitif and cordial
wines, containing thirty-two per
cent or less" (2)
Item ex 172 (second)
Les treize premiers mcts de la
designation des produits doivent se lire,
"vermouth, vins aperitifs et
cordiaux, ne titrant pas plus
de 32 p. 100" (2)
Position ex 172 (deuxeme)
The description shall read:
"Prayer books, missals, psalters,
religious pictures and mottoes,
not to include frames" (3)
La designation des produits doit
se lire comme suit:
"Livres de prieres, missels et
psautiers, images et devises
religieuses, ncn comprise les
cardes" (3)
Item 187 b
The description shall read:
"Sensitized negative film, one
and one-eighth inches in width
or over, for exposure in motion
picture cameras" (4)
Item 438 e.
In sub-paragraph (3) the descrip-
tion shall read:
"Parts, n.o.p., electro-
plated or not, whether
finished cr not" (5)
Item 549
The description of sub-section (ii)
shall read:
"Wool, not further advanced than
scoured, not including wool of the
sheep of the type commonly known as
karakul, when imported by carpet
manufacturers for use exclusively
in the manufacture of carpets, in
their own factories." (6)
Position 438 e
La designation des produits a
l'alinea (3) doit se lire comme suit:
"Pieces, n.d., plaquees ou non,
achevees au non"
Position 549
La designation des produits a la
sous-section (ii) doit se lire comme sui.
"Laine dont la preparation ne
depasse pas le dessuintage, a
l'exclusion de la line de mouton
du genre communiement appele caracul,
imported par lea fabricants de tapis
et devant servir exclusivement a la
fabrication de tapis dans leurs
propres fabriques" (6) GATT/1/37
Page 11
SCHEDULE VI - CEYLON
LISTE VI - CEYLAN
Rectifications to this Schedule
are authentic only in the English
language
The introduction on page 1, reading
as follows, shall be deleted:
"GENERAL AGREEMENT ON TARIFFS
AND TRADE
SCHEDULE VI - CEYLON
The offers contained in this
schedule represent the concessions
which Ceylon is prepared to grant as
part of a mutually advantageous agree-
ment. The Government of Ceylon reserves
the right to modify or withdraw any or
all the concessions offered, in the
light of the results of future
negotiations, or of any circumstances
affecting its attitude to the General
Agreement on Tariffs and Trade."
Seul fait foi le texte anglais
des rectifications portant sur
la presente liste.
L'introduction dont le texte suit
qui figure en regard de la page 1 est
supprimee:
"ACCORD GENERAL SUR LES TARIFS
DAUANIERS ET LE CONFERECE.
LISTE VI - CEYLAN
Les offres faisant l'objet de la
presente liste representent les
concessions que Ceylan est pret a
accorder comme contre-partie d'un
accord mutuellement avantageux.
Gouvernment de Ceylan se reserve
le droit do modifier ou retirer, en
totclit6 cu on parties, les
concessions offertos, a la lumicre
des resultats de negotiations
futures ou detoutes autres
circonstances qui pourraient
affecter son attitude a l'egard de
l'Accord general sur les Tarifs
douaniers et le Commerce." GATT/1/37
Page 12
SCHEDULE VII - REPUBLIC OF CHILE
Rectifications in this Scheduls are
authentic only, in the French language
Part I Most-favoured-nation Tariff
[tem 300
LISTE VII - REPUBLIQUE DU CHILI
Soul fait foi le texte francais
des rectifications portant sur
la presente liste
I
Premiere Partie - Tarif de la
nation la plus faverisee
Position 43 I
to designation des products doit se
lire come suit:
"Petrole brut pour fours ou
chaudieres . ....... T.B."
Position 57
Inserer, dans la designation des.
products, le mot "ou" avant le mot -
"Pesant".
The last line of the description
shall read:
"8 threads or less ......K.G."
Item Ex 1072
The description shall read:
"Mineral oil for machines, even
with an admixture of other cils
or substances, in containers with
a net content of over one Kg."
Item 1193
i) The number of the item following the
Fourth item Ex-1189 shall read:
"1193"
ii) The first three words of the
lescription shall read.
"Iron or steel"
.tem 1194
The first three words of the
description shall read:
"Iron or steel"
Item 1194A
The first three words of the
description shall read:
"Iron or steel" GATT/1/37
Page 13
Schedule VII (Contd.) - Republic of Liste VII (suite et fin) R6publique
. Chile du Chili
Item 1194 B
The first three words of the
description shall read:
"Iron or steel" .
Item 1194 C
The first three words of the
description shall read:
"Iron or-steel"
Item 1349
The words between the fourth
and fifth semi-colons in the
description shall read:
"hydraulic presses, with or
without wine-presses and
bronze trays"
Item 1408
The Rate of Duty shall road:
"0.18" GATT/1/37
Page 14
SCHEDULE IX - REPUBLIC OF CUBA
LISTE IX - REPUBLIQUE DE CUBA
Rectifications in this Schedule
are authentic only in the English
language
Part I Most-favoured-nation Tariff
Item 56-A
The Rate of Duty shall
read:
Soul fait foi le texte anglais
des rectifications portent sur
la presente liste
Premiere Partie - Tarif de la
nation la. plus favorisee
Position 56-A
.
Le droit doit se lire comme
suit:
"5.75 per 100 Kgs"
Item 56-B
The Rate of Duty shall
read:
"100 Kil.
/5,75"
Position 56-B
a Le droit doit se lire comme
suit:
"11.50 per 100 Kgs"
Item 113-A
The following item shall be
inserted after Item 113:
"113-A In skeins, spindles or
in other forms for mechanical
manufacture of fabrics of all'
kinds, cord or braid, T.15% ...
............3.15 per 100 Kgs*
Item 115-H
The Rate of Duty shall
read:
"1.06. per Kg."
(1)
Items 127 and 127-A
Position 113-A
Apres la position 113 insurer la
position suivants:
"113-A En echeveaux, canottes,
ou sous d'autres forces pour le.
fabrication mecanique de toutes
sortes de tissus, cordons ou
tresses, T.15% ......100 Kgs. 3,15'
Position 115-H
Le droit doit se lire comma
suit:
"1,06"
(1)
Positions 127 et 127-A
These items shall be deleted.(2)
Supprimer ces
positions.
Position 128-A,
The Rate of Duty shall
read:
"0.094 per Kg."
Item 129-F
Le droit doit se lire comme-..
suit:
"Kil.
/0,094"
Position 129-F
The Rate of Duty shall
road:
"0.46 per Kg."
item 129-G
Le droit doit se lire comme
suit:
"Kil.
The Rate of Duty shall
read:
" 13.5% ad valorem"
/0,46"
Position 129-G
Le droit doit se lire comme
suit:
"ad val. /3,50%"
"100 Kil.
/5,75"
Item 128-A
(2)
.
"ad val. GATT/1/37
Page I5
Schedule IX (contd.) - Republic of Cuba Liste ix (suite) - R6publique de Cuba
Item 129-H
The Rate of Duty shall read:
"0.32 per Kg."
Item 129-I
Position 129-H
Le droit doit se lire come suit:
"Kil.
/O,32"
Position 129-I
The Rate of Duty shall read:
"0.29 per Kg."
Le droit doit se lire come suit:
"Kil.
/0,29"
Item 122-J
(i) The Rate of Duty shall read:
"0.37 per Kg."
(ii) The description shall read:
Item 129-J
(i) Le droit doit se lire comme suit:
"Kil.
/0,37"
(ii) La designation des produits doit
se lire come suit:
"Fabrics of braided cordage for
pneumatic tires, wholly or
principally made of synthetic
fibers, not containing silk or
wool, covered by a rubber or
synthetic rubber composition,
-when imported by the manufacturers
themselves for the manufacture of
tires. N.W."
Items.142, 142-A, -B, -C, -D. -E and -F
These items shall be deleted. (3)
Item 152-F
The first eight words of the
description shall read:
"Manufactured on a base of
bisulphite or soda'
Item 314-B
The Rate of Duty shall read:
"0.47 per Kg."
Item 314-C
"Tissue on corde tressee -pour
pneumatiques, fabriques entierement
ou principalement en fibres .
synthetiques, ne contenant ni soie
ni laine, recouverts d'une
composition de caoutchouc ou de
caoutchouc synthetique, imports
par les industrials eux-memes pour
la fabrication de pneumatiques
T.15%"
Positions 142, 142-A, -B. -C, -D. -E
et.-F
Supprimer ces positions. (3)
Position 152-F
Dane la designation des produits,
les onze premiers mots doivent se lire
comme suit:
'"Fabrique a base de pate au
bisulfite ou a la soude"
Position 314-B
Ie droit doit se lire come suit:
"Kil.
/0,47"
Position 314-C
The Rate of Duty shall read:
Le droit doit se lire comme suit:
"0.455 per Kg."
/ O,455 "
"Kil. GATT/1/37
Page 16
Schedule IX (contd.) - Republic of Cuba Liste IX (suite et fin) - Republique de
Cuba
Part II - Preferential Tariff
Deuxieme Partie - Tarif Preferentiel
Item 98-H
The Rate of Duty shall read:
"0.018 per Kg."
Items 127 and 127-A
Positions 12 127-A
These items shall be deleted. (4)
Supprimer ces positions.
(4)
Positions 142, 142-A. -C, -D, -E
et -F
These items shall be deleted. (5)
Items 142, 142-A, -B, -C. -D. -E and -F
Supprimer ces positions. (5) GATT/1/37
Page 17
SCHEDULE X - CZECHOSLOVAKIA
Rectifications in this Schcdule
are authentic only in the English
and French languages
Part I - Most-favoured-nation
tariff
Item cx 17
The first sub-description shall
read:
"coconuts and similar exotic
edible nuts including ground-
nuts and pecans"
LISTE X - TCHECOSLOVAQUIE
Seuls font foi les textes anglais
ct francais des rectifications
portent sur la presente listed
Prermiere Partie - Tarif de la
nation la plus favorisee
Position ex 17
La premiere subdivision dcit so
lirc comme suit:
"noix de coco et autres noix exetiqu
similaires comestibles, y compris
arachides et noix de pecan"
Position ex 109, ex (b). ex 1
Los cinq derniers mots de la
designation des produits docient se lire
"competente du pays d'origine (9)"
Position cx 109, cx (b), ex 2
La ligne, onze de la designation dos
produits doit se lira:
"competante du pays d'orogone (9)"
Position cx 312
Les onze dermicrs mots dc la
designation des produits doivent se lire
bandss de cacutcheuc d'une largeur
de 2 mm. au plus"
Position 542
Lo numerc de la position suivante:
"ex Remarque au No. 540" doit se lire "
Position cx 637
La position portent actuelloment lc
numero "ex 637, ex (b)" doit se lire:
"sx 637
bP
Position cx 6,52
La positic;n portant actuclloleont 1l
nuw6ro "cx 652,b)" doit sC lire:
"ex 652
ex b) " GATT/1/37
Page 18
SCHEDULE XI - FRANCE
LISTE XI - FRANCE
Rectifications in this Schedule
are authentic only in the French
language
Seul fait foi le text francais
des rectifications portant sur
la presente listo
SECTION 1. MADAGASCAR AND
DEPENDENCIES
Part I - Most-favoured-nation
Tariff
Item ex 68
The Rate of Duty shall read:
"10%"
SECTION K. NEV CALEDONIA AND
DEFENENCIES
Part I - Most-favoured-nation
Tariff
Item 210
The Rate of Duty shall read:
"5%" GATT/1/37
Page 19
SCHEDULE XII - INDIA
LISTE XII - INDE
Rectifications in this Schedule
are authentic only in the English
language
Part I - Most-favoured-nation
Tariff
Soul fait foi le texte anglais
des rectifications portant sur
la presents liste
Premiere Partic - Tarif de la nation
la plus favorisee
Item ex 25
The word "strength" in
proviso (b) shall be spelled with
a small "s". GATT/1/37
Page 20
SCHEDULE XV - PAKISTAN
LISTE XI - PAKISTAN
Rectifications in this Schedule
are authentic only in the English
language
Part I - Most -favoured-nation
Tariff
Seul fait foi le text anglais dos
rectifications portent sur la present
listed
Premiere Partie - Tarif de la nation
la plus favorisee
Item ex 25
The word "strength" in
proviso (b); shall be spelled with
a small "s". GATT/1/37
Page 21
SCHEDULE XVIII - UNION OF
SOUTH AFRICA
Rectifications in this Schedule
are authentic only in the English
language
Part I Most-favoured-nation
Tariff
Item 108(o)
The last five words of the
description shall read:
"and barrels therefor, single
.... .per barrel"
Item 108(f)
LISTE XVIII UNION SUD-AFRICAINE
Seul fait foi le texte anglais des
rectifications portant sur la present
listed
Premiere Partie - Tarif de la nation
la plus favorisee
Position 108-(e)
Los neuf dernicrs mots de la
designation des preduits doivent se lire:
"y compris leurs canons, a
un coup........par canon"
(1)
(1)
Position 108(f)
The last seven words of the
description shall read:
"including barrels therefor,
dcuble and others .... per berrel"(2)
Les onze derniers mots de la
designation des produits doivent se lire:
"y compris leurs canons, a deux
coups et autres ....... par canon" (2) GATT/1/37
Page 22
SCHEDULE XIX - UNITED KINGDOM
Rectifications in this Schedule are
authentic only in the English
language
SECTION A - METROPOLITAN TERRITORY
Part I - Most-favoured-nation
tariff
LISTE XIX - ROYAUME-UNI
Soul fait fei le texte anglais de
rectifications pertant sur la pre
cnte liste.
SECTION A - TERRITOIRE METROPOLITAI
Premiere Partie - Tarif de la
nation la plus favorisee
Item:. Ex 3 X (1)
The second sub-description on
page 25 shall read:
"Conversion front and attacmments
for excavators or cranes"
Position 3 XI (8)
(i) The first paragraph of the descrip-
tion shall read as follows:
"Wood and timber of coniferous
species (other than box-boards,
railway sleepers and sleeper blocks),
in the round or hewn or square sawn,
but not further prepared or
manufactured:-" (1)
(ii) The corresponding text of the first
provise shall read as follows:
"Wood and timber of conifercus
species (other than box-boards,
railway sleepers and sleeper blocks),
in the round or hewn cr square sawn,
but not further prepared or
manufactured:-" (2)
(i) Le premier paragraphe do la desig
ion des produits doit so lira comme su
"Beis de confiferes (autres qua le
planches a caisses, traverses de
chemins de fer et blees pour
traverses), on grume, degressis o
equarris mais non ulterieurement
prepares ou ouveres:-" (1)
(ii) Le premier sous-paragraphe de la
note qui figure a la sisignatn des
produits deit se lire comme suit:
"Beis de conferes (autres que le
planches a caisses, traverses de
chemins de fer et blees pour
traverses) on grume, degressis ou
equarris, mais non ulterieurement
prepare cu ouveres:" (2)
Item 6, Footnote
The footnote on page 39 shall
read:
"/ Paragraph I at the hcad cif
this Schedule shall n-t apply
tc this item. '
Item 3 XI (8) GATT/1/37
Page 23
Schedule XIX (contd.) - United Kingdom
item 6
(i) The last eighteen words in the
Rate of Duty applicable to sub-
paragraph (a) on page 41 shall read:
"on the area of the tissue or
22-1/2% of the yalue of the tissue
whichever is the greater" (3)
(ii) The last eighteen words in the Rate
of Duty applicable to sub-paragraph (b)
on page 41 shall read:
"on the area of the tissue or
22-1/2% of the value of the
tissue whichever is the greater"(4)
(iii) The last eight words in the Rate
cf Duty shown against "Other Tissues"
cn page 41 shall read:
plus 22-1/2% cf the value cf
the tissue." (5)
Item 3 G.A.V.
(i) The description "Cotton oil" on
page 53 shall road:
"Cotton oil (cotoon seed oil)"
(ii) The Rate of Duty applicable to the
sub-description "Clove" on page 53
shall read:
"10%" (6)
Liste XIX (suite et fin) - Royaume-Uni
Position 6
(i) Dans la colonne "Droit" les deuze
derniers -mots correspondant a l'alinea (4
de la page 45 deivent so lire comme suit:
"de la surface du tissu, ou
22-1/2% de la valeur du tissu"
(3)
(ii) Dans la colonne "Droit" les douzo
derniers mots correspondant a l'alinea
de la page 45 deivent se lire come suit
"de la surface du tissu, ou
22-1/2% de la valour du tissue"
(4)
(iii) Dans la colonne "Droit", les sopt
dernie'rs mcts ccrrespcndant a "fWutres
tissus" a la page 46 doivent se lirs:
"plus 22-1/2% dc la valoiur
du tissue" (5)
P-siticn D. G, V.
Le drzit c:*rrcsp-ondant a la
desit-nati n "de ~clcus dc gir. fles" dcit
se lirE:
"10" ( 6) GATT/1/37
Page 24
SCHEDULE XX - UNITED STATES OF
Rectifications to this Schedule
are authentic only in the English
language
Part I - Most-favoured-nation
tariff
Item 50 [second]
The number of the item following
the first item 50 shall read "50".
Item 54 [first]
LISTE XX - ETATS-UNIS D'AMERIQUE
Seul fait fei le tcxte anglais
des rectifications portant sur
la pr sent liste.
Prmicre Parrtio - Tarif de la
nation la plus favorisee
Position 54 [premiere]
The note following the first item
54 shall be:
"NOTE: in any case in which an
internal-revenue tax is provided for
in Section 2470, Internal Revenue Code,
as amended, in respect of any product
described in this schedule or in
respect of any article derived from any
product described in this Schedule, the
United States reserves the right to
modify the rate of duty applicable to
such product to compensate for any
reduction or termination of such
internal tax, but in no case shall the
duty and any internal tax in the
aggregate, in respect of any such
product, exceed an amount equal to any
duty provided for such product in this
Schedule plus the internal tax provided
for in said Section 2470 on October 30,
1947. In making the computations
referred to in this Ncte an internal
tax in respect of any product shall
be understand to include the
ccr.pcnsatory equivalent of any internal
tax cn a derivative of the product'. (1)
La ncte qui sut la premiere position
54 dc.it s'anjnccr coo.e suite
"N0T5. Dens ttus ls c9 s cu unc tak'
intaricure d" na.turc fisc-lc est pr-5vue a
l'Varticle 2470 do l'Intarncl Revenue, Code,
tel qu'il a 6tA- rodifi., :pour tcut
procuiL cwno6ne dans la pr6sente liste,
.;u pcur tout article fabrique ' l!aido de
t<.ut pr-.duit dencmz=, dans le pr'Ssante listed.
los Et'.ts-Unis se r.servent le drcit de
..~ifior le taux du d-rcit applicable audit
pore.uit en vue de cin-penser la r6ducticn
ou la suppression Sventuelles de raditd
tx.xc int6rieure aaia,. en aucun cas, le
total :u drcit et dc la taxe interieure,
.pcs.'s sur un tel prcduit, ne pcurra
passer utn 7.nt7.nt egal au droit pr6vu
pour cc prcduit dans la pr6scnto liste
augr:ent6 do la taxes int6rioure pr6vu
par ltdit article 2470 au. 30 cctcbre f5Z47.
Dens la calcul ecnticnnS dans la pr6sento
note on ccnsid6rcer la taxo. intarieura
applicable a tout prcduit ccre ccmprenant,
a titre de ccmpensaticn, .'aquivnlent do
teute trax int rieurc sur urn drive dudit
pro duit". (1)
Item 211
In iten 211 the first diactor
specified in the description shall
read:
196-5/8 inches"
Item 212 [first]
In the principal description of
the first item 212, the words "cleck
cases withoor without" shall read:
"cleck cases with or without" GATT/1/37
Page 25
Schedule XX (contd.) - United States of Liste XX (suite) - Etats-Unis d'Amerique
America
Item 212 [second]
(i) In the second item 212 in the
description for saucers, the words
between "$3" and. the first semi colon
thereafter shall read:
Position 212 [deuxieme]
"per dozen"
(ii) The sub-description stzrting
"Other (except hotel ....)" shall read
in full:
"Other (except tableware,
kitchen-ware, and table and
kitchen utensils):" (2)
La subdivision commoncant par
"autres (a l'exception des articles cu
ustensiles de table et de cuisine pour
hotels et restaurants):" doit so lire
in extense:
"autres (a l'exception des
articles cu ustensiles de table
ou de cuisine):" (2)
Item 213
In item 213 the Rate of Duty
applicable to the sub-description
"Crystalline flake" shall read:
"15% ad Val., but nct less than
0.4125 , per lb. ner more than
0.823 A per lb."
Item 218(c)
The number cf the item following
the third item 218(b) shall read:
"218(c)"
Item 218(f)
In item 218(f) the Rate of Duty
applicable to the sub-descripticn
"Other" shall read:
"50 on each article or utensil,
but not less than 30% nor more
than 50, ad vel."
Item 224
In the description in item 224 the
word following the word "boveled" shall
road: etched".
Item 226
In the principal description in
item 226 the word between the words
"polished" and "or" shall road: plann; GATT/1/37
Page 26
Schedule XX (contd.) United States of Liste XX (suite) Etats-Unis d'Amerique
America
Item 317
In item 317 the Rate of Duty shall
read: 1/4, per lb."
Item 355
In item 355 the Rate of Duty
applicable to the sub-description "If
four inches in length or over, exclus-
ive of handle (except hay forks and
4-tined manure forks)", the first time
that sub-description is used, shall
read:
"4/c each and 25%. ad val.".
item 358 [first]
In the first item 358 the Rate
of Duty shall read "12-1/2% ad val.,
but not less than 2-1/2c each and
7-1/2/ ad val.".
Item 365 [sixth]
In the sixth item 365 the Rate of
Duty shall read:
"I3 each and 15% ad val."
Item 365 [seventh]
The number of the item following
the sixth item 365 shall read "365".
Item 372 [twelfth]
In the twelfth item 372 the first
word in the description shall read:
"Braiding"
Item 372 /thirteenth]
In the thirteenth item 372:
(i) The immediate sub-deseription to
which the Rate of Duty of "10% ad val."
applice shall read:
"For manufacturing or processing
vegetable fibers exceptt winding,
beaming, warping and slashing
machinery, and combinations
thereof)" (3)
Position 372 [treizieme]
A la treizieme position 372:
La subdivision immediate on regard
du taux "ad val. 10%", doit se lire
comme suit:
"Pour la fabrication cu l'ouvraisen
des fibres vegetales (a l'exception
dos machines pour le bobinage,
l'ourdissage, l'empeignage et le
parrage et de toute combinaison de
machines de sa genre)" (3)
(ii) The last two words, and accompany-
ing punctuation, in the immediate sub-
descripticn t; which the Rate of Duty
of "40% ad val." applies shall read:
"*Pradfcrd" combat GATT/1/37
Page 27
Schedule XX (contd.) - United States of Liste XX (suite) - Etats-Unis d'Amereque
America
Item 372 [nineteenth]
In the nineteenth item 372, in the
sub-description to which the Rate of
Duty of "15% ad val." applies, the five
words and intervening punctuation
proceding the third semi-colon shall
read:
"tension, compression, torsion,
or shoar"
Item 502 [second]
In the second item 502 the Rate of
Duty shall read:
"0.03c per lb. of total sugars"
Item 719 (1), (2), (3), (4), and (5) Position 719(1),(2),(3) ,(4) et (5)
In item 719 (1),(2),(3),(4), and Aux cinquieme droit, ajeuter immediat.
(5) the fifth Rate of Duty shall road: ment apres la designation:
"'1/2c per lb. net wt." (4) "livre (net)" (4)
Item 720(a)(1),(2),(3),(4),(5). and (6)
In item 720(a) (1), (2), (3),(4),(5),
and (6) the -immodirate sub-descripticn
to which the rate of "1-1/4c per lb."
applies shall be:
"Eviscerated, split, skinned,
bened (if smoked), cr divided
inter portions".
Item 745
In item 745 the Rate of Duty
applicable to the sub-descripticn
"Prepared or preserved, and nct specially
provided for" shall be:
"20% ad val." (5)
Item 764
In item 764 the Rates of Duty
applicable to the descriptions "Carrot",
"Parsnip", "Tree and shrub", and
"Flower" shall cach read:
"3c per lb." GATT/1/37
Page 28
Schedule XX (contd.) - United States of Liste XX (suite) - Etats-Unis d'Amerique
America
Item 771[second]
In the second item 771 the weight
of the bushel referred to in the
second provise shall read:
"60 pounds"
item 775 [second]
The number of the item following
the first item 775 shall read:
Item 806(b)
d' Amerique
Position 806(b)
In item 806(b) the immediate sub-
description tc which the Rate of Duty
of "20, per gal. on the quantity cf
unconcentrated natural fruit juice
contained therein as shown by chemical
analysis" applies shall read:
"Lime juice"
(6)
La premiere subdivision qui figure
en regard du taux "C,20",a saveir: "par
gallon de la quantity de jus... " doit se
lire:
"jus de limon....par gallen,etc.."(6)
Item 902 [second]
The number of the item following
the first item 902 shall read:
"902"
item 905
In item 905 the second paragraph
referred to in the description shall
read:
"904"
Item 909 [third]
In the third item 909 the Rate of
Duty applicable to the sub-description
"Terry-weven" shall read:
"22-1/2, per lb., but not less
than 20% nor more than 35% ad val.''
Item 913(a)
In item 913(a) the Rate of Duty
applicable to the sub-description "Wholly
or in chief value of cotton or other
vegetable fiber and india rubber, and
valued at 40 cents or more per pcund'
shall read:
"20% ad val." GATT/1/37
Page 29
Schedule XX (contd.) - United States of
America
Item 919[second]
In the second item 915 the Rate
of Duty shall road:
"15, per doz. pieces and
5, ad val. " (7)
Item 924
In itom 924 the Rate of Duty shall
read:
"5c per lb., but not loss than
1-3/7 times the most-favoured-
nation rate of ordinary customs
duty applicable when such articles
arc entered, or withdrawn from
warehouse, for consumptino tc
cotton having a staple of 1-1/8
inches cr more in length"
Liste XX suite) - Etats-Unis d' Ameriq
Position 924
Le droit indique a la position 92
dcit se lire comme suit:
"0,05 la liver, mais pas moins de
1-3/7 feis le drcit de deuane
ordinaire de la nation la plus
faverisee applicable, lersque de
tels articles sent importes ou
retires d'entrepet pour la
consemmation, au coton ayant des
brings de 1-1/8 de peuce cu plus d'
longueur"
Item 1011
In item 1011 the -word following
the seccnd comma shall read:
"wholly"
Item 1102(b) [first]
In the Note at the end cf the first
item 1102(b) the number following
"1115(c) and" shall be:
"1119"
Item 1107
In item 1107 the Rate of Duty
applicable tc the sub-descripticn
"Wholly or in chief value of Angera
rabbit hair" shall read:
"40c per lb. and 15% ad val."
Item 1109(a)
The number of the item immediately
following item 1108 shall be:
"1109 (a) " GATT/1/37
Page 30
Schedule XX (contd.) United States cf Liste XX (suite) - Etats-Unis d'Amerique
America.
Item 1110
In item 1110 the Rate of Duty shall
read:
"33c per lb. and 25% ad val."
Item 1114(a )
In item 1114(a) the Rate of Duty
applicable tc the first sub-description
shall read:.
per lb. and 20% d val."
Item 1115 (b)
The number of the item immediately
following item 1115(a) shall road:
"1115(b) "
Item1305
In item 1305 the Rate of Duty shall
read:
"25% ad val., but nct less than
27-1/2c per lb."
Item 1409 [second]
In the second item 1409 the
specified minimum thickness shall read:
"0.008 inch"
Item 1413 [seventh]
In the seventh item 1413 the Rate
of Duty shall read:
"27-1/2% ad val."
Item 1502 [first]
In the first item 1502, in the
sub-descripticn to which the Rate of
Duty of "10% ad val." applies., the
two words and punctuaction before the
words hockey sticks" shall read:
"rubber, field" GATT/1/31
Page 31
Schedule XX (contd.) - United States of
America
Liste XX (suite) - Etats-Unis d'Amerique
Ite; 1503 [third]
.
In the third item 1503 the provise
shall read:
"Provided, That for the purpose
onlyu of applying the second proviso
tc paragraph 1503, Tariff Act of
1930, tc articles provided for in
this item, each rate of duty
"existing" (within the meaning of
Section 350, Tariff Act of 130,
as amended by the Act of July 5,
1945) cn January 1, 1945, shall
be reduced to 50 per centum of
such rate." (8)
Item 1527(a) (1) and (2)
In item 1527(a) (1) and (2) the Rate
of Duty to which is applicable the sub-
description "'All other, of whatover
material composed, valued above 20 certs
per dozen pieces" shall read:
"'55% ad val., but not less than
50% of the amount payable on the
basis of the duty "existing"
(within the meaning of Section 350,
Tariff Act of 1930 as amended by
the Act fo July 5, 1945) on
January 1, 1945 if the article were
nct dutiable under paragraph 1527,
Tariff Act of 1930" (9)
La elause conditionnelle a la
troiseme position 1503, deit so lire
comme suit:
"Teutefais, uniquement en vue
d'appliquer la deuxieme clause
conditionnelle du paragraph 1503
du 'Tariff.Act'-de 1930 aux articles
denemmes seus la presente position,
chaque drcit 'cn Vigucur' (,au sens
de'J>a section 350 du 'Tariff Act'
de 1930, -ene'.6 par la li du 5
juillet 1945) 'a la date du X§ .
janvier 1545, sera r6duit do 8Y
P-siticn 1I27(q)(l)et (2)
A Ia p siticn 1527(a) (1) et (2), Ie
taux qui figurre c- reg-rd de 1E. subd.visi-r
't:us autres, quelle qu'er. soit la =tierc,
6valu6e r. plus de 2C conts par d:uzaine d,
piscas" `.it se lire clzu.e suit:
'AdL val. 555 =zais pas m:ins de
du1' du 'ntant payable sur 1a
basE du drL'it 'en vigucur' (au sens
',dela secti :n 350 du 'Tariff Act' '. e
1'3C, a:icn'6 p-.r 1. lci du 5 juillet
1I'45) * la date du lcr janvier 1' 45,
si l'article nl' tait pas possible de
dr;it d'rpres le paragraphe 1527 du
'Tariff Act' dc 1930" (9) .
rteC = 1527(c)(1) and (2)
In iter. 1527(c)(1) and (2) a final
_aronthesis shall be inscrtcd ct the end
-f tho subdescripti'on tc which-the Rate
. f Duty cf "65% ad val." applies.
ttea 1528/_seccnd
In the second item 1528 the sub-
description tc which the Rate cf Duty cf
T3% ad val. " applies shall be:
"Diamonds"
Item 1528[third]
In the third item 1528 the Rate cf
uty shall read:
"10% ad val."
Position 1503 [troisieme] GATT/1/37
Page 32
Schedule XX (contd.) - United States of
America
Item 1529 (a) [first]
Listed XX (suite) - Etats-Unis d'Amerique
Position 1529(a)[premiere]
.
In the first item 1529(a) the sub-
descriptions indented under the sub-
description."Made full gauge cn a
machine of 12 point or finer:"and the
Rates of Duty applicable to said sub.
description, shall read as follows:
"Wholly cr in chief value of cotton
and amde with independent
be .................. ... 40% ad val.
"Wholly or in chief value of
silk .................. 40% ad vla..
"Other................. 45% ad val."(10)
Les subdivisions en retrait apres 1
subdivision '"cbtenucs en pleine largeur
(full gauge) sur un metier de 12 points
cu plus fin", et les taux correspondant
deivent se lire:
"Entierement en coton cu dent le coten
ccnstitue l'element de principal valeur
et fabrique's sur des reuleaux
independants.................... ad val.40%
"Entierement en seie cu dont la seie
constitue l'element de principale
valour................. ad val. 40%
"Autres...............ad val. 45%" (10)
Item 1530(b) (1), (2),(4), (5), (6),
and (7)
The number of the item following
item 1530(a) shall read:
"1530(b) (1), (2) ,(3) ,(4) ,(5) ,(6),
and (7)"
Item 1537(b)[first]
In the first item 1537(b) the words
between the word "them' and the word
"material" in the principal description.
shall read:
"is the component"
Item 1545
In item 1545 the immediate sub-
description to which the Rate of Duty of
"4% ad val." applies shall read:
"Eardhead or reef"
Item 1547(b)
(i) The number of the item following
item 1547(a)(1) and (3) shall read:
"1547(b)"
(ii) In item 1547(b) the Rate of Duty
shall read:
"10% ad val." GATT/1/37
Page 33
Schedule XX (contd.) - United States of
America
Item 1604
The number of the item following
item 1602 shall read:
"1604"
Item 1609
Liste XX (suite et fin) - Etats-Unis
d'Amerique
In item 1609 the word "unprepared'
shall be followed by a semi-colon.
Item 1786
In item 1786 the words preceding
'the first comma shall read:
"Tin in bars"
Item 1803(2)
The number of the item following
item 1803(1) shall read:
"1803(2)"
Part II - Preferential Tariff
Item 743 [first]
Deuxieme Partie - Tarif preferentiel
Position 743 [premiere]
In the first item 743 the
description shall read:
"Limes, in their natural state,
or in brine" (11)
La designation des produits figurant
scus la premiere position 743, doit se,
lire come suit:
'Limons all'etat naturel ou
en saumure" (11)
Item 751
In item 751 the principal
description shall read:
"Jellies, jams, marmalades,
and fruit butters" GATT/1/37
Page 34
3. The provisions of this Protocol
shall on and after this date constitute
an integral part of the General
agreement on Tariffs and Trade, dated
October 30, 1947, and the rectific-
ations included herein shall be applied
as if they had formed a part of said
Agreement on that date.
4. The United Nations is authorized
o effect registration of this
Protocol and shall furnish certified
copies thereof to all interested
Governments.
IN WITNESS WHEREOF the
Representatives of the Governments of
the Contracting Parties abovenamed
having communicated their full powers,
rond to be in good and due forms and
the Representatives of the Governments
which are the other parties to this
Protocol having communicated their
credentials, also found to be in good
and due form, have signed this
Protocol.
DONE at Havana, in a single copy,
in the English and French languages,
this ...... day of March Ono Thousand
Nine Hundred and Forty-Eight.
3. A partir de la date du present
Protocols les dispositions du present
Protocols feront partie integrante de
l'Accord general sur les tariffs douaniers
et le commerce signe le 30 octobre 1947,
et les rectifications qu'il contient
devrent etre appliquees comme si elles
avaient figure dans ledit Accord general
a la date de sa signature.
4. L'Organisation des Nations Unies
eat autorisee a proceder a.
l'enregistrement du present Protocole;
elle en adressera des copies certifiees
conformes a tous les gouvernements
interesses.
EN FOI DE QUOI les representants
des gouvernements des Parties
Contractantes enumerees ci-dessus,, apres
avoir communique leurs pleins pouvoirs
reconnus en bonne et due former, et les
representants des gouvernements des
autres Parties au present Protocoles
apres aveir communique leurs pouvoirs,
egalement reconnus en bonne et due former
ont signe le present Protocols.
FAIT a La Havane,,en un soul
exemplaire, dans les langues francaise
et anglaise, le .... mars mil neuf cent
quarante-huit. |
|
GATT Library | gf931qb9341 | Report of the Sub-Committee upon paragraph 5 of Article 68. (Membership) | United Nations Conference on Trade and Employment, January 29, 1948 | Sixth Committee: Organization | 29/01/1948 | official documents | E/CONF.2/C.6/55 and E/CONF.2/C.6/44-75 | https://exhibits.stanford.edu/gatt/catalog/gf931qb9341 | gf931qb9341_90170116.xml | GATT_147 | 148 | 1,068 | United Nations Nations Unies
CONFERENCE CONFERENCE E/CONF.2/C.6/55
ON DU 29 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISHH
SIXHE COMICTTEE:OQRGANIZATIND
EPORT OF THE SUB COMMITTEE UPON PARAGRAPH 5 OF AARTICLE 68
1. The Sub-Committee unanimously recommends the following text of
paragraph 5 of Article 68:
"., The Conference shall determine, by a two-thirds majority of the
votes cast,iIn each individual case, the conditions upon which
membership rights and obligations shall be extended to:
(a) the Free Territory of Trieste;
(b) any Trust Territory administered by the United Nations; and
(c) any other special regime established by the United Nations."
2. In the opinion of the Sub-Committee the effect of paragraph 5 would be
that the Conference at its discretion could, under the terms of this
paragraph, grant full membership or could prescribe any other rights and
obligations to applicants under sub-paragraph (a), (b) or (c), |
GATT Library | nr533dy0979 | Report of the Working Party | United Nations Conference on Trade and Employment, January 12, 1948 | Fourth Committee: Restrictive Business Practices | 12/01/1948 | official documents | E/CONF.2/C.4/9 and E/CONF.2/C.4/1-25 | https://exhibits.stanford.edu/gatt/catalog/nr533dy0979 | nr533dy0979_90190652.xml | GATT_147 | 125 | 980 | United Nations Nations Unies UNRESTRICTED
E/CONF .2/C.4/9
CONFERENCE CONFERENCE 12January 1948
ON DU ORIGINAL:ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
FOURTH COMMITTEE: RESTRICTIED BUSINESS PRACTICES
REPORT OF THE WORKING PAPRTY
The Working Party considered the various suggestions made in regard to
Article 48, during the seventh meeting of the Fourth Committee, held on
12 January 1948 and decided on the following text:
ARTICLE 48
Co-operative Remedial Arrangements
1. Membere may co-operate with each other for the purpose of making
more effective within their respective jurisdictions any remedial
measures taken in furtherance of the objectives of this Chapter and
consistent with their obligations under other parts of this Charter.
2. Members shall keep the Organization informed of any such
co-operative action in which they participate. |
GATT Library | qz706kz0455 | Report of the Working Party | United Nations Conference on Trade and Employment, January 12, 1948 | Fourth Committee: Restrictive Business Practices | 12/01/1948 | official documents | E/CONF.2/C.4/9 and E/CONF.2/C.4/1-25 | https://exhibits.stanford.edu/gatt/catalog/qz706kz0455 | qz706kz0455_90190652.xml | GATT_147 | 0 | 0 | |
GATT Library | zt313yk4339 | Report of the Working Party on Article 12 | United Nations Conference on Trade and Employment, January 17, 1948 | Second Committee: Economic Development and Sub-Committee B on Article 12 | 17/01/1948 | official documents | E/CONF.2/C.2/B/W.11, E/CONF.2/C.2/B/W.1-14, and C.2/C/W.1-13 | https://exhibits.stanford.edu/gatt/catalog/zt313yk4339 | zt313yk4339_90180313.xml | GATT_147 | 825 | 5,524 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF. 2/C.2/B/W.11
ON DU 17 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SECOND COMMITTEE: ECONOMIC DEVELOPMENT
SUB-COMMITTEE B ON ARTICLE 12 - INTERNATIONAL INVESTMENT FOR ECONOMIC DEVELOPMENT
Report of the Working Party on Article 12
1. At its Fifth Meating the Sub-Committee appointed a Working Party
consisting of the delegates of Australia, India, Mexico, the Netherlands and
the United States of America with the following terms of reference:
"To prepare an agreed text of Article 12 on the basis of the
Australian redraft, taking into account the proposed amendments to
this redraft and other relevant amendments proposed to Article 12."
(The Australian redraft appears in document C. 2/B/W.7/Corr.l.)
2. The Working Party has agreed unanimously on the text of Article 12
which appears at the end of this report.
The Working Party took into account the fact that acceptance of the
Australian redraft of Article 12 as a basis ef discussion had been regarded
by certain Members of the Sub-Committee as disposing of their proposed
amendments to Article 12, and it considered that other amendments to
paragraphs 1 and 2 of Article 12 not so disposed of were taken into account
or disposed of by the text of Article 12 which appears below.
In the course of its deliberations the Working Party also took into
consideration the amendments of Peru (document C.2/9/Add. 5) and Chile
(document C.2/9/p.19) which refer in part to aspects of foreign investment
not directly covered by the Australian redraft of Article 12. It was
agreed that the provindons of these amendments were in part covered by
the provisions of Article 11 and for the rest generally covered by the
text which appears below. ,
The Working Party did not consider paragraph3 of the Geneva text as
its was agreed in the Sub-Committee to retain this paragraph as it appears
in the Geneva Draft (.see notes of Fifth Meeting of Sub-Committee B,
documentC.2 /B/W.10).
3. The working Party agreed the following interpretation should be
given to paragraphs sub-paragraph (c) (iv) of Article 12
/"The requirements E/CONF.2/C.2/B/W.11
Page 2
"The requirements referred to in paragraph 1 sub-paragraph (c) (iv)
may, provided they are reasonable, relate either to foreign investments
only or to investments generally."
4. The Working Party also agreed that the language of paragraph 1
sub-paragraph (c) (ii) means that a country has the right completely to exclude
future foreign investments.
5. The Indian delegation reserved its position on paragraph 2 of the text,
pending instructions from its Government.
6. The text of Article 12 as agreed by the Working Party and including
paragraph 3 of the Geneva text is as follows:
"ARTICLE 12
INTERNATIONAL INVESTMENT FOR ECONOMIC DEVELOPMENT
1. The Members recognize:
(a) that international investment, both public and privatec oan
be of great value in promoting economic development and consequent
social progress:
(b) that the international flow of capital will be stimulated to
the extent that Members afford nationals of other countries
opportunities for investment and security for existing and future
investments:
(5) that, without prejudice to existing international agreements
to which Members are parties, a Member has the right
(i) to take any appropriate safeguards necessary to ensure
that foreign investment is not used as a basisi for
interference in its internal affairs or national policies:
(ii) to determine to what extent and upon what terms it will
allow future foreign investment:
(iii) to prescribe and give effect on just terms to requirements
as to the ownership of existing or future investments:
(iv) to prescribe and give effect to other reasonable
requirements with respect to existing and future investments
(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 enter into
bilateral or multilateral agreements relating 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
referred to in sub-paragraph (c) of this paragraph.
2. Members therefore undertake:
(a) Subject to paragraph 1 sub-paragraph (c) of this Article and
any agreements entered into under paragraph 1 sub-paragraph (d)
/to provide E/CONF.2/C.2/B/W.11
Page 3
to provide reasonable opportunities for investments and adequate
security for existing and future investments and, as far as
possible, to avoid discrimination as between foreign investments;
(b) Without prejudice to existing international agreements to
which Members are parties upon the request of any Member to enter
into consultation or to participate in negotiations directed
toward the conclusion, if actually acceptable, of an agreement
of the kind referred to in paragraph 1 sub-paragraph (d) of this
Article,
3. Members shall promote co-operation between national and foreign
enterprises or investors for the purpose of fostering economic
development in cases where such co-operation appears to the Members
concerned to be appropriate. |
GATT Library | wq613jb9700 | Report of the Working Party on Budget and Secretariat proposals | Interim Commission of the International Trade Organization, March 23, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) | 23/03/1948 | official documents | ICITO/EC.1/5, ICITO/EC.1/LIST OF DOCUMENTS, ICITO/EC.1/1-6, and ICITO/EC.1/SR.1,2 | https://exhibits.stanford.edu/gatt/catalog/wq613jb9700 | wq613jb9700_90180065.xml | GATT_147 | 2,107 | 14,256 | UNRESTRICTED
ICITO/EC. 1/5
23 March 1948
ORIGINAL: ENGLISH
INTERIM COMMISSION OF THE INTERNATIONAL TRADE ORGANIZATION
REPORT OF THE WORKING PARTY ON BUDGET AND
SECRETARIAT PROPOSALS
The Working Party met at 6.00 p.m. on Monday, March 22, and agreed on
the following proposals regarding the structure of the Secretariat:
1. Executive Secretary
2. Deputy Executive Secretary
3. Special Assistant
(a) Research Assistant
(b) Research Assistant
(c) Research Assistant
(d) Administrative Assistant
4. Legal Adviser icluding organization - to be borrowed as
eq]uired from the United Nations
5. Commercial Policy Adviser
6 Economic Development Adviser
(a) Assistant
7. Commodity Adviser - to be borrowed as required from
the United Nations
8. Stenographic up to 8
The osts enumerated above are the estimated maxima up to which the
Executive Secretary is authorized to recruit. The extent to which the
posts required are to be filled the Working Party feels should be left to
the discretion of the Executive Secretary subject to the overriding
consideration of the maximum of economy consistent with the provision of
an effective Secretariat. The Working Party also consider that the budget
should bse reviewed at the Second Sesion of the Executive Committee.
Th Workin majorgj j ry considered that the r art of the work of the
Secretariat during the initial period would be concerned with the matters
covered by paragraph 2 (c), (d), (e), (f) and (g) of the terms of reference
of the Commission. They considered that substantial research would be
required into the question of economic development in accordance with the
relevant Conference Resolution and this consideration lead them to provide
foor o ssisfull -ntimhe adviserd ne aThTt oor nti question. the orWking Party
cnsiieed ICITO/EC.1/5
Page 2
considered that perhaps the best choice to fill this post would be a man
chosen not necessarily from an under-developed country, but from a country
which has devoted special attention to problems of economic development and
Sweden was cited as an examples. If such an appointment were made, the
assistant should be a national of an under-developed country. The
Working Party thought that the Executive Committee might like to consider
this matter and make a recommendation to the Executive Secretary. The
matters to be dealt with in the first stage of the Secretariat's work
appeared to fall mainly within the scope of the Special Assistant, and the
Working Party, therefore, recommended that provision be made for adequate
assistance to this officer to enable him to draft the necessary reports.
The Working Party reviewed the various functions of the Commission and
came to the following conclusions:
paragraph 2 (b)
In the main, these questions would be dealt with following the Second
Session of the Executive Committee rather than before it. At that time, the
Executive Committee might wish to set up sub-committees or working parties
and, in particular, a Site Committee.
Paragraphs 2 (c),(d), (e) and (f)
The Secretariat might forthwith proceed with the preparation of
documents for consideration by the Second Session of the Executive Committee
but without entering into formal consultations. At the Second Session, the
Executive Committee might wish to establish suitable sub-committees for
consultation with the United Nations and other agencies concerned;
paragraph 2 (g)
The views of the Working Party on economic development are set out
above. In addition the Working Party thought the Executive Committee might
establish a panel of countries represented on the Executive. Committee each
of whom would nominate a representative with whom the Executive Secretary
night consult in preparing his report to the Second Session of the Executive
Committee.
As regards the consultations with the International Court of Justice,
the Working Party considered that the Secretariat might make contact with
the Registrar of the Court in order to ascertain the facts bearing on the
contemplated consultations with the Court and the method and timing of such
discussions. At the Second Session, the Executive Committee might establish
a small sub-committee to carry out the consultations.
On the Swiss proposal it was the understanding of the Working Party
that the Swiss Government would wish to consult directly with the
/Executive Committee, ICITO/EC.1/5
Page 3
Executive Committee, probably at its Second Session. In the meantime, the
Secretariat should confine itself to assembIying such data as might assist
the Executive Committee in these consultations.
The Secretariat should proceed forthwith with the preparation of the
texts of the Charter in Spanish, Russian and Chinese in accordance with
the procecdures approved by the General Committee of the Conference.
Paragraph 2(h)
The Working Party considegigid that the Executive Committee should ve
instfticns to the Executive Secretary as to the line he should take in
discussion with is.Ssecretary Generalof theUnited Nation.
With r g ard of Paragraph 5 of the terms of reference, the Working Party
considered that the Secretariat of the ICCICA should be provided by the
Secretariat of the United Nations but that the Executive Secretary should try
to make arrangemmments whereby the services of the comodity officers of the
United Nations could be made available as required to the Interim Commission.
The Working Party did not enter into any detailed discussion of the
financial provisions necessary to give effect to its recommendations, but
agreed to recommend the Executive Committee to accept provisionally and
subject to review at the Second Se ssion, estimates to be put forward to the
Executive Commttee by the Executive Secretary based upon the financial
regulations and practice of the United Nations.
Budget estimats on this basis are attached to thisreport.
Attachment. ICITO/EC.1/5
Page 4
PROPOSED BUDGET FOR THE INTERIM COMMISSION FOR ONE YEAR
Based upon the assumption that the organization could efficiently operate
with a permanent staff of 20 people, as shown previously, the following
budget is submitted for consideration,
No provision has been made for emoluments which accrue to staff members
who possess contracts for one year or more,
Salaries, Wages and Other Pay Items
Established Posts
Experts and Consultants
Temporary Assistance
Overtime
Staff Expenses
Travel on Official Business
Hospitality
Estimated Requirements
. .
$ 1220,600.0
2,500.00
2,000.00
1,000.00
10,000.00
1,000.00
Other Expenses (Direct Charges)
iationstionsCunicatis
Air Freight
Contractual Printing
2,500.00
5,000,00
4,6oo0
Common Staff Costs
Travel of Staff Members on Initial Recruitment
Transfer from Lake Success to Geneva
Daily Living Allowance
Termination Puay utad Commtation of Annual Leave
Travel and Removal Costs of Terminated Staff
Reimbursement for National Income Taxation
Rental Allowances
Medical and Hospitalization Insurance
Childrens Allowances
Education Grants and Related Travel
Group Insurance
Ex Gratia Payments
Compassionate Payments
Worknn Cmpensation Insurance
Comon Services
Unf oreseen Expenses (10%)
7,200.00
41,250.00
006,006o
1.,50000
2 000
000.0G0,
4.2.0000
1,0.0000
004o.00
1,100.00
500.00
00.000
1.000,00
12.500
23,300.00
$ 247,275.00
24,725.00
$ 272,000.00
YUuGETARYgYTAB Page 5
BUDGETARY JUSTIFICATIONS
Salaries, Wages and Other Pay Items
Established hetablid Posts
No of Fsts
1
*-' - "
4
4
1
. . I
5
. .I
Dire
-1
1
d~e Sal=r~
ctOr $10,000 - $11,000 P1s
$2,500 Rep. Allcv
L 9,200- 10,900
L .,300 *10,900
6 71.0 10300
3 5,450 .,450
8 0 3,210 - 4,41
7 2,890 - 3,970
6 2,610 - 3,570
4 2.30 - 2 ,890
Approximate Base
$ 13,000.00
10,000.00
9,60O.00
35.600oo0
25,800.00
3,800.00
6 800.00
15,500.00
2,500,0
20
$ 1T20.00
lations-$2,500.00Uere an az
Connsultants may be ecessary in order to-carry out efficiently the
functiomns mof tb Interim Comission.
TeirarAssistance - $2,000.00 .. .. . . -;
It will be necessary to- recruit personnel on a temporary basis to
provide for the replacement of staff on annual and sick leave, and for
possible clerical assistance during peak periods.
Overtime $1,000 00
mIt islanticipomated lthat it will, be impossible to cpletey eliminate
overtime work. Therefore, it is estimated on the basis of 26 overtime
periods of 4 hours each for 9 entitled posts.
.00Travel on Official Business - $1050
This ismo provide for mmestimated travel costs of Interim CoMssion
Secretariat Members for one year.
H lOiy $1,900.0O
The amount shown iibased upon the expectation that senior members of
thneult staf wil be reqtur6d o cosUilh Governments and other specialized
isagenions creies. i many cases, djussfn ai held in informal meetings with
various specialists which require hospitality.
/otertal Page 6
Other Departmental Expenes
Communications - $2,500.00
This will provide for expenditures in connection with cables, telegraph,
wireless communication and long distance telephone.
Air Freight - $5,000.00
Estimated at nominal figure.
Contractual Printing- $4,000.00
This is based on contractual printing of 100 text pages in English and
French (1500 copies each) at -an average cost of approximately $1.30 per copy.
Common Staff Costs
Travel of Staff Members on Initial Recruitment - $7,200.00
Actual travel expenses and a travel allowance are payable to all staff
members upon appointment to the organization or upon transfer from one area
to another. The travel of applicants requested to report for interview is
also-payable. It is estimated that 12 staff members will be travelling from
areas adjacent to their headquarters at an average cost of $50.00 each, and
that 8 staff members will be travelling from more distant areas at an average
cost of $500.00 each. In addition, it is estimated that the cost of travel
of applicants called in for interview will be approximately $2,600.00.
Transfer from Lake Success to Geneva - $41,250.00
The contemplated transfer of the organization from Lake Success to Geneva
will entail expenditures in connection with the travel of the staff members,
their dependents, removal of staff members effects, and freight and cartage
on property and documents of the Interim Commission. The above costs are
estimated as follows:
20 staff members @ $350.00 each $ 7,000.00
10 adult dependents @ 350.00 each.. 3,500.00
10 minor dependents @ 175,00 each 1,750.00
Removal of staff members effects-$1,200 ea 24,000.00
Freight and cartage - I.T.O. property 5,000.00
$ 41,250.00
Daily Living Allowance $6,600.00
A daily living allowance to compensate for initial extraordinary -living
expenses is payable to staff members for the first sixty days after they
report to duty. It is assumed that 14 members will be entitled to this
allowance. On the bases of rates now in effect at the United Nations,
/the following ICITO/EC.1/5
Page 7
the following calculation is made:-
Grades 15 - 19 6 members @ $7,00 per day for 60.days $ 2,520.00
Grades 12 - 14 3 members @ $6.00 per day for 60 days 1,080.00
Grades 5 - 11 5 members @ $5.00 per day for 60 days 1,500.00
Dependents of the above staff members estimated at 1,500.00
$ 6,600.00
Termination Pay and Commutation of Annual Leave $1,500.00
Staff members terminated by the organization receive, under certain
conditions, from one to nine months termination pay. Payment is made for
accrued annual leave regardless of the circumstances of the separation.
Travel and Removal Costs of staff and Dependents upon Termination - $2,000.00
The organization pays the cost of return of staff members and their
dependents to their homes upon termination under certain conditions.
Reimbursement for National Income Taxation - $4,000.00
This item is included in the event that the organization decides to
reimburse staff members for income taxation levied by their respective
governments.
Rental Allowances - $4,200.00
Rental allowance is payable to staff members who are recruited outside
the headquarters area, excluding senior officers who receive a representation
allowance; or to staff members who incur extra rental costs resulting from
the necessity to contract for accommodations on a temporary high-cost basis,
or in new housing developments where construction costs and rentals are higher
then the norm for the area. It is estimated that fourteen staff members will
fall in this category at an estimated cost of $300.00 each.
Medical and Hospitalization Insurance Contributions - $1,000.00
Children's Allowances - $2,400.00
Childrens allowances are payable to all staff members with dependent
children, except senior officials who receive a representation allowance and
certain temporary staff, during the first ninety days of service. The rate
of allowance has been set at $200.00 per annum per child (rather than $144.00)
due to a recommendation that the allowance be raised at the United Nations.
Education Grants and Related Travel - $1,100.00
Group Insurance - $500.00
Workmen's Compensation Insurance - $125.00
/(This item (This item not applicable to Geneva)
Ex Gratia Payments $500.00
Compassinate Payments $1,000.00
Common Services
Based upon a ratio of 12½% of common services to salaries and wages at
Lake Success, it is estimated that the organization's share will be
$18,000. 00 per annum. At Geneva, the ratio is somewhat higher (18½%) and
the proportionate share of the organization would be $26,000 pe annum. On
the assumption that the organization will be at Lake Success for 4 months
and at Geneva for 8 months, the following calculation ensues:
1/3 year @ $18,000.00 $ 6,000.00
2/3 year @ $26,000.00
$ 23,300.00
--------- -0 - |
GATT Library | bt777rv4389 | Report of the Working Party on paragraph 3 (b) of Article 21 | 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.9 and E/CONF.2/C.3/F/W.1-31/REV.2 | https://exhibits.stanford.edu/gatt/catalog/bt777rv4389 | bt777rv4389_90190570.xml | GATT_147 | 130 | 819 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMERCE ET DE L'EMPLOI
RESTRICTED
E/CONF.2/C, 3/F/W. 9
10 January 1948
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE F (ARTICLES 21, 23 AND 23 AND 24)
REPORT OF THE WORKING PARTY ON PARAGPAPE 3 (b) OF ARTICLE 21
1. At the third meeting of the Sub-Comittee a Working Party composed of
the delegations of Cuba, Liberia, the United Kingdon and the United States
was set up to draft a new wording of the sentence in paragraph 3 (b)
beginning "Such a Member may experience...."
2. The Working Party has agreed on the following draft:
. such a Member may experience such pressure on its
monetary reserves as to Justify restrictions under sub-paragraph 2 (a)
of this Article. Accordingly: ....." |
GATT Library | hq913vt8588 | Report of the Working Party on paragraph 3 (c)(ii) | United Nations Conference on Trade and Employment, January 12, 1948 | Third Committee: Commercial Policy and Sub-Committee F (Articles 21, 23 and 24) | 12/01/1948 | official documents | E/CONF.2/C.3/F/W.10 and E/CONF.2/C.3/F/W.1-31/REV.2 | https://exhibits.stanford.edu/gatt/catalog/hq913vt8588 | hq913vt8588_90190571.xml | GATT_147 | 140 | 899 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE
RESTRICTED
E/CONF.2/C.3/F/W.10
12 January 1948
L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE F (ARTICLES 21, 23 and 24)
REPORT OF THE WORKING PARTY ON PARAGRAPH 3 (c) (ii)
1. At the second meeting of the Sub-Committee a Working Party composed
of the delegates of Argentina and the United States was set up to draft a
new working of the last five lines of paragraph 3 (c) (ii) of Article 21.
2. The Working Party has agreed. that the sentence beginning "or restriction
which would prevent ............" should be amended to read as follows:
"..or prevent the importation of such minimum quantities of
a product as may be necessary to secure and maintain patent,
trade mark, copyright or similar rights under industrial or
intellectual property laws." |
GATT Library | qx589pm8295 | Report of the Working Party on the Draft Finance and Staff regulations of the International Trade Organisation | Interim Commission for the International Trade Organization, September 7, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT), Executive Committee, and Sub-Committee 3 on Administration | 07/09/1948 | official documents | ICITO/EC.2/SC.3/9 and ICITO/EC.2/SC.3/1-9 | https://exhibits.stanford.edu/gatt/catalog/qx589pm8295 | qx589pm8295_90180095.xml | GATT_147 | 2,032 | 13,333 | LIMITED C
INTERIM COMMISSION COMMISSION INTERIMAIRE DE ICITO/EC.2/SC.3/9
7 September 1948
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE
TRADE ORGANIZATION DU COMMERCE ORIGINAL: ENGLISH
Executive Committee
Second Session
Sub-Committee 3 on Administration
REPORT OF THE WORKING PARTY ON THE DRAFT
FINANCE AND STAFF REGULATIONS OF
THE INTERNATIONAL TRADE ORGANISATION
1. The Working Party accepted the general principle of
adapting the Provisional Finance and Staff Regulations of
the United Nations to the circumstances of the I.T.O.,
introducing as few amendments as possible. Certain problems
requiring action by the Conference arise out of these
Regulations, and the Working Party has made preliminary
observations on them. Its recommendations on the draft
provided by the Executive Secretary (which is understood to
incorporate recent amendments to the U.N. Regulations) are
as follows:
Finance Regulations
Regulation 3 should be amended to read:
"The financial year shall be the calendar year
1st January - 31st December."
Regulations 6 and 7. The question of the detailed
financial machinery for the Organisation is not wholly
within the terms of reference of Working Party and will,
of course, be the subject of debate and resolution at
the first Session of the Conference. It does, however,
seem necessary to indicate an approach to the problem.
The Working Party has, therefore, assumed that the
Conference will approve the establishment of an
Advisory Committee, similar to that established by the
U.N., of a limited number of independent persons meeting
fairly frequently
(a) to examine budget estimates,
(b) to authorize such transfers between Budget
sections or advances from the Working Capital
Fund as are beyond the competence of the
Director General,
(c) to advise the Conference, the Executive Board
and the Director General, upon such admini-
strative and financial questions as may be
referred to it.
to examine the auditors ' reports.
(d) ICITO/EC.2/SC. 3/9.
page 2
In the light of this principle Regulations 6 and 7
should be amended as follows (and consequential
amendments should be made where necessary elsewhere
in the Regulations):-
"Regulation 6 - The estimates shall be submitted
to the Advisory Committee on Administration and
Finance (hereinafter referred to as the Advisory
Committee) at least 12 weeks prior to the opening
of the annual Session of the Conference. They
shall be examined by the Advisory committee which
shall prepare a report thereon. The estimates
together with the Commttee's report shall be
transmitted to all members at least 5 weeks
:prior to the opening of the regular annual
Session of the Conference.
Regulation 7 - the estimates and. the reports of
the Advisory Committeeother shall be sub-
mitted to the Conference anr refered to the
proper com ittee.for consideration and report
to the Conf.rence,"
Regulation 8 It is the understanding of theWorking
Party that in accordance with the provisions of
Article 77 of the Charter the budget will be debated
and appropriations voted by tfe conference.
Regulation 12 It is assumed that a Working Capital
Fund will be established by a resolution of the
Conference.
Regula7ion 12 Amend second sentence to read:
"The Director General may at his. discretion lay down
conditions under which member governments may pay part
of their contributions in other currencies to the
extent that the approved budget requires expenditures
in those currencies."
Regulation 30 The Working Party.acce'pts. the proposal
in the footnote to Regulation 30 that it is desirable
to make use of the U. N Board of Auditors if ava.lable.
They consider that in addition to carrying out the
annual audit, it would be desirable that the Board
should be able to advise the.Director General on such
matters ms he gay re er to them from time to time.
It is recommended, therefore that Regulation 30
should be amended to read,
"For the purpose of making annually, and at such
ti es as.may be necessary for special purposes,
an independent audit of the funds assets and
accounts of the Organisation, the Organisation
shall so far as possible make use of the Board
of External Auditors of the Accounts of the
United Nations. The procedures governing the
audit shall be determined by a resolution of
the Conf.rence." ICITO/EC.2/SC.3/9
page 3
(The auditing experience of the U.N. has been
utilised to form the basis of a draft resolution
on auditing procedures under this Regulation
text at Annex A).
Regulation 32 For "Executive Board' read "Advisory
Committee".
Staff regulations
Regulation 2 The Working Party considers that the
text of the United Nations cath of acceptance should
not be modified as suggested in the footnote to this
Regulation.
Regulation 5 Amend second sentence to read:
"They shall not communicate to any person any
unpublished information known to them by reason
of their official position except as their duties
may require or by authorisation of the Director
General."
Regulation 7 The form of the U.N. text is preferred
to that of the draft.
Regulation12 The Working Party interprets the
second paragraph as in no way implying that
individual probationers should receive special
treatment.
Regulation 15 The Working Party interprets this as
relating to general questions affecting conditions
of service and in itself implying no obligation
on the Director General to discuss the private
problems of individuals.
Regulation 16 The Working Party considers that no
recommendation regarding scales of allowances should
be made until the question has been considered fully
by the Conference. They suggest amendment of the
last words of the sentence to read.
"who shall follow in principle the scales of
remmeration of the United Nations".
Regulation 22 The Working Party considers that a
maximum indemnity payable upon termination of
employment should be fixed, and recommend that the
Regulation should be amended to conform with the
equivalent U.N. Regulation.
Regulation 26 The Working Party recommends that the
Organisation should be affiliated with the U.N. Pension
Scheme if it is adopted at the forthcoming General
Assembly in Paris. It suggests the following
alternative draft for Regulation 26:- ICITO/EC.2/SC . 3/9
page 4
"The Organisation shall be affiliated with the
Permanent Retirement Scheme of the United Nations
and shall apply the provisions laid down thereby".
Regulation 28 The representative of the U.S.A.
considered that Regulation 28 should be deleted
since the matter is academic in the absence of the
establishment of a tribunal by the U.N. The
representatives of Australia and the U.K. consider
that the Article should be retained in the draft
in order to draw the attention of the Conference
to it.
Reuglation 29 Delete "without prejudice to the
acquired rights of members of the staff".
Regulation 30 Amend to read:
"The Director General shall inform the Advisory
Committee of such staff rules and amendments
thereto as he may make to implement these
Regulations. Whenever it considers this
necessary, the Advisory Committee shall draw
the attention of the Conference to them."
Childre'ts allowances and education grnats
The Working Party agrees that it is unnecessary at
this stage to make detailed provisions for these in
the text of the I.T.O. Staff Regulations (see
Regulation 16). ICITO/EC .2/SC.3/9
page 5
ANNEX "A"
PROPOSED AUDIT PROCEDURE FOR INTERNATIONAL TRADE ORGANIZATION
The auditors shall submit their report, together with
the certified accounts and such other statements as they
think necessary, to the Conference.. A copy of this report
shall be made available to the Director-General sufficiently
in .advance of its submission to the Conference to permit him
to present such comment or representations to the Conference
as he may desire to submits
The Audit should be carried out by the Auditors having
full regard to the following requirements of the Conference:
a. The Auditors should satisfy themselves:
(1) That the accounts, including the balance sheet,
represent a correct record of duly authorized
financial transactions of the financial year;
(2) That money has not been expended or obligated
other than for the purpose or purposes for
which the appropriations voted by the Conference
were intended to provide, except in so far as
transfers within the budget are authorized,
and that the expenditure conforms to the
authority which governs it;
(3) That transfers from the Working Capital Fund
or other funds have received the necessary
authority.
b. The Auditors, after satisfying themselves that the
vouchers have been examined and certified as correct by the
accounting organization, may, in their discretion and having
regard to the character of the examination within the depart-
ment, in any particular case admit 'the sums so certified
without further examination, provided however, that, if the
Conference requests that any accounts be examined in greater
detail, the Auditors shall take action accordingly.
c. The Auditors shall examine such store or stock
accounts as are maintained by the organization the financial
accounts of which they. are auditing.
d. The Auditors shall have free access at all convenient
times to the books of account and all information relevant to
the accounts of the organization concerned. Requests for
official files which may deal with matters of policy should
be made only through the administrative officer in charge of
administrative and financial services,
e .The Auditors should not criticize purely adminis-
trative matters, but it is within their discretion to comment
upon the financial consequences of administrative action.
Audit examination should not be undertaken before accounting
effect has been given to transactions, nor should accounts
and vouchers be examined until they have been duly rendered
available by the department concerned. ICITO/EC 2/SC.3/9
page 6
f. Objections to any items which may arise during
audit should be communicated immediately to the accounting
department concerned. As a general rule, criticism should
not be made in the Auditors' report without first affording
the accounting department an opportunity of explanation.
g. Documentary or other information obtained- from a
department should not be published by the Auditors without
reference having been made to the duly authorized official
of the organization or agency concerned.
h. The Auditors certifying the accounts shall prepare
a joint report of each account certified, in which they
should mention:
(1) The extent and character of their examination
or any important changes therein-
(2) Matters affecting the completeness or accuracy
of the accounts, such as:
(a) Information necessary to the correct
interpretation of the account;
(b) Any amounts which ought to have been
received but which have not been brought
to account;
(c) Expenditure not properly vouched;
(3) Other matters which should be brought to the
notice of the Conference, such as:
(a) Cases of fraud or presumptive fraud;
(b) Wasteful or improper expenditure of the
organization's money or stores (notwith-
standing that the accounting for the
transactions may be correct);
(c) Expenditure likely to commit.the organ-
ization to further outlay on a large
scale;
(d) Any defect in the general system or
detailed regulations governing the control
of receipts and expenditure, or of stores;
(e) Expenditure not in accordance with the
intention of the Conference, after making
allowance for duly authorized transfers
within the budget;
(f) Expenditure in excess of appropriations,
as amended by duly authorized transfers
within the budget;
(g) Expenditure not in conformity with the
authority which governs it. ICITO/EC . 2/SC .3/9
page 7
(4) The accuracy or otherwise of the stores
records as determined by stock-taking and
examination of the records.
In addition, the reports may contain reference to:
(5) Transactions accounted for in a previous
year concerning which further information
has been obtained, or transactions in a
later year concerning which it seems
desirable that the Conference should have
early knowledge.
i. The Auditors, or such of their officers as they
may delegate, should jointly certify each account in the
following terms:
"The above accounts have been examined in
accordance with our directions. We have
obtained all the information and explanations
that we have required, and we certify, as
the result of the audit, that, in our opinion,
the above account is correct" ;
adding, should it be necessary, "subject to the observations
in our report."
j. The Auditors shall have no power to disallow items
in the accounts, but shall recommend to the Director-
General for appropriate action such disallowances as the
Auditors are prepared to recommend to the Conference based
on their audit of the accounts and records. The Auditors
shall bring to the attention of the Conference any cases
where its recommendations for disallowance have not been
acted upon by the Director-General. |
GATT Library | ms307wf5006 | Report of the Working Party on the International Customs Tariff Bureau | Interim Commission for the International Trade Organization, September 7, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT), Executive Committee, and Sub-Committee 3 on Administration | 07/09/1948 | official documents | ICITO/EC.2/SC.3/8 and ICITO/EC.2/SC.3/1-9 | https://exhibits.stanford.edu/gatt/catalog/ms307wf5006 | ms307wf5006_90180094.xml | GATT_147 | 1,047 | 6,711 | LIMITED C
INTERIM COMMISSION COMMISSION INTERIMAIRE DE
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE ICITO/EC.2/SC.3/8
7 September 1948
TRADE ORGANIZATION DU COMMERCE
ORIGINAL: ENGLISH
EXECUTIVE COMMITTEE
SECOND SESSION
Sub-Committee 3 on Administation
REPORT OF THE WORKING PARTY ON THE
INTERNATIONAL CUSTOMS TARIFF BUREAU
The Working Party on the International Customs Tariff
Bureau was composed of the delegates of Benelux, Brazil,
Canada and the United States. The United States delegate
acted as Chairman. The Working Party held three meetings and
discussed possible alternative methods of dealing with the
Bureau. At its first meeting, the Working Party discussed
with Mr. Briffeuil the details of the staff, budget and
operations of the Bureau. Mr. Briffeuil explained the
difficult financial position of the Bureau which had been
caused, in part, by the failure of many of the parties to
the Convention to pay arrears in their contributions, and in
part by the inadequacy of the present scale of contributions
in the light of present costs.
The Working Party was impressed with the work which
the Bureau had been able to do in spite of its very limited
staff and budget. It was informed that, whereas the Bureau
has had to limit the amount of material which it could
translate and publish, because of inadequate funds, it has
no discretion under the 1891 Convention with respect to the
languages in which publication must be undertaken, namely -
English, French, Spanish, Italian and German.
The Working Party also discussed the legal aspects of
the question, including possible methods of modifying or
terminating the Convention.
On the basis of its deliberation, the Working Party
came to the conclusion that, if the work of the Bureau was to
be maintained without interruption, the most practicable
procedure would be that envisaged in Article 87, paragraph 3(c)
of the Havana Charter. The Working Party therefore recommends
that the Executive Secretary be directed, in consultation
with the officials of the Bureau, to work out the details of
an arrangement for bringing the Bureau under the direct
supervision of the ITO. The arrangement so worked out would
be submitted to the Executive Committee at its next session and
eventually to the First Session of the Conference of the ITO.
Under such an arrangement, the Bureau would be financed from
the ITO budget, at least insofar as those of its Members
which are also Members of the ITO are concerned. Such a method
of financing would relieve ITO Members from further current
contributions to the Bureau. It would, owever , leave the
Bureau free to collect full contributions from other Members
which were not Members of the ITO, and to seek the payment
of arrears from any Members which had not already made such
payment. ICITO/EC. 2/SC.3/8
page 2
The Working Party was inclined to believe, however
that at a later stage it might be found desirable to look
forward to the performance of the functions of the Bureau
by the ITO itself. The Working Party recommends, therefore,
that the Executive Secretary be requested to take this
possibility into consideration in the course of the
consultations referred to above, and to report to the
Executive Committee on possible means of effecting at a
later stage a transfer of the functions and resources of the
Bureau to the ITO under paragraph 3(b) of Article 87 of the
Havana Charter. Under the second stage it might be envisaged
that the work night still be carried on in Brussels, but
the Working Party does not feel qualified to express a view
at this time as to what arrangements should be made at such
stage.
The Working Party was impressed by the stringent
financial difficulties in which the Bureau now finds itself,
and considered that Members of the Interim Commission would
feel that they had a substantial interest in the carrying
on of the Bureau' s work without interruption. At the same
time the Working Party felt that it would not be appropriate
for one body to make detailed recommendations regarding the
internal affairs of another. The Working Party did, however,
feel that it would be appropriate for the Executive Committee
to give moral support to the efforts made by the Bureau,
with the assistance of the Belgian Ministry of Foreign
Affairs, to collect contributions to the Bureau which are in
arrears, and possibly to seek additional voluntary contribu-
tions for the Bureau.
Accordingly, the Working Party proposes the
attached Resolution for consideration by the Executive
Committee. ICITO/EC . 2/SC .3/8
page 3
DRAFT RESOLUTION OF THE
EXECUTIVE COMMITTEE OF THE INTERIM COMMISSION
OF THE INTERNATIONAL TRADE ORGANIZATION
REGARDING FINANCIAL ASSISTANCE TO THE INTERNATIONAL
CUSTOMS TARIFF BUREAU AT BRUSSELS
THE EXECUTIVE COMMITTEE OF THE INTERIM COMMISSION OF
THE INTERNATIONAL TRADE ORGANIZATION
CONSIDERING the importance of the work which has
long been and is still being performed by the International
Customs Tariff Bureau at Brussels in translating and
publishing the customs tariffs of all the countries of the
world, and
CONSIDERING the immediate financial difficulties
confronting the Bureau, which seriously impair its ability
to translate and publish these customs tariffs; and
CONSIDERING that although it has instructed the
Executive Secretary to enter into consultations with the
appropriate authorities of the Bureau with a view to
presenting to the first Conference of the International Trade
Organization proposals for bringing the Bureau within the
budget of the International Trade Organization, nevertheless
such financial assistance as this may ultimately provide
to the Bureau will have no immediate effect in relieving
the Bureau's present difficulties; and
CONSIDERING that the work of the Bureau should be
continued until such a time as the relationship between
the Bureau and the International Trade Organization may
be determined and brought into effect; and
CONSIDERING that the Belgian Ministry of Foreign
Affairs is charged under the 1891 Convention with the
adoption of the measures necessary for the organization and
operation of the Bureau.
RECOMMENDS to Governments Members of the Interim
Commission that they give sympathetic consideration to any
appeal which may be made by the Belgian Ministry of Foreign
Affairs on behalf of the Bureau, for the purpose of obtaining
immediate payment of such contributions to the Bureau as are
currently due or in arrears, or to other suggestions which
the Ministry may make with a view to relieving the
present financial difficulties of the Bureau. |
GATT Library | kn688bb8613 | Report of Wokring Party no. 6 on Item 24 (Geneva Draft Note) | United Nations Conference on Trade and Employment, February 1, 1948 | Third Committee: Commercial Policy and Sub-Committee E (Articles 20 and 22) | 01/02/1948 | official documents | E/CONF.2/C.3/E/W.16/Add.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/kn688bb8613 | kn688bb8613_90190551.xml | GATT_147 | 381 | 2,572 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE Add. 1 .
ON DU 1 Februar1y 948
TRADE AND EMPLOYMENT COMMERETCE DE L'EMPLOI ORNIGIALN:L EGISH
THIRD COMMITTEE:M ERCOMCIAL POLICY
ST-MMICOEbTI E (ARTICLES 20 AND 22)
PPROI OF WOKRNPM PARTY ONo6 ON ITEM 24 G(NEVmv DRAFT NOTE)
(Reference E/CONF..2/C. 3//73 and EC/0FN 2/C.3 E/W/. 16)
1. The following note to paragraph 2 (c) of Article 20 appears in the Geneva
text:
The term "in any form" in this paragrpha 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.
2. TheW orking Party accepted as valid the criticism put forward by the
United States delegate that the introduction of the term "perishable" which
is inapplicable to many types of agricultural products had unduly narrowed the
scope of sub-paragraph 2 (c). It considered, therefore, that some clarification
of the text was required and accordingly recommends to the Sub-Committee the
following rewording, which, in view of the general directive of the General
Committee about the elimination of footnotes, might now be included as a new
sub-paragraph in the text of the Article:
The term "agricultural or fisheries product, imported in any form"
means product in the form in which it is originally sold by its producer
and such processed forms of the product the importation of which, without
restrictions would make ineffective the restrictions on the importation
of the product in its original form.
3. The Working Party however wishes to make clear that the omission of the
phrase w"heni n an early stage of processing and still perishable" is dictated
solely by the need to permit greater flexibility in taking into account the
differing circumstances that may relate to the trade in different types of
agricultural products, having in view only the necessity of not making
ineffective the restriction on the importation of the product in its original
form andi s ni no way intended to widen the field within which quantitative
restrictions under Article 20 paragraph 2 (c) may be applied. In particular,
it should not be construed as permitting the use of quantitative restrictions
as a method of protecting the industrial processing of agricultural or
fishery products. |
GATT Library | qs670gk9661 | Report of Working Party | United Nations Conference on Trade and Employment, March 4, 1948 | Joint Sub-Committee of Committees II and III on Tariff Preferences and Joint Sub-Committee of Committees II and III (Articles 15, 16 and 42) | 04/03/1948 | official documents | E/CONF.2/C.23/A/14, E/CONF.2/C.23/A/1-15, and C.26/A/1-24 | https://exhibits.stanford.edu/gatt/catalog/qs670gk9661 | qs670gk9661_90180406.xml | GATT_147 | 3,995 | 25,207 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF. 2/C. 2&3/A/14
ON DU 4 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SECOND AND THIRD COMMITTEES
JOIN SUB-COMMITTEE ON ARTICLES 15, 16 AND 42
REPORT OF WORKING PARTY
1. At its tenth meeting, on 9 February, the Joint Sub-Committee appointed
a Working Party, under the Chairmanship of M. Jean Royer (France), to
examine the details of the proposals on Articles 15 and 42 and of those
relating to tariff preferences on Article 16 with a view to submitting
recommendations to the Sub-Committee so as to enable the Sub-Committee to
reach agreent on the matters referred to it.
2. The Working Party was composed of representatives of the following
delegations: Belgium, Chile, France, Syria, United Kingdom, United States
and Venezuela.
3. The Working Party benefited from the presence of representatives of
other delegations, and in particular wishes to acknowledge the valuable
contributions which the representatives of the Lebanon and Poland made to
its work.
4. The Working Party held twenty-nine meetings. It endeavoured to deal
with all the issues raised in the amendments proposed by delegations and kept
prominently in mind the views put forward by delegates both during the First
Reading of chapter III and IV in Committees II and III and in meetings of the
Joint Sub-Committee.
Article 15 -Preferential Arrangements for Economic Development
5. The terms of reference of the Working Party included the finding of a
solution to meet the various amendments submitted to Article 15. Discussion
centred on a proposal by the polish representative which incorporated the
main ideas conntained in the amandments and expressed in Committee and Sub-
Committee.
6. The main point at issue related to "prior" or "a posteori" approval.
A solution was found in the establishment of criteria and requirements for
what would, in effect, be automatic approval.
7. It was thus decided to establish two procedures:
(i) the Geneva procedure of prior approval for preferential
agreements not conforming to the specified criteria, and
/(ii) automatic E/CONF. 2/C .2&3/A/14
Page 2
(ii) automatic procedure for preferential agreements which do
conform to the criteria.
8. The specified criteria cover such matters as whether the territories of
Members are contiguous or whether they belong to an "economic region",
essentiality to programmes of economic development or reconstruction, customs
treatment of the products the trade in which is intended to be stimulated, by
the agreement, compensation granted in exchange for preferential treatment,
and provisions regerding adherence of other Members, termination and renewal.
9. Other matters discussed related to levels of main duties, margins of
preference, negotiatton and compensation in case of serious injury or
substantial damage to the external trade of Members, and provision regarding
existing agreements, such as those which derive from the Treaty of Lausanne.
10. The Working Party arrived at substantial agreement on the basis of a
revised text of Article 15. when the Working Party had reached an advanced
stage of its work, the matter was taken up by the Co-ordinating Committee in
view of its close connection with other important outstanding isues. The
text adopted. by the Co-ordinating Committee is contained in document
E/CONF.2/45/Rev.1.
Customs Unions and Free-Trade Areas
11. The second major task undertaken by the working Party was the revision
of Article 42 relating to customs unions. The text has been redrafted on the
basis of proposals by the French delegation., the main change being to extent
to free-trade areas the provisions relating to customs unions, as requested
by the delegations of Lebanon and Syria (C.3/11, Item 13). This subject was
considered to be of sufficient importance to require its separation from
the other matters dealt with in Article 42, and accordingly the Working Party
recomends a separate Article devoted exclusively to customs unions and
free-trade areas.
12. The new text thus contains three Artecles: Article 42, dealing with
territorial application; Article 42A, dealing with frontier traffic; and
Article 42B, dealing with customs unions and free-trade areas.
13. Territorial Application: The Working Party recommends that paragraph 1
of Article 42 of the Geneva draft, which defines the territorial application
of Chapter IV, and the first part of paragraph 4, which contains a
definition of "customs territory" , should comprise a separate Artiacle and be
amended as shown in the Annex to this Report. It is suggested, however,
the Sub-Commttee should consider whether the definition of "customs
territory" should be moved to some other part of the Charter, perhaps to
Article 99, in view of the fact that this term appears also in Articles 68,
97 and 99.
/14. Frontier E/CONF. 2/C .2&3/A/14
Page 3
14. Frontier Traffic: The proposal of the delegation of Argentina (C.3/11,
Item 9) to delete the words "in order to facilitate frontier traffic" from
paragraph 2 (a) of Article 42 (Geneva text) was not adopted by the working
Party. It was the opinion of the Working Party that provisions for arrangements
to faciliate frontier traffic should be retained and should comprise a separate
Article. Accordingly, Article 42A recommended without change in the words
used in the Geneva draft. The text is given in the Annex.
15. Article 42B: The first paragraph of Article 42B is new. It states that
the general purpose of a customs union or free-trade area should be to
facilitate trade between the participating parties and not to create new
obstacles to the trade of these parties with other Members of the Organization.
16. The second paragraph, providing for the establishment of customs unions,
is based upon paragraph 2 (b) of the Geneva draft, but there has been added
to it a new provision covering the establishment of free-trade areas. An
amendment proposed by the United Kingdom (C.3/11, Item 10) has been
incorporated, and it is felt that the new text of the Article largely covers
an amendment proposed by Chile (C.3/11, Item 11).
17. The third paragraph is based on paragraph 3 of the Geneva draft. It
defines the powers of the Organization in respect of interim arrangements
for the establishment of customs unions and free-trade areas. The Working
Party was unable to accept the proposal of Argentina in regard to sub-
paragraph (a) of the Geneva text (C.3/11, Item 14). The substance of a
proposal by the delegation of Italy (Item 15) has been included in the
revised sub-paragraph (a). In regard to sub-paragraphs (b) and (c) it was
felt that the revised text when come way to meet the views of Argentina, Chile
and Italy (C.3/11, Items 16, 17, 18, 19, 20 and 21).
18. In paragraph 4 the definition of a customs union, which was contained
1n the second sentence of paragraph 4 of the Geneva draft, has been amended
and a definition of a free-trade area has been added. This describes a
free-trade area as a group of two or more customs territories within which
tariffs, etc. (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 or at least on substantially all the
trade in products originating in such territories.
19. A new paragraph (No. 5) has been added to cover the problems which will
arise in cases where there were preferential rates of duty in force, either
between two of the countries entering the customs union or free-trade area,
or between one such country and a country remaining outside.
/20. The proposal E/CONF..2/C .2&3/A/14
Page 4
20. The proposal, by Iraq (C.3/11, Item 22) to add a new paragraph regarding
economic relations between Members of the Arab League was not accepted; it
was felt that the revised texts of Articles 15 and 42 covered the point
raised by the amendment. These texts are also thought to cover to large
extent a proposal by Argentina (C.3/11, Item 12).
21. The proposed text of Article 42B showing, by means of square brackets
and underlinings, the changes from the Geneva draft appears in the Annex.
to this Report.
Article 16 - General Most-Favoured-Nation Treatment
Consideration of the amendments relating to tariff preferences has led
the Working Party to recommend the following changes in Article16:
22. Paragraph 1: The Working Party did not consider the proposal of the
delegation of Chile to add the words "with the exception of the arrangements
contemplated in Article 15" at the end of paragraph 1. This proposal is
left for the Sub-Committee to consider, and the delegates of Syria and
Venezuela, indicated their desire to put their views to the Sub-Committee on
this matter.
23. Paragraph 2: Preamble - Change the word "levels" to margins".
Sub-paragraph (b) - Amend the last line to read: "....Annexes B, C,
D and [...] E of this Charter......"
Sub-paragraph (e) - (changed from (d) because of insertion of new
sub-paragraph by Committee III on recommendation of Sub-Committee A - Amend
the last line to read: "....Annexes [E, F and ...] F, G, H and I of this
Charter."
24. Annexes Pertaining to Article 16
Annex A
At the meeting of Committee III on 18 February, the delegate for
Pakistan drew attention to the inclusion of "India" in the list of territories
in Annex A; he suggested that the phrase in parentheses, "as at 10 April 1947",
should be deleted and that the name "Pakistan' should be inserted in
alphabetical order. This change was approved in principle but was referred
to the Joint Sub-Committee to examine in detail and in relation to paragrah 3
of.Article 16. The delegation of Pakistan subsequently submitted 4 proposal
with the concurrence of the delegotions of India and the United Kingdom, and
this is now approved by the Working Party, that there should be no change it
the list of countries in Annex A and that the following note should be added
to the text of the Annex:
"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."
/Annex B E/CONF.2/C. 2&3/A/14 Page 5
Annex B
At the request of the French delegation, the Working Party recommends
that the footnote to.Annex B be emended to read: "For imports into
Metropolian Frane and territories of the French Union." (See
E/CONF.2/C.3/Add.7). The Delegate for France explained that the exports
of the territories to which the note applies enjoy preferential treatment
other overseas territories as well as on importation into Metropolitan
France, and this had been overlooked when the Annex was submitted for the
Geneva draft.
Annex E
Insert the new Annex for Portugal (C.3/6/Corr 4).
Annex F
(Formerly Annex E) Alter "2 (d)" in the title to "2 (e)".
Annex G
(Formerly Annex F). Alter "2 (d)" in the title to "2 (e)"
Insert the new Annex for Colombia (C.3/6, Item 14).
Annex I
Insert the new Annex for the Republics of Central America (in view of
the revised texts of Articles 15 and 42 and of the addition of this Annex,
the delegation of El Salvador withdrew its original amendment to Article 16,
(C.3/6, Item 12)).
25. Proposals by Dominican Repubic and Haiti
The Working Party discussed with the delegates of the Domincan Republic
and Haiti their proposals on paragraph 2 (c) of Article 16 requesting the
extension of the preferences in force between the United States and Cuba to
other countries of the Caribbean area (C.3/6, Items 9 and 10). Duirng
discussion the delegates for these two countries put forward the following
alternative proposal:
"That under Article 16 of the Charter the Dominican Republic
and Haiti, or one or other of them, on the one hand, and the
United States of America on the other be permitted to grant
reciprocal preferences similar in nature and duration to those
now in force between the United States and Cuba, dealt with in
paragraph 2 (c) of Article 16. "
This alternative was proposed "on condition that the delegation of the
United States to this Conference gives assurances that the United States
will negotiate the appropriate areements when either of the other two
countries so requests."
26. The delegate for the United States stated that there was no possibility
of his Government accepting these conditions, and therefore the Working Party
/was unable E/CONF.2/C. 2&3/A/14 Page 6
was unable to make any recommendations it this connection.
Proposal, of Delegation of Peru
27. The proposal of the delegation of Peru (C.3 /6, Item 8) to delete
sub-paragraph (c) was not discussed by the Working Party.
Other Proposals on Article16
28 . Ty he Working Party took note of the amelandmennts proposed by the deagations
of Ecuador, Bolivia, Lebanon and Syria, Turky, Egypt, Afghanistan, Burma,
Argentina and Czechoelovakia (respectively, C.3/6, Items 15,16,17, 18, 19,
20, 21, 23 and C.3/5/Add.1), and whilst unable to accept them, felt that
their substance was covered, in whole or in part, by the revised text of
Article l5. The delegation of Turkey (not a Member of the Working Party)
requested that its reservation be recorded, pending discussion in the Sub-
Committee.
Free Territory of Trieste
29. The proposal of the delegation of Italy (C.3/6, Item 22), requesting
exemption from the most-favoured-nation clause for a special regime between
Italy and the Free Territory of Trieste, wes subsequently altered to refer
only to advantages accorded to trade with Trieste by contiguous counties.
The Working Party decided it could accept this modified proposal on condition
that trade advantages thus accorded were not contrary to the terms of the
Italian Peace Treaty. Accordingly It is recommended thet the following be
inserted in Article 42 A:
"The provisions of Chapter IV shall mot require the generalization
to any Member of 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,"
30. If this recommendation is accepted by the Sub-Committee, it may be
desirable to re-consider the title of the Article.
3:. The delegation of Czechoslovakia (not a Member of the Working Party)
requested that its reservation be recorded.
San Marino and Vatican City
32. The Working Party discussed with the delegate for Italy the proposal
(C.3/6, Item 22) to exempt the special regime existing between the Republic
of Italy and the Republic of San Marino and the State of the Vatican City
from the provisions of paragraphs 1 of Article 16. The Worklng Party was of
the opinion that the special arrangements existing between Italy and these
two territories were not contrary to the Charter and offered to record this
opinion in its report to the Sub-Committee. The delegate for Itaily withdrew
his proposal on the understanding that this opinion would be included in the
/Report to E/CONF .2/C.2&3 /A/14
Page 7
Report to Committee III.
India and Pakistan
33. The Working Party was informed of the opinion of Sub-Committee I of
Committee VI that the Charter should take account of the exceptional
circumstances arising out of the establishment of India and Pakistan as
independent states and should not prevent these two countries from entering
into special arrangements with respect to the trade between them pending
the establishment of their mutual trade relations on a definitive basis;
Sub-Committee I had come to the conclusion that the Charter should include
provisions similar to those incorporated in the General Agreement on
's and Trade in paragraph 5 of Article XXIV and in the Interpretative
Note to that paragraph.
34. The Working Party considered whether these provisions would be
inserted most appropriately in Chapter IV, possibly in Article 42, but,
on the understanding that special arrangements might be required by
India and Pakistan on important matters such as investments, commodity
agreements and other matters outside the scope of Chapter IV, decided
that. it was not competent to judge on questions other than preferential
trade arrangements and therefore the decision on the inclusion of the
proposed provisions in the Charter would have to be taken by Committee VI.
/ANNEX E/CONF.2/C.2&3/A/l4
Page 8
ANNEX
Article 42
Territorial Application of Chapter IV
l. The rights and obligations arising under this Chapter shall be
deemed to be in force between each and every customs territory [which is
a separate customs territory and] in respect of which this Charter has
been accepted by a Member in accordance with Article 99.
2. For the purposes of this [Article] Chapter 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]
substantially all the trade 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 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.
2. The provisions of this Chapter shall not therefore be construed
to prevent [: (a)......; or (b)] the formation of a customs union or the
establishment of a free-trade area or the adoption of an interim agreement
necessary for the [attainment] formation of a customs union or a free-trade
area;* Provided, that:
(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 [by, or any margins of
* The Working Party reserved for examination by the Sub-Committee the
question whether the provisions of paragraph 2 should or should not
apply to customs unions and free-trade areas of which one or more
parties are not Members.
/preference E/CONF.2/C.2&3/A/14
Page 9
preference maintained by,] 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 [stringent]
restrictive than the [average level] general incidence of the duties
and regulations of commerce [or margins of preference] applicable
in the constituent territories prior to the formation of such union
or the adoption of such interim agreement, as the case may be;
(bi) 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 [provided further]
(c) any [such] interim agreement referred to in sub-paragraphs
(a) and (b) above shall include a [definite] 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.
(a) Any Member [proposing] deciding to enter into a customs union
or a free-trade area, or an interim agreement leading to the
form tion of such a union or free-trade area, shall [consult with]
promptly notify the Organizatson and shall make available to it
such information 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) [No Member shall institute or maintain any interim agreement
under the provisions of paragraph 2 (b) of this Article] If,
after [a study of the plan and schedule prosed in such agreement]
having studied the plans and schedules provided for in an interim
agreement under paragraph 2, in consultation with the parties to
that agreement and giving due account to the information made
available in accordance with the terms of sub-paragraph (a), the
Organization finds that such agreement is not likely to result in
[such] a customs union or in the establishment of a free-trade area
within [a reasonable length of time.] the period contemplated by
the parties to the agreement or that such-period is not a reasonable
/one, the E/CONF. 2/C, 2&3/A/14
Page 10
one, the Organization shall take recommendations to the parties to
the agreement. If the parties are not prepared to f the
agreement in accordance with such recommendations they shall not
maintain it in force or institute such agreement if it was not yet
been concluded.
(c) Any substantial change in the plan or schedule shall [not
be substantially altered without consultation wth] be notified
to the Orgnization 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 purposes 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) [a11] tariffs and other restrictive regulations of
commerce (except, were necessary, those permitted under
Section B of Chapter IV and under Article 43) [as
between the territories of members of the union are
substantially eliminated] are eliminated on substantially
all the trade between the conetituent territories of
the union or at least substantially all the trade in
products originating in such territories and
(iii ) 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 IV 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 procedurs of negotiations with affected Members Shall in
particular apply to the elimination of preferences required to conform
with the provisions of sub-paragraphs (a) (i) and (b) of paragraph 4.
/INTERPRETATIVE NOTE /A/34
Page 11
INTERPRETATIVE NOTE
Paragrah 5.
It is understood that the provisions of Article 16 would requirs
that, when a product which been imported into territory of a
member of a customs union or free-trade area at a preferential rate of
duty and is reexported to the territory of another member of such union
or area, the latter member should impose a duty equal to the difference
between the duty already paid and the most-favoured-nation rate. E/CONF.2/C.2&3/A/14
Page 12
NEW ANNEXES TO ARTICLE 16
ANNEX E
LIST OF PORTUGUESE TERRITORIES REFERRED TO
IN PARAGRAPH 2 (b) OF ARTICLE 16
Portugal and the Archipelagoes of Madeira
Archipelago of Cape Verte
Guinea
St. Tome and Principe and Dependencies
S. Jeao Batista de Ajuda
Cabinda
and the Azores
Angola
Mozambique
State of India and Dependencies
Macao and Dependencies
Timor and Dependencies
ANNEX H
LIST OF TERRIITORIES COVERED BY PREFERENTIAL ARRANGEMENTS
AMONG COLOMBIA, ECUADOR AND VENEZUELA
REFERED TO IN PARAGRAPH 2 (e) OF ARTICLE 16
Preferences in force exclusively between two or more of the following
countries:
Colombia
Ecuador
Venezuela
ANNEX I
LIST OF TERRITORIES COVERED BY PREFERENTIAL ARRANGEMENTS
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 E/CONF.2/C. 2&3/A/14
Page 13
El Salvador
Guatemal
Honduras
Nicaragua |
GATT Library | pg264bq4490 | Report of Working Party | United Nations Conference on Trade and Employment, February 9, 1948 | Third Committee: Commercial Policy and Sub-Committee H (Section C) | 09/02/1948 | official documents | E/CONF.2/C.3/H/6 and E/CONF.2/C.3/E-J | https://exhibits.stanford.edu/gatt/catalog/pg264bq4490 | pg264bq4490_90190406.xml | GATT_147 | 3,400 | 21,424 | United Nations Nations Unies
CONFERENCE CONFERENCE RESTRICTED E/CONF.2/C.3/H/6
ON DU 9 February 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIR ITTEE 1HMMED COWDflEMM: CO*RCIAL POLICY
'SUB-COI4I rE
SESIDIESCTION C - SUB
KBPORT OF WOOIG PARTY
1. The Working Party was set up at the Fifth -Meeting of Sub-Committee."H"
to examine proposed amendments to Articles 26 to 29.
2. The Working Party submits the text shown in the Annex for consideration
by the Sub-Committee.
3. The Working Party aAconsideredn inquiry from the Central Drafting
Committee as to where it was desired that references in Section C to
primary commodities should be covered by the definition of a "primary
commodity" contained in Article 53. It was agreed that the definition
contained in paragraph 1 of Article 53 was applicable to all such
references.
4. The following notes indicate the manner in which the Working Party
has dealt with the proposed amendments and the main changes recommended
in the text:
Article 26
Paragraph 1
The Working Party was unable to accept the proposal of the
United States delegation to except subsidies on primary commodities from
the provisions of paragraph 1, and the consequential changes proposed
in regard to other Articles. The United States delegation, however,
submitted alternative suggestions to which reference is made in the notes
on Articles 27 arid. 28 below.
Paragraph 2
(a) Drafting changes proposed by the United States delegation have
been accepted with slight modification.
(b) It was understood that the term "lik'e products' is intended to
mean closely similar products in the corresponding stage of
production, allowing for such differences as are necessary for
export purposes.
Paragraph 3
(a) The Working Party was unabl e to acceptthe proposal bythe
/delegation E/CONF.2/C. 3/H/6
Page 2
delegation of Argentina to delete the time-limit provisions in this
paragraph.
(b) The Working Party agreed to certain drafting changes proposed
by the delegation of the Netherlands.
Proposed New Paragraph
The Working Party considered the proposal by the delegation of
Venezuela to insert a new paragraph designed to except certain types of
subsidy from the provisions of paragraph 1 of Article 26. It was felt
that the subsidies in question, i.e. whose effect on world trade in the
commodity is of minor significance, would be largely covered by the
proposed new texts of paragraphs 3 and 5 of Article 27, and of
sub-paragraphs 4 (b) end 4 (c) of Article 28. In particular it was
understood that the phrase ''if no agreement is appropriate" in the
proposed text of paragraph 5 of Article 27 meant that if Chapter VI
procedure was inappropriate (including cases judged to be inappropriate
by the Organization under Article 55, paragraph 2), a Member could grant
or maintain an export subsidy without being bound to seek an inter-
governmental agreement on the commodity in question. Moreover, in cases
where negotiations did take place toward an inter-governmental agreement,
a Member would be free (under paragraph 3 of Article 27), pending the
outcome of such negotiations, to maintain export subsidies on the commodity
in question.
Article 27
NOTE: The Members of the Working Party agreed that Articles 27 and
28, as drafted, should be considered as a unit, and that acceptance
of the text of one Article was contingent upon acceptance of the other.
Paragraph 1
It was agreed to insert in sub-paragraph (a) the words ''or is so
designed as to result" after the words "has also resulted".It was felt
that this covered the substance of a similar amendment proposed by the
delegation of Venezuela.
A corresponding additional has been made in sub-paragraph (b).
Proposed New Paragraph 2e -:
The Working Party considered the new pa bratgraph proposedy he
delegation of the Netherlands relating to certain types of price
stabilization schemes. It was generally agreed that it would be sufficient
to in-Cocde in the Submmit tee's Report ae eoe to the effctthata system
forothoe st bi lizat no e ite,horer df omesturn toicomespof the rettdsic
producers of a primary commodity, indepen dently ofo tihemovement f mport
prices, which results, or is so designed as to result, inthe sale of the
commodity in the domestic market atsma p higher and at timesf rice at tie
oe E/CONF.2/C.3/H/6
Page 3
lower than the comparable landed cost for the imported product, should be
treated as a case under Article 25.
Paragraph 2.
Paragraph 2 is a new provision emphasizing the responsibility of Members
granting any form of subsidy on a primary commodity to co-operate in
negotiating inter-governmental agreements under Chapter VI.
Paragraph 3
(a) This paragraph takes the place of paragraph 2 in the Geneva text
of Article 27. The Working Party was unable to accept the proposal
by the delegations of Argentina and Peru to delete the paragraph.
(b) The paragraph has been redrafted to make it clear that, as
regard serious prejudice caused by the granting of a subsidy, the
paragraph applies to all types of subsidization of primary commodities.
(c) A new provision has been added to permit a Member to maintain a
subsidy pending the outcome of negotiations under Chapter VI.
Paragraph 4
Paragraph 4 is a new provision prohibiting a Member from granting a
new subsidy or increasing an existing subsidy, affecting the export of a
primary commodity, during a commodity conference dealing with the commodity
in question.. This provision serves to limit the above-mention new provision
contained in paragraph 3.
Paragraph 5
(a) This paragraph takes the place of paragraph 3 in the Geneva text of
Article 27. The Working Party was unable to accept the proposal by the
delegations of Argentina and Peru to delete the paragraph.
(b) On the basis of a suggestion by the United States representative,
the paragraph has been redrafted in order to permit Members, considering
themselves seriously prejudiced, to apply or maintain export subsidies
on primary commodities, without prior approval or "determinations" by
the Organization, where Chapter VI procedure has failed or does not
promise to succeed or where an inter-governmental agreement is not
appropriate. It is recognized that any judgment by a Member, that an
agreement is not "appropriate", could subsequently be challenged by any
other Member through the procedure of Chapter VI.
(c) The United Kingdom representative wished it to be recorded that
while he welcomed changes made in the United States delegation's original
revision of Articles 26 - 29, particularly in regard to the proposed
Article 28, some doubt was still felt by his delegation in regard to
Article 27, paragraph 5.
Article 28
In the light of the relaxation of the prvisions of Article 27, the
safeguards contained in Article 28 have been strengthened,In particular E/CONF.2/C .3/H/6
Page 4
provision has been made, where consultation fails, for the Organization to make
findings to which Members shall conform. Other changes which have been agreed
are as follows:
(a) The Article now refers not only to export subsidies but to any
form of subsidy operating directly or indirectly to increase or
maintain exports; its application, however, is now limited to primary
commodities.
(b) The concept of a "previous representative period' has been replaced
by that of "an equitable share of world trade". This is intended to meet
criticisms that the Article, as in the Geneva text, would tend to stabiliz
an existing trade situation to the detriment of under-developed countries.
It is thought that the new text will, in this respect cover the case of
these countries and go some way to meet the position of the delegation
of Argentina expressed in its proposal to delete the Article.
(c) Factors are specified which, amongst others, the Organization shall
take into consideration in reaching its findings on an "equitable share".
In regard to sub-paragraph (b) of Article 28 it is understood that the ter
"the economy" means the national economy as a whole, and would include the
balance of payments situation of the Members concerned. The
representative of Venezuela wished it recorded that the term should be
understood to cover any special aspects of the economic structure of a country.
It was felt that the new text, by it application of safeguards to
general subsidies affecting exports, partly met the point raised in the
amendment submitted by the delegation of Brazil (paragraph 2 of proposed
Article 27 A. See E/CONF.2/C.3/H/5). Regarding the other point raised by
the delegation of Brazil (paragraph 1 of proposed Article 27 A), which was
referred by Sub-Committee "H" .to Sub-Commiitte ."A" (on Articles16-19), the
Working Party has note the latter's decision, namely that a majority of the
Members of Sub-Committee "A" felt that it was unnecessary to insert the
amendment, whereas a minority supported the Brazilian proposal; at least
in principle (See E/CONF.2/C. 3/A/W.45.)
The delegate fo Peru was of the opinion that there was a difference of
treatment as between subsidies which operate directIy or indirectly to
maintain or increase the export of any primary commodity, and.subsidies
which operate directly or indirectly to reduce, or prevent an increase in,
the imports of any primary commodity. The former were subject to the provisions
of Article 28, while the latter were subject only to the much weaker provisions
of Article 25. He thought that the latter type of subsidy ought to be subject
also to provisions parallel to those of Article 28, because the interests
of exporting countries were prejudiced just as much by a subsidy which
/decreases E/CONF.2/C.3/H/6
Page 5
decreases imports in an importing country as by one which increases exports
from a competing exporting country. consequently he wished to reserve his
position on this Article.
Article 29.
The Working Party was unable to accept the proposal of the delegation of
Argentina to delete this Article, nor its alternative proposal to replace the
word "determination" by "recommendation".
Arrangement of Section C
The Working Party considered the suggestions of the International Chamber
of Commerce regarding the arrangement of the Section; but thought that the
present arrangement was appropriate. E/CONF.2/C.3/H/6
Page 6
ANNEX TEXT OF SEC TION 'C' - SUBSIDIES
(Note: in relation to the Geneva text, square brakets indicate proposed.
deletions and underlining proposed additions).
Article 25
Subsidies in General*
If any Member grants or maintains any subsidy, including any form of
income or price support, which operates directly or indirectly to maintain
or increase exports of any product from, or to reduce, or 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 the
territory of the Member and of the circumstances making the subsidization
necessary. In any ca?? in which [it is determined] a Member considers
that serious prejudice to [the] its interest [of any other Member] is caused
or threatened by any such subsidization, the Member granting the subsidy
shall, upon request, discuss with the other Member or Members concerned, or
with the Orgaization, the possibility of limiting the subsidization.
Article 26
Additional Provisions on Export Subsidies
1. No Member shall grant, directly or indirectly, any subsidy on the
export of any product, or establish or maintain any other system, which
subsidy or system results in the sale of such product for export at a
price lower than the comparable price charged for the like product to
buyers in the domestic market, due allowance being made for differences
in the conditions and terms of sale, for differences in taxation, and for
other differences affecting price comparability.
2. [Notwithstanding the provisions of paragraph 1 of this Article a
Heber may exempt] The exempticn of exported products from duties or
taxes imposed in respect of like products when consumed domestically, or
[may remit] the remission of such duties or taxes in amounts not in excess
of those which have accrued, ?, shall not be construed to be in conflict
with the provisions of paragraph 1 of this Article. The use of the
proceeds of such duties or taxes to make payments to domestic producers
[however,] shall be considered as a case under Article 25 [except in so
Article 25 was not referred to the Working Party, but is included
here for convenience of reference.
/far as such E/CONF.2/C.3/H/6
Page 7
far as such payments subsidize exportation, in the sense of paragraph 1 of
this Article, by more than the amount of the duties or taxes remitted or
not imposed, in which case the provisions of paragraph 1 of this Article
shall apply to such excess payments].
3. Members shall give affect to the provisions of paragraph 1 of this.
Article at the earliest practicable date, but [in any event] not later
than two years from the day on which this Charter enters into force. If
any Member considers itself unable to do so in respect of any particular
product or products, it shall, at least three months before the expiration
of such period, give notice in writing to the Organization, requesting a
specific oxtension of the period. Such notice shall be accompanied by a
full analysis of the system in question and the [effects] circumstances
justifying It. It shall then be determined whether the extension requested
should be made.
4. Notwithstanding the provisions of paragraph 1 of this Article, 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 adversely affected by such action, consult with that
Member or with the Organization 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
product for export at a price lower than the comparable price charged. for
the like product 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 it is deterrined:
(a) that the system has also resulted, or is so designed as
to result, in the sale of the product for export at a price higher
than the comparable price charged for the like product to buyers
in the domestic market, and
(b) that 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 E/CONF.2/C.3/H/6
Page 8
2. Any Member granting a subsidy affecting a primary. commodity shall
co-operate at all times in all efforts to negotiate agreements under the
procedures of Chapter VI.
[2. In any case of subsidization of a primary commodity, if a Member
considers that its interests are seriously prejudiced by the subsidy or if
the Member granting the subsidy considers itself unable to comply with the
provision of paragraph 3 of Article 26 within the time limit laid down
therein, the difficulty may be deemed to be a special difficulty under
Chapter VI, and in that event the procedure laid down in that Chapter
shall be followed.]
[2.]. 3. In any case involving a primary commodity, if a Member considers
that its interests would be seriously prejudiced by compliance with the
provisions of Article 26, or if a Member considers that its interests are
seriously prejudiced by the granting of any form of subsidy, the procedure
laid down in Chapter VI may be followed. Any Member which considers that
its interests are seriously prejudiced shall, however, be exempt
provisionally from the requirements of paragraphs 1 and 3 of Article 26,
subject to the procedure of Article 28, in respect of that commdity.
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.
[3.] 5. If the measures provided for in Chapter VI have not succeeded, or
do not promise to succeed, within a reasonable period of time, [either
because] or if no agreement [has been reached or because the agreement]
is [terminated, any Member adversely effected may apply for exemption]
appropriate, any Member which considers itself seriously prejudiced shall
be exempt from the requirements of paragraphs 1 and 3 of Article 26 in
respect of that commodity [. If it is determined that the circumtances
described in Article 59 apply to the commodity concerned and that the
subsidization will not be so operated as to stimulate exports unduly or
otherwise seriously prejudice the interests of other Members, the
Organization shall grant such exemption for such period and within such
limits as may be determined.] subject to the provisions of Article 28.
Article 28
Undertaking Regarding Stimulation of Exports of Primary Commodities
[Notwithstanding the provisions of paragraphs 1, 2 and 3 of Article 26
and of paragraph 3 of Article 27, no Member shall grant any subsidy on the
exportation of any product which has the effect of acquiring for that
Member a share of world trade in that product in excess of the share whioh
/it had E/CONF. 2/C .3 /H/6
Page 9
it had during a previous representative period, accqunt being taken insofar
as practicable of any special factors which may have affected or may be
affecting the trade in that product. 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 granting
the subsidy; Provided that such Member shall, upon the request of any other
Member having an important interest in the trade in that product, or upon
the request of the Organization, consult promptly with the other Member or
with the Organization regarding the need for an adjustment of the base
period selected or for the re-appraisal of the special factors involved.]
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. 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 Members shall promptly consult with any other Members which consider
themselves likely to be materially affected by the subsidization.
3. If, within a reasonable period of time no agreement is reached in such
consultation the Organization shall make a finding as to what constitutes
an equitable share and the Member granting the subsidy shall conform to
this finding.
4. In making its finding, the Organization shall take into account any
factors which may have affected, or may be affecting world trade in that
primary commodity and shall have particular regard to:
(a) The Member's share of world trade in the commodity in a previous
representative period;
(b) the degree of importance of the external trade in the commodity
to the econmy of the Member granting, and to the economies of the
Members materially affected by, the subsidy;
(c) whether the share of world trade in the commodity of the country
granting the subsidy is so small that. the effect of the subsidy on
such trade is likely to be of minor significance;
(d) the existence of price stabilization systems in accordance with
paragraph 1 of Article 27;
(e) the desirability of limiting measures which would make difficult
the gradual expansion of production for export in those areas able to E/CONF.2/C.3/H/6
Page 10
satisfy world market requirements of the commodity concerned in the
most effective and economic manner.
Article 29
Procedure
Any determination provided for in, or appropriate to the operation
of, this Section shall be made through the Organization by consultation
and agreement among the Members substantially interested in the product
concerned. |
GATT Library | bw366sh9233 | Report of Working Party 1 (Article 16, Annex A | United Nations Conference on Trade and Employment, January 21, 1948 | Third Committee: Commercial Policy and Third Committee: Commercial Policy Sub-Committee A (Articles 16, 17, 18, 19) | 21/01/1948 | official documents | E/CONF.2/C.3/A/W.36 and E/CONF.2/C.3/A/W.1-39 | https://exhibits.stanford.edu/gatt/catalog/bw366sh9233 | bw366sh9233_90190462.xml | GATT_147 | 417 | 2,858 | United Nations Nations Unies
CONFERENCE CONFERENCE RESTRICTED
ON DU E/CONF.2/C.3/A/W.36
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOl 21 January 1948
ORIGlNAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE A (ARTICLES 16, 17, l8, 19)
REPORT OF WORKING PARTY 1 (ARTICLE 16, ANNEX A)
The Working Party, consisting of the delegates of Australia, Denmark,
Netherlands, New Zealand, United Kingdom, United States and Uruguay, having
examined the Danish proposal to amend Annex A, pertaining to paragraph 2 (a)
of Article 16, (Item 5, E/CONF.2/C.3/6), recommends amending Annex A and
paragraph 5 (b) of Article 23 as follows:
1. Delete paragraph 2 of the note to Annex A. (Internal tax preferences
are now dealt with in Article 16.)
2. Amend paragraph 3 of the note to Annex A as follows:
"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 pork, and bacon [[and
hame]. It is the intention, without prejudice to any action taken
under sub-paragraph (h) of Part 1 of Article 43, 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.]
Without prejudice to any action taken under sub-paragraph (h) of
Part 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
arrangements or their replacement by tariff references. If after
such negotiations have taken place a tariff reference is created or
an exists tariff Preference is increased it shall not be considered
to contravene Article 16 or Article 17".
Amend paragraph 5 (b) of Article 23 as follows:
"5. The provisions of this Section shall not preclude:
(b) restrictions under the preferential arrangements provided
for in Annex A of this Charter, [subject to the conditions set
/forth E/CONF.2/C. 3/A/W.36
Page 2
forth therein] pending the outcome of the negotiations
referred to therein."
The Working Party suggests that the Central Drafting Committee determine
whether the substance of sub-paragraph 5 (b) of Article 23, relating solely
to quantitative restrictions under preferential arrangements, might be more
suitably located elsewhere in the Charter than in Article 23 which relates
primarily to restrictions to safeguard the balance of payments. |
GATT Library | fb474fg5220 | Report of Working Party 1 concerning the Chllean Amendment to proposed paragraph 9 of Article 32 | United Nations Conference on Trade and Employment, February 3, 1948 | Third Committee: Commercial Policy | 03/02/1948 | official documents | E/CONF.2/C.3/41 and E/CONF.2/C.3/38-57 | https://exhibits.stanford.edu/gatt/catalog/fb474fg5220 | fb474fg5220_90190138.xml | GATT_147 | 259 | 1,870 | United Nations Nations Unies UNRESTRICTED
CONFERNCE CONFERENCE E/CONF. 2/C.3/41
ON DU 3 February 1948
TRADE AND EMPLOYMENT COMMERCE. ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMRCIAL POLICY
REPORT OF WORKING PARTY 1 CONCERNlNG THE CHlLEAN AMENDMENT
TO PROPOSED PARAGRAPH 9 OF AERTICLE 32
In its thirtieth meeting on 31 January 1948, Committee III established
Working Party No. 1 consisting of the representatives of Afghanistan,
Australia, Bolivia, Chile, China, Netherlands, United Kingdom and the United
States to consider the advisability of adding an Interpretative Note to
paragraph 9 of Article 32 or altering the text of the Article to take account
of the proposal of the delegation of Chile concerning special facilities
regarding transit which might be granted to land-locked countries by a
neighbouring country.
In its meeting on 2 February, the Working Party elected Mr. C. E. MORTON
(Australia) as its Chairman.
After a thorough discussion the Working Party agreed unanimously to
recommend So Committee III that an Interpretative Note should be appended to
paragraph 9 of Article 32 in the following terms:
"Paragraph 9
If as a result of negotiations for special facilities carried out
in accordance with paragraph 9 with a country which has no direct
access to the sea, a Member grants more ample facilities than those
already provided for in other paragraphs of this Article, such special
facilities may be limited to the land-locked country concerned unless
the Organization finds, on the complaint of any other Member. that the
withholding of the special facilities from the complaining Member
contravenes the most-favoured-nation provisions of the Charter." |
GATT Library | hg371bk4894 | Report of Working Party 2 (Article 17) | United Nations Conference on Trade and Employment, January 21, 1948 | Third Committee: Commercial Policy and Sub-Committee A (Articles 16, 17, 18, 19) | 21/01/1948 | official documents | E/CONF.2/C.3/A/W.37 and E/CONF.2/C.3/A/W.1-39 | https://exhibits.stanford.edu/gatt/catalog/hg371bk4894 | hg371bk4894_90190463.xml | GATT_147 | 1,822 | 11,865 | United Nations Nations Unies RESTRICTED E/CONF.2/C.3/A/W.37
CONFERENCE CONFERENCE 21 January 1948
ON DU ORIGINAL: ENGLISH LS
TRAE AMDEMPREN M M COMMECE ET DE L'EPLOI IL S
TRRDCOMMI~TE: COWWCPLICY
STMaNDfl=E ART7,18 ANDndn 19)
ORTR OF ORWKIGN ARPYU= 2(ATIRCLE 17)
Working Party 2, consisting of the delegates of Australia, France,
Mexico, Peru and the United States, having consulted with a number of the
othe rMembers of the Sub-Committee, reports as follows:
. REVISEDWMEXT IFFA.TICLCE 17 -
REDCUIOT OF TARIFFS AND ELIMINATION 0 OF RPFEEENCESR
1. "Each Member shall, upon the request of [the Organizatio,] nany
other Member or Members, and subject to procedural arrangemnNaS
established by the Organization, enter into and carry out with such
other Member or Members [as the organization may speciy,uf
negotiatio sdiretced 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
fo Article 1,6 on a reciprocal and mutually advantageous basis
[These negotiations shall proceed in accordance with the following
rules ]:
"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,
rpdocu- by-product, basis whcih ll afford an 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 present level, or undertake not to raise it above a
specified higher level.
e(b) No Mmber shell be required to grant unilateral
concessions, or to grant concessions to other Members without
greceivn adequate Concessions in return. Account shall be
taken of the value to any Member iof obtaning in its own
fight and E/CONF.2/C.3/A/W.37
Page 2
right and by direct obligation the indirect concessions which
it would otherwise enjoy only by virtue of Article 16.
?a (c) In the negotiations relating to any specific product
(i) when a reduction is negotiated only in the most-favoured-
nation rate, such reduction shall operate automatically
to reduce or eliminate 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 gareed 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.
bL (d) The binding against incoease .f low;[ta iffs][duties or of
[tariff] duty-free treatment shall in principle be recognized as
a concession equivalent in value to the substantial reduction of
high [tariff] duties or the elimination of tariff preferences.
[c Account shall be taken of any concession which either Member
is already extending to the other Member by virtue of previous
negotiations regarding tariffs and preferences pursuant to this
Article.]
(e) Prior international obligations shall not be permitted to
stand in the way of negotiations 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.*
[d The results of such negotiations shall be incorporated in
the General Agreement on Tariffs and Trade, signed at..........
on..............1948 by agreement with the parties to that
Agreement, and thereupon the parties to such negotiations shall
become contracting parties to the General Agree??? on Tariffs
and Trade if they are not so already.]
* The Working Party has been informed that the United Kingdom delegation
wishes to reserve its position on sub-paragraph 2 (e).
/"3. The E/CONF. 2/C.3/A/W.37
Page 3
"3. The negotiations leading to the General Agreement on Tariffs
and Trade, concluded at Geneva on 30 October 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) of this Article.*
?2 "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 its economic position and the
provisions of the Charter as a whole,] having regard to all relevant
circumstances, including the developmental and other needs and the
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 [requirements]
provisions of paragraphs 1 and 2 of this Article, the Organization
may [determine that any] waive the requirements of Article 16 to the
extent necessary to permit the complaining Member or Members [shall,
notwithstanding the provisions of Article 16, be entitled] 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 trads 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 [is taken, to withdraw] becomes
effective, to give written notice of withdrawal from the Organization.
The withdrawal shall take effect upon the expiration of sixty days
from the [date] day on which [written] such notice [of such withdrawal]
is received by the Organization."
II. INTERPRETATIVE NOTE TO
SUB-PARAGRAPH 2 (d) TO BE INCLUDED IN CHARTER
"In the event of the devaluation of a Member's currency, or of
* Cf. Part IV of Report.
/a rise in E/CONF.2/C.3/A/W.37
Page 4
a rise in prices, the effecet of such devaluation or rise in prices
would be a matter for consideration during negotiations in order to
determin, first the change in the protective incidene of the
specific duties, if any, of the Member concerned and, secondly,
whether the binding of such specific duties represents in fact
a concassion aquivalent in value to the subtantial reuction of
high duties or the elimination of tariff preferences."
III. EXPLANATORY PARAGRAPHS TO BE INCLUDED
IN THE SUB-COMMITTEE'S REPORT TO COMMITTEE III
"Consideration was given to the criteria which should be taken
into account by the Organization in determining whether a Member had
failed to fulfil its obligations under Article 17. The conclusion
was reached that it would be impracticable and unwise to attempt to
set out in the Charter itself detailed descriptions of all the specifi
criteria necessary to cover all possible future situations.
Accordingly, it was agreed that the Organization should be instructed,
broadly, to have regard to `all relevant circumstances'.
"The specific language recommended by the Sub-Committee is `all
relevant circumstances, including the developmental and other needs
and the fiscal structures of the Member countriesn concerned and the
provisions of the Charter as a whole.' It was not felt necessary to
refer specifically to the balance of reciprocal concessions offered
by the countries concerned, and the probable effect r value of these
concessions, since it was obvious that these elements would comprise
the very foundation of any case before the Organization, which would
inevitably take them into account. With regard to the suggestion
that language should be included recognizing the need of countries
to maintain reasonable tariff protection, it was felt that (a) in
general it is implicit in Article 17 that reasonable tariff protection
is consistent with the principles of the Charter, and (b) the needs
of under-developed countries in this respect are recognized in
paragraph 1 of Article 13 and woud be given further specific
recognition by the inclusinon of the reference to'developmental
needs' in Article 17. This mens that the Organization in assessing
the total value of the concessions which Member may be willing
to grant to another Member, shall take into account the needs resulting
from the different general conditions prevailing in different Member
countries with respect to their ability to maintain or develop their
industries.
/""It was understood E/CONF.2/C.3/A/W.37
Page 5
"It was understood that the term 'developmental and other needs'
would cover, inter alia, a Member's need for reconstruction."
IV. RELATION OF GENERAL AGREEMENT
ON TARIFFS AND TRADE TO THE CHARTER
As regards any difficulties which might arise from a possible
conflict between the provisions of the Charter and the general
provisions of the General Agreement on Tariffs and Trade, the
Working Party is of the opinion that the best method of eliminating
such difficulties would be for the Governments signing the Final Act
adopted at the conclusion of the Second Session of the Preparatory
Committee of the United Nations Conference on Trade and Employment
to hold a meeting before the signing of the Final Act of the Havana
Conference in order to agree with respect to the supersession of the
general provisions of the General Agreement by the corresponding
provisions of the Charter. Members of the Conference would then
be in a position to know the provisions of the final text of the
General Agreement on Tariffs and Trade, referred to in paragraph 3
of the revised text of Article 17, prior to signing the Final Act
in Havana. The desirability of amending the unanimity requirement
with respect to agreement on the terms of accession to the General
Agreement might also be considered at such a meeting.
V. JOINT WORKING PARTY OF SUB-COMMITTEE A
AND THE SUB-COMMITTEE ON ARTICLE 81
The Working Party, not having discussed paragraph 3 of Article 17,
recommends that a Joint Working Party of Sub-Committee A of
Committee III and of the Sub-Committee of Committee VI on Article 81
be established with the following membership and terms of reference:
Membership
Sub-Committee A of Committee III should be represented by
the members of the Working Party 2 (Article 17), i.e., Australia,
France, Mexico, Peru and the United States. The Chairman of
the Sub-Committee on Article 81 should be requested to name five
members.
Terms of Reference
To consider, in the light of previous discussions in
Sub-Committee A of Committee III and in the Sub-Committee of
Committee VI on Article 81, what organizational machinery would
be required to implement the provisions of Article 17. |
GATT Library | mk382xx7319 | Report of Working Party 3 of Sub-Committee G | United Nations Conference on Trade and Employment, January 30, 1948 | Sixth Committee: Organization | 30/01/1948 | official documents | E/CONF.2/C.6/W.80 and E/CONF. 2/C. 6/W/41-80 | https://exhibits.stanford.edu/gatt/catalog/mk382xx7319 | mk382xx7319_90200202.xml | GATT_147 | 943 | 5,988 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/W.80
ON DU 30 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
REPORT OF WORKING PARTY 3 OF SUB-COMMITTEE G.
The following text for Articles 89 and 90 of Chapter VIII is submitted
by the Working Party. The discussion of Article 90 led to necessary
consequential changes in Article 89, which were considered within the terms
of reference of the Working Party. It was not considered helpful to prepare
a text showing deletions from or additions to the Geneva text.
CHAPTER VIII - SETTLEMENT OF DIFFERENCES - INTERPRETATION
ARTICLE 89 - Consultation and Arbitration
1. If any Member considers that any benefit accruing o it directly or
indirectly, implicitly or explicitly, under any of the provisions of this-
Charter other than Article 1, is being nullified or impaired as a ressult of
(a) a breach by a Member of an obligation under this Charter by action
or failure to act; or .
(b) the application by a Member of a measure not conflicting with the
provisions of this Charter; or
(c) the existence of any other situation,
the member may, with a view to the satisfactory adjustment of the matter, make
written representations or proposals to such other Member or Memers as it
consider to be concerned, and the Members receiving them shall give
sympathetic consideration thereto,
2. The Members concerned may submit any question arising under paragraph 1
to arbitration upon terms to be agreed between them: provided that the
decision of the arbitrator shall not be binding for any purpose upon the
Organization or upon any Members other than those participating in the -
arbitration.
3. The Members concerned shall keep the Organization informed at all stages
of the process of any consultation or arbitration under this Charter.
ARTICLE 90 - Reference to the Executive Board
1. Any question arising under Article 89 (1) which is not satisfactorily
settled. and any question which arises under Article 89 (1) (c) may.be referred
by any Member concerned to the Executive Board.
2. The Executive Board shall promptly investi-ate the question and shall
decide whether any nullification or Impairment in fact exist within the terms
of Article 89 (1). It shall them either
/(i) decide that E/CONF. 2/C.6/W.80
Page 2
(i) decide that the matter does not call for any action; or
(ii) recommend further consultation to the Members concerned; or
(iii) refer the matter to arbitration upon such terms as may be agreed
between the Executive Board and the Members concerned; or
(iv) in any case arising under Article 89 (1) (a) request the Member
concerned to take or discontinue such action as may be: nocessary
for the Member to conform to the provisions of the Charter; or
(v) in any case arising under Article 89 (1) (b) or (c), propose such
measures to Members as will best assist the Members concerned and
contribute to a general adjustment.
3. If the Executive Board considers that action under Article 90 (2) (iv)
is not likely to be effective in time to prevent serious injury, and that any
nullification or impairment found to exist under Article 89 (i) (a) is
sufficiently serious to justify such action, it may recommend the release of
a Member or Members from obligations or the grant of concessions to any other
Member :or Members under or pursuant to the Charter, to the extent and upon
such conditions as it considers appropriate and compensatory, having regard
to the benefit which has been nullified or impaired.
The Executive Board may, in the course of this investigation, consult
with such Members or intergovernmental organizations and upon- such matters
Within the scope of the Charter as it deems appropriate.
5. The Executive Board may bring any question, referred to it under this
Article, before the Conference at any time during its consideration of the
case
ARTICLE 90-A - Reference to the Conference
1. Any Member concerned may, within 30 days, ask for a review by the
Conference of any action or decision by the Executive-Board under paragraph 2
or 3 of Article 90 The Conference shall by resolution confirm, modify or
reserve such action or decision.
2. Where a question of nullification or impairment has been brought before
the Conference by thie Executive Board, the Conference shall follow the same
procedure as that set out in Article 90 (2) for the Exeçutive Board.
3. If the Conference considers that any nullification or impairment found,
to exist under Article 89 (1) (a) is sufficiently serious to justify such
action, it may authorize the release of a Member or Members from obligations
or the grant of concessions to any other Member or Members under or pursuant
to the Charter, to the extent and upon such conditions as it considers
appropriate and compensatory, having regard to the benefit which has been
nullfied or impaired. The Conference, when proposing measures arising under
Article: 90 (2) (v) or reviewing action by the Executive Board under that
sub-paragraph, may authorize a similar release of a Members or Members, to the
/extent and E/CONF. 2/C. 6/W. 80
Page 3
extent and upon such conditions as will achieve the objected set out in that
4. When any Member or Members suspend the performance of any obligation or
grant of any concession to another Member ln accordance with paragraph 2, the
latter Member shall then be free not later than 60 days ater such action is
taken, to give notice of its withdrawal from the Organization. Such
withdrawal shall become effective upon the expiration of 60 days from, the day
on which such notice is receive by the Director- General. |
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