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GATT Library | vw859cv0715 | Sixth Committee: Organization : Summary record of the Twentieth Meeting. Held at the Capital, Havana, Cuba, Monday, 5 January 1948, at 10.30 a.m | United Nations Conference on Trade and Employment, January 5, 1948 | 05/01/1948 | official documents | E/CONF.2/C.6/SR.20 and E/CONF.2/C.6/SR.18-32 | https://exhibits.stanford.edu/gatt/catalog/vw859cv0715 | vw859cv0715_90050102.xml | GATT_147 | 2,034 | 13,491 | United Nations Nations Unies
CONFERENCE E/CONF.2/C.6/SR.20
ON DU 5 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SIXTH COMMITTE: ORGANIZATION
SUMMARY RECORD OF THE TWENTIETH MEETING
Held at the Capitol, Havana, Cuba,
Monday, 5 January 1948, at 10.30 a.m.
Chairman: Mr. Erik COLBAN (Norway)
1. Discussion of Article 96
The CHAIRMAN asked the Committee to consider the proposed amendment of
the delegation of India to shorten the time limit within which the Conference
should convene a special session for the purpose of reviewing the provisions
of the Charter to five year rather than ten years as provided for in the
Geneva Draft. The International Chamber of Commerce had made a similar
suggestion.
Mr. KUMLIN (Sweden) had felt Article 96 was superfluous since the
Conference could at any time provide for revising the Charter.
Mr. SEIDENFADEN (Denmark) asked for an explanation as to why
Article 96 had been included in the Geneva Draft.
Mr. STINEBOWER (United States) agreed with the representative of Sweden
that Article 96 added nothing. The United States delegation attached no
great importance to Article 96 since the Conference would be free to
reconsider the Charter as a whole, or in part at any time.
Mr. AUGENTHALER (Czechoslovakia) agreed with the proposed Indian
amendment, providing for a review of the Charter after five years. It
seemed logical. that within five years changes might be necessary.
The proposed Indian amendment calling for a review after five years
was supported by Mr. FORTHOMME (Belgium), Mr. BAUF (Afghanistan),
Mr. KOJEVE (France), Mr. MORALES (Guatemala) and W. KING (China),
Mr. TANGE (Australia): preferred the text of the Charter as it stood.
He was opposed to a mandatory session after five years only, but was
agreeable to holding a special session, if necessary.
The CHAIRMAN asked for the views of the Comittee concerning the fixing
of a five or ten years. He found the following countries supported the
Indian proposal; amending the Geneva, Draft to read five years):
/Syria, Iraq, E/CONF.2/C.6/SR.20
Page 2
Syria, Iraq, Greece, Uruguay, Venezuela, Southern Rhodesia, Brazil, Chile
Egypt, Argentina and Mexico.
Mr. KARMARKAR (India) pointed out that because of abnormal postwar
economic conditions certain transitory factors had to be taken into account
which might be usefully reviewed when certain stability would be achieved.
Such a provision would have psychological effect on those who had to make
certain compomise at the Confererce to arrive at a final text of the
Charter. There were psychological advantages in a definite period of five
years within which there would be a review of the Charter.
Mr. FAWCETT (United Kingdom) was not convinced of the desirability of a
five year period. He stated that amendments could be introduced at any time
during regular sessions. The Charter did not preclude review before ten
years and provided for review of quantitative restrictions at a period before
five years had elapsed. He proposed that the Sub-Comittee considering
Article 95 should also consider Article 96.
Mr. HERBERT (Canada) wished to retain the period of ten years, provided
for in the Geneva Draft.
The CHAIRMAN found no delegate in favour of omitting Article 96.
Eighteen delegates were in favour of the Indian amendment, reducing the time
period to five years, three delegates were in favour of ten year period:
provided for in the Geneva Draft. The suggestion had been made that the
Sub-Committee, considering Article 95 also consider Article 96, and in
particular, the Indian amendment. He pointed out that the Sub-Committee would
have to be directed in their considerations by the clear tendency of the
Committee to the period of five years.
Mr. SEIDENFADEN (Denmark) was impressed by the remarks of the
representative of Australia concerning the additional expense which might be
incurred. He fished to suggest that the Sub-Committee considering Article 96
consider omitting the word "special" and submitting a mandatory recomendation
at the end of the five-year period on the necessity for a special season.
The CHAIRMAN referred the proposed amendments to the Sub-Committee on
Article 95.
Article 97
Adopted on first reading as drafted by the Preparatory Committee.
Article :98 .
The CHAIRMAN invited discussion on the Burmese amendment.
Mr. FORTHOMME (Belgium) felt the Burmese amendment to Article 98 was
closely connected with Article 68. To avoid raisins again issues arising
from that Article, he proposed to change the wording of Article 98 to read:
/"Instruments of E/CONF.2/C.6/SR.20
Page 3
"instruments of acceptance of this Charter shall be deposited with the
Secretary-General........"
It was agreed to put the Belgian redraft in brackets in the text
adopted on first reading.
Article 98 - paragaph 2
paragraph2
Amendments Concerning the Majority necessary for Charter to enter into Force
Mr. GARCIA SERRATO (Uruguay) considered that the number of twenty states
which might bring the Charter into force was not large enough. A two-third
majority should be required. In a spirit of conciliation he would accept
a simple majority.
Mr. AMADOR (Mexico) had advocates a simple majority of Members'
ratifications for the entry into force of the Charter, Any number less than
one-half would be selected on an arbitrary basis.
Mr. GARCIA SERMATO (Uruguay) agreed, to accept the majority provided for
in Article 110 of the United Nations Charter.
Mr. LORETO (Venezuela) accepted the Meican amendment providing for a
simple majority. He questioned the meaning of the French text as to whether
it meant members invited to the Havana Conference or Members present at
the Conference.
The CHAIRMAN read, the English text of the Mexican amendment, which he
Interpreted to mean a majority of at least half of the fifty-eigth delegates
attending the Havana Conference.
Mr. FAWCETT (United Kingdom) opposed the Mexican amendment and upheld
the text of the Geneva Draft calling for twenty states to accept the
Charter in order to bring it into force. He felt it was important to keep
the number low and the difference between twenty and twenty-nine was
artificial. Twenty-nine was no more universal than twenty; United Nations
Educational, Scientific and Cultural Organization and the Food and
Agriculture Orsanization had accepted the number of twenty.
Mr. AMADOR (Mexico) accepted the concept of majority suggested by
Mr. LORETO (Venezuela)
Mr. WOULHROUN (Luxembourg) felt that the Organization had more limited
objectives than the United Nations. He suggested that the Charter entered
into force when ratified by half of the signatories or else when the states
which had ratified it represented eighty per cent of the world international
trade.
Mr. KOJEVE (France) agreed with the representatives of Luxembourg. Twenty
members might represent eighty 'per cent of the world trade. He agreed with
the representative of the United Kingdom that a numerical majority is not all
important. The Conference might well consider the suggestions of the
representative of Luxembourg. /Mr. HOREOGA MORALES E/CONF. 2/C.6/SR.20
Page 4
Mr. NORIECA MORALES (Guatemala), while recognizing that two countries
might represent eighty percent of world trade, felt that the countries of
the world needed an Organization composer of the majority of trading nations
and therefore supported the Mexican proposal.
Discussion of Article 92
Mr. STINEBOWER (United States) upon a request by Mr. BLUSZTAJN (Poland),
explained that the purpose of his amendment to Article 99 was to ensure
certainty and order in the trade between the occupation areas and the rest
of the world. In view of the important substantive and legal problems
involved, the proposal should undergo careful examination by a sub-committee,
The principle of the main paragraph did not envisage the entry of those
areas into the Organization through the back door",as had been alleged in
connection with Article 68 with regard to Germany and Japan. Korea had not
been mentioned in the footnote because, in the opinion of the United States
and, other Allied Governments, Korea was a liberated territory which should
soon have an independent Government to act on its behalf.
After some discussion of the procedure to be followed by the sub-
committee with regard to the United States amendment, the CHAIRMAN said that
it was customary to represent an sub.committees interested, as welI as
objective Governments. The sub-committee would examine the proposal from a
technical point of view. With regard. to the suggestions by Mr. KING (China)
and Mr. AUGENTHALER (Czechoslovakia) concerning information to be supplied
by relevant organizations liko the Allied Control Council and the corresponding
authority for Japan, he pointed out that representatives of occupational powers
could supply the sub-committee with the desired information. He agreed with
Mr. KOJEVE (France) that the United States amendment should be examined
last in order to enable representatives to communicate with their Governments
on that important question.
He then appointed a sub-committee consisting of the representatives
of Belgium, Czechoslovakia, France, Mexico, United States, Uruguay, India,
Italy, Argentina and the United Kingdom (as sub-committee chairman).
Furthermore, the representatives of China, Poland, Australia and Denmark
would participate in the work on the United States amendment, and the
representative of Chile would participate in the discussion on his amendment.
The sub-committee's terms of reference included the examination of
Articles 95, 96, 98, 99 and 100; as well as all relevant amendments in the
annotated agenda (document E/CONF.2/C.6/12); and the amendments to
Articles 99 and 100 presented by the United States (document
E/CONF.2/C.6/12/Add.10) and the Chilean proposal to add a new Article 100.
/The CHAIRMAN, The CHAIRMAN, in reply to a remark by Mr. MACHADO (Cuba) regarding the
necessity of provision for the future admission of countries that were not
represented at the Havana conference or that might not be able to ratify
the Charter immediately, said that the Committee might see, in second
reading. whether Article 68, paragraph 2 did not cover the matter,
Mr. Mac LIAM (Ireland) suggested that the sub-committee should examine
first Article 98 in order to enable the sub-committee on Article 93 to complete
its work in the light of the former's findings.
Discussion of Article 1 (Purpose and Objectives)
Mr. AMADOR (Mexico) said that he had expected to prosent his amendment
to Article 1 after the first reading of all Charter provisions. His first
amendment was to add a second part to Article 1, paragraph 3: "To facilitate,
on equal condtions, the access to raw-materials which may constitute
surplusses for export in each country." His second amendment, to paragraph 4,
was to substitute for the words: "tariffs and other barriers", the
expression: "unnecessary barriers to trade.
Mr. KARMARKAR (India) expressed the hope that the sub-committee would
examine an amendment which his delegation might present to Article 1,
paragraph 2.
The CHAIRMAN explained, that Article 1 has been put on discussion
because Committee VI would not meet again for some time. He then appointed
the following countries, which bad presented amendments to the
sub-committee on Article 1: Argentina, Belgium (as Chairman), Ecuador,
Egypt, France, Italy, Norway, United Kingdom and Uruguay. The
representatives of Mexico and India would participate in the sub-committee's
work o their respective amendments. The Committee would have an opportunity
to discuss the sub-committee report later.
Mr. RIVERA (Colombia) reserved the right to present further amendments
to Article 1 in the light of the discussion on other Articles to which his
delegation had, also presented, amendments.
Mr. AUGENTHALER (Czechoslovakia), upon a remark by Mr. BLUSZTEJN (Poland),
suggested that the summary records of sub-committees might give an adequate
Picture of the discussion on the amendments.
Constitution of a Working Party to Study the Question of an Interim
Organization
The CHAIRMAN explained that he had discussed with the Committee Chairman
and the Secretariat the question or the Interim Organization which was to
prepare the first Conference of the Organization.
After some discussion of procedure, the Committee agreed to set up a
working party which would study whether in interim Commission should be
established to explore its functions, powers and duties and consider its
financial implications. The working party could contact the representatives
on various E/CONF. 2/C.6/R.20S
Page 6
The CHAIRMAN then appointed the following representatives to the
working group: Canada, France, Mexico,Netherlands, New Zealand, Pakistan
Peru, Phlippines, Turkey, United States, United Kingdom, Colombia, Iraq
El Salvador and Norway (Mr. COLBAN to be the Chairman).
In conclusion the CHAIRMAN announced that according to a General
Committee decision, the Chairman of the Sixth Committee would have to present
a report on the progress of its work by 10 January. |
|
GATT Library | yk340sm2744 | Sixth Committee: Organization : Summary record of the Twenty-Eighth Meeting. Held at the Capital, Havana, Cuba Friday 13 February 1948 at 3.00 p.m | United Nations Conference on Trade and Employment, February 13, 1948 | 13/02/1948 | official documents | E/CONF.2/C.6/SR.28 and E/CONF.2/C.6/SR.18-32 | https://exhibits.stanford.edu/gatt/catalog/yk340sm2744 | yk340sm2744_90050114.xml | GATT_147 | 1,587 | 10,286 | United Nations Nations Unies
CONFERENCE CONFERENCE UNRESTRICTED
ON DU E/CONF.2/C.6/SR.28 ORIGINAL : ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 13 February 1948
SIXTH COMMITTEE: ORGNIZATION
Held at the Capital, Havana, Cuba
Friday 13 February 1948 at 3.00 p.m.
Chairman: Mr. E. COLBAN (Norway)
CONTINUATION OF DISCUSSION OF THE INTERM REPORT OF THE SUB-COMMITTEE ON
ARTICLES 95, 96, 98, 99 and 100 (documents E/CONF.2/C.6/48/Rev.1 and
E/CONF .2/C .6/12/Add.21)
Article 100 - Deposit or Texte and Date. (continuation of discussion)
Mr.KELLOGG(United States of America) said that in the light of
the very clear and convincing statement made at the previous meeting by
the representative of Mexico, and, in the hope that such a move would.
make the draft Charter more acceptable and. more workable, the delegation
of the United States of America was prepared to accept the amendment to
Article 100 proposed by the delegation of Marico.
Mr. MARTEN (United Kingdom), referring to the statement made at the
previous meeting by the representative of Mexico, said. his delegation found
difficulty in understanding the argument that certain countries would.
encounter constitutional difficulties to ratiying an international
instrument which was not authentic in their own language, He pointed. out
that many. conventions and. agreements drawn up to the English or French
languages had been accepted. in the past by Latin-American countries.
Spanish was an important trading language and., although it would be
desirable for the text of a Charter in connections with interrnational trade
to be authentic in Spanish, the Charter of ITO was a very complicated
document and if it were to be authentic in more than one language the
difficulties of interpretation and the day-to-day work of the Organization
would be greatly increased. His delegation considered it desirable to
limit the authentic languages to English and French or even to reduce them
to only one language - either English or French.
After pointing out the difficulties involved in drawing up a, Spanish
text before the end.of the Conference, Mr. Marten said that his delegation
/wished to Page 2
wished to suggested that if and when a certain number of Spanish-speaking
countries, say ten,had bacome member of ITO an authantic Spanish text
of the Charter should be estahished and operated equal terms with
the French and English texts.
Mr. EFDRARO (Argentina) referred to the amendment which his delegation
had submitted to Article 92, and pointed out that it was closely linked with
the amendment, suggested by the delegation of Mexico, The delegation of
Argentina maintained its reservation regarding pararaph 1 of Article 92
and considered that the text of the Charter should be authentic in Spanish
as well as in the working languages of the United Nations.
Mr. MACHADO (Cuba) pointed. out that of the sixty nations represented
at the Conference fully one-third were Spanish-speaking,and therefore he
could not see why there should. be any objection to the Charter of the ITO
being. drawn up in, Spanish and that text being accepted as authentic in the
same way as the English and French textes. He disagreed with the argument
that lt would not.-be possible to prepare a Spanish text before the end of
the Conference and. said that he personally wouId. see that such a text was
prepared if it were agreed that the Charter should be drawn up in that
language.
Mr. KOJEVE (France) felt that the deletion of paragraph 1 of Article 92
and the amendment to Article 100 might create difficulties when it was a i
ion stl= of appeal to the International Court of JustHcs. Fin delegation
accepteamendmentndmen proposed by the Mnxicau delegationwbut vould like
ext teot ts be no drafted. that no complications would aat t eat th time
of appealhto t`e Court.
ADOEErMexicobxice), rn,plyig eo tmarksomrke ofrepresentativeative
e United Kingdom, said that certain constitutional difficu
dof the United Kingdom,,said that certain constitutional d
ed 6e when the text oe the Chart.cr wr s cubmitte to parliaments and
ot be an authentic Spanisho bucrauase it wosfld not be an authentic ish
hat translation would not translation. And that tranltian i' not
hey had gone into the ious parlIana;its ratil they, had. go into th
MOEUinU cf the tepastery thcrougW.y. It vas true that in the pait certain
convnish language had been not drawn up in the Spaioh langwze bad beon
a-QccePtecl by ~Sp=sio peaking countrie but that did not necessarily. set
a precedent vlhic should. always be followed.
- .e d. no1 consider that the.delotion of paragraph l.of Article 92
or th, amendment to Articls 100 would create any difficulties in thie case
Of appo4a to .the juteratioil Court oe Justice as the Spanish.speakïng
countriin English tuxallly subWit their appeals ia Eneish or French.
/Atter emphasizing Page3
After. emphasizing the importance of Spanish as a diplomatic and
international language, he said that if the Committee accepted the Mexican
amendment the Spanish-speaking countries represented at the Conference
would be willing to from a drafting committee and prepare a text of the
Charter in spanish.
Mr. MORTON (Australia) agreed with the representative of the
United Kingdom that this was a matter of merit and not of principle. It
also was a question of advisability. The International Court of Justice
used. only. the English and. rench languages; what would. it do. in the case of
a dispute between the English and Spanish, or the French and Spanish texts
of the Charter, It would be appropriate to have an authoritative Spanish
text at a later date, when there was time in which to prepare it and if
sufficient Latin-American countries adhere to the Organization.
Mr. TINCO (Costa Rica) said that he would withdraw his amendment to
Article 92 if. the Mexican proposal were to receive. general approval. The
.-San Francisco.Conference had. accepted Spanish as.one of the five official
languages and at Bretton Woods it has been put on equal footing with
English and French. The Interim Commission should be asked to prepare a
Spanish text and a provision should. be inserted. to the effect that that
text would be an authentic one
Mr. FORTHOME . (Belgium) drew attention to the difficulty with which
the Central Drafting Comittee had been faced in considering only an
English and a French text. If there were to be five authentic texts, all
delegations would have to pass on each one of them and with respect to
the Chinese version, for example it would be particularly difficult.
He suggested that paragraph 1 of Article 92 be deleted and Article 100
maintained in its present form, In that way it would be for the Conference
.to. decide any conflict between the various texts and in due course the
five texts would be of equal value.
Mr. JIMENEZ(EL.salvador) said. that as the Charter was going to have
Important repercussions on the economies of the countries of latin America,
it was -essential that there should be an authoritative Spanish text. The
existence of such a text would also have an important psychological
effect as, at the beginning of the trade discussions the legitimate
interested of the under-developed countries had not been properly recognized.
The various parliaments could be convinced of the value of the Charter much
more easily on the basis of an authentic Spanish translation.
The Belgium proposal seemed acceptable as it would give Spanish a.
similar position to that of English and French.
/Mr. RIVERA(Colombia) E/CONF.2/c/SR .28
Page 4
MR. RIVERA(Colombia) expressed the view that if Article 100 was.
maintained in its present form, it would imply that.the Spanish text,.
would have-to be signed. in Hvana, There need not be great difficulties
ln this respect as the Cuban representative had. said ..that component
translators could be provided. A Working Party could be set up on the
basis of the Belgian proposal to prepare a suitable redraft of Article 92.
The CHAIRMAN drew attention to the fact that only the Final Act would
have to be signed in Havana.
Mr. WUNS KING (China) said that the question under discussion was a
matter both of merit and of principle. He sympathized with the legitimate
claim of the Latin.American representatives to have an authoritative
Spanish text, and would put no obstacles in their -way, but: he would be
unable-to accept any formula which would. provide a precedent that Chinese
and. Russian were not to be considered as authorotative languages.
At San Francisco it had, been possible to prepare all five texts and
therefore the same should be -possible here. In connection with a reference
to the International Court, the Chinese delegation would. insist on the
authoritative nature of the Chinese language, but for practicability would
submit its case in English or French ;. ..
ITO voCId. have five offifollowed logicallyd. it foaUaeil logically that
all texts sInad. besenseore ative. 'I thatMexicanho.supported-the MoiCLan
procompromise, a spirit of conp om prepared to he might-be.*repreê ;
accept th}i&proposa put forward by Belgium.esentative of Sel8iu,^
Mr. GA1CIA.aBed A0 (Uruguay) su poet& the proposal of'tho .can
representative. innonnectKingdom suggestion, he ngcora i.sugestta9, -
*eprsesde thé view that the existewce of a Spanish text vould. do much to
stimulate quick ratifications , -
se delegation, Latin-aid., that lke the Chinese dologation,;e.Itin-
American representatives vould be prepared. to submit their cases -to the
Iternateasal CoviewIn-ither English or French, To mnet the Viev of
thi. Belgianwreprwordsative, hddedggested that the folloving wordo...be: adcII
to his proposels s ject to the provisions of the Statutos; ofS-the .
International Court 0f Ji8stic". .
After aonhort disèusoblo, it vas agreed to postpone a decision: uc
this queètÏoa -until thoe foLLving meeting ;^ *-
Th. meeting rose at 5.2 p.m. |
|
GATT Library | wx972gd0759 | Sixth Committee: Organization : Summary record of the Twenty-First Meeting. Held at the Capital, Havana, Cuba Tuesday, 27 January 1948, at 10.30 a.m | United Nations Conference on Trade and Employment, January 28, 1948 | 28/01/1948 | official documents | E/CONF.2/C.6/SR.21 and E/CONF.2/C.6/SR.18-32 | https://exhibits.stanford.edu/gatt/catalog/wx972gd0759 | wx972gd0759_90050103.xml | GATT_147 | 1,090 | 7,107 | United Nations Nations Unies
CONFERENCE CONFERENCE UNRESTRICTED E/CONF.2/C.6/SR.21
ON DU 28 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
SUMMARY RECORD OF THE TWENTY-FIRST MEETING
Held at the Capitol, Havana, Cuba
Tuesday, 27 January 1948, at 10.30 a.m.
Chairman: Mr. E. COLBAN (Norway)
1. SECOND READING OF ARTICLE 68 (MEMBERSHIP ) (DOCUMENT E/CONF.2/C.6/5)
INCLUDING DISCUSSION OF THE AMENDMENTS OF THE DELEGATIONS OF PERU
AND MEXICO SET OUT IN DOCUMENT E/CONF.2/C.6/12
Mr. ALAYZA (Peru), referring to the proposal made by his delegation that
the words "whose membership has been approved by the Conference," should be
deleted from paragraph 2 of Article 68, said that very grave problems of a
political nature might arise if those words were retained in the Charter,
Membership of the Organization should be open to all countries which accepted
the Charter. Paragraph 2 should apply only to those states with full
political sovereignty, and the Peruvian delegation saw no reason for making
such states await the approval of the Conference once they had accepted the
Mr. KELLOGG (United States) pointed out that Article 4 of the
United Nations Charter gave the assembly the right to pass on applications for
membership. The same provision was contained in the Charters of most
inter-governmental organizations. It was desirable that a provision giving
an organization the right to protect itself from any kind of difficulties
which might be presented by applications which it considered undesirable
should be retained. He suggested that the matter should be considered by a
working group.
Mr. TINOCO (Costa Rica) shared the views expressed by the representative
of Peru. If a State had been accepted as a Member of the United Nations
then it should automatically be granted membership in the Organization if
it accepted the Charter. If the matter were to be referred to a Working Party,
he would suggest that the words "Member of the United Nations" should replace
the words "State" in the first line of paragraph 2.
/Mr. AUGENTHALER (Czachoslovakia) E/CONF.2/C .6/SR. 21
Page 2
Mr. AUGENTHALER (Czechoslovkia) supported the proposal of the
representative of the United States.
Mr. de GAIFFIER (Belgium) was opposed to the deletion of the phrase in
question. Paragraph 2 embodied a legal safeguard and guarantee for the
Organization which the Belgian delegation wished to see retained. The
Organization should be allowed some discretion as to the states it desired
as members, and should be in a position to reject applications for membership
from states which were opposed to the purposes and objectives of the
Organization.
Mr. MARTEN (United Kingdom) said that as far as the Members of the
United Nations not present at the Conference were concerned, he agreed that
it would be unnecessary for the Conference to have to approve their
application for membership, Referring to those States which were not Members
of the United Nations and were not represented at the Conference, he
considered that it would be vise to retain a provision by which the Conference
would have the right to approve or disapprove their applications for
membership.
It was agreed that the representatives of Costa Rica, Belgium,
Czechoslovakia, Peru and the United States should form a working group to
consider the proposal made by the delegation of Peru.
The proposal of the delegation of Mexico to delete from paragraph 2
the phrase as amended up to the date of such acceptance was in the light of
discussion withdrawn.
Mr. MODELLO (Italy) said that, the present wording of paragraph 4
might lead to a misunderstanding that Trieste was being assimilated to a
Trust Territory. He suggested that paragraph 5 should refer to Trieste and
paragraph 6 to Trust Territories.
Mr. AUGENTHALER (Czechoslovakia) suggested that sub-paragraph (a)
should read. "Free Territory of Trieste and other territories for which
the United Nations may establish special regimes."
Mr. MACHADO (Cuba) suggested that the words "by a two-thirds majority"
should be inserted after the word "determine".
It was decided to form a drafting group consisting of the
representatives of Italy, Cuba, Mexico and the United States to redraft
paragraph 5 in the light of the amendments suggested.
It was agreed that the Chairman and Secretary should draft the
explanatory note suggested by the representative of Ceylon.
Pending the receipt of the reports of the two working groups Article 68
was approved on second reading.
/Mr. COREA (Ceylon) E/CONF.2/C.6/SR.21
Page 3
Mr. COREA (Ceylon) said that a technical difficulty arose out of the
wording of paragraph 10 sub-paragraph (b) in connection with the customs
territories of Burma and Ceylon. At the time of the coming into force of
the Charter Burma would probably be an independent State and Ceylon would
soon reach political independence. In that case those two countries would
accept the Charter directly and not through the competent Member. He asked
whether an explanatory note could be placed in the Charter pointing out
that customs territories invited to the Conference which had since attained
political independence would be permitted to convey their acceptance of the
Charter directly to the Organization
2. SECOND READING OF ARTICLE 71 (COMPOSITION OF THE CONFERENCE) (DOCUMENT
E/CONF.2/C.6/8) INCLUDING DISCUSSION OF THE AMENDMENT OF THE DELEGATION
OF IRAQ SET OUT IN DOCUMENT E/CONF.2/C.6/12
Mr. HAIDER (Iraq), referring to the amendment submitted by his delegation
that paragraph 3 of Article 71 should be deleted, said that it was very
important for small nations to be able to be represented by another Member.
The small nations had to consider the cost involved in sending representatives
to international conferences, and owing to the lack of experts in the
underdeveloped countries it was very difficult to find enough of them to
attend all international conferences which often took place at the same time
in countries far apart.
Article 71 was Approved in the Second Reading with the Deletion of
Paragraph 3.
After a thorough discussion the following text of paragraph 1 was
accepted:
"The Conference shall meet at the seat of the Organization in
regular annual session and in such special sessions as may be convoked
by the Director-General at the request of the Executive Board or of
one-third of the Members. In exceptional circumstances the Executive
Board may decide that the Conference shall be held at a place other
than the seat of the Organization."
Paragraph 2 was accepted without change from the text approved on
first reading.
It was agreed that a United Kingdom amendment to paragraph 1 of
Article 99 should be referred to the Sub-Committee dealing with
Articles 95 to 100, without previous discussion in the Sixth Committee. |
|
GATT Library | bx845rv3730 | Sixth Committee: Organization : Summary record of the Twenty-First Meeting. Held at the Capital, Havana, Cuba Tuesday, 27 January 1948, at 10.30 a.m | United Nations Conference on Trade and Employment, January 28, 1948 | 28/01/1948 | official documents | E/CONF.2/C.6/SR.21 and E/CONF.2/C.6/SR.18-32 | https://exhibits.stanford.edu/gatt/catalog/bx845rv3730 | bx845rv3730_90050103.xml | GATT_147 | 0 | 0 | ||
GATT Library | ts865wg7779 | Sixth Committee: Organization : Summary record of the Twenty-First Meeting. Held at the Capital, Havana, Cuba Tuesday, 27 January 1948, at 10.30 a.m | United Nations Conference on Trade and Employment, January 28, 1948 | 28/01/1948 | official documents | E/CONF.2/C.6/SR.21 and E/CONF.2/C.6/SR.18-32 | https://exhibits.stanford.edu/gatt/catalog/ts865wg7779 | ts865wg7779_90050103.xml | GATT_147 | 0 | 0 | ||
GATT Library | qn100ng7395 | Sixth Committee: Organization : Summary record of the Twenty-Second Meeting. Held at the Capital, Havana, Cuba, Wednesday, 28 January l948 at 3.00 p.m | United Nations Conference on Trade and Employment, January 29, 1948 | 29/01/1948 | official documents | E/CONF.2/C.6/SR.22 and E/CONF.2/C.6/SR.18-32 | https://exhibits.stanford.edu/gatt/catalog/qn100ng7395 | qn100ng7395_90050104.xml | GATT_147 | 756 | 5,486 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/SR.22
ON DU 29 January 1948
DE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SUMMARY RECORD OF THE TWENTY-SECOND MEETING
Held at the Capital, Havana, Cuba,
Wednesday, 28 January l948 at 3.00 p.m.
Chairman: Erik COLRAM (Norway)
1. SECOND READING OF ARTICLE68
The CHAIRMAN Read an additional to paragraph 1 (b) which he proposed to
cover the question raised by the representative of Ceylon at the twenty-first
meeting. This suggestion was adopted.
2. SECOND READING ARTICLE 76 - (Document E/CONF.2/C.6/25)
Approved without comment.
3. SECOND READING OF ARTICLE 77 - (Document E/CONF.2/C.6/25)
Approved without comment.
4. SECOND READING OF ARTICLE 79 - (Document E/CONF.2/C.6/25)
Mr. TINOCO (Costa Rica) suggested that, in order to conform with the
enumeration in Article 70 Section D should deal with The Committees, and
Section E with The Commiesions.
It was agreed that this proposal should be referred to the Central
Drafting Committee.
Article 79 was approvedon second reading.
5. SECOND READING OF ARTICLE 80 - (Document E/CONF.2/C.6/25)
Mr. KELLOGG (United States) asked that paragrph 1 should be referred
to the Central Drafting Committee, which should clarify the wording to
insure that members of Commissions would be elected only on grounds of
personal capacity.
Mr. TINOCO (Costa Rica) supported by Mr. GUTIERREZ (Bolivia) proposed
that as gegraphical distribution was of primary importance throughout the
Organization, a sentence should be inserted in the Article to the effect
that no country should be represented by more than one person on each
Commission.
It was agreed that approval of Article 80 on second reading should be
held in abeyance until this proposal had been submitted in writing.
/6 SECOND READING OF E/CONF.2/C.6/SR.22
Page 2
6. SECOND READING OF ARTICLE 82 - (Document E/CONF.2/C.6/29)
Approved without comment.
7. SECOND READING OF ARTICLE 83 (Documents E/CONF.2/C.6/29 and
E/CONF.2/C.6/37)
Mr. GARCIA-OLDINI (Chile) considereed that under the present draft the
Director-General could make a nomination to the position of Deputy Director-
General without taking paragraph 2 into consideration;-. The points in the two
paragraphs should be in conjunction eo that in the appointment of a Deputy
Director-General the conditions regarding geographical distribution in
paragraph 2 would be taken into account.
It was agreed that Article 83 should remain as approved on first reading
until this proposal had been submitted ln writing.
8. SECOND READING OF ARTICLE 84 (Document E/CONF.2/C.6/31)
9. SECOND READIG OF ARTICLE 85 - (Document E/CONF.2/C.6/37)
Approved without comment.
10. SECOND READING OF ARTICLE 86. (Document E/CONF.2/C.6/37)
Approved without comment .
11. SECOND READING OF ARTICLE 87 (Document E/CONF.2/C.6/37)
Approved without comment. . . . .
12. SECOND READING OF ARTICLE 88 - (Document E/CONF2/C.6/37)
Approved without comment. . .
13. QUESTION OF PROCEDURE- ARTICLE 99 - (United States Amedmentnt,
Document E/CONF.2/C.6/12/Add,10)
Mr. FAWCETT (United- Kingdom) Chairman of Sub-Committee said that question
had been raised in Sub-Committee whether it would be within its competence
to deal with the question of whether Government having responsibilities for
direction in Germany or Japan of matters provided for in the Charter could
accept the Charter also in respect of such areas for which they might have
responsibility. He asked for advice of the Committee on that matter.
The CHAIRMAN ruled that Sub-Committee J should first consider the
competence of the Conference to deal with the matter, and if it decided, that
the Conference had the necessary competance it could examine the United States
- proposal If, however, it decided others then it
proposal. If, howaver, it decided otherwise, then it would so report back
to the Sixth Cmmittee which, he was confident, would accept the
recommendations of, the Sub-Committee.
14. SECOND READING OF ARTICLE 69 (FUNCTIONS OF THE ORGANIZATION) (Documents
E/CONF.2/C.6/5 and corrigendum, E/CONF.2/C.6/A/W.2,
E/CONF.2/C.6/A/W.24, E/CONF.2/C .6/12/Add.3 and E/CONF.2/C.6/27.
Mr. TINOCO (Costa Rica ) suggested drafting amendment to Article 69
which the CHAIRMAN requested him to submit in writing.
/Mr. AMADOR (Mexico), E/CONF.2/C.6/SR.22
Page 3
Mr. AMDOR (Maloco), referring to the proposal submitted by his
delegation that sub-paragraph (i) of paragraph (c) of Article 69 should be
deleted' said the Mexican delegation wished again to emphasize the importance
of that amendment. Unless the sub-paragraph was qualified by certain words
it might be interpreted as meaning that difficultise would arise in certain
countries because or their present legislation. If the Committee considered
that such a clause was necessary, then the delegation of Mexico would request
clarification insofar as the sense of the Clause was meant to imply that it
was without any prejudice to the working or the present Article 12 of the
Charter. |
|
GATT Library | bg025wq7465 | Sixth Committee: Organization : Summary record of the Twenty-Seventh Meeting. Held at the Capital, Havana, Cuba, Thursday, 12 February 1918, at 3.00 p.m | United Nations Conference on Trade and Employment, February 12, 1948 | 12/02/1948 | official documents | E/CONF.2/C.6/SR.27 and E/CONF.2/C.6/SR.18-32 | https://exhibits.stanford.edu/gatt/catalog/bg025wq7465 | bg025wq7465_90050112.xml | GATT_147 | 1,326 | 8,785 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/SR.27
ON DU 12 February 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
SUMMARY RECORD OF THE TWENTY-SEVENTH MEETING
Held at the Capital, Havana, Cuba,
Thursday, 12 February 1918, at 3.00 p.m.
Chairman Mr. E. COLBAN (Norway)
CONTINUATION OF DISCUSSION OF THE INTERIM REPORT OF THE SUB-COMMITTEE ON
ARTICLES 95, 96, 98, 99 and 100 (Document E/CONF. 2/C. 6/48/Rev.1)
Article 98-Entry into Force and Registration
Paragraph 2 (continuation of discussion)
Mr. AMADOR (Mexico), in referring to the arguments which had been voiced
against the acceptance of. the. amendement submitted. by his delegation,
reitereted the remarks which he he had made at the previous meeting. The
Organization would be an organization of major importence and count not be
compared with other inter-governmental organizations which had come intontdf
ance when a small number of States had deposited their instrument of itanicnt of
He felt that , if the suggestion were adopted that the Chart
d1fdifficulties would arise if chose nations ware all of minor importanc
oomomie eaconomc
Ma'sug-,Mr. GU????(Belivia) supported the remarks of the r
Moxico az.& a-zetMoxico and agreed with him that if the retificztions of th
tre.4eL.n the ctrading nations we
voi2.~L bave ifL+ttLe or~ un i .t!ae i LaOi hs would have little o
of the de1les#ïboh of Moxizo thiat tâo entry Ii' Go. fof the delegation of ico th
be condîttera:' u7.,ea' ïit aocriwiance by, a mabe condition upon its accance b
Final -Act th rcr'.rrf:ne
~ieC~t~~ rcr.;'ringta the ouz' xprscd. by the reThe CHAIRMAN, refe
-Moxico and Boli±vj.a tI2at the ratifications of the moMexico and boliv that t
countrI3es min9ht not b9 amond tho number of twecountries might not be amongt
boom sus-ested ehould.n bono the Chartier into feen suggested should bring th
emallor trading nations vould deposit thoir rasmaller trading nations woul
thure that thé E/CONF.2/C.6/SR.27
Page 2
sure that the more important nations had done so.
Mr. COUILLARD (Canada) said his delegation supported the proposal that
twenty acceptances of the Charter should be required before the Charter came
Into force. Referring to the remarks of certain representatives that the
figure of twenty was arbitrary, he said that any number that might be chosen
would be arbitrary. Assuming that the larger countries, as was quite probable,
would deposit their ratifications first, possibly seventy-five per cent of
world trade would be represented by the first twenty ratifications. He
agreed that membership should be as universal as possible, but it should, only
be universal on the inception of the organization to a degree which was
reasonable,
He suggested that the committee might arrive at a compromise solution.
A -provision. might be inserted in the Chartor laying down that a cortain
percentage of world trade must be represented in the original membership.
before the Charter entered into force, or a date might be included before.
which the Organization would not enter into operation.
Mr.RIVERA (Colombia) felt that more than half of the countries
represented at the Conference would ratify the Charter without delay, and
suggested that paragraph 2 should be amended to provido that the Charter
should enter into force when it had been ratified by a majority of the
governments present at the Conforence. It should, however, automatically
como lnto force a year after the signature of the Final Act providing that
not less than twenty States representing a high percontage of international
trade .had ratified by that time.
Mr.. GUTTERREZ (Cuba) said his delegation would accept the number of
twenty ratifications to bring the Charter into force providing that number
represented more than fifty per cent of international trade.
Mr. ZAFRA (Philippines) said his delegation did not object to the
proposal that the Charter should enter into force when twenty nations had
ratified it, as they felt that those twenty nations would represent more
than fifty per cent of world trade.
His delegation would like to see a provision inserted in the Charter
covering the case of those countries which, owing to the peculiarities
of their Constitution, could not ratity the Charter before 30 June 1949.
Mr. Zafra therefore suggested that the date "30 August 1949" should.
substitute "30 June 1949" in paragraph 2, and that the words "30 June 1949"
should, replace the words "the day" in the second line of that paragraph.
Mr. FORTH0MME (Belgium) supported the proposaI that twenty ratifications
should be required. to brings the Charter. Into effect, it being understood
that those ratifications would include those of countries representing a
substantial amount of international trade.
/Mr. AMADOR(Mexico) E/CONF.2/C.6/SR. 27
Page 3
Mr. AMADOR (Mexico) believed that final draft should take into
consideration the fact that the parliamentary procedure of certain countries
might preventthem from ratifying the Charter at as early a date as that sot.
Mr. MARTEN (United Kingdom) believed the suggestions of the
representatives of Colombia, and Cuba offored a basis. for an acceptable
compromise. - The number "twenty" should be retained as necessary. to brings
the Organization-into force. Two-thirds of.the world's trade should be
represented- by this number. The. Charter should. not enter into force for
the first nine months after the date of signature of the Final Act. After
the date of acceptance by the twenty Members and after nine month or longer
had elapsed, there should be a period of six monthst grace. The first twenty
Members accepting. should operate the Organization, but no country, being a
signatory at Havana, should be treated, as a non-Member, and no full.
Conference of the Organization should be held during the six-months of graco.
The fifteen month would extend well into the summer of 1949, and would give
all but a few exceptional countries a chance to ratify the Charter,
Mr. KELLOGG (United States) preferred the figure twenty to be retained,
although he would support the Cuban compromise proposal that fifty per cent
of the worlds trade should be represented, and a period of grace of one year
should be provided.
Mr. GARCIA SERRATO (Uruguay) felt that the proposal of his delegation
and that of Mexico had improved the Geneva text. The matter was of
paramount importance.
He denied that, as the representative of Canada had stated, he had
reforred to "hesitating countries". Twenty was an arbitrary number,
It was agreed that a working party consisting of the representatives of
Canada, Colombia, Cuba, Mexico, the Philippincs, United Kingdcm, Uruguay
and the United States, should be formed to discuss the suggestion concerning
Article 98 paragraph 2.
Mexico: Proposed Amendment to Article 100 (Documents E/CONF.2/C.6/12/Add.21
and E/CONF.2/C.6/48/Rev.1)
Mr. AMADOR (Mexico) pointed out the serious difficulties of a
constitutional and legislative nature arising out of the submission to the.
governments of Spanish-speaking countries of texts which were not in
conformIty with the English and French texts of the Charter. This as not
simply a natter of principle or sentiment.
The Mexican delegation had withdrawan its amendment to Article 99 on a.
previous occasion, in order to permit unanimous agreement in Sub-Committee J,
accepting the objections presented by the United States and other delegations;
but it had been hoped that the Conference would recognize that the
/Spanish-speaking E/CONF.2/C.6/SR.27
Page 4
Spanish-speaking countries had certain constitutional difficulties. Nothing
would be lost and a great deal would be gained if in Article 100, it was
acknowledged that texts in the official languages of the United Nations
should be authoritative for purposes of interpretation of. the: Charter .It
was of paramount importance that Members should be perfectly sure of theiroir
mitments, obligations, rights and privileges within the framework of the th
Charter. this end it was necessary that the decisions arrived at in the tho
Conference should be in the mother tongues and in tconstitutionalnal. languages
of the various countrieIOf Ie Spanish text were not authentic and nd .
huthoritati e,-and did not agree completely with the English aFrench texts,xte
re would be difficulty in obtaining acceptance on behalf of governmentsae-
in applying intolligently the provisions of the Charter itself.lts - : |
|
GATT Library | rs923rd9416 | Sixth Committee: Organization : Summary record of the Twenty-Sixth Meeting. Held at the Capital, Havana, Cuba, Friday, 6 February 1948, at 3.00 p.m | United Nations Conference on Trade and Employment, February 6, 1948 | 06/02/1948 | official documents | E/CONF.2/C.6/SR.26 and E/CONF.2/C.6/SR.18-32 | https://exhibits.stanford.edu/gatt/catalog/rs923rd9416 | rs923rd9416_90050109.xml | GATT_147 | 1,829 | 11,536 | UNRESTRICTED
United Nations Nations Unies
E/CONF.2/C.6 /SR.26
CONFERENCE CONFERENCE 6 February 1948
ON DU ORIGINAL: ENGLlSH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
SIXTH COMMITTEE: ORGANIZATION
SUMMARY RECORD OF THE TWENTY-SIXTH MEETING
Held at the Capitol, Havana, Cuba, Friday, 6 February 1948, at 3.00 p.m.
Chairman: Mr. E. COIBAN (Norway)
CONTINUATION OF DISCUSSION OF THE INTERIM REPORT OF THE SUB-COMMITTEE ON
ARTICLES 95, 96, 98, 99 AND 100 (document E/CONF.2/C.6/28/Rev.1)
Article 95 - Amendments (Continuation of discussion)
Mr. FER (Turkey) emphasized the importance which his delegation
attached to Article 95, and said that the new draft prepared by
Sub-Committee J was an improvement on the Geneva draft. Four different
procedures had, however, been laid down in the new draft for dealing with
amendments, and he considered that Article 95 should be redrafted to
avoid any amendment being effected in the way provided for in paragraph 1.
In assessing the importance of the amendments provided for in Article 95
a change in the rights of Members as well as a change in obligations should
be considered.
Mr. MACHADO (Cuba) suggested that the Central Drafting Committee should
be asked to ensure that the language of paragraph 2 of Article 95 made it
clear that the whole procedure under that paragraph was simultaneous.
The CHAIRMAN, after pointing out that paragraph 1 called for an
affirmative vote of two-thirds of the Members, said he could not imagine
that two-thirds majority giving up any rights which they held under the
Charter. He therefore felt there was no fear of any Member losing any
rights under paragraph 1. It was a different matter when the question arose
of imposing new obligations on Members because, until the vote had been taken
in the Conference, the various governments would have no possibility of
going into the merits of the amendment submitted, and it was therefore
necessary to reserve to them the right of ratification of such amendments.
He felt that the Conference would be extremely careful not to apply paragraph 1
of Article 95 in such a way as to deprive any Members of their rights under
the Charter.
/Article 96 E/CONF.2/C.6/SR.26
Page 2
Article 96 - Review of the Charter
Mr. KUMLIN (Sweden) said that his delegation still maintained its proposaI
that Article 96 should be deleted. It imposed upon the Executive Board an
obligation to convoke a special session of the Conference for the specific
purpose of reviewing the Charter after a period of five year, and, in the
present state of world economy, that period was a very long time. The
Organization might find it desirable to review the Charter before the
period of five years had elapsed. The Swedish delegation felt, therefore,
that Article 96 was far too rigid as it did not allow for any discretion
in the matter of revision of the Charter on the part of the Executive Board
and the Conference. The provisions of Article 73 and those of Article 95
constituted the best possible safeguards that the purposes for which
Article 96 were drafted would be carried out.
If, however, the Committee decided to retain Article 96, the
representative of Sweden felt that paragraph 1 should be redrafted to allow
of some discretion on the part of the Conference and the Executive Board in
regard to periodical reviews of the Charter.
Mr. AMADOR (Mexico) felt that if Article 96 were deleted the Conference
would have no guidance as to when the Charter should be reviewed. World
economy was far from stable, and it would be necessary to review the
Charter from time to time.
Mr. POLITIS (Greece), although agreeing with the remarks of the
representative of Sweden, felt that Article 96 should be retained. He
suggested that the f ollowing sentence should be added at the beginning of
the Article: "Unless the Conference at an ordinary session decides that
urgent circumstances necessitate the review of the Charter on a previous
date,.....
Mr. ROUCHDY (Egypt) considered the text of Article 96 too rigid. It
should be left to the Conference to decide when a revision of the Charter
should be made, and that decision should be taken in accordance with the
provisions of Article 109 of the Charter of the United Nations.
Mr. KARMARKAR (India) supported Article 96 as at present drafted
with the addition of the amendment suggested by the representative of
Greece.
Mr. AUGENTHALER (Czechoslovakia) also supported the present wording
of Article 96, and said he would not oppose the amendment proposed by the
representative of Greece.
The CHAIRMAN pointed out that the purposes of Article 96 were not
to give the Conference an opportunity to revise the Charter; but were to
assure Governments subscribing to the Charter that, without having to
submit amendments from time to time, they would be certain, after a
comparatively short period of five years when most of the transitory clauses
/of the E/CONF.2/C.6/SR.26
Page 3
"of the Charter expired, of having the opportunity or discussing the whole
Charter once again.
Mr.KUMLIN (Sweden) said that no provision was made for a further
review after the first one which would take place at the end of five year.
He supported the amendment proposed by the representative of Greece.
Paragraph 1 was approved.
Paragraph 2 and 3
Approved. without comment.
Article 97 -Withdrawal and Termination
Approved.,
Article 98 - Entry into Force and Registration
Paragraph 1
Approved.
Paragraph 2
Mr. LAMBOGLIA (Argentina) said that the difficulties in the Sub-Committee
centred around the point of how many ratifications were necessary to bring
the Charter into force. His delegation had first supported the proposal
made by the delegation of Uruguay that a two-thirds majority vote should be
necessary, but afterwards, in a spirit of compromise, he had supported,
together with the delelgation of Uruguay, the Mexican proposal. that the entry
into force of the Charter should be conditional upon its acceptance by a
majority of the signatories of the Final Act of the Havana Conference. He
could not support the proposal made in the Geneva draft that the Charter
should. be brought into force after twenty acceptances had been received, and
felt that the Committee should be guided by the provisions of Article.110
of the Charter of the United Nations.
Mr. GARCIA SERRATO (Uruguay) supported the remarks of the representative
of Argentina, and pointed out that he strongly disagreed with the suggestion
made by certain representatives in the Sub-Committee that if twenty nations
ratified the Charter that fact would automatically attract other nations to
do so. The Charter should not come into effect until it had been ratified
by the majority of the signatories of the Final Act.
Mr. MARTIN (United Kingdom) pointed out that this question had been
fully discussed before both in the Committee and in the Sub-Committee
It was argued that twety was an arbitrary figure but it had been chosen
for good reasons. It was, roughly speaking, the least number of states which
could ring the Oragnization into existence. There was no question of a
minority or a majority, for the states which deposited. their instruments of
acceptance would bind only themselves.
/If the number E/CONF.2/C.6/SR.26
Page 4
If the number were to be enlarged, the hesitant countries and those which
had an interest in delaying the entry into force of the Organisation would have
an opportunity of prevonting it from beginning work in a normal manner
Mr. AMADOR (Mexico). supported by the representative of Ecuador
stressed the arbitrary nature of the number twenty and urged
the acceptance of a simple majority of the states present at the
Conference. Not only would a majority correspond to international usage,
it was of particular importance as regard international trade and economic
development. The Organization should. be based on the principle of
universality and should work for the benefit of all countries. If the final
text of the Charter was a satisfactory one, there would be no hesitation
on the part of all countries to deposit their instruments of acceptance.
Mr. GARCIA SERRANO (Uruguay) did not see how the more acceptance of
twenty countries would cause hesitant statue to lose their apprehensions
for it was a matter in which nationl parliaments and public opinion were
involved. If, on the other hand, the peoples of the world could. be sure of
gaining advantages from the establishment of the Organization there would be
a torrent of acceptances.
Mr. MARTIN (United Kingdom) said that his country might be in the
position where it would have to hesitate before joining the Organization.
If that were to be the case, it would not adopt the selfish attitude of
trying to prevent the Organization from coming into existence. The
representative of Mexico had drawn attention to the proviso in which it
was laid down that less than twenty states could cause the entry into force
of the Charter, if that were not already a fact by 30 June 1949. If twenty
countries were prepared to join by September or October 1948, it surely.
would be better for the Organization to come into existence at that time.
Mr. AUGENTHLER (Czechoslovakia) said that he would not insist on his
propoasl for the number twenty-six, but would support the Mexican proposal
of a simple majority.
Mr. KELLOGG (United States) urged the acceptance of a low figure for
practical reasons. Much hard work had gone into the drafting of the Charter
and no delegation would wish to see it wasted. It also would be more
difficult to get the first twenty Members than the second twenty, because
the benefits would increase with the increase in membership.
He drew the Argentine representative's attention to the fact that
WHO and ICAO had come into existence when twenty six states had deposited
their instrument of acceptance; FAO and UNESCO when twenty states had
jointed and IRO' s Charter would enter into force when only fifteen states
accepted it.
/Mr. SPEEXENBRUNK E/CONF.2/C.6/SR.26
Mr. SPME-I (Netherlands) felt that the Organization should be
able to start its work with the minimum number of Members. The General
Agreement had started with a limited number of countries and an even smaller
group from among them had decided to give provisional applicants the
Agreement.
Mr. FER (Turkey) stated that his delegation would be unable to take
a decision on this question until it knew the final text of Article 93.
Mr. KARMARKAR (India) had not been convinced by the arguments that
the number twenty should be enlarged. No decision had been taken by the
Conference except after great deliberation and efforts to reconcile
divergent views. For that reason, delegations should have little difficulty
in persuding their national parliaments that the Charter should be accepted.
It would be both arbitrary and undemocratic to demand a further passing on
the Charter after the Havana Conference had approved it.
A simple majority would comprise as many as twenty-eight or
twenty-nine states, He preferred the smaller number of twenty and in the
Sub-Committee had suggested that they might be but twenty countries with
the largest volume of trade. |
|
GATT Library | dp633zy9081 | Sixth Committee: Organization : Summary Record of the Twenty-Third Meeting. Held at the Capital, Havana, Cuba, Monday, 2 February 1948 at 10.30 a.m | United Nations Conference on Trade and Employment, February 2, 1948 | 02/02/1948 | official documents | E/CONF.2/C.6/SR.23 and E/CONF.2/C.6/SR.18-32 | https://exhibits.stanford.edu/gatt/catalog/dp633zy9081 | dp633zy9081_90050105.xml | GATT_147 | 1,587 | 10,961 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/SR.23
2 February 1948
ON DU
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
SUMMARY RECORD OF THE TWENTY-THIRD MEETING
Held at the Capitol, Havana, Cuba,
Monday, 2 February 1948 at 10.30 a.m.
Chairman: Mr. Erik COLBAN (Norway)
1. SECOND READING OF ARTICLE 72 (VOTING IN THE CONFERENCE)
(DOCUMENT E/CONF.2/C.6/57)
Paragraph 1.
Mr. HOLMES (United Kingdom) stressed that, in order for the Organization
to carry out its responsibilities effectively, the fullest use should be
made in its structure of countries of chief economic importance. Provision
should be made for a system, of weighted voting and also for continuity of
representation on the Executive Board. However, the United Kingdom
delegation was quite content that the matter should be discussed on the
basis of one state- one vote, but suspended its final judgement until
the Charter had been drafted as a whole.
Mr. COUVILLARD (Canada) associated himself with the statement by the
representative of the United Kingdom. Canada's position regarding Article 72
was closely related to that concerning Article 75.
Paragraph 1, Alternative A of the Geneva text of Article 72 was
approved on second reading.
Paragraph 2. (Document E/CONF.2/C.6/12 Netherland amendment)
Mr. SPEEKENHRIK (Netherlands) stated that the intention of his
amendment was to prevent a hasty decision being taken with no possibility.
of regress, but in, view of recent discussions on other articles of the
Charter regarding the two-thirds majority vote, he wondered if it had lost
its previous usefulness.
After some discussion, the CHAIRMAN proposed that the amendment.
should read. .... provided that the rules of procedure of the Conference may
permit a Member to request a second vote......
Paragraph 2 of Article 72 was approved as amended by the representative
of the Netherlands and the Chairman.
/2. CONSIDERATION E/CONF.2/C.6/SR.23
Page 2
2. CONSIDERATION OF REPORT OF THE SUB-COMMITTEE ON PARAGRAPH 5 OF
ARTICLE 68 (MEMBERSHIP) (DOCUMENT E/CO.2/C.6/55).
Mr. MARTEN (United Kingdom) as Chairman of the Sub-Comittee, pointed
out that the first words of paragraph 5 of Article 68 should read: "The
Conference shall determine, by a two-thirds majority of the votes cast, the
conditions upon which, in each individual case, membership rights and
obligations shall be extended to...."
Mr. KELLOG (United States) and Mr. GAIFFIER (Belgium) opposed the
provision for a two-thirds majority vote.
Mr. MACHADO (Cuba) said his delegation had proposed the two-thirds
majority because it did not consider it appropriate for those territories
governed by an international organization to be placed on an equal footing
With sovereign states by a more majority vote in the Conference.
Mr. AUGENTHALER (Czechoslovakia) believed that there would be no
practical difficulty entailed because the Organiztion would execute the
United Nations decisions. His opinion was confirmed by the CHAIRMAN
the only upon a requset from such a territory would it be considered
for membership ln the Organization. * .
After further discussion, -the Chairman took the sense of the Committee
on the Report By a small majority the Report was adopted
3. CONTINUATION OF SECOND READING OF ARTICLE 80 (COMPOSITION AND PROCEDURE
OF COMMISSIONS) (DOCUMENTS E/CONF.2/C.6/25 AND E/CONF.2/C.6/12/Add.16),
The CHAIRMAN proposed that the Costa Rica amendment to paragraph 1
of Article 80 should be amended. to read: "Not more than one person of the
same nationality shall be a member of the same commission.
Mr.KELLOG (United States) proposed, and the representative of
Costa Rica agreed, that as the position of the members of commissions would
be Very much that of international civil servants established in paragraph 1
and 2 of Article 85, and provided that the sense of the Committee regarding
geographical distribution was made clear, the Costa Rica amendment should
be put into the Report of the Committee rather than added. to paragraph 1 of
Article 80.
Mr. MARTEN (United. Kingdom) was opposed. to the Costa Rican amendment
He proposed that the word. "'normally" should be inserted at the begining
of the sentence.
The CHAIRMAN, replying to the representative of New Zealand, who
suggsested that the amendment should be redrafted to cover the case of
members of the British Commonwealth of Nations, proposed that the amendment
to paragraph 1 should read: "Not more than one person national of one Member
shall etc.".
/Mr. TINOCO E/CONF.2/C.6/SR.23
page 3
Mr. TINOCO (Costa Rica) accepted the proposal made by the representative
of the United Kingdom that the word "normally" should be inserted at the
beginning of the proposed amendment, and agreed with the wording proposed
by the Chair to cover the point raised by the representative of New Zealand.
It was agreed that the proposal of the representative of Costa Rica
should be inserted in the Report of the Committee. Article 80 was then
adopted as approved on first reading.
4. CONTINUATION OF SECOND READING OF ARTICLE 83 (THE STAFF) (DOCUMENTS
E/CONF.2/C.6/29, E/CONF.2/C.6/37 AND E/CONF.2/C.6/12/Add.14).
Mr. OLDINI (Chile). referring to the amendmen to paragraph 5 of
Article 83 submitted by his delegation, again emphasized. the great importance
which the delegation of Chile attached to the requIremente that appointments
to the staff of the Organization should be on as wide a geographical basis
.as possible should represent the various types of world economy and that
only those persons with the highest standard of impartiality, efficiency,
competence and integrity should receive appointments.
Mr. KOJEVE (France) said that the Sub-Committee which had been
studying Article 75 had agreed that members of the Executive Board should
represent the various types of world economy, and he considered that the
same principle should. be followed. in the recruitment of the staff. He
felt, however, that paragraph 2 of the proposed amendment was somewhat rigid,
Mr. COOMBS. (Australia) did not object.to paragraph 1 nor to the first
part of paragraph 2. He did not agree, however, with the insertion of the
words "subject, to the aforementioned conditions" in the second sentence of
paragraph 2.
Mr. de GAIFFIER-(Belgium) sad his delegation could not support the
Chilean proposal.. It was. not clear what was meant by the words "various
types of economy". The amendment suggested would place the Director-General
in a very delicate position, and tho Belgian delegation considered that, in
the recruitment of staff emphasis should be laid on the integrity and
experience of candidates rather than on their impartiality
- Mr.MARTEN (United Kingdom) supported the remarks of the representative
of Australia. He said It would be unwise for the Organization to depart
from the principles laid down in Article 101 of the Charter of the
United Nations. There might be some, reason for mentioning ln the second
sentence of paragraph 2 of Article 83 that "due regard shall be paid to
the importance of as wide a geographical. basis as possible" and to the.
"importance of including representatives of the various types, economy"
Mr. AUGENEHALER (Czechoslovakia) was in general agreement with the idea
expressed in the amendment submitted by the delegation of Chile, and felt
/that it E/CONF.2/C.6/SR.23
Page 4
that it should be mentioned in the Report. He considered that the word;
"various types of economy" might be misinterpreted and that they should be
deleted.
(Netherlands) supported the suggestion that the words
"various types of economy" should be deleted, and agreed with the remark
of the representative of the United Kingdom.
Mr. OLDINI (Chile), referring to the remarks of those representatives
who were opposed. to uas amendment, said. that all his delegation wished to
ensure was that frou the outset the staff of the new organization would be
absolutely impartial and.that all Members would. be equitably represented..
He agreed. with the amendment suggested by the representative of France
but Could, not agree to the deletion of the phrase subject to the -
aforementioned conditions'.
Mr. NORIEGA-MORALES (Guatemala) said that past experience regarding the
selection of experts and staffs of international organizations made him,
support the remarks or the representative of Chile and the amendment
suggested, by the delegation of Chile. It was essential for an international
staff to be completely impartial.
Mr. MacLIAM (Ireland) suggested that it should be left to the Conference
to decide what rules should, be followed in appointing the staff. He
therefore proposed. that paragraph 1 of Article 83 should. remain as at
present drafted and that paragraph 2 should begin:- "Regulation for the
appointment of Deputy Direotor-Generals and further members of the Staff
shall be made by the Conference with due regard, to the desirability of
securing persons on as video etc.". The second sentence of the present
paragraph 2 should then follow, the words "subject to the aforementioned etc."
being deleted but the word. "impertiality" maintained.
Mr. ALAYZA (Peru) supported the amendment submitted by the delegation
Mr. FEDRANO (Argentina) in supporting the amendment suggested by the
delegation of Chile, pointed out that he had emphasised the same principles
as those contained in the amendment when the composition of the Executive Board
was being discussed .
Mr. KARMARKAR (India) said that there had, been complaints India of
the way in which the staff of the United Nations had been recruited. He was
anxious that there should be, no ground for complaint regarding the recruitment
of staff for the Trade Organization and his delegation therefore supported.
- the Chilean amendment.
Mr. RIVERA (Colombia) agreed with the amendment proposed by the
/representative E/CONF.2/C.6/SR.23
representative of Chile, but felt that some doubts might rise as to its
drafting.
It was agreed that a Sub-Committee consieting of the representatives
of Australis, Belgium Chile, Colombia, France, Ireland, and Peru, should
be set up to consider the amendment proposed to Article 83 by the delegation
of Chile. |
|
GATT Library | zr024ns8101 | Sixth Committee: Organization : Summary record of Thirty-First Meeting. Held at the Capital, Havana, Cuba, Saturday, 28 February 1948 at 10.45 a.m | United Nations Conference on Trade and Employment, March 1, 1948 | 01/03/1948 | official documents | E/CONF.2/C.6/SR.31 and E/CONF.2/C.6/SR.18-32 | https://exhibits.stanford.edu/gatt/catalog/zr024ns8101 | zr024ns8101_90050120.xml | GATT_147 | 2,428 | 15,741 | United Nations
CONFERENECE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMRCE ET DE L'EMPLOI
E/CONF.2/C.6/SR.31
1 March 1948
ORIGINAL: EGLISH
SIXTH COMMITTEE: ORGANIZATION
SUMMARY RECORD OF THIRTY-FIRST MEETING
Held at the Capitol, hAVANA, Cuba,
Saturday, 28 February 1948 at 10.45 a.m.
Chairman: Mr.Erik COLBAN (Norwa|y)
CONTINUATION Of DISCUSSION OF THE REPORT OF THE SUB-COMMITTE ON CHAPTER VIII
(Document E/CONF.2/C .6/83)
Article 92.
Paragraph 3 was adopted.
Paragrah 4
Paragraph 5 was adopted
Paragraph 5 was adopted
Article 92
The CHAIRMAN recalled that, during the discussion of Article 100, the
Committee had already agreed to the deletion of paragrph 1 of Article 92 of
the Geneva tort.
Paragraph 1
Mr. RUBIN (United States) proposed that in view of the similar change
made in Article 88A, the word "discussions" be inserted before the word
"consultation".
Paragraph 1 of the Sub-Committee's text was adopted as thus amended.
Paragraph 2 of the Sub-Committee's text was adopted.
Proposed Annex to Article 95
Mr. MARTEN (United kingdom), said that the United Kingdom did not in
general see any objection to consultations with the International Court of
Justice in order to discover what rights prospective Members of the
Organization having accepted Article 36 of the Statuto of the International
Court of Justice might forego under the new Article 88A (1), and in order
to devuse procedures for avoiding the loss of such rights, But the
United Kingdom delegation was not clear as to the meaning to be attached
/to the amendmeat
C.
: E/CONF.2/C.6/SR.31
Page 2
to the amendment contemplated in the Annex. If the amendment contemplated
talking disputes direct to the Court without recourse to the procedures of
Chapter VIII and without regarding such procedures as final, in most cases,
the United Kingdom would have to oppose the Annex and the Resolution. Members
signing the Charter would be obliged to accept for a period of three years an
amendmot passed by a simple majority at the first Conference. In spite of
the provisos contained in the Annex, it amounted to buying "a pig in a poke."
He proposed that the Annex be deleted.
Mr. KOJEVE (France) said that the proposed Annex was the result of a
compromise following discussion of the Franco-Colombian amendment to
Article 88A. He was prepared to accept postponement of the discussion until
the first regular session of tho Conference when the opinion of the
International Court of Justice would have beon obtained. If the discussion
was to be re-opened, he suggested that it should take place at a special
session of tho Committee and that the Frcanco-Colombian amendment should be
taken as the basis for discussion.
Mr. COUILIARD (Canada) Chairman of the Sub-Committee, believed that the
kind. of amondment contamplated was clearly enough defined in the Annex. The
matter was referred to the Interim Commission for examination, subject to
the provises contained in the Annex, and at the same time the adoption of
any necessary amendment was made as easy as possible. .,
Mr. GOMEZ (Colombia) was surprised that this natter, which had been the
subject of lengthy debate in the Sub-Commmittee, should be raised again.
In view of the equally divided opinions, postponement had seemed -the only
acceptable solution, and if discussion were to be opened in the Committee,
he insisted that the Franco-Colombian amendment to Article 88A and not the
proposed. Annex should be taken as the basis for discussion. His delegation
maintained its reservation regarding the first proviso of the Proposed Annar
which he believed limited the competance of the International Court.
Mr. COOMRS (Australia) said that the Australian delegation had always
held that even the Geneva text left obscure the limitations on the types
of subjacts which could be referred to the International Court of Justice.
We was opposed to reference to the Court of matters in which it did not have
special competence. He accepted poatponament of the discussion until after
consultation with the Court, which he thought was a reasonable compromise.
M4r. RUBIN (Uniteà States) supported the proposa]. of the Sub-Comittee.
The France-Colombian amendment had raised a complicated problem and, if It
were adopted, the United States delegation would have to move the deletion
of Paragraph 2 to 5 of Article 91. He regarded the proposed Annex as a
desirable compromlse and belived that it contained sufficient safeguards
to meet the United Kingdom's objections.
/Mr. MARTEN (United Kingdom) E/CONF.2/C.6/SR.31 Page 3
Mr. MARTEN (United Kingdom) said that he supported the compromise inasuch
as he believed that delegates found. it difficult to reach a decision without
Legal advisers Consutation with the Court and a later amendment weer
acceptable but the United Kingdom could not bind itself to accept for three
years whatever amendment was put forward. Although economic on financial
facts established by or through the Organization were excluded by the first
proviso, its interpretation of such facts was not. A determination of the
Organization regarding the application of quantitative restrictions to Meet
balance-of-payments difficulties or for purposes of development could for
instance be re-opened by the Internation Court. Such procedure was
inadmissible. The Charter was not a palatable document as it stood. Such
procedure would make it even less so. An amedment under the proposed Annex
might have the effect of radically altering a Member's obligations under
the Charter. Members must have the right not to accept such amendments.
Mr. GOMEZ (Colombia) favoured the Annex although he believed that the
first provise particular soriously limited the powers given to the first
Conference. Replying to the United States and United Kingdom delegatos, he
said that the Franco-Colombian amendment was concerned with the rights of
Members and not with docisions of the Organization.The United States
proposal to delete paragraphs 2 to 5 to Article 91was therefore unnecessory.
Mr. KOJEVE (France) found the United Kingdom attitude difficult to
understand. The delegate of the United Kingdom agreed that the Organization
must be master in its own house, which implied confidence in the legul
capacity of the Organization and of the Conference, and yet he was unwilling
to accept an amendment passed by a simple majority of the first Conferance.
Mr.KOJEVE did not believe the operation of the Organization would be
comprominsed by retention of the right to appeal to the International Court
of Justice. . - . ..
The CHAIRMAN said that it was his impression that none of the speakers
was opposed ta the compromise, whien had emorged from the exchange of exchange of views
in a fully representative sub-committee. Referring to the United Kingdom
objection, he said that the draft resolution did not oblige. the first
Conference.to adopt a amendment. It merely imposed on the Interim
ComnIssion the duty of submitting one He was sure that any.decision
taken would be adopted after careful considerration.
Mr. MARTEN (United Kingdom) said that hemaintained his reservation
but withdrew his proposal to delete the proposedannex and resolution. He
proposed that the following additional provise be inserted: "..and provided
further that if such amendcment require any altoration of obligations, any
Member may without from the Organization on the expiry of sixty (60) days
after receipt of written notification by the Director-General."
.Tho proposed
..
,1 .. E/CONF.2/C.6/SR.31
Page 4
The proposed Annex to Article 95 and the Draft Resolution were adopted,
subject to discussion of the United Kingdom amendment at the next meeting.
Mr. AGUILAR(Mexico) said that he was prepared to withdraw his
delegation's reservation to the proposed Annex, contained in paragraph 15,
page 3 or document E/CONF.2/C.6/83, subject to inclusion of the following
statement in the record of the meeting:
Pending the result of the consultation which, by resolution of
the United Nations Conference on Trade and Employment, the Interim
Commission of the International. Trade Organization is instructed to
carry out with appropriate officials of the International Court of
Justice or with the Court itself, regarding possible amendments to
Chapter VIII designed to ensure recourse to the International Court
of Justice by Membors of the Organization which are parties to the
Statute of the Court, in respect of questions arising from the
Charter but not covered by Chapter VIII, the Mexican delegation
maintains the view that pararaph 1 of Article 88A does not impair
the rights of Members under the Statute of the International Court of
Justice as regardes questions arising from tho Charter but Which are
not covered by Chapter VIII of that Charter.
Mr. GOMEZ (Colombia) said that his delegation maintained its reservation
regarding the first proviso to the proposed Annex to Article 95..
Mr, ALAYZA (Peru) also reserved his delegation's position regarding the
first proviso to the proposed Annex to Article 95.
Mr. OTANEZ (Venezuela) reserved. his delegation's position on the Annex
pending receipt of instructions from his Govermont.
The proposed Annex to Article 95 and the Draft Rosolution were adopted
subject to the above reservations.
TEXT OF THE SUB-COMMITTEE'S REPORT
Mr. RUBIN (United States) proposed that the words: "To propose the
suspension or withdruwal of," in paragraph 9 of the Sub-Committee's report
be mendedd to read: "to require a Member to suspend or withdraw,".
The amendmont was accepted.
The CHAIRMAN drew attention to paragraph 11 of the Sub-Committee's
report. He did not think any action was required.
Mr. RUBIN (United States) explained that the Sub-Comnittee's text
provided for the suspension of rulin under Chapter VIII, ponding a review
by the Conference, while -the second' sentence of the former paragraph 4 of
Article 92 dealt with the Charter as a whole. He therefore believed that
it might be desirable to amend other provisions of tho Charter as suggeoted
/in paragraph II E/CONF.2/C.6/SR.31
Page 5
in paragraph 11 of the Sub-Committee's report.
Mr. KARMARKAR (India) said that he withdrew reservation, subject to
further instructions.
Mr. BARADAR (Iraq) said he must maintain his reservation regarding the
Annex to Article 95 and the draft resolution, pending receipt of instructions.
REPORT OF THE SUB-COMMITTEE ON ARTICLES 95, 96, 98, 99 AND 100 UPON THE
AMENDMENT PROPOSED BY THE DELEGATION OF THE UNITED STATES TOARTIFCE 99
(Documents E/CONF.2/C.6/12/Add.10 and E/CONF.2/C.6/80)
Mr. WUNSZ KING (China0 accepted the proposed the proposd text but asked which was
the competant authority in respoct of Japan. In his view, the competent
authority wasthe Far Eastern Commesion.
Mr. COOMBS (Australia) thought that the Committee should avoid
discussions in a field in which delegation had no authority to speak for
their Governments. When an application was received, the Confereance would
have to satisfy itself that the applicant was fact the competent authority.
The CHAIRMAN, agreeing with the delegate ofAustralia, said that the
expression "competan authority" imposedon the applicant power the duty
of proving that it was such.
Mr. WUBZ KING (China) proposed that the text adopted be forwarded to
the Far Eastern Commission.
Mr. BINDA (Czechoslovakia) agreed that discussion was undesirable but
statede that in the view of his delegation, the competent authority for
Germany was the Inter-Allied Control Council in Berlin. . . .
Mr. KOJEVE (Franco) supported the Australian dalegato, The text would
not be put into effect for one year and in the interval the authorities
might not be the same
Mr. BLESZILIN (Poland) said that existing treats which could not be
disregarded, made it absolutaly clear that the competant authorities were
the Inter-Allied Control Council in the case of of Germany and the Far Eastern
Commiasion in the case of Japan.He also believed that the now text should
not. be inserted as an amendmant to Article 63. It was intended not to give
the Intor-Allied Control Council and the War Eastarn Commission a place
in the Organiztation, but to establish a modue vivendibetween them and
Members. He suggested that the text be included included as interpretative note
to Article 99 cr as an annex to the Chartor
Mr. MACHADO (Cuba). asked for an assurance that the text.applied only
to countries at present under military occupation as a result of the second
World War. The American countries could not recogize the validity of the
militory occupation of torritories in teh Americas.
* *.... .. 4 /The CAICRWMM said E/CONF.2/C.6/SR.31 Page 6
The CHAIRMAN said that the question of deciding which were the competent
authorties was outside the scope of the Sixth committee and must be left to
the Conference. He proposed that the attention of the Central Drafting
Committee be drawn to the point raised by the delegate of Poland. He thought
that interested delegations might transmit the text to the Far Eastern
Commission. The Conference should take no action likely to prejudice the
decisions regarding the competent authority.
Mr. BLUSZTEIN (Poland) said that the expression "competent authority"'
gave rise to doubts, as was shown by the Chairman's remark in connection with
the Chinese proposal submit the text to the Far Eastern Commission. He
saw no objection to the Chinose proposal.
The CHAIRMAN said that in his view the Committee had neither the
information nor the authority necessary to decide the question.
The delogates of France and the United Kingdom concurred with the
Chairman
Mr. GARCIA SERRATO (Uruguay) said that the wording of the text was
unambiguous and that the intention of the proposal had been made clear during
discussions in the Sub-Committee The text was intended to apply only to
territories now under military occupation.
Mr. BENDA (Czechoslovakia) said that he must maintain his reservation
and requested that the following declaration be inserted in the report of
Committee VI: "The Czechoslovak delegation declared that in its view the
competent authority in respect of Germany is the Inter-Allied Control Council
in Berlin."
Mr. BLIBZTEIN (Poland) reserved his position and requested that the
following declaration be included in the report of Committee VI: "In the
view of the Polish delegation, the competent authority for Germany is the
Inter-Allied. Contral Council in Berlin and for Japan, the Far Eastern
Commission in Washington."
Mr. KOJEVE (France) had no objection to the inclusion of the Pollsh
and Czochoslovak statements but asked that it be made clear in the report
that the matter had not been discussed. in the Sixth Committee. Delegations
that had not expressed an opinion could not be regarded as, ipso facto,
agreeing with the views put forward by the delegations of poland of
Czechoelovakcia.
The CHAIRMAN said that the declarations would appear in the names
of the delegations making them.
Mr. WUNSZ KING (China) said he would prepare a statement pointing
out that in the opinion of his delegatIon the competent authority in the
/case of Japan Page7
case of Japan is the Far EAstern Commission and would refer i to othert
delegations represented on the Far Eastern Commission before submiting itt
for inclusion in the report. -
The text proposed by the Sub-Committee was aproved |
|
GATT Library | cy717zz9254 | Sixth Committee: Organization : Summary record of Thirty-Third Meeting. Held at Capital, Havana, Cuba, Thursday, 4 March 1948, 10.30 a.m | United Nations Conference on Trade and Employment, March 5, 1948 | 05/03/1948 | official documents | E/CONF.2/C.6/SR.33 and E/CONF.2/C.6/SR.32/CORR.1-41 | https://exhibits.stanford.edu/gatt/catalog/cy717zz9254 | cy717zz9254_90050125.xml | GATT_147 | 2,644 | 16,861 | United Nations CONFERENCE Nations Unies CONFERENCE UNRESTRICTED
ON DU E/CONF.2/C 6/SR.33 5 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL ENGLISH
.
SIXTH COMMITTEE: ORGANIZATION
SUMMARY RECORD OF THIRTY-THIRD MEETING
Held at Capitol, Havana, Cuba, Thursday, 4 March 1948, 10.30 a.m.
.
.Chairman Mr. Eric COLBAN (Norway)
.
1. CONSIDERATION OF THE TEXT CONTAINED IN ANNEX E TO THE REPORT OF THE
JOINT SUB-COMMITTEE OF THE SECOND AND SIXTH COMMITTEES (Document
E/CONF.2/C.6/72). Annex E of the Report was approved. To a question by the representative
of Brazil, the CHAIRMAN replied that in his opinion the new Article should
follow Article 69, but that the Central Drafting Committee would make the
decision.
2. FURTHER CONSIDERATION OF THE REPORT OF THE SUB-COMMITTEE ON ARTICLE 75
(Composition of the Executive Board) (Documents E/CONF.2/C.6/53 and
Mr. MACHADO (Cuba) praised the patience and successful efforts of
Mr.Jabbara (Syria) which had resulted in the present text of Article 75. The
Cuban delegation would have preferred Alternative B but accepted the present
formula as the nearest answer to its desire that democratic principles obtain
in international organizations. Article 75 should be considered together
with its Annex: the 18 members of the Executive Board would ensure adequate
representation for all economic criteria, including customs unions, as provided
in paragraph 1. Paragraph 2 realized the need for absolute balance in the
Board; paragraph 3 made provision for elections and paragraph 5 spoke of
the rules, which for the first election appeared in Annex X. Because all
ratification would not have been received and the statistics regarding
different types and degrees of economies would not be available, it was
necessary that the Havana Conference promulgate certain rules to insure an
adequate start for the Organization.
It was to be hoped that the Committee would follow the example of
goodwill and give its unanimous approval to the Report of the Sub-Committee.
Mr. WOULBROUN (Luxembourg) hoped that the example set by Cuba would be
followed and moved the adoption of the report.
.
.
/Mr. POLJIIS E/CONF.2/C.6/SR.33
Page 2
Mr. POLITIS (Greece) supported the report and requested that paragraph 3
of the Report oF the Sub-Committee appear in the Report of the Sixth Committee.
Mr. HOLLOWAY (Union of South Africa) proposed substituting for the phrase
in the first line of paragraph 2 of Article 75 "of the major geographical
areas..." by the phrase "of broad geographical areas..."
The principle should be stated in Article 75 that the Executive Board
was a body looking at the interest of the Organization and all Members;
the Members of the Board were trustees of an international organization which
was trying to create an international conscience in economic affairs, and
therefore they represented not the interests of their particular governments,
but of the Organization as a whole.
The CHAIRMAN agreed to the drafting change in paragraph 2. The
representative of the Union of South Africa was correct in his belief that
the Executive Board was representative of the Conference as a whole.
Mr. BAKIM (Lebanon) supported the representative of Greece in requesting
that pargraph 3 of the Report be incorporated in the Report of the Committee.
Mr. FORTHOMME (Belgium) agreed with those representatives who, stated the
members of the Executive Board should be objective.
Mr. OTANEZ (Venezuela) supported the Report without reservation, but
noted that his delegation would have preferred Alternative B or that the
rules in the Annex should be permanent.
Mr. ALAYZA (Peru) supported the report and withdrew his reservation
The representative of Uruguay, Mexico and Ireland supported the Report
without reservation, although they would have preferred Alternative B.
Mr. PAIVA (Brazil) withdrew his reservation and supported Article 75,
although his delegation would have preferred that the rules in the Annex be
made permanent.
Mr; AHMED (Pakistan) reluctantly accepted Article 75 as a compromise.
The CHAIRMAN declared the adoption of the Report of the Sub-Committee
and the text of Article 75 and the Annex. The point of principle mentioned by
the representative of South Africa would be considered at the next meeting.
3. CONSIDERATION OF THE RECOMMENDATION OF THE GENERAL COMMITTEE REGARDING
A NEW ARTICLE IN CHAPTER IX (Document E/CONF.2/C.6/94).
On the suggestion of Mr. FORTHOMME (Belgium) it was agreed that the
English text should be amended by translating it literally from the French
text.
The CHAIRMAN suggested that the proposed new Article be insterted
immediately after Article 99.
The recommendation was approved.
/4. CONSIDERATION E/CONF.2/C.6/SR.33
Page 3
4. CONSIDERATION OF THE REPORT OF THE WORKING PARTY ON THE QUESTION OF
Mr. MORTON (Australia), in reply to a question of the the CHAIRMAN, said that
the phrase "subject to confirmation by the Governments concerned" had been
inserted in the Report at the request of only one or two members. He did not
think it necessary that the phrase be included in the Report of the Committee;
Mr. SPEEKENBRINK (Netherlands) proposed the deletion of the words "both
or all" from the suggested interpretative note. The CHAIRMAN said that the
Central Drefting Committee would attend to this.
Mr. ROUCHDY (Egypt) said that his delegation, desiring to avoid any
misunderstanding which the interpretative note might cause wished to make
clear the attitude of the Egyptian government regarding the Sudan. In view
of the fact that there were no customs boundaries between Egypt and the Sudan
and that Egypt and the Sudan constituted one and the same territory, customs
matters concerning the Sudan were the exclusive concern of the Egyptian
government.
Mr. MARTEN (United Kingdom) said his delegation might also wish to make
a declaration in view of the statement by the representative of Egypt.
Mr. MORTON (Australia) pointed out that condominia had not been catered
for in the Charter and that the only object of the note was to show how they
could become members.
The Report of the Working Party was approved.
5. SECOND READING OF PARAGRAPHS 1 AND 2 OF ARTICLE 74 (POWERS AND DUTIES
OF THE CONFERENCE) (Page 12, Document E/CONF.2/45/Rev.1).
The Committee approved the revised text of these paragraphs.
6. SECOND READING ARTICLE 70 (STRUCTURE) (Page 12,
Document E/CONF.2/45/Rev.1)
The Committee approved the revised text of this Article.
1. SECOND READING OF ARTICLE 81 (THE TARIFF COMMITTEE) (Page 14,
Document E/CONF.2/45/Rev.1).
The Committee agreed that this Article should be deleted.
8. CONSIDERATION OF THE REPORT OF THE SUB-COMMITTEE ON ARTICLE 94
(GENERAL EXCEPTIONS) (Document E/CONF.2/C.6/93) AND THE AMENDMENTS
PROPOSED TO THE NEW ARTICLE 83 A BY THE DELEGATION OF INDIA
(Document E/CONF.2/C .6/93/Add.1), AUSTRALIA (Document E/CONF.2/C.6/99)
AND SOUTH AFRICA (Document E/CONF.2/C.6/100).
Mr. GOMEZ-ROBLES (Guatemala), Chairman of the Sub-Committee, said that
the Sub-Committee was to be congratulated on having reached unanimity on a
large number of issues. He particularly wished to thank both Mr. Tinoco
(Costa Rica), who presided over the first six meetings, and also the Secretary.
/Mr. COOMBS E/CONF.2/C.6/SR.33 Page 14
Mr. COOMBS (Australia) said that the Australian Government gave, the fullest
support to the United Nations as an Instrument for dealing with political
problems and wanted full recognition of its statue. The Charter was, however,
a set of rules governing the commercial relationships of countries in normal
circumstance and it was difficult to decide how far those general rules
should apply in other circumstances. His delegation did not include persons
who were familiar with the United Nations on its political side, nor those who
would normally advise his Government on matters of political nature.
Consequently, although he did not went a provision which would give still
more exceptions, he did not wish to deliver a final judgment.
Before anything was put in the Charter which laid down that economic
actions in exceptional circumstances should or should not be the subject matter
of the Charter, there should be further consultation and discussion with the
United Nations itself. The matters dealt with in paragraph of Article 83 A
might find a place in the relationship Agreement between the United Nations
and the Organization. The best course would be to direct the Interim
Commission to discuss these matters. His delegation had therefore proposed
the deletion of paragraph 3 and an amendment to the term of reference of
the Interim Commission.
Mr. HOLLOWAY (South Africa) stated that Article 88 A laid down "the
members also undertake without prejudice to any other international
agreement that they will not have recourse to unilateral economic measures
of any kind contrary to the provisions of this Charter". Thus the terms
of this Article were without prejudice to any other international Agreement,
.
but a second qualification was contained in the words "contrary to the
provisions of this Charter". It was therefore necessary to examine the other.
Articles of the Charter to see whether there were any limitations on the main
obligation not to have recourse to unilateral economic measures. If there were
no major derogation, Article 88 A would establish, so far as the Organization
was concerned, a cardinal principle of international organization: acceptance
by Members of the rule of law in their economic relationships.
Yet paragraph 3 of 83 A, far from establishing this principle was couched
in vague and equivocal language. His amendment was designed to rectify these
faults. The phrase "directly in connection with'' was particularly to be
condemned. If it was decided that a measure by a Member to come under this
phrase the matter would be referred to the United Nations but would at the
same time constitute a permanent exception to the Charter. The explanation
given in paragraph 15 of the Report was little more than an attempt to
.
disguise the fact that the principle of the rule of law was being abrogated. /The Committee E/CONF.2/C.6/SR.33
Page 5
The Committee could in its treatment of this most vital principle do
great damage to other worthy effects to establish international peace by means
of international co-operation; and it was not possible to proceed on the basis
of an obscurantist draft such as the present one. Article 88 A was a
confession of faith; the present Article 83 A would lead to a rejection of
that Confession of faith if there was a call to act upon it.
Mr. KARMARKAR (India) said that his Government attached great importance
to the result of the deliberations on Article 83 A. He would not speak on
his amendment to Article 94 but it would be necessary to examine Article 83 A
in order of see if that amendment was covered by it. So great was the
importance of this matter that his Government might in certain circumstances
be forced to come to some regrettable conclusions if this Article turned out
to be unsatisfactory.
While the unfettered operation of the rule of law was a desirable ideal,
it must be remembered that a country had a sovereign right to act in certain
way in trade matters when the underlying reasons for that action related to
matters unconnected with trade. The basic aim of the provisions was to
demarcate the jurisdiction of the Organization in respect of problems which
belonged essentially to the United Nations and the authority of the latter
body should in no way be impaired. The Article did nothing more and nothing.
lees than state the principle and the method of allocating the responsibility
of decisions as between the United Nations and the Organization.
The views of his delegation on this matter were not immutable and it
might be that its amendment would prove unnecessary. But apart from that
amendment, his delegation might wish to accept the draft subject to
further consideration after hearing the views of the Sub-Committee.
Mr. MARTEN (United Kingdom) said that the purpose of paragraph 3 of
Article 83 A was to ensure that the Organization would not become involved
in political issues. It proposed that any economic measure which had been
taken in direct connection with a politicel dispute should be referred
to the United Nations. The words "directly in connection with" had been used
to describe an economic measure, the motive of which was political. The
Interpretative Note was designed to lay down the procedure for deciding
whether or not the measure in question was directly in connection with the
political dispute.
The major point raised by the representative of South Africa had been that
the procedure suggested would be a negation of the rule of raw that no
unilateral measures should be taken without the prior approval of the relevant
international organization. It would be highly desirable if that rule of law
could be achieved but at the present time, no check existed on the freedom of
action of a country with respect to its essential political interests. Even
/the Charter E/CONF.2/C.6/SR.33 Page 6 the Charter of the United Nations did not contain the principle advocated by
the representative of South Africa.
The South African proposal would have partly the same effect as
paragraph 3, but it did not make clear whether or not economic measures
resulting from political disputes would be subject to Chapter VIII of the
Charter. The representative of South Africa had presumed that if the
Organization did not concern itself with such economic measures, they would
fall under the category of permanent exceptions to the Charter on which no
action would be taken; that would not be the case, for they would be dealt
with by the competent political bodies.
The major difficulty in respect to the Australian proposal was that its
adoption would make it impossible for soma nine countries to decide to accept
the Charter at Havana. Further, such an important matter could not possibly
be decided by a small group of representatives of the Interim Commission and
officials of the United Nations.
Mr. MACHADO (Cuba) agreed with the representative of South Africa as
to the importance of the principle contained in Article 88 A and also as
regards the ambiguity of paragraph 3 of Article 83 A which would permit
the violation of the former on the more pretext of an important political
problem.
Mr. BLUSZTEIN (Poland) also agreed that the principle contained in
Article 88 A should govern world economic relations. The Organization
should remain neutral concerning political issues, but the South African
representative had been right in saying that paragraph 3 as it now read
could be interpreted in a way which would result in flagrant opposition
to the provisions of Article 88 A.
Mr. FORTHOMME (Belgium) felt that the arguments put forward by the
representative of the United Kingdom could be used against the establishment
of any international law with the exception of the principle that "might is
right." There was no point in establishing the Organization unless it could
take decisions on all questions which effected international trade. The
South African proposal was clear and he supported it.
Mr. AHMED (Pakistan) agreed that it was necessary to include Article 88 A
in the Charter but felt that certain exceptions should be permitted to it.
It had to be remembered that the rule of law could be broken in other ways
than this and that the question under discussion was simply whether the power
of decision should rest with the Organization or with the United Nations. He
supported the remarks which had been mode by the representative of India.
Mr. AUGENTHALER (Czechoslovakia) said that if a country took justice
into its own hands, it did not matter from the point of view of international /law, E/CONF.2/C.6/SR.33
Page 7
law, whether warships, an army or economic measures were used. In the
Sub-Committee it had been agreed that the Organization should not give
political judgments and that economic questions which were linked to
political disputes should be referred to the United Nations. What had
not been decided was whether or not the Organization, as a United Nations
specialized agency, should draw its own conclusions from the settlement
of the political dispute in the United Nations. The Organization should not
risk destroying its own Charter under such circumstances and that, therefore,
its provisions should apply. |
|
GATT Library | hg332jk0521 | Sixth Committee: Organization : Summary record of Twenty-Fifth Meeting. Held at the Capital, Havana, Cuba, Thursday, 5 February at 3.00 p.m | United Nations Conference on Trade and Employment, February 6, 1948 | 06/02/1948 | official documents | E/CONF.2/C.6/SR.25 and E/CONF.2/C.6/SR.18-32 | https://exhibits.stanford.edu/gatt/catalog/hg332jk0521 | hg332jk0521_90050107.xml | GATT_147 | 1,252 | 8,408 | United Nations Nations Unies UNRESTRICTED E/CONF.2/C.6/SR.25
CONFERENCE CONFERENCE 6 February 1948
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
SIXTH COMMITTEE: ORGANIZATION
SUMMARY RECORD OF TWENTY-FIFTH MEETING
Held at the Capitol, Havana, Cuba,
Thursday, 5 February at 3.00 p.m.
Chairman: Mr. E. COLBAN (NORWAY)
.
1. SECOND READING OF ARTICLE 69 (Functions of the Organization)
(document E/CONF.2/C.6/5).
(a) Amendment to paragraph (c) proposed by the delegation of Czechoslovakia
(document E/CONF.2/C.6/12 Add.3).
It was agreed to postpone consideration of this amendment until the
Sixth Committee had received the Report of the Joint Sub-Committee of the
Second and Sixth Committees.
(b) Amendment regarding sub-paragraph (c) (i) proposed by the delegation
of Mexico (document E/CONF.2/C.6/12 page 4)
Mr. AMADOR (Mexico) stated that the matter of ensuring a just and
equitable treatment for foreign nationals and foreign enterprise tell within
the provisions of Article 12 of the Charter. The functions of the Conference
under Article 69 should be linked with the functions established, in Article 12,
but not duplicated. If this precise intention of Article 69 were made clear,
Mexico would not press for deletion of sub-paragraph (c) (i) of that Article.
Mr. KELLOGG (United States) pointed out that the same type of clause
appeared in practically all the constitutions of international organizations.
It would, be an emasculation of the organization to remove this entirely
natural provision, and would make it weaker than its sister organizations.
Mr. BLUSZTAJN (Poland) believed that the problem was not one of substance
but of drafting. The most important point in paragraph (c) was not in
sub-paragraph (i) but in (iii).
Mr. KARMARKAR (India) proposed that the words of paragraph (c) (i)
should be amended to read: "to assure just and equitable treatment....with
due regard for national interests..."
Mr. DAO (China) believed the sub-paragraph should be maintained.
Mr. AMADOR (Mexico) was willing to accept the proposal of the
representative of india if amended to read: "....with due regard to existing
national legislationn". E/CONF.2/C .6/SR.52
Page 2
Mr. MARTEN (United Kingdom) believed the addition of the words proposed
by the representative of Mexico would alter the meaning of the sub-paragraph,
and cause it to be over-ridden by any international legislation that was in
existence or might be introduced.
Mr. COUILLARD (Canada) and Mr. KOJEVE (France) supported the text as it
stood,
Mr GARCIA OLDINI (Chile) saw the importance of the Mexican amendment.
Without it paragraph (c) (i) might be used later as an escape clause to
disrupt the provisions of Article 12. He suggested the words "with due
regard to the provisions of Article 12" should be put at the end of
paragraph (c) (i) Instead, of the direct reference to national legislation.
In this he was supported by the representative of MEXICO.
Mr. MACHADO (Cuba) proposed that the words "...consistent with national
interested" should, be added to the Geneva text of paragraph (c) (i) ,
Mr. AMADOR (Mexico) said that the Mexican amendment to the Indian proposal
made it clear that nothing would be done which would be inconsistent with what
was laid down in Article 12. There should be no ambiguity.
Mr. FEDRANO (Argentina) supported the Mexican amendment to the Indian
proposal.
Mr. POLITIS (Greece) pointed out that if it were in a state's intereste
to come to an agreement, it would if necessary chage its own legislation.
Paragraph (c) was calculated to encourage international agreements, not to
oppose them.
Mr. MARTEN (United Kingdom) said any agreements regarding investments
would surely be satisfactory to both parties. There were stringent safeguards
in countries receiving capital particularly in Article 12. He would acceptt
no limitation andwould find it difficult oe see why the termsshould be
subject to the unilateral legislation of the receiving country. .
It vas agreed that an ad homc comittee consistfng oa the representative
of Mexico, the Unitngdomgdcan, the United States, Belgium adia, shouldhould
ss the the af-drxatf g oe paragraph (c) (i) of Article 69.
(c) PROPBY THE DELEGATION OF ITALY TO INSERT NEW SUB-PARAGRAPH:APH
EEN SUB-PARAGRAPHSPEIS (c) (i) and (c) (ii) (mentnm N/.2/C.6/12 page 4). )
. MONDELLOLt (Italy) withdrew his amendment, but reserved his rIght to
make a neralER declation on the matter at the Plenary Session of theeh
Conferen.e, -
COMMITTEESP BY JOINT..S-CO1 ' EE OF ME SECOND AND SIXTE COPCTTE .
MAT SUB-P c) (ili) be renumbered (c) (v) ,
(document E/CONF.2/C.2&6/AP.2).
.- Reforred:to the Central Draftieg Committee.
/(e) PROPOSAe2Y-O:X E/CONF.2/C.6/SR.25
Page 3
(e) PROPOSAL BY JOINT SUB-COMMITTEE SECOND AND SIXTH COMMITTEE FOR
NEW SUB PARAGRAPHS (iii) and (iv) (document E/CONF.2/C.2&6/A/W.2 page 4)
The Joint Sub-Committee text was approved.
(f) PROPOSAL BY JOINT SUB-COMMITTEE OF THE SECOND AND SIXTH COMMITTEES FOR
NEW PARAGRAPH (f) (document E/CONF.2/C.2&6/A/W.24 page 3).
Mr. KELLOGG(United States) reserved his position with regard to
paragraphs (d) (e) and (f) of Article 69 until the sub-committee's report
on paragraph 1 had been received.
The text of paragrph (f) of Article 69 was approved.
Mr. DAO (China) believed that the function of paragraph (f) suggested
an anti-climax if placed at the end of the Article and should be inserted
before sub-paragraph (d).
(B) PROPOSED REDRAFT OF ARTICLE 69 BY THE DELEGATION OF COSTA RICA
(document E/CONF.2/C.6/12/Add.17).
It was agreed that the proposal of Costa Rica, approved by the Sixth
Committee, together with that of China, should be referred to the Central
Drafting Comittee.
3. CONSIDERATION OF THE INTERIM REPORT OF THE SUB-COMMITTEE ON
ARTICLES 95, 96, 98, 99 AND 100 documents E/CONF.2/C.6/48/Rev.1 and
E/CINF.2/C.6/54).i
Article 95 "
Mr. TINOCO (Costa Rica) pointwd out vith regard to amendments which !
vere so important that they had to be aclepted by ail Members which wished
te continue in the Organization, that the Article did not state whether the
resolution, ammendatoryua&and tory oharacter dment, amencÙnent should be
taken by a simple majoa majority of twocrity of tw-thirds of the Members
present and voting. The situation might be clarifding the secondg the secon
sentence of paoagraph 2 te read: "The Conferencesmay, in ite resolution
approving a amendmeis under th-s paragraph, determine by an affirmative
vote o two-thirds of s.present and voting that the amendment amencnbnt
is of such a nature..."
Er. INI CIA OLDMI (Chile) agreed with the representative of Costa Rica,
but believed that awords:the yards; "...determisame twoe esme two-third
majorie-athat the emendment is of such a naoure..." weuld be sufficient.
AN CALIRYAAWpointed. out twat as is vas the mame resolutcon by whioh
an amendment was adopted, it must of course be covered by the same rules.
The rofetitiwo cf the Vards "two-thirds of she Membere", etc. seemed,
s.perf1uous.
Mi. MARTEN (United Kingdom) stated that the Report stressed the one
determination; whether or not the amendment wouli be accepted, or whether -
it required. susoension, it had ta be carrieajorityo-thirds mjo.rity.
/1k. AMADOR (México) E/CONF.2/C.6/SR.25
Page 4
Mr. AMADOR (Mexico) was in agreement with the Chairman, and also with
the interpretaion given by the representative of the United Kingdom. As
a member of the Working Group, he stated that the adoption of an amendment
and the decision that such an amendment was of a special nature were
simultaneous actions.
Mr. TINCOCO (Costa Rica) thought there would be no harm in adding the
words suggested by the representative of Chile. "The Conference may ..."
also implied that the Conference might not...
It was agreed that the discussion would be recorded in the minutes,
and that the Chilean proposal to add the words "by-the name two-thirds
majority" after the word "determine" in the second sentence of the second
paragraph of Article 95, should be accepted. |
|
GATT Library | vj561ty3127 | Sixth Committee: Organization : Summary record of Twenty-Fourth Meeting. Held at the Capital, Havina, Cuba, Tuesday, 3 february 1948, at 3.00 p.m | United Nations Conference on Trade and Employment, February 3, 1948 | 03/02/1948 | official documents | E/CONF.2/C.6/SR.24 and E/CONF.2/C.6/SR.18-32 | https://exhibits.stanford.edu/gatt/catalog/vj561ty3127 | vj561ty3127_90050106.xml | GATT_147 | 1,415 | 9,523 | United Nations Nations Unies UNRESTRICTED E/CONF.2/C.6/SR.24
CONFERENCE CONFERENCE 3 February 1489
ON DU ORIGINAL: ENGLISH
TRDEE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
Sixth COMMITTEE: ORGANIZATION
SUMMARY RECORD OF TWENTY-FOURTH MEETING
Held at the Capital, Havina, Cuba,
Tuesday, 3 february 1948, at 3.00 p.m.
chairman: Mr. E. COLBAN (Norway)
1. CONSIDERATION OF NOTIFICATION TO COMMITTEES AND SUB-COMMITTES BY
SUB-COMMITTEE ON CHAPTER VIII (Document E/CON.2/C.6/49/Rev.1)
Mr. COUILIARD (Canada), Chairman of the Sub-Committee on Chapter VIII,
said that the question of the relation between consultation and investigation
procedures in other parts of the Charter and their relation to the similar
provisions in Chapter VIII was fully discussed by the Sub-Committee.The
Sub-Committee had circulaedsd document E/CONF.2/C.6/49 to all Sub-Committees
and Committees of the Conference as an explanation of its interpretation of
the position Chapter VIII vis-a-vis the rest of the Charter. As, however,
some delegation had queried certain pointe of interpretation in that
document the matter was furthe eissused at a subsequent meeting and
documentt E/CONF.2/C.6/49/Rev.1 was drawn up. That document was supported
by all but one member of the Sub-Committee.
Mr. HOLMES (United Kingdom) considered that the alterations appearing
in the revised text if the document under review were of a very important
character. The phrase "unless the basis of the complaint is nullification
or impairment of a benefit accruing to a Member", appeared to him to be
rather odd in view of the disclaimer at the end ot the same sentence that the
righths of Members under Chapter VIII should not, unless it was so specified
themselves be impaired. The effect of the document in its present form would
be that the special procedures laid down in the case of a complaint or
investigation arising out of a restrictive business practice - precedures
which were provided for in Chapter V - could be short-circuited by recourse
immediately to Chapter VIII. He agreed that nothing should be dons to
infringe the ultimate right of member to make complaints about the
nullification or impairment of their benefits under the Charter according
to the provisions of Article 89. He did not feel, howeyer, that that meant
that the special procedures which might be laid down for mattars such as
/those mentioned in E/CONF.2/C.6/SR.24
Page 2
.
those mentioned in Chapter V in resped of restrictive business practices
should be wholly ignored. Be considered that if document E/CONF.2/C.6/49/Rev.1
was to be accepted as the view of the Sixth Committee it should contain a
statement that the procedure of Chapter V should be followed before
complainte were brought under Article 89, or a provision to that effect
included in Chapter V Itself.
Mr. KELLOGG (United States) did not agree with the remarks of the
representative of the United Kingdom, and said that in the opinion of his
delegation there was no question of short-circuiting any special procedures
set up under Chapter V. He suggested that the matter should be referred to
the Fourth Committee.
Mr. MONTEIRO DE BARROS (Brazil) agreed with the gist of the
notification prepared by the Sub-Committee on Chapter VIII. Resort to the
specific procedures of Chapter V should not in any way be construed as
precluding Members, once they had exhausted those procedures, from resorting
to the general procedures of Chapter VIII. As the matter was very complex
and the problems involved were difficult to settle beforehand in the
Conference, he suggested that it should be left to the Orgaization to
co-ordinate the procedures laid down in Chapter V and Chapter VIII.
Mr. RIVERA (Colombia), after briefly reviewing the document prepared
by the Sub-Committee, said that his delegation agreed with it, as it
considered that there should be co-ordination between Chapter VIII dealing
with General procedure and Chapter V which dealt with specific procedure.
Mr. KOJEVE (France) supported the statements made by the representatives
of the United Kingdom and of Brazil, and considered that the document before
the Committee vas fer from satisfactory. Instead of clarifying the
relationship between the General procedures of Chapter VIII and the epecific
procedures of Chapter V, the draft could be interpreted in various ways. It
was not clear whether the procedure laid down in Article 45 might be followed
at the sans time as the general procedure of Chapter VIII. It was also not
clear whether the procedure laid down in Article 45 might replace that of
Article 89. He supported the suggestion made by the representative of
Brazil that the natter should be left to the Oranization to settle, and the
Sixth Committee should submit a resolution to the Conference to that effect.
Mr. MACHADO (Cuba) proposed the adjournment of the debate until a
report had been received from the Sub-Comittee on Chapter VIII.
Mr. AMADOR (Mexico) said that his delegation considered that the Charter
should not contain any provisions which wouldl hinder any Member from having
access to the general procedures laid down in Chapter VIII, and supported
the text of the notification submitted by the Sub-Committee. That document
/would help E/CONF.2/C.6/SR.24
Page 3
would help in the definition of the procedure which should be followed by
those representatives who were at present working on Chapter V.
Mr. OFTEDAL (Norway) agreed with the representative of France. A
declaration regarding the relationship of Chapter VIII with procedures laid
down in other Chapter was unnecessary. It was obvious that specific
procedures should precede general procedures.
Mr. BLUBZTAJN (Poland) believed that the Sub-Committee was not
competent to make stipulations regarding decisions taken in Other Committees
and Sub-Committees. He proposed the deletion of the words "...unless the
basis of the complaint...a Member."
Mr. HAIDER (Transjordan) balieved that specific procedures should hold
priority over the procedures of Chapter VIII, but it should be left to the
Organization to decide. There should be no duplication of similar procedures.
Mr. HOLLOWAY (South Africa) pointed out that the Committee was concerned
with the structure of the Organization and not with its functions. It was
merely notifying other Committees as to how the matter stood in order to
assist them in their decisions, not presuming to dictate to them in any way.
Mr. FER (Turkey) pointed out that according to the definition in
Article 44 only those business practices which had harmful effect might be
taken into consideration; therefore the phrase "unless the basis of the
complaint...accruing to a Member..." was redundant.
Mr, RIVERA (Colombia) believed the phrase under discussion should either
be deleted, or it should be made clear that it referred exclusively to
Article 89. Specific procedures should be established as holding precedence
over Chapter VIII.
Mr. ABELLO (Philippines) agreed with the representatives of the
United Kingdom and Poland, but thought the whole matter could well be left
to the first regular session of the Conference of the Organization.
Mr. POLITIS (Greecs) said it should be made clear that first resort
should be made to specific procedures.
Mr. KARMARKAR (Inaia) pointed out that the Sub-Committee notification
attempted to harmonize the various situations that might arise. It was
not of a mandatory character, However, it should be made clear at the
present Conference and not left to the Organization to decide upon the scope
of Chapter VIII.
Mr. COULLARD (Canada) as Chairman of the Sub-Committee on Chapter VIII,
said that their notification was intended to clarity the situation between
consultation and other similar types of procedures laid down in the Charter
vis-à-vis those provided in Chapter VIII, and to state the opinion that that
/Chapter stood Page 4
Chapter stood behind the entire Chartar unless Committees or Sub-Committees
decided otherwise. There was no prejudice, to the procedures of Chapter V.
Mr. KOJEVE (France) stated that if it were agreed to send the
notification, he would support the proposal of the representative of Poland
to delete the sentence "unless the basis... accruing to a Member".
In reply to Mr. KARMARKAR (India) he said that other committees might
decide as to whether the two procedures might be used concurrently or be
mutually exclusive. He would accept the Philippine proposal.
Mr. AUGENTRALER (Czecholovakia) agreed that the words "UNLEESS... accruin
to a Member..." should be deleted.
The proposal of the Sub-Committee on Chapter VIII (document
E/CONF.2/C.6/49/Rev.1) was approved with the deletion of the words:
" unless- the basis of the complaint is nullification or impairment of
a benefit accruing to a Member....." by a majority of 26 to 14.
2. CONSIDERATION OF THE REPORT OF THE SUB-COMMITTEE ON PARAGRAPH 2 OF
ARTICLE 68 (MEMBERSHIP) (Document E/CONF.2/C.6/58)
After Mr. ALAYZA. (Peru) had reiterated his opposition to the Report,
the text prepared was approved. |
|
GATT Library | zc182th0128 | Sixth Committee: Organization : Text of Article 69 (Functions of the Organization) as approved on second reading up to 19 February 1948 | United Nations Conference on Trade and Employment, February 19, 1948 | 19/02/1948 | official documents | E/CONF.2/0.6/78 and E/CONF.2/C.6/76-103/ADD.1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/zc182th0128 | zc182th0128_90050003.xml | GATT_147 | 506 | 3,643 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/0.6/78 19 February1948
ON DU ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
SIXTH COMMITTE: ORGANIZATION
TEXT OF ARTICLE 69 (FUNCTIONS OF THE ORGANIZATION) AS APPROVED
ON SECOND READING UP TO 19 FEBRUARY 1948
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) to collect, analyse and publish information relating to
international trade, including information relating to commercial
policy, business practices, commodity problems and industrial and
general economic development;*
(b) to encourage and facilitate consultation among Members on all.
questions relating to the provisions of this Charter;
(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) to assure just and equitable treatment for foreign
nationals and enterprises;
(ii) to expand the volume and to improve the bases of
international trade, including measures designed to
facilitate commercial arbitration and the avoidance of
double taxation;
(iii) to carry out, by regional or other basis, having due regard
to the activities of existing regional or other
organizations, the functions specified in paragraph 2 of
Article 10;
(iv) to promote and encourage establishments for the technical
training that is necessary for progressive industrial and
economic development; and
* The proposal of the delegation of Argentina to add the word "social" before
the word "economic" has been postponed pending adoption of the Report of
the Sub-Committee on Article 1.
/(v) generally to E/CONF.2/0 .6/78
Page 2
(v) generally to achieve any of the objectives set forth in
Article 1;*
(d) generally to consult with and make recommendations and, as
necessary, furnish advice and assistance to Members regarding any
matter relating to the operation of this Charter, and to take any other
action necessary and appropriate to carry out the provisions of this
Charter;
(e) to co-operate with the United Nations and inter-governmental
organizations in furthering the achievement of the economic and social
objectives of the United Nations and the restoration and maintenance
of international peace and security;
(f) in such collaboration with the Economic and Social Council of the
United Nations and with other inter-governmental organizations as may
be appropriate, to undertake studies on the relationship between
world prices of primary commodities and manufactured products, to
consider and, where appropriate, to recommend international agreements
on, measures designed to reduce progressively any unwarranted
disparity in those prices.**
*Consideration of the proposal of the delegation of Czechoslovakia to
amend the introduction to sub-paragraph (c) to read "to promote
.international agreement on and measures designed . . . ."has been
postponed pending the adoption of the Report of the Joint Second and
Sixth Committees.
**The Central Drafting Committees is requested to take account of the
observation of the representative of China that sub-paragraph(f) should
be. placed before sub-paragraph (d) and of the rearrangement of Article 69
proposed by the representative of Costa Rica |
|
GATT Library | yz896dv9528 | Sixth Committee: Organization : Text of chapter VIII (Settlement of differences) as adopted by Sixth Committee and of annex to Article 95 and draft resolution arising out of chapter VIII proposed by the Sixth Committee. Chapter VIII. Settlement of diferences | United Nations Conference on Trade and Employment, March 1, 1948 | 01/03/1948 | official documents | E/CONF.2/C.6/89 and E/CONF.2/C.6/76-103/ADD.1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/yz896dv9528 | yz896dv9528_90050016.xml | GATT_147 | 1,796 | 11,585 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/89
ON DU 1 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: EGLISHN
SIXTH COMMITTEE: ORGANIZATION
TEXT OF CHAPTER VIII (SETTLEMENT OF DIFFERENCES) AS ADOPTED BY
SIXTH COMMITTEE AND OF ANNEX TO ARTICLE 95 AND
DRAFT RESOLUTION ARISING OUT OF CHAPTER VIII
PROPOSED BY THE SIXTH COMMITTEE
CHAPTER VIII. SETTLEMENT OF DIFERENCESF
Article 88A
Reliance on the Procedures of the Charter
1. The Members undertake, in relation to other Members of the Organization,
that they will not have recourse to any procedure other than the procedure
envisaged in this Charter for complaints and the settlement of differences
arising out of its operation.
2. The Members also undertake, without prejudice to any other international
agreement, that they will not have recourse to unilateral economic measures
of any kind contrary to the provisions of this Charter.
Article 89
Consulation and
1. If any Member considers that any benefit accruing to 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 result 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 Members
as it considers to be concerned, and the Members receiving them shall give
sympathetic consideration thereto.
2. The Members concerned may submit the matter arising under paragraph 1
to arbitration upon terms agreed between them; Provided that the decision of the
/arbitrator E/CONF.2/c.6/89
Page 2
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 inform the Organization generally of the
progress and outcome of any discussion, consultation or arbitration undertaken
under this Charter.
Article 90
Reference to the Executive Board
1. Any matter arising under Article 89 (1) (a) or (b) which is not
satisfactorily settled and any matter which arises under Article 89 (1) (c)
may be referred by any Member concerned to the Executive Board.
2. The Executive Board shall promptly investigate the matter and shall decide
whether any nullification or impairment in fact existed within the terms fo
Article 89 (1). It shall then take such of the following steps as may be
appropriate:
(i) decide that the matter dose not call for any action;
(ii) recommand further consultation to the Members concerned;
(iii) refer the matter to arbitration upon such terms as may be
agreed between the Executive Board and the Members concerned;
(iv) in any matter arising under Article 89 (1) (a) request the
Member concerned to take or discontinue such action as may be
necessary for the Member to conform to the provisions of the
Charter;
(v) in any matter arising under Article 89 (1) (b) or (c), make such
recommendations to Members as will best assist the Members
concerned and contribute to a satisfactory adjustment.
3. If the Executive Board considers that action under Article 90 (2) (iv) and
(v) is not likely to be efffective in time to prevent serious injury, and tht a
any nullification or impairment found to exit under Article 89 (1) (a ) is
sufficiently serious to justify such action, it may, subject to the proisionsv
of paragraph 1 of Article 90A, release the Members or affected 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.
4. The Executive Board may, the course of its investigation, consuIt
with such Members or inter governmental organization and upon such matters
within the scope of the Charter as it deems appropriate. It may also
consult any appropriate commission of the organization on any matter arising
under this Chapter.
/5. The E/CONF.2/C.6/89
Page 3
5. The Exective Board may bring any matter referred to it under this
Article, before the Conference at any time during its consideration ofthe
matter.
Article 90A
Reference to the Conference
1. The Executive Board shall, if requested to do so within thirty days by a
member concerned, refer to the Conference for review any action, decision or
recommendation by the Executive Board under paragraph 2 or 3 of Article 90.
Unless such review has been asked for by a Member concerned, Members shall be
entitled to act in accordance with any action, decision or recommendationo f
the Executive Board under paragraph 2 or 3 of Article 90. The Conference
shall by resolution confirm, modify or reverse such action, dlcision or
recommendation.
2. Were a matter arising under this Chapter has been brought before the
Conference by the Executive Board, the Conference shall follow the same
procedure as that set out in Article 90 (2) for the Executive 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 the Member or Members affected 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 tothe benefit which has
been nullified or impaired. If the Conference considers that any nullification
or impairment found to exist under Article 89 (1) (b) or (c) is sufficiently
serious to justify such action, it may similarly authorize a release of a
Member or Members to the extent and upon such conditions as will achieve the
objected set out in Article 90 (2) (v).
4. When any Member or Members suspend the performance of any obligation or
grant of any concession to another Member in accordance with paragraph 3, the
latter Member shall then be free not later than sixty days after such action
is taken, or after the opinion of the International Court of Justice is given,
to give notice of its withdrawal from the Organization. Such withdrawal shall
become effective upon the expiration of sixty days from the day on which such
notice is received by the Director-General.
/Article 91 E/CONF.2/c.6/89
Page 4
Article 91
Reference to the International Court of Justice
1. The Organization may, in accordance with arrangements made pursuant to
paragraph 2 of Article 96 of the Charter of the United Nations, request from
the International Court of Justice advisory opinions on legal questions arising
within the scope of the activities of the Organization.
2. Any resolution or decision of the Conference under this Charter shall,
upon the instance of any Member whose interests are thereby prejudiced, be
subject to review by the International Court of Justice through the means of
a request appropriate from, for an advisory opinion pursuant to the
Statute of the Court.
3. The request for an advisory opinion shall be accompanied by a statement
to be furnished by the Organization consultation with the Members
substantially interested, in accordance with the Statute of the International
Court of Justice, of the question upon which an opinion is required and
accompained by all documents likely to throw light upon the question.
4. Pending the delivery of the opinion of the International Court of Justice,
the resolution or decision of the Conference shall have full force and effect;
Provided that the Conference shall suspend the operation of any such
resolution or decision pending the delivery of the opinion where in the view
of the Conference damage difficult to repair would otherwise be caused to a
Member concerned.
5. The Organization shall consider itself as bound by the opinion the
International Court of Justice on any question referred by it to the Court.
The resolution or decision question shall be modified insofar as it does
not accord with the opinion of the International Court of Justice.
Article 92
Miscellaneous Provisions
1. Nothing in this Charter shall be constructed to exclude other procedurse
provided for in this Charter for consultation and settlement of differecesn
arising out of its operation. The Organization may regard discussion.
consulaton or investigation undertakne under any other provisions of the
Charter as fulfilling, either in whole or in part, any similar procedural
requirement in this Chapter.
2. The Conference and the Executive Board shall establish such rules of
procedure as may be necessary to carry out the provisions of this Chapter.
/Proposde E/CONF.2/c.6/89
Page 5
Any amendment to Chapter VIII of this Charter which may be recommended
by the Interim Commission after consultation with the International Court
of Justice and which relates to review by the International Court of matters
arising out of the Charter but not already covered in Chapter VIII shall
become effective upon receiving approval of the Conference at its first regular
session by affirmative vote of a simple majority of the Members;
Provided; that such amendment shall not provide for review by the
International Court of any economic or financial fact as established by or
through the Organization; and provided further that such amendment shall not
affect the obligation of Members to accept the advisory opinion of the
International Court as binding on the Organization upon the pointe covered by
such opinion; and provided further that, if such amendment involves an
alteration in the obligations of Members, any Member which does not wish to
accept it may withdraw from the Organization upon the expiry of sixty days from
the day on which written notice of such withdrawal is received by the
Director-General.
DRAFT RESOLUTION
THE UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
HAVING considered the relation of the International Trade Organization
and the International Court; and
HAVING provideded in Chapter VIII of the Charter, procedures for review
by the International Court of legal questions arising out of decisions and
recommendations of the Organizatin,o
RESOLVES that the Interim Commission of the International Trade
Organization, throuugh 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 provisions of the annex to
Article 95 of the Charter. |
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GATT Library | dx138mn7095 | Sixth Committee: Organization : Text of paragraphs 3, 4, 5, 6, and 7 of Article 74 (Powers and duties of the conference) as adopted by the Sixth Committee | United Nations Conference on Trade and Employment, March 2, 1948 | 02/03/1948 | official documents | E/CONF.2/C.6/91 and E/CONF.2/C.6/76-103/ADD.1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/dx138mn7095 | dx138mn7095_90050018.xml | GATT_147 | 332 | 2,269 | United Nations Nations Unies
CONFERENCE CONFERENCE E/CONF.2/C.6/91
ON DU 2 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGISHL
SIXTH COMMITTEE: ORGAIZATIONN
TEXT OF PARAGRAPHS 3, 4, 5, 6, AND 7 OF ARTICLE 74 (POWERS AD N
DUTIES OF THE CONFERENCE) AS ADOPTED BY THE
SIXTH COMMITTEE
Article 74
Powers and Duties
3. In exceptional circumstances not elsewhere provided for in this Charter,
the Conference may waive an obligation imposed upon a Member by this Charter;
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
Members of the Organization. The Conference may also by such a vote define
certain categories of exceptional circumstances to which other voting
requirements shall apply for the vaiver of obligations.
4. The Conference may prepare or sponsor agreements vith respect to any
matter within the scope of the Charter and by a two-thirds majority of the
votes cast, recommend such agreements for acceptance. Bach Member shall,
within a period specified by the Conference, notify the Director-General of
its acceptance or non-acceptance. In the case of non-acceptance, a statement
of the reasons therefor shall be forwarded with the notification.
5. The Conference may make recommendations to the various inter-governmental
organizations regarding any matter pertaining to the purpose and objectives
set forth in Article 1.
6. The Conference shall approve the budget of the Organization and shall
apportion the expenditures of the Organization among the Members is
accordance with a scale of contributions to be fixed time to time by the
Conference following such principles as may be applied by the United Nations.
If a maximum limit is established on the contribution of a single Member
with respect to the budget of the United Nations, such limit shall also be
applied with respect to contribution to the Organization.
7. The Conference shall determine the seat of the Organization and shall
establish such branch offices as it may consider desirable. |
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GATT Library | nb174pb7742 | Sixth Committee: Organization : Texts of Article 100 (Title and date of the chapter and deposit and authenticity of texts) and paragraph 2 of Article 83 (The staff) as approved on second reading | United Nations Conference on Trade and Employment, February 19, 1948 | 19/02/1948 | official documents | E/CONF.2/C.6/77 and E/CONF.2/C.6/76-103/ADD.1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/nb174pb7742 | nb174pb7742_90050002.xml | GATT_147 | 277 | 1,885 | United Nations Nations Unies
CONFERENCE CONFERENCE E/CONF.2/0.6/77
ON DU 19 February 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
TEXTS OF ARTICLE 100 (TITLE AND DATE OF TH CHAPTER AND DEPOSIT
AND AUTHENTICITY OF TEXTS) AND PARAGRAPH 2 OF ARTICLE 83
(THE STAFF) AS APPROVED ON SECOND READING
Article 100
Title and Date of the Charter and Deposit and Authenticity of Texts
1. This document shall be known officially as the Havana Charter. The
original text of the Charter in the official language of the United Nations
shall be deposited with the Secretary-General of the United Nations, who will
furnish certified copies of the texts to all interested Governments. Subject
to the provisions of the Statute of the International Court of Justice, such
text shall be equally authoritative for the purposes of the interpretation
of this Charter and any discrepancy arising from a difference between texts*
shall be settled by the Conference.
2. The date of this Charter shall be the day upon which the Final Act of
the United. Nations Conference on Trade and Employment is signed.
Article 83
The Staff
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 bass. The paramount
consideration in 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.
* The Central Drafting Committee is asked to consider whether the phrase
"discrepancy arising from a difference between texts" is entirely clear. |
|
GATT Library | dj941my2519 | Sixth Committee: Organization : Texts of Article 68 (Membership) and Article 69 (Functions of the organization) as adopted by the Sixth Committtee | United Nations Conference on Trade and Employment, March 1, 1948 | 01/03/1948 | official documents | E/CONF.2/C.6/88 and E/CONF.2/C.6/76-103/ADD.1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/dj941my2519 | dj941my2519_90050015.xml | GATT_147 | 966 | 6,699 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C. 6/88
ON DU 1 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
TEXTS OF ARTICLE 68 (MEMBERSHIP) AND ARTICLE 69 (FUNCTIONS OF
THE ORGANIZATION) AS ADOPTED BY THE SIXTH COMMITTTEE
Article 68
Membership
1. The original Members of the Organization shall be:
(a) these States invited to the United Nations Conference on Trade and
Employment whose Governments accept this Charter by....194.. in
accordance with paragraph 1 of Article 98, or if the Charter shall not
have entered into force by .......... 194., those States whose
Governments agree to bring this Charter into force in accordance with
the provision to paragraph 2 of Article 98;
(b) those saparate customs territories invited to the United Nations
Conference on Trade and Employment upon acceptance by ...... ..... 194...
of the Charter on their behalf by the competent Member in accordance
with paragraph 2 of Article 99, or, if this Charter shall not have
entered into force by ...........194.., these separate customs
territories upon acceptance of this Charter on their behalf by the
competent Member in accordance with the proviso to paragraph 2 of
Article 98. Should any of these customs territories have, by the time
it wishes to deposit an acceptance of the Charter, become fully
responsible for the formal conduct of its diplomatic relations, it
shall proceed under sub-paragraph 1 (a) of this Article.
2. Any other State whose membership has been approved by the Conference
shall become a Member of the Organization upon its accetance, in
accordance with paragraph 1 of Article 98 of this Charter, as amended up to
the date of such acceptance.
3. Any separate customs territory not invited to the United Nations
Conference on Trade and Employment, proposed by the competent Member having
responsibility for the formal conduct of its diplomatic relations and which
it autonomous in the conduct of its external commercial relations and of the
other matter provided for by this Charter and whose admission is approved by
the Conference shall become a Member upon acceptance of the Charter on its
behalf by the competent Member in accordance with Article 99, or, in the case
/of a: territory E/CONF.2/C.6/88
Page 2.
of a territory in respect of which the Charter has been accepted under the
said Article, upon such approval by the Conference, after it has thus become
autonomous.
4. The Conference shall determine, by a two-thirds majority of the votes
cast, the conditions upon which, in each individual case, memberehip 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.
5. 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.
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) to collect, analyse and publish information relating to
international trade, including information relating to commercial
policy, business practices, commodity problems and industrial and
general economic development;*
(b) to encourage and facilitate consultation among Members on all
questions relating to the provisions of this Charter;
(c) to undertake studies on and, having due regard to the objectives
of the Charter and the constitutional and legal system of Members,
make recommendations for, and promote international bilateral or
multilateral agreements on, measures designed
(i) to assure just and equitable treatment for foreign
nationals and enterprises;
(ii) to expand the volume and to improve the bases of
international trade, including measures designed to
facilitate commercial arbitration and the avoidance of
double taxation;
(iii) to carry out, by regional or other basis, having due regard
to the activities of existing regional or other
organizations, the functions specified in paragraph 2 of
Article 10;
* The proposal of the delegation of Argentina to add the word "social" before
the word "economic" has been postponed pending adoption of the Report of
the Sub-Committee on Article 1
/(iv) to promote E/CONF.2/C.6/88
Page 3
(iv) to promote and encourage establishments for the technical
training that is necessary for progressive industrial and
economic development; and
(v) generally to achieve any of the objectives set forth in
Article 1;*
(d) generally to consult with and make recommendations to the Members
and, as necessary, furnish advice and assistance to them regarding any
matter relating to the operation of this Charter, and to take any other
action necessary and appropriate to carry out the provisions of this
Charter;
(e) to co-operate with the United Nations and inter-governmental
Organizations in furthering the achievement of the economic and social
objectives of the United Nations and the restoration and maintenance
of international peace and security;
(f) in such collaboration with the Economic and Social Council of the
United Nations and with other inter-governmental organizations as may
be appropriate, to undertake studies on the relationship between
world prices of primary commodities and manufactured products, to
consider and, where appropriate, to recommend international agreements
on, measures designed to reduce progressively any unwarranted
disparity in those prices.**
* Consideration of the proposal of the delegation of Czechoslovakia to
amend the introduction to sub-paragraph (c) to read "to promote
international agreement on and measures designed " has been
postponed ponding the adoption of the Report of the Joint Second and
Sixth Committees.
** The Central Drafting Committee is requested to take account of the
observation of the representative of China that sub-paragraph (f) should
be placed before sub-paragraph (d) and of the rearrangement of Article 69
proposed by the representative of Costa Rica.
(document E/CONF.2/C.6/12/Add.17). |
|
GATT Library | nd595kc8557 | Sixth Committee: Organization : Texts of Article 68 (Membership) and Article 69 (Functions of the organization) as adopted by the Sixth Committtee | United Nations Conference on Trade and Employment, March 1, 1948 | 01/03/1948 | official documents | E/CONF.2/C.6/88 and E/CONF.2/C.6/76-103/ADD.1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/nd595kc8557 | nd595kc8557_90050015.xml | GATT_147 | 0 | 0 | ||
GATT Library | qs268vc2853 | Sixth Committee: Organization : Texts of Article 98 (Entry into force and registration) and Article 99 (Territorial application) as adoptde by the Sixth Committee | United Nations Conference on Trade and Employment, March 2, 1948 | 02/03/1948 | official documents | E/CoNF.2/C.6/90 and E/CONF.2/C.6/76-103/ADD.1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/qs268vc2853 | qs268vc2853_90050017.xml | GATT_147 | 646 | 4,191 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CoNF.2/c.6/90
ON DU 2 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGISHL
SIXTH COMMITTEE: ORGANIZATION
aTEXTS OF ARTICLE 98 (ENTRY INTO FORCE AND REGISTRATION) AND
ARTICLE 99 (TERRITORIAL APPLICATION) AS ADOPTDE
BY THE SIXTH COMMITEET
Article 98
Entry into Force and Registration
1. The Government of each State accepting this Charter shall deposit an
instrument of acceptance with the Secretary-General of the United Nations,
who will inform all governments represented at the United Nations Conference
on Trade and Employment and all Members of the United Nations not so
represented, of the date of deposit of each instrument of acceptance and of
the day on which this Charter enter into force. After the entry into force
of this Charter pursuant to the term of paragraph 2 of this Article, each
instrument of acceptance so deposited shall take effect on the sixtieth day
following the day on which it is deposited: Provided that for the purpose,
of the first regular session of the Conference any Government which has
deposited an instrument of acceptance pursuant to this paragraph prior to
the first day of the session, shall have the right to participate in the
Conference as a full Member.
2. This Charter shall enter into force:
(a) on the sixtieth day following the day on which a majority of the
Governments signing the Final Act of the United Nations Conference on
Trade and Employment have deposited instruments of acceptance pursuant
to paragraph 1 of this Article:
(b) if, during the period of one year from the date of signature of
the said Final Act, the Charter has not entered into force pursuant
to sub-paragraph (a) of this Article, then on the sixtieth day following
the day on which the number of Governments represented at the
United Nations Conference on Trade and Employment which have deposited
instruments of acceptance pursuant to paragraph 1 of this Article shall
/reach E/CONF.2/c.6/90 Page 2
reach twenty :*
(c) if this Charter shall not have entered into force by
30 September 1949, then the Secretary-General of the United Nations
shall institute consultation among those Governments which have
deposited acceptances to determine whether and on what conditions
they desire to bring the Charter into force.
3. Until 30 September 1949 no state or separate customs territory whose
government has signed the said Final Act shall be deemed to be a non-Member
under the term of Article 93.
4. The United Nations is authorized to effect registration of this Charter
as soon as it comes into force.
Article 99
Territorial Application
1. Each Government accepting this Charter does so in respect of its
metropolitan territory and of the other territories for which it has
international responsibility except such separate customs territories as
it shall notify to the Organization at the time of its own acceptance.
2. Each Member may at any tims accept this Charter in accordance with
paragraph 1 of Article 98 on behalf of any separate customs territory.
excepted under paragraph 1 of this Article.
3. Each Member shall take such reasonable measures as may be available to
it to assure observance of the provisions of this Charter by the Regionla
and local governments and authorities within its territory.
* The Central Drafting Comittee is requested to consider the following
drafting amendment to this paragaraph suggested by the representative
of Ireland:
"(b) if, during the period of one year from the date of
signature of the said Final Act, the Charter has not entered
into force pursuant to .sub-paragraph (a) of this Article, then
on the expiration of such period or on the sixtieth day following
the day on which the number of governments represented at the
United Nations Conference on Trade and Employment which have
deposited instruments of acceptance pursuant to paragraph 1 of
this Article shall reach twenty, whichever is the later:" |
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GATT Library | jt375vn1483 | South African letter | General Agreement on Tariffs and Trade, November 16, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 16/11/1948 | official documents | GATT/CP/3 and GATT/CP/3+Corr.1 | https://exhibits.stanford.edu/gatt/catalog/jt375vn1483 | jt375vn1483_90070091.xml | GATT_147 | 0 | 0 | |
GATT Library | nh110ys1204 | South African letter | General Agreement on Tariffs and Trade, November 16, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 16/11/1948 | official documents | GATT/CP/3 and GATT/CP/3+Corr.1 | https://exhibits.stanford.edu/gatt/catalog/nh110ys1204 | nh110ys1204_90070091.xml | GATT_147 | 768 | 4,903 | RESTRICTED
LIMITED B
GATT/CP/3
16 November 1948
ORIGINAL : ENGLISH
* 1J'
GRENERAL ARpEMENT ON TARIFFS AND TRADE
ngCOA o IPrties
South African Letter
The following letter dated 12 November has been received
by the Chairman of the Contracting Parties from the Department
ernalof Ex1Affairs, Union of South Africa:
veI h4vhe honour to inform you that the Government of
the Union of Shout Africa have decided to impose certain
restrictions on importations into South Africa in accord-
ance with the provisions of Article XII (2) (a) (1) and
XT (1) (b) of' the General Agreement on Tariffs and Trade.
2, The imposition of these restrictions has become
necessary asa result of the country's continuing and
increasingly high adverse balance of payments and the
consequent serious decline in its monetary reserves,
This decline was occasioned primarily by the following
factors
(i) the heavy wartime arrears in machinery equip-
ment, essential raw materials and consumers
goods;
(ii). the Unio'ns heavy import requirements of plant
and equipment fro industrial and mining purposes
which. are likely to remain at a high level for
many years to come;
(iii) the fact that prices of all imports have risen
considerably whereas the price of gold, which
plays a predominant role in the country s balance
of payments, has remained unchanged since 1941
with the result that gold exports are no longer
able to cover the country's normal trade deficit;
(iv) the increasing tendency on the part of the
MjJrity of overseas countries to restrict
imports of non-essentials which play an import-
ant part in the Union's export trade,
3. At various times over the past year the Government
of the Union of South Africa have endeavoured by means of
other measures such as, for example, the restriction of
bank credits for the importation of consumers goods, to
reduce the country's ,expenditure overseas. As the Union's
gold reserves continued to declines however, it eventually
became necessary to reduce the Reserve Bank of South
Africa's statutory gold reserve from 30 per cent to 25
per cent and to deduct from the Bank's liabilities its
foreign assets for the purpose of calculating the
reserve ratio. GATT/CP/3.
Page 2.
41, By these measures South Africa was able v mqolise a
considerable amort't of additional exchange resoreas which,
it was hoped, would have seen the country through until
the war-time arrears in its importation of consumer goods
had bean made good and its imports had fallen to a level
which would have enabled the Union to cover Lts iwfvourable
trade balance with its current gold produactioz pAus the
normal flow of capital investment to the eoi4*ry.
5. Unfortunately howev; the hopes of the Government
of tho Union of South Africa did not mlaterialise. As the
countryfs gold reserves have already been depleted to a
dangerous level, and'as the further unrestrictb4 Importation
of consumer goods would gravely prejudice the ftlonts ability
to secure its essential requirements of capital goods
fordeuvelopmental purposes) it has been deeit4 to take
inimediate steps to protect the country's finaecial structure and
its prospects, of healthy industrial development.
-6, The Governrment of the Union of South Afrlca are
anxious thhat their airport restrictions shall not disturb
normal channels of trade any more than is absolutely
necessary to remove the present disequilibriUm i the Unionts
balance of payments0
7. They hope that it Quill be possible to avoid the
introduction of an extensive system of import licensing.
For the time being they have decided, therefore, to seek
the necessary adjustments in the country's balance of
payments by means of the following measures:-
(i) the importation of certain typos of articles
(mostly luxury articles and goods produced in
South Africa in sufficient quantities) is to be
prohibited except under permit which will be
issued only in very exceptional circumstances.
This prohibition will apply to imports from all
countries,
(ii) in the case of all other goods, exchange for
imports from non-sterling sources will be rationed
on the following basis: during the twelve months
cor.uirencing 1st July, 1948, each importer will rscoi.q-
50 per cent. ofi the total amount of non-sterling
exchange received by him during 1947. As the Union is
not short of sterling, use has been made of the
provisions of Article XIV (l)(b) of the General
Agreement on Tariffs and Trade to apply the exchange
rationing only to currencies which cost the Union
gold, ieeo all non-sterling countries;
(iii) applications for supplementary exchange quotas for
the importation of essential capital goods,
equipment and raw materials will be entertained
and considered on their merits..,.."
1?? .
. I m
I
L 16-- - . a
II
I |
GATT Library | bm776rv2622 | Spech by the President of the Delegation for Peru at the final Plenary Metting | United Nations Conference on Trade & Employment, March 20, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade & Employment | 20/03/1948 | press releases | Press Release ITO/180 and ITO/73-194/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/bm776rv2622 | bm776rv2622_90200380.xml | GATT_147 | 1,437 | 9,421 | UNITED NATIONS CONFERENCE ON TRADE & EMPLOIMNT
Depertment of Public Intormation
Havana, Cuba.
HOLD FOR RELEAS. Press Release ITO/180 20 March 1948
NOT TO BE USED
UNTIL DELIVERY
SPECH BY THE PRESIDENT OF THE DELEGATION FOR PERU AT THE
FINAL PLENARY METTING
At the end of the work of the United Nations Conference on Trade and
Employment, the delegation for Paru wishes briefly to convey its feelings
and thougts on the accomplishments of the same, particularly in regard
to the Draft prepared in Geneva and, on the other hand, to the needs and
hopes of the under-developed countries, emong which, of course, Peru is to
be found.
The Peruvian delegation would think, with reference to the Geneva
Draft, that only a few substantial changes have been introduced by this
Havana Conference, and that after an intensive discussion lasting through
four months the said text has been improved. Therefore, and in this same
regard, the delegation for Peru considers that the spirit of the Havana
Charter, its form and its content, have remained basically unaltered,
although particular mention may be made of the following changes:
In the approval, of quantitative restrictions to be established
with a vies; to forward economic development, a certain degree of
automatism has been introduced, although only within a limited scope
(Article 13);
The Tariff Committee has been eliminated and its task and
mission have been entrusted to the ordinary bodies of the
Organization (Article .17 and 81);
The rules governing negotiations that tend to reduce customs
duties and to eliminate preferences have been improved (Article 17);
The provisions relating to discriminatory application of
quantitative restrictions in cases of disequilibria in balance of
payments have been relaxed (Article 23);
Subsidies to exports have been placed under greater control
(Article 28);
The voting system is to be on the basis of countries represented
in the Organization and not on any form of weighting (Article 76);
Greater freedom in relation with countries not Members of the
Organization has been accepted. (Article 93).
/Indeed, these ITO/180
Page 2
Indeed, these changes have improved the Geneva Draft for they have
given to it greater flexibility and have also satisfied in some cases.,
although only limatedly, the requests and hopes of under-developed
countries. These countries, consequently, feel that such insufficient.
accomplishments ought to be under-scored, particularly if we are to bear
in mind the narrow way in which Article 15 has -been finally drafted, and
that the provisions of Article 93, in this regard, diminish- even-further
the scope of said. Article 15.
On the other hand, the Havana Charter has sanctioned the survival of
the old preferential systems, which were established beforehand with
neither restrictnctions nor compensations, although these qualifications are
to be fully applied to new preferential agreements; and, furthermore, the
Charter, under some conditions, has accepted the imposition of quantitative
restrictions to imports. of agricultural products as well as subsidies. The
adoption of all these provisions and measures, which for some time have
damaged. and, without doubt, are still damaging the interests of
under.developed countries constitutes a great hindrance to these. same
countries, the economies of which substantially. depends on the export of
a few agricultural products, and, on the other hand, are lacking in the ways
and means, on account of their financial fiscal and customs,systems, to
pursue a similar or retaliatory policy.
Intending to steer away both from an unwarranted optimism and from an
exaggerated passimism, a fair and objective analysis of the achievements of
the Havana Conference leads the delegation for Peru to assert the ensuing
propositions.
The outstanding merit of the Havana Charter lies in its provisions of
a rather negative character, and these are, in the main., as follows:
obligation to negotiate the reduction of one kind- of trade barriers
(Tariffs and Preferences), regulation of other ones (Subsidies.) and the
prohibition to impose other (Quantitative Restrictions) although the latter
is subject to so may end so great exceptions that its benefits become
rather ideal than real, at least during.-the early years of the Organization.
In fact, it may be said, that the purpose has been to make it impossible the
establishment of new trade barriers, rather than to eliminate the ones-already
in existence. Now, perhaps this has been unavoidable, in view of the hard.
demands ofi international life and of the grert interests linked to situations
of fact, which may- have forced a compromise between the intended.ideal and
the bare realities of these. same interests and, demands.
/Also the provisions ITO/180
Page 3
Also the provisions tandig to stimulate international investment in
function of economic development should merit a special attention, for in
the Charter they appear as lacking in the effectiveness that the situation
would, require, whereas they could have been positive and valid measures in
order to bring forth a greater advancemant in international commerce.
From the very outset the delegation for Peru made disposition with
regard to the Charter quite clear. True to its stand in favour of a
world commerce ridden of old barriers and fetters, which are norms that
have traditionally inspired the trade policies of Peru, our delegation
.eels to have concurred from the very beginning, and all throughout, with
the aim of this Charter. However, our delegation considers, that it
would not be completely loyal to this principle if it were to silence its
regret at the grim fact that, by far, it has not been totally fullfilled.
In view of this failure, and its most determinate wishes notwithstanding,
our delegation was forced to accept the compromise frame of discussion that
has circumscribed this Conference, and. thereby it had to weigh, under this
new light, the most vital and urgent problems of this country.
Once in this terrain of discussion, the delegation for Peru would
have preferred, for instance, the obliteration of all the preferences in
existence and the acceptance, without exceptions, of the most-favoured-
nation treatment. Hewever, inasmuch as this possibility was promptly
discarded when the old preferences were accepted, it became necessary for
the underdeveloped countries to secure compensatory dispositions although
they often turned out to be both insufficient and incomplete, in the
possibility of establishing new preferential agreements in function of
economic development, duly conditioned to criteria, and largely limited by
guarantees and compensations to be awarded to other countries.
Likewise, the delegation for Peru was compelled to forfeit the hopes
it had. entertained to eliminate quantitative restrictions affecting
agricultural products for export, this being the reason for its acceptance
of inadequate and insufficient provisions, which within the dispositions
of Article 13, may allow Peru or any other underdeveloped country, to
promote and substentiate its economic development.
It should, therefore, be plainly stated that it has been the frame of
reference adopted by the Conference that has forced the delegation for Peru,
like many other delegation, to take the stand it has chosen. Since it was
evident that the Havana Charter was leaving room for old preferences and
quantitative restrictions, both of which had been established with neither
/controls nor ITO/180
Page 4
controls nor criteria ani regardless of the damage they may infict on
other nation, it was imperative to open at least one way to be used by
the answer and underdeveloped countries for the purpose of economic
developent. To prôceed otherise, so did the peruvian delegation
understand it, would have been morally inconsistent, even if the case is
that the new exceptions tothe principle of free trade are narrower than
the old ones.
The delegation for Peru feels that this Conference did not succeed in
obliterating to a desirable extent the barriers of international trade,
certainly not insofar as the greater and more substantial ones are concerned,
Nonetheless, in view of the provisions thereof, it may secure in the future
that these barriers be not further increased, and it may also pave the way
for a reduction of preferences that might lead to the total elimination as
well as to a diminution of customs duties and quantitative restrictions.
We are hoping and wishing that this be so, because, as it has already been
said, these principles have always inspired the trade policies of Peru.
To come to an ènd, Mr. President, the delegation for Peru cannot be
oblivious to the full meaning of both this Charter and its Organization.
Very much to the contrary; for under the trying circumstances of today and
considering the various perils surrounding our nascent international
economic organization, a Charter such as ours and the Organization which
it is to govern, indubitalIy are outstanding and promising achievements.
Loyal to her llongstending traditions, Peru will lend her most decided and
heartfelt support to this-greatand noble undertaking. |
GATT Library | nw394kt0055 | Special exchange Agreement- Revised draft : (revision of Drafts A and B in GATT/CEA/W.2 | General Agreement on Tariffs and Trade, November 5, 1948 | General Agreement on Tariffs and Trade (Organization) and Committee of Contracting Parties on Special Exchange Agreements | 05/11/1948 | official documents | GATT/CEA/W.4. and GATT/CEA/1-9 GATT/CEA/W.1-6 GATT/CEA.2/W.1-11 GATT/CEA/N.1-4 | https://exhibits.stanford.edu/gatt/catalog/nw394kt0055 | nw394kt0055_90310159.xml | GATT_147 | 3,558 | 23,175 | RESTRICTED
GATT/CEA/W. 4.
5 November, 1948,
English only.
GENERAL AGREEMENT ON TARIFFS AND TRADE
COMMITTEE OF CO CONTRACTING PARTIES ON SPECIAL EXCHANGE AGREEMENTS
SPECIAL EXCHANGE AGREEMENT- REVISED DRAFT
(revision of Drafts A and B in GATT/CEA/W.2.
The.Contracting Parties to the General Agreement on
Tariffs and Trade,
Considering that Article XV of the General Agreement on
Tariffs and Trade (hereafter called the General Agreement)
relates to exchange arrangements:
Considering that paragraph 6 of that Article provides that
any contracting party which is not a member of the International
Monetary Fund (hereafter called the Fund) shall, within a time
to be determined by the CONTRACTING PARTIES after consultation
with the Fund, become a member of the Fund, or, failing that,
enter into a special exchange agreement with the CONTRACTING
PARTIES:
Considering further that in accordance with paragraph 7 of
Article XV of the General Agreement such special exchange
agreement shall provide to the satisfaction of the CONTRACTING
PARTIES that the objectives of the General Agreement will not be
frustrated as a result of action in exchange matters by the
contracting party in question, and taking into account that
the terms of such agreement may not impose obligations on the
contracting party in exchange matters generally more
restrictive than those imposed by the Articles of Agreement of
the International Monetary Fund on members of the Fund:
Hareby .adopt the following as the text of the special
exchange agreement which shall be submitted for accession to all
contracting parties concerned (hereinafter called Acceding
Governments):
Article I
Change Stability and Orderly
Exchange Arrangements
The Acceding Government shall collaborate with the
CONTRACTING PARTIES to promote exchange stability, to maintain
orderly exchange arrangements with other contraoting parties
and to avoid competitive exchange alterations. page 2.
Article II
Determination of Par Value
1. Unless a par value is agreed in the instrument by which the
Acceding Government accedes to this Agreement, the Acceding
Government shall, within thirty days after the CONTRACTING, PARTIES
so requests communicate to them the par value of its currency based
on the rates of exchange prevailing at the time. The par value so
communicated shall be the par value of its currency for the
purposes of this Agreement unless within ninety days after the
request has been received (i) the Acceding Government notifies the
CONTRACTING, PARTIES that it regards the par value unsatisfactory,
or (ii) the CONTRACTING, PARTIES notify the Acceding Government that
in their opinion the adoption of such par value would not serve the
purposes of exchange stability and orderly exchange arrangements.
When such notification is given, the CONTRACTING PARTIES and the
Acceding Government shall, within a period to be determined by the
CONTRACTING PARTIES, agree upon a suitable par value.
2. Unless the Acceding Government has specified, in its act
of accession, par values for the separate currencies where
such exist in its territories the procedure of paragraph 1 shall
apply mutatis mutandis to the determination of par values for those
separate currencies.
3, The par value of the Acceding Government's currency shall be
expressed in terms of gold as a common denomination or in terms of the
United States dollar of the weight and fineness in effect on
July 1, 1944.
4, The CONTRACTING PARTIES will keep the Acceding Government
currently informed on the par values of the currencies of the other
contracting parties,
Article III
Gold Transactions based on Par Value
1. The Acceding Government shall not buy gold at a price above the par
value for its currency plus the margin permissible under this Article,
or sell gold at a price below the par value minus the margin permissible
under this article.
2. The margins permissible for transactions in gold by the Acceding
Government shall be the same as those permissible to contracting parties
which are members of the Fund, and the CONTRACTING PARTIES shall keep
the Acceding Government informed of such margins, page 3.
Article IV
Foreign Exchange Dealings Based on Parity
The maximum and the minimum rates for exchange transactions
between the currency of the Acceding Government and the
currencies of other contracting parties taking place within
the territories of that Acceding Government shall not differ
from parity:
(i) in case of spot transactions., by more than 1%, and.
(ii) in case of other exchange transactions, by a margin
which exceeds the margin for spot exchange transactions
by more than the CONTRACTING PARTIES consider
reasonable.
Article V
Obligations Regarding Exchange Stability
The Acceding Government undertakes through appropriate
measures consistent with this Agreement, to permit within their
territories exchange transactions between its currency and
the currencies of other contracting parties only within the
limits prescribed under Article IV. The Acceding Government,
whose monetary authorities for the settlement of International
transactions in fact freely buy, and sell gold within the
limits proscribed under Article III, shall be deemed to be
fulfilling this undertaking. -27 -
page 4.
Article VI
Changes in Par Value
1, The Acceding Government shall not propose a change in the
par value of its currency except to correct a fundamental
disequilibrium,
2. A change in the par value of the Acceding Government's
currency may be made only on the proposal of the Acceding
Government and only after consultation with the CONTRACTING PARTIES.
3, Cohen a change is proposed, the CONTRACTING PARTIES shall
first take into account the changes, if any, which have already
taken place in the par value of the Acceding Government's currency
as determined under Article II, If the proposed change, together
with all previous changes, whether increases or decreases,
(a) does not exceed 10% of the initial par value, the
CONTRACTING PARTIES shall raise no objection;
(b) does not exceed a further 10% of the initial par values
the CONTRACTING PARTIES may either concur or object, but
shall declare their attitude within ninetv-six hours if
the Acceding Government so requests;
(c) is not within (a) or (b), the CONTRACTING PARTIES may
either concur or object, but shall be entitled to a
longer period in which to declare their attitude.
4. The CONTRACTING PARTIES shall concur in a proposed change
which is within the terms of (b) or (a) of paragraph 3, if they are
satisfied that the change is necessary to correct a fundamental
disequilibrium. In particular, provided they are so satisfied,
they shall not object to a proposed change because of the
domestic, social or political policies of the Acceding Government.
5, If the Fund, in accordance with Article IV, Section 7 of
the Articles of Agreement of the Fund, makes uniform proportionate
changes in the par values of the currencies of Fund members, the
Acceding Government will change its par value proportionately,
unless it informs the CONTRACTING PARTIES within seventy-two hours
after it has been notified by the CONTRACTING PARTIES of the Fund's
action that it does not wish the par value of its currency to be
changed.
6, Changes in the par value made under paragraph 5 shall not be
taken into account in determining whether a proposed change falls
within (a), (b) or (c) of paragraph 3.
7. If the Acceding Government proposes a change in the par value of
its currency it shall be deemed, unless it declares otherwise, to be
proposing a corresponding change in the par value of the separate
currencies of all territories in respect of which it has specified par
values in terms of Article II or Article XIII. It shall, however,
be open to the Acceding Government to declare that its proposal relates
either to the metropolitan currency alone, or only to one or more
specified separate currencies, or to the metropolitan currency and one or
more specified separate curenoies. page 5 Xp* If the Acceding Government changes the par value of its
currency despite the objection of the CONTRACTING PARTIES, in
cases whore the CONTRACTING PARTIES are entitled to object, the
Acceding Government shall be doemed to have failed to carry out
its obligations under this Agreement.
Article VII
Avoidance of Restrictions
on Currant Payments
1. Subject to the provisions of Articles IX and XI the
Acceding Government shall not, without the approval of the CONTRACTING
PARTIES, impose restrictions on the making of payments and transfers
for current international transactions.
4 No Acceding Government shall engage in, or permit any of its
fiscal agencies referred to in paragraph 5 of Article XIII to engage
in, any discriminatory currency arrangements or multiple currency
practices except as authorized under this Agreement or approved by
the CONTRACTING PARTIES. If such arrangements and practices were
engaged in on January 1, 1948, (the date on which the General Agreement
was first provisionally applied), the Acceling Government shall consult
with the CONTRACTING PARTIES as to their progressive removal unless
they are maintained or imposed under paragraph 1 of Article XI in
which oase the provisions of paragraph 3 of that Article shall apply.
3. Exchange contracts which involve the currency of any contracting
party and which are contrary to the exchange control regulations
of that contracting party maintained or imposed consistently with
the Articles of agreement of the Fund or with the provisions of this
agreement shall be unenforceable in the territories of the
Acceding Government. In addition, the Acceding Government may, by
mutual accord with other contracting parties, co-operate in measures
for the purpose of making the exchange control regulations of either
contracting party more effective, provided that such measures and
regulations are consistent with this Agreement or with the Articles
of Agreement of the Fund as the case may be. page 6.
Article VIII
Controls of Capital Transfers.
1, The Acceding Government may exercise such controls as
are necessary to regulate international capital movements
but may not exercise these controls in a manner which will
restrict payments for current transactions or which will
unduly delay transfers of funds in settlement of
commitments, except as provided in Articles IX and XI.
2, The CONTRACTING PARTIES may request the Acceding
Government to exercise controls to prevent a large
or sustained outflow of capital if they consider that such
outflow would be likely to have results which might endanger
the objectives of this Agreement or of the General Agreement.
Article IX
Scarce Currencies
1. The Acceding Government is authorised to impose
temporarily, after consultation with the CONTRACTING
PARTIES, limitations on the freedom of exchange
operations in a currency which has formally been
declared scarce by the Fund in accordance with Article VII,
Section 3 (a) of the Articles of Agreement of the Fund.
Subject to the provisions of Articles IV and V of this
Agreement the Acceding Government shall have complete
jurisdiction in determining the nature of such limitations
but they shall be no more restrictive than is necessary to
limit the demand for the scarce currency to the supply
held by, or accruing to, the Acceding Government; and they
shall be relaxed and removed as rapidly as conditions
permit. The authorization here mentioned shall expire
whenever the Fund formally declares the currency in question
to be no longer scarce.
2, If the Acceding Government is imposing limitations
in accordance with paragraph 1 or 2, it shall give
sympathetic consideration to any representations by any other
contracting party regarding the administration of such
restrictions.
3. The CONTRACTING PARTIES shall request any contracting
party against which restrictions may be permitted under this
Article not to invoke the obligations of any engagement entered
into with the Acceding Government prior to this Agreement in
such a manner as will prevent the operation of the provisions
of this Article. page 7.
Article X
Convertibility of Balances Held
by Other Contracting Parties
1. The Acceding Government shall buy balances of its currency
held by another contracting party if the latter in requesting
the purchase represents:
(a) that the balances to be bought have been recently
acquired as a result of current transactions, or
(b) that their conversion is needed for making payments
for current transactions,
2, The Acceding Government shall have the option to pay
either in the currency of the contracting party making the request
or in gold,
3. The obligation under paragraph 1 shall not apply
(a) when the convertibility of the balances has been
restricted consistently with Article VII or VIII, or
(b) when the balances have accumulated as a result of
transactions effected before the removal by the
Acceding Government of restrictions maintained or
imposed under Article XI, or
(c) when the balances have been acquired contrary to the
exchange regulations of the According Government, or
(d) when the currency of the contracting party requesting
the purchase has been declares scarce and the
Acceding Government has boon so notified under
Article IX, or
(a) with the approval of the CONTRACTING PARIES,
in any particular circumstances in which the fulfilment
of the obligations of paragraph 1 of this article
would dangerously threaten exchange stability,,
provided that in such case the CONTRACTING PARTIES
shall pay due regard to the provisions of paragraph 7
of Article XV of the General Agreement. page 8.
Article XI
Transitional Period
1. In the post-war transitional period the Acceding
Government may, notwithstanding the provisions of any other
article of this Agreement, maintain and adapt to changing
circumstances (and, in the case of members whose territories
have been occupied by the enemy, introduce where necessary)
restrictions on payments and transfers for current
international transactions. The Acceding Government shall,
however, have continuous regard in its foreign exchange
policies to the intent of the General Agreement and of this
Agreement; and, as soon as conditions permit, it shall take
all possible measures to develop such commercial and financial
arrangements with other contracting parties as will facilitate
international payments and the maintenance of exchange
stability. In particular, the Acceding Government shall withdraw
restrictions maintained or imposed under this Article as soon
as it is satisfied that it will be able, in the absence of such
restrictions, to settle its balance of payments in a manner
which will not unduly impair its external financial position.
2, The Acceding Government shall notify the CONTRACTING
PARTIES, within thirty days of the entry into force of this
Agreement, whether it intends to avail itself of the transitional
arrangements in paragraph 1, or whether it is prepared to accept
the obligations of Articles VII and X, In the event that
the Acceding Government avails itself of the transitional
arrangements, it shall notify the CONTRACTING PARTIES as soon
as it is prepared to accept the above-mentioned obligations,
3. Not later than March 1, 1950, and in each year thereafter,
the CONTRACTING PARTIES shall report on the restrictions still in
force under paragraph 1. Not later than March 1, 1952, and in each
year thereafter, if the Acceding Government still retains any
restrictions inconsistent with Articles VII and X, it shall
consult with the CONTRACTING PARTIES as to their further
retention. The CONTRACTING PARTIES may, if they deem such action
necessary in exceptional circumstances make representations to
the Acceding Government that conditions are favourable for the
withdrawal of any particular restriction, or for the general
abandonment of restrictions, inconsistent with the provisions of
any other article of this Agreement or of the General Agreement.
The Acceding Government shall be given a suitable time to reply
to such representations, If the CONTRACTING. PARTIES find that
the Acceding Government persists in maintaining restrictions
which are inconsistent with the intent of this Agreement or of
the General Agreement, the Acceding Government shall be subject
to Article XXIII of the General Agreement. page 9,
Article XII
Furnishing of Information
1. In accordance with paragraph 8 of Article XV of the General
Agreement, the Acceding Government shall furnish the CONTRACTING
PARTIES with such information as they may require in order to
carry out their functions under the General Agreement and this
Agreement, including, as a minimum, national data on the
following matters:
(i) Official holdings at home and abroad of (1) gold, (2)
foreign exchange;
(ii) Holdings at home and abroad by banking and financial
agencies, other than official agencies, of (1) gold,
(2) foreign exchange;
(iii) Production of gold;
(iv) Gold exports and imports according to countries of
destination and origin;
(v) Total exports and imports of merchandise, in terms of local
currency values, according to countries of destination and
origin;
(vi) International balance of payments, including (1) trade in
goods and services, (2) gold transactions, (3) known
capital transactions, and (4) other items;
(vii) International investment position, i.e. investments ,ithin
the territories of the Acceding; Government owned abroad
and investments abroad owned by persons in the territories
of the Acceding Government so far as it is possible
to furnish this information;
(viii) National income;
(ix) Price indices, i.e. indices of commodity prices in wholesale
anr retail markets and of export and airport prices;
(x) Buying and selling rates for foreign currencies;
(xi) Exchange controls, i.e. a comprehensive Statement of exchange
controls in effect at the date when this Agreement enters
into force and details of subsequent changes as they occur;
(xii) Where official clearing arrangements exist, details of
amounts awaiting clearance in respect of commercial and
financial transactions, and of the length of time during
which such arrears have been outstanding.
2. In requesting information, the CONTRACTING PARTIES shall take
into consideration the ability of the Acceding Government to furnish
the data requested. The Acceding Government shall be under no
obligation to furnish information in such detail that the affairs of
individuals or corporations are disclosed. The Acceding Government
undertakes, however, to furnish the desired information in as
detailed and accurate a manner as is practicable, and, so far as
possible, to avoid mere estimates. -93- page 10.
Article XIII
Miscellaneous Provisions
1. The relevant explanation of terms contained in Article XIX
of the Articles of Agreement of the Fund shall apply to this
Agreement.
2. The term "Acceding Government" is intended to include the
Treasury, the central bank, the stabilization fund and other
similar fiscal agencies of .....
3. The CONTRACTING PARTIES shall at all times have the right
to communicate their views informally to the Acceding Government
on any matter arising under this Agreement,
4. The CONTRACTING PARTIES shall suspend the operation of
Articles IV and V of this Agreement for the same period of time
and to the same extent as the Fund suspends the operation of
corresponding provisions of its Articles of Agreement in
accordance with Article XVI, Section 1, of the Articles of Agreement
of the Fund, The CONTRACTING PARTIES designate the person or
persons who may validly act on their behalf.
5. For the purposes of this Agreement the Acceding Government
shall deal with the CONTRACTING PARTIES only through its Treasury,
central bank, stabilization fund or other similar fiscal agency,
and communications from the CONTRACTING PARTIES to the Acceding
Government shall be made only through that agency.
6. Without prejudice to Article XXXIII of the General
Agreement, whenever in the opinion of the CONTRACTING PARTIES
the Acceding Government fails to observe any of the provisions of
this Agreement, the CONTRACTING PARTIES shall make representations
to the Acceding Government, The Acceding Government shall be given
reasonable time to reply to such representations.
Article XIV
Amendments to this Agreement
Amendments to this Agreement may be suggested at any time by
any contracting party. Such amendments if adopted by the CONTRACTING
PARTIES will become effective , unless otherwise decided, thirty days
after their adoption, provided that any contracting party having
concluded a special exchange agreement may announce within the thirty
days period that it does not accept the changes contained in the
amendments. -94- page 11.
Article XV
Accession, Entry into Force and Termination
1. This Agreement shall be submitted for accession to
any contracting party which has notified the CONTRACTING PARTIES
that it does not intend to become a member of the Fund on or
before ... (or in the case of a Government which becomes a
contracting party after ,.... months after it has become a
contracting party) or which has not become a member of the Fund
on that date. Any contracting party concerned shall accede to
this Agreement not later than fifteen days after the CONTRACTING
PARTIES have received notification that it does not intend to
become a member of the Fund, or not later than ..... as the case
may be,
2, An act of accession may specify:'."
(a) the initial par value of the contracting party concerned
if at the time of accession the contracting party concerned
and the CONTRACTING PARTIES have agreed on such par value,
(b) whether the contracting party concerned intends to avail
itself of the transitional arrangeements in paragraph 1 of
Article XI or whether it accepts the obligations of
Articles VII and X,
(c) whether the contracting party concerned accepts the Agreement
in respect of any of its colonies, overseas territories,
territories under its protection, suzerainty or authority or
trust territories of which it is the administering authority,
and, if so, par values in teams of the Acceding Government's
own currency for the separate currencies, where such exit,
of such territories.
3. This Agreement shall enter into force on the day on which it
has been acceded to by the Acceding Government and CONTRACTING
PARTIES. The original of the act of accession shall be deposited
with the Chairman of the CONTRACTING PARTIES and a signed copy shall
be furnished to the Acceding Government.
4. This Agreement shall terminate if and when the Acceding
Government enters the Fund or withdraws from the CONTRIACTING PARTIES. |
GATT Library | pg411nf9217 | Special protocol modifying Article XIV of the General Agreement on Tariffs and Trade | March 22, 1948 | 22/03/1948 | official documents | GATT/1/55 and GATT/1/47-57+47/Rev.1 53/Add.1,2 | https://exhibits.stanford.edu/gatt/catalog/pg411nf9217 | pg411nf9217_90310335.xml | GATT_147 | 2,228 | 14,518 | RESTRICTED GATT/1/55
22 March 1948
ORIGINAL : ENGLISH
SPECIAL PROTOCOL MODIFYING ARTICLE XIV OF THE
GENERAL AGREEMENT ON TARIFFS AND TRADE
The Governmets of the Commonwealth of Australia, the Kingdom of Belgium.
Canada, the Republic of Cuba the French Republic, the Grand-Duchy of
Luxembourg,. the Kingdom of the Netherlands, 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
The Governments of the United States ot Brazil, Burma, Ceylon, the
Republic of Chile, the Republic of China, the Czechoslovak Republic, India,
Lebanon, New Zealand, the Kingdom of Norway, Pakistan, Southern Rhodesia,
Syria, and the Union of South Africa, acting in their capacity of signatories
of the Final Act adopted at the conclusion of the Second Session of the
Preparatory Committee of the United Nations Conference on Trade and
Employment which authenticated the text of the General Agreement on Tariffs
and Trade,
BEING DESIROUS of modifying the text of Article XIV of the General.
Agreement on Tariffs and Trade, in the light of the text of the Havana
Charter for an International Trade Organization., which was authenticated by
the Final Act of the United Nations Conference on Trade & Employment
HEREBY AGREE as follows:
I. On and. after January 1,1949Article XIV of the General Agreement on
Tariffs and Trade shall read as follows:
/'Article XIV GATT/1/55
Page 2
"Article XIV
Exceptions to the Rule of Non-discrimination,
1. (a) The contracting parties recognize that the aftermath of the war
has brought difficult problems of economic adjustment which do not permit
the immediate full achievement of non-discriminatory administration of
quantitative resitrictions and therefore require the exceptional
transitional period arrangements set forth in this paragraph.
(b) A contracting party which. applies restrictions under Article XII
may, in the use of such restrictions, deviate from the provisions of
Article XIII in a manner having equivalent effect to restrictions on
payments and transfers for current international transactions which that
contracting party may at that time apply under article XIV of the
Articles of Agreement of the International Monetary Fund, or under
an analogous provision of a special exchange agreement entered into
pursuat to paragraph 6 of Article XV.
(c) A contracting party which is applying restrictions under
Article XII and which on March 1, 1948 was applying import restrictions
tc safeguard its balance of payments in a manner which deviated from
the rules of non-discrimination set forth. in Article XIII may to the
extent that such. deviation would not have been. authorized. on that date
by sub-paragraph (b), continue so to deviate, and may adapt such
deviation to changing circumstances.
(d) Any contracting party which before July 1, 1948 has signed the,
Protocol of Provisional Application agreed upon. at Geneva on October 30, 19
and. which by such signature has provisionally accepted the principles of
paragraph I of Article 23 of the Draft Charter submitted to the-
United Nations Conference on Trade and Employment by the Preparatory
Committee may elect, by written notice to the CONTRACTING PARTIEST!IG PAR;T33
before January 1, 1949., to be governed by the provinsions of Anex J of
tiia Agreement, which embodies such principles, in lieu of the
provisions of sub-paragraphs (b) and (c) of this paragraph. The
provisions of sub-paragrapcs (b) and (o) shall not be applicable to
contracting parties which have so elected to be governed by the
pronnesions of Amex J; andconversely, the provisions hallnnex J sba).,
/not be applicable GATT/1/55
Page 3
not be applicable to contracting parties which have not so elected.
(e) The policies applied in the use of import restrictions
under sub-paragraphs (b) and (c) or under Annex J in the postwar
transitional period shall be designed to promote the maximum
development of multilateral trade possible during that period and to
expedite the attainment of a balance of pyments position. which will
no, longer require resrot to the provisions of Article XII or to
transitional change arrangements.
(f). A.- contracting party may devieate from. the provisions, of
Article XIII , pursuant to sub-paragraphs (b) or (c) of this paragraph
or pursuant to Annex J, only so long as it is availing itself of the
post-war transitional period. arrangements under-Article XIV of the
Articles of Agreement of the International Monetary Fund, or of
an analogous provision of a special exchange agreement entered. into
under paragraph 6. of Article XV.
(g).- Not later than March 1, 1950 (three years after the date
on which the, International Monetary Fund began operations) and in
each year thereafter, the CONTRACITING PARTIES shall report on any
action .still being taken by contracting parties under sub-pargraphs (b)
and (c) of this paragragaph. or under Annex 3. In. March. 1952, and in
each year thereafter, any contracting party still, entitled to take,
action under the provisions of sub-paragraph (c) or of Annex J shall
consult the CONTRACTING PARTIES as to any deviations from Article XIII
still in: force- pursuant to such provisions and. as to its- continued
resent to such provisions. After March 1,1952 any action under
Annex J going beyond the maintenance in force of deviations, on which
such consultation. has taken place and which the CONTRACTING PARTIES
have not found. unjustifiable or their adaptation to changing -
circumstances shall. be subject to any limitations of. a general.
character which- the CONTRACTING PARTIES may prescribe in the light.
of the contracting party's circumstances
(h) The CONTRACTING PARTIES may, if they deem such action necessary
in exceptional circumstances make-representations to ary contracting
party entitled to take action under the provisions of sub-paragraph (c)
that conditions are favourable for the termination. of any particular
deviation from the provisions of Article- XIII or for the general
abandonment of deviations, under the.prorovisions of that
sub.paragraph After March 1, 1952, the CONTRACTING PARTIES may make
/such- GATT/1/55 Page 4 such representations, in exceptional circumstances, to any contracting party
entitled to take action under Annex . The contracting party shall be given
a suitable tine to reply to such representations-. If the CONTRACTING PARTIES
find that the contracting party persists in unjustifiable deviation- from the
provisions of Article XII, the contracting party shall within sixty days,
limit or terminate such deviations as the CONTRACTING PARTIES may specify.
2. Whether or not its transitional period arrangements have terminated
pursuant to paragraph 1 (f), a contracting party which is applying import
restrictions under Article XII may, with the consent of the CONTRACTING PARTIES
temporarily deviate from the provisions of Article XIII in respect of a small
part of its external trade where the benefits to the contracting party or
contracting parties concerned substantial outweigh any injury, which. may
result to the trade of other- contracting parties.
3. The provisions of Article XIII shall not prealude restrictions in
accordance with the provisions of Article XII which either-
(a) are applied against imports from other countries, but not as among
themselves, by a group of territories having a common quota in the
International Monetary Fund, on condition that such restrictions
are in all other respects consistent with the provisions of
Article XIII, or
(b) - assist, in the period until December 31, 1951, by measures
not involving substantial departure from the provisions- of
Article XIII, another country whose economy has been disrupted by
war. . : .
i~. A contracting party applying import retrictions- under Article Xo shall nq
be precluded, by AIticles XZ-XV of this Afrom ment m applying- moasures tz
direct its experts in anner asa mmer as, to itsrease rtr earnings of- currencies
which it can use without deviatioe from th prov siticle XIII XI
5. A contracting party shall not be precluded by XrtXclos YI-ZV cf this
Agreement from applying quentitativo restrictions
(a) hivingnequlvalemt effect to exchange restauctions c-thorized under
Section 3 (b) ef AIticlo e A! of tsaArtigreement of the ment of t
Internatioaayl Monet=r Fund; or
(S) under the preferential arrangements providednnfor in Aex A of
this. Agreement, pending th outce e of thc@ negotiations referred to
therein."-
1i. The fInlowing Ihterpretative Note shall be inserted in Annex I to the,
General Aoneemrnt ca Taxiffsean Trado: .
le Artilel XIV
1gaga-ph I (q)-
The provisiragraph a p 1 (g) shall not atthoriNTRACTING PARTIESUi;P
/uireir GATT/1/55
Page 5
require that the procedure of consultation. bo followed for individual
transactions unless the transaction is of so large a scope as to constitute
and act of general policy. IT that event, the CONTRACTING PARTIES shall,
if the contracting party so requests, consider the transaction, not individually,
but in relation to the contracting party's policy regarding imports of the
product in question taken as a whole.
Paragraph 2
One of the situations contemplated in paragraph 2 is that of a contracting
party holding balances acquired as a result of current transactions which it finds
itself unable to use without a measure of discrimination. "
/ANNEX J GATT/1/55
Page 6
III. The following Annex shall be added to the General Agreement on Tariffs.
and. trade:
"ANNEX J
Exceptions to the Rule of Non-discrimination.
(Applicable to contracting parties who so elect, in accordance with
paragraph 1(d) of Article, XIV, in lieu of paragraphs 1 (b) and 1 (c) of
Article XIV.)
1. (a) A contracting party applying import restrictions under Article XII
may relax such restrictions in a manner which departs from the provisions of
Article XIII to the-extent necessary to obtain additional imports above the
total of imports which it could afford in the light of the requirement
of paragraphs 3 (a) and 3 (b) of Article XII if its restriction were fully
consistent with the provisions of Article XIII; Provided that
(i) levels of delivered. prices for product so imported are not
established. substantially higher than. those ruling for comparable
goods regulary available from other contracting party- countries,
and that any excess of such price levels for products so imported.
is progressively reduced. over a reasonable period;
(ii) the contracting party taking such action. does not do so as part of
any arrangement by which the gold or convertible currency which the
contracting party currently receives directly or indirectly from it:
exports to other contracting parties not party to the arrangement in
appreciably reduced below the level it could otherwise have been
reasonably expected to attain;
(iii) such action does not cause unnecessary damage to the commercial or
economic interests of any other contracting party,
(b) Any contracting party taking action under this paragraph- shall
observe the principles of sub-paragraph (a). A contracting party shall desis
from transactions which prove to be inconsistent with that- sub-paragraph but
the contracting party shall not be required to satisfy itself, when it is not
practicable to do so, that the requirements of that sub-paragraph are fulfill
in respect of individual transactions.
2. Any contracting party taking action under paragraph 1 of this Annex shall
keep the CONTRACTING PARTIES regularly informed regarding such action and. shall
provide such available relevant information as the CONTRACTING PARTIES may
request.
/3. If at any time GATT/1/55
Page 7
3. if at any time the CONTRACTING PARTIES find. that import restrictions are
being applied by a contracting party in a discriminatory manner inconsistent
with the exception provided for under paragraph 1 of this Annex, the
contracting party shall, within sixty days, remove the discrimination or modify
it, as specified. by the CONTRACTING PARTIES;- Provided that any action. under
Paragraph 1 of this Annex, to. the extent that it has been approved by the
CONTRACTING PARTIES at the request of a contracting party under a procedure
analogous to that of paragraph 5 (c) of Article XII, shall not be open to
challenge under this paragraph or under paragraph 5 (d) of Article XII on the
ground. that it is inconsistent with the provisions of Article XIII.
Interpretative Note to Annex J
It is, understood that . the fact that a contracting party is operating under
the provisions of paragraph 1 (b) (1) of Article XX does not preclude that
contracting party from. operation under this Annex, but that the provisions of
Article XIV (including this annex) do not in any way limit the rights of
contracting parties imder paragraph 1 (b) (i) of Article XX."
/m, This Protocol GATT/1/55
Page 8
IV. This Protocol shall rein open for signature at the Headquarters of the
United Nations until June 1, 1948 on behalf of any government named in the
preamble of this Protocol which has not signed it on this day.
V. Notwithstanding the provisions of Article XXX of the General Agreement
on Tariffs and Trade, this Protocol shall enter into force on the day on which
it has been signed by all the Governments which are at that time contracting
parties of the General Agreement on Tariffs and Trade,
Signature of this Protocol by any Government which is not at the time
of signature a contracting party to the General Agreement on Tariffs and Trade
shall serve to authenticate the texts of the, modifications of the General
Agreement on Tariffs and Trade provided for in this Protocol.
The original of this Protocol shall be deposited with the Secretary-
General of the United Nations.which is authorized to register the Protocol on
1 January 1949.
IN WITNESS WHEREOF the respective representatives duly authorized have
signed. the present Protocol.
DONE at Havana, in a single copy, in the English and French languages,
both texts authentic, this twenty-fourth day of March, 1948. |
|
GATT Library | px773jc0048 | Speech by Dr. H. Coombs, head of the Australian Delegation before Final Plenary Session | United Nations Conference on Trade & Employment, March 22, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade & Employment | 22/03/1948 | press releases | PRESS RELEASE ITO/212 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/px773jc0048 | px773jc0048_90200403.xml | GATT_147 | 922 | 5,933 | UNITED NATIONS CONFERENCE ON TRADE & EMPLOYMENT
Department of Public information
Havana, Cube
ADVANCE TEXT PRESS RELEASE ITO/212
HLD FOR RELEASE 22 March 1948
CHECK AGAINST DELIEVERY
SPEECH BY DR. H. COOMBS, HEAD OF THE AUSTRALIAN
DELEGATION BEFORE FINAL PLENARY SESSION
The Australian delegation, like other delegation, has labored
here to draft a charter upon which can be built healthy commercial
relations between nations. My Government has yet to consider this
Charter. In doing so, it will decide whether under if the Australian`
pepple can enjoy security and growing economic opportunity. It is
naturalthat we, like other delegations, should find elements in this
Charter with which we do not agree. All previous attempts consciously
to promote freer and expanding international trade failed because they
ignored the need to provide means by which obligations can be reviewed
in the light of changing circumstances, We fear that even in its
present form machinery provided in the Charter for the review of
obligations in the event of widespread unemployment and the collapse
of effective demand for the products of international trade will prove
clumsy and ineffective. Similarly, while my Government looks with
favor upon the establishment of Customs Unions and free trade areas,
it fears that the attempt to write into the Charter precise definitions
and rigid requirements to govern situations which cannot be precisely
foreseen may stultify their development or impose unwarranted hard-
ships upon other countries. These difficulties my Government will
have to take into account in making its over-all assessment of the
value of the Charter to Australia and to the world. I cannot predict
the outcome of that assessment, but I can assure this Conference that
by Government believes profoundly that the future peace and welfare
of the world depends upon the steady development of international
co-operation in economic matters, and that it will give full weight
to this belief in reaching its final decision.
(MORE) ITO/212
It has been the privilege of my delegation to participate in the
work of preparing this Charter in London, New York, Geneva and now
in Havana. We have seen it merge slowly, and shaped by
conflict by argument, and by compromise. From the first day in
London there has been apparent through all this conflict and
argument a consistent pattern indicating a single fundamental
issue. The first draft of the Charter was presentd to us as
means of freeing international trade from the restraints of national
commercial policies. There underlay it the conception of economic
freedom as essantially the absence of restraint. To many of us
more absence of restraint, while an important element in freedom, is,
taken by itself, a negative and empty thing, Many of us are by
experience and philosophy canvinced that if economic freedom is to be
a real and living thing, it must mean economic opportunity. We have
been made aware that positive opportunity does not automatically
come to the under-developed, the under-privileged, the unemployed,
and the the poverty-stricken. For the peoples of most countries of the
world at least, positive action must be taken to create it. Further-
more, we have been aware that positive action to create real economic
opportunity may sometimes limit the complete freedom from restraint
of those who already enjoy full economic opportunity.
Throughout all the battles of the Charter, therefore, we have
seen this clash between two conceptions of economic freedom and have
directed our efforts to increasing the positive content of the
Charter so as to establish a just balance between their. To our mind
it is the measure of the success of the work of those Conferences that
the Charter, while still recognising that arbitrary and purposeless
restraint is civil, racognises also the right, and, indeed, the
obligation of governments to create economic opportunity for their
people by maintaining high levels of employment and by offering
greater security and stability of prices and of incomes for their pri-
mary producers. For it is-upon these things that in the long run
will depend the capacity of the peoples of the world to buy in the
international markets of the world.
international markets of the world. (MORE) - 3 - ITO/212
Mr. Chairman, my delegation believes that the Charter
makes it possible for an International Trade Organization to be set
to
up which will contribute substantially/the fuller achievement of both
elements in a complete and balanced conception of economic freedom:
to contribute to to the elimination of unnecessary restraints and at
the same time to help build real economic opportunity for the nations
and peoples of the world, However, the Charter can do no more than
make this possible. What the International Trade Organization will
in fact achieve depends upon the determination and good will of the
nations which constitute it. Throughout this and previous Conferen-
ces concerning the preparation of the Charter, the delegations here
have learned to recognise the justice of the aspirations and the
reality of the problems of peoples other than our own and so to make
provision for their achievement and solution. This is a habit which
cannot be long sustained without regular exercise. We cannot assume
that the International Trade Organization will automatically con-
tinue along the read which we have so laboriously learned to recognize.
The price of freedom is eternal vigilance, and the ITO can build and
guard economic freedom in its fullest and truest sense only if we,
the nations which have created it, work with determination and under
standing, with tolerance and humanity to reserve and to develop what
to have here created. |
GATT Library | tm509gc7548 | Speech by Mr. A. B. Speekenbrink of the Netherlands Delegation at final act ceremony | United Nations Conference on Trade & Employment, March 23, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade & Employment | 23/03/1948 | press releases | PRESS RELEASE ITO/217 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/tm509gc7548 | tm509gc7548_90200410.xml | GATT_147 | 612 | 3,623 | UNITED NATIONS CONFERENCE ON TRADE & EMPLOYMENT
Department of Public Information
Havana, Cuba
ADVANCE TEXT PRESS RELEASE ITO/217
HOLD FOR RELEASE 23 March 1948
CHECK AGAINST DELIVERY
SPEECH BY MR. A. B. SPEEKENBRINK OF THE NETHERLANDS
DELEGATION AT FINAL ACT CEREMONY
Mr. Chairman and Fellow Delegates,
It is with the greatest pleasure that I move a resolution on
behalf of this Conference so convey our hearfelt thanks and lasting
gratitude to the Government and the People of Cuba, who have been our
hosts during the last four months. Cuban hospitality, of which I had
heard before I came to this delightful country, has beaten, in my
view, any known record, and the way all of us have been received,
helped and feasted was most remarkable as well as most gratifying,
Mr. Chairman, there is an old saying that one must be prepared to
live up to his sins. There may have been some Delegates who, at the
time I suggested in Geneva selecting Havana as the place for this
Conference, possibly had some misgivings, and maybe a few of time
thought in fact I was committng a sin. Whatever right be the case,
I know now that all my colleagues sooner or later after their arrival
became convinced of the sinful wisdom of the decision made in Geneva.
Being impressed by the excellent organization which welcomed us, we
all sensed from the start the beauty of Havana, the cordiality of our
Cuban friends and the charm of nature in Cuba. It seems to be the
case that many of us felt we were being bewitched by Cuban and the
Cubans, and, if you permit me, Mr. Chairman, I am afraid you yourself
with your consistent cheerfulness, your good humor and pervading
heartiness, have been one of the main sorcerers.
Most of us had never been in Cuba and we only faintly had an idea
of a wonderful island in the Caribbean, from where sugar and tobacco
came, where people danced rumbas, and where alI ladies were beautiful,
All this proved to be more than true, and I take this opportunity to
thank on behalf of my colleagues and myself, particularly our charm-
(MORE) ITO/217
Page 2
ing Cuban hose-esses, who have contributed so largely to the confort
of us poor, overworked delegates, in a never failing and always
successful attempt to cheer us up, and who therefore are certainly
responsible to a considerable extent for the fine results of this
Conference.
However, we have certainly not been here only for work and
pleasure. Many of us interested ourselves in Cuban culture, in its
arts and sciences, which we found thriving beyond any expectation,
and I may be permitted to mention that the Delegation of the
Netherlands, having tasted Cuban musical life both in the folk style
and in the classical way, goes home deeply impressed by the innate
musicality of the Cuban people, one of the most precious gifts nature
can bestow on mankind.
We shall had to learn about Cuba's history, and nobody could ignore
the fact that the long fight for freedom Cuba had to put up is of
symbolic significance in modern times when there has just been fought
a long and bloody war to prevent freedom being curbed by ruthless
power and liberty destroyed by brute force.
Mr. Chairman, Fellow Delegates, you have all known no as a son
of my country, practical, realistic, matter of fact as a Dutchman
should be. However, I must confess that I am deeply moved when I
now present for formal adoption the resolution of gratitude to the
Government and People of Cuba.
Thank you, Mr. Chairman,
(END OF PRESS RELEASE ITO/217) |
GATT Library | gq951qw4066 | Speech by Mr. Carmelo La, rose of the Italian Delegation at the Final Plenary Session | United Nations Conference on Trade & Employment, March 19, 1948 | Department of Public Information Havana, Caba and United Nations Conference on Trade & Employment | 19/03/1948 | press releases | Press Release ITO/177 and ITO/73-194/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/gq951qw4066 | gq951qw4066_90200374.xml | GATT_147 | 500 | 3,181 | UNITED NATIONS CONFERENCE ON TRADE & EMPLOYMENT
Depertment of Public Information
Havana Caba
DVANCE TEXT Press Release ITO/177
OT TO DE RELEASED 19 March 1948
SPEECH BY MR. CARMELO LA, ROSE OF THE ITALIAN DELEGATION
AT THE FINAL PLENARY SESSION
The Italian Delegiation does not wish to let this occasion go
y witheut oxpressing once more its confidence in the success of the
ew Ageney which is in train of being, constituted, considering it the
ost able instrusent for the attainment of the maximum development of
the world economy as well as of the international trade.
As the Italian delegation has on various occasions pointed
But, Italy's population is constantly increasing.
The difficulties for the emploment abroad of the surplus
talian ean power are great
Italy sees therefore no other way, for the solution of its
conomic problems, than to increment its exports of goods and services
.n orddr to mako available the necessary means of payment for the pur-
-hasing of raw materials, coal and fuel necessary to its industries,
nd food for the existence of its population.
This particular situation and the necessity of increasing
xports, make it imperative for Italy to have larger markets without
uantitative restrictions and preferences specially on the imports of
products . ored luxury goods or not of prime necessity.
One moere I remind this Assemlbly of the fact that 5O% of the
'talian exports are so characterized.
My Country recognizes however, that, in the present situation
if the world economy and of the necessities of underdeveloped countries.
.t is not possible to achieve now a system of trade in which quanti-
ative restrictions, preferences and discriminations could be
liminated, (MORE) - 2- ITO/177
19 March 1948
My Delegation therefore is of the opinion that due to the
rosent circumstances, the solution reached in Havana concerning the
-antitative restrictions and preferences is quite satisfactory.
It seems also wise to the Italian Delegation the solution
hich has boon given to the relations between Members and non Members,
ith such a solution all the Delegations here convened have given
roof of sound realism.
My Delegation must observe, with regret, that the immigration
roblem, which constitutes for us one of the cssontial problems for
the solution of our economic questions, did not meet with the satis-
`actory re sult anticipated by my Country;
Italy, in a spirit of compromise, withdrew its amendments on
the subject.
Howeveer it is our aim to bring up the'matter again in'the next
Conference of the I.T.O. and we hope that with the same spirit of
Collaboration which has brought about the drafting of the Charter
n Trade and Employment, Italy's immigration problem can be favorably
considered, in the general interest, by the I.T.O
In closinig my brief speech I thank all the Delegations here
.ssombled for the kind consideration given to the Italian proposals
fluring the drawing up of the I.T.O. Charter.
i J L !L" Il `. Il I il -
*, r ir i, 7r I r w w |
GATT Library | qq006zj5630 | Speech by Mr. Guillermo Gutierrez Vea Murguia, Head of the Bolivian Delegation, before the Final Plenary Session | United Nations Conference on Trade and Employment, March 22, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade and Employment | 22/03/1948 | press releases | Press Release ITO/205 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/qq006zj5630 | qq006zj5630_90200397.xml | GATT_147 | 1,015 | 6,590 | UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Department of Public Information
Havana, Cuba
Press Release ITO/205
22- March 1948
Advance Text
Hold for Release
Check against delivery
Speech by Mr. Guillermo Gutierrez Vea Murguia, Head
of the Bolivian Delegation, before the Final Plenary
Session
Mr. President, Gentlemen:
Four months of unceesing work now lie between us and the day the Conference
opened. The delegations have frequently been divided by conflicting points of
view arising from their dissimilar economic situations, but in defending our
various national interesta we have never lost the friendly spirit with which
we set out, nor our desire to reach an understanding.
The delegation of Bolivis wishes to take this opportunity of expressing
its sincere gratitude for the hospitality of the Cuban Government end people,
and of acknowledging the invalueble.co-operation afforded CACNUTE whose
efficient work I should like to single out for praise.
Although there were, no doubt, very good reasons for its adoption, the
decision to discuss betters of world interest in private deprived public
opinion of more detailed. information and reduced. the opportunities afforded
to the press of publicizing the Conferencels vast task and the significance of
our deliberations.
Nevertheless, deprived though they were of free and direct access to the
sources of information, the correspondents of. the great news agencies and in
particular those of Havena's excellent newspapers have, without departing from
high ethical standards, fulfilled their duty -as journalists and richly deserve
my public tribute.
The views of the countries of Latin America have very frequently coincided.
and although sometimes diametrically opposed to those of the great industrial
countries, the delegates of those countries received them with respect .and
sympathy, because of the incontrovertible grounds on which they were based.
/In company In company with the other delegations of Lstin America, the Bolivian
delegation has co-operated. fully, loyally and effectively in drafting the
Charter of Havaàno.
It is safe to say that none of the Latin American delegations has been
fully satisfied in its demands. In our own case we regard as inadequate the
provisions of the Charter vhich deal with the economic development of nations
that are primarily Producers of raw materials.
The economic difficulties of today and the critical supply situation with
which we were faced during the war have taut us what an urgent problem the
diversification of our economy is At the same time, we feel that the task of
raising the standards of living of our people cannot be indefinitely postponed.
Can it be said that the provisions of the Charter protect our legitimate
rights and aspirations to all-round economic development? The reply to that
question will be given by our respective parliaments and it can only be said
that there vould be more reservations in the body of the Charter had it not been
for the work of the Co-ordinating Committee. It Was hoped that the Co-ordinating
Committee would produce results which would. effectively reconcile the differences
of opinion which threatened the success of the Conference. Nevertheless, as the
solution -put forward by the Committee was a compromise and based on common
consent, intransigence was out of place.
In the present circumatances, it is not feasible to extend the
most-favoured-nation clause to every Member of the Organization. An irrefutable
proof of this is provided by the numerous exceptions claimed. by both great and
small countries. In spite of our goodwill, the delegation of Bolivia Cannot see
its way to withdrawing its reservation regarding Article 16,
The Charter contains many provises guaranteeing that its provisions will not
be applied. so as substantially to injure the economies of Members of the
Organization.
We hone that that will be the criterion applied in practice to
inter-governmental commodity arrangements. We also trust that, without losing
sight of the far-reaching effects of the Organization's decisions on the life of
the countries concerned, agreements on this important matter will be based on
equity, the foundation of any freely contracting commercial commitment.
The economic life of Bolivia almost wholly conditioned by its experts of
tin. In this connection my Government will have difficulty in accepting
commitments which are not offset by a guarantee of equitable treatment. Only
on that basis would we be able to participate confidently in the work of the
future body and have an incentive for collaborating effectively in the
work of regulating world trade.
/The Charter -3-
The Charter of Havans advocates equality of opportunity in international
trade for all nations and establishes in this connection that the difficulties
af each state are of common concern to avery Member of the Organization. In
view of these principles, my delegation. wishes specially to mention a problem
which vitally affects Bolivia and which is one of the subjects dealt with by
this Conference. I am referring to the unevoidable "encirclement" of Bolivia.
The code of commerce proposed by this Conference is defective in this
respect, because of the omission of any Article dealing with unrestricted
transit.
The friendly co-operation afforded Bolivia by her neighbours and the
provisions regardig freedom of transit included in the Charter do not remove
the necessity for this important clause.
My delegation expresses its hope that a spirit of understanding and
Justice will lead to the removal of the misgivings to which this situation
gives rise.
Fully conscious of the real importance of reservations still cutstanding,
the delegation of Bolivia takes this opportunity to place an record those which
it has entered in order to protect the legitimate interests of Bolivia.
In other meetings woe have emplained cur standpoint as rewards the Final Act
and the Interim Commisaion. We sincerely regret, that our amendment was not
accepted. It is an expression. of the loyal adherence of the Government which
I have the honour of representing, to the principles of Our Constitution.
The delegation of Bolivia therefore wishes formally to state that its
perticipation in the work of the Conference does not imply any undertaking
on the part of' the Republic of Bolivia so long as the Government end
isgislature of Bolivia shall not have approved the Trade Charter in accordance
with our Constitution. |
GATT Library | jf433pk2502 | Speech by South African Delegation at Closing Plenary Session | United Nations Conference on Trade & Employment, March 22, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade & Employment | 22/03/1948 | press releases | Press Release ITO/195 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/jf433pk2502 | jf433pk2502_90200390.xml | GATT_147 | 516 | 3,239 | UNITED NATIONS CONFERENCE ON TRADE & EMPLOYMENT
Department of Public Information
Havana, Cuba
ADVAMCE TEXT NOT TO BE RELEASED UEFONE DELIERY Press Release ITO/195 22March 1948
SPEECH BY SOUTH AFRICAN DELEGATION AT
CLOSING PLENARY SESSION
Mr. President:
The observations of the South African Delegation at this time
will be very brief and will relate to a single Article of the Charter,
Article 92 of the Draft Charter lays down in clear and un-
equivocal language that:
"The Members also undertake, without prejudice to any
other international agreement, that they will not have
recourse to unilateral economic measures of any kind
contrary to the provisions of this Charter".
This provision together with Article 2 paragraph 4 of the
United Nations Charter which prohibits the use of force, and Article
41 which vests the inveking of economic sanctions in the Security
Council constitute the essential framework of the rule of law as
between States. This would have been a very satisfactory position,
if it were net subject to qualifications. It would have meant that a
large part of the world accepting those Charters had undertaken to
guide their actions in relation to one another by the presses of
consultation and acceptance of the peaceful intermediation of other
States anxious to Maintain peace and amity among nations, in prefer-
ence to the primitive appeal to force, whether rnilitary or economic.
Unfortunately, Mr. President, there is a qualification to
Article 92 in the Draft Charter. This qualification is contained in
paragraph 3 of Article 86. That paragraph renders void, in certain
circumstances, the saultary provisions of Article 92. It thus makes
an important breach in the essential framework of the international
rule of law. What is worse, the drafting of that Article 86 is with-
out any question vague and embarrassing. Its interpretation is (MORE) - 2 - ITO/195
22 March 1948
therefore almost bound in itself to lead to future disputes.
This is a matter of first-rate importance. The whole of our
civilization may depend on our ability to substitute in international
relations the powers of law and order for those of force. The
matter will inevitably require consideration in connection with the
recognition by the United Nations of the I.T.O. as a specialized
agency. As I have aliready indicated, the wording of Aticle 86 para-
graph 3 is such that an ultimate authoritative interpretation by the
lnternational Court of Justice will almost certainly be required. The
view has been expressed in the Conference that although this Article
does not prevent the application of unilateral sanctions by members
of the ITO, it containts no commitment on subject. Whether such a
wide interpretation can be given to the Article in the form in which
it was adopted by the Conference is a matter which will, in view of
the involved wording, necessitate decision by the International
Court of Justice at some early date.
In view of those circumstances, Mr. President, I have been
instructed by my Government formally to reserve the future attitude
of the Union of South Africa on this Article.
# # # # # # # # |
GATT Library | vz799qt0822 | Speech by the Head of the Delagation of Venezuela before the final Plenery Session | United Nations Conference on Trade and Employment, March 22, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade and Employment | 22/03/1948 | press releases | Press Release ITO/204 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/vz799qt0822 | vz799qt0822_90200396.xml | GATT_147 | 903 | 5,751 | UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Department of Public Information
Havana, Cuba
Press Release ITO/204
22 March 1948
Advance Text
Hold for Release
Check against delivery
Spesch by the Head of the Delagation of Venezuela
before the final Plenery Session
Mr. President, Gentleman:
In making, on behalf' of the deleation of Venezuela, a final statement
on the work of the Conference, it is my first duty to express the satisfaction
felt by .Venezuela that our arduous and prolonged labours have led us et lest
to agreement. Venezuela's ardent faith in the justice expediency of
seeking peaceful international solutions to the grave -problems confronting
humanity meant that, not even during the most difficult periods of the
Conference, did. my. country. doubt the possibility of reaching agreement through
mutual sacrifices and concessions made by each country to the point of view
of the remainder.
It can be said with justice that although we have not achieved all that
we desired, without the spirit of understanding towards the. interest of others
and towards conflicting views shown by all the delegations, we would never have
been able -to raise- the well-balanced structure which we- have completed and
which will have the privilege of being known as the Charter of Havane.
In spite of the inveluable guiding lines laboriously laid down by our
predecessors in London- and Geneve, whoso valueble .contribution I am pleased to
acknowledge, the Conference has had. to prolong its work fer beyond the time.
originally laid down. The fundemental cause of this prolongation has been
the dififculty of finding a point of balance between, on the one hand. the.
imperative need of the young or under-developed countries to safeguard their
right to give protection, at once reasonable and adequate, to their nascent
economic development, and on the other bend, the desirability, given-
pre-eminence in-the Geneve Draft, of freeing international trads from the
barriers hampering its expansion which have been steadily growing throughout
the last thirty years.
/In many In many ways the text we are about to sign gives fuller reconnition than
the Geneva Charter to the fact that freedom of international trade, although
entirely Justifisd in principle, must not be rated so highly as to obstruct the
growth of undeveloped economies and prevent the inhabitants of these countries
from attaining a more satisfactory standard of living.
From every point of view it would be too much to say, and I do not intend
to take the responsibility of doing so, that in the Charter as it. stands the
countries with young economies have seen the fulfillment of all their hopes
for revisions in the Geneva text. Let it suffice to say that the Charter does
not wholly end directly answer our hope that, here in Havena, specific and
well-ordered rules might be laïd down, making it possible for the
Organization to co-operate in a positive way in the realization of the plans
for development of the young or aconomically undeveloped countries. I wanted
to refer in a clear and unequivocal way to this fundamenal deficiency in the
text we have established, for two reasons, both of them constructive. First,
I wanted to underline the capital importance of the Resolution which is
designed partly to fill this gap. Secondly, I wanted to emphasize the
immediate and urgent necessity for the provisional Executive Committee and
the Interim Commission, working within the term of reference of this
Resolution., to dedicate their greatest efforts to drawing up additional
regulations which will make it possible for us to complete the Charter in
such a way that its text includes regulations relating to the principles of
full employment and economic development, which are as extensive and meticulous
as those devoted to international trade.
As regarded the reservation made by my delegation, I wish on behalf of
Venezuela formally to withdraw them. We are taking this step not because we
have changed our minds regarding the provisions in question, but because, on.
-he one hand, we are animated by that spirit of international conciliation
which Venezuela has always maintained, and because, on the other, we are
determined to remove any misapprehension to the effect that in making
reservations only on certain points, we find the rest of the Charter wholly
satisfactory. It is sufficient to note the fact that in order to contribute
to the success of the conciliatory efforts of the Co-ordinsting Committee,
we are making concessions on fully Justifiable points of view which we had
resolutely supported in fraternal collaboration with the other Republics of
Latin America.
Mr. President:
I do not vent to conclude without expreasing my gratitude to the
Government and people of Cuba for their magnificent hospitality during theee'
four months; our heavy labours, and the difficulties which we had to overcome
are already old memories, and in our minds only remains the pleasure afforded
by our etay in Cuba and the daily contact with the eminent representatives
/of friendly of friendly countries, who, together with us, have shared the honour of
drawing up the Havana Charter, Wîthout the friendly co-operation of all the
delegations, without the judicious direction of che President of the
Conference and the Chairmen of the Committees, Sub-Committees and
Working Parties, we would not have achieved this well-balanced result.
I do not forget the staff of the Secretariat and the translation
services hose hard work has greatly facilitated our task, and I wish to
exterd my gratitude to them also. |
GATT Library | dg485hm0980 | Speech by the Head of the Delegation the Dominican Republic before the Final Plenary Session | United Nations Conference on Trade and Employment, March 23, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade and Employment | 23/03/1948 | press releases | Press Release ITO/213 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/dg485hm0980 | dg485hm0980_90200405.xml | GATT_147 | 627 | 3,948 | UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Department of Public information
Havana, Cuba
ADVANCE TEXT Press Release ITO/213
HOLD FOR RELEASE 23 March 1948
CHECK AGAINST DELIVERY
SPEECH BY THE HEAD OF THE DELEGATION THE DOMINICAN REPUBLIC
BEFORE THE FINAL PLENARY SESSION
I wish first of all to extend my congratulations to all the countries
represented at this Conference on their immense efforts and the spirit of
understanding shown by all, which have together made possible the elaboration
of the Charter of Havana. In this connection particular mention should be
made of the General Committee and of the distinguished President of the
Conference for the judicious and tactful way in which they have carried out
their difficult task.
It is also a pleasure on this occasion to thank all our fellow delegates
from other countries for the sincere sympathy and friendship they have shown
us .
We are delighted that aIl the countries represented at this Conference
have been able to reach more or less effective agreement on the regulation of
world trade and employment and on the establishment of an international
organization to give effect to those regulations. Both achievements will be
of considerable advantage in realizing the basic objectives of the Trade
Charter, although it is to be regretted that, owing to situations now
irremediably established but which according to the provisions of the Charter
must disappear in the near future, the remarkable effort made will not result
in the full attainment of those objectives.
When this Conference was convened, it held out among its purposes the
prospect of international trade with equal opportunities for all, freed from
barriers and discrimination. The result has been somewhat different. The
Charter we have drafted includes so many escape clauses and exceptions to its
most fundamental principles that, in our opinion, it might lead to the
accentuation of the very evils which it is its essential purpose to remove,
if the extreme goodwill so eloquently express by all the countries attending
the Conference were not first taken into account.
Inevitably the basic instrument contains some provisions which certainly
detract from its value. We realize that such departures had to be accepted
in the face of inescapable realities, and in view of the need to achieve an
initial success, since complete success of the Conference could never be
obtained by ignoring the very principles on which it claimed to base its
work. Nevertheless the loyal fulfilment, by each of the Members of the
new Organization, of the basic principles on which it is to be founded, and
/the efficient ITO/213
Page 2
the efficient application of the provisions of the Charter by the appropriate
organs, always keeping in view its primary objectives as set forth therein,
will be, there is no doubt, of great advantage in realizing the high purposes
of the Charter and through them attaining the peace and prosperity of all
nations. We are confident that this ideal of prosperity for all will
continue to govern all the nations represented here, in order to facilitate
the work of the new Organization and so secure peace for mankind.
As regards my country, I have to state, that in suite of the difficulties
which, for reasons which we have already explained on other occasions,
adhesion to the Charter implies for us, we believe and hope that tho Congress
of the Dominican Republic, faithful to the traditional policy of my country
in international relations and always welcoming any demonstration of
international co-operation, will ratify it.
The new Organization has therefore before it, a noble and arduous task
which, if loyally carried out, will merit the gratitude of all mankind, now
plunged in the utmost bewilderment and direst distress.
# # # # # # # # # # # # |
GATT Library | nm212yp4206 | Speech delivered at the Seventeenth Plenary Meeting on behalf of the Delegation of Colombia by H. E. Dr. Fulgencio Lequerica Veles Minister of Colombia in Cuba, Delegate to the Conference ambassador extraordinary and Minister Plenipotentlary | United Nations Conference on Trade and Employment, March 20, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade and Employment | 20/03/1948 | press releases | Press Release ITO/187 and ITO/73-194/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/nm212yp4206 | nm212yp4206_90200383.xml | GATT_147 | 739 | 4,640 | UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
DEPARTMENT OF PUBLIC INFORMATION
HAVANA, CUBA.
ADVANCE TEXT Press Release ITO/187
CHECK AGAINST DELIVERY 20 March l948
SPEECH DELIVERED AT THE SEVENTEENTH PLENARY MEETING ON BEHALF
OF THE DELEGATION OF COLOMBIA BY H. E. DR. FULGENCIO LEQUERICA VELES
MINISTER OF COLOMBIA IN CUBA, DELEGATE TO THE CONFERENCE
AMBASSADOR EXTRAORDINARY AND MINISTER PLENIPOTENTLARY
Mr. President, Gentlemen:
In expressing our acceptance of the Charter of Havana in the terms
of the Final Act, the delegation of Colombia wishes to make a number of
brief observations. In the absence of the head of our delegation,
Dr. Lleras Restrepo, whose duties in connection with the forthcoming
Pan American Conference have obliged him to return to Bogota, it is my
privilege to speak on behalf of the Colombian delegation in these final
meetings which mark the end of four month of exceptionally hard and complex
work.
I must begin by paying a tribute to the delegations which have
accomplished a task of exceptional magnitude, to the chairmen who have
presided with such skill over the deliberations of the organs of the
Conference, and to the Secretariat whose work, under unobtrusive and
skillful direction, could hardly have been bettered.
When the Conference opened, the delegation of Colombie explained its
reasons for whole-heartedly supporting an international trade organization.
At the same time, we said that in our opinion the Draft Charter required
amending in order to make it a better balanced and a more just document.
It would be unreasonable to deny that a great effort has been made to
achieve balance and justice. A satisfuctory solution has been found for
many of the individual problems of the countries represented here, which
arise out of real or apparent contradictions between the general provisions
of the Charter and situations as they actually exist. A further advance has
been made on the lines already laid down in Geneva, in providing for the
exceptional application of measures of protection when justified by the
requirement of economic development or reconstruction. Greater emphasis
has been laid on the functions to be attributed to the Oreanization in
connection with economic development. All this, together with improvements
in the text of many clauses of the Charter and the endless labour of
interpreting and clearly defining the scope of each Article justify the
length of this Conference. We have, as a result, a Charter under which we
hope to see all nations united in an effort of co-operation for the common
good. The fact that it has been possible to create an instrument of this
kind despite the natural and profound difference of interests, is a step
/forward of great ITO/187
Page 2
forward of great siguficance which cannot be over-estimated, and in
comparison with which the defects and flaws from which it has been
impossible to, free the Charter seem small indeed..
The delegation of Coloambia must however regret that a greater advance
bas not beem made in.recoguizing and giving effect to two major principles;
the obligation on the part of the more powerful countries to co-perate in
progressively reducing the existing differences between standards of living
in different countries, and the right of the under-develomed countries to
special treatment within the provisions of the Charter. Important progress
has been made on both points in Geneva and in Havane, but it is still-
impossible to say that we have reached the limit of what could reasonably
be asked and expected. The delegation of Colombia would be insincere if it
did not express its dissatiafaction with these gaps in the Charter, and if
it did not once more voice its hope that they will be filled either by
subsequent amendment or by the way in which the Charter is put into effect
in practice. Our acceptance of the Charter is based on the conviction that
the importance of an Orgenization of this kind is so great that it is
worth establishing, even if its Charter does not immediately correspond to
the ideal requirements of international justice. We are confident that the
forces i1e t in a E of juridical organization and contact with
everday reality will bring us graduely nja:Dr to a just system of
effective and dynamic co-cperation.
In accepting the Charter on behalf of the delegaetion of Colombia, I
wish to express my sincere home that the efforts rade here will continue
to proper to the benefit of peace and the prosperity of us all. |
GATT Library | mw506hq0767 | Speech delivered by Mr. Gustavo Gutierrez, Acting Head of the Delegation of Cuba at the Plenary Session on 23 March 1948 | United Nations Conference on Trade and Employment, March 23, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade and Employment | 23/03/1948 | press releases | Press Release ITO/216 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/mw506hq0767 | mw506hq0767_90200409.xml | GATT_147 | 3,719 | 23,596 | UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Department of Public Information
Havana, Cuba
ADVANCE TEXT Press Release ITO/216
HOLD FOR RELEASE 23 March 1948
CHECK AGAINST DELIVERY
SPEECH DELIVERED BY MR. GUSTAVO GUTIERREZ, ACTING HEAD
OF THE DELEGATION OF CUBA AT THE PLENARY SESSION
ON 23 MARCH 1948
Mr. President:
Ladies and Gentlemen:
Like the flags that were unfurled in front of the Capitolio on the
21st of November of last year and have since been illuminated every morning
by the light of the new day, but are now a little limp under the passing of
time, we have reached the end of our labours. Our illusions like the flags
have become a little tattered and torn. But just as they retain the colours
which express an ideal against the blue of the sky, we persist in our defence
of the national interests we represent, in the grey uncertainty of world
economy.
To-morrow the rainbow of flags will be taken down. Ships and aircraft
will carry you back to your distant and beloved countries. The sweet sorrow
of parting will be compensated by your satisfaction in returning to your
homes, but perhaps many of you will ask yourselves: Is the result of the
United Nations Conference on Trade and Employment, and the fruit of its
labours, the Charter of havana, worth so many days of toil and so many
wakeful nights?
Never, Gentlemen, has a more noble and ambitious task been inspired by
higher ideals nor had more loyal servants. Allow me, therefore, on behaIf
of the delegation of Cuba, to pay tribute first of all to the thinkers in
whose minds first germinated the boldides of bridling the wild horses of
national economies, and leading the nations towards the ordering of their
technical principles and the co-ordination of their conflicting interest.
Forgive me if I express our gratitude to the men and women of the translation
services who have performed the miracle of making us intelligible one to
another in this economic Babel, and to the staff of the Secretariat who have
printed and distributed, sometimes even re-edited, our often confused ideas,
and to the Press and Radio which have diffused them: may I also express our
appreciation of the services of the humbler staff members who have made
possible the daily progress of this great event.
After paying a tribute to those busy bees who have built the honcycomb
structure of the Charter of Havana, let me express for one last time, on
behalf of the Government and people of Cuba, our most sincere gratitude for
/the kind words ITO/216
Page 2
the kind words that have bean uttered in recognition of our hospitality,
which is a small thing besides the great honour of having you with us, and
for the expressions of appreciation of our country, where you leave so deep
an impression of affection.
The Cuban people and Government, deeply grateful for the honour that
was paid Cuba, first when it was appointed as a member of the Preparatory
Committee which met in London, New York and Geneva, and afterwards when it
was chosen as the site of this world conference, and later still when it
was chosen to preside over this avent which will undoubtedly go down to
history, has always associated itself wholeheartedly in the gigantic
enterprise and has followed with extraordinary interest and sympathy our
lengthy and difficult deliberations, encouraging its delegation to spare no
effort in making this noble task a success.
The delegation of Cuba considers that the result achieved does to a
certain extent compensate the intense effort put into the work. Anxious
when they were faced with the original proposals, valiant in London, laborious
in New York, obstinate in Geneva, discreet and welcoming in Havana, the
Members of our delegation have done all in their power to be worthy of the
trust placed in them and to live up to the honour that has been done them.
Cuba's co-operation in this task has been constant and optimistic. From
the earliest days the Cuban delegation has called attention to problems which
are still tropical and pointed out difficulties which have long preoccupied
students, men of affairs and politicians in all countries. Our criticism was
always constructive We never thought that we alone had the key to the truth,
nor that our cause was the only good one in the world.
Purposes and Objectives of the Charter of Havana
We have contributed to Chapter I (Article 1) which defines the purposes
and objectives of the Charter, from the very first draft. We have emphasized
the need for all nations to co-operate with each other and with the
international agencies to foster and assist industrial and general economic
developments in other countries, particularly those countries which are still
in the early states of industrial development, and to enable all countries,
by increasing the opportunities for their trade and economic development, to
abstain from measures which would disrupt world commerce, reduce productive
employment or retard economic progress.
Employment and Economic Activity
In connection with Chapter II (Articles 2 to 7) entitled "Emoployment and
Economic Activity", we co-operated in the recognition of the fact that the
/avoidance of ITO/216
Page 3
avoidance of unemployment or under-employment through the achievement and
maintenance in each country of useful employment opportunities for those able
and willing to work and of a large and steadily growing volume of production
and effective demand for goods and services, is not a problem of domestic
concern alone but is also a necessary condition for the realization of the
purposes of this Charter, particularly the expansion of international trade
and the well-being of all countries.
The Charter recognizes that while the avoidance of unemployment or under-
employment depends primarily on internal measures, such measures should be
supplemented by concerted action under the sponsorship of the Economic and
Social Council of the United Nations in collaboration with the appropriate
inter-governmental organizations.
We have done a great deal in this respect. Already in London, Cuban
initiative succeeded in having included in the Charter recognition of the
need to maintain fair labour standards, now given a wider field of application,
without having recourse to theoretical pronunciations on the rights of the
worker, whose social progress has been the object of the attention of the
International Labour Organization for some time now. In Havana, we besought
the Conference to agree to recommend the specialized agencies to bring up to
date statistics of unemployment and the measures envisaged to put it down
directly, apart from the indirect method of increasing world trade envisaged
in the Charter, and to recommend also the establishment in each country, where
they do mot already exist, of technical offices designed exclusively for this
purpose. The Conference confined itself to adopting the Resolution on page 75
of the Final Act, which, although containing many of the elements of our
proposal, has not that practical purpose which we had in mind.
Economic Development and Reconstruction
Chapter III (Articles 8 to 15), on Economic Development and Reconstruction,
was introduced into the Charter largely by the efforts of the delegation of
Cuba which from the earliest moment, together with other countries which have
not yet achieved full development, stated the need for counter-balancing the
measures designed to expand world trade - which was at first the fundamental
purpose of the Charter - by others, safeguarding the development of countries
with young economies.
In the "Proposals for the Expansion of World Trade and Employment"
submitted by the United States Government to world public opinion on
1 November 1945, this Chapter did not exist, nor was any reference made to
the foregoing. In the First Draft Charter, later submitted by the
United States Government, there were only four short Articles on employment
-/and the whole ITO/216
page 4
and the whole question was referred to the Economic and Social Council of the
United Nations; but by the end of the London Session, the Draft Charter
contained a whole Chapter made up of four long articles stressing the
importance of economic development, the means of achieving it and the need
for governmental assistance. The New York Session dèmonstrated the importance
which Article 13 of the Charter was to hold, but the delegation of Cuba
abstained from accepting it because it did not consider it satisfactory. At
the Geneva Sessions Cuba was one of the foremost nations in the fight for
facilities whereby the undeveloped states could put into effect measures
promoting their economic development, and we emphasized the need for the
transitional period in Article 14. We warned at the time those who maintained
a contrary opinion that the contest would be re-opened in Havana and that we
were absolutely sure that the precepts of Articles 13 and 14 would be modified.
This has happened and the Cuban delegation had the satisfaction of being
chosen to preside over the large Sub-Committee which, was set up to discuss
and draft these important articles.
The result of the interminable discussions has been the recognition of
the fact that "the productive use of the world's human and material resources
is of concern to and will benefit all countries", that "the industrial and
general economic development of all countries, particularly of those in which
resources are as yet relatively undeveloped, as well as the reconstruction
of those countries whose economies have been devastated by war, will improve
opportunities for employment, enhance the productivity of labour, increase
the demand for goods and services, contribute to economic balance, expand
international trade and raise levels of real income", and that, in certain
cases, it will be necessary to promote the economic developments of the
undeveloped countries by measures which may be inconsistent with the principles
of the Charter, it being admitted that in cases of emergency Members may take
unilateral action and that in other cases a request for release from
obligations may receive the automatic approval of the Organization, although
the decision of the latter will always be necessary in order to put into
effect measures prohibited by the Charter.
Commercial Policy
Chapter V (Articles 16 to 45) entitled "Commercial Policy", constitutes,
together with Chapter IV entitled "Restrictive Commercial Practices" a real
code of international trade. It is the most extensive chapter in the Charter
since it comprises twenty-four articles, divided into six sections: Section A
deals with Tariffs, Preferences and Internal Taxation and Regulation;
Section B deals with Quantitative Restrictions and Related Exchange Matters;
/Section C deals ITO/216
Page 5
Section C deals with Subsidies; Section D deals with State Trading and Related
Matters; Section E contains several important general commercial provisions;
and Section F include among its special provisions, in addition to the escape
clause regulating emergency action on imports of particular products, the
principles regulating customs unions and general exceptions to Chapter IV.
Cuban Reservations
It was in relation to this Chapter that the Cuban delegation entered its
reservations to the Geneva Draft, as a rasult of its disagreement with certain
substantial points in connection with some of the questions mentioned above.
There were five Cuban reservations at Geneva, as follows:
First, to paragraph 2 of Article 16 which gave the right to establish new
tariff preferences in place of preferential internal taxation only to certain
of the great Powers while as reards internal taxation all countries were on
the same footing.
Second, the whole of Article 17 on the reduction of tariffs and the elimination
of preferences, because it did not require the consent of one of the parties to
previous agreements and because Article 17 was not incorporated in the
Geneva Agreement.
Third, article 18 on national treatment on internal taxation and regulation,
because if the provisions of this article were put into effect immediately
without allowing the exemption of national products from taxation in order to
stimulate a country's economic development, it would be unfair to the under-
developed countries which compared with the freedom employed in the use of
subsidies.
Fourta, Article 20 on the general elimination of quantitative restrictions,
on the grounds that it is a great injustice to the countries with small
economic and financial resources to allow an exception in favour of import
quotas on agricultural or fisheries products, without accepting the same
criterian, to the extent of covering at least 50% of national consumption, as
a means of subsidizing the maintenance, development or reconstruction of an
Fifth, Article 25 on subsidies, because the intended restriction of subsidies
limits the obligation of countries whose subsidies seriously prejudice other
countries, to discussing the possibility of limiting the subsidy, as compared
with the outright prohibition of quotas and differential taxation, which are
allowed only in exceptional cases and with the prior approval of the ITO.
At Havana, the Cuban delegation submitted various amendments to remove
the injustices I have just enumerated and fought unflinchingly to secure their
elimination. We obtained satisfaction as regarded the first reservation, in
/paragraph 5 of ITO/216
Page 6
paragraph 5 of Article 16, and as regards the second, in paragraph 2 (e) of
Article 17 and paragraph 4 (a) of the same article.
Although the new draft of Article 18, paragraph 6 and the former
paragraph 8 (b) partly satisfy Cuba's objections, the injustice of persisting
in maintaining a strictly negative attitude towards preferential internal
taxation and industrial quotas in spite of the numerous and serious limitations
offered, compared with the freedom to use direct subsidies, inclined the
Delegation towards maintaining its third, fourth and fifth reservations.
However, anxious to demonstrate our faith in the new organization and to see
how the special procedures of Article 13 and 14 will work, I am pleased to
state that we will sign the Charter of Havana without any reservations
whatsoever, in the hope that a just and reasonable interpretation of its
provisions will make up for its lack of balance and the inequalities it
contains.
The delegation of Cuba also made a contribution to the solution of
problem which arose in connection with balance of payments difficulties, and
secured the inclusion in the Charter of a condemnation of dumping, although,
as in the case of condemnation of false marks of origin, the procedure for
action is not equal to the moral force of the principles set forth.
Restrictive Business Practices
Chapter V (Articles 46-54), on Restrictive Business Prectices, develops the
principle that each member shall take measures to prevent business practices
affecting international trade whether engaged in by private or public
commercial 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 achievement of any
of the other objectives set forth in the Charter.
Thanks to the initiative of the Cuban delegation in Geneva, the important
principles of this Chapter were extended to cover certain services, the
Conference recognizing that transportation, telecommunications, insurance and
banking were substantial elements of international trade and that any
restrictive business practices in relation to them should be avoided.
Inter-governmental Commodity Arrangements
Chapter VI (Articles 55-70) on inter-governmental commodity arrangements,
a chapter of outstanding importance for countries producing primary or essential
commodities such as sugar, wheat, coffee, meat, cereals, cotton, wool, minerals
and the like, recognizes that the conditions under which same primary commodities
are produced, exchanged and consumed are such that international trade in these
/commodities may be ITO/216
Page 7
commodities may be affected by spacial difficuIties such as the tendency towards
persistent disequilibrium between production and consumption, the accumulation
of burdensome stocks and pronounced fluctuations in prices. Recognizing that
these dificulties may have serious adverse effects on the interests of producers
and consumers, as well as widespread repercussions jeopardizing the general
policy of economic expansion, the Charter lays down a series of rules regulating
in a special way the international trade in such primary products.
Thanks to the experience of some of our delegates in this field, the
co-operation of the Cuban delegation has been particularly effective in the
work of defining primary commodities, the idea of a remunerative price, the
independent character of the various agreements covered by Chapter VI and the
flexible application of its provisions.
The International Trade Organization
Chapter VII (Articles 71-91), contain the statutes of the International
Trade Organization. The Cuban delegation which from the outset has, in company
with other countries, supported the idea of equal voting rights and the election
of the Executive Board by the free decision of the Members of the Organization
feels deep satisfaction that this point of view has finally been accepted by
the delegations which supported different ideas.
The Cuban delegation was chosen to preside over the special committees
which dealt with the Tariff Committee and the election of the Executive Board
and we are pleased that it was the so-called Cuban compromise formula which,
thanks more than anything to the goodwill of all the nations represented in
the Conference, finally solved this ticklish problem.
Settlement of Differences
Chapter VII (Articles 92-97) on the settlement of differences has been
considerably clarified from the legal point of view in site of some confusion
regarding reference to the International Court of Justice. It gives us great
satisfaction that the principle we proposed at Geneva appears et the head of
this Chapter: "The Members also undertake without prejudice to any other
international agreement that they will not have recourse to unilateral, economic
measures of any other kind contrary to the provisions of this Charter,"
General Provisions
The tenth and last Chapter (Articles 98-106) contains various general
provisions of great importance regarding relations with non-Members, general
exceptions, amendments, review of the Charter, withdrawal and termination, entry
into force and registration, territorial application, annexes and the deposit
/and authenticity ITO/216
Page 8
and authenticity of texts of the Charter.
You will forgive me if I dwell on the last two lines of the last Article
of the Charter. In them, thanks to your courtesy for which the Cuban people
can never sufficiently thank the delegates to this Conference, it is established
that the Charter for an International Trade Organization shall be known as the
Havana Charter. As the mayor of Havana said when he presented a taken of our
gratitude to delegates, Havana which, standing at the crossroads of world trade
and civilization was, even in the sixteenth century, called by the Kings of
Spain the Key of the New World and the Bastion of the West Indies, has been
honoured by your action in linking its name with one of the most substantial
pledges on behalf of fraternity and universal progress of our time. From now
on the name of Havana will also be a symbol of understanding, and of hope for
the economic prosperity of the peoples and the nations.
It has been said many times that the Havana Charter is not a perfect
document but that the fact that it completely satisfies nobody is a proof of
its balanced character. To some it appears too rigid, to other too flexible
and riddled with escape clauses. In our opinion the important thing is not
the text although it is at once a declaration of economic principles, a guide
to commercial procedures and the statutes of an organization. The important
thing is that the spirit behind the Charter should not be betrayed. If the
interpretation of the provisions of the Charter and the activities of the men
responsible for directing the Organization are swayed by passion or favouritism,
if accommodating formulas are always found to satisfy the interest of the
great economic powers while they disdain to attend to the just demands of the
weak countries, if they are not capable of being just without being severe,
we shall have been plowing a desert.
The touchstone of the Charter for an International Trade Organization
has been and will continue to be the General Agreement on Tariffs and Trade.
But there is no gainsaying that neither the negotiations at Geneva nor the
Havana meeting of the Contracting Parties have been encouraging. In spite of
the fine ideals of the Charter, the influence of Shylock is still very strong
in the world.
It will be well for the countries with nascent or young economies to pin
their faith on the fine ideals of this complicated Charter but it will be
better if they bend their energies to the technical organization of production,
to the stimulation of capital investment by giving confidence to investors and
to the establishment of economically possible standards of living which will
maintain the purchasing power of their peoples. It will be well too, if
the countries whose economies are in their prime do not lose sight of the
trials and tribulations of the nations whose economies are growing old. Let
/no one be ITO/216
Page 9
no one be intoxicated by the power which money gives. Let us not replace
justice by force, because both money and force are transient. Many years ago
the Chinese philosphers taught that all in this world has its spring, its
summer, its autumn and its winter, and that this cycle, which in some cases,
as in the case of flowers, is very rapid, and as in the case of the stars,
very long, is an eternal process, provided that atomic energy does not put
a stop to everything.
At Geneva, our attention was drawn to a bronze plaque which reminds the
passer-by that more than two thousand years ago, Caesar, passed by that read
on his way to conquer the barbarians who inhabited Gaul. Tommorrow in this
country, which only four and a half centuries ago was a paraise of happy and
kindly savages, you will be signing the Charter of the International Trade
Organization. Cassar has gone his way and Gaul is now one of the most
civilized countries in the world, but the name of Geneva is still a symbol of
peace and liberty, You also will go your way and the sunny land of the Siboney
and the Taines will continue its progress, until it also becomes one of the
most femous nations in the world. May the gentle Indian name, Havana, under
whose protection the well-intentioned Charter of the International Trade
Organization now rests be for everybody a talisman of goodwill, progress and
properity. Gentlemen, on behalf of the Cuban delegation, my thanks to you all. |
GATT Library | qr675mz1331 | Speech delivered by Mr. J. Woulbrown, Delegate of Luxembourg, at the Final Plenary Session | United Nations Conference on Trade and Employment, March 22, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade and Employment | 22/03/1948 | press releases | Press Release ITO/208 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/qr675mz1331 | qr675mz1331_90200398.xml | GATT_147 | 1,194 | 7,700 | UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Dapartment of Public Information
Havana, Cuba
Press Release ITO/208
22 March 1948
Advance Text
Hold for release
Check against delivery
Speech delivered by Mr. J. Woulbrown, Delegate
of Luxembourg, at the Final Plenary Session
Mr. President, Gentlemen:
The representatives of almost sixty countries have met here and after four
months of work will meet again tomorrow, in this majestic legislative palace
in the Capital of Cube, for the last time.
The Capitolio which has become familiar ground to us and was already a
symbol of grandeur and liberty for the people of Cuba will tomorrow become a
symbol of home for the world.
The United Nations Conference on Trade and Employment is nearing the end of
its labours. Tomorrow, 24 March 1948, we shall sign the Final Act of the Charter
of Trade and Employment. This historical document will hencefoward be known:n
as the Charter oH Eavana.
Fcr the first mise in the history of international relations,
representativeo cf nearly all the peoples of the earth have cema to an
reement ro cn an international code covering numerous aspecto cf the economic
lifefoi humanity. For the first time a close it t system of ruleh bas been
seu Up to regulate international trade, to wover tariff barriers and restrict
the obstacles to commerce between the nations, in order tfaiacilitate the
soluoicn of the problems of construction which face the countries devastated
bwavea end in order to promote the economic development of the young countries.
Mr. President, Gentlemen:
We have been told that the Charter is not perfect. Cana's a illiantnt
representativeM Nr, Dana Wilgrsseh bas deplored the fact thet we have often
drifted away from the great principles which should have beea et the basis
of the Charter. sharere that opinion.
In order to achieve agreement we have admitted many exceptions, many
departures fmoe and attuenations of the iaeels which we had undertaken to
pursue.
he economica -2-
The economically under-developed countries wished a specific recognition
of their right to adopt non-discriminatory measures contrary to the actual
provisions of the Charter, in order to facilitate their economic development.
They wanted the provisions of the Charter dealing with foreign investments to
be formulated in such a way that the concert of their legitimate sovereignty
in their own territory would be made irrefutably clear.
Mr. President:
I love America, I love Latin America, I love those new countries where
everything is still possible. I understand and I sympathize with many of their
claims,
But I do not think that the young countries have cause for complaint in
the compromise which has bean reached in the Charter.
The industrialized countries and above all the old industrial countries
of Europe have their problems too. Their land is cultivated down to the lest
inch. They must import food to live. They must import raw materials for
their industry. A possible economic crisis must effect them profoundly,
because their soil cannot produce enough to feed their industrial population;
the latter is reduced to unemployment and they are obliged to cut down their
imports.
We feel that many concessions have been made to the young countries.
We do not complain. We recognize that we ourselves have departed from the
great ideals of the Charter in requesting, for example, the temporary
maintenance of existing preferential systems. We accept the compromise
solution. We are ready to recommend that our Governments adept the Charter.
Mr. President:
The Charter is not perfect. It could not be perfect and I even wonder
if it should have been perfect. We are living in a changing world. What is
true today may well cease to be true tomorrow.
We have accepted a new principle, that of an international agency set up
to regulate, in a friendly manner, by negotiations, the economic problems
confronting the nations.
We have subscribed to certain great principles. We have affirmed the
existence of an ideal, the development of the well-being of individuals and
peoples, the development of international trade, the struggle to end the
obstacles to commerce between the nations.
Whatever the imperfections of this Charter, the idea which we have
planted will keep on growing. We have liberated a force. Already this force
escapes and outstrips us. The idea carves out its own path. Reservations
and restrictions will be swept aside one day, whether we wish it or not.
/The International - 3 - The International Trade Organization, the principle of which we are about
to approve, will be integrated in the great system of agencies attached to the
United Nations.
We are living in times that are troubled economically and politically.
The very idea of the United Nations is often challenged, run = down, sometimes
evenidiculeded, However, whatever the dappointmentsts whichwavait our
generationa snd perhaps lateregrnerations, thedileafoa the United Nations must
also make itswoun way,
e`h little dnîustrlai countriesotw vhom exports arelminost everything,
awaiw vith gaeet hope the realitiew vhicw llii emerge from this Charter.
xumbourg h bas norg understood the need for economic co-operation between
the nations. For more than twenty-five years Luxembogr& hasaperticipatednir
the Bgo-Luxx-embourg occnimlc union. The wev cusmors union between-the
NhtnerlandsB 3elumei and Luxembourg shows thaw ahetever the praccalz.
-ifficulties, international ecomiclo prlemsemaceneba amibaely settled.
The degaeetion of Luxembourg believes ahet the difficulties, which face
theedovepment-o cf multilateral trade betweea ell nationsacen so be evercome
During the -wor of this Conference we have sometimes been te=pted tao ive
wea taoàdiscouragement.EHmea ingenuity bhs ceercome every difficulty. This
same inrgenuit will oeerocomefuture difficulties. Institutions are worth
vwat the mernwbh run them are wcort - the men here have mproved thea they
-anted taoagre eand have Zdne sao
In spite of appeaently insurmountable difficultiees;wehave elected the
Members o.fthe DExcutive Ccomittee of the Interli Commission of the ITTOand
the choice vw have meae novwseem s to us imple an wholly satisfactory. The
EXxecutive Committee has chosen a Cairman whioi9sin himself a guarantee of the
OrGganizatoins success. I refer taoMr . Dana ilgress.
iMr. Pr
We must rot fornet that already may of tbeny rinchples of the Charter are
bein; epplieg.aEucan inHemnuity inuity its alltlety bas alrehdy been shoMn
in the negotiations sa recentoy concluded, the essentiel purpoae of which was
ta ensureothedfrogres pve integration of the Genersl AiPeeaentgrn Terfs enda
Trade in the Charter on Trîae and Eadloymentm In spite of the difficulties,
a certain number of Governments have succeedtd in lowering their tariffs.
This exam-oe willple followed,
Mr. President:
I do not went ta leave tois rost'um wiestrumin my turn saying a pribute
to all those who have aided us in our tesk.
I want ta pay a porticular tribute ta the admorable hospitality of the
Cuban Gcvernmentoand people, a quality personified in the highest deQree by
aur Preaiourt, MsidentgiorClark. A4y thank/M
- 3 - - 4 - My thanks must also go to that skilful diplomat, our Vice-President,
Mr. Max Suetens, to the Executive Secretary and to all those others who'who
have po-omerated, with us andped mac us with all theikil kîl and witl al
their hes.t.
On behalf of the degecation of the GndD. Duchyf auxembourg I alsoal
add mheatfelt good wishes for the success of the f Charter of Havana. |
GATT Library | hm173ht1833 | Speech Delivered by Mr. P. Grousset, Minister of France, Head of the French Deligation at the Final Plenary Session | United Nations Conference on Trade and Employment, March 22, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade and Employment | 22/03/1948 | press releases | Press Release ITO/211 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/hm173ht1833 | hm173ht1833_90200401.xml | GATT_147 | 1,160 | 7,156 | UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Department of Public Information
Havana, Cuba
ADVANCE TEXT Press Release ITO/211
HOLD FOR RELEASE 22 March 1948
CHECK AGANIST DELIVERY
SPEECH DELIVERED BY MR. P. GROUSSET, MINISTER OF FRANCE,
HEAD OF THE FRENCH DELIGATION. AT THE
FINAL PLENARY SESSION
Mr. President, Ladies and Gentlemen:
Our Conference has come to a close with the production of an International
Trade Charter, henceforward to be known throughout the world as the Charter of
Havana.
The name, Mr. President, is, as it were, symbolic. Conceived in the
United States, the subject of long discussion in Europe, at London and in
Geneva, the Charter has been finally drafted in a country of Latin America
where the civilizations of North and South America meeting and interpenetrating,
form a harmonious whole with the great European traditions handed on by Spain.
The Charter of Havana itself is a synthesis. And if the many delegates who
came together to draft it have been able to enjoy the charms of Havana for a
longer period than they hoped at first, it is because they have had to integrate
in a single document, acceptable to all, tendencies and interests which,
while not necessarily antithetical, are nevertheless substantially different.
The lead as regards both the Charter and the international Trade
Organization was given by the United States. The first draft Charter which
has served as a basis for all our work was produced by the United States
Administration. And it is only now after more than two years of reflection,
study and discussion, that we are able properly to appreciate the value of the
enormous volume of preparatory work which was done in Washington. In thanking
the United States Government for the lead it gave, I should like therefore to
paya special tribute to all those in the United States who contributed to the
immense effort required to perfect the first draft Charter.
In proposing to the United Nations as a whole their idea of an
International Trade Charter and an Organization to apply it, the Government of
the United States had principally in mind the re-establishment of freedom of
trade and the speediest possible elimination of all barriers to its
development after the two successive catastrophes which the world has
suffered during the last few decades.
We all share, Mr. President, the United States Government's desire to see
trade carried on freely throughout the world. If several delegations, among
them the French delegation, have been unable to accept the original text of
the Charter as it stood, it is not because they did not share the purpose and
/the objectives ITO/211
Page 2
the objectives set forth in it, but because they were not always in
with the authors of the draft Charter regarding the means which should be
employed to attain that purpose and realize those objectives.
Two principal cbjections have been made to the draft Charter submitted
to us:
First, it has been asserted that the levels of industrialization in the
various countries still differed too widely to allow free trade to be
established immediately with advantage. It was for this reason that the idea
arose of introducing in the Charter a special chapter dealing with the
industrialization of countries insufficiently developed from the technical
point of view. The final drafting may be considered, Mr. President, as one of
the Havana Conference's titles to fame. It may. be said that while this text
was made possible only by the understanding shown by the authors of the
original draft, it is principally to the efforts of the representatives of the
countries directly concerned that we owe the final version, which, it seems,
the majority of the Governments represented at this Conference will be able
to accept.
At this point special mention must be made of the countries of Latin
America. Their re-presentatives came to Havana with clear and well defined
ideas on this subject, a proof of their hard work during the months preceding
the Conference.
But our work could not have been brought a successful conclusion if the
problems of industrialization had not also received very thorough study in
the countries of the Near and Far East, China and the Indies.
The second objection to the original draft of the Charter was made on
the grounds that it did not take sufficiently into account the inadequacy of
certain domestic markets. Many delegations, including the French delegation,
believed that free trade between different countries could not be of real
advantage to all unless economic units, in some cases extending beyond present
frontiers, were established as a result of free negotiations between the
countries concerned. This idea of regional economic organizations has
become a topical one. It is being studied in Latin America and in the
Near East. But it is in Europe, and once more on the initiative of the
United States Government, that far reaching economic regional schemes are now
being elaborated and even, one might say, on the eve of becoming reality.
It is not surprising therefore, Mr. President, that the European
delegations should have played a very active part in drawing up those Articles
of the Charter which deal with regional economic problems and more particularly
with the question of customs unions. But here again the final draft would
/have been lTO/211
Page 3
have been impossible if the authors of the original Charter had not shown an
understanding which it is impossible to praise too highly.
Mr. President, the text of the Draft Charter prepared by the
United States Administration and which has served as a basis for our work,
has been, in fact, profoundly modified in order to take into account the
criticisms and suggestions preferred by the various delegations which have
taken part in the Preparatory Committee and in the World Conference at Havana.
But the original idea of the draft Charter has remained intact and I venture
to believe, Mr. President, that the alterations made can only facilitate and
hasten the realization of that idea. However that may be, and although a
text which is the result of a synthesis or, if you prefer it, a compromise,
does not entirely satisfy anybody, we can, I think, assert that, in the
present circumstances, it would have been difficult to draft a Charter
substantially better then the one we are now submitting to our respective
Governments in the confident hope that it will be accepted by the majority of
then.
In, conclusion, Mr. President, I should like to express the hope that the
Organization which is to apply our Charter will perform its functions in the
same spirit of friendly co-operation and mutual understanding which has made
possible the drafting of the document which lays down the statutes of this
Organization, sets forth the general purpose of its activities and the
immediate objectives which it will be called upon to realize at the earliest
possible date.
# # # # # # # # # # #
. |
GATT Library | qs762ys5982 | Speech Delivered by the Head of the Delecation of Ecuador, Mr. Frnesto Chiriboca, before the Plenary Session Held on 23 March 1948 | United Nations Conference on Trade and Employment, March 22, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade and Employment | 22/03/1948 | press releases | Press Release ITO/200 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/qs762ys5982 | qs762ys5982_90200394.xml | GATT_147 | 479 | 2,983 | UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Department of Public Information Havana, Cuba
ADVANCE TEXT Press Release ITO/200
HOLD FOR RELEASE 22 March 1948
CHECK AGAIMST DELIVERY
SPEECH DELIVERED BY THE READ OF THE DELECATION OF ECUADOR,
MR. FRNESTO CHIRIBOCA, BEFORE THE PLENARY SESSION HEID ON 23 MARCH 1948
Mr. President:
I would be glad to be able to say that all the misgiuvings with which my
delegation, came to this Conference had vanished. On the 21st of November we had
before us the Geneve Cherter with all its limitations, its lacunee and its
obstacles. They caused us grave anxiety, but since we had the hope that the
Chapter -we were to draft would satisfy both the great industrial powers and the
under-developed countries, we came confident of beins able to lay the foundation
-of greater prosperity for our peoples.
To-day Mr. President, we have before us the result of four months'
incessant discussion and struggles, sometimes hidden, to impose a principle.
The spirit of compromise also appears in the new text. But con we say that
this spirit has fully shown the wide understanding deserved by the needs of
those countries which are only on the threshold of their economic development?
Desirous of making the Charter of the World Trade Organization a fit
instrument for putting into effect the purpose which it Laid down, my delegation
presented several amendments. They met with varyringsuccess. We fully
understand thet it was not possible for all the prososals submitted to this
Assembly to be accepted; but we must admit that one of them, one which was not
merely the inltiative of Ecuador, but a priinciple of the supreme Organization to
which this one is subordinate, was rejected in circumstances which left my
delegation with a feeling of scepticism.
Since we cannot lose faith in the principles of equality, jusrice and
freedom which the Western World is defending wi' in such fervour to-day, we know
that the day must came when the ITO wil fully recognize the assirations of
countries like mine, when they will) received a recognition which will mean
justice far their hopes of progress, equality for the efforts of their peoples
and freedoma for their economic existence.
Mr. President, an outstanding feature of this Conference has been the
goodwiIl. which has reigned among its Members. This is primarily the result of
the wisdom with which you have directed us. May I offer you the tribute of my
most sincere admiration.
I have great satisfaction in expressing my ratitude to the Governcent of
Cuba and to this city which has welcomed us so warmly. The greaiousness of
Havans has alway brought us encouragement in hours of disappointment and joy in
moments of success. The sunny gaiety of this land will always remain in our
hearts as the happiest among all the happy memories we retain of our stay in
Cube. |
GATT Library | rv338wm1551 | Speech delivered by the Head of the Delegation of El Salvador | United Nations Conference on Trade and Employment, March 23, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade and Employment | 23/03/1948 | press releases | Press Release ITO/218 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/rv338wm1551 | rv338wm1551_90200411.xml | GATT_147 | 1,282 | 7,804 | UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Department of Public Information
Havana, Cuba
HOLD FOR RELEASE Press Release ITO/218
23 March 1948
SPEECH DELIVERED BY THE HEAD OF THE DELEGATION OF EL SALVADOR
Mr. President:
I must begin there remarke with a reference to the hospitality of
the Cuban people. I am swayed by two feelings: one springs from the fact
that I am a Salvadorian and a guest of this courteous, beautiful and rhythmic
city, the other from the fact that I am a Latin American. The first feeling
is one of gratitnde, deep gratitude to the Government, the delegation and this
brilliant people of Cuba, of this happy country whose noble and generous
spirit has given the name of Latin America so high a place among the nations
and has so well deserved the place it has conquered in the hearts of you all.
It would be unjust if I failed to extend my gratitude as a Salvadorian
and my pride as a Latin American to you, Mr. President, for what you have done,
and also to the magnificent work of the Cuban Press and the distinguished
journalists who write and edit it. I have been deeply moved to find that
Marti anrd Maceo, two great men who are an honour to humanity, are genuinely
representative of this magnificent people. Cuba is worthy of them as they are
worthy of Cuba, and all are an honour to Latin America
Mr. President, I do not know how to express these sentiments. It would
give me pleasure if -you would accept as my modest tribute to your great
country the efforts made by my delegation to ensure that the language of Marti
should be included among the working languages of this Conference.
I belong to a small country whose conduct is inspired by the simple and
profound saying of that great Mexican, Benito Judrez, distinguished son of
the Americas. "Peace is to reapect the rights of others."
It was for this reason that, together with the other Latin American
delegations, we did our best to see that the principles of the Charter were
eqitable and recognized fully the equality of all nations whatever their
size and importance.
It was not any selfish feeling which impelled us to uphold the thesis
that, in order to achieve the objectives which this Charter set itself, it is
of fundamental importance to apply ourselves to finding a solution of the
problems implicit in the need to develop those wide regions of the world which
do not yet fully benefit from the achievement of mankind. It was not only
economic history which afforded us arguments in support of this thesis.
Statistics also provided us with irrefutable data proving that the volume of
trade is an effect rather than a cause of a country's economic development.
Thus, during the debates we pointed out that in 1938 for example, the external
/trade Page 2 ITO/213
trade of Belgium and Luxemburg reached $1,325,000,000, notwithstanding its
population of only 8,7000,000 inhabitants, while on the other hand, the trade
of China, excluding trade with Manchuria, was hardly $450,000,000, although
the population of China in the same year reached 450,000,000 inhabitants.
Nevertheless our attitude was never at any time rigid or narrow. We
never under-estimated the importance of eliminating the unnecessary,
unjustifiable and often one-sided barriers which have prejudiced trade and
damaged the potential economic expansion of the world. What we sought was that
in trying to eliminate trade barriers we did not go so far that we set barriers
in the way of the economic development of the nations. It was for this reason
that we enthusiastically and sincerely joined in the campaign of the
delegations of Latin America and the other under-developed countries on behalf
of those interests which for reasons made clear were also the interests of
mankind. No region has a greater interest than Central America in the economic
development of all countries and in reasonable freedom for world trade.
Our geographical position is a privileged one. We are the bridge joining
The continental masses of America. Through our territory there already runs
a canal linking the two great oceans and natural conditions are suitable for
the relatively easy construction of another canal greater than the existing
one. The reconstruction of Europe and the development of West Africa on the
Atlentic side, the development of the Far East, Australia, New Zealand and the c
other islands fi the Pacficc on the other,w.e regardwiith lively interest,
for it would brngr, about an mmnense volume of trade, and the lg ical route
romc ocean to oeoan of that taed would l be via Centael merica.e-
For this reasow ve did our utmost to secure the recognition of our right
to grant mutual preferences designed to achieve a political union of the
countriesaking up t7 Central America. Historical circumstances have pe*t us
apart, ana e series of obstacles have arisen to prevent our developing to the
extent wwouldul wish.A n union of CentraAmerica will c create conditions in
vhich our countriesorganizeded in a single dyc;c oap Dlay thahistorical rol
in world trade, whi ch is omrked eot for them by their prirvleged ogeograhical
position.
This opivileCdd position is a kind of s.ymbo for our sloSgn: everything
for world trade throu;g tnh economic development of the nations of the world.
1r. Pres-ient -ad Gentlemen: Our ardent defence of Central Americal'
r4igh to preferences, a riGgt fully in accoordanc with the objectives of the
Charter, was not intransigent.
iW withdraw the amen&emnt we proposed to Article 16, as a fourth exception
to paragraph 1, in order to co-operate in s*ecuring the succesceul conclusion
of this Conference. We aCgee with the ramenemnts made to Article 15 and
/Article 42 ITO/218 Page 3
Article 42 and in perticular we welcome the inclusion of the Central American-
Ottoman clause in paragraph 6 (d) of Article 15.
We did this because we were anxious not to weaken, in any way the principle
established in the Charter directed against preferences prejudicial to the
expansion of trade, a principle which many countries have championed and from
which the world expects great results. We tried - and- I am pleased that,
thanks to your competence, gentlemen, we largely succeed in doing so - to
reconcile our right to preferential systems in- Central America, systems not
prejudicial to world trade and of great advantage to our development, with the
rights of every country to which we hope at a not too distant date the most-
favoured-nation clause will be extended and fully accepted.
in conclusion, Mr. President, I should like to pay a tribute to the
democratic attitude of the great powers represented here, and especially of
the United States, which has made possible the astonishing spectacle of a
tiny country like the one I represent debating, on equal terms with the great
powers and even having the opportunity of occupying a post of such great
importance as that which, thanks to your generpsity, my country occupies on
the provisional Executive Board of this Organization.
I take this opportunity of expressing my most profound gratitude, on
behalf of my country, my government and myself, for this great distinction
and also of saying how impressed I am by the extent to which democratic ideas
have grown. It only remains for me to withdraw the two or three reservations
maintained by my delegation, and to say that I find the compromise we have
achieved a satisfactory, one, more particularly because the spirit of the
discussions whns i:hich led up to it is aavouroble ta the develooment cunthe t"der-
developed iountrIes and has found a placl in ail the working documents.
Thank you, Mr. President. |
GATT Library | kx703yn2962 | Speech made by Mr. Angelo Arturo Rivera, Minister Plenipotentiary and head of the Delegation of Guatemala, at the final Plenary Session | United Nations Conference on Trade and Employment, March 22, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade and Employment | 22/03/1948 | press releases | Prees Release ITO/203 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/kx703yn2962 | kx703yn2962_90200395.xml | GATT_147 | 677 | 4,165 | UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Department of Public Information
Havana, Cuba
Prees Release ITO/203
22 March 1948
Advance Text
Hold for Release
Check against delivery
Speech made by Mr. ANGELO ARTURO RIVERA,
Minister Plenipotentiary and head of the
delegation of Guatemala, at the Final
Plenary Session.
The delegation of Guatemala wishes to make use of the limited opportunity
offered during the closing meeting of the United Nations Conference on Trade
and Employment to bid an affectionate forewell to all who. have taken part in
the C<_ erence and to extend, through them, to all the nations represented
bere, Cuatemala's wish that they may enjoy progress and prosperity within the
framework of the rules and regulations we have been able to work out in the
Charter of Havana, together with world peace which we hope will not be
disturbed in spite of the of forbidding outlook.
The question in the mind of every delegate et the beginning of the
Conference, the fear that with so many interests at stake and with the more
important nations, it was suspected, anxious to preserve their overwhelming
superiority over the under-developed nations, it would be impossible to reach
a harmonious and satisfactory conclusion, proved to be groundless. A
satisfactory response was made, and in the end the peoples have been given
some fresh ground for hope. We are encouraged in our belief that in the
future, when world conditions are better, it will be possible to achieve more.
Setting to one side the economic benefits and benefits in the field of
trade and employment, which my delegation has appreciated, I should like
briefly to emphasize some of the many advences made, the importance of which
should not pass unnoticed.
1. The satisfaction, expressed on a number of occasions by our
distinguished European colleagues, et having had an opportunity to appreciate
at first hand the value of the Latin American countries and to find out what
they think, feel and desire.
2. The greet opportunity for the Latin American countries to join
/together -2-
together in satisfying their needs and solving their problems, without
concealing their intentions and aspirations, The result has been a warm-hearted
and marked spirit of fraternity in our family consultations. It has also
given a demonstration of our strength, which has not been much in evidence
in the past, not as a bloc established to oppose and systemctically combat
its enemies, but as a genuine band of brothers, working together to put
forward our needs and aspirations. We have much in common, and we hope that
the nations of other continents will also work in greater unison, Our
aspirations and our rights were expressed with, as it were, a single voice,
instead of as a series of isolated complaints. As a result of this
enforced intercharge of ideas, in which there was no sign either of disloyalty
or of a marked desire to take first place, it was emphasized that America
is destined to be united: free, strong and friendly, a rock against which the
tide of evil influences from abroad will dash in vain.
3. For the first time, the small countries, whose delegations have not
before made themselves felt in large Assemblies, have not been underrated. On
this occasion they have common representation which foreshedows their future
union, spiricual and of similar interested, as in the case of the eight
countries of Central America and the Carribean, who, from now on, wish to be
regarded as a single unit in world co-operation.
With these few words, Guatemala expresses the pleasure with which it has
participated in this world conference, where the worlds' aspirations end
interests have been synthesized into what is so rightly called the Charter of
Havana, whose precepts will, we hope, be realized in practice so thet it does
not remain, like so many other documents, a scrap of paper, but is converted
into living reality.
I congratulate all the delegates, who, during the arduous labours of this
Conference of Havana, have shown such goodwill, such integrity end such a
apirit of co-operation. |
GATT Library | rc971wv8831 | Speech of the Cuban Minister of State Dr. Rafael P. Gonzalez Munoz | United Nations Conference on Trade and Employment, March 24, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade and Employment | 24/03/1948 | press releases | Press Release ITO/225 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/rc971wv8831 | rc971wv8831_90200415.xml | GATT_147 | 1,477 | 8,797 | UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
DEPARTMENT OF PUBLIC INFORMATION
HAVANA, CUBA
ADVANCE TEXT Press Release ITO/225
CHECK AGAINST DELIVERY 24 March 1948
SPEECH OF THE CUBAN MINISTER OF STATE
DR. RAFAEL P. GONZALEZ MUNOZ
It is a great honour for me, in my capacity as Minister of State, to
address this august Assembly on behalf of the Cuban Government on the
occasion of this memorable closing session which marks the end of the labours
of the United Nations Conference on Trade and Employment.
Gentlemen, in expressing your views on the results achieved by the
Conference and the contrast between your hopes and the actual measure of
success attained, you have been most flattering in your praise of my country,
the Cuban Government, its officials and agencies which played a part in the
organization of this Conference, now come to so brilliant and happy a conclusion.
We have been moved by the ring of sincerity in all your thanks. You
have not merely used the words that are commonly used on such occasions for
reasons of courtesy. You poke with a warm and generous accent from the
heart rather than the head.
In the graceful speech the representative of the Netherlands has just
made on behalf of the Conference he said so many generous and friendly things
about my country and the President of the Republic, Dr. Grau San Martin, that
I must thank him from the bottom of my heart.
The progress of this Conference has been a matter of deep concern to
the Head of the State and the Cuban Government and people. It has always
been our wish that it should enjoy the conditions most favourable to the
development of its work. The kind words that have been said here answer
our hopes that perhaps we have been able to achieve what we desired. I
could not fail to take advantage of this opportunity to pay again the tribute
of my deepest gratitude to the Conference for the honour it has done me in
making me its only Honorary President, a post which I valued as a demonstration
of its courtesy and esteem for the Republic of Cuba.
For more than four months you have been meeting in Havana with the high
purpose of creating one of the most important organizations to which the
international community has aspired for many years. It has been an aspiration
of every country and has carried with it the most constructive and ambitious
hopes of all who work for a better world. - for that world so greatly desired
by all men of goodwill, and. which in different languages, in different
latitudes and under distant skies, has been promised to mankind by the priests
of every religion, by thinkers and by philosophers. Gentlemen, I refer to
that peaceful world, where calm and transquility will prevail, where all may
enjoy a life of dignity, of industry and goodwill.
/Although your ITO/225
Page 2
Although your duty is done, you will be asking, yourselves and you will
all be asked by your compatriots all over the world. whether your task has
ended after the hours, days and months of discussion to which you have
contributed your knowledge; they will ask you I repeat, whether you have
reached the culnmination of your work with the, signature of this great
document in which the miracle of the written word has crystallized the
results of your labours. In these lines of print, on these pages, your ideals
are impressed, all inspired by a high and noble purpose. And in answer to
this interrogation, Gentlemen, we shall make so bold as to reply, we shall
venture to affirm that you may feel yourselves legitimately satisfied in
placing your signatures at the foot of the document which during those four
long months you have so untiringly been drawing up.
Some of you are not wholly satisfied with it. That is the best proof
of the loftiness of your sentiments and your patriotism, the praise-worthy
loyalty which you have shown to your respective countries, and of the justice
of this magnificent document which will go down to history as one of the
noblest efforts ever made by man to perfect his communal life,
The greatest hopes and the noblest aspirations of your-peoples for their
progress and prosperity have been embodied in this document. All of you,
like all of us, cherished ambitious plans which perhaps want beyond the limit
of what was humarly possible.
And if you are not fully satisfied by this Charter, it is because of the
nobility, the elevation, the lofty aspirations which you have so generously
broght to the service of your countries interests.
Your skill, your intelligence have made the Charter of Havana, Gentlemen,
an altruistic and generous document. You may well be Proud of having drafted
it and of its signature in this solemn ceremony. Your aspirations have not
been less than your generosity and they and the wise spirit of understanding
you have shown have made possible the sacrifice of individual and personal
points of view and opinions on the altar of a common cause, in the common good
and for the protection of us all.
And if we are able to feel proud of and satisfied by the Havana Trade
Charter, the greater will be our faith, our hope and legitimate confidence
in the ultimate perfection and the perdurability of, the Organization whose
foundations have been laid here, in the capital of Cuba. On those solid and
stable foundations, at once compact and strong, the imposing structure of
the future International Trade Organization will rest secure. The work you
have achieved is not so much good or satisfactory in itself, in its present
state, in what has actually been-achieved, as in the promise it holds out for
the future of mankind.
/Ladies and ITO/225
Page 3
Ladies and gentlemen, recall the history of trade and you will see that
it has been a long and bitter struggle of human selfishness. You will see that
trade has always been at the service of the private interest of each man or
group of men. Compare what has happened in the past with the promise of what
will be performed by this world organization whose constitution is the Havana
Charter. You will then be able to admire the way it has been possible to
conceive this Organization for the service and for the good of all, inspired
by the high ideal of the common good and the purpose of inspiring faith and
confidence in the prosperity, the well-being and the progress of all.
I do not think that it is excess of goodwill which leads me to affirm
that the step taken today in solemnly inaugurating the International Trade
Organization by the signing of the Havana Charter will be of far-reaching
importance for the future of humanity and of lasting significance in the
world's economic history.
I venture to believe that the international Trade Organization is the most
solid advance the world has made towards peace. In his inaugural speech to the
Conference, the President, Dr. Grau San Martin, expressed his hope that you
would reach agreement on a system of internatinal trade which by its justice
and strengh would be capable of banishing the spectre of war.
if you have not completely succeded in elaborating such a system, you
may be satisfied at having laid down its basic principles, at having shown
men the way to peace, at having worked skillfully, resolutely and intelligently,
to realize mankind's sublime idea of a community of nations and of peoples
confident of their future and centented with their present lot. All the work
which you have had the privilege of carrying out has been guided and inspired
by the generous ideals of industry and peace. You have done your utmost to
reduce the obstacles and barriers which separated one people from another.
You have made an effective contribution to removing disputes and diffierences
between the nations. You have worked in order to curb ambition and to order
individual interests according to a just code. In four months of intelligent
and enthusiastic work you have done magnificent work in co-ordinating
conflicting material interests. You have brought the ideal to earth and given
it tangible for in a work at once real and just. You have succeeded in
creating a harmonious equilibrium between ambition and honour. You have
elaborated a code of moral standards ani rules limiting the selfish activities
of men. You have achieved a miracle which almost makes Utopia reality and
your aspirations are so great, your ideals are so lofty that you still regard
your work as defective and seek to make it more perfect.
We can do no less than congratulate you wholeheartedly on the magnificantzni2icent
work you haveshedomplihed. and express our hope, our confudefce, oGr iaith in
/the complete |
GATT Library | yt435md1546 | Speech to be Delivered by Mr. Ariosto D. Gonzalez at the Final Plenary Session, on behalf of the Uruguayan Delegation to the Conference on Trade and Employment at Havana | United Nations Conference on Trade and Employment, March 21, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade and Employment | 21/03/1948 | press releases | Press Release ITO/191 and ITO/73-194/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/yt435md1546 | yt435md1546_90200386.xml | GATT_147 | 1,808 | 11,600 | UNITED NTIONS CONFERENCE ON TRADE AND EMLOYMENT
DEPARTMENT OF PUBLIC INFORMATION
HAVANA, CUBA
ADVANCE TEXT Press Release ITO/191
NOT TO BE USED UNTIL DELIVERY 21 March 1948
SPEECH TO BE DELIVERED BY MR. ARIOSTO D. GONZALEZ AT
THE FINAL PLENARY SESSION, ON BEHALF OF
THE URUGUAYAN DELEGATION TO THE CONFERENCE ON TRADE
AND EMPLOYMENT AT HAVANA
As Dr. Cesar Charlone, head of the delegation of Uruguay, has had to
leave Havana, the privilege on recapitulating the ideals and objectives of
which he spoke at the beginning of our arduous but hopeful task has fallen to
me. It is my privilege at this Plenary Meeting, at the close of more than
four months of unceasing work, to express briefly, in a way compatible with
the character of this meeting, our impression of some of the fundamental
aspects cf the text we have drafted,
In periods when economic and comercial life are seriously disorganized
or in periods of transition, a great number of complex factors lead us to
abandon the principles, systems and practices hitherto in force, and there
emerge as correctives and solutions, ideas, plans and methods designed to
save the institutions in danger and to re-establish the normal working of
international trade. One such programme is that which, after the lengthy
and exhaustive process of examination and drafting by statesmen and technical
experts of acknowledged preeminence, will be submitted for the consideration
of governments and parliaments under the name of "The Charter of Havana",
There is no gain saying that the establishment of rules, limits and conditions,
the creation of channels for the unceasing flow of commercial production and
trade, the circulation of which has so often been barred by apparently
insurmountable obstacles of the most varied, unclassifiable and unforeseeable
character, is a vast and ambitious programme. It is a programme so difficult
and of such doubtful practical application that it might seem to skeptics like
the work of the dreamers in Aristophanes' immortal play "The Clouds."
So evory groat reform has appoared, in the uncertain light of the dawn.
Uruguay followed with a lively interest and with understandable anxiety,
the work at London, New York and Geneva, and in Havana we have co-operated in
a wholeheartedly constructive spirit to ensure that the text which would emerge
from the frank and full discussions in this Conferonce would. correspond, in
its actual wording and in the spirit behind the wording, in what it says and
in what it does not say, in what is permitted and what is forbidden, to the
requirements and the conditions of the hoterogeneous and varied reality which
it is designed to control and direct.
/It should ITO/191
Page 2
It should be said clearly and frankly that with the inevitable limitations
of a work which is-the result of numerous compromises between different points
of view, tendencies and requirements, the Charter of Havana is a substantial
improvement on the Geneva Draft. The Geneva Draft has been replaced by a wider
and more flexible text, more readily adaptable to regional reqgrements and to
the individual economic characteriatics of the various countries of the
Organization. The hermetic, rigid, standardized formulas which distorted
reality to make it fit their over-narrow and sophistical requirements, have
given place to wider formulas of a fuller and less precise kind, which regard
local pecularities and characteristics as perfectly legitimate and justifiable.
A too fragmentary and partial way of looking at problema, bas been replaced
by a wider vision with an understanding of the difficulties which are the
determining cause of measures which cannot be revoked without serious
disturbance. The diversity of economic, political and social phenomena has
been matched by a more flexible standard, more easily adjustable to each
individual and specific situation. Since the world is not a mathematical
entity, how could be confirmed within a geometrical formula?
The Charter of Havana marks a step forward from previous drafts, along
the road which must be travelled if we are to achieve the perfection we
desire. It may, however, be right criticized for a certain excessive
predilection for detailed regulation which attempts to be all-embracing and to
confine the most varied subjects within strict riles and specific provisions.
With its numerous precepts levelled like loaded rifles, its infinite number
of rules, exceptions and safeguards, it gives the impression of a vast but
too abstruse effort lacking the sober precision which, in a short, flexible,
lucid text, would cover present day reality and the reality which for ever
emerges for the uncertainty of the future.
Throughout the Charter appears as its dominant characteristic and
distinguishing mark, the sender hope of establishing a formula for multilateral
free trade at a time when multilateral payments are impossible. The text
itself recognizes that we are living in a time when, at least until
1 March 1952, exchanage controls, quantitative restrictions and discriminatory
practices will have to be maintained in force as inevitable solutions. We
are, therefore, approving a solution for a problematical future when the
uncertainty, the crises and the difficulties of these dramatic years full of
urgent necessity; have been replaced-by more favourable times and when
normality and order are possible again. of the five years for which the
present provisions of the Charter are to remain in force, there will be four
at least, admitted to be exceptional by the Charter itself and included under
the special provisions drafted to legalize the unavoidable contradiction
/between the ITO/191
Page 3
between the letter of the Charter and real life, which will remain, through
the ineluctable logic of harsh circumstance, outside the scope of inapplicable
Multilateral trade and multilateral payments, the free play of trade and
the elimination of barriers and selective and discriminatory measures, are
ideals the practical realization of which sees to us for the moment only a
distant hope to be confirmed or denied by the unforeseeable future.
If theez hope become fact, then, au new, those countries which have not
achieved full economic development but which are striving hard to do so, with
the justifiable and resolute effort appropriate to the fulfilment of a high
social purpose, must guard against upsetting their plans for development. By
utilizirg their own resources, by developing their natural riches and raw
materials, by introducing more efficient and advanced technology, tools and
means of production, they must stimulate the development of their agricultural
and manufacturing industries in order to free themselves from economic
uncertainty and ensure full employment, raise their standards of living and
make social justice a reality. In making this a reality, there is a primary
duty to which all the economic and commercial plans which are to be applied
must be subservient. It is a wise and far--wighted policy not to forget these
essential obligations.
The Charter recognizes in terms which have acquired undeniable precision,
that traiffs are a legistimate means of defender domestic industry against
the competition of imported articles; but it must be pointed out again that
in certain circumstamce - the present among then - tariffs are not enough.
They must be supplemented by the selective use of foreign exchange, the
defense of the means of payment, by a reasonable limitation of impores so as
to avoid squandering savings produced by hard work or sacrificing national
production. We must foster and encourage the process of industrilization,
following the example of those countries which in spite of their decades of
development continue to protect by various methods their industries large and
The delegation of Uruguy fully understands all the difficulties which have
arisen in the work of improving the provisions of the Charter; we do full justice
to the ideals, the principles, and the motives of those delegates who have
secured the acceptance of stadards which the delegation of Uruguay has been
obliged to oppose. I am not going to recapitulate here the differences with
which I have so often dealt at length, but I do want particularly to emphasize
that the delegator of Uruguay did not consider the consclidation of a certain
type of preference appying to the meat-trade justfied, since preferential
treatment of this kind is not now being put into effect. Nor do we regard the
text of Article 75 on the composition of the Executive Board as satisfactory.
/It is in ITO/191
Page 4
It is in keeping with the domcoratic structuro of Uruguay and the principles
upheld by the Uruguayan delegation at the Conference of San Francisco, that
we have continued to advocate that this governing body be elected on an
egalitarian basis.
The Havana Charter is a vonture fraught with difficulties. In applying
it in practice, a most important, perhaps a decisive, part will be ployed
by the first organization which will have to encounter the initial difficulties
and obstacles and lay down the lines along which it will begin its work. A
charter of such complex structure and with such far-reaching contents and scope,
cannot be established without encouatering a combination of the obstacles
inherent in the period of adaptation and adjustment and the inevitable
opposition of vested interests, established practices and routine.
An understanding spirit in the face of varying situations, a determination
to apply the Charter in conformity with its principles but without forcing
or wrecking the machinery, must be the measure of itsS possibilities of
effectiveness and actioz in the future.
Among trade practices there are many factors which combine to prevent
its development. Many are deep-rooted and difficult to oxcripate, but others,
perhaps more numerous, are more forrmalitics answering purpose which can
easily be eliminate. The League of nations, through its technical bodies and
special conferences, worked towards the standardization of customs
classifications and valuation, a universal tariff nomeneclature and the
elimination of burdensome and useless requirements and formalities. The new
organization will find here a wide and fruitful field and any work it carries
cut, while it may perhaps be unostentatious and unpretentious, will be effective
and of continual daily usefulness.
Gentlemen:
In this hospitable and friendly city of avana, we have lived through
many days of labour and anxiety; but at times when we were oppressed by fatigue
and disappointment, it seemed, to us that the gentle touch of an invisible hand
Gave us fresh inspiration and encouraged us to continue faithfully to carry
out our difficult task. Those of us who.believe that man is not flesh alone
nor a mere ephemeral economic unit were comforted by the remembrance of those
men who, in similar circumstances, passed by the same road and fouht against
similar difficulties. Our great predecessor was Jose Marti delegate
plenipotentiary of Uruguay to the International Monetary Conference of 1891,
of which he left, in that lofty style. a study written by the hand of a
law-giver and a statesman. From the heights of time and glory the apostle
has watcheed, now as then, to see that our hopes wore borne along by favourable
winds.
. |
GATT Library | kx701gj9194 | Speech to be Delivered by Mr. Walter Muller, President of the Delecation of Chlle to the Conference on Trade and Employment, Havana, Cuba | United Nations Conference on Trade and Employment, March 21, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade and Employment | 21/03/1948 | press releases | PRESS RELEASE ITO/188 and ITO/73-194/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/kx701gj9194 | kx701gj9194_90200384.xml | GATT_147 | 1,471 | 9,470 | UNITED NATIONS CONFERENCE ON TRADE AND EMLOYMENT
DEPARTMENT OF PUBLIC INFORMATION
HAVANA, CUBA
ADVANCE TEXT PRESS RELEASE ITO/188
CHECK AGAINST DELIVERY 21 March 1948
SPEECH TO BE DELIVERED BY MR. WALTER MULLER, PRESIDENT OF THE
DELECATION OF CHlLE TO THE CONFERENCE ON TRADE AND EMPLOYMENT, HAVANA, CUBA
Mr. President, Gentlemen:
Our long and labourious task is drawing to its close. We are on the
point of returning to our own countries to submit the final draft of the
Charter for the consideration of our respective Governments.
During our discussions and now that they are over, we have asked
ourselves whether the Charter is satisfactory. Like everything that is the
outcome of compromise over economic and commercial intereste which not only
do not coincide but are in many cases conflicting, the Charter cannot be
completely satisfactory to any delegation; it is not wholly satisfactory to
the Chilean delegation. The only possible way of reaching agreement was, in
many cases, to abandon aspirations which ve still believe to be legitimate.
As is shown by its history, Chile believe that the nations must live
together in peace, and that international trade must be used as en instrument
to create prosperity and to raise the standard of living of our workers.
We had, however, to defer many of the objectives contained in the Chilean
amendment to the more urgent neceasity or reaching an agreement which is
today more than ever essential in a world full of difficulties and threats
for the inmediate future.
The failure of this Conference would have shown that the countries
meeting here in Havana were incapable of doing anything constructive to
integrate international trade on a peaceful and harmonious basis. It would
also have, shown their unvillingess to submit to a regulation of trade which,
while protecting the rights of all, obliged them, as a logical consquence of
living in a community, to renounce a part of their individual rights. We
cust, therefore, applaud the fact that agreement has been possible.
The countries represented here, comprising almost all the countries in
the world, have set an example of perseverance, a spirit of conciliation and
a desire for mutual understanding which offer a prospect of better times for
making.
It can be said with some truth that during discussions in this Conference,
technicalities have out-weighed the need for a better understanding of the
position of the under-developed countries. The outcome of the anxiety to
avoid making any sharper differentiation between the economically strong and
the economically weak countries, disregarding the real differences existing
between them and the urgent need of the week countries to improve their
standards of living, has been a Charter which does not establish the
/differential ITO/188
Page 2
differential treatment which should have been recognized. We have not lost
hope that in the field of international relations and in future Conferences,
the idea of the need for the economically -stronger countries to co-operate
sltruistically in thé work of speedily improving the standards of living of
the weak countries, will open the way to a better understanding. The peace
and tranquillity of the future world will, depend on the practical application
of these ideals. Without their spiritual force, neither this Organization nor
any other will have the creative strength necessary to conquer personal
egotism, nor that of organizations and of countries.
The Charter might also be criticized, as regarded economic development,
for its omission of direct measures of a constructive character to be put
into effect in the countries where they are most needed. The Charter limits
itself to advocating the collection of information, the carrying out of
studies end the formulation of recommendations. Later in the life of the
Organization it will be necessary to fill this gap with active measures.
Organized word trade is not sufficient to produce the industrialization of
the under-developede countries. The social problem in these countries is a
result of their economic weakness. It must be one of the future Organization's
primary objectives to strengthen their economy by the flow of private capital,
the granting of credit by private and state institutions, and the supplying
of machinery and adequate technology. The guarantees which the various
countries may be able to offer to such capital will be factors in determining
their future progress, which must be hastened.
What does the Charter actually contribute to international trade? It
constitutes the first effective attempt to brine order into commerce, to
subject it to an itelligent, ordered and systematic code of procedure,
avoiding all un justified discriminatory practices. The Charter provides a
means of stabilizing world trade through a set of regulations hich make
the necessary allowences for the post war period and the period of
reconstruction, and, as far as has been feasible, for the particular economic
characteristics of certain countries and the situation which prevails in many
of them as a result of the dislocation of international trade brought about
by the war. It does all this without losing sight of the objective of
progressively, eliminating restrictive and discriminatory practice which have
lost their justification, in favour of an expanding world trade holding out a
hope of full employment throughout the world.
In addition to these merits, we consider that the application of the
Charter and the operation of the Organization may well be a means of avoiding
any future repetition of the world economic crisis which began at the end
/of 1929, and ITO/188
Page 3
of 1929, and produced a wave of misery and wretchedness throughout the world.
as a result of the disruption of the economy of every country and of
international trade. Even it the ITO could not prevent a similar crisis it
does at least contain all the elements necessary to cushion the shock and
to prevent it becoming a reaction which would dreg one country after another
in its devastating wake. This fact alone would be sufficient to consider
the Charter as solid guarantee of economic stability in the future.
Mr. President, Chile submitted a number of basis amendments to the
Charter in connection with the Articles dealing with governmental assistance
to economic development, preferential arrangements for economic development,
the Article on quantitative restrictions and the Article dealing with customs
unions together with other amendmenta of minor importance. All were connected
with matters of supreme importance or my country, for its economic future
and for its international commercial relations. We defended our opinions
energetically but always retaining a constructive spirit and an understanding
of the points of view of other delegations. We realize that we had to give
way on many points in achieving a compromise, but on the other hend we
obtained satisfaction with regard to others. I do not intend to enumerate
them. I am however please to state et this plenary meeting that Urugusay
withdraws its reservations regarding Articles 13, 16, 18, 20, 21, 31(a),
34, 35, 50, 74 and 99.
My delegation regrets that we must maintain our reservations regarding
Articles 32 and 36 which are being examined by the appropriate technical
departments of the Governement of Uruguay. We are also maintaining our
reservations regarding Article 93, and Articles 15 and 42 which are closely
linked with it. We are obliged to adopt this position as a result of the
discussions on Article 93 which deals with trade relations with possible
non-members of the Organization. Article 93 makes it extremely difficult or
practically prevents the conclusion of preferential arrangements for economic
development with non-member states, even if the exacting criteria of Article 15
are complied with. A similer difficulty or impossibility arises in connection
with free trade areas and custom unions as provided for in Article 42. We
would have liked to approve the Charter without any reservations. The
Conference decision regarding Article 93 compels us to maintain these
reservations, a decision which we regret.
Mr. President, it has been a great pleasure for our delegation to
enjoy personal contact with such distinguished delegates from other countries
and to become acquainted through them with problems which face their
respective countries. Such personal contact and acquaintance with their
problems can only produce added understanding in the task of strengthening
/the bonds of ITO /188
Page 4
the bonds of friendship throughout the world. This is especially true of
the close union between the representatives of Latin America. At this
Conference, the common bonds of history, tradition and race which unite us,
have been strengthened by our effective work in defence of our common
interests.
In conclusion, Mr. President, we have been amply compensated for our
arduous ànd tiring work in this great and generous country, the Republic of
Cuba whose Governement, citizens and people, have, with their generous
hospitality, made our stay in Havana a continually happy one. They made an
impression on us which we will never forget and for which we are deeply
grateful. |
GATT Library | rs965zz2426 | Speech to be Delivered by Sardar H.S. Malik, Leader of the Indian Delegation, at the Flnal Plenary Session | United Nations Conference on Trade Employment, March 19, 1948 | Department of public Information Havana, Cuba and United Nations Conference on Trade Employment | 19/03/1948 | press releases | ITO/178 and ITO/73-194/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/rs965zz2426 | rs965zz2426_90200375.xml | GATT_147 | 1,202 | 7,248 | UNITED NATIONS CONFERENCE ON TRADE & EMPLOYMENT
Department of publie Inforation
Havana Cuba
ADVANCE TEXT
HOLD FOR RELEASE ITO/178
Check against Delivery 19 March, 1948
SPEECH TO BE DELIVERED BY SARDAR H.S. MALIK,
LEADER OF THE INTDIAN DELEGATION, AT THE FlNAL PLENARY SESSION
Mr ,President,
We have assembled here today to place the coping
stone on a structure of which all of us have reason to be proud, and
to which, we hope, posterity will look up with a feeling of gratitude.
by adoptping this Charter of the international Trade Orgniztion, we
are, at this historic moment, taking a big stop forward in interna-
tional economic cooperation.
India today stands at the threshold of her destiny.
With the enormous natural resources which are still to be developed
and the opportunities we now have fer developing them, we are committed
to a programmes of rapid economic development in the immediate future
which indeed is essential if we are to achieve anything approaching
decent standards of living for our vast population. Such a programme
can only be carried out if we have freedom of action. At the same
time India, with the status that she has acquired among the great
nations ot the world is conscious also of the responsibilities that
she must now shoulder in the international field. She is determined
to carry out those responsibilities and to play her part in inter-
national collaboration. It is that consciousness and that deternina-
tion which has guided the Indian Delegation, throughout the delibera-
tions which have, led to the framing of the Charter and, let me assure
you Mr. President, and all those present here that it is that spirit
which will guide us, aIl through the future. A nation like ours, which
has just attained its independerce and has yet to cvolve its own eco-
nomic and commercial policies, to meet the compelling needs of its own
economic situation, finds it siganificant that the framing of this Char-
ter should have so closely coincided with the beginning of a new chap-
ter in Indial's own economic history; Throughout our association with
the preparatory work of this Charter, we in the Indian Delegation have
not had the problem of reconciling vested intere'sts or long-esta-
blished policies to a new code ot behaviour, but have rather had the
feeling of solving a new economic policy for a new and progressive
economy that (more) -2_- ITO/178
India
re consider urgent both for ourselves, and for other countries similarly-
onditioned.
We are happy, and indeed gratified, at the theught that cur
efforts at adapting the ITO Charter to the paramount objective of
promoting economic development and rising standards of living in all
undeveloped or underdeveloped regions of the world, side by side with
the expansion of international trade have been rewarded with a sub-
stantial measure of success. The Charter is certainly not all that
each one of the nations represented here would haveliked it to de
from its own individual point of view. Indeed, this Charter is a
monument to the spirit cf reasonable compromise and conciliation
which all the countries here have show in approaching their indiv-
idual problems. It is of the essence of a world agreement of this
kind and of its vast scope, that it should have regard to the needs
and requirements of countries in varying economic situations, and of
countries with widely divergent economic systems and economic ideol-
ogies. I am glad to say, however, that despite the understanding
we have shown of each other s needs and the concessions we have made
to each other' s point of view, most of us are in the happy position
of not having had ta sacrifice any of the fundamental objectives
which we cherish and which indeed we could not abandon without be-
traying the interests of our people. This happy outcome has cnly
been possible because of the skilful and sympathetic manner in which
this complicated problem has been faced at this conference. We be-
have that the provisions of the Charter dealing with the Executive
Board of the Orgenization which have assured its fully representative
character should help in securing the consideration of the various
interests of the member countries, but even so the success or failure
of the Organization will largely depend on whether or not the Organ-
izaticn in its working, carries on the tradition of reasonable com-
promise and mutual adjustment .which have been such strong factors
(MORE ) -3- ITO/178
India
in our succcss here,
Although the Charter is thé outcome of cooperative effort in
which all nations present here have participated ani which in its var-
ious parts reflects the thoughts and ideas of all of us, I cannot
help thinking on the present occasion of the valuable work done by
the Delegation of that great country, the United Stztes who were res-
ponsible for the conception of the original proposals. Theirs has
undcubtedly been the most outstanding contribution, One can pay it
no greater tribute than to say that it has been worthy cf the undis-
puted leadership which that country holds in world economic affairs,
The success of this Conference on some of the most difficult and con-
troversial issues which held up its progress at One stage was in no
small measure due to the tact, imagination and understanding displayed
by the United States Delegation, and, let me add, to the spirit of
reasonable accommodation and understanding of the difficulties cf
the more advancedd cuntries shown by those of us of the under-devel-
oped regions of Latin America, the Middle East and the East who fought
hard naturally for what we felt was essential for us but were always
willing to compromise in the interests of a general settlement which
would be beneficial to all.
To you, Mr, President, this Conference owes a prefound debt of
gratitude, and I an sure I am vocing the feelings of all present
here when I say that we have been extremely fortunate in having a
President who, apart from his conspicuous ability in guiding our de-
liberations, was able to create an atmosphere of goodwill and friend-
ship so essential to the smooth working of a Conference of this kind.
in you, Sir, we all felt we had not only our President, but a friend,
always available for advice and ever ready to assist and help along
the work on which we were engaged. We would like also to extend our
thanks to the Government of Cuba and the people of Havana for the
kind hospitality we have enjoyed during these last few months, and
(MORE) ITO/178
India
for all they have dene to make our stay here so comfortable and on-
joyable. Last, though by no means least we wish to pay our tribute
to thè Socretariat who have worked light and day with an efficiency
and devotion so great that one has almost not heard the working of
this great machine. The Chartar, which has been aptly named the
Havana Charter -- a happier name would haveo bean difficult to find--
will carry with it, for us, many pleasant memories of the friendships
and associations we have made among the people of Havana. |
GATT Library | bq406dd3205 | Speech to be delivered by the Chief Delegate of China at the closing session of the Havana Conference | United Nations Conference on Trade & Employment, March 19, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade & Employment | 19/03/1948 | press releases | Press Release ITO/179 and ITO/73-194/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/bq406dd3205 | bq406dd3205_90200378.xml | GATT_147 | 771 | 4,780 | UNITED NIATIONS CONFERENCE ON TRDE & EMPLOYMENT
Department of public Information
Havana, Cuba
IOLD FOR RELEASE Press Release ITO/179
DVANCED COPY 19 March 1948
CHECK AGAINST DELIVERY.
SPEECH TO BE DELIVERED BY THE CHIEF DELEGATE
OF CHINA AT THE CLOSING SESSION OF THE HAVANA
CONFERENCE.
(English Translation)
After four months of arduous work, the Havana Conference is
able to present to the word a Charter for the future ITO, thereby
registering another milestone on the long road to the establishment
of a new order for international trade. While the objective set be-
vore us is much nearer, we still have some distance to travel before
be can reach the final goal. On account of slow progress of world
recovery in tho economic demain, a certain number of fundamental prin-
iples which are enshrined in the harter have yet to be implemented.
however) I consider that a foundation of stability and equilibrium
las been laid for the future.
Through the welter cf ne less than 800 amendments presented to
the Conference, we have produced something which is in fact the syn-
shesis of different schools of thought, and which is flexible enough
or various types of ecenemies to wend their way into a commenn work-
able pattern of trade relatiens.
In reading, through ages after pages of the Charter, I cannot
but feel that whatever its shortconings, it does represent a delicately
alanced document. The obligations assumed under the provisions of
me section of the Charte are conditioned upon the fulfilment of
those in the other. The seemingly inconsistent obligations have been
ntegrated into a single which in such a manner that the manifold in-
serests are well taken care of. All this is desigined for the single
urpose of the promotion of the well-being of the people through the
xpansion of world trade, the maintenance of full employment, and the
ncouragement and achievement of economic development, The rights and
obligations of the Members are so interwa ven that any upsetting
f the balance will have to be redressed by compensatory remedies.
(MORE) ITO/179
19 March 1948
Page 2
As you will all recall, the placed atmosphere and tedious
sittings of the Conference have at one time or anothar been punctuated
with what was described as the crisis over the question of the QR
for the purposes of development. It may appear to the public that
probably due to the publicity that was given to that particular issue,
the solution eventually reached in this Conference regarding that
question should give ample satisfaction to those countries which are
still in in the early stages of development. But I believe we have
also ound solutions to other problems which some of the highly
developed countries have considered to be important to them and
concerning which they do not wish to be hampered by the restrictions
of the Charter, In saying so, I am referring to those provisions
which deal with the maintenance of export subsidies of primary
commodities and those others which permit departure from the rule
of non-discrimination for the purpose of meeting balance of payments
difficulties. It seems to me, therefore, that as a result of our
deliberations, a realistic view has been taken by all the participating
countries in the common endeavour to solve the problems which are
faced not only by the less-developed countries, but also by the
highly-developed countries as weell.
Now that va have drawn up the Havana Charter to be submitted to
our respective governments for examination and decision, as well as
to the public for their critical study and analysis, it is to the
future that we should look forward. The Charter will remain a dead
latter unless it is implemented by the concerted action and good-will
of the peoples and the governments concerned. I can assure you,
Mr. President, that China, true to her traditional policy of
international co-operation will make whatever contribution she could.
towards the radiation of the purpose and objectives set before us.
(MORE) -3-
ITO/179
China
On behalf of the Chinese Delegation, may I express our
sentiment of appreciation and gratitude to the Cuban Guvernment
for theïr hospitality and for the delightful surroundings and
facilities which have been provided, and without which our work
would nit have been so successfully concluded. Mr. President,
to you Sir, I wish to say that under your wise guidance we owe
much fur the success of the Conference. I may be permitted to
add that allofficers and the members of the secretariat of this
Conference deserve high praise from us all for the way in which
they contributed to the fruitful result of the Conference. |
GATT Library | dg969qf8750 | Statement by Dr. El Tanamly, represenative of the Arab League at the Meeting of 12 May 1948. The League of Arab States and the Economic Development of the Middle East | United Nations Economic and Social Council, May 14, 1948 | United Nations. Economic and Social Council and Ad Hoc Committee on proposed Economic Commission for the Middle East | 14/05/1948 | official documents | E/AC.26/15 and ICITO/EC.2/7-ICITO/EC.2/7/K | https://exhibits.stanford.edu/gatt/catalog/dg969qf8750 | dg969qf8750_90060194.xml | GATT_147 | 2,585 | 17,206 | UNITED NATIONS NATIONS UNIES
UNRESTRICTED
ECONOMIC CONSEIL E/AC.26/15
AND ECONOMIQUE ENGLISH
SOCIAL COUNCIL ET SOCIAL ORIGINAL: FRENCH
AD HOC COMMITTEE ON PROPOSED
ECONOMIC COMMISSION FOR THE MIDDLE EAST
STATEMENT BY DR. EL TANAMLY, REPRESENATIVE OF THE
ARAB LEAGUE. AT THE MEETING OF 12 MAY 1948
THE LEAGUE OF ARAB STATES AND THE ECONOMIC DEVELOPMENT OF THE MIDDLE EAST
The League of Arab States, founded on 22 March 1945, is an inter-
governmental organization. It is the only regional organization in the
Middle East. It is composed of the independent Arab States, i.e., Syria,
Lebanon, Transjordan, Iraq, Saudi Arabia, Yemen and Egypt. All these States,
with the exception of Transjordan, are Members of the United Nations. The
Pact of the League further provides that any independent Arab State may
become a member of the League.
I. THE COMMITTEES
Article 2 of the Pact defines the aims of the League of Arab States.
The Article is worded as follows:
"The purpose of the League is to draw closer the relations between
member States and co-ordinate their political activities with the aim
of realizing a close collaboration between them, to safeguard their
independence and sovereignty, and to consider in a general way the
affairs and interests of the Arab countries.
It also has among its purposes a close co-operation of the member
States, with due regard to the structure of each of these States and
the conditions prevailing therein, in the following matters:
(a) Economic and financial matters, including trades Customs,
currency, agriculture and industry.
(b) Communications, including railways, roads, aviation,
navigation, and posts and telegraphs.
(c) Cultural matters.
(d) Matters connected with nationality, passports, visas,
execution of Judgments and extradition.
(e) Social welfare matters.
(f) Health matters.
/Article 4 of the Pact E/AC.26/15
Page 2
Article 4 of the Pact states that a special committee shall be formed
for each of the categories of questions enumerated in Article 2. These
committees shall be responsible for establishing the basis and the extent
of co-operation between the member States.
There are now in existence, besides the Political Committee, a Committee
for Economic and Fiscal Matters, a CuItural Committee, a Committee on
Communications, a Legislative Committee, a Health Committee and a Committee
on Matters connected with Nationality, Passports, Visas, Execution of
Judgments and Extradition. The formation of a special committee for Social
Welfare Matters is imminent.
A. The Economic and Fiscal Committee
In 1945 this Committee drew up a Report which amounts to genuine
"economic planning" for the member States of the League. This Report
Contains practical recommendations on the following two questions:
(a) Agriculture
The action devoted to agriculture makes recommendations on the
following subjects:
1. Exchange of information
(1) Collection of information on the present state of agriculture
in the Arab countries;
(2) Standardization of statistical methods. Organization of
exchanges of statistics between the Arab countries;
(3) Exchange of information on agriculture between the Arab
countries and other States;
(4) Organization of conferences of experts.
2. Research
(1) Development of scientific research in each member State;
(2) Co-operation between the various member States in order to
obtain the best results from such research;
(3) Publication of such research.
3. Education
(1) Dissemination of modern agricultural methods;
(2) Establishment of intermediate schools for the training of
technicians able to set an example to the peasants;
(3) Development of agricultural teaching in rural schools, and the
establishment of technical schools;
(4) Raising of the standard of living of the peasant, from the
economic, cultural and social point of view;
(5) Increase of peasant incomes.
/4. Co-operation E/AC.26/15
Page 3
4. Co-operation
(1) Propagation of co-operative principles;
(2) Establishment of agricultural co-operative societies;
(3) establishment of an Arab Co-operative Union.
5. Legislation
(1) Collection of information on agricultural legislation in the
Arab States. Establishment of a basis for reform in these States;
(2) Collection of information on the present landholding and
agricultural systems especially as regards relations between
landlords and farmers. The establishment of a system capable of
inducing greater production and a better standard of living, for
the cultivators;
(3) Organization and supervision of exports of agricultural
(4) Recording of fluctuations in international prices with a view
to organizing production so as to avoid agricultural products
being sold at a loss;
(5) Organization of agricultural credit;
(6) Report of the system of taxes and dues.
6. General
(1) Acquainting the public with agricultural problems;
(2) Increasing the budgets of departments and groups dealing
with agriculture;
(3) Training teams of technicians able to prepare and carry out
reforms in the various Arab States.
trade and Industry
The Sub-Committee on Commercial and Industrial Matters, adopted
recommendations on the following points:
(1) Exports of surplus local products to the member States of the
League. Collaboration in obtaining supplies of raw materials;
(2) Development of transport facilities;
(3) Exchange of information and statistics. Standardization of
statistical methods. Reporting of statistics to the Secretariat of
the League;
(4) Exchange of trade representative
(5) Establishment of regional exhibitions of industry and agriculture.
Collective participation in international exhibitions;
(6) Development of the tourist trade;
(7) Co-ordination of the Customs policies of the member States;
(8) Co-ordination of Customs regulations and relaxation of formalities;
(9) Exchange of practical and scientific missions;
/(I0) Formation E/AC. 26/15
Page 4
(10) Formation of regional, industrial, commercial and financial
undertakings, with the joint participation of member States and
private enterprise;
(11) Establishment of regional Chambers of Commerce and Industry;
(12) Development of scientific and technical research and exchange
of results of such research;
(13) Development of education;
(14) Co-ordination of legislation concerning trade or industry.
Standardization of weights and measures;
(15) Plan for fixing rates of exchange. Study of the possibility of
introducing a single monetary system for member States.
C. Committee on Transport and Communications
During 1946 the Committee on Transport and Communications prepared the
following drafts:
(a) Aviation
(1) Draft Convention between member States. This draft mentions
the establishment of an Arab Aviation Council;
(2) Formation of a large Arab company for civil aviation, Member
States and private individuals will join in forming this company.
(b) Posts
(1) Establishment of an Arab Postal Union.
(2) Application of local tariffs to letters and postcards
addressed to member States.
(c) Telephones and Telegraphs
Scheme for an Arab Telephone and Telegraph Communications Union.
This scheme deals principally with the following questions:
(1) Establishment of an Arab Union;
(2) Fifty per cent reduction for press telegrams;
(3) Twenty per cent reduction in present telegraph rates.
(d) Railways, Roads and Shipping
(1) Standardization of railway guages;
(2) Nationalization of the railways;
(3) Plan for the construction of certain railways deemed to be
necessary for facilitating transport between the Arab countries;
(4) Plan for the construction of certain roads;
(5) Formation of a large shipping company. Governments and private
individuals will join together to form this company.
D.The Legislative Committee
The Legislative Committee has already done useful work. The former
Chairman of this Committee is the author of a new Egyptian Civil Code.
/He is also the A/AC .26/15
Page 5
He is also the originator of similar codes for Iraq and Syria.
In commercial matters the Committee has prepared a large part of a
unified Trade Code for States-Members. The Committee has taken advantage of
the great amount of legislation already enacted in Lebanon.
In the field of supplementary commercial law the Committee has drawn
up a draft model law on copyright. The Committee is at present putting the
finishing touches to other standardized drafts for patents, industrial
designs on models and trademarks.
The standardization of Juridical institutions will clearly trade and
help to consolidate the economic unity of the Arab countries. Legal
institutions are the framework within which economic activity develops.
E. The Other Committees
To attempt to survey the whole of the activities of all the Committees
of the League of Arab States would be a tedious business. It may, however,
be useful to mention the work done by the Cultural Committee in
standardizing educational programmes in member States.
The drafts already prepared on passports, visas, the execution of
judgments and extradition, are facts to be kept in mind by all those
interested in trade between countries of the Middle East.
II. THE SECRETARIAT
The Secretariat of the League is divided into departments corresponding
to the Committees mentioned above.
The Economic and Fiscal Affairs Department constitutes an economic
research and information centre. It is not concerned only with data
regarding member States of the League and their economic development; it
also follows with great interest economic phenomena on a regional and
world-wide scale.
The activities of the Department may be summarized under the following
heads:
(1) Collection and co-ordination of statistics published by the various
Arab States;
(2) Publication of a statistical bulletin in Arabic;
(3) Establishment of an information centre for traders and commercial
groups in the various Arab states. The centre serves as a link between
such individuals and groups and the appropriate governmental authorities;
(4) The Department follows and records the activities of the United
Nations in the economic and social field. It collects information on
international conventions of an economic character;
(5) On a regional level the Department is taking part in the
organization of the Cairo Agricultural and Industrial Exhibition;
/(6) The Department A/AC. 26/15
Page 6
(6) The Department is at present studying the currency question in the
member States of the Arab League.
III.THE LEAGUE AND THE UNITED NATIONS
This summary demonstrates similarity of the purposes and methods of the
League of Arab States and the United Nations.
The Pact of the League is at several points similar to the United Nations
Charter and the resemblance becomes complete when one examines the purposes
of the two organizations. Comparison of Articles 2 and 5 of the League Pact
and Article 1 of the United Nations Charter affords sufficient proof of this.
(See Pact of the League of Arab States in "Documents of the United Nations
Conference on International Organisation" vol. XII).
The fact has, moreover, been recognized by the authors of the two
conventions. Article 52, paragraph 1, of the United, Nations Charter states
that
"Nothing in the present Charter precludes the existence of
regional agreements or agencies for dealing with such matters relating
to the maintenance of international peace and security as are appropriate
for regional action, provided that such arrangements or agencies and
their activities are consistent with the Purposes and, Principles of
the United Nations."
The third paragraph of Article 3 of the Pact of the League of Arab States,
defining the competence of the Council of the League states that it " shall
also have the function of determining the means whereby the League will
collaborate with the international organizations which may be created in the
future to guarantee peace and security and organize economic and social
relations."
Although Article 52 of the United Nations Charter, unlike Article 3 of
the League Pact, makes no mention of economic and social matters, there can
be no doubt that the latter are included in the conditions of stability and
well-being necessary for peaceful and friendly relations among nations
(United Nations Charter, Article 55). There can therefore be no doubt that
the need for close co-operation between the United Nations and the League of
Arab States in the economic and Social field is emphasized by the actual
Charters of the two organizations.
The articles mentioned have not remained a dead letter. Co-operation
between the two organizations has already produced results.
In September 1947 I was invited by UNESCO to take part in the work of
the Committee of Experts for the preparation of an International Copyright
Convention, Although the invitation was a personal one, it showed the desire
of the specialized agencies of the United Nations to co-operate with experts
from the League of Arab States. It was this desire to collaborate and
/co-operate in the A/AC .26/15
Page 7
co-operate in the intellectual field that enabled the Conference of Experts
to issue unanimous recommendations.
In February 1948 the League was invited to participate in the work of
the FAO Regional Conference . I had the honour of representing the League
at the Conference and I was able once again to appreciate the value of
co-operation between the League and the United Nations.
The United Nations has not overlooked the activity of the Arab League
in widely differing fields. Thus, in the report of the Transport and
Communications Commission one reads that in the field of transport and
communications in the Middle East "the only multilateral arrangement consists
of the Transport and Communications Commission of the Arab League"
(document E/CN.2/34).
It may also be noted that the brilliant reports submitted to the Ad Hoc
Committee by the Secretariat have faithfully reflected the work accomplished
by the Arab League .
The Report on the Activities of the Interim Commission of WHO, issued
in November 1946, shows how the Arab League is co-operating with WHO through
the Arab Bureau in Alexandria (document E/593).
The ILO regional meeting at Istanbul in November 1947 called attention
to the importance attached by the ILO to close co-operation between itself
and any Economic Commission for the Middle East. It also stressed the
importance of collaboration with the League of Arab States. (See ILO official
Bulletin Vol. XXX. No. 4, page 215).
IV. THE LEAGUE AND THE PROPOSAL TO ESTABLISH AN
ECONOMIC COMMISSION FOR THE MIDDLE EAST
In its Resolution of 31 October 1947, inviting the Economic and Social
Council to study the factors bearing upon the establishment of an Economic
Commission for the Middle East, the General Assembly stated "that such
measures would be facilitated by close co-oporation with the United Nations
and its subsidiary organs as well as with regional organizations in the
Middle East such as the Arab League."
The Economic and Social Council made a similar reference in its resolution
of 8 March 1948 to the value of co-operation with the Arab League.
The Ad Hoc Committee in its resolution of 15 April 1948 invited the
Arab League to send a representative to take part, without vote, in its work.
Convinced of the value of international co-operation in the economic
field the Arab League was glad to give prompt acceptance to this invitation.
The League of Arab States, as the only organization working in the
economic field for the prosperity of the Middle East, is following with great
interest the work of the Ad Hoc Committee. However, conscious of the special
/circumstances A/AC.26/15
Page 8
circumstances of the Middle East, the Arab League feels bound to draw the
Ad Hoc Committee's attention to the necessity of taking those special
circumstances into consideration; it is common knowledge that foreign political
influences have been among the reasons for the economically backward state
of some countries in the Middle East. It is also common knowledge that the
Middle East has been the scene of political rivalry between the Great Powers
and that their rivalry has not been such as to encourage economic development
and stability in this part of the world. The Arab League therefore believes
that every possibility of foreign influence in the affairs of the Middle East
should be removed.
The League of Arab States with its heavy responsibility towards the
peoples of the seven States of the region considers that its participation
in any organization created for the Middle East is the logical counterpart
of its obligations and itsswork.
The Arab League is convinced that co-operation and goodwill are the
best guarantees for the peace and prosperity of all. |
GATT Library | jt402bx5633 | Statement by Dr. Urbano A. Zafra acting Chairman, Philippine Delegation, before the Plenary Session | United Nations Conference on Trade & Employment, March 20, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade & Employment | 20/03/1948 | press releases | Press Release ITO/l84 and ITO/73-194/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/jt402bx5633 | jt402bx5633_90200381.xml | GATT_147 | 1,215 | 7,807 | UNITED NATIONS CONFERENCE ON TRADE & EMPLOYMENT
Department of Public Information
Havana, Cuba
HOLD FOR RELEASE Press Release ITO/l84
CHECK AGAINST DELIVERY 20 March l948
STATEMNT BY DR. URBANO A. ZAFRA
ACTING CHAIRMAN, PHILIPPINE DELEGATION,
BEFORE THE PLENARY SESSION
Mr. President and fellow Delegates:
The members of the Philippine Delegation came to this Conference
with open eyes, open ears and open mind. We were not as fortunate as
those who had participated in the previous meetings of the Preparat-
ory Committee and Drafting Committee at London, New York and Geneva,
to be fully acquainted with the details and implications of the pro-
visions of the Geneva Draft Charter. We therefore had to wait and
hear the explanations and interpretations of those who prepared the
Geneva Draft before intervening in the discussions.
Considering this personal handicap, the members of my dele-
gation are therefore grateful, Mr. President, of the honor and op-
portunities given them to take an active part in the solution of many
important controversial issues, We feel proud of the fact that my
country was one of the 57 doctors to bring forth this child chris-
tened "The Havana Charter", which we hope will prevent the recurrence
of economic disequilibriun that frustrated prosperity in the past,
Our main concern in this Conference was to a ssure that the
Havana Charter did not conflict with our existing trade treaty with
the United States of America. As the whole world knows, my country
was an unfortunate victim of World War II. We are therefore in an
unhappy situation today to have to reconstruct our economy upon the
ashes of that terrible holocaust. Thanks to the assistance of that
great Republic, the United States of America, we are forging ahead
in our reconstruction and rehabilitation. This special position of
ray country was recognized by the Conference by including among the
(MORE) -2- ITO/184
Philippines
exemptions to the application of the most favored nation treatment,
the preferences in force exclusively between the Republic of the Phil-
lppines and the United States of America and its dependent territ-
ories. Moreover, in providing for the elimination of all exclusive
preferences, the Conferenco also recognized that such elimination
shall not bc made abruptly and that it shall only be done on a re-
ciprocal and mutually advantageous basis.
Mr, President, for this recognition of a matter so vitally
important to my country, I wish to express to my fellow delogates,
the appreciation of my delegation.
Since the beginning, my delegation accepted the principle
of quantitative restriction of the Geneva Draft and supported the
requirement of prior approval of ITO for the use of protective mea-
sures otherwise prohibited under the Charter. We felt, however,
that underdeveloped and war devastated states must be given special
authority for a transitory period to employ such measures for the
purpose of their economic development or rehabilitation. To this
end, we submitted an amendment but, in the spirit of conciliation
and in the expectation that recognition would be given to the need
of countries whose economies had been partially or completely destroy-
ed by. the war, we withdrew our anrIendment.
fit that stage of our Conference, we, in my delegation, were
convinced that, if the highly developed states could agree to the
employment of protective measures under limited specified criteria
which must not be too broad as to render meaningless the prohibition
against the imposition of quantitative restrictions nor too narrow
as to defeat the purpose for which th. special permission to use
such protective measures is intended, we could come to a common
satisfactory solution. With this conviction, the Head of my dele-
gation, Mr. Emilio Abello, together with the delegates of Chile,
Mr, Walter Mduller, and Mexico, Mr. Ramon Beteta, submitted a pro-
posal to the Coordinating Committee under which underdeveloped (MORE) ITO/184
-3- Philippines
and devastated countries would be allowed to use protective measures
under certain specified criteria. That proposal drew a counter pro-
posal from the delegate of the United States of America, Mr: Clair
Wilcox, which, as we all know,- became the basis of settlement of this
most important-and controversial issue.
While the special criteria recovendcd by the Cordinating Com-
mittee recognized the need of countries for speciai protection of
industries established immediately prior to the war and developed un-
der abnorual conditions, no corresponding recognition was given to
the need of these countries which having been occupied and devastated
by the enemy, could not have had the cpportunity to establish new in-
dustries luring the war, We, therefore, deeply regret, Ir, Presii2nt,
that the Cccrdinatin- Ccmi-iittec did n-t find. it .possible to orcvide
for this special need cf devastatedd areas, like the P.ilippines.
Miy delegation was also greatly interested in the proposal for
the establishment of an Economic Devolopmert Cocnittee. We supported
that proposal in the belief that the Ccoaitcee would provide the means
cf allaying the fears cf underdevelcped areas that their applications
would not receive sympathetic consideration by the Organization.
Here again, Mr, President, my delegation regrets that the Ccordinating
Cocnittee found it necessary net to accept the- proposal, in crcler to
arrive at a compromise settlement that wculid :aeet general acceptance,
Notwithstanding cur dLsappointment on these two matters I men-
ticned, in the same spirit c.f conciliation and compromise shown by
the cther delegations, my delegation joined in the approval of the
recommendations of the Cccrdinating Committee as a basis for an over-
all settlement of the issues then pending before the Conference.
Mr, President, the experience of my delegation in the four
months of cur arduous deliberations was indeed one of a series of
comprcmises. On some questions, our views were adopted; on others,
they were rejected. I believe I can safely say that other delegations
went thrcugh a similar experience. (MORE) I 0/184
Philippines
In signing the Final Act, my delengaticn fools it its duty to co-
operate with the other delegations and do its part to comlplete the
Havena Charter so that it may be submitted to the various governments
concerned at the earliest possible time, For our part, in the Philip-
pine Delegatian, we wish to assure the Conference that we shall do
our utmost to explain to my government the various viewpoints that
entered into the consideration of the provisions of the Havana Charter,
in the hope that, after fully weighing their implications, my govern-
ment may find it to the benefit af my country to accept the Havana
Charter. Beyond that, Mr. President, we can do no more. Under our
Constitution, the Havana Charter can only be accepted or rejected by.
our President and our Congress,
Before closing, Mr. President, I wish to take this opportunity
of expressing on behalf of the other members of the Philippine Dele-
gation and mysalf, our gratefulness for the generous hospitality
shown us by the Government and people of Cuba. The Havana Charter
could have not been conceived in a better place than Havana--a city
blessed. by Nature with a pleasant climate and peaceful surroundings,
2 city with a lcng tradition of world trading, a city humming with
the air cf progress and prosperity.
So, Mr. President, the Philippine Delegation therefore makes
this wish to The Havana Charter: May the good firtune of Havana
your birthplace, augur your bright and successful future,
.
. |
GATT Library | wn627kn3497 | Statement by Mr. L.D.Wilgress, Chairman of the Contracting Parties at the conclusion of the Second Session, on 14 September 1948 | General Agreement on Tariffs and Trade, September 14, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 14/09/1948 | official documents | GATT/CP.2/45 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/wn627kn3497 | wn627kn3497_90320067.xml | GATT_147 | 1,428 | 8,680 | RESTRICTED
LIMITED B
GATT/CP.2/45
14 September 1948
ORIGINAL: ENGLISH
General Agreement on Tariffs and Trade
Contracting Parties
Second Session
Statement by Mr. L.D.Wilgress, Chairman of
the Contracting Parties at the conclusion of
the Second Session, on 14 September 1948.
We have now completed the work of the Second Session
of the Contracting Parties.
This may be regarded as the first test of the provisions
of Article XXV of the General Agreement on Tariffs and Trade
for periodic meetings of representatives of the Contracting
Parties for the purpose of giving effect to those provisions
of the Agreement which involve joint action and, generally,
with a view to facilitating the operation and furthering the
objectives of the Agreement. From this point of view we can
regard the Second Session as an unqualified success. We
have met to consider a number of most difficult and complex
problems and we have dealt with them in that spirit of co-.
operation and good-will which from the outset has character-
ized the attitude which led our different countries to con-
clude the General Agreement. The Contracting Parties have
proved themselves to be a very vital force.
Our session has lasted much longer than we had anti-
cipated. I do not think we need make any excuse for this.
It is simply due to the variety and complexity of the prob-
lems with which we had to deal. It is important, however,
that for future sessions we should, in advance, make pro-
vision for ample time in which to deal with the items on the
agenda.
We have made arrangements for the scheduling of a second
round of tariff negotiations to commence next April. The
chief purpose of these negotiations is to permit the accession
of new countries to the General Agreement. This is important
because, as I said in my statement at the opening of the
Session, we must not give the impression that we have in any
way constituted ourselves into a sort of exclusive club.
We need from time to time the infusion of new blood through
the accession of other countries to the General Agreement.
Only in this way ean the Contracting Parties maintain that
dynamic quality which is now one of our most notable char-
acteris tics.
We have provided for the replacement of particular
provisions in Part II of the General Agreement with the
corresponding provisions of the Havana Charter and have also
provided for amendments to Part I and Article XXIX of the
Agreement. I believe that this should complete the
necessary modifications of the General Agreement prior to GATT/CP.2/45
page 2
the coming into force of the Charter. It would be a bad
thing if we got into the habit of amending the General
Agreement at each session of the Contracting Parties. Now
that we have had a thorough discussion of the question of
modifications of the, General Agreement we should. be able to
leave the Agreement untouched until the Havana Charter enters
into force, after which time I believe there will be little
need to consider further modifications of the Agreement.
If the Charter does not enter into force at the time we anti-
cipate, there is provision in Article XXIX which will enable
the Contracting Parties to discuss the situation which will
be created thereby.
We have made the necessary arrangements to regulate,
on an informal basis, the relations between the Contracting
Parties and the International Monotary Fund prior to the
coming into force of the Havana Charter. We have also taken
the first steps looking towards the special exchange agree-
ments between the Contracting Parties and those contracting
parties who are not members of the International Monetary
Fund.
We have taken the very important step of working out
procedures for dealing with exceptional measures which any
of the contracting parties may find it necessary to take in
accordance with the provisions of Article XXVIII of the
Agreement.
Besides taking all those constructive steps we have had
to deal with a number of special problems created by diffi-
culties which have arisen in connection with the application
of the General Agreement by certain countries. We have
tackled those problems in a spirit of understanding of the
difficulties of the countries concerned and have made the
necessary adjustments to enable them to deal with these
difficulties. It is inevitable that in the case of an
instrument such as the General Agreement problems of this
kind should arise in the early stages of its operation.
When the General Agreement was being drafted it could not be
foreseen what special difficultie of this kind would arise,
and hence all of them could not be covered by the more general
provisions cf the Agreement. The Agreement, however, does
provide for means of dealing with special circumstances and
from now on it is important that any adjustments that may be
found necessary should be made within the score of these
provisions rathere than by resorting to such an exceptional
measure as the waiving of obligations under Article XXV.
We have seen evidense at this session of the embarrass-
ment that may be caused by the failure of a contracting
party to send a representative to take part in our delib-
erations, I hope that this will never occur again and that
at the succeeding sessions of the Contracting Parties each
and every one of the contracting parties will be represented.
The General Agreement confers rights but also involves ob-
ligations. This is true of all measures of international
co-operation, and surely the least onerous of all the ob-
ligations imposed by the General Agreement is that of sending
a representative to take part in our discussion of common
problems. GATT/CP. 2/45
page 3
On behalf of all of the representatives of the Con-
tracting Parties, X wish to extend our most sincere thanks
to Mr. Wyndham White and to all the members of his Secre-
tariat for the effective assistance they have given us.
Through the fact that our meet ngs overlapped with those
of the Executive Committee of the Interim Commission for ITO,
a heavy burden was placed upon the Secretariat. They have
borne this burden cheerfully and the assistance they have
given us has not been impaired thereby.
The same applies to our genial interpreters. We have
been fortunate to have with us interpreters whom we all know
well through the work which they did for us in the Tariff
Agreement Committee last year. On behalf of you all I
extend to them our gratitude for the excellent work they have
performed.
Last, but not least, we must acknowledge our debt to
Mr. Moderow and all members of his staff at the European
headquarters of the United Nations. Not only have they
provided us with these very comfortable rooms in which we
have held our meetings, but through the administrative
services under Mr. Evans they have given us admirable help
under most difficult conditions. This particularly applies
to the distribution of documents and the translation services,
.as we arrived here at a time when a session of the Economic
and Social Commission was in progress and we are leaving
while a number of other meetings are being held in Geneva,
as well as on the eve of the General Assembly at Paris.
We are all grateful for the cheerful and efficient way in
which the members of the United Nations staff have done their
best to accommodate us.
Finally, I wish to thank all representatives of the
Contracting Parties for the co-operation they have shown the
Chair in enabling us to got through our heavy agenda in a
thorough but expeditious manner.
We can view with satisfaction what we have accomplished
at this session, and can now rest assured that the Contract-
ing Parties have embarked, under the aegis of the General
Agreement, upon a path of steady development and constructive
work for the good of all. However) we must not relax our
vigilance. We must take care to see that nothing is done
which will retard the steady progress made to date, or perhaps
even take us back rather than forward. In spite of the evi-
dence of sturdy growth which this session has demonstrated,
the General Agreement still needs to be treated with care
and attention if it is to fulfill those high hopes we all
placed upon it when the negotiations at Geneva were con-
cluded last October. It is in this spirit that I hope all
representatives of Contracting Parties will return to their
respective countries and prepare the ground for our Third
Session. |
GATT Library | hs141sm2536 | Statement by Rt. Hon -Walter Nash, Delegate for New Zealand | United Nations Conference on Trade & Employment, March 23, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade & Employment | 23/03/1948 | press releases | Press Release ITO/220 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/hs141sm2536 | hs141sm2536_90200413.xml | GATT_147 | 1,720 | 10,092 | UNITED NATIONS CONFERENCE ON TRADE & EMPLOYMENT
Department of Public information
Havana, Cuba Press Release ITO/220
23 March 1948
STATEMENT BY RT. HON -WALTER NASH, DELEGATE FOR NEW ZEALAND
May I in opening - before entering on the points that I
desire to mention - extend the thanks of New Zealand to the President
and Government of Cuba - to the Chief of the Protocol and to
CACNUCE - for the hospitality and other facilities that havE been
provided for us during our stay in Havana. Opportunities to see
the countryside of this amazing country have been very limited owing
to the many sessions of the Conference. Pinar del Rio, Mariel and
places adjacent to Havana, however, suggest to me that Cuba has a
future as great as any other small country. Its productivity like
its hospitality, is out standing and the benefits coming to it from
this Charter will be as great as that which will come to any other
country. Linked with an equitable distribution of the wealth, the
productivity of its soil, and its climate, should give it one of the
best even living standards of any known area of the world. If that.
living standard is in accord with the magnificent hospitality of
its people then progress is assured.
Again, my thanks to the President and Gavernment of Cuba -
to the Mayor and Councillors of the City Of Havana and to everyone
who has been so kind to the delegates.
Since first we came to Havana on 21st November 1947, 123
days have passed - 123 days of discussion - negotiation - disagree-
ment and agreement. Out of these discussions have come the text
of a Charter to authenticate which it is planned that we should
sign the Final Act tomorrow.
The objective, i believe, of rest of us in coning to this
Conference was to try and so organize world trade as to achieve
the purpose and objectives set out in ,rticle 1 of the Charter; a
purpose to which we all subscribe. it would be good if there was
as much agreement as to the means of achieving the purpose as there
(MORE) Nash New Zealand - 2 - ITO/220
23 March
is on the purpose itself.
There were - there are - and there will be real differences
of opinion as to the way nations must go to achieve the purpose and
objectives. If, however, we get our objectives right, it will be
easier to reach there,
The world at present is dissatisfied and in the future will
be less satisfied with the cruel disparities that are existing irf
living standards and opportunities to enjoy personal freedom. These
disparities -ust be removed if we are to have the personal freedom.
which is the rightful heritage of all humar beings.
More steps have been taken towards achieving this purpose
during the past 10 years than in any like period of history. It is
fully recognized that lifting of living standards - a better chance
for the people all countries - a fuller life - an ordered material
world in which persons enjoy spiritual and mental freedom must be
achieved.
The Havana Charter lays down principles and possibilities
that will lead towards the goal that I have just referred ta an!d
New Zealand, as a small country, will endeavor to live up to and
take its share Qo the responsibility necessary to reach that goal'-
a better world for all - not for ourselves alone - but for all.
When looking nt the conditions of the world there is room
for optimism even though so much pessimism prevails. We have men-
tioned before - but it is worth reiterating - there never has been
in history a period in which the peoples of one nation in particu-
lar, and other nations, have supported others by gifts of the
amazing range which they have provided - Lend-Lease - the Marshall
Plan - Emergency Children's Fund - UNRRA - are great and inspiring
examples of such aid.
This willingness to provide the good things of life to
onable othrs to live, is unparalleled in history. (MORE) -3- ITO/220
New Zealand
Now may I say a word about the origin of the Charter: it
seems time that it originated in the personality of Cordell Hull,
the Secretary of State of the United States Government, and the pas-
sing of t'le Rociprocal Trade Agreements Act, From this the great
principle went through -- the Lend-Lease system --the greatest ccn-
zeption any human mind has yet had with regard tc promoting good re-
lations between nations. Then to the Atlantic Charter, through the
United States' and United Kindom proposals for world trade--all cf
these roots being stemmed out into the Conference at London, the clean-
ing-up at New York - the adjustment at Geneva (when it appears that
things were made a little ton tight) and now here at Havana where there
.-has been some relaxation.
May I give credit to the Delegation and the Government of the
Jnited States of America. I believe it is their persistence that has
brought us as far as we have reached, Whilst, at this conference,
they rave maintained a strong tenacity for principles, they have never-
theless shown an appreciation of other countries' difficulties and a
willingness to compromise, There is much credit due to the Deputy-
Chairman and other members of the United S-ates Delegation,
This does not in any way to me, qualify the great attachment of
lew Zealand to the British Commonwealth and the United Kingdom--but
only extends the area and takes in the countries of North America and
gives them credit and responsibility for what is to come out of the
future.
Regarding the contribution of individual delegates at this Con-
ference--I would that I could name then, but this would be invidous
because one might forget one or other who is behind the scenes and who
ias done the job, There is, however, a small band of men - one or two
from each of the major countries - one or two from the smaller countries
who have done remarkable work here in Havana and previously at Geneva.
r do give credit, also - and we ail must - for the amazing achievement
of the Secretariat - especially the documentation section. (MORE) IT0/220
New Zealand
Now to come to the CHARTER:
It would be idle to say that there are no adjustments required in
the Charter and it is probable that when the period of five years has
passed, the provision for review will lead to many. amendments and ad-
justments. But despite the adjustments that may be requied there have
been great achievements.
If we will look at the Charter and the technical clauses coverini
international trade - freedom of transit - dumping - valuation - .marks
of origin - trade regulations - statistics and trade iniformation - pro-
vision for Customs Unions - the steps to amend or abolish restrictive
/the provision for intergovornmental commodity arrangements
business practices- and state trading - all are a considerable advance
on anything previously achieved, There has been agreement on two other
very important principles -- the general principle of reducing trade
barriers -- and the principle of general most-favoured-nation treat-
ment for all.
There are differences of opinion with regard to the use of
quantitative restrictions and subsidies and other practices pravided
for in the Charter. It is possible, however, that as the days pass
we will see these in a different light and it. may be that measures
which are today thought to be dangerous may have great potentialities
for good.
The present text tends to remove grave dissatisfaction and feel-
ings -of injustice and frustration. It was felt by some when the Con-
ferecnce commenced that industrialized countries were determined to
maintain their advantages - that was incorrect. The proposals when
adopted will in my opinion give the necessary. opportunities to .the un-
derdeveloted countries to utilise their resources and raise their liv-
ing standards to the ultimate advantage of all
(MORE) - 5 - ITO/220
Many of the raw materials of the under-developed countries will,
within the next decade or so, be processed in their own country if
the people have the will to do so.
The text is not perfect there is no such state as perfection-
what we must strive for is inflnite perfecting- uphill all the way,
The result will be dependent on persons and governments to live up
to the letter and spirit of the Chartcr.
Domination cannot be permanent.. Dictatorship is not fertile
-it cannot last. It is freedom that is desired but it cannot come
unless there is food to ent -clothes to wear and somewhere to live
in healthy conditions, That is the ri:.b,'.jvtul heritage for all and. I
believe the Charter will help to this end.
What we require is an ordered. material world -great steps forward
have been made towards this goal in Havana -an ordered material world
so that we can have personal and spiritual freedom, so long as that
freedom does not interfere with the freedom of others.
In conclusion, as I see it, the charter recognizes the position
of under-developed countries and provides ways and means for them
to become developed countries, enables them to to their place as
complete equals with the alleged developed countries of the world.
If the right steps are taken, productivity will be increased and
living standards will be lifted, It is worth while recognizing that
If parts of the world have not sufficient resourees inside their
sovereign areas, then we have either to adjust the boundaries of
these sovereign areas or make our surplus resources available to
them so that they might achieve a higher place in the world economy
which, I think, in the long, run is the goal that we are all after,
New Zealand has had -and may at hte present time - have some
misgiving and reservations, We express none, Cur Government and
Parlianment will consider the Chrter in its present text not only
from the point of view of our own people - or of the people of the
British Commonwealth to which we are proud to bclong- but in accord
with the purposes of the Charter.
(END OF PRESS RELEASE ITO/220) |
GATT Library | sr682kb9353 | Statement by the Cuban Delegation in connection with resolution 530 of the ministry of commerce | General Agreement on Tariffs and Trade, September 10, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 10/09/1948 | official documents | GATT/CP.2/W.14 and GATT/CP.2/W.1-W.14 CP.2/W.1/Rev.1,CP.2/W.9/Corr.1,W.9/Add.1 | https://exhibits.stanford.edu/gatt/catalog/sr682kb9353 | sr682kb9353_91870467.xml | GATT_148 | 1,413 | 8,583 | RESTRICTED
GENERAL AGREEMENT ON TARIFFS AND TRADE LIMITED C
CONTRACTING PARTIES
SECOND SESSION GATT/CP. 2/W. 14
10 September 1948
ORIGINAL: ENGLISH
STATEMENT BY THE CUBAN DELEGATION IN.CONNECTION
WITH RESOLUTION 530 OF THE MINISTRY OF COMMERCE
We have said at the very beginning of our discussions
-on this matter in the CONTRACTING PARTIES that the Cuban
Delegation was not afraid to discuss Resolution 530 in the
light of the provisions of GATT. We propose to do so now.
In the Statement presented by the U. S. Delegation
and circulated on September 9, a summary is given of the
main features of the Resolution in question.
As stated in No. 1 of that Statement a registry of
textile manufacturers and importers is created, and
importations of textiles may not be effected into Cuba
by any person who has not registered. We accept this brief
resumé of Resolution 530.
Cuba was confronted by a very difficult situation.
regarding textiles, very complicated indeed but the main
features of which were the accumulation in the Cuban market
of stock piles of textiles well over the Cuban requirements
for a year. Among other elements which have contributed
to this overflow of merchandise was the irregular combined.
action of exporters (jobbers) in the U. S. with Cuban
importers without municipal or state licences, without
mercantile domiciles, acting as free-lance importers, trading
under the benefits arising from false declarations and
contraband.
It is for this reason that Resolution 530 created the
Registry of Textile Importers so that only such persons as
are regularly engaged in the trade and with full responsibility
of their trade actions because of their established good-will,
will be entitled to effect textile imports into Cuba. With
this measure the Cuban Government proposed to eliminate from
the picture those importers who were more able to be the
illegal. ones.
In number 2 of the Statement of the U. S. Delegation,
it is expressed that textile manufacturers and importers are
required to file with the Government a complete and detailed
inventory of their stocks of textiles of all kinds as well
as a detailed information as to selling prices. We accept
this resume of the Resolution, also.
The Cuban Government was aware that changes in the
market situation would ensue as a result of the application
of Resolution 530, due to the fact that the free-lance
importers were going to be thrown out of their illegal business
and in order to check any profiteering of the traders, the
above-entioned requirement was established. This is
entirely a measure to give the Government a clear picture
of how to control, if necessary, internal price.
In No. 3 the U. S. Delegation statement makes a GATT/CP. 2/W. 14
page 2
summary of the requirements that are imposed on import
textiles. We accept this summary also.
If you look through it, you will readily realize that
it constitutes the only way out to give the Cuban Government
a full assurance that the assessment of duties on textile
imports were going to be effected under the proper
classification of the Cuban Tariff System.
In number 4 the U. S. Delegation statement refers to
the requirements to be complied with regarding consular
invoices. These, too, are necessary requirements that tend
to the same goal of achieving the proper tariff assessment
under the proper classification. I may addtthat if through
an error an importer is mixed up with the regulations, he
has to guarantee his rights the use of the usual procedures
available to taxpayers under our liberal administrative
procedure.
Under those four numbers the U.S. Delegation has made
a full summary of Resolution 530. It does not say in that
summary -- because Resolution 530 does not it either --
that textile imports are restricted with any quantitative
measures .
After giving the summary of Resolution 530 the
statement of the U. S. Delegation expresses that the
Resolution is in conflict with the provisions of Article XI
of the GATT, and I wonder why.
When the U. S. first presented this case to the Cuban
Government in July 26, 1948 they thought at the time that
Resolution 530 was in conflict with Article VIII. We were
prepared to present our case in the light of this Article
VIII and felt sure that we had a good case in our hands.
Probably the U. S. Delegation had the same feeling. Now
the U. S. Delegation is presenting the case not under
Article VIII, but as conflicting with Articie XI.
Article XI provides that "no prohibition or
restriction shall be imposed on imports or exports." No
prohibitions or restrictions are imposed under Resolution
530. It does not limit the amount of merchandise to be
imported into Cuba. It only established administrative
channels to carry imports so that the Government may have a
full assurance of the proper tariff assessment.
It seems that the U. S. Delegation agrees with us in
this respect also, because very safely the statement of the
U. S. says: at the beginning of the second sentence of
the last paragraph on page 1:
"...But whether or not it is in conflict with the
letter of these provisions" clearly indicating the weak
position of presenting Resolution 530 as a violation of
Article XI of GATT.
When import licenses are mentioned in paragraph 1 of
Article XI, they are referred to in connection with
prohibitions or restrictions. That is if the prohibitions
or restrictions are imposed through a system of import GATT/CP. 2/W.14
page 3
licenses, but nothing in the General Agreement nor in the
Havana Charter prohibits any Government from establishing
a system of licenses that in no way prohibit or restrict
the importation of merchandise into a country.
It is true that since Resolution 530 was put into
effect in July 10 of this year, imports of textiles into
Cuba have been reduced, and in this case we also agree with
the statement of the U. S. Delegation.
".. this being due to the inability or unwillingness
of importers to comply with the requirements
demanded for the issuance of an import licence."
and I may add that in this case we take the term "inability"
as meaning lack of understanding of the measure and not as a
lack of proper means to deal with such requirements.
After Resolution 530 was issued in July 10, certain
U. S. exporters started a terrific newspaper campaign
against it even threatening the Cuban Government to ask
for retaliating measures against Cuban sugar, thus giving the
impression to Cuban importers that, the Resoluition would be
short-lived.
Certain Cuban importers did not comply with the
requirements of the Resolution and so a decrease in the
amount of imports was evident, because they were simply
sabotaging a measure issued by the Minister of Commerce of
the Government of Cuba, in the exercise of his full
authority as a member of the Executive branch of an
independent country.
The statement of the U. S. Delegation very clearly
states that Resolution 530 is to be maintained until the
end of this year, i.e., less than four months from now.
It is a transitory measure and one that in the end will
benefit not only the Cuban manufacturer but also the
honest trader in the field. No harm will come to those
manufacturer; of other countries who have permanent agents
in Cuba and who traditionally have been doing business '
complying with all internal laws of our Republic.
The CONTRACTING PARTIES are in no position to prejudge
the effect of a measure that has been in force exactly
two months. Any new measure-established by any Government
in relation to anything creates at the very beginning certain
difficulties to the people concerned. This is the case of
Resolution 530, especially if , as stated by the U. S.
Delegation, it has been an unwillingness of the Cuban importers
to comply with the requirements set forth in that Resolution.
In the light of these considerations and facts, we ask
the CONTBACTING PARTIES:
First. To find that Resolution 530 in no way is in
conflict or nullifies the provisions of the General Agreement
on Tariffs and Trade. GATT/CP . 2/W. 14
page 4
Second. To recommend to the Government of the U. S.
that the claim against the Cuban Government on account of
such Resolution be withdrawn.
Third. That direct negotiations between the
two parties concerned should be resumed as soon as
possible with a view to finding a mutually acceptable
understanding.
Geneva, September 10, 1948 |
GATT Library | nw527jn2949 | Statement by the Cuban Delegaton on Inter-Governemental Commodity Agreements | United Nations Conference on Trade and Employment, January 8, 1948 | Fifth Committee: Inter-Governmental Commodity Agreements | 08/01/1948 | official documents | E/CONF.2/C.5/13 and E/CONF. 2/C. 5/1-19 C. 5/A/1-2 | https://exhibits.stanford.edu/gatt/catalog/nw527jn2949 | nw527jn2949_90200063.xml | GATT_148 | 1,156 | 7,312 | United Nations Nations Unies UNRESTRICTED
CONFERNCE CONFERENCE E/CONF.2/C.5/13
ON DU 8 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
FIFTH COMMITTEE: INTER-GOVERNMENTAL COMMODITY AGREEMENTS
STATEMENT BY THE CUBAN DELEGATON
ON INTER-GOVERNEMENTAL COMMODITY AGREEMENTS
The Cuban Delegation maintains that Chapter VI of the Charter, dealing
with inter-governmental commodity agreements, should be based fundamentally
on the following two principles:
First, freedom of the parties interested in a certain commodity
to solve the problems relating thereto;
Second, defence of the producer.
These two principles have guided the conduct of the Cuban Delegation
throughout the setting up of this Chapter. since its early stages in London,
New York and Geneva, and up to the final phases in Habana. We admit that
in regard to the first principle the evolution of the Chapter since the
original proposal has been satisfactory and that at this moment the parties
interested in a particular commodity, that is, its producers and consumers,
have a practical procedure through which to study and. solve their problems,
which satisfies our just expectations, and which at the same tine keeps up
the necessary control through the Organization in order that the results
may be consistent with the objectives of the whole Charter.
It is about the second principle that the Cuban Delegation is still
greatly concerned as it is our honest belief that an error in perspective
is being committed in the way the whole Chapter has been drawn. Our thesis
that this Chapter should be in all respects a defence of the producers
interest is based on the fact that inter-governmental commodity agreements
come into effect when there is or is expected to be a burdensome surplus
of a particular commodity or widespread unemployment as a consequence of
said surplus. That is, the Chapter is desired to provide help in a
situation in which producers are going to be in distress and here a
consumers' market exist. Therefore, at that time consumer will have all
the advantage and it is the producers who will need all the help that the
Organization can give them to solve the problem then encountered.
It is true that from past experience consumer should know that if they
strike too hard a bargain with their producers in distress, in the end they
too are going to suffer the consequences of the disaster that may overcome
/producers; E/CONF.2/C.5/13
Page 2
producers, but the temptation to solve an immediate problem by getting
the commodity as cheap as possible may bo too strong to be resisted by
consumers; and if this letter result were achieved by consumers, both
surplus and unemployment in the producing countries would become endemic
and the aims of the whole Chapter to correct the situation would fail.
It is a great error in perspective, in our opinion, to try to obtain
in the drafting of the Chapter a balance of forces between producers and
consumers, because such a balance would be broken in the consumers favour
in any situation requiring the application of the measures envisaged in
Chapter VI. Equality in voting, vagueness in the determination of the
level of prices to be obtained, indications that the commodity should be
acquired economically, are misleading guides from which commodity
agreements may suffer in the future. What this Chapter wants is direct
protection to the producer, who is the one who would be in trouble, in a
very weak position and at the consumers mercy.
Unfortunately Chapter VI of the Charter has been drawn in 1947, when
consumers have only recently suffered commodity shortages and unwonted
higher prices. If this Chapter had been drawn in 1933 it would be
entirely different: It would be a straightforward defence of producers
--which is, for the reasons just given, the right attitude. That is why
the Cuban Delegation concedes so much importance to the statement that
the price must be remunerative to the producer. If it were not remunerative,
the problem could not be solved and unemployment and surpluses would increase
and spread.
We have not lost sight of the consumers' aide and admit that if
commodity agreements were to provide a remunerative price to every producer,
no matter how inefficient, there would be no inter-governmental commodity
agreement ever signed; but, on the other hand, if even an efficient producer
does not get a remunerative price, it is no use to have commodity agreements
because they would not help but instead aggravate the situation.
We have been consistently arguing that inasmuch as the Charter is
envisaged to produce the maintenance of fair labour standards, the expression
"efficient producer" cannot be ccnstrued as "cheap producer with low labour
standards." Then a remunerative price is the price that an efficient
producer who maintains fair labour standards needs in order to produce
remuneratively and, if this is so, said price should also satisfy less
efficient producers who compensate their shortcoming by not having to meet
the high wages of the more efficient producers.
/It is a great E/CONF.2/C.5/13
Page 3
It is a great error to believe that when prices are to be discussed
in a future commodity agreement, producer will have to choose from among
several high prices; the situation will be just the opposite. Producers
will be offered very low prices. If in a situation of producers' distross,
they are paid pricos that would cover at last the cost of efficient
producers and a reasonable remuneration under the circumstances, the
situation would improve little by little, whereas if even efficient
producers' prices are not met, producers could complain to the Organization
that their prolonged distress is due to prices not even moeting efficient
producers' costs. On the other hand, the moaning of the term "fair to
producors and consumers" is going to be fixed in practive when the situation
is bad for producers, and therefore no consumer would believe that it is
"fair" to pay higher prices than he can get under the law of supply and
demand when supply is excessive and every advantage is held by the consumer.
Consequently we believe that a "remunerative price for efficient
producers" is the most that in a situation of excessive production produce
can get from farsighted consumers, and the the Chapter should contain this
Indication to show to consumers that if less than this is achieved the
problem is not going to be solved, but, instead, aggravated or porpotuated.
It is for all these reasons that the Cuban Delegation has been
throughtout the previous stages in London, New York and Geneva, a strong
supporter of this expression. if this expression is included, we believe
that in all the wording of the Chapter a certain balance is kept up between
the interests of consumers and of producers, notwithstanding how dangerous
we believe this balance to be; if it is deleted, the balance of the Chapter
is entirely In favour of consumers and will give them extra help that they
would hardly need when facing producers in distress. |
GATT Library | bf078py6123 | Statement by the Delegate for Belgium at Fourth Meeting of Sub-Committee : Held on Monday, 12 January 1948, at 6.00 p.m | United Nations Conference on Trade and Employment, January 13, 1948 | Third Committee: Commercial Policy and Sub-Committee F (Articles 21, 23 and 24) | 13/01/1948 | official documents | E/CONF.2/C.3/F/W.11 and E/CONF.2/C.3/F/W.1-31/REV.2 | https://exhibits.stanford.edu/gatt/catalog/bf078py6123 | bf078py6123_90190572.xml | GATT_148 | 3,366 | 20,900 | RESTRICTED
United Nations Nations Unies E/CONF. 2/C.3/F/
W. 11
NFEREN CONDUWCE 13 January 1948
CONFERENCELI ENGSH
ON DU INA FRNCHE ORIGL: F
ThDE AND EMPOLOYMCEIALENT O COM ET DE L'EMPLI
THIRD COMMITTEE: COBICIATLPOLICY
ST-COMMITTE F ND(ARTICLES 21, 23 A4T4)
STATEMENT BY THE DELEGATE FOR BELGIUM
T FOURS MERITT3TGOF SUB-COMM EE
Held on Monday, 12 January 1948, at 6.00 p.m.
The following is the text of the sUpTEeech of Mr. SENS (Belgium):
The Belgian delegation, like the Belgian Government, has always
been guarded in its attitude to Articles 20 - 24. These are the only
Articles in connection with which my Government has made express
rescqtions. My delegation has stated the reassons for thia ttitude
several times However, there is no harm in redefining them. Belgium
is essentially an exporting country. She exports on an average a third
of her production, and in certain branches more than ninety per cent.
Her prosperity, her very existence are essentially dependent on her
foreign markets This explains the great value she attaches to the
security of her economic relations abroad. ills Of all the from which
s' might suffer, protection is the worst And the worst form of
protection she has to fear is the system of restrictiokns. I have nown
the golden age when no measures of this kind existed. I have known the
time when, such measures being in existence, the countries concerned
decided to eliminate them by an international agreement. I have seen
them reborn. I cannot help feeling suspicious about them. Neither can
I help being astonished that several countries intend to make them an
essential factor in their economic policy. In my view, nothing can
do more to disorganize international trade than measures of this kind.
All the work done in theperiod between the two wars by international
organizations, among them the Economic Committee of the League of
Nations, is unanimous on this point. By their very nature, restrictions
reduce the level of trade. By the more or less arbitrary direction they
impose on the flow of trade, they hinder freedom of exchange. They
prevent - ed this is their principal defect - adjustments of trade
balances and are thus a direct blow at multilateralism, which is the
basisp of world rosperity
I confess that my reactions are those of a community which lives
/essentially E/CONF. 2/C .3A/E/W. 11
Page 2
essentially by exporting, and that the Charter is not created only for
this type of country. The Charter should have meaning and value for
all countries, whatever their stage of economic development, their
structure of their type of economic system. It must take into account
the considerable difficulties that have to be faced by war-damaged
countries in their work of reconstruction. In these circumstances
there can be no question of any group of countries upholding arguments
that satisfy their interests alone. They must compromise with the
interests of others Belgium, in particular, could not adopt too
radical an attitude regarding restrictions. She was the less able to
do this because, although she has acted with moderation in this matter
and has freed a large part of her trade, she has herself maintained a
system of restrictions.
Restrictions are an unavoidable evil: what can, and must be done
in the common interest is to seek certain rules that limit their harmful
effect and confine them to their purpose. Now, in the present text of
the Charter these rules are neither definite nor complete. What must
these rules be? What must be the conditions governing a system of
restrictions which will not be incompatible with the general purposes of
the Charter? In my view, there are three:
(A) First of all, we must limit the cases in which there may be
recourse to restrictions. The Charter does this. Among other
cases it permits the use of such measures in the case of balance
of payments difficulties. This is a normal attitude. No country-.
nca refrain from taking the necessary measures when its balance of
payments is threatened. Its danger is too great. It must seav
its currency, which is the basis of prosperity. But the Charter
as it stands includes certain passages which might be invoked to
justify new restrictions. This is a very grave danger. The
Belgian delegation considered that the text of the Articles
concerning restrictions should be revised, so as to leave as few
loopholes as possible.
(B) Whenever restrictions are authorized, they must onlby e used
when all other means have failed. The application of restrictnsio
is often an easy way out. But not only that; it can be a
dangerous expedient.
Recourse to restrictions is an individual reaction. It is
open to serious doubt whether, in most questions, individual
reactions are the best. The purpose of the Charter is to
substitute collective action for individual action in every sphere.
h/Tere ins o E/CONF.2/C.3/F/W.11
Page 3
There is no reason why this principle should not also be applied
to balance of payments difficulties. It is rather odd that while
various chapters of the Charter appeal for co-operation and
concerted action, little or no such appeal is made regarding
quantitative restrictions.
(C) Restrictions must be applied in accordance with clear and
equitable rules and must injure foreign countries as little as
possible. Here we are treading on delicate ground. Where customs
duties are concerned, we know what equitable treatment means. It
merges with the provisions on most-favoured-nation treatment. In
the case of restrictions, the question is much more difficult.
In this field, the concepts of discrimination and non-discrimination
are rather vague. They should be defined so that no abuse can
arise. Moreover, in certain cases discriminating is unavoidable.
This brief statement makes it clear that the Geneva text does not
wholly satisfy the three conditions that I consider essential for the
establishment of a system of restrictions.
The Geneva text is a group of ill-assorted provisions, without
musch logical connection. No doubt this defect is common to any work
of compromise. But a work of compromise has the advantage of bringing
about agreement and of being viable. That is why for a long time the
Belgian delegation, though maintaining its reservations, considered it
difficult to suggest any alterations. But discussion showed that many
points were once more in question and that improvements could be
contemplated. Our first idea was to draft a completely new text for
the articles dealing with restrictions. A text of this kind was drawn
up. It caused rather a sensation. It had the advantage of providing
a coherent system covering these questions, so long the subject of
controversy. On the other hand, it had the great disadvantage of
destroying the work of compromise achieved at London and Geneva, and
of again calling in question texts to which certain administrations had
agreed, and to which they would not have been able to admit any
alteration. In these circumstances, we fell back on a much more modest
undertaking and confined ourselves to submitting a few amendments that
alter as little as possible a text which already represents a
considerable amount of effort.
I should now like to explain each of our amendments in detail:
(I) I will begin with Amendment A, which proposes that a new paragraph
be inserted at the beginning of Article 21. The Belgian delegation
/considers the E/CONF.2/C.3/F/W.11
Page 4
considers the insertion of this paragraph essential. The paragraph
begins by establishing the principle that matters connected with the
balance of payments of each country are, above all, within its own
competence. But the balance of payments of a country ? is only the
reverse of the balance of payments of other countries, and therefore
anything affecting country A's balance of payments also concerns all
the other countries. For this reason it is the duty of the Organization
to promote or facilitate concerted action between Members, in order
to give assistance, in the commercial field, to the country suffering
from a disequilibrium and to prevent its difficulties from extending
to other countries.
We deem this paragraph essential because it defines the spirit of
those Articles of the Charter that are concerned with the balance of
payments. Among other things, it helps to show the Organization in
its proper role. The Organization must not appear primarily as a
policeman responsible for prevention. It must be above all a body
designed to help with its advice the country which is in difficulties
and to obtain, on its behalf, the combined aid of the other Members of
the Organization. If, after reading the new paragraph proposed by
the Belgian delegation, you look once more at the limitations imposed
on the individual action of Members by the rest of Article 21, I have
no doubt that these limitations will appear in a different light.
(II) The Belgian delegation's second proposal is merely an alteration
in the numbering of the paragraphs of Article 21, made necessary by
the first amendment.
(III) We also consider the third alteration essential. Paragraph 3 (b)
(i), as it stands, excludes from the full effect of common action the
restrictions imposed by a country as a result of the adoption of
certain domestic policies of full employment, reconstruction, and
development or increase of productivity. We believe that the present
wording of this paragraph is dangerous. Although it was introduced
with undoubtedly praiseworthy motives by countries which certainly do
not intend to abuse it, it is the type of clause that opens the door
to every kind of abuse and repudiation of the principles contained in
the Charter. It is possible that one day, sooner or later, some
Governments may consciously or unconsciously make use of paragraph 3
(b) (i) as it now stands to pursue a policy of individual advantage
secure from all sanctions, while still benefiting from the advantages
of membership of the Organization. It is difficult, if not impossible,
to delete this passage; but it is possible to limit the abuses to
/which it E/CONF.2/C.3/F/W. 11
Page 5
which it may give rise. This in the purpose of the two additions
proposed by the Belgian delegation:
(a) Under the first addition, a State could not reject the
Organization's recommendations without consideration on the
grounds that they affected a domestic policy of the kind described
in paragraph 3 (b). We wish it to be recognized that the
Organization has a right, when considering a particular situation,
not to be obliged to confine itself to those aspects of the
situation which do not affect such domestic policies. But this
must be interpreted in the light of the right, which is specifically
recognized in our draft, of each Member freely to determine its
own policy. It must also be interpreted in the light of the new
paragraph 1 of Article 21 that we are proposing. The Organization
acts in the interests of Members. Its primary concern must be for
countries suffering from disequilibrium in their balance of
payments; thus in view of paragraph 1, the Organization must
refrain from proposing to any country measures which would run
counter to its interests. But if the Organization is to play a
genuinely international and useful part, why not expressly
authorize it to intervene in a friendly way in its dual capacity
of adviser and co-ordinator?
(b) The second addition concerns slumps. We are all anxious to
make every effort to avoid, as far as possible, the recurrence of
the crises from which we have suffered so much. Here, the
Organization is called upon to play an essential part. But it
would be quite powerless to gain acceptance for its friendly advice
or to institute a programme of world co-operation to avoid an
economic crisis, if any Member could simply take refuge behind
the "taboo" of domestic policies. Is it not far wiser to
recognize that where there is an imminent threat of a serious and
widespread slump, the Organization may have the right and even
the duty to call the attention of Members to all preventive measures
that can be taken to avert the crisis; and that Members must give
serious consideration to the possibility of adopting the measures
advocated by the Organization, even if they necessarily involve
temporary changes in domestic policy? Our proposed paragraph 3 (b)
1 B states this, while recognizing that it rests with each Member
to adopt, or not to adopt, the Organization's recommendation
regarding adjustment of its domestic policy. .
/Failing more E/CONF.2/C. 3/F/W.11
Page 6
Failing more radical alterations which the Belgian delegation
would have liked to have seen made in Article 21, paragraph 3 (b) (i),
the proposed changes impose some restraint on the excessive freedom of
action accorded to Members by the Geneva text in contradiction of the
ideal of co-operation on which the Charter should be based.
I should also like to repeat that we are not afraid of the
intervention of the Organization. Its actions, as a whole, will either
be moderate and just, bearing the halImark of common sense and respecting
the interests of each Member, in which case the Organization will be a
most valuable asset to the prosperity of the world and consequently of
every State; or else, owing to the human weaknesses of those who compose
the Organization, its actions will be partial and unreasonable and it
will soon collapse under the weight of its own defects.
There would be no point in speculating as to whether the _
Organization will be good or bad. It is an unknown factor. Faced with
that unknown factorn, we are makig a declaration of faith and hope.
We have faith in its qualities of heart and head, and we hope that it
will bring benefits to each of us that will help to ensure the
prosperity of all.
(IV) The fourth alterdabtion propose y the delegation of Belgium is
self-explanatory. We wiashed to reafirm the principle of international
solidarity and draw the attention of each Member to the possible
repercussions of its individual actions on the essential interests of
other Members.
(V) Lastlty, the delegaion of Belgiumem wishes to and Art.icle 23 1 (b)
There is no doubt that we should aim at re-establishing trade on a
multilateral basis, that is, under a system in which international
commercial transactions are made on the basis of world prices and are
paid for in convertible currency.
But that objective can only be attained by dsegrees. We mut also
bear in mind the possibility of an economic crisis occurring even after
postwar difficulties have been overcome. I shall not waste this
Committee's time by speaking at length on the phenomena characteristic
of a period of economic csrisis, such a inconvertible currencies,
balance of payments difficulties, pricea differences nd the necessity
of obtaining or disposing of certain goods through bilateral trade.
The Belgian proposal on this Article takes such phenomena into account
and, at the same time, tries to confine them within reasonable bounds
and to keep in view the ultimate goal of facilitating a return to
multilateral trade.
/The wording of Page 7
The wording of the Belgian amendment, by avoiding the repetition
of ideas already contained in Article 23 1 (a), considerably simplifies
the beginning of Article 23 1 (b).
I must emphasize the fact that the Belgian proposal is applicable
only when there is a substantial and widespread disequilibrium. If there
is no substantial and widespread disequilibrium; countries have no
right to resort to measures which are incompatible with the rule of
non-discrimination contained in Article 22.
Similarly, the Belegian proposal is applicable only when a departure
from Article 22 has the effect of increasing the volume of international
trade.
In the Geneva text these two conditions appear in Article 23 1 (a)
and are included in Article 23 1 (b) by the word "accordingly".
We have repeated the third proviso of the Geneva text, that
contained in Article 23 1 (b) (i), in a simplified form; discriminatory
transactions must be made at prices not substantially different from
the prices prevailing in other markets for comparable goods. I do not
think we should attempt to define more closely the expressions
"substantially different" from the "price prevailing in other markets"
for "comparable goods." It will be for the Organization to decide in
each particular case, in the light of all the facts, whether these
conditions are fulfilled or not. Naturally, the tendency of the
Organization will be to avoid the formation of enclaves in world trade
where prices would be definitely fixed at levels different from world
prices, which would make subsequent return to multilateral free trade
impossible. But this tendency will be restrained by the need to take
account of the facts of each case and, as the delegate of Norway has
pointed out, the need to avoid the sudden dislocation of trade systems
which are now affording some assistance to countries in difficult
circumstances. ''
Our proposed Arti3cle 2 1 (b) (ii) shows that discriminatory
transactions may be made either by utilizing credits that could not
otherwisesed, or under b be ued, orer barter agreements.
Buwhatever the category to which sucrychdsdirminatoa urchases
belong it is essential in our opinion that a country should not adopt
a policy that might have the efffect o diverting goods from sound,
normal trade, either with countn ries paying iconrtible currencies
orc unwith otories t which it is indebted. We thirnk thart the eduction
ofs blocked debt and theco increase of nvertible currency resources
/constitute an
. . ,. .. , E/CONF.2/C.3/F/W. 11
Page 8
constitute an important stage in a country's return to a system of
multilateral trade.
However, as it has been vividly expressed by the delegate of
France, there must be no discrimination in favour of the hard currency
countries. This is why the Belgian proposal limits the obligation to
maintain the flow of goods towards countries with convertible currencies
or towards countries with accumulated purchasing power, to the volume
of goods that would have gone to those countries in a normal period.
Let us suppose that country A has 100,000 tons of phosphates annually
available for export and that in a normal period it exported 20,000
tons to country B, which has convertible currency, 20,000 tons to
country C, which holds sizeable reserves of country A's currency, and
60,000 tons to countries E, F and G, with which country A has a
favourable balance of payments. Under the Belgian delegation's
proposal, if countries B and C wish to purchase the whole of the
100,000 tons of phosphates, country A may of course comply with their
request, but will not be obliged to do so. But it will be obliged to
sell at least 20,000 tons to country B and 20,000 tons to country C.
As regards the remaining 60,000 tons, it may dispose of them as it
pleases and may, if it so desires, assign these 60,000 tons to
country Z in return for other goods imported on a discriminatory basis.
I should like now, Mr. Chairman, briefly to sum up the ideas
underlying the amendments contained in the document before you and
which I have had the honour of submitting to you in the statment I have
just made.
The delegation of Belgium has no desire to deny the value of
quantitative Restrictions in correcting maladjustments in the balance
of payments. We do not deny the advantages of discrimination as regards
imports in a period of disequilibrium. We recognize the ideal which
underlies the pursuit of policies of full employment and economic
development. Nothing in the document I have submitted to you tends to
reduce a Government's right freely to determine its domestic policies.
Nothing in our proposals allows the Organization to impose its will to
a greater extent than is already provided for in the Articles of the
Charter, as it emerged from the discussion at Geneva.
We have paid more regard than we wished to the reluctance of many
countries to be bound too closely by the Charter or to have rules of
conduct laid down for them by the Organization. But in the Articles
relating to the balance of payments, we have sought to give the
Organization the function of assisting, advising and co-ordinating, thus
promoting the purposes of the Charter and, with them, world prosperity. |
GATT Library | zm851xh4548 | Statement by the Delegate Of France, 8 January 1948 | United Nations Conference on Trade and Employment, January 9, 1948 | Third Committee: Commercial Policy and Sub-Committee F (Articles 21, 23 and 24) | 09/01/1948 | official documents | E/CONF.2/C.3/F/W.7 and E/CONF.2/C.3/F/W.1-31/REV.2 | https://exhibits.stanford.edu/gatt/catalog/zm851xh4548 | zm851xh4548_90190568.xml | GATT_148 | 2,093 | 12,840 | United Nations Nations Unies
E/CONF. 2/C .3/F/W. 7
CONFERECE CONFERENCE 9 January 1948
ON DU ENGLISH
TRADE AND EMPLOYMENT COMMRCE ET DE L'EMPLOI
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE F (ARTICLES 21, 23 and 24)
STATEMENT BY THE DELEGATE OF FRANCE, 8 JANUARY 1948
At a previous meeting of' Committee IIIb, the delegate of the United States
gave an interpretation of Article 23 - 1 (b) (ii) which seem to be briefly as
follows: Any country having exportable products mus give priority to their
sale for convertible currencies, and may only enter into the discriminatory
arrangements provided f or by Article 23 if it is lef t with a surplus which
cannot be sold for convertible currency. In other words any country having
gold or convertible foreigna exchange would have priority in obtaining the,*
exportable goods of another country.
The French delegation finds this interpretation unacceptable for political,'
acoCknomic and moral reasons.
I. Political reasons
Such an interpretation would in fact lead countries having a non-
convertible currency to place all their f'oreign trade under the control of
countries having large reserves of convertible currency or gold. The
consequences of such a situation can be illustrated by the following examples:
A. If a country A has a practically unlimited supply of the only
currency considered as being convertible and if a country B has very
substantial gold reserves.
If the relations between countries A and B are not very cordial
and they fear that their relations may subsequently deteriorate even
further, they may try to build up stocks -which are usually described
as strategic - and will contend with one another in all markets of the
world for the commodities and raw materials they consider essential.
Now, countries having a non-convertible currency, which we may call
countries C, D, :E and. F, need these commodities. Country C needs the
products of country D, and country D those of country F, etc. They
will only be able to obtain them against payment in gold or convertible
currency, of which they have only a limited amount, and provided also
that they offer a more favouralpe price than countries A and B. This
actually means that they will not be able to obtain these products -
unless they negotiate directly with countries A and B - which, under
/the present hypothesis, E/CONF.2/C .3/F/W.7
Page 2
the present hypothesis, leads to appreciable alienation of their
political independence.
B. The following example may also be quoted: If country F is
prepared to sell essential commodities to country G, and if country B,
for example, does not wish country G to have such commodities, it
could approach country F as a buyer of all available commodities of
this kind, offering to pay for them in gold. And country F could
not refuse.
In other words, countries A and. B would be able at any time to
share between them the monopoly of purchasing and redistributing all
the exportable products of countries with a non-convertible urrency;
this clause would thus simultaneously afford them the opportunity
to make unjustified profits and the opportunity to acquire a powerful
instrument for political donation.
II. Economic reasons
The interpretation of Article 23 - 1 (b) (ii) given by the delegate of
the United States also appears unacceptable for economic reasons. What is
the actual situation in the post-war world? We find a large country,
powerful and rich, whose efforts and sacrifices ensured victory and whose
generosity and understanding have so far prevented the world from sinking.
into chaos, On the other hand, we find many countries which have been
partly or almost totally destroyed and ruined by the war and which, thanks
to the support of the United States, have undertaken their. reconstruction
and the rehabilitation of their economy. Now, it has been recognized that,
although the aid of the United States, for example, is necessary for the
reconstruction of, these countries or the recovery of their stability, such -
aid cannot be sufficient in itself. If the countries affected. by the war
could not or would not help one another, the aid they would have to seek
from the United States Government would be so extensive as to exceed all
the potentialities of even so powerful and rich a country as the
United States.
That view has been put forward not by the countries affected by the
war but by the Government of the United States itself. It formed the ..subject
of Mr. Marshall's famous speech and was the subject studied by the
Conference of sixteen European nations that met at Paris this summer.
How can the countries affected by the war. help one another? There are
many exampes, but I will give only a few: Country F, for example, has
timber which countries G, B, I. and J urgently need. for their reconstruction.
Country A, whose currency is convertible, wishes to buy this timber.
Country F may believe that if it sells this timber to country A, it will
/be used E/CONF.2/C .3/F/.7
Page 3
be used to make pulp, which will permit the addition of two more pages to
the press of country A. If it sells the timber to countries G, H, I and J,
it will be used to build houses that will shelter thousands of homeless
families and will help to restore social stability and hence also the
economic stability of Europe. In these circumstances country F might:-prefer
to sell its timber to countries C., H, I and J, especially if it could also
obtain from them in return goods which it needs as much as gold or
convertible currency.
To take a further example: Country G has an iron and steel industry,
country H has not, and needs steel. in order to meet its steel requirements,
it contemplates establishing an iron and steel industry; it will accordingly
invest capital, raw materials and labour in an enterprise which in any event
will only be profitable much later and will not contribute to its immediate
recovery or what of its neighbour. furthermore , it will have created an
artificial industry which, when equilibrium has been restored, will only be
able to exist under protection, and because it competes with the industry
of country G, will also oblige the latter to protect itself.
It is evident that it would be more profitable for such a country and
its neighbours to specialize in the intensive production of goods that their
existing resources enable them to produce; but they can only do so if, for
instance, country G undertakes, at least throughout the period of
reconstruction, to supply country H with the steel it requires. But
country G could not give such an undertaking if we agree to adopt the
Charter inclusive of Article 23-l(b)(ii); for country A, whose currency
is convertible, or country B, which has large gold reserves, could at any
time inform country G that they need its steel and that they will buy it.
The latter could not refuse and could no longer supply steel to country H.
Thus, it appears that in the present circumstances there is a danger that
non-discrimination may lead to autarchy, whereas some freedom to discriminate
would permit the different countries to specialize in those branches of
production for which they are best fitted, and promote the conditions
necessary for the restoration of multilateral and balanced trade.
III. Moral Reasons
The interpretation given to Article 23 - 1 (b) (ii) by the delegate of
the United States also appears to us to be unacceptable for moral reasons.
Under present circumstances, a country may desire to help a neighbouring
country which is suffering from a temporary shortage of certain commodities.
Between nations as between men, there are good-neighbourly relations and
a certain solidarity in their common misfortune. Such feelings are in no
way reprehensible. Thus, a country might refuse to sell for convertible
currency a product which a neighbouring country urgently needs, and which
/it undertakes E/CONF.2/C.3/F/W.7
Page 4
it undertakes to supply to the latter under other financial and economic
arrangements. If Article 23 1 (b) (ii) forbids it to supply such products
to the needy neighbouring country, the latter will only be able to trust to
the goodwill of the countries with large resources in gold or convertible
currency. It does not appear to us morally right to give the rich countries
a monopoly of goodwill and of the spirit of charity and solidarity. As
regards these moral considerations, it seems to us that the poor countries
might have the same rights as those that are more favoured.
In conclusion, the French delegation recalls that France has signed
the General Agreement on Tariffs and that this agreement includes a provision
similar to Article 23 - 1 (b) (ii). Our Government signed thia agreement
because it did not interpret this provision in the same way as the
Government of the United States. We have always considered that the
particularly careful wording of this text had. a general meaning and not a
precise and mathematical meaning. We certainly think it normal and necessary
to invite countries to make every effort to establish equilibrium in their
balance of payments in convertible currency and to avoid the systematic
establishment of disequilibrium by bilateral agreements. On the other band,
we cannot admit that absolute priority should be granted in all
circumstances to sales effected in convertible currency.
Apart from the political, economic and moral argument against this
interpretation, it must be noted that mere logic itself condemns it. Indeed,
this provision, if it is so interpreted, constitutes a rule of compulsory
discrimination in favour of convertible currencies and is no longer a simple
exception to the rule of non-discrimination. Article 23 would thus be drafted
in such a way as to permit, in very rare cases and subject to many -
reservations, discrimination in favour of soft currencies; but on the other
hand it would strongly establish the principle of compulsory discrimination
in favour of convertible currencies. This is certainly contrary to the
spirit of Article 23, and we cannot see why, if discrimination is dangerous
and bad in one case, it should necessarily be good in the other.
What is, in fact, bad and dangerous is not discrimination or non-
discrimination, but the possible abuse of one or the other.- Abuse is not
an idea that can be defined in writing; its definition must be left to
the Judgment of the Organization.
These are the considerations on which is based the amendment submitted
today by the French delegation. In this amendment we have simply repeated
the Geneva text to which we have added a few words and which we have also
considerably shortened. We have added the words: "In normal circumstances"
in order to take account of the theory I referred to at the beginning of this
statement, according to which a country might, for political or any other
/reasons, E/CONF.2/C .3/F/W.7
Page 5
reasons, wish to acquire a monopoly of the purchase and distribution of
certain products. It is for the same reason that we have deleted the end
of the Geneva paragraph since the danger we have pointed out lies
principally in that sentence,
We have also deleted in the middle of the paragraph the words: "to
other members not party to the arrangement." Indeed, it seems to me that
the main justification for paragraph (ii) of Article 23-1(b) should be
to prevent a State from aggravating the deficit in its balance of payments
in gold or in convertible currency through bilateral agreements.
In these circumstances, we do not see why account should not be taken
of receipts in convertible foreign exchange or in gold received from exports
to countries that are not party to these bilateral agreements. In fact most
of the agreements provide for exchanges of products between two countries
but they also provide that the balance of such exchanges shall be
periodically established, for instance, every three months, every six months,
or every year and that at the and of the period in question the balance in
favour of one ot the countries shall be settled by the other in gold or in
convertible currency. We do not see why receipts in gold or in convertible
currency received from these periodical settlements should not be taken
into account when deciding whether the bilateral agreements contribute or
do not contribute to the aggravation of disequilibrium in the balance of
payments in gold or convertible currency.
This is the purpose of the French amendment to which the delegation of
France attaches very great importance. |
GATT Library | hv011mp2241 | Statement by the Delegation of Iraq | United Nations Conference on Trade and Employment, March 5, 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) | 05/03/1948 | official documents | E/CONF.2/C.23/A/15, E/CONF.2/C.23/A/1-15, and C.26/A/1-24 | https://exhibits.stanford.edu/gatt/catalog/hv011mp2241 | hv011mp2241_90180407.xml | GATT_148 | 442 | 2,903 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.2&3/A/15
ON DU 5 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
': : ' -IG , .GLIS
SEC ANi M o
E ON ART15LE, AND 4oW:ktMAND
STATEMNTE YB HTED LEEGATION OF RAIQ
In the proceedings for the termination of the Mandate and the admission
f oIraqt o the League ofN aitons in 1932, the Government of Iraq gave
several undertakings, one of which was the mst-ofavoured-nation clause, in
its trade relations with other Members of the League. However, in view of
previous international recogniation and close historicala nd cultural
relations between territories which formed part of the Ottoman Empire, the
League of Nations recognized to Iraq the right to make an exception to the
most-favoure-dnation treatment in respect of any territory which formed
in 1914 an integral part of the Ottoman Empire in Asia. The text of the
undertaking regarding the most-favoured-nation clause, together with the
exceeption contained in the Prceedings of the League of Nations is as
follows:
1. Subject to reciprocity Iraq undertakes to grant to members of the
League osm-tfavoured-nation treatment for a period of ten years from the
date of its admission to meofmbership to the League Nations.
Nevertheless, should measures taken by any member of the League of
Nations, whether such measures are in force on the above mentioned rate or
are taken during the period contemplated in the preceding paragraph, be of
such a nature as to disturb to the detimnrnt of Iraq the balance of trade
between Iraq and the member of the League of Nations in question, by
eriousle affecting the chief exports of Iraq, the latter, in view of its
special situation, reserves to itself the right to request the member of
the League of Nationoncerned timmediately fo open negotiations for the
purpose of restoring the balance
Should and agreement not be reached by negotiation within three months
from its request, Iraq declares that it will consider itself as freed,
vis-a-vis of the member of the League in question, from the obligation laid
down in the first sub-paragraph above.
/2. The undertaking E/CONF.2/C. 2&3/A/15 Page 2
.1
The unde2rtaking ucontained in paragraph 1 above shall not apply to
any advantages hwicha re, or mayi n the future be, acocrded by Irqa to
any adjaecnt countryi n order to facilitate frontier traffci or to thsoe
esulting from a >costoOs union concluhedbby Iraq. kor shall thb undertakin1
apply to any special advantages in customs matters which Iraq may grant
to goods, the produce or manufacture of Turkey, or of any country whose
territory was in 1914 wholly included in the Ottoman Empire in Asia. |
GATT Library | my258jh1272 | Statement by the Delegation of Poland | United Nations Conference on Trade and Employment, March 22, 1948 | 22/03/1948 | official documents | E/CONF.2/73 and E/CONF.2/70-77 | https://exhibits.stanford.edu/gatt/catalog/my258jh1272 | my258jh1272_90040148.xml | GATT_148 | 0 | 0 | ||
GATT Library | mz362jj1766 | Statement by the Delegation of Poland | United Nations Conference on Trade and Employment, March 22, 1948 | 22/03/1948 | official documents | E/CONF.2/73 and E/CONF.2/70-77 | https://exhibits.stanford.edu/gatt/catalog/mz362jj1766 | mz362jj1766_90040148.xml | GATT_148 | 222 | 1,574 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/73
ON DU 22 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
STATEMENT BY THE DELEGATION OF POLAND
The following letter has been received from the delegation of Poland:
"Mr. President,
"When the text of the Final Act was approved at a plenary session
of the Conference, it has been made clear that the signing of the
Final Act does not bind in any way the respective Governments. I
informed my Government accordingly.
"The Polish diplomatic traditions however attach more significance
to the signing of international documents than it would appear from the
wording of the Final Act and its interpretation by the Conference.
Technical difficulties prevented my Government from studying the
Havana Charter and its implications as thoroughly as a document of
such magnitude and importance would require; the Polish Government
therefore wish to have the final text of the Charter and a detailed
report on the Conference before taking any decision. Under the
circumstances I regret to inform you that I am not in a position at
present to sign the Final Act.
"I would like to emphasize however that this does not in any
way prejudge the attitude of the Polish Government towards the
Havana Charter.
Yours sincerely,
/s/ M. Blusztajn
M. Blusztajn
Acting Head of the Polish Delegation" |
|
GATT Library | ph121gt4370 | Statement by the Delegation of the United States | General Agreement on Tariffs and Trade, March 19, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 19/03/1948 | official documents | GATT/1/43 and GATT/1/29-46+38/Rev.1,40/Rev.1 | https://exhibits.stanford.edu/gatt/catalog/ph121gt4370 | ph121gt4370_90310320.xml | GATT_148 | 223 | 1,423 | RESTRICTED GATT/1/43
19 March 1948
ORIGINAL: ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
FIRST SESSION OF THE CONTRACTING PARTIES
STATEMENT BY THE DELEGATION OF THE UNITED STATES
A member of other delegations have referred to the fact that existing
trade-agreement legislation in the United States will, if not renewed,
expire on June 12 of this year, and have inquired whether in this event,
the United States would be able to apply provisionally the General Agreement
on Tariffs and Trade to countries which had not signed the Protocol of
Provisional Application prior to the expiration of this legislation.
The interested delegations are informed that the United States will be
able to apply provisionally the General Agreement on Tariffs and Trade,
including the concessions initially negotiated with the countries concerned,
to all countries signatories of the Final Act at Geneva which have, by
June 30, 1948, signed the protocol of Provisional Application. The
United States would not, however, be in a position at this stage to
contemplate an amendment to the Protocol of Provisional Application, which
would extend beyond June 30, 1948 the date by which countries would be
permitted to sign the Protocol.
The United States does not propose to accept the General Agreement
definitively, that is to say, pursuant to Article XXVI, until it has taker
action with respect to the Charter.
6456 |
GATT Library | gj125qc7553 | Statement by the Honorable William L. Clayton, Chairman Delegation of the United States of America | United Nations Conference on Trade and Employment, March 23, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade and Employment | 23/03/1948 | press releases | Press Release ITO-194 and ITO/73-194/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/gj125qc7553 | gj125qc7553_90200388.xml | GATT_148 | 761 | 4,725 | UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Department of Public Information
Havana, Cuba
ADVANCE TEXT Press Release ITO-194
HOLD FOR RELEASE 23 March 1948
CHECK AGAINST DELIVERY
STATEMENT BY THE HONORABLE WILLIAM L. CLAYTON,
CHAIRMAN DELEGATION OF THE
UNITED STATES OF AMERICA
This is a day for history. There have been other con-
ferences on international economic affairs. But none of them
has undertaken a task so difficult as the one that is completed
here today. None of them has come to an agreement concerning
so many vital economic interests of so many states. None of
them has produced a document so comprehensive as the Havana
Charter for World Trade. Few, if any, of them have attained
so notable a measuree of success.
This is a momentous day for the United Nations. It marks
the culmination of an enterprise that had its beginnings in
the declarations of policy that were made in the Atlantic
Charter in 1941 and in Article VII of the Mutual Aid Agree-
ments in 1942. It marks the completion of three years of
careful planning and almost two years of continuous negotia-
tions. It marks the embodiment in a Charter, produced by
more than fifty nations, of the principles contained in the
Proposals that were published by the United States in 1945.
It marks the end of four months of hard work here in Havana.
And, as we look upon the result of these labors, we find that
the time and the effort of all the many countries who have
contributed to the Charter of Havana have been well apont.
The Charter is complicated and difficult. It is long
and detailed and technical. But behind its many chapters
and its scores of articles, there lies a simple truth. The
world will be a better place to live in if nations, instead
of - 2 -
of taking unilateral action, without regard to the interests
of others, will adopt and follow common principles and enter
into consultation, through an international organization,
when interests come into conflict. And this, throughout the
entire range of trade relationships, is what the signatories
of the Charter agree to do. Each will surrender some part
of its freedom to take action that might prove harmful to
others and thus each will gain the assurance that others will
not take action harmful to it. This may well prove to be the
greatest step in history toward order and Justice in economic
relations among the members of the world community and toward
a great expansion in the production, distribution, and con-
sumption of goods throughout the world.
The International Trade Organization will deal with
questions that nations have always held to be of the greatest
importance. It will seek solutions for problems that have
all too often been a source of irritation and ill will. It
will serve as a center where the peoples of the world, with
their diversity of economic interests, can meet on common
ground. The ITO will substantially complete the structure of
international economic cooperation. It will provide a neces-
sary supplement to the work of the International Bank for
Reconstruction and Development, the international Monetary
Fund, the Food and agriculture Organization, and other
specialized agencies. It will add strength to the United
Nations itself.
It is difficult to realize that the Charter designed to
bring this Organization into being is now completed. For we
have been told, again and again, throughout these years, that
it could not be done. The program was too ambitious. It
would involve too, many commitments. Circumstances and systems
were - 3 -
were too diverse. Fair dealing, in international trade, was
old-fashioned and impractical. The disorganization caused
by the war was too great. The problems of reconstruction were
too pressing. Nations were too much preoccupied with immedi-
ate difficulties. They would not look to the future. The
future, in any case, was too uncertain. It could not be done.
It has been done! The Charter is now ready for submission to
the legislatures of the participating nations for their appro-
val.
This conference has afforded the world an impressive
demonstration of the ability of nations to work out a compre-
hensive agreement on matters of vital importance under condi-
tions of great difficulty. Interests have differed at Havana.
But efforts to understand, to explain, and to agree have never
failed. We have all gained in knowledge and understanding.
We have achieved, through these years of working together, a
voluntary agreement for our mutual benefit. In this achieve-
ment, a troubled world may well take hope. |
GATT Library | kh999yg1434 | Statement by the United States Delegation regarding the application of the Geneva. Agreement by the Government of Cuba | General Agreement on Tariffs and Trade, September 9, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 09/09/1948 | official documents | GATT/CP.2/W/13 and GATT/CP.2/W.1-W.14 CP.2/W.1/Rev.1,CP.2/W.9/Corr.1,W.9/Add.1 | https://exhibits.stanford.edu/gatt/catalog/kh999yg1434 | kh999yg1434_91870466.xml | GATT_148 | 2,667 | 17,133 | RESTRICTED
General Agreement on Tariffs and Trade LIMITED C
Contracting Parties GATT/CP. 2/W/13
Second Session 9 September 1948
ORIGINAL: ENGLISH
Statement by the United States
Delegation regarding the application of the Geneva
Agreement by the Government of Cuba
Mr. Chairman: I have been instructed by my Government to
lay before the CONTRACTING PARTIES a matter arising under the
nullification and impairment provisions of Article XXIII of the
General Agreement and to seek appropriate redress.
The situation to which I refer is the following: On July
10 of this year the Government of Cuba, by means of Resolution
No.530 of the Ministry of Commerce of Cuba, established a
regulation governing the importction into Cuba of textiles.
The main features of this regulation are as follows:
1. A registry of textile manufacturers and importers is
created, and imports of textiles may not be entered into Cuba
by persons which have not registered. Registration is not
permitted by persons who have not been customarily and regularly
engaged in the importation of textiles.
2. Textile manufacturers and importers are required among
other things to file with the Government a complete and detailed
inventory of their stocks of textiles of all kinds, together
with detailed information as to selling prices.
3. Imports of textiles by duly registered persons may not
be entered unless a separate permit for each importation for
every single item of the manifest has been issued by the
Import and Export Division of the Ministry of Commerce. In
order to obtain s uch permits, it is necessary for an importer
to comply with elaborate requirements, including the submission
of a detailed description of the goods involved., samples of
such goods, and current export prices.
4. A copy of the permit together with a sample must
accompany the consular document presented to the Cuban consul
in the exporting country and made a part of such document.
Another copy and sample must go to the custom house through
which the importation will take place. If through error a
sample is attached to a permit which is not precisely the same
as the article presented for importation the import permit is
automatically cancelled and importation of the article is
prohibited.
In order that -the CONTRACTING PARTIES may cxaminie these
regulations in detail, there is being circulated a copy of the
text of Resolution 530.
In the view of my Government, the control imposed
pursuant to Resolution No.530 is in conflict with the
provisions of Article XT of the General Aigreeraent on Tariff-
and Trade, prohibiting the application of quantitative
restrictions on impor ts. But whether or not it i s in
conflict with the letter of these provisions, there can be no
question, in the view of my Government, that this measure is
a clear nullific ition of the benefits which the Gener'al
Agreement seeks to provide. Since the resolution was put
into effect, imports of textiles into Cuba, including all of
the important items on which tarrif concessions ware granted - 2 -
.by Cuba in Schedule IX of the Agreement, have ceased
completely, this being due to the inability or unwillingness
of importers to comply with the requirements demanded for the
issuance of an import license.
Acting in accordance with the provisions of paragraph 1
of Article XXIII, my Government approached the Government of
Cuba, through the usual diplomatic channels, on July 26,
stating in writing its view that the regulation constituted a
nullification of the provisions of the General Agreement, and
requesting that it be removed. Since that time my Government
has been unable to obtain from the Cuban Government any
assurance that the situation will be remedied.
In the meanwhile, textiles have been piling up in Cuban
warehouses, sales have been prevented from being consummated,
and the interests of exporters in the United States are being
damaged. The tariff concessions on textile items in
Schedule IX of the Agreement, which concessions make up a very
important part of the total concessions- received from Cuba by
the United States and no doubt by other interested contracting
parties, are without any effect whatsoever so long as this
regulation is maintained. Under the terms of the regulation,
it will be maintained until the end of this year, a period
of several months, and there is no assurance that it will not
be extended thereafter.
No doubt arguments will be presented tending to show
that the purpose of the measure is beneficent - for example
it may be alleged that the measure is merely designed to assure
assessment of duties on textile imports under the proper
classifications. We do not wish to argue about the under-
lying motives. Our concern is with the effect of the
regulation, and that effect is, as we have said, a clear and
serious nullification of the provisions of the Agreement
Mr. Chairman, in the light of these facts we ask the
CONTRACTING PARTIES
First, to find that the effect of Resolution No,530 is
such as to nullify the provisions of the General Agreeement on
Tariffs and Trade;
Second, to recommend to the Government of Cuba that the
Resolution be withdrawn; and
Third, pending compliance by the Government of Cuba with
such recommendation, to authorize the affected contracting
parties to withhold compensatory concessions from the trade
of Cuba. - 3 -
TEXT OF REGULATION IMPOSED BY THE GOVERNMENT
OF CUBA ON THE IMPORTATION OF TEXTILES
MINISTRY OF COMMERCE
Resolution No.530
WHEREAS the exceptional conditions Prevailing in the
textile trade make it advisable to adopt measures which, like
those contained in this Resolution, .are temporarily resorted
to in. order that the imports of' the articles involved be
thereafter affected in accordance with the system thereby
provided,
NOW, THEREFORE: In Pursuance of the powers vested in
me, I hereby,
RESOLVE:
FIRST: Hereafter all imports of textile articles assess-
able. under all the subsections (letters) of Sections (Items)
112 to 150, both inclusive., of the current Customs Tariff,
must be effected by natural or artificial persons regularly
engaged in the sale or subsequent conversion thereof, who
operate regular stores or factories under current Municipal
and General Licenses, and who are duly registered in the
Importers Register of this Ministry, and in the Register of
Textile. Manufacturers and Importers hereby created, which
shall be attached to its Import and Expert Division, provided
that such importers show proof of being regularly and habitually
engaged in such trade..
SECOND:, A Register of Textile Manufacturers and Importers
is hereby established, attached to the Import and Export
Division of this Ministry. And to such end a period of thirty
days' counted from the day following the promulgation hereof
in the Official Gazette of the Republic, is allowed to such
natural and artificial persons as may be proprietors or oper-
aters under any arrangement, of textile plants or factories,
and to the regularly established importers of the articles to
which the preceding Section hereof refers, to secure their
registration in said Register, for which cach of then must
file an application containing the following particulars:
a) Name and address of the natural or artificial person
owning or operating the industry or business involved.
b) Number of. the Municipal and General Licenses. (Patente
Unica).
c) Registration entry number of the Mercantile Registry
and, if a corporation, also of the -Corporations Registry, - 4- d) Number and classification of the concern's
registration in the Importers Register of this Ministry.
e) Proof of being customarily and regularly engaged
in the importation of said articles, which shall be evidenced
by producing certifications to such effect, issued by the
Custom-houses of the Republic.
f ) National . manufacturers shall attach to their appli-
cations, under the proper affidavits, representative samples
of their products specifying classes, types, varieties,
qualities and brands.
THIRD: National manufacturersrs shall file-with the
Import and Export Division, within the period specified in
the preceding Section, itemized statements showing their
stocks on hand as of June 30 of this year, and specifying clauses,
types, weights, varieties, qualities, brands (or marks), unit
production costs; also the average selling price per unit for
the domestic market of each of the articles - produced by these
during the six months immediately preceding the promulgation.
of this Resolution. In addition they shall list their usual
sources of supply of raw materials, likewise specifying
classes, types, varieties, qualities, quantities, weights,
brands and prices paid to the exporter thereof during the six
month period immediatelyy preceding the promulgation hereof.
FOURTH: National importers shall file with the Import
and Export Division, in affidavit form, an itemized inventory
of their stocks of fabrics of all kinds, including the
"trimmings" or "waste" and remnants", specifying the type,
class, quality, variety, weight, brand (or mark), country of
origin, name of the exporter, purchase price at place of
origin and domestic market selling price thereof; on any date
within thirty days following the promulgation of this
Resolution.
FIFTH: Upon due examination of said applications and
the documents thereto attached the Import and Export Division
shall, provided that the importer or manufacturer involved
shall have duly filed the affidavits referred to in the two
Sections above preceding, either grant or deny the reEgistra-
tion applied for, in accordance with the undersigned's direc-
tions in each case.
SIXTH: The Collectors of Customs of the Republic shall
not permit the clearance for consumption and subsequent
removal of the articles covered by this Resolution if the
importer involved does not show proof that he or it is duly
registered in the Textiele Manufacturers and Importers Register
of the Import and Export Division of this Ministry, and that
he or it has been granted the proper import permit issued by
this Ministry for the particular Importation involved,
SEVENTH: The natural or artificial Persons referred to
in the first Section hereof may effect importations of the
articles covered by this Resolution provided that they shall
file with the Import and Export Division an application for
each proposed importation, which must include a sworn decla.
ration to the affect that the permit under which such proposed - 5 - importation is to be made will cover a single item of the
manifest, and containing, in addition, the following
particulars:
.a) Name and address of the importer or manufacturer
concerned and his or its registration numbers in the Registers
of Importers and of Textile Manufactures and Importers of
this Ministry.
b) Name and address of the exporter explaining whether
such exporter is a manufacturer of the articles. involved or
a regular extort merchant dealing in the sane; also registra-
rna.number of such exporter in the Register of Exporters of
the Cuban Consulate through which the consular invoice
covering the shipment will be cleared.
c) Class of fabric, weight, threads, ends, mixtures,
surface (area), color, whether dyed or printed, and number
of threads per each six square milimeters, indicating the
Customs Tariff section (number) and sub-section (letter) under
which the article involved will be declared in the application
for Customs clearance for consumption.
d) Certificate issued by the Cuban Consul attesting to
the current export price of the article in question for all
buyers thereof on the date of its issuance.
e) Port of exportation and of arrival in the nati nal
territory, and Cuban ConsularOffice collecting the consular fees.
f) In addition, five samples measuring not lest than ten
centimeters each way, of the article the importation thereof is
desired, shall be attached to the application. The importer in
each case shall be held responsible for the correspondence of
such samples with the articles actually imported thereunder,
If the applicant should in any case be unable to comptly with
the requirements set forth in sub-section d) of this section,
such applicant may request the Import and Export Division of
this Ministry to secure the required certificate from the Consul
with jurisdiction to issue it.
EIGHTH: After hearing the opinion of the Advisory
Committee of this Ministry and upon recommendation and approval
of the undersigned, the Import and Export Division shall issue
the import permits if and when the applicant concerned shall
have complied with all the requirements set forth in this
Resolution.
Once the import permit shall have been granted, the Import
and Export Division shall forward one copy thereof, together
with a sample of the article whereof the importation is proposed,
to the Customhouse of the Republic through which the importation
will be cleared, so that the Customs auth rities may verify
whether the class of article imported thereunder coincides with
that whose importation may have been approved and authorized.
Another copy of said permit, together with another sample of
the article involved, shall be forwarded to the General Division
of Customs of the Republic, in order. that it may take due -6-
note of the particulars set forth therein, and may again
compare such sample with the article actually imported
thereunder.
The Import and Export Division shall also issue and
deliver to the applicant in each case two copies of the import
permit, together with two samples of the article in question one
of each of which shall be forwarded or delivered, as may best
suit such applicant, to the Consul of the Republic at the place
where the consular documents covering the shipment will be
cleared, to be attached thereto and lade part thereof upon
being duly sealed and legalized by such Consul; and the renain-
ing copy shall be forwarded to the Customhouse of the Republic
through which the actual importation will be cleared for the
purposes of the clearance thereof for consumption and subsequent
removal of the goods from Customas jurisdiction.
NINTH.: In the event that at the time of the Customs
appraisal of any authorized importation it should be observed
that the sample attached to the respective permit, as issued
by the Import and Export Division, is of a class different
from that of the actually imported fabrics, such circumstance
shall produce the immediate cancellation of such permit, for
which no further processing shall be required, and the clearance
of the goods for consumption shall be .prohibited.
TENTH: No permits shall be issued to cover importations
of fabric lots declared under generic names, which because of
their natural structure, naufacture or processing ought to be
classified and assessed under different Customs Tariff sections.
ELEVENTH: Importations of jute bags and cloths, and of
cotton bags. used as lacking for agricultural and industrial
Products are excluded from the provisions of this Resolution.
TWELFTH: The sale assignment or exchange of the import
permits issued to Cuban importers by the Import and Export
Division, as well as the substitution or addition of exporters,
are hereby strictly prohibited.
THIRTEENTH: The Import and Export Division. is hereby
empowered to conduct whatever investigations and demand whatever
information it may deem necessary from any public or private
organizations for the enforcement of the rules contained in
this Resolution, and. to recommend to the undersigned whatever
supplementary measures or provisions may be deemed expedient
or desirable to such end.
FOURTEENTH: The provisions hereof shall not be applicable
to such imports covered by duly certified consular invoices, as
may have left their foreign port -of origin before or on the
date of the promulgation of this Resolution, provided that the
orders therefor shall have been placed prior to such promulga-
tion in the Official Gazette. -7-
FIFTEENTH: This Resolution shall become operative
from the date of its promulgation in the Official Gazette of
the Republic, and shall remain in force until December 31 of
the current year.
SIXTEENTH: The Director of the Import and Export
Division of this Ministry is hereby directed to attend to
the enforcement of the provisions of this Resolution.
SEVENTEENTH: Let this Resolution be notified to the
Ministers of the Treasury and of State, forwarding each of
then a copy thereof for all pertinent purposes. And let it be
published in the Official Gazette for all legal purposes and
general knowledge and guidance.
DONE in Havana, Ministry of Commerce, this ninth day
of July, 1948.
ROLANDO ACOSTA MARCOS
Minister of Commerce
(Official Gazette No, 159, July 10, 1948) |
GATT Library | bw617bh6744 | Statement by Trygve Lie, the Secretary-General of the United Nations to be read by Mr. David Owen on the occasion of the signing of the charter of the International Trade Organization at Havana, Cuba on March 24, 1948 | United Nations Conference on Trade & Employment, March 24, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade & Employment | 24/03/1948 | press releases | Press Release ITO/224 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/bw617bh6744 | bw617bh6744_90200414.xml | GATT_148 | 2,296 | 14,496 | UNITED NATIONS CONFERENCE ON TRADE & EMPLOYMENT
Department of Public Information
Havana, Cuba
Press Release ITO/224
24 March 1948
STATEMENT BY TRYGVE LIE,
THE SECRETARY-GENERAL OF THE UNITED NATIONS
TO BE READ BY MR. DAVID OWEN ON THE OCCASION OF THE SIGNING
OF THE CHARTER OF THE INTERNATIONAL TRADE ORGANIZATION AT
HAVANA, CUBA ON MARCH 24, 1948
The Secretary-General very deeply regrets that he has been
unable to be present here during the concluding stages of this his-
toric conference, He wishes me to assure you on his behalf that only
the most iimportant considerations have necessarily prevented him from
leaving United Nations Headquarters at this time. He has asked that
I read to you the message which he would have delivered had he been
here.
I wish to pay a most sincere tribute to the delegations represent
ed here whose unflagging efforts and spirit of compremist have now
resulted in what may in the future come to be regarded as one of the
most momentous landmarks in the history of international economic co-
aperation. The fact. that you have laid the fundations for success in
this great enterprise of surpassing complexity, in spite of the most
formidable difficulties, is a source of very great encouragement to
me, and, I am sure, to all who are concerned with international co-
operation at this present tire of tremendous stress and strain in
international affairs. At a time when there is so much in the re-
lationships of nations, especially these with the greatest power and
responsibilities, which is discouraging, it is splendid to be able to
point to a great achievement in a field of international economic co-
operation presenting problems of exceptional difficulty and complexity
No single delegation here would have drafted the Trade Charter
in exactly its present form. No one is entirely satisfied, and many
of you still have reservations on this point or that. But there is,
I think, a general recognition that the area. of agreement is now so
large, and the concessions made an all sides so substantial, that it
is possible to proceed with the next stage towards building an Inter-
national Trade Organization founded on a rost significent body of (MORE) -2- ITO/224
OWEN
lectrine concerning the economic relations between nations.
This achievement stands in splendid contrast to the tragic fail-
ures of the years between the two World Wars. We aIl remember the
high hopes of the fifty nation World Economic Conference of 1927, fail-
under the auspices of the League of Nations, and the subsequent fail-
ure of its reconmendations. We recall the further conferences of
1930, 1.931, and 1933, none of which were able to find a cure for the
creeping paralysis which was disrupting international economic rela-
tions, Your success is all the more remarkable when viewed against
this background of inauspicious precedents,
But this history of failure has by no means been the most ser-
ieus hurdle which you have had to surmount. You have met and worked
together at a time in which many nations have been faced with such
immediate and' everwhelming, economic troubles arising out of World War
II, tht they have had the gretest difficulty in approaching the task
cf lcn.- term planning for the orderly development of international
trade in mare normal circumstances, You have grappled successfully
with this problem too, and have made wise provision fer a transition
peried before the full code of economic conduct laid down in the
Charter takes effect.
Perhaps your most significant contribution to the planning of
international trade relations has bean in your recognition of the es-
sential interdependence of economic problems In this respect, the
experience of the inter-war Worrld Economic Conferences has not, par-
haps, been entirely in vain. You will recall that in its report of
1945, entitled "Commercial Pclicy in the Post-war- World", the League
of Nations Economic and Financial Committee stated that
..we are strengly of the opinion that the direct associa-
tion of commercial policies with policies designed to secure
an Expansion of production and consumption and the mainten-
ance of high and stable levels of employment is an essential
prerequisite to progress towads international economic(MORE) -3- ITO/224 Owen
cooparation." The failure in the inter-war years to emphasize
the essential interdependendce of these issues was indeed one
of the reasons for the lack of success that was then experienced".
Economic developments in the world since 1945 have if anything,
tended to strengthen these arguments in favor of the close knitting
together of all the clements and aspects of international economic
policy. I recently had occasion, in the Economic Report which I pre-
sented to the economic and Social Council, to draw attention to the
present most sericus distortions and lack of balance in international
trade. The Economic Report showed, I think conclusively, that present
difficulties in international trede, and the resulting werldwide hard
currency problems,, were intimately associated. with, and could not be
considered independently, of, the shifts in the distribution of the
world's productive rescurces which were a. consequence of World War II.
The recenstruction of all areas to which the war brought heavy devas-
tation is a sine qua. non of any generall improvement in the internaticn-
al trade situation;
It has, moreover, come to be regarded almost as a commanplace
bath by Governments and by public opinion that the- maintenance of econ-
omic presperity and full employment at home, particularly in certain
counrtries of agreat economic influence, lies at the very basis of a
healthy situation in international trade,.
Of ne less significance for the expansion of international trade
is the economic progress of the underdeveloped areas cf the world,
since international trade per capital is generally lowest where economic
development is still in its early stages,
With these considerations in mind; the Havana Conference, as also
the Preparatery Committee which preceded. it, has worked on the deliber-
ate assumption that the problems involved in expanding international
trade cannot themselves be solved unless other related and at least
equally urgent questions reccive simultaneous consideration. These
questions appear in the very ferefront of the Havana Charter in Article
1, and include particularly (MORE) ITO/224 Page 4
"the attainment of the higher standards of living, full
employment and conditions of economic and social progress and de-
velopment"
envisages in Article 55 (a) of the Charter of the United ations.
This strong emphasis which you have placed in the Havana Charter on
questions of full employment and economic development constitutes,
as it sees to me, one, of the most important single reasons why you
have succeeded where your predecessor of the twenties and thirties
failed.
It needs no reminder fro me for you to recall the complexity
of the task of welding together into echerent whole all the highly
interdependent econonic consideratons to which I have referred.
Important conflicts of interest emerged, both during the meetings
of the Preparatory Committee, and here at Havana. You have rightly
preferred to face up to these conflicts and resolve them, so far as
is possible at this time rather than skirt them in au attempt to
reach a quick and superficial agreement. When one considers that on
10 December last your Executive Secretary announced that sone 800
draft amendments has been submitted by delegations to the Draft
Charter presented to you by the Preparatory Committee, the wonder is
net at all that the Conference has lasted so long, but that it has
been possible to achieve agreement so soon
You are therefore now submitting to the Governments of the world.
for the world, for their final judgment, a Charter embodying detailed
programmes and policies which have received the most careful and
critical consideration humanly possible, in a long series of meetings
dating back to October 1946 and culminating in the full Havana
Conference of 58 nations. It may well be some considerable time
before the `required number of Governments ratify the Charter, the-eby
allowing the creation of the International Trade Organization.
(MORE) - 5 - ITO/224
24 March 1948
But this does not mean that we stand still. One of the
outstanding achievements of the second session of the Preparatory
Committee at Geneva was the successful negotiation, between 23 of
the greatest trading nations, of the General Agreement on Tariffs
and Trade. The Protocol of Provisional Application of this Agree-
ment has now been signed by ten nations, namely Australia, Belgi-um
Canada, Cuba, Czechoslovakia, France, Luxembourg, Netherlands, the
United Kingdom and the United States. In addition I have been
notified by the Government of the Netherlands that they intend to
apply the General Agreement provisionally in respect of their over-
seas territories, and the Government of the United Kingdom has
indicated that it is giving provisional application to the Agree- `
ment in respect of Newfoundland.
This preliminary action towards the implementations of the
aims of the Navana Charter is Of the highest importance. On the
one hand, to the extent that effect is given to the tariff conces-
sions drawn up at Geneva, in the most remarkable series of multilat-
eral negotiations of their kind in history, the current widespread
hard currency crisis will be eased to some extent, and the volume
of international trade may be expected to grow. And, on the other
hand, since certain fundamental features of the Havana Charter are
contained in the General Agree.nent, already being provisionally
applied by the ten countries which I have mentioned, there is a
most hopeful prospect of the ultimate application of the full
provisions of the Charter both by these ten countries, and by many
others.
I -now that you will not take it to imply lack of appre-
ciation by me of the character of the great Charter which you have
drafted here in Havana, if I express the belief that it is by posi-
tive and constructive action in the spirit of the Charter and its
principles rather than by an iver-legalistic attempt to regulate
(MORE) - 6 - ITO/224
24 March 1948
the dynamic elements in the present international economic situations
that the purposes of the Charter will best be served. The great
task is to increase the volume of world trade, not only by elimina-
ting blockages and hindrances in its channels, but by taking positive
action to stimulate and expand the flow of goods and services be-
tween the nations. It is impossible to exaggerate the importance of
this great task, one which will certainly call for great imagination
and constructive statemanship on the part of your future Director-
General and your Executive Board. I hape that the progress of rati-
fication will be such that work on this challenging task can be be-
gun without too much delay.
This Conference itself is taking a most important stop
towards the establishment of the International Trade Organization in
setting up an Interim Commission to de responsible for the wcrk
that will arise during the coming period immediately ahend. More-
over, the Economic and Social Council, at its sixth session, and on
your recommendation, has provided for the continuation of the
Interim Coordinating Committee for International Commodity Arrange-
ments which will press forward its work in the light of the general
principles of commodity policy which yeu have considered here. You
ray count on it that I shall do everything in my power to assist the
activities of these interim bodies until such time as your more
permanent arrangements can take effect.
As a result of all these great decisions which I have thus
briefly reviewed, I think we are now entitled to look forward hope-
fully to the time when the Internpational Trade Organization will bc
firmly established, and enter into relations with the United Nations
as one of the Specialized Agencies. The Economic and Social Council
will, I am sure, welcome the full participation and cooperation of
the International Trade Organization in the overall economic tasks
(MORE) - 7 - ITO/224
24 March 1948
of the United Nations, And, for its part, the International Trade
Organization will have a great stake in the successful operation of
the Economic and Social Council and other agencies, without which
the achievement of its own objectives would be impossible, For the
cooperation and inter-dependence of the Economic and Social Council
and the Specialized Agencies must logically reflect the close re-
lationship between the specilized aspects of our general economic
problems, to which I gave sore attention earlier in my remarks.
When all this is done, the structure and design of the most
comprehensive machinery for the solution of international economic
problems that the world has ever seen will have been completed.
This will have been perhaps a decisive step in healing not only the
economic but the political maladies of the world. I associate my-
self entirely with the words of President Grau San Martin in opening
this Conference last November when he said that your task was closely
linked to the task of peace, and that a successful outcome to the
Conference would result in a fruitful achievement for the present,
and a rich endowment for future generations
In conclusion, I should like to express my deepest apprecia-
tion, bath personally and on behalf of the United Nations, to
President Grau San Martin, to the Cuban Government, and to the dis-
tinguished President of this Conference for their exceptional and
patient generosity, and for their unstinted hospitality, throughout
this lang Conference -- in spite of what must have been for them a
very considerable inconvenience, It is entirely appropriate that
the Charter of the proposed International Trade Organization should
come to be known to the world as the Havana Charter -- a reminder
of the invaluable and special contribution which Cuba has made to
the happy outcome of these proceedings.
(End of Press Release ITO/224) |
GATT Library | cd822qk7031 | Statement of the Delegate of Cuba to be inserted in the summary record of the Meeting of the Contracting Parties held in the morning of August 25, 1948 | General Agreement on Tariffs and Trade, August 25, 1948 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 25/08/1948 | official documents | GATT/CP.2/19 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/cd822qk7031 | cd822qk7031_90320031.xml | GATT_148 | 373 | 2,369 | RESTRICTED
Limited B
GATT/CP.2/19
25 August 1948
Original : ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
Contracting Parties
Second Session
STATEMENT OF THE DELEGATE OF CUBA TO BE INSERTED IN THE
SUMMARY RECORD OF THE MEETING OF THE CONTRACTING PARTIES
HELD IN THE MORNING OF AUGUST 25, 1948
The Delegate of Cuba expressed that his intervention
in this discussion was not intended to interfere in a matter
that relates directly to Brazil, the United States of America
and the United Kingdom, although all Contracting Parties have
an indirect interest in it according to Article I. He did
not wish t.o express any opinion in relation to the commercial
side of the question; in fact, the Cuban Delegation was ready
to vote in favor of the Brazilian petition. But the Cuban
Delegation has a deep interest in the procedure followed, by
which a Contracting Party withdraws certain concessions in
a form not contemplanted in GATT, the application of Article
XXV being very quesnionable in his opinion.
The Delegate of Cuba added that any decision adopted
in this matter shall establish a precedent, notwithdtanding
that one Delegation or the whole Contracting Parties declare
the contrary, for according to international law, decisions of
a body interpreting a Jaw always constitute precedent, and
repeated precedents the jurisprudence.
The Delegate of Cuba expressed that his Government was
very much worried in relation to the form in which GATT was
being interpreted and applied, for it seems that it is easy
for certain parties to find ways solve their difficulties GATT/CP, 2/19
page 2
through the Contracting Parties and others do not find
sympathetic consideration to their problems.
He expressed that Cuba was facing great difficulties
with the adjustment of certain items of their schedule with
another Contracting Party included by error, that were
jeopardizing the possibilities of the ratification of the
GATT by the Cuban Congress and its membership in ITO:
The Cuban Delegate formally announced that if the
difficulties his Governrment is facing In relation to silk
hosiery, rubber tires and tubes , and ribbons and trimmings
cannot be solved in this session, the Cuban Government will
follow the precedent established by the Braailian case, or
avail itself of the right granted by Article XIX of GATT. |
GATT Library | fx445jd1139 | Statment by Mr. S. L. Holmes for the United Kingdom Delegation before the Final Plemary Session of the United Nations Conference on Trade and Employment on 23 March 1948 | United Nations Conference on Trade Employment, March 23, 1948 | Department of Public Information Havana, Cuba and United Nations Conference on Trade Employment | 23/03/1948 | press releases | ITC/198 and ITO/195-228 | https://exhibits.stanford.edu/gatt/catalog/fx445jd1139 | fx445jd1139_90200391.xml | GATT_148 | 1,636 | 9,843 | UNITED NATIONS CONFERENCE ON TRADE & EMPLOYMENT
Department f Public Information
liavana, Cuba
ITC/198
23 March 1948
STATMENT BY MR. S. L. HOLMES FOR THE UNITED KINGDOM
DELEGATION BEFORE THE FINAL PLEMARY SESSION OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT ON
23 March 1948.
Mr. President,
much has been said on the course of these plenary meetings on
the sclonnity of the occasion and the importance of the Conference,
the Final Act of which at last awaits signature. I should have
liked to content myuself with endorsing those remarks and acknew-
ledging our indettedness to the Goverment of Cuba and to the
Conference Secretariat.
It has been an impressive and fruitful experience for us to
meet in this great city of Havana, the capital of an important
country of Latin America. The length ofu our work is not due to any
leficiencies of arrangements on the part of the Culan authorities.
Few countries, I believe, could have provided a better scene for a
great international gathering such as this Nor have our delays
been due to any inefficiency on the part of the Secretariat, who have
never risen so well to a formidable a formidable task, helped by the welcome
convenience and amenities of the City and the Capitolio
If we have seemed to have risked outstaying our welcome and to
have taken overlong for our work, it is in truth to the inportance
of the issues before us that we must look. I do not propose to
emLark upon any general examination of these issues on the present
cocasion or of the special position and difficulties of countries
like any own at this time. That has been done by others; for us it
was done by Mr. Bottomley, cur Secretary for Overseas Trade, in his
porAry sPeech .t the oeginninf of this Conference just four months
ago. it will be for history to say whether these four months have
been well spent, whether the time and money the strain of a pro-
tracted Conference of this size have been justified. We have all
learnt much of each other's points of view and, quite apart from the
(MORE) itro/198
Charter, shall have much to ponder on our retrun. It is surely a
gain and an encouragement that in these months of long and often
arduous debate there has been so consistent a a rendiness to listen
with courtesy and patience and so soldom and entry of aerimony into
our proceedings.
It will, Sir, be within the knowledge of many Delegations here
that the Government of the country which I represent have felt it
necessary to weigh most carefully the question whether they could
authorize the to sign this Final Act. As I have explained on other
recemt occasions, the signature of an instrument of this sert on
behalf of the United Kingdom is a matter to which, according to our
tradition in these matters, no mean significance attaches, The
of Great Britain and Northern Ireland
Government of the United Kingdom/much regret that netiher in its
general balance nor in its detailed provisions is the draft Charter
whelly satisfactory to them.
The Government believe that the Charter as now drawn goes too
far in the relaxation of centrol over quantitative restrictions
for developmental purposes and that closer control would in the
end have helped, and not hindered, the countries at whose insistence
these provisions have, been redrafted. But still less satisfactory
to the Government of ssthe United Kingdom is the final form of the
Article providing for new preferences. We believe the contribution
we have made towards general agreement in fulfilment of the
original Proposals from which this Charerter sprang,e by way of
limiting and providing for the reduction and even the elimination
of preferences we enjoy, to be a very considerable contribution.
Yet at the same time is we are to accept these provision we have
been asked to accept another provision opening up the prospect of
a new range of preferences in the interests of economic development
(MORE) ITC/198
on the accilental basis of geography. In accordance with the
footnote to the article, however, the Organization is not bound
by a narrow interpretation of region in its study of new
preferences which conform to the purposes and the terms of the
article, provided a sufficient degree of economic integration
existss between the countries concerned. I am now in a position
formally to withdraw my reservation on this article. But I
must make it clear that the Government of the United Kingdom
will look to the Organization to interpret the article, with
the footnote forming part of it, as authority equitably to con-
sider such prtoposals as might be put forward for new preferences
/between
(MCHE) ITO/193 economic
between particular commonent 1' 'C .c- ioc-& CA t C L;v-xAD
They will expect such C;vcsC. e -rtic er rccncC X!itA
the some end in view between other counhtries. This they regard
as the object of the footnote. They will feel it neccessary to
watch the a~î1l-1 t:Dof this article very carefully so that
there is no unfairness between the treatment of the British
Go:;~ env;c21zh and that of other economic groups.
I must also refer to the article dealin with exetions to
the rule of non-a- . sci ination. This has provided one of the most
difficult and complicated problems of the Conference. The matter
is oen of vital concern to countries like our own, whese economies
have been subjected to such violent strains in the achievement of
common victory in a lon and terrible war. For some years to come,
such countries will require latitude to depart from the strict
rule of non-diserimination. This in a certain measure is provided
by the article in question. The United Kingdom, in common, we
believe, with many other countries, will need to make full use
of this latitude in the efforts which, at the cost of great
sacrifices to its people, it it now making to secure another
victory and to bring nearer the common aims behind the Charter
of restorin convertibility and full multilateral trade. without
the United Kingdom, one of the world's greatest5 markets and one
of the world's greatest exporters, these aims could not be
achieved. This article is designed to meet ther in'CY8ii.t-position;
we shall have to take full advantage of its provisions.
I have empghasized ther fact that signature of the Final act
of this Conference on behalf of the United Kingdom is a decision
not taken lightly by the Government of my country; it is decision
the importance of wich will not, I hope, be lost on the other
countries here represented. But, while it si nifies that my Govern- - 5 - ITC/198
ment inton to rC3 ..:_ this Charter in due course to the
<.i ) the United Kingdom, their a ^ .lllty ta w o sc
the time comes will necessarilly depen upon circumstances not
fully within their own control. These will include in particular
the enterd balance of apoyments in which the United
Kindom then fines herself and also find other countries upon
which her economy larmely depends and whom aconomis depend
lar gely upon her own.
In authorisin de to sign the Final Act, the Government of
the United Kingdom wished points made clear. They feel
stron ly that we each syhould know how and where the countries
here represented stand. This is a measure of the importance they
attach to the work on which we have so long been _ee. en wec-.No
Country has been more intiwately associated with it than my own
and I here would like to way our achnowlements to our partners
from the first in the reat project now to forward. We are
convinced that the principles behind the Charter are right
principles; we beliee proposed Organization agreat and
beneficent word ahead of it; we look forward to the earliest
possible restoration of multilateral train throughout the world.
, cre sure that the firm faith of the U.S. this project from
teh be inmin will bear fruit, The Proposals to which we subscribed
in 1945 as the frame for this endeavour will be looked upon in
years to come as one of the first sians of the era of peace and
prosperity which we yet believe is in store for a- troubles world.
But this deep conviction cannot be justified unless in its
early years in particular the Organization shows wisdom and under-
stanein, I cannot emphasize too strongly the risk of failure if
the organization does not administer this
the organization does not administer this all too complex an
instrument both fairly and broadly, if its Councils are not
composed of men, and women, of of high repu an if its staff is not is not
- 5 - ITC/196 -3- representative of the best ideals of public service. It will have
many uregant and vital problems to solve and these problems will be
of the most practical importance to the people in all countries.
They are not capable of solution by more economie dogmas or
theoretical formules. We shal need much more than that; we shall
want real corporation, a real in ulse to help each other, and in
the liput of experience the Charter we have evolved may be capable
of much salutary simplification, Some of the difficulties which
have so greatly exercised us may be found to have little practical
importance. The spirit and aims of the Organization aneits lifeblood,
and aas the representative of the United Kingdom I can say that, given
the conditions of recovery, given the will to serve the common
interest in the circumstances of the world as they are, in the dif-
ficulties of the times through which we are passion, we hae faith
in its future.
9END OF PRESS RELEASE ITC/198) |
GATT Library | mq177ph4919 | Statment Submitted by the Representative of the United States | General Agreement on Tariffs and Trade, September 2, 1948 | General Agreement on Tariffs and Trade (Organization), Contracting Parties, and Working Party 6 on the United States Proposal Relating to Western Germany | 02/09/1948 | official documents | GATT/CP.2/WP.6/2 and GATT/CP.2/WP.6/1-3 | https://exhibits.stanford.edu/gatt/catalog/mq177ph4919 | mq177ph4919_91870503.xml | GATT_148 | 255 | 1,624 | RESTRICTED
LIMITED C
GATT/CP.2/WP. 6/2
2 September 1948
ORIGINAL ENGLISH
GENERAL AGREEMENT ON TARIFFS AND TRADE
Contracting Parties
Second Session
Working party 6 on the United States Proposal
Relating to Western .Germany
Statment Submitted by, the Representative aS v~e
of the Uniteã State
Without attempting to describe in detail all of the
measures now in force which are applicable to the export and
import trade of the areas of Western Garmany now occupied by
the United States, the following statement may be made on the
basis of information supplied by the Chairman of the Joint
Import--Export Agency of the Bizonal Areai"
First The importation of goods into Germany is
conducted by private parties under licence from the Joint
Import-Export Agency. These licences are granted provided
that the total of imports of the particular commodity does not
exceed a Quota established for the particular period. These
quotas are established by an agency of the Geirman local
government subject to the approval of the UJEA. Quotas are
based on over-all quantities and are not estabelished with
reference to -imports from particular countrries..
Second. The export ation of goods from Germany is conducted
by private parties under license from the JIEA. In granting or
withholding licences consideration is given to price and to the
necessity of avoiding the export of capital goods,
Third. None of the controls now in force is exercised in
such a manner as to discriminate against any country in a
manner contrary to the principal es of the General Agreement on
Tariffs and Trade. |
GATT Library | bd301km7511 | Status of papers issued by the Department of Public Information : Note by the Secretariat | United Nations Conference on Trade and Employment, March 24, 1948 | 24/03/1948 | official documents | E/CONF.2/77 and E/CONF.2/70-77 | https://exhibits.stanford.edu/gatt/catalog/bd301km7511 | bd301km7511_90040152.xml | GATT_148 | 210 | 1,484 | UNRESTRICTED
E/CONF.2/77
CONFERENCE CONFERENCE 24 March1948
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
STATUS OF PAPERS ISSUED BY THE DEPARTMENT OF PUBLIC INFORMATION
NOTE BY THE SECRETARIAT
Inquiries have been received concerning the status of the reviews and
other papers issued by the United Nations Department of Public Information
in connection with the Conference.
This note is intended to confirm that these papers have no official
status with reference to the interpretation of the Charter or to the record
of discussions here - except, of course, in the case of the releases reporting
in full the texts of delegates speeches at the Final Plenary meetings which
constitute part of the record of those meetings. The papers issued by the
Department of Public Information are designed to assist press correspondents
who might be unable to cover all meetings or who might find difficulty in
acquiring background information for appreciating developments here. Inevitably
errors may have crept in and matters may sometimes not have been expressed as
precisely as they would have been in a formal conference document. I
understand from representatives of the Press that releases which have been
issued have been found to be of considerable value in enabling them to cover
adequately this complex conference. |
|
GATT Library | ry795td3584 | Sub-Comittee on Article 93 (Relations with non-members). Notes on the Ninth Metting. : Held 3 March 1948 at 10.30 a.m | United Nations Conference on Trade and Employment, March 3, 1948 | Sixth Committee: Organization | 03/03/1948 | official documents | E/CONF.2/C.6/W.124 and E/CONF. 2/C. 6/W. 119-126 C. 6/J/WHITE PAPERS | https://exhibits.stanford.edu/gatt/catalog/ry795td3584 | ry795td3584_90200258.xml | GATT_148 | 196 | 1,416 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/W.124
ON DU 3 March 1948
TRADE AND EMPLOMENT COMMERCE ET DE L'EMLOI ORIGINAL: ENGLISH
SIXTH COMMITIEE: ORGANIZATION
SUB-COMITTEE ON ARTICLE 93 (RELATI0NS WITH NON-MEMBERS)
NOTES ON THE NINTE METTING
Held 3 March 1948 at 10.30 a.m.
Chairman: Mr. FORTHOMME (Belgium)
The Sub-Committee approved the report of the Working Party contained
IN DOCUMENT E/CONF.2/C.6/W.122 subject to amending the text of pagraph
and 3 of Article 93 so as to make the second sentence of paragraph 2 and
paragraph 3 into two sub-paragraphs of paragreph 2.
The Sub-Committee then drafted its report to the Sixth Committee.
The representative of Argentina entered a general reservation to the
text recommended pending the receipt of instructions from his government.
In addition to the interpretative note which it had already been agreed
to insert in the report and in addition to the other notes which had been
approved for inclusion, the Sub-Committee agreed to the following paragraph:
"In the course of the discussion of paragraphs 1 end 2 the
Sub-Committees agreed that termination of any existing obligations of
Members towards non-Members should be in accordance with the term of
the agreements embodying such obligations." |
GATT Library | jt154sf0899 | Sub-Comittee on chapter VIII (Settlemnt of differences-interpretation). Notes of the Seventeenth Meeting. : Held at 3.00 p.m. Monday, 16 February 1948 | United Nations Conference on Trade and Employment, February 16, 1948 | Sixth Committee: Organization | 16/02/1948 | official documents | E/CONF.2/C.6/W.102 and E/CONF. 2/C. 6/W. 81-118/ADD. 1 | https://exhibits.stanford.edu/gatt/catalog/jt154sf0899 | jt154sf0899_90200228.xml | GATT_148 | 1,770 | 11,515 | United Nations Nations Unies
CONFERENCE CONFERENCE RESTRICTED
ON DU E/CONF.2/C.6/W.102
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 16 February 1948
ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
SUB-COMITTEE ON CHAPTER VIII (SETTLEMNT OF DIFFERENCES - INTERPRETATION)
NOTES OF THE SEVENTEENTH* MEETING
Held at 3.00 p.m. Monday, 16 February 1948
the Sub-Committee continued the discussion of the text proposed by the
Worrking Party in E/CONF.2/C.6/W.80 along with amendments proposed by thë
Delegation of the United States of America in E/CONF.2/C.6/W.91 The
references below are to the text in E/CONF.2/C.6/80 unless otherwise indicate
Article 89, Paragraph 1
Paragraph 1 was approved subject to a declaration by the representatives.
of Australia that his delegation accepted the text on the 'understending that
pareraeph 1 (c) covers the situation represented by a serious decline in
employment and effective defend in any major country. He indicated that he
would shortly submit for the consideration of the Sub-Committee a note to thi
effect to be considered for inclusion ln the Sub-Committeets report.
Paragraph-2
On the suggestion of the representative of Iraq the Sub-Committee agreed
to substiuts the word "matterr" for "question" or "case" in this paragraph
and throughout Articles 90 end 90-A in order to secure conformity with
paragraph 1. The representative of Iraq also requested inclusion in the
report of a note to the effect thet the "matter" to be dealt with through
the procedure of Chapter VIII is the claim of nullification or impairment of .
a benefit and not the action, inaction Measure or situation referred to in
sub-paragraphs (a) (b) or (c) which may be represénted as the cause of the,
nullification or impairment.
Paragraph 3
The Sub-Commuttee accepted thé redraft proposed in E/CONF.2/C,6/.91
with the addition before ".... of any consultation ..." of' "the progress or
outcome at the suggestion of the reoresentative or Australia.
The Sub-Committee agreed to add (a) or (b)" after "Article 89 (1)" in
-------
* This number corrects previous error which occurred in the numbering of
meetings of this Sub-Committe . The Meeting immediately preceding the
pr one is reported in E /CONF.2/C.6/W. 92. /the first
,~~~~~~~~~~~/h . E/CONF.2/C.6/W.102
Page 2
the First line. The representative of the United States withdrew the further
Suggestion for amendment of this sentence suggested in E/CONF.2/C.6/W.91 in
view of the fact that the matter had already been dealt with in the amended
text proposed for Article 92.
Paragraph 2
The Sub-Committee accepted the addition to the second sentence proposed
in E/COF.2/C.6/W.91 together with the delation of "or" in sub-paragraphs((1),
(ii), (iii) and (iv). The Sub-Committee also accepted the suggestion by the
representative of the United States that "satisfactory" should replace
generalal' before "adjusttment" in sub-paragraph (v). At the suggestion of the
representative of Iraq the Sub-Committee agreed to include a note in its
report to the effect that sub-paragraph (v) does not allow the proposal by
the Executive Board of a suspension or withdrawal of a measure not in conflict
with the Charter.
The representative of the United States withdraw the earlier suggestions
by his delegation to add a sub-paragraph (vi).
Paragraph 3 -
At the suggestion of the representative of Iraq the Sub-Committee agreed
to add after "the release of a Member or Members" the word "affected" in this
paragraph and where appropriate, in Article 90-A. With reference to the words
"appropriate and compensatory" in this paragraph and elsewhere in Chapter VIII,
the Sub-Committee agreed to include in its reporte note to the effect that
the word "appropriate` is considered not to empower the Organization to
recommend or authorize measures beyond the limited of compensation.
Paregraph 4
The Sub-Committee agreed to the addition at the and of this paragraph ofl
the worde."it may also consult an appropriate commission of the Organization
on any matter arising under this Chapter".
Paragraph 5
Tbe Sub-Committee approved the text of this paragraph with the change of
the words "question" and "case" to "meater" as in other similar instances.
Article 90-A, Paragraph 1
The Sub-Committee agreed to the sentence proposed. in F/CONF.2/C.6/W.91
for addition following the first sentence with the re-arrangement suggested
by the representative of Mexico.
Paragraph 2 .
With the replacement of "question of nulificetion or impairment" by
"matter arising under this Chapter" this paragraph was approved,
Paragraph 3
With the addition o the word "affected" after "the release of a Member or
Members" the first sentence was approved. -
/Concerning E/CONF.2/C.6/W.102
Page 3
Concerning the second sentence, the representative of Poland expressed
the view that it should be deleted or that the requirement of a two-thirds
majority should be inserted. This proposal was not accepted by the
Sub-Committee. At the enf of the meeting the Sub-Commmittee was considering
the amendments proposed to this sentence in E/CONF.2/C.6/W.91, together with
the suggested addition of "affeoted" after "release of a Member or Members".
The text resulting from the discussion in the Sub-Committeeat this
meeting is attached as an annex to these notes.
/ANNEX TO NOTES E/CONF.2/C.6/W.102
Page 4
ANNEX TO NOTES OF THE MEETING OF SUB-COMMITTEE G OF
THE SIXTH COMMITTEE, HELD 16 FEBRUARY
The following is the text resulting from that meeting. .
CHAPTER VIII SETTLEMENT OF DIFFERENCES - INTERORETATION
Article. 89 :
Consultation and Arbitration
1, If any Member considere thet any bnefîit accruring to it directly or
indirectly, implicitly or explicitly, under any of the provisions of this
Charter other than Article 1, is being nullified or impeired as a result 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 the Charter; or
(c) the existence of eny other situation,
the Member may, with a view to the satisfactory adjustment of the matter,
make written representation or proposals to such other Member or Members as
it considers to be concerned, end the Members receiving them shall give
sympathetic consideration thereto.
2. The Members concerned may submit the matter arising under paregrapb 1
to arbitration upon terms to be agreed between them: provided that the
decision of the arbitrator shall not be binding for eny purpose upon the
Organization or upon any Members other than those participating in the
arbitration.
3. The Members concernd shall inform the Organization generealy of the
progress and outcome of any consultation or arbitration undertaken under thiQi
Charter.
Article 90
Reference to the Executive Board.
1. Any matter arising under Article 89 (1) (a) ôr (b) which is not
satisfactorily settled and any matter which arises under Article 89 (1) (c)
may be referred by any Member concerned to the Executive Board.
2. The Executive Board shall promptly investigate the matter and shall
decide whether any nullification or impairment in fact exists within the
terms of Article 89 (1), It shall then take such of the following steps
as may be appropriate:
(i) decide that the setter does not call for any action;
(ii) recommend further consultation to the Members concerned;
(iii) réfer the matter to arbitration upon such terms as may be agreed
between the Executive Board and the Members concerned;
/(iv) in any matter E/CONF.2/C.6/W.102
Page 5
(iv) in any matter arising under Article 89 (1) (a) request the Member
concerned to take or discontinue such action as may be necessary for
the Member to conform to the provisions of the Charter;
(v) in any matter arising under Article 89 (1) (b) .or (c), propose such
measures to Members as will best assist the Members concerned and
contribute to a satisfactory adjustment.
3. If the Executive Board considered 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 (l) (a) is
sufficiently serious to justify such action, it may recommend the release of
a Member or Members affected 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.
4. The Executive Board may, in the course of this investigation, consult
with such Members or inter-governmental organizations and upon such matters
within the scope of the Charter as it deems appropriate. It may also consult
an appropriate commission of the Organization on any matter arising under this
Chapter.
5. The Executive Board may bring any matter, referred to it under this
Article, before the Conferende at any time during its consideration of the
matter.
Article 90-A
Reference to the Conference
1. Any Member concerned pay, 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. Unless such review has been asked for by a Member
concerned, Members shall be .-'itled to act in accordance with any action,
decision or recommendation of 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 matter rising under this Chapter has been brought before the
Conference by the Executive Board, the Conference shall follow the same
procedure as that set out in Article 90 (2) for tne Executive Board.
3. If the Conference considers that any nullification or impairment found to
exist under Article 89 (1) (a) is sufficiently serious to juatify such action,
it may authorize the release of a Member or Members affected from obligation
or the grant of concessions to any other Member or Members under or pursuent
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 E/CONF.2/C.6/W.102
Page 6
nullified or impaired [The Conference, when considering matters arising
under Article, 89 (1).* (b) or , (c) . may authorize a release of Member or
Members to the extent and upon such conditions as wiIl achieve the objects
set out in Article-,90 (2) (v).
4.. When any Member or Members suspend the performance of any obligation or
grant of any concession to another Member in accordence with paragraph 2, the
latter Member shall then be free not later than 60 days after such action is
taken,to give notice of its wlthdrawal from the Organization. Such
withdrawal shall become effective upon the expiration of 60 days from the day
on which such notice is received by the Director-General.]*
*" The sure brackets indicate that discussion of thé text enclosed therein
had not been completed by the end of the meeting. |
GATT Library | my360df3266 | Sub-Commitee on Article 75 (Composition of the Executive Board : Redraft of paragraph 2 as suggested by the Delegations of France, Peru and the United States | United Nations Conference on Trade and Employment, January 5, 1948 | Sixth Committee: Organization | 05/01/1948 | official documents | E/CONF.2/C.6/W.16 and E/CONF. 2/C. 6/W. 1-40 | https://exhibits.stanford.edu/gatt/catalog/my360df3266 | my360df3266_90200122.xml | GATT_148 | 238 | 1,824 | RESTRICTED
United Nations Nations Unies E/CONF.2/C.6/W.16
CONFERENCE CONFERENCE 5 January 1948 ENGLISH - FRENCH
ON DU ORIGINAL : ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
SIXTH COMMITTEE: ORGANIZATION
SUB-COMMITEE ON ARTICLE 75 (COMPOSITION OF THE EXECUTIVE
BOARD
REDRAFT OF PARAGRAPH 2 AS SUGGESTED BY THE
DELEGATIONS OF FRANCE, PERU AND THE
UNITED STATES
2. In selecting the Members of the Executive Board, the Conforence shall
have regard to the objective of ensuring that the Board includes Members
of chief economic importance, having particular regard to international
trade, and is representative of the divorce typos of economies or different
degrees of economic development existing within the membership of the
Organization. The Executive Board shall be representative of the major
geographical areas included within the membership of tho Organization.
SIXIEME COMMISSTON : ORGANISATION
SOUS-COMMISSION CHARGEE D'ETUDIER L'ARTICLE 75 (COMPOSITION DU
CONSEIL EXECUTIF)
NOUVELLE REDACTION DU PARAGRAPHE 2 PROPOSEE PAR LES
DELEGATIONS DE LA FRANCE, DU PEROU ET
DES ETATS-UNIS
2. Dans le choix des membres du Consoil exécutif, la Conférancu s'attacheru
à ce que le Conseil compte parmi sus membres des Etats d'importance
économique majeure, du point do vue du commerce international particuliè-
rement, et à ce que les différents types d'économie ou les différents
degree de développament économique qui se rencontrent parmi les Etats
membres de l'Organisation y soient représentés. Le Conseil exécutif devra
également être représentatif des principales regions géograhhiques auxquelles
appartiennement las Etats membres de l'Organisation. |
GATT Library | gd285ty5325 | Sub-Commitee on Article 81 (The Tariff Committee) : Note by the Chairman | United Nations Conference on Trade and Employment, February 2, 1948 | Sixth Committee: Organization | 02/02/1948 | official documents | E/CONF.2/C.6/W.83 and E/CONF. 2/C. 6/W. 81-118/ADD. 1 | https://exhibits.stanford.edu/gatt/catalog/gd285ty5325 | gd285ty5325_90200205.xml | GATT_148 | 183 | 1,281 | United Nations Nations Unies
RESTRICTED E/CONF. 2/C. 6/W.83
CONFERENCE CONFERENCE 2 February 1948
ON DU
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL : ENGLISH
SIXTH COMMITTEE: ORGANIZATION
SUB-COMMITEE ON ARTICLE 81 (THE TARIFF COMMITTEE)
Note by the Chairman
1. The Chairman of the Sub-Committee concerned with Article 17 recently
requested me to nominate five members of the Sub-Committee concerned with
Article 81 to constitute a Joint Working Party to discuss matters of
comon interest to both Sub-Committees. It will be recalled that the
possibility of this procedure had been envisaged in the term of reference
of the SubCommttee on Article 81.
2. In response to the request made so me I have nominated the representatives
of Canada, Cuba, Czechoslovakia, the Netherlands and the United Kingdom
to represent the Sub-Committee on Article 81 on the Joint Working Party.
ln view of pressure of work to which delegations are subject and the already
crowded progrtae of meetings, I considered that representatives would agree
with me that a meeting of the Sub-Committee to discuss this matter would
be a formality which could be dispensed with. |
GATT Library | kt411cs7867 | Sub-Committee 2 on Economic Development and Reconstruction | Interim Commission for the International Trade Organization, August 27, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 27/08/1948 | official documents | ICITO/EC.2/SC.2/1, 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/kt411cs7867 | kt411cs7867_90180084.xml | GATT_148 | 111 | 825 | INTERIM COMMISSION
FOR THE INTERNATIONAL
TRADE ORGANIZATION
COMMISSION INTERIMAIRE DE
L'ORGANISATION
DU COMMERCE
INTERNATIONALE
RESTRICTED
LIMITED C
ICITO/EC .2/SC .2/1
27 August 1948
Executive Committee
Second Session
and Reconstruction
Chairman:
Members:
Sir Raghavan Pillai (India)
Australia
Brazil
China
Egypt
France
India
Mexico
Philippines
United Kingdom
United States
Terms of Reference:
On the basis of the Interim Report submitted
by the Secretariat and the views expressed in the
Executive Committee , to make recommendations as a
basis for the eventual report of the Executive
Committee in accordance with the Resolution
Relating to Economic Development and Reconstruction
adopted at the United Nations Conference on Trade
and Employment at Havana.
Sir Raghavan Pillai (India) |
GATT Library | mc287zt6709 | Sub-Committee 2 on Economic Development and Reconstruction : Draft Annotated Agenda | 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/SC.2/2, 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/mc287zt6709 | mc287zt6709_90180085.xml | GATT_148 | 883 | 6,041 | INTERIM COMMISSION COMMISSION INTERIMAIRE RESTRICTED
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE ICITO/EC.2/SC.2/2
TRADE ORGANIZATION DU COMMERCE 31 August 1948
ORIGINAL: ENGLISH
EXCUTIVE COMMITTEE
Second Session
SUB-COMMITTEE 2 ON ECONOMIC DEVELOPMENT
AND RECONSTRUCTION
Draft Annotated Agenda
1. Powers, responsibilities and activities of inter-
governmental organizations (paragraph 1 (i) of Havana
Resolution).
An exhaustive survey of the technical
assistance available in the United Nations
and the Specialized Agencies was prepared
for the Second Session of the Sub-Commission
on Economic Development of the Economic and
Social Council and has been circulated as
Annex C to the Interim Report. Additional
information will be found in particular in
the Summary Records of the 34th thru the
37th meetings of the Sub-Commission (part
of Annex E). The Report of the Second
Session of the Sub-Commission (Annex G) is
also highly relevant.
N.B. A list of documents available is attached as an
appendix. This shows the symbols under which the Interim
Report and the Supplement thereto and the annexes have
been issued. ICITO/EC.2/SC.2/2
page 2
Information regarding economic development and
reconstruction activities of the International Bank
(Annex J), regional commissions of the Economic and
Social Council (Annexes J. K.and O), trust and non-
self-governing territories (Annex L), inter-American
organizations (Annex M), the Caribbean Commission
(Annex N) is to be found in the Annexes indicated.
2. Availability of facilities for technical surveys or
studies (paragraph 1 (ii) of the Havana Resolution).
As regards inter-governmental organizations
see documents listed-under item 1 of the agenda
listed above.
No information is provided as regards the
facilities of governments but it is suggested in
paragraph 5 of the interim Report that the Executive
Committee may wish to ask Governments Members of the
Interim Commission to provide such information.
Paragraphs 5 to 7 of the Interim Report and
paragraphs 1 to 7 of the supplement to the Interim
Report provide some preliminary information regarding
facilities of private organizations and it is
suggested in paragraph 5 of the Interim Report and
paragraph 7 of the supplement that further information
should be obtained and that the Executive Committee
may wish to ask Governments Members of the Interim
Commission to provide such additional information
as regards facilities in their respective countries. ICITO/EC.2/SC.2/2
page 3
3. Policy of the ITO and particular activities to be
undertaken by the ITO (or on behalf of or in collaboration
with ITO by other agencies).
See paragraphs 12 to 17 inclusive of the Interim
Report and paragraphs 8 to 11 inclusive of the
supplement.
It appears essential that at least provisional
conclusions be reached as regards policy, particular
activities and finance, as otherwise no fruitful and
concrete discussion can take place regarding items
4 and 5 of the agenda.
4. Structure and administrative methods of the ITO .
5. Working relations of the ITO with other inter-governmental
organizations.
6. Arrangements for future work of the Interim Commission. ICITO/EC.2/SC.2/2
page 4
APPENDIX
LIST OF DOCUMENTS AND ANNEXES
The Interim Report 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 sane time as
ICITO/EC.2/7
On 20 August ICITO/EC.2/7/Add.1 was issued
indicating the distribution of Annex O.
On 23 August the
supplement to the Interim Report (ICITO/EC.2/7/Add.2) was
issued together with Annex P.
The following is a list of all the Annexes:
Annex A:
Report of the First Session of the Sub-Commission
on Economic Development (E/CN.1/47)
Annex B:
Report of the Third Session of the Economic
and Employment Commission (E/790)
Annex C:
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)
Annex D:
Technical Assistance rendered to Venezuela by
the United Nations (E/CN.1/Sub.3/W.4). ICITO/EC.2/SC.2/2
page 5
Annex E:
Summary Records of the Second Session of the
Sub-Commission on Economic Development
(E/CN.1/Sub.3/SR.27 to 48 inclusive).
Annex F:
Note by the Secretariat on Technical Assistance
Provided by UNRRA.
Annex G:
Report of the Second Session of the Sub-
Commission on Economic Development (E/CN.1/61).
Annex H:
Note by the Secretariat on the Activities
of the International Bank for Reconstruction
and Development.
Annex J:
Annex K:
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).
Annex L:
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. ICITO/EC.2/SC.2/2
page 6
Annex M:
Annex N:
Annex O:
Annex P:
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 other Forms of Assistance
Available to Persons in Countries Other Than
Their Own". |
GATT Library | xq042wq6330 | Sub-Committee 3 on Administration | Interim Commission for the International Trade Organization, August 31, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) | 31/08/1948 | official documents | ICITO/EC.2/SC.3/1 and ICITO/EC.2/SC.3/1-9 | https://exhibits.stanford.edu/gatt/catalog/xq042wq6330 | xq042wq6330_90180086.xml | GATT_148 | 187 | 1,266 | INTERIM COMMISSION COMMISSION INTERIMAIRE DE LIMITED C
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE ICITO/EC.2/SC.3/1
TRADE ORGANIZATION DU COMMERCE
ORIGINAL: ENGLISH
Sub-Committee 3 on Administration
The Chairman has designated the following as members
of the Working Party on the International Customs Tariff
Bureau. The representatives of:
Benelux
Brazil
Canada
United States (Chairman)
The Working Party is (1) to examine and make re-
commendations to the Sub-Committee regarding possible
arrangements between the ITO and the Bureau on the basis
initially of alternative (c) in paragraph 3 of Article 87
but bearing in mind the possibility of the subsequent
modification of this arrangement on the lines of alternative
(b); (2) to consider to what extent, if any, it would
be appropriate and possible for the Executive Committee
to assist the Belgian Government in meeting its present
difficulties regarding the administration of the Bureau,
and (3) to consult with the Director of the Bureau in its
consideration of the matters referred to in (1) and (2)
above.
The Chairman suggests that in view of the smallness
of the Working Party, its meetings should be held at the
mutual convenience of its members. |
GATT Library | gd849dn5007 | Sub-Committee 3 on Administration | Interim Commission for the International Trade Organization, September 2, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 02/09/1948 | official documents | ICITO/EC.2/SC.3/3 and ICITO/EC.2/SC.3/1-9 | https://exhibits.stanford.edu/gatt/catalog/gd849dn5007 | gd849dn5007_90180088.xml | GATT_148 | 518 | 3,586 | RESTRICTED
LIMITED C
INTERIM COMMISSION COMMISSION INTERIMAIRE DE ICITO/EC. 2/SC. 3/3
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE 2 September 1948
TRADE ORGANIZATION
DU COMMERCE
ORIGINAL : ENGLISH
Executive Committee
Second Session
Sub-Committee 3 on Administration
The following has been received from the Executive Officer
of the Department of Administrative and Financial Services:
" 31st August, 1948
Dear Mr. Wyndham White,
An analysis of the comptrollers' account has
recently been completed as a result of which figures are
now available for obligations and expenditures actually
incurred in connection with the International Conference
on Trade and Employment and meetings of the Preparatory
Committee. The picture of the amount advanced from
the Working Capital Fund for these purposes has there-
fore changed somewhat from that shown in Annex B of
document ICITO/EC.2/4 and you may wish to inform your
Executive Committee accordingly. The current position
with respect to advances made by the United Nations in
connection with sessions of the Preparatory Committee
and the Conference in Havana is as follows:-
Advances
Authorized
Obligations
and Expenditures
Incurred.
Drafting Committee $ 9,429.98
$ 9,429.98
Direct costs of
session of the
Preparatory
Committee held at
Geneva.
(a) Headquarters
(b) Geneva.
Shared conference
costs attributable
to Preparatory
Committee of the
International Con-
ference on Trade
and Employment
Conference of the
International Con-
ference on Trade and
Employment in Havana
103,514.24
103,261.10
563,067.75
175,875.00
99,658.42
(1)
511,628. 55
(2)
151,798.71
(3)
$ 955,148.07 $ 775,515.66
TOTAL : ICITO/EC. 2/SC. 3/3
page 2
(1) The costs incurred in Geneva - $ 103,261.10 - are
included in the total of $ 511,628.55 for Shared
Conference Costs. The costs incurred at Head-
quarters include travel of staff, telegraph and
cable services, freight and cartage.
(2) The amount of $ 511,628.55 covers all the costs
incurred in Geneva in connection with the session
of the Preparatory Committee in 1947. It covers
the costs of services, facilities, etc., actually
furnished to the Committee by the United Nations.
(3) Based on agreement reached regarding distribution
of the expenses of the Conference as between
amounts chargeable to the Cuban Government in
accordance with the agreement with that Government,
and amounts chargeable to the Working Capital
Fund advance of the Conference.
The amount of $ 955,148.07 shown in the first column
represents the amounts which were authorized for these
various meetings. (It will be noted that the figure varies
slightly from the one previously used - namely $ 954,830).
The total of the second column, $ 775,515.66, represents
the expense now established as actually incurred (other
than expenditures amounting to $ 557,114, which were borne
on the United Nations budget for 1946 and 1947). Although
there may be minor adjustments for a few unliquidated obliga-
tions, the former figure can be taken as representing the
total advances made from the Working Capital Fund for which
reimbursement is sought.
I am furnishing you this information at the request of
the Assistant Secretary-General in Charge of Administrative
and Financial Services, in order that you may transmit it to
the Executive Committee at its current session.
(Signed) B.R. Turner
Executive Officer
Department of Administrative and
Financial Services " |
GATT Library | gj583vw8879 | Sub-Committee 3 on Administration : Item 4(e) of the Agenda - Relations with other intergovernmental organizations | Interim Commission for the International Trade Organization, September 1, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 01/09/1948 | official documents | ICITO/EC.2/SC.3/2 and ICITO/EC.2/SC.3/1-9 | https://exhibits.stanford.edu/gatt/catalog/gj583vw8879 | gj583vw8879_90180087.xml | GATT_148 | 694 | 4,540 | INTERIM COMMISSION COMMISSION INTERIMAIRE DE LIMITED C
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE ICITO/EC .2/SC .3/2
TRADE ORGANIZATION DU COMMERCE 1 September 1948
ORIGINAL: ENGLISH
Executive Committee
Second Session
Sub-committee 3 on Administration
Item 4(e) of the Agenda - Relations with other
intergovernmental organizations
ICAO
With reference to paragraph II (c) of the Report by
the Executive Secretary on the work of the Secretariat
(ICITO/EC.5) and in accordance with the decision of the
Executive Committee, there is now circulated for the con-
sideration of Sub-Committee 3 on Administration the
following draft for an exchange of letters between the ITO
and the ICAO. This draft has been the subject of consul-
tation between the Secretariats of the ICITO and the ICAO.
"1. In the first instance, and subject to reconsidera-
tion in the light of experience, it should not be
necessary for ITO and ICAO to enter into a formal
agreement of relationships, it being understood
that the two organizations will afford to each
other the right to be represented at the annual
conferences as well as at any other meetings
likely to be of common interest, 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 under-
standing on the points set out in 2.
2. Articles 33, 36, and 53 of the Havana Charter are
of interest to ICAO: ICITO/EC .2/SC .3/2
page 2
(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 administra-
tion of customs 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 conse-
quent necessity for special procedures if the
full benefits of speed of flight are to be
gained. The "facilitation program" of ICAO in
implementation of Articles 22 and 23 of the
International Civil Aviation Convention is there-
fore not in conflict with the general objectives
of the ITO as described in Articles 33 and 36.
The work of ITO and ICAO complement and reinforce
each other. ITO will request ICAO's participa-
tion in the preparation of recommendations on
customs formalities insofar as these relate to
the carriage of goods by air and it will also
take into account the work of ICAO in this field
when drawing up its recommendations. ICAO will
likewise request ITO's participation in the ICITO/EC.2/SC.3/2
page 3
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 recommenda-
tions 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
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 investigation of the matter by ICAO.
3. Articles of the Havana Charter other than those
cited above may raise problems of common interest,
although those cannot at present be foreseen.
ITO will consult with ICAO if such problems should
arise. Likewise, 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. |
GATT Library | hs644qk5235 | Sub-Committee 3 on Administration : Relations between ITO and IMF | Interim Commission for the International Trade Organization, September 4, 1948 | Interim Commission for the International Trade Organization (ICITO/GATT) and Executive Committee | 04/09/1948 | official documents | ICITO/EC.2/SC.3/6 and ICITO/EC.2/SC.3/1-9 | https://exhibits.stanford.edu/gatt/catalog/hs644qk5235 | hs644qk5235_90180092.xml | GATT_148 | 1,163 | 7,696 | LIMITED C
INTERIM COMMISSION COMMISSION INTERIMAIRE DE
ICITO/EC .2/SC .3/6
FOR THE INTERNATIONAL L'ORGANISATION INTERNATIONALE 4 September 1948
TRADE ORGANIZATION DU COMMERCE ORIGINAL: ENGLISH
Executive Committee
Second Session
Sub-Committee 3 on Administration
Relations between ITO and IMF
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 accord-
ance with the terms thereof. The Fund and the ITO will
pursue a coordinated policy with regard to exchange
questions within the jurisdicition of the Fund and questions
of quantitative restrictions and. other trade measures
within the jurisdiction of the ITO . In order to give
effect to such coordinated policy the Fund and the ITO agree
to 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 matters of common concern, and in particular, on
the matters specifically referred to in the Havana Charter.
2. Either organization may initiate a consultation with ICITO/EC . 2/SC .3/6
page 2
the other by giving notice therof to the other organization
and supplying the other organization either at that time
or as soon thereafter as possible with all necessary
information.
3. Unless otherwise provided for by the two organizations,
the time and place of each consultationshall be agreed
between the two organizations, and such 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 agrement, or any other equally urgent matter, the
two organizations undertake to give high priority to the
commencement and conclusion, of thie consultation. In the
final stage of any consultation, the respective
organizations shall each be represened by persons
authorized to express the conclusions of the organizations
they represent.
4. 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 wirting.
5. In pursuance of Artricle 24 of the Havavana Charter, the
Organizational shall consult the Fund on t he preparation and
conclusion of a special exchange agreement between the
Organizational and a Member who is not memeber of the Fund,
and the Fund shall advise and consult with the Organization
on all questions arisiug out of the operation of such an
Agreement. ICITO/EC.2/SC.3/6
page 3
ARTICLE III
Annual Reports on discriminatory
Quantitative Restructions
The Fund shall assist and advise the ITO in the
preparation by it of the reports referred to in the first
sentence of 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 Agreemenl of the Fund.
ARTICLE IV
. Customs Va1uation
In accordance with Article 35 of the Havana Charter,
the Fund and the ITO will formulate rules governing the
conversion by Members of currencies of countries which
Maintain multiple ratos of exchange consistently with the
Articles of Agreement of the Fund or with special exchange
aggreements, 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 organizztions
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. Represantatives of the ITO may attendd, and participate
without vote in, meetings of the Bord of Governors of the
Fund.
3. Appropriete arrangements shall be made by agreement
from time to the for the reciprocal . representation of the
two, organizations at other meetings convened under their asspices which consider matters in which the other
orgarnizations has an interest.
The ITO and the Fund shall administrative
arrangements to achieve close collaboration, and liaison
between the staffs of the two organizations . Each
organization will establish administrative machinary as may
be necessary to . the liaison, a s provided for in this
agree ment , effective.
ARTICLE VI
Each organization undertakes not to present any formal
recomendation to the other, particularly under Particle 77,
paragraph 5, or ArtiCle 81. paragraph2, of the Charter
without reason able prior consultation with regard thereto,
unless tje recommendation is made in response to a request
from the organization to which it is directed.
ARTICLE VII
Exchange of Information and Statistical services
The IT0 and the Fund will, 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 requests subject to the
necessary limitations of safeguarding. confidental material;
provided, however, that City such limitation shall not be
such as to Crustrate or impai r the, effective discharge o f
the functions of the Fund in accordance with Article 24 of
the Charter and this Agreement.
2. In the interests of efficiency and for the purpose of
reducing the burden on national governments and other
organizations, the ITO and the Fund agree to co-operate in
eIiminating unnecessary duplication. in the collection, ~ ~~~~~~~~ICITO/EC. 2/SC .3/6
page 5
analysi publication and 3ds4ssemination3Cof:iatlFa lo st{tistical
n.= a 0 Ls i...
ARTICLE VIII Miscellaneous
1.e Anyaaea.:emgits m eaffor giving effect to the
provisions of this .Agreement consultation andAtin to o
formation Ib :t::"or:^: e shaar pay dtn regtdd to 'he neeR
to saential eoinformation l oriclttoand to thr special
Obl4;Airtsp in this 'e@TOct oe theeI'' uanar tho ifavema
Charter*
2. The chief adninistrative officers of the Fund and ITO
shall make such supplemetart arrangements as are necessary
of proper to carry fully into effect the provisions of this
Agreement. 3. This Agreement shall be subject to revision by
agreement between ITO and the Fund from the date of its
entry into force.
4. This Agreement may be Terminated by either party there-
to on six months written notice to the other party, and
thereupon, unless otherwise agreed, all rights and
obligaions of both parties hereunder shall cease.
5. This Agreement shall come into force.: when it stall
have pooz: ab.rovhe - m ete, cowptont euthoritcs Tf the I'O
and Fund.
Addendum
Insert the folowing. , nalditiocml paragraphe6 at tho end
of Article II:
flse pofpoaos s coonultaticT-,athe IO Fnd the ~und
may establish Jminteesmconsisting of l1 soof per0'ns
designa-ed by enization.alzattm, mb nuixer to be
desinfated by each being decided by agreeween bet-wee
the organizations." |
GATT Library | dz334sw0741 | Sub-Committee A (Articles 16, 17, 18, 19) | United Nations Conference on Trade and Employment, January 23, 1948 | Third Committee: Commercial Policy | 23/01/1948 | official documents | E/CONF.2/C.3/A/W.40, E/CONF.2/C.3/A/W.40-55, and C.3/A/WHITE PAPERS | https://exhibits.stanford.edu/gatt/catalog/dz334sw0741 | dz334sw0741_90190468.xml | GATT_148 | 210 | 1,520 | United Nations Nations Unies
CONFERENCE CONFERENCE RESTRICTED
E/CONF. 2/C.3/A/
ON DU W. 40
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 23 January 1948 ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE A (ARTICLES 16, 17, 18, 19)
Amendment to text of Article 17 recommended in Working Party Report
(Suggested by the delegation of the United Kingdom)
"`2. (e) [Prior international obligations shall not be permitted to
stand in the way of negotiations with respect to preference]s
?or international obligations shall not be invoked to frustrate
the. requirement under Paraaha ph1 of this Article to negotiate
with respect to rpreference, 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."
Add the following interpretative note to paragraph 1:
"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." |
GATT Library | sp227cd6812 | Sub-Committee A. Corrigendum to summary record of Seventeenth Meeting | United Nations Conference on Trade and Employment, January 2, 1948 | Fourth Committee: Restrictive Business Practices | 02/01/1948 | official documents | E/CONF.2/C.4/A/W.6/Corr.1, E/CONF. 2/C. 4/A/1-21, C. 4/A/W/1-9, and C. 4/A/WHITE PAPERS | https://exhibits.stanford.edu/gatt/catalog/sp227cd6812 | sp227cd6812_90200029.xml | GATT_148 | 102 | 739 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
RESTRICTED
E/CONF.2/C. 4/A/W.6/
Corr.1
2 January 1948
ENGLISH-FRENCH
ORIGINAL:ENGLISH
FOURTH COMMITTEE: RESTRICTIVE BUSINESS PRACTICE
SUB-COMMITTEE A
CORRIGENDUM TO SUMMARY RECORD OF SEVENTEENTH MEETING
The date and time of this meeting should be changed to read:
30 December 1947 at 4.00 p.m.
QUATRIEME COMMISSION: PRATIQUES COMMERCIALES RESTRICTIVES
SOUS-COMMUSSION A
CORRIGENDUM AU COMPTE RENDU ANALYTIQUE DE LA DIX-SEPTIEME SEANCE
Remplacer les indications concernant la date et l'heure auxquelles
a eu lieu cette séance par les suivantes:
tenue au Capitole, La Havane, Cuba, le 30 décembre 1947 à 16 heures. |
GATT Library | nz387hs0964 | Sub-Committee A. Draft agenda prepared by the Secretariat for the Twenty-First Meeting. : To be Held, 3 January 1948, at 10.30 a.m | United Nations Conference on Trade and Employment, January 3, 1948 | Fourth Committee: Restrictive Business Practices | 03/01/1948 | official documents | E/CONF.2/C.4/A/19, E/CONF. 2/C. 4/A/1-21, C. 4/A/W/1-9, and C. 4/A/WHITE PAPERS | https://exhibits.stanford.edu/gatt/catalog/nz387hs0964 | nz387hs0964_90200019.xml | GATT_148 | 272 | 1,985 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.4/A/19
ON DU 3 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
FOURTH COMMITTEE: RESTRICTIVE BUSINESS PRACTICES
SUB-COMMITTEE A
DRAFT AGENDA PREPARED BY THE SECRETARIAT FOR THE TWENTY-FIRST MEETING
To be Held, 3 January 1948, at 10.30 a.m.
1. The draft to be submitted by the Ad Hoc Committee in relation to
Article 51.
2. The new draft to be proposed by the Ad Hoc Committee in respect to the
words "described in paragraph 1 of Article 44", in paragraph 2 of
Article 45.
3. The new draft of paragraph 1 (f) of Article 50, proposed by the Ad Hoc
Committee:
"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 1 of
Article 44. Such practices shall be dealt with in accordance wth
the following paragraphs of this Article".
4. The amendment proposed by the delegation of Mexico for the addition of
a new sub-paragraph (d) to paragraph 1, Article 51 (No. 60 of
E/CONF.2/C.4/4) as follows:
"(d) Governmental measures connected with the provision referred
to in the previous Article".
5. The new draft of paragraph 2 of Article 45 to be submitted by the Ad Hoc
Committee pursuant to the remarks presented to the Sub-Committee, in
respect of the words "in paragraph 1 of Article 44" and the words
"whether engaged in by private or public enterprises". |
GATT Library | ks862sk0605 | Sub-Committee A. Draft agenda prepared by the Secretariat for the Twenty-First Meeting. : To be Held, 5 January 1948, at 10.30 a.m | United Nations Conference on Trade and Employment, January 3, 1948 | Fourth Committee: Restrictive Business Practices | 03/01/1948 | official documents | E/CONF.2/C.4/A/19/Rev.1, E/CONF. 2/C. 4/A/1-21, C. 4/A/W/1-9, and C. 4/A/WHITE PAPERS | https://exhibits.stanford.edu/gatt/catalog/ks862sk0605 | ks862sk0605_90200020.xml | GATT_148 | 272 | 2,038 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE 3 January 1948
ON DU E/CONF.2/C.4/A/19/Rev.1
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
ORIGINAL: ENGLISH
FOURTH COMMITTEE: RESTRICTIVE BUSINESS PRACTICES
SUB-COMMITTEE A
DRAFT AGENDA PREPARED BY THE SECRETARIAT FOR THE TWENTY-FIRST MEETING
To be Held, 5 January 1948, at 10.30 a.m.
1. The draft to be submitted by the Ad Hoc Committee ln relation to
Article 51.
2. The new draft to be proposed by the Ad Hoc Committee in respect to the
words "described in paragraph 1 of Article 44", in paragraph 2 of
Article 45.
3. The new draft of paragraph 1 (f) of Article 50, proposed by the Ad. Hoc
Committees:
"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 effect similar to those described. in paragraph 1 of
Article 44. Such practices shall be dealt with in accordance with
the following paragraphs of this Article".
4. The amendment proposed. by the delegation of Mexico for the addition of
a new sub-paragraph (d) to paragraph 1, Article 51 (No. 60 of
E/CONF.2/C.4/4) as follows:
"(d) Governmental measures connected with the provision referred
to in the previous Article".
5. The new draft of paragraph 2 of Article 45 to be submitted by the Ad Hoc
Committee pursuant to the remarks presented to the Sub-Committee, in
respect of the words "in paragraph 1 of Article 44" and the words
"whether engaged in by private or public enterprises". |
GATT Library | nw405ty2327 | Sub-Committee A. Draft agenda prepared by the Secretariat for the Twenty-Second Meeting. : To be Held, 6 January 1948, at 3 p.m | United Nations Conference on Trade and Employment, January 5, 1948 | Fourth Committee: Restrictive Business Practices | 05/01/1948 | official documents | E/CONF.2/C.4/A/20, E/CONF. 2/C. 4/A/1-21, C. 4/A/W/1-9, and C. 4/A/WHITE PAPERS | https://exhibits.stanford.edu/gatt/catalog/nw405ty2327 | nw405ty2327_90200021.xml | GATT_148 | 193 | 1,221 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E/CONF.2/C.4/A/20
5 January 1948
ENGLISH - FRENCH
ORIGINAL: ENGLISH
FOURTH COMMITTEE: RESTRICTIVE BUSINESS PRACTICES
SUB-COMMITTEE A
DRAFT AGENDA PREPARED BY THE SECRETARIAT FOR THE TWENTY-SECOND MEETING
To be Held, 6 January 1948, at 3 p.m.
1. The draft to be submitted by the Ad Hoc Committee in
relation to Article 51.
2. The final view of the delegation of Mexico concerning the
revised draft of paragraph 1 (f) of Article 50.
3. The new draft of sub-paragraph (g), paragraph 3 of Article 44,
to be presented by the delegation of the United States.
QUATRIEME COMMISSION : PRATIQUES COMMERCIALES RESTRICTIVES
SOUS-COMMISSION A
PROJECT D'ORDRE DU JOUR PREPARE PAR LE SECRETARIAT POUR LA
VINGT-DEUXIEME SEANCE
qui aura lieu la 6 janvier 1948, à 15 heures
1. Projet se rapportant à l'article 51 qui sera présenté par le
Comité ad hoc.
2. Point de vue explicatif do la délégation du Moxique concernant
le texte revisé du paragraphe 1 (f) do l'article 50.
3. Nouveau projet d'alinéa (g), paragraphe 3 de l'article 44, qui
sora présenté par la délégation des Etats-Unis. |
GATT Library | ny140df6456 | Sub-Committee A. Draft agenda prepared by the Secretariat for the Twenty-Second Meeting. : To be Held 8 January 1948 at 5.45 p.m | 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/A/21, E/CONF. 2/C. 4/A/1-21, C. 4/A/W/1-9, and C. 4/A/WHITE PAPERS | https://exhibits.stanford.edu/gatt/catalog/ny140df6456 | ny140df6456_90200022.xml | GATT_148 | 182 | 1,473 | United Nations Nations Unies UNRESTRICTED E/CONF.2/C.4/A/21
CONFERENCE CONFERENCE 8 January 1948
ON DU ENGLISH - FRENCH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
FOURTH COMMITTEE: RESTRICTIVE BUSINESS PRACTICES
SUB-COMMITTEE A
DRAFT AGENDA PREPARED BY THE SECRETARIAT
FOR THE TWENTY-SECOND MEETING
To be Held 8 January 1948 at 5.45 p.m.
1. The reconsideration of paragraph 2, sub-paragraph (b) (ii) of Article 51.
2. Reconsideration of the note to be inserted in the report of the
Sub-Committee in relation to Article 50, in regard to the words "long term
international lending".
3. Consideration of the Report of tho Sub-Committee to the Fourth Committee.
QUATRIEME COMMISSION: PRATIQUES COMMERCIALES RESTRICTIVES
SOUS-COMMISSION A
PROJET D'ORDRE DU JOUR PREPARE PAR LE SECRETARIAT
POUR LA VINGT-DEUXIEME SEANCE
qui se tiendra le 8 janvier 1948 à 17 heures 45.
1. Réexamen du paragraphe 2, sous-alinéa b) (ii) d.e l'article 51.
2. Réexamen de la note à joindre au rapport de la Sous-Commission en ce
qui concerne l'article 50 et relative à l'expression "prêts internationaux
à long terme".
3. Exemen du rapport de la Sous-Commission à la Quatrième Commission. |
GATT Library | xj981wr0582 | Sub-Committee A. Summary record of the Twenty-First Meeting. : Held at the Capitol, Havane, Cuba, on 5 January 1948 et 10.30 a.m | United Nations Conference on Trade and Employment, January 5, 1948 | Fourth Committee: Restrictive Business Practices | 05/01/1948 | official documents | E/CONF.2/C.4/A/W.9, E/CONF. 2/C. 4/A/1-21, C. 4/A/W/1-9, and C. 4/A/WHITE PAPERS | https://exhibits.stanford.edu/gatt/catalog/xj981wr0582 | xj981wr0582_90200032.xml | GATT_148 | 8,635 | 56,994 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF. 2/C.4/A/W. 9
CONFERENCE CONFERENCE 5 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMLOI ORIGINAL: ENGLISH
FOURTH COMMITTE: RESTRICTIVE BUSINESS PRACTICES
SUB-COMMITTEE A
SUMMARY RECORD OF THE TWENTY-FIRST MEETING
Held at the Capitol, Havane, Cuba, on 5 January 1948 et 10.30 a.m.
The amendments proposed by the delegation of Norway ln connection with
Article 45 A (document E/CONF.2/C.4/4/Add.2) were accepted by the Sub-
Committee, except for the amendment proposed for paragraph 2 which was
withdrawn by the representative for Norway.
The new draft of paragraph 1 of Article 50, proposed by the Ad Hoc
Committee was amended, end provisionally accepted by the Sub-Committee in
the following form:
"The Members recognize that certain services such as transportation,
telecommunications, insurance and the commercial service of banks
[banking] are substantial elements of international trade end 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 1 of Article 44. Such
practices shall be dealt with only in accordance with the following
paragraphs. "
The delegates of Mexico, Norway end India pointed out that the
provisional acceptance of this draft did not commit them in any way end
considered themselves et liberty to introduce further modifications in the
future if they thought these necessary.
The Sub-Committee accepted the following changes in the text of
Chapter V:
Article 44
1. Paragraph 3 (c) in the French text was amended so that the word
"particulieres" was changed to the word determineses.
2. Article 44 Paragraph 4 (a) was approved as follows:
"Agencies of Governments in so fer as they are engaged in Trade".
3. Artice 45 A paragraph 2 was approved to read as follows:
"The Organization shall prescribe the minimum information
to be included in complaints. The information shall give substantial
/indication E /CONF 2/C 4/A/W. 9
Page 2
indication of the nature and. harmful effect of the practices.
4. Article 47 A paragraph 6. The word "inform" was substituted for
the word "notify".
5. Article 50. A new heading was adopted to read as follows:
"Special procedures with respect to Services."
The amendment proposed by the delegation of Mexico for the addition
of a new sub-paragraph to read:
"Governmental mesures connected with the provision referred
to in the previous Article"
was withdrawn. The Argentino dalegation favocrs the deletion of Article 50 of
Chaptar V of the Draft Charter This sasulants is based on the
following corsiderations
The Argantion Republic conders it to its economice-
soxial development that ossentdal police
Argentna people, aim it is with
of there services that it has of this
kind such as and telephene services, in some cases providing
for the partioipation interedts in the operation of such
legielation lay down that certain services, namely, the posts and
telegraphs, shall be oparated by the mardon.
Moreover, the Argentine Government, in teh belief that monotary
policy cannot be saparated from oconoide policy nad that there is
maninous agreemkent that monetary policy should be govarned by
principles basel on the economic interests of the action, which are
general of the
a new economic and financial regime. Argentina's purgoes in
establiahing thsi new economic adn financial regime has been to promots
rational development of national productive capacity in all fields,
permitting economic expansion through the fulloct utillization of natural
and human resources, and to provide for general well-being, industrial
development, the spceialiation and improvesent of agriculture and
cattle-raising, the inerease of population and a ny otehr action which
would tand to increase the national wealth.
The eterting point of this new policy was the nationalization of
the Central Bank, which was supplemented by the of a new
beuk depoalt system hat has mee it possible to give all depositors
a State guarantee of the inviclability of the funts they to
the banks; in effect, this measure also meant the natiozalisation of
banking services provided by undertakinge backed by privats capital.
/As a part
1783 ss a part of this new economic and financial
relating to the insurence business two also taken. with the
ostablishment of the Argentine Enetituts or Poino to integrated
our economic legisiation on insurance, to create a real
insurance market or conter in Argentinem capable of achieving the
stability and the power of abarbing iCrri which the country to
entitled to expect in view of the extant end rature of its general
economic development.
The above condierations fully explain in the importance attached
by country to the cervfees to in Article 50 of the Draft
Charter now under consideration which are intimately and
indissolubly associated with the stats itself.
Because these services are time identified with the State itself,
we consider that Article 50, which in our view abould be deleted, is
inqa tible with the constitutionla principles and the economic-
financial legialation of our country and ingaire the principle of
self-deternination and sovereigaty of our
that activities which in Argentina are curried out by the State,
should be subject tjo mansures to be alopted by international
organizations, in mxcOoOo with paragraph 3 of Article 50.
The ArgtU delegation considere the Z3ràvrt it it putting
forward to be of sume vital importance to Argentime economy that
should Article 50 not be deleted, it will be chliged to make wide
Our positionin tide reapect in definite and final. ARTICLE 51
INTERFRETATION AND DEFINITION
1. The provisions of this Chapter shall be construed With due regard for
the rights and obligations of Members set forth elsewhere in this Charter
and shall not therofore be so interpreted 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
recommendations to Members or to any appropriate inter-Governmental
organization ccncering any features of these measures which may have the
effect described in paragraph 1 of Article 44..
2. In this Chapter
(a) the term businesss practice" shall not be construed to include
an individual. contract of purchase and sale concluded between two
commercial enterprises as buyer and seller respectively, provided that
such contract is not used to restrain competition, limit access to
markets or foster monopolist' c control;
(b) the term "public commercial enterprises" means
(i) agencies of governments insofar as they are engaged. in
trade, and
(ii) trading enterprises mainly oi holly owned by public
authority and over which there is eff active control b
public authority, including .control of engagement in
practicee listed in paragraph 3 of Article 44;
(c) the term "private commercial enterprises" means all commercial
enterprises other than public commercial enterprises;
(d) the terms "decide" and "decision" as used in Articles 44, 45-A
(except in paragraphs 3 and 4)and 47
arrivee at or reacdhes a conclusion, and do not the obligations
of Members
.
.
.
.
. .
FOURsH COMMITEE - RESTRICTIVE BUSINESS PRACTICES
SUB-COMMITTEE A
Note by the Sccrotariat
.
The onclosed are the revised texts of Chapter V as approved by
the Sub-Committee, up to 5 January 1948.
.
/ARTICLE 44
.
2651 -2-
e
ARTICLE 44
General Policy Towards Restrictive Business Practices
1. Each Member shall take appropriate measures, [individually or through
the Organization or in both ways] and shall co-operate with the
Organization, to provont on the of private or public commercial
enterprises, business practices affecting international trade
engated in by private or pi ocLC CIpCitJo3)] which restrain
competition, limit access to markets. or .foster monopolistic control,
whenever such practices have harmful effects on the expansion of preduction
o trade and interfere with the achievement of any of the other objetives
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 instane whether
certain pi Cticcs have or are about to have any of the effects deseribed
in paragraph 1 of this Article, the Members agree that complaints regarding
any of the practices listed in paragraph 3 of this Article shall bo
subject to investigation in accordance with the procodure regarding
complaints provided in Articles 45 and 47, whenover
(a) such a complaint is presented to the Organization; and
(b) the practices are engaged in are made effective by one or
more private or public commercial enterprises or by a combination,
agreement or other arrangement between commercial enterprises,
whetehr between private commercial enterprises, between public
commercial enterprises, or between private and public commond
o.rp .mis8CS; and
(c) such commercial enterprises, individually or collectively,
possess effective control of trade [between two ro more] among a
number 0f countries in one or more products.
3. The. practices referred to in aragraph 2 of the Article are the
following;
(a) fixing prices [or] terms [,] or conditions to srerv
with third parties, in the 0purchase, sale orlon o of any t e
(b) excluding enterprises; from any territerial market or field of
business activity, allocating or dividing any tommitorial mambet or
/fiold of business field of business activity, allocating oustomers, or fixing sales
quotas or purchase quotas;
(c) discriminating against particular enterprises;
(d) limiting production or fixing production quotas;
(c) preventing by agreement the development or application of
technology or invention whether patented or unpatented;
(f) extending the use of rights under patents, trado marks or
copyrights granted by any Member, to matters which are determined by
its system of law not to be within the scopo of such grants, or to
product or conditions of production1 use or sale which are similar
determined not to be tho subjects of such grants;
(g) any similar practices which the Organizatlon may fron time to
time decide are restrictive business practices.
4. In this Chapter the text "public commercial entorprises" means
(a) [trading] agencies of government, [and] in so far as they are
engaged in trade and
(b) trading enterprises mainly or wholly owned by public authority
and over which there is effective control by public authority,
including control of ongagement in a practice. listod in paragraph 3
of this Article.
The term private commercial enterprises" means all other
commercial enterprises.
ARTICLE 45
Procedure with respect to Consultations
Any affect. Member which considers that in any particular instance a
impctice exists (whether engaged in by private or public commercial
enterprises) which has or is about to have the effect doscribed in
paragraph 1 of Article 44 may consuit other Members directly request
the Organization to arrange for consultation with particular Members.
a view to reaching mutually satisfactory conclusions. If requested w
the Membor and if it considors such action to be justifiod, the
/Organization shall .
Organization shall arrange for and assist in such consultation. Action under
this Article shall be without prejudice to the procedure provided for in
Article 45-A
ARTICLE 45-A
Procodure with respect to Investigation
[2]. 1. [A complaint may bo presentod in writing to the Organization by]
Any affected Member on its own behalf or [by] any Member on behalf of any
affected person, enterprise or organization within that Member's jurisdiction,
may in accordance with Article 44, paragraphs 2 and 3 present a written
complaint to the Organization 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
Article 44. Provided that in the case of a' complaints against a single
public commercial enterprise acting independently of any other enterprise
such complainte may be presented only by a Member on its own behalf and only
after the Member has resorted to the procedure rurder paraGraph 1 of this
.Article] in Article 45.
[3] 2. The Organization shall prescribe tho minimum information to bo
included in complaints Ethat particular practices exist which have or are
about to have tho effect doscribed in paragraph 1 of Article 14.] The
information shall give substantial indication of the nature and harmful effect
of the practices.
(4) The Organization shall consider cach complaint presented in
accordance vith paragraph t of this Article. If the Oreanization doems
it appropriate it shall request Members concernod to furnish
supplementary information, for example, information from commercial
enterprises within their jarisdicion. After reviewing the relevant
information tho Organization shall decide whether an investigation is
Justified.
(5) 4. If the Organization decides that an investigation is Justified,
it shah notify all Members of the complaint request any Membor to
furnish such additional informatIon relovant to the complaint as the
Organization may deem nocossary, and shall conduct or arrange for
hearings on the complaint. Any Membor, 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 -5-
(6) The Organization shall review all information available and
decide whether the practices in question are as described in
paragraphs 2 and 3 of Article 44, and have had, have or are about to
have the affect deseribed in pragraph 1 of that Article [4]
(7) 5. The Organization shall [nobity] al. Memgers of its decision and
the reason therefore.
(8) If the Organization decides hat in and particular case the
practices complained [of] ar as deseribed in paragraph 2 and 3 of
Article 44 and have had, have o our about to hae the effort deserited
in paragraph I of that Article [44] it shall request and Member
.
recormed to the members conered 1 3 o te C ari7iout
and are as deaeribet in Article av e-je o ev a4Iv required
and are as deseribed in COhave been LvFME required
Complative Member shall have aurther recourse
only in accordes with the provided in Charter VIII or
other relevant provisions of Charter.
[9] 8 Teh Organization may request any member concorned to repor findly
on the remedial action it has taken it any particular case,
[10] 9. As seen as possible after its procedings in loapect of my
complaint under the Article have been provisionally or finally closed,
the Organization shall prepar and ublish a report showing fully the
decisions reached, the reasons there for and any ze.aurce :eoimJneS
to the Members concerned. The Organization shall not, Member so
requestss, disclose confidential information funished by that member,
which if disclosed would substai-., damage the logitimate busines
interests of a commercial enterprise.
[11] 10. The Organization shall report to all Members and make public
remedial action which had been taken by the Members concerted in any
particular case.
,/.TC - 46 -6.
c
ARTICLE 46
studies relating to Restrictive Business practices
1. The Ognïzation is authorized
(a) to conduct studies, either on it. own initiative or at the request
of amy Member or of any organ of the United Nations or of any other
inter-governmerital organization relating to
(i) general aspects of reatrictive business practices affecting
international trade; and
(ii) conventions, laws and procedures concerning, for example,
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 affoecting international trade and
(iii) the registration of restrictive business agreements and
other arrangements affecting international trade; and
(b) to request inrormation from Members in connection with such studies.
2, The Organizatlon is authorized
(a) to make recommendations to Members concerning such conventions,
laws and procedures as are relovant to their obligations under this
Chapter, and
(b) to arrange for conferences of Members to diacuss any- matters
relating to restrictive business practices affecting international
trade.
ARTICLE 47
Obligations of Members
1. Each Member shall take all possible -asuros by legislation or
otherwise, in accordance with its constitution or system of
organization, to ensure withinn its jurisdiction, that private
commercial enterprises do not engage .in practices which hat the effect and
are as described in paragraph 1 of] Article 44, and in addition it shall
/assist tho Organization -7-
assist the Organization in proventing these practices. [ such assistance
to be given in accordance with the Member's systern of law and economic
organization .
2. Each Member shall make adequate arrangements for presenting complaints,
conducting investigation, and preparing information and reports requcsted
by the Organization.
3. Each Member shall furnish tor the Craniizaticn, as promptly and as fully
as possible, such information as is requested by tho 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 tho Organization in conducting an adequate investigation and
which, if disclosed, would substantially damage the logitimate business
interest of a commerciall 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, end 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 Articlc 45;Q. in accordance with
its system of law and economic organization, take in the particular case the
action it considers appropriate having regard to its obligatioas under this
Chapter.
5, Each Member shall report fully any action taken, independently or in
concert with other Members, to comply with requests and carry out
recommendations of the Organization and, when no action has been takon,
inform the Organization of the reasons therefor and discuss the matter further
with the Organization 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 satisfactory conclusions.
ARTICLE 40
Supplementary Enforcement Arrangements
l. Merwz -operato with each other in prohibitive, pc 2vtjtative or
other measures for the purpose of making more offective any remodial order
issued by a duly .
issued by a duly authorizod agency of any Member in fartherance of tho
objectives of this Charter.
2. Mombers participating in or intending to participate in such
co-operative action shall notify the Organization.7
Members who co-oporate with each other to provent, within their
respective Jurisdictions, practices as described in Article 44 shall inform
the Organization of the action taken.
ARTICLE 49
Domestic Measures against Restrictive Business Practices
No act or omission to act on the part of the Organization shall preclude
any Member froM enforcing any national statute or decreo directed towards
preventing monopoly or restraint of trade.
ARTICLE 50
Special Pocedures with respect . Services
1. The Members recognize that certain services, such as transportation,
telecommunications, Insurance end. the comercial 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 1 of 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 a service referred to in paragrph 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 writtan statement
explaining that situation to the Member or Members the private or public
enterprises of which are engaged in the services in question. The Member or
Membors concermed shall give sympathetic consideration to the statement and.
to such proposals as may be made [with a view to affording adequate
opportunities for consultation, with a view to effecting a satisfactory
adjustment.
3. If no adJustment can be ef'fected. in accordance with the provisions of
paragraph 2 of this Article, and if the matter is referred to the
organization, it shall bo transforred to the appropriate inter-governmental
organization if one exists, with such observations as the Organization may
/wish to -9-
wish to make. If. no such Inter-governmental organization exits, Members
may ask the Organization, under Article 69 (c) to mako recommendations for,
and promote international agreement on, measures designed to remedy the
particular situation so far as it comes within the scope of this Charter.
4, The Organization shall, in acordance with paragraph 2 of Article 84,
co-operate with inter-governmental organizations in commection with
restrictive business practices affecting any field coming. within the scope
of this Charter and those organisations shall be entitled to consult the
Organization, to seek advice, and to ask that a study of a particular
problem be made.
ARTICLE 51
Exceptions to the Provisions oi this Chapter
1. The obligations of this chapter shall not apply to:
(a) inter-governmental commodity agreements meeting the requirements
of Chapter VI; and
.
(b) any bilateral inter-government agreement relating to the
purchase or sale of a commodity falling under Soction D of Chapter lv.
.
2. Notwithstanding paragraph l. of this Article, the Organisation may make
rocondations to Membors and..to apprepriate inter-govermental oranizations
concerning any features of the agreements reerred to in peragraph 1 (b) of
this Article which may have the effect described in paragraph 1 of
Article 44. PART III
THE TEXT OF CHAPTER AS APPROVED BY THE SUB-COMMITTEE
RESTRICTIVE BUSINESS PRACTICES
ARTICLE 44
General Policy Toward a Restrictive Business Practices
1. Each Member shall take appropriate measures, [individually or through
the Organization or in both ways] an. shall co-operate with the
Organization, to prevent, on the part of private or public commercial
enterprises, business practices affecting international trade [whether
engaged in by private or public commercial enterprises)] which restrain
competition, limit access to markets, or foste-: monopolistic control,
whenever such practices have harmful effects on the expansion of production
or trade and interfere with the achievement 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 paragraph 1 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 ln accordance with the procedure regarding
complaints provided. in Articles 45 A 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 other arrangement between commercial enterprises,
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 the articlee are the
following:
2844 /(a) fixing -2-
(a) fixing prices
dealing with third
product;
[or] terms[,] or conditions to be observed in
dealing with [third parties,] in the purchase, sale or lease of any
.
(b) excluding enterprises from any territorial market or field of
business activity, allocating or dividing any erritoried market or
field of business activity , allocating customers, or fixang sales
quotas or purchase quotas;
(c) discriminating against particular enterprises;
(d) limiting production or fixing production quotas;
(e) preventing by agreement the development or application of
technology or invention whetherr patented or unpatented;
(f) extending the use of rights under patents, trade marks or
copyrights granted by any member, to masters which are determined by
its system of law not to be within the scope of such grants, or to
products or conditions of production, use or sale which similarly
determined not to be the subjects of such grants;
(g) any similar practices which the Organization by a majority of
two-thirds of the Members present and voting may from time to time
decide are restrictive business practices.
In this Chapter the term "public commercial enterprises" means
(a) [trading] agencies of goverments, [and] in so far as they are
engaged in trate and
(b) trading enterprises mainly or wholly owned by public authority
` and over which there is effective control by public authority,
- - including control of engagement in a practice listed in paragraph 3
of this Article.
The term. "private commercial enterprises" means all other
commercial enterprises
.
.
.
.
ARTICLE 45
Proced.ure rith respect toa onsultations
7 Any affected Member which considers that in any particular instance a
/practice
.
. -3-
practice existed (whether engaged ln by private or public commercial
enterprises) hich has or is about to have the effect described ln
paragraph 1 or article 44 may conduit other Members iirectly or request
the Organisation to arrange fo consultation with pticular :mbers wIth
a view to reaching mutually satisfactory conclusions. If requested by
the Member and if it considers such action to be justified, the Organization
shall arrange for and assist in such consultation. Action under this
Article shall be without prejudice to the procedure provided for in
Article 45-A.
ARTICLE 45-A
Procedure with respect to Investigation
[2] 1. [A complaint may be presented in writing to the Organization by7
Ary affected Member on its own behalf or [by] any Member on behalf of any
affected person, enterprise o-. organization within that Member's jurisdiction,
may in accordance with [Article 44] paragraphs 2 and 3 of Article 44 present
a written complaint to the Organization 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
article 44. PROVIDED that in the case of [a]complaints against a single
public commercial enterprise acting independently of any other enterprise,
such complaints may be presented only by a Member on its own behalf and only
after the Me:. er has resorted to the procedlure [under paragraph 1 of this
Article7 in Article 45.
[3.] 2. The Organization shall prescribe the minimum information to be
included in complaints. that particular 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 effect
of the practices.
(4) 3. The Organization shall consider each complaint presented in
accordance with paragraph1l of this Article. If the Organization deems,
it appropriate it shall request Members concerned to furnish
supplementary information, for example, information from. commercial
enterprises within their jurisdiction. After reviewing the relevant
information the Organization shall decide whether an investigation i8
justified.
(5) 4. If the Organization decides that an investigation i Justified,
it shall notify all Mambers of the complaint, request any Member to
/furnish such furnish such additional information relevant to the complaint as the
Organization may deem 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 available and
decide whether the practices in question are as deseribed in
.
paragraphs 2 and 3 of Artic'e 44, and have had, have or are about to
have the effect described in paragraph 1 of that Article -/4I7
.
.
.
(7) 6. The Organization shall [notify] inform all Membere of its decision
and the reasonStherefor.
7. If the Organization, decides that in any particular case the r
practices complained [of] areas decribed in paragraphse 2 and 3 of
article 44 and have had, have or are bout to have the effect described
in paragraph 1 of that Article [44] 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. cut
in accordance with theïr respective lava and procedures. Provided that
if the Organization finds that the practices erna ef e f
and are as described in article 44 and have been specifically required
by law, the provisions in paragraph 7, 8, 9 and 10 of this Article
shall not apply, and the complaining Member W&i4j have further recourse
o lyân the procedures provided in Chapter VIII and
other relevant provisions of this Charter.
7 8. The Organization may request any Member concerned to report fully
on the remedial action ît has taken in any particular case.
/1o.7 9. 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 and any measures recommended
to the Mombers concerned. The Organization shall not, if a Member so
requested, disclose confidential information furnished by that Mombor,
which f' disclosed would substantially &-nage the legitimate business
interests of a commercial enterprise.
[11.] 10. The
.
.
.
.
-4-
. -5-
[11] 10. The Organization shall report to all Members and make public the
remedial action which has been taken by the Members concerned in ary
particular case.
ARTICLE 46
Studies relating to Restrictive Business Practices
1. The Organization is authorized
(a) to conduct studies, either on its own initiative or at tLe request
of any Member or of any organ of the United Nations or of any other
inter-governmetal organization relating to
(1) general aspects of restrictive business practices affecting
international ';rade; and
(ii) conventions, laws and procedures concerning, for example,
incorporation, company registration, Investments, securities,
prices, markets, fair trade practices, trade marks,
copyrights, patents and tho 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 end
other arrangements effecting international trade; and
(b) to request information from Members in connection with such studies.
2. The Organization ie authorized
(a) to make recommendations to Members concerning such conventions,
lave and procedures as are relevant to their obligations under this
Chapter, and.
(b) to arrange for conferences 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 or system of few and economic
/organization, .
organization, to ensure, within its jurisdiction, that private and public,
commercial enterprises do not engage in practices which have the effect and
are as described in [paragaph of] Article 44, and in addition it shall
assist the Organizatïon in preventing these practices. [, such assistance
to be given in accordance with the Member's system of law and economic
organîzation,]
2. Each Member shall make adequate arrangements for presenting complaints,
conducting investigations, and preparing information and reported 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 iB not
essential to the Orgenization in conducting an adequate investigation and
which, lf disclosed, would substantially damage the legitimate business
interested of a commercial enterprise. In notifying the Organization that it
is withhodling 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 45 A and, in accordance with
its system of law and economic organization, take in the particular case the
action It considers appropriate having regard to its obligations under. this
Chapter.
5. Each Member shall report fully any action taken, independently or in
concert with other Members, to comply with requests and carry out
recommendations of the Organization and, when no action has been taken,
inform the Organization of the reasons therefor and discuss the matter further
wlth the Organization 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 satisfactory conclusions.
ARTICLE 48
Supplementary Enforcement Arrangements
[i. Members may co-operate with each other in prohibitive, preventative or
/other measures . -7-
other measures for the purpose of making more effecting 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 notify the Organization.7
Members who co-operate with each other to present, vithin their
respective jurisdictions, practices as described in Article 44 shall inform
the organization of the action taken.
ARTICLE 49
Domestic Measures against Restrictive Business Practices
No act or omission to act on the part of the Orgenization shall preclude
any Member from enforcing any national statute or decree directed. towards
preventing monopoly or restraint of trade.
ARTICLE 50
Special Pr. sdures 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 rin relation to them by enterprises engaged in these
activities in international trade may have harmful effects similar to those
described in pexagraph 1 of Article 44. Such practices shall be dealt with
only in accordance with the following paragraphs. of this Articie7
2. If: any Member considers that there exist res rictive 'siness practices
in relation to a service refred 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 concerned shall give sympathetic consideration to the statement and
to such proposals as may be made [with a view to afford and shall afford
adequate opportunities for consultation, with a view to effecting a
Satisfactory adjustment.
3. If no adjustment can bo effected in accordance with the provisions of
paragraph 2 of this Article, and if the matter is referred to the
Organization, it shall be transferred to the appropriate inter-governmental
organizationsn -8-
organization if one existed, with such observations as the Organization may
wish to male. If no such inter-governnental organization existed, Members
may ask the Organization, under article 69 (c) to make recommendations for,
and promote international agreement on, measures desired to remedy the
particular situation so far as it comas within the scope of this Charter.
4. The Organization shall, in accordance with paragraph 2 of Article 84,
co-operate with inter-gove:. asntal organizations in connection with
restrictive business practices affecting any field coming within the scope
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
I! INTERPRETATION AND DEFINITION
1. The provisions of this Chapter shall be construed with due regard for
the rights and obligations of Members set forth elsewhere in this Charter
and shall not therefore be so interpreted as to pavent the adoption and
enf'orcemen`- of any measures i so far as they are specific 'ly permitted
tnder oth-er Chapters of this Charter. The Organization may however make
recommendations to Members or to any appropriate Inter-govermental
organization concerning any features of these measures which may have the
effect described n paragraph 1 of Article 44.
2. In this Chapter
(a) the term "business practics" 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
respectively, provided that such contract is not used to restrain
competition, limit access to markets or foster monopolistic control;
(b) the term "public commercial enterprises" means
(i) agencies of governments insofar as they are engaged. in
trade, and
(ii) trading enter-rises mairly or wholly owned 'public
\( ,\NiY~ authority and over which there is effectivee control by
public authority, including -control 'of engagement in a
. -9-
any practice listed in paragraph 3 of' Article 44 which is
relevant to a particular investigation;
(c) the term "private commercial enterprises" means all commercial
enterprises other than public commercial enterprises;
(d) the terma caes'es used. in Articles 44, 45..A
(except In paragraphs 3 and 4) and. 47 [mean that the Organization
arrives at or reaches a conclusion, and] not-[prescribe] determine
the obligations of Members but man only that the Orgasnization on
arrives at or reaches a conclusion. FOURTH COMMITTEE: RESTRICTIVE BUSINESS PRAOTICES
PEPORT OF SUB-COMMITTEE
1. The Fourth Committee at its meeting on 4 December 1947 approved the
formation 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 couse of the meetinge of the Fourth Comittee.
2. The Chairman of the Fourth Committee on 5 December 1947 (document
E/CONF.2/C.4/3) appointed the delegations of Argentina, Belgium, Canada,
Ecuador, India, Iraq, Mexico, Norway, United Kingdom and the United States
as members of the Sub-Committee.
3. The Sub-Committee held Its first meeting on 6 December 1947 and
uzanimoualy elected Mr. Jose E. Lopez Alcar (bMoxico) as its Chairmmn.
4. The Sub-Committee held 13 meetings and in the course of its work
considered in great detail ali the amendments included in document
E/CONF. 2/C. 4/4 and had the benefit of consultation with representatives of
the delegations of Afghanistan, Brazil, Ceylon, Colombia, Cuba, Czechoslovakia,
Greece, Italy, South Africa, and Switzerland. A number of other delegations
also attended the meetings of the Sub-Committee.
5. An 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.
6. The Sub-Committee has approved the text of Chapter V as it appears in
Part III of this report and recommends that the text be approved. by the
Committee. The delegate for Argentina has reserved his Goverrment's
position in respect the inclusion of "public ,enterprises" within the
.
scope of Chapter
/1. GENERAL COMMENTS
2881 - 2 -
1. GENERAL COMMENTS
7. The Sub-Committee noted. that the majority of amendments submitted
centred aroun' the definition of three principles. There were as follows:
1. The extent of control to be exercised by the Organîzation
over services, particularly those operated. by Governmental
Agencies.
2. The inclusion or exclusion of public commercial
enterprises within the provisions of Chapter V.
3. The interpretation of the words 'decide' and 'decision'
as used in Articles 44, 45A and 47.
8. 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 Chaptor. However,
the Sub-Committee, after detailed study, substantially agreed and wishes
to emphasize that there is nothinf Article 50 to prevent any Government
from maitaining a monopoly or complete control over 9 Itzi
pit1k zn-dezt , but that Article 50 merely refer to certain business
practices in connection with those services, which might prove restrictive
and have harmful effects as described in paragraph 1 of Article 44.
9. With reference to question No. 2, as to whether or not the business
practices of public 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 public enterprises established by a state in pursuance 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 Argontina has
reserved his Government's position In respect of public enterprises"
throughout the Chapter.
/Other - 3 -
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 ln commercial
activities it acquires the same rights/and obligations under this Chapter
in respect of these activities as is required 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 activities of a business enterprise. it was considered
important to 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.
10. With regard to 3, the Sub-Comittee, 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 Committees for approval is as follows:
"The words 'decide' and 'decision' ('conetateI' and' constatation'
in the French text` as used in Articles 44, 45A (except in paragraphs 3
and 4) and. 47 relate.Yto conclusions by the Organlzation 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-Committee agreed on. the following text to be
included as sub-paragrarh (d), paragraph 2 of Article 51:
"(d) The term "decide' and 'decision' as used in Articles 44, 45:,
(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."
.
/2. SPECIFIC COMMENTS -4-
2. SPECIFIC COMMENTS
Article 44
11. In paragraph 1 of Article 44 the word "end shall co-operate with the
Organization" were substituted for the words "individually or through the
Organization or in both ways" in order to express the general principle of
co-operation. between members ,nd the Organization".
12. In paragraph 2, sub-paragraph (c) of article 44 the Sub-Committee was
of the opinion that the expression "effective control o- trade between two
or more countries" was open to possible miainterpretation. The ameniment is
designed to make it clear that the activities of an enterprise which bas
been granted sole rihts 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 eny 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. Generally speaking ., the enterprise will not
be in a position to exert, such de facto control of trade with any other
single country unless it also controls trade among several countries, end
it is for this reason that the Sub-Committee introduced the more general
expression "effective control of trade among a number of countriess. The
less frequent case of an enterprise which everts de facto control of trade
between two countries only is intended to be covered by this phrase.
13. 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 tho mderstendinig of the
representatives of some deleLtions as to the meanin, of this cub-pLiagraph.
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 term of their behaviour toward other parties,
including prices or other conditions of doing business with such other
parties; and (ii) cases in which 'one' enterprise, including a complex of
firms related by common ownership of some or all of their respective capital,
engage in the practice of monopolistic e::tortion towards other buyers or
sellers. The representative of the United States delegation held that in
the light of (ii) aove, this sub-paragraph would therefore be applicable
to cases similar to those which have been regarded by the United States
courts es subject to the provision of the Sherman Anti-Trust Act which
relates to "monopolizing or attempting to monopolize" trade.
/The Sub-Committee -5.
The Sub-Committee emphasizes that this eub-paragraph is not,\be
construed as applying to simple price aituàtions where, for example, an
enterprise during the period of a "sellers market" may be chargîng prices
higher than could normally be obtained. It was not the Sub-Committee'a
intent to recommend that the Orgenization should exercise funtions similar
to those of a national price control agency. The Sub-Committee pointe out
that sub-paragraph 3 (a), like all other sections of paragraph 3, can be
construed only together with paragraphs 1 and 2.
14. Paragraph 4 of Article 44 was transferred to Article 51, paragraph 2,
aub-paragraph (b).
15. The delegation of Afghànistan withdrew its amendment for the insesion
of the words "including te discriminatory establishment of exclusive
agencies, detrimental to a Memberts economic recovery", after the members
of the Sub-Committee had e.-plained that the practiceE which were the basis
of that amendment could be considered as falling under thc provisions of
paragraph 3 of Article 44, although, of course, each case would have to be
considered on its merits.
Article 42
16. After such detailed study by the Sub-Committee 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
17. Article 45A was renumbered end the new paragraphs 1 and 7 were redrafted.
to take account of the amendments submitted to Article 45.
The Sub-Committee 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. re-arding remedial measures to be
taken in the particular case.
In view of its importance the Sub-Committee call attention to this
distinction between a decision of the Orgenization and a recommendation.
The term decision relate& 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.
/It is not -6-
It is not contemplated in paragraph 7 that in every case such a
recommendation would be proper or necessary. In simple situations 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 i8 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 countriee 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 appropriate. This matter should be left to the
discretion of the Organization.
Article 47
The transposition of the words "in accordance with the Member's system
of law and economic organization" and the addition of the word "constitution"
to paragraph of this Article, are intended to make it clear that in
implementing the obliCations undertaken by a Member in terms of this Article
it has to proceed in accordance with ite own peràSàr system of political
and economic organizations a&,!àa.t ihe nature of the exact légal or
administrative oli*u: ff these obligations wouldCrarfroy from country to
country;
in ctlhcrii, noco.e- fundamental legialation would be V
involved in giving affect a Member's obligations under this Article. /
Article 4-8
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 discusion the Committee approved the present text as
re P senting more clearly the intentions of the Article.
The deIegation of Mexico held that the reference to banking In
Article 50 might be interpreted as covering the credit and monetary control
operations of a Central Bank undertaken to implement a national financial
policy. The Sub-Committtee was unanimouely of the opinion that their
Governments could 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 banke," ie designed
to make it perfectly clear that the bankinG operations to which the paragraph
refers are simple financial services directly and intimately connected with
internationa transactions such as the provision of short-term credit
facilities to cover imports and exports of goode; and the alteration of the
/phrase -7-
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-Committee 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 long term international lending by a
governmental agency.
2.. Article 51 has been entirely redrafted. Where paragraph 1 of' this
Article replaces the previous te of Article 51 in paragraph 2, the
sub-committee, in the interests of clarity, has given an interpretation of
the terms "business practice", public commercial enterprise", "private
commercial enterprise" and "decision" and "decisione" as used. in Chapter V.
/ADDNDUM TO THE REPORT -8-
ADDENDUM TO THE REPORT OF THE SUB -COMMITTE TO COMMITTEE IV
6 (A) The Sub-Committee wihes 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.
17, (A) The proviso to paragraph 45A (7) is designed to draw attention to
the fact that the concluding stages of the proceduro described in that
Article cannot appropriately be utilized when the member assumes
responsibility for business practices carried out by an enterprise within
ite Jurisdictlon. When it appear, therefore, that a practice which il
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 apd 10 of Article 45A.
n such a case,
may obwd only the procedures provided for elsewhere in
the Chapter. |
GATT Library | hy501vb2451 | Sub-Committee A. Summary record of Twenteth Meeting. : Held at the Capitol, Eavana, Cuba, on 1 January 1948 at 4.00 p.m | United Nations Conference on Trade and Employment, January 2, 1948 | Fourth Committee: Restrictive Business Practices | 02/01/1948 | official documents | E/CONF.2/C.4/A/W.8, E/CONF. 2/C. 4/A/1-21, C. 4/A/W/1-9, and C. 4/A/WHITE PAPERS | https://exhibits.stanford.edu/gatt/catalog/hy501vb2451 | hy501vb2451_90200031.xml | GATT_148 | 302 | 2,048 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF. 2/C. 4/A/W.8
ON DU 2 January 1948
TRADE AND FMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
FOURTH COMMITTE: RESICTIVE BUSINESS PRACTICES
SUB-C0MMITTEE A
SUMMARY RECORD OF TWENTETH MEETING
Held at the Capitol, Eavana, Cuba, on 1 January 1948 at 4.00 p.m.
The first item on the Agenda was the consideration of the proposed
new draft presented by the Ad Hoc Committee, to be inserted as paragraph 5
of Article 44.
The representatives of Brazil and Colombia expressed the opinion that
none of the drafts submitted by the Ad Hoc Committee on the principle
involved were satisfactory to them. Their opinions were based on the
conclusion that none of the drafts thus far submitted sufficiently clarified
the text of Chapter V, in connection with the obligations of Governmental-
Agencies whose operations were designed primarily to stabilize domestic
prices in the internal economy of the country.
The representative of Belgim, supported by the delegation of India
stated that he could see no reason why Chapter V should not specify that
both private and public commercial enterprises should avoid any practices
which,violated the provisions of the Charter.
The delegate for Mexico was in favour of the first draft submitted by
the Ad Hoc Committee, on the condition that the word "procedures" In the
last line was changed to "provisions", or of the second draft if the words
"required by a member" and essantiall to the carrying out of actions
specifically" were deleted.
The representative of Norway was also in favour of the second draft,
with the deletion of the words "required by a member".
Several of the delegations expressed their reluctance to accept this
change, and proposed that the amendment be referred back to the Ad Hoc
Committes for redrafting, which suggestion was accepted by the Sub-Committee. |
GATT Library | ww937zg3870 | Sub-Committee B (article 12) | United Nations Conference on Trade and Employment, January 2, 1948 | Second Committee: Economic Development | 02/01/1948 | official documents | E/CONF.2/C.2/B/W.3, E/CONF.2/C.2/B/W.1-14, and C.2/C/W.1-13 | https://exhibits.stanford.edu/gatt/catalog/ww937zg3870 | ww937zg3870_90180303.xml | GATT_148 | 145 | 1,125 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2 /C.2 /B/W.3
ON DU 2 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI SPANISH
SECOND COMMITTEE: ECONOMIC DEVELOPMENT
SUB-COMMITTEE B (ARTICLE 12)
The following is the text of Article 108 of the Vanezuelan Constitution
quoted by the delegate of Venezuela at the meeting of the sub-committee on
2 January 1948:
Article 108.- The contracts referred to in the preceding article* shall,
where appropriate in view of their nature, be deamed to include, even
though they do not so expressly, a clause stipulating that any points
of doubt or disputes arising in connection with such contracts and not
settled amicably by the contracting parties, shall be decided by the
competent Vanezuelan Courts in accordance with the laws they administer
and shall in no circumstances provide grounds for foreign claims.
* Contracts of national, state or municipal interest. |
GATT Library | by075md8512 | Sub-Committee B (article 12) : Corrigendum to United States redraft of Article 12 | United Nations Conference on Trade and Employment, January 7, 1948 | Second Committee: Economic Development | 07/01/1948 | official documents | E/CONF.2/C.2/B/W.5/Corr.1, E/CONF.2/C.2/B/W.1-14, and C.2/C/W.1-13 | https://exhibits.stanford.edu/gatt/catalog/by075md8512 | by075md8512_90180306.xml | GATT_148 | 74 | 636 | United Nations Nations Unies
CONFERENCE CONFERENCE
ON DU
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
RESTRICTED
E/CONF.2/C.2/B/
W.5/Corr .1
7 January 1948
ENGLISH - FRENCH
ORIGINAL: ENGLISH
SECOND COMMITTEE: ECONOMIC DEVLOPMENT
SUB-COMMITTEE B (ARTICLE 12)
CORRIGENDUM TO UNITED STATES REDRAFT OF ARTICLE 12
Document F/CONF.2/C.2/B/W.5 is withdrawn.
DEUXIEM## COMMISSION : DEVELOPPEMENT ECONOMIQUE
SOUS-COMMISSION B (ARTICLE 12)
RECTIFICATIF AU PROJET DE NOUVELLE REDACTION DE L'ARTICLE 12
PRESENTE PAR LES ETATS-UNIS
Le document E/CONF.2/C.2/B/W.5 eat retiré. |
GATT Library | pb839bk4933 | Sub-Committee C on Article 75. Amendment to United States draft (Document/CONF.2/C.6/W.5). : Proposed by the Delegation of Cuba | United Nations Conference on Trade and Employment, January 9, 1948 | Sixth Committee: Organization | 09/01/1948 | official documents | E/CONF.2/C.6/W.5/Add.2 and E/CONF. 2/C. 6/W. 1-40 | https://exhibits.stanford.edu/gatt/catalog/pb839bk4933 | pb839bk4933_90200108.xml | GATT_148 | 171 | 1,268 | RESTRICTED
E/CONF.2/C .6/W.5/
United Nations Nations Unies Add. 2
9 January 1948
CONFERENCE CONFERENCE ENGLISH - FRENCH
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
SIXTH COMMITTE: ORGANIZATION
SUB-COMMITTEE C ON ARTICLE 75
AMENDMENT TO UNITED STATES DRAFT (DOCUMENT/CONF.2/C.6/W.5)
Proposed by the Delegation of Cuba
3. (b) Members not elected under paragraph 3 (a) above shall, by a
two-thirds majority of those present and voting, elect the
remaining members of the Executive Board. If, on two consecutive
ballots no Member is elected, tho ramainder of the eletion. shall
be by a majority vote.
SIXIEME COMMISSION: ORGANISATION
SOUS-COMMISSION C: ARTICLE 75
AMENDEMENT AU TEXTE DES ETATS-UNIS (DOCUMENT E/CONF.2/C.6/W.5)
proposE par la délégation dE Cuba
3. (b) Les Etats members qui n'auront pas été élues on vertu du
paragraph 3 (a) ci-dessus éliront, à la majorité des deux tiere
des membres présents ot votant, les autres membres du Conseil
Qxécutif . Si, après deux tours de scrutin consécutifs, aucun
Etat membre n'ost élu, l'élection so poursuivra à la majorité
simple. |
GATT Library | ww197nk2161 | Sub-Committee "C" on Article 75 (Composition of the ex Ecutive Board). Cuba: Proposal for redraft of Article 75 | United Nations Conference on Trade and Employment, January 17, 1948 | Sixth Committee: Organization | 17/01/1948 | official documents | E/CONF.2/C.6/W.51 and E/CONF. 2/C. 6/W/41-80 | https://exhibits.stanford.edu/gatt/catalog/ww197nk2161 | ww197nk2161_90200163.xml | GATT_148 | 337 | 2,316 | RESTRICTED
United Nations Nations Unies E/CONF.2/c.6/W.51
CONFERENCE CONFERENCE 17 January 1948
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
SIXTH COMMITEE; ORGANIZATION
SUB-COMMITTEE "C" ON ARTICLE 75 (COMPOSITION OF THE EX ECUTIVE BOARD)
CUBA: PROPOSAL FOR REDRAFT OF ARTICLE 75
Article 75
Composition of the Executive Board
1. The Executive Board shall consist of the representatives of eighteen
Members of the Organization.
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 of chief economic
importance having particular regard to international trade, and is
representative of the diverse types of economics or different degrees of
economic development existing vithin the membership of the Organization.
3. (a) At Intervals of three years, the Organization shall determine,
according to rules prescribed by the Conference, which are the twelve
Members of chief economic importance, with particular regard to
international trade. The Conference, by a two-thirds majority of the
Members present and voting, shall then elect six of such Members to the
Executive Board.
(b) Members not elected under paragraph 3 (a) above shall, by a
two-thirds majority of those present and voting, elect the remaining
members of the Executive Board.
(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 for a member of the Executive Board shall be three years. At
the first election, however, one-half of the Members elected t the Executive
Board under sub-paragraph 3 (b) above, as determined by lot, shall serve for
a term of three years and the remainder half for a term of four years.
5. Any vacancy in the Board shall be filled by the Conference for the
unexpired term of the vacancy.
6. The Conference shall establish rules for giving effect to the provisions
of this Article. |
GATT Library | xc446db8008 | Sub-Committee C: Proposed Resolution on International Action Relating to Employment Agenda for Fourth Meeting : To be Held at 3.00 p.m. Wednesday 7 January 1948 | United Nations Conference on Trade and Employment, January 7, 1948 | First Committee: Employment and Economic Activity | 07/01/1948 | official documents | E/CONF.2/C.1/C/W.1, E/CONF.2/C.1/A/W.1, and C.1/C/W.1-11 | https://exhibits.stanford.edu/gatt/catalog/xc446db8008 | xc446db8008_90180298.xml | GATT_148 | 11,261 | 76,625 | RESTRICTED
United Nations Nations Unies
E/CONF.2/C.1/C/W.1
CONFERENCE CONFERENCE 7 January 1948
ON DU ENGLISH - FRENCH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
FIRST COMMITTEE: EMPLOYMENT AND ECONOMIC ACTIVITY
SUB-COMMITTEE C: PROPOSED RESOLUTION ON INTERNATIONAL
ACTION RELATING TO EMPLOYMENT
AGENDA FOR FOURTH MEETING
To be Held at 3.00 p.m. Wednesday 7 January 1948
1. Consideration of the report of the Drafting Group (see document
E/CONF.2/C.1/C/W.10)
2. Other business.
PREMIERE COMMISSION : EMPLOI ET ACTIVITE ECONOMIQUE
SOUS-COMMISSION C: PROJET D'ORDRE DU JOUR AU SUJET
D'UNE ACTION INTERNATIONALE EN MATTERE D'EMPLOI
ORDRE DU JOUR DE LA QUATRIEME SEANCE
qui se tiendra le mercrodi 7 janvier 1948, à 15 heures
1. Examen du rapport du Comité de rédaction (of. document
E/CONF.2/C.1/C/W.10)
2. Divers. UNITED NATIONS
INTERIM CO-ORDINATING COMMITTEE
FOR
REVIEW
OF
INTERNATIONAL
COMMODITY ARRANGEMENTS
/INTERIM -2- INTERIM CO-ORDINATING COMMITTEE FOR
INTERNATIONAL COMMODITY ARRANGEMENTS
To the Secretary-General of the United Nations,
The Interim Co-ordinating Committee for International Commodity
Arrangements has the honour to report that it held its first meetings
in Geneva in August and September 1947.
The Committee recognizes its obligation to do everything possible
to reduce to a minimum the duplication which is likely to occur in work
and in jurisdiction when there are a number of international bodies
concerned with commodity arrangements, even though they are viewed from
particular aspects.
This brief review is presented in the belief that each international
commodity authority, in addition to each government, should have a
knowledge of the work being done in the same field by other organizations,
and that this will facilitate co-operation and avoid overlapping.
The Committee trusts that this review may be widely distributed not
only to Governments but also to other interested organizations.
J. R. C. HELMORE Chairman
L. A. WHEELER Member
G. PETER Member
P. E. JUDD
Secretary
c/o Department of Economic Affairs
United Nations,
Lake Success,
New York
16 September 1947. REVIEW
INTERNATIONAL
COMMODITY ARRANGEMENTS
CHAPTER I. : THE ESTABLISHMENT OF THE INTERIM CO-ORDINATING -
FOR OvEE INTEIONAL COoTODITY ARNAF.RMENTS.D O1EHOD
ING PIT GggDI IN PLESGNATIONAL OM-NDI M ATOITRRANGTEMENAIS.
III. : EX ISTTINGINOERNACTINALI OMMRODTY ARANGEMENTS.
IV. H O: TE WRK OIF THEE NTERIORDM CO-INAOTING CMMITTEE.
V. : COA-ORDIMNTSION EAURES.
APPENDICES *i
A.: EXT p OHAF CTRVI of dater of the nternational
Trade Organiztion prepareGd by the SeconG (eneva) Session
y of the Preparyt Cmmittee of the United Nations
Conference on Trade and Employment.
INB . MM : XNIGMGEMENMODITY ARREANG
1. Coffee
2. Cotton
3. Meat
4. Petroleum
6. Rubber
7. Sugar
8. Tea
9. nMmTbe
10. Tin
11. Weat
12. Wool
. . .
/C.E I CHAPTER I
THE ESTABLISHMENT OF THE INTERIM CO-ORDINATING COMMITTEE
FOR INTERNATIONAL COMMODITY ARRANGEMENTS
Lack of System in Pre-War Approach
1. In the period before the 1939-45 war the international problems of
individual primary commodities were not treated in a systematic manner; the
problems of each commodity were considered by some of the parties concerned
without consultation with others, and there was also no attempt to relate
action being taken on various commodities.
War-Time Discussion of Specific Commodity Problems
2. During the war and the reconstruction periods some international
management of many commodities was necessary; this was done through the various
Combined Boards and the International Emergency Food Council. In anticipation
of the longer-term post-war difficulties, commodity discussions were begun
quite early during the war. Following a meeting in 1939 an International
Cot Advisory Committee was established in 1940. In 1941 a preliminary
report was made regarding what arrangements and a Memorandum of Agreement*
made in 1942. Before the end of the war a Rubber Study Group was convened.
At the 1943 Hot Springs meeting and subsequent Conferences of the Food and
Agriculture Organization the general methods of commodity control also came
under consideration.
Development of Principles
3. Meanwhile commodity policy was being approached from the wider standpoint
of international trade policy as a whole. The "Proposals for Expansion of
World Trade and Employment,** included a statement of certain principles which
should govern the use of commodity agreements in a general setting of
multilateral trade. These Proposals elaborated into aed"Suggesto Charter for
an International Trade Organization" were used as a basis of discussion by the
Preparatory Committee of the United Nations Conference on Trade and Employment.
The Committee prepared a draft Charter for an International Trade Organization***
which establishes, among other things, a set of principles for commodity
agreements and suggests machinery for the co-ordination of the activities of
various bodies concerned with commodity problems. Meanwhile, the Food and
* See Appendix B, No. 11.
** Issued by the United States Department of State on 6 December 1945.
*** Subsequently in this Report, the abbreviation ITO is used for international
Trade Organization.
/Agriculture Agriculture Organization had given consideration to the techniques which
might be used, in arrangements for agricultural commodities.
Need for Interim Action '~ * * -
4. By .4_ nuenmen of;commedity discussions itergovertental :g~t
aland ready underweay, h%t becamema cl~r t4t~ syste ac.and co-ordinated
approach was required. However, as it was apparenbt that it would e some
time befroreshe daft come .hazer could beeperative and.the ITO could be
establishsed,y it was necesar todevisme somee interim achinry to co-ordinate
tal inter- on GveI=entazmoi city natter.
Resolutnion on of LodSessionropara orf thmmitteee Ptoy Co
5. At the sFirst Sesio n* of thePrepommiarat ory Citteeheld n London in
1946,owing R the follesolution was adopted requesting the Economic and
Social C ouncilish l tommiioestaba ttee to ceo-ommodiordinat ity arrangements:
'herQin a certar-ffi cultiesa f the kind referred to in the
._&kastr-g.oven'rmnatr Cmomrdity rrangementsa of th Charter
appended to the Report of the Preparatory Committee have already
occurred in respect of certain primary commodities and the Governments
concerned are already taking action on the general lines proposed in
the Chapter and
"Whereas similar difficulties may occur in respect of other
primary commodities and -
"Whereas the Preparatoommry Cittee is agreed that it is desirable
that action taken in respect of such commodities shourlcd opoedn the
genelines propose raldin the Chapter above-mentd.ione
"The Preparatorymi Comttee of the Internatl Conference oionan Trade
amEnd1ployment .'- - *
"Reco=es that, in so far as inter-govermenta consation
or actary before ion in respect of particular commodities iBnecesa.he
Int ernarnmentstional'rade Organizatio'1i 1.Shedj'the'7.G:
cronc Ininerned shmouldl adopt as a guide the Chapte ter-governenta
Com mo dhjity Ara iemts of the Chartsr appended-:totkport-of he
Cr-nittee - ' -;. :
"Requests the6ecretary-Gezialof the United Nations pending the
establishent of.teo-Ier'at-IonaVl T t appoizit an'
Interrrnim Co- Cdioat, Internatoral Co"odity Aements,
toh conesisat of tommitthe Executi Scretary of tlePr 'rtory Cin
df6 &nInteloyment rMatioarmal onreen'e oi Trae dan Epibzbntinn,'a
griculture Organization repreecztaertive ?Isthe ?5od.ridA~u t oncrnd
* See Parag'h .
/vth agricultural -6-
with agricultural primary commodites, and a person to be selected
at the discretion of the Secretary-General to be concerned with
non-agricultural primary commodities, this Committee to keep informed
of inter-governmental consultation or action in this field and to
facilitate by appropriate means such consultation or action,"
Report of FAO Preparatory Commission
6. The Food and Agriculture Organization Preparatory Commission on World
Food Proposals, which met in Washington from October 1946 to January 1947,
endorsed the objectives laid down in the draft Charter for an ITO in
regard to Inter-Governmental Commodity Arrangements. It considered the
question of co-ordination and stated in its Report (paragraph 239) that it
believed:
"(1) That, pending the establishment of the proposed International
Trade Organization, a temporary Co-ordinating Committee, or similar
body, should be created promptly by the United Nations; which Committee
should keep itself informed of consultation or action in respect of
inter-governmental arrangements for agricultural and non-agricultural
Pimary commodities, and facilitate by appropriate means such
consultation or action;
(2) That this Co-ordinating Committee should be comprised of three
highly qualified persons, one of whom should be nominated by the Food
and Agriculture Organization, and should be concerned, in particular,
with agricultural primary commodities."
Establishment of the Committee by the Economic and Social Council
7. Acting on the requests of the International Conferences mentioned
above, the Economic and Social Council of the United Nations on 28 March
1947 adopted the following Resolution:
"The Economic and Social Council
Noting that inter-governmental consultations are going forward actively
with respect to certain internationally traded commodities, and
considering the significant measure of agreement regarding commodity
problems and the co-ordination of commodity consultations already
reached both in the first session of the Preparatory Committee of
the United Nations Conference on Trade and Employment, and in the
Preparatory Commission on World Food Proposals of the Food and
Agriculture Organization of the United Nations,
Recommends that, pending the establishment of the International Trade
Organization, Members of the United Nations adopt as a general guide
in inter-governmental consultation or action with respect to commodity
/problems -7-
problems the principles laid down in Chapter VII* as a whole, i.e. the
chapter on inter-governmental commodity arrangements of the draft charter
appended to the report of the first session of the Preparatory
Committee of the United Nations Conference on Trade and Employment,
although recognizing that discussion in future sessions of the
Preparatory Committee of the United Nations Conference, as well as
in the Conference itself, may result in modification of the provisions
relating to commodity problems, and
Requests the Secretary-General to appoint an interim co-ordinating
committee for international commodity arrangements to keep informed of
and to facilitate by appropriate means such inter-governmental : .
consultation or action with respect to commodity prmoblems, the Comittee
to consist of a chairman to represent the Preparatory Committee of
the United Natioons Conference n Trade and eEmployment, a prson
nominated by the Food and Agriculture Organization of the United Nations
to be concerned in particular with agricultural primary commodities,
and a person to be concerned in particular with non-agricultural
primary commodities."
*i the Geneva draft this beco,mes Chapter VI which referen.ce is now used
/CHAPTER II -8-
CHAPTER II
GUIDING PRINCIPLES IN INTERNATIONAL
COMMODITY ARRANGEMENTS
8. It will be seen from the Resolution quoted in the previous paragraph
that the Economic and Social Council of the United Nations has urged all
member Governments to accept the principles of the appropriate chapter of
the draft Charter for an International Trade Organization as a guide in
making commodity arrangements. The Committee therefore considers it
appropriate to submit a short review of these principles.
9. The draft Charter to which the Economic and Social Council resolution
refers, has been prepared by an inter-governmental Preparatory Committee,
established by the Council, and charged with the preparation of an annotated
draft agenda for an International Conference. The First Session of the
Committee was held in London in October and November 1946, and issued a
Report containing a draft Charter for an ITO, and this was examined by a
Drafting Committee, which met in New York in January and February 1947.
The Second Session of the Preparatory Committee met in Geneva from April to
September 1947 and produced a revised draft, printed and published as the
"Report of the Second Session of the Preparatory Commission of the
United Nations Conference on Trade and Employment",* for consideration by
an International Conference to be held in Havena on 21 November 1947.
10. The full text of Chapter VI, dealing with inter-governmental commodity
arrangements, of this draft Charter for an ITO is given as Appendix A to
this Report, but the Committee feels that it might be helpful to set out in >
general terms the underlying principles of the Chapter.
11. Under the draft Charter for an ITO measures otherwise debarred to
Members of the proposed ITO are permitted when Governments employ
inter-governmental mcomoditay gerements conforming to the principles set out
in Chapter VI. This would allow governments to employ multilateral commodity
agreements which they deem desirable even if they involve certain measures
otherwise prohibited under the Charter.
The Approach of the draft Charter for an ITO to Commodity Problems
12Th. e draft Charter for an ITO recognizes that the problems connected with
primary commodities are of a special nature, and provides a systematic
approach to the solution of such problems. The basis of the procedures
established is that there should be carefuel xamination of all aspects of a
commodity problem before action is taken, and that such examination should be
* United Nations document EC/P/T/186.
/conducted conduct on a wide basis with adequate representation of all the interests
involved. Agreements of a restrictive nature are only to be used in certain
unavoidable circumstances, and the general desirability of increasing
consumption of primary products is accepted. Such agreements may aim to
stabilize the prices of Primary commodities at a level which will be fair
both to efficient producers and to consumers. Guiding principles for the
administration of agreements are laid down and provision made for
co-ordinating the activities of various international bodies concerned with
commodity matters. However, no attempt is made to lay down the particular
methods to be used in dealing with commodity difficulties. These have to be
worked out by discussion and negotiation between the countries specially
concerned with the particular commodities. -
Inter-relat ionoroduction, onsyf umption and Innterational Trade
13. Experience dug rin tthgreat depiireson hsas h town adequate shattandards
of consumption and nutrition cannot be achieved merely by increasing
productiossn; atisfactory condins tioof international tradre ae also
necessary these objectives if areto beattained. Independent actioon t
rey medthe difficulties of the producers or a particularm comoy dit hmayave
eradsee ervrssunnios on heinternationatrade r eposition fothccountries,r n
and Chapter VI ohf te draft Charter for an ITO iss dneiged to ensure that
countries do not make arrangements to improve their own individual position
at theexspene ofotsher. - . -
Aaao xamnn be,,-re Aon..
14. It-s o. he blequarinipl equate exthe Chapter that adpt %eaminatio
oshctall, consumption a b.ardapes .ur phe ioaentauof ny'
comodity before the preparatio. of an international a.greement This
examination involves the collection of relevanat informtion and the .
the conecto n. :Q e,epoffesyprooe.dactio,..
15. e dralf iCarter esenvisagl thie foloswg stages in the sestablihment
aation of all inter-governmental - gromte ntal commodiyagreement:
on (a) equate information about che olormaledoy, dtion andd.-
consumption onternational f/and the ictmmrade ;in a oodity
(b)s of opinion among countries substantially na consensuiterested
etnational agreement ih datiran iatm amab le t a commodityccommodityo
situatior : . ;' .. '
reach agreement on(c) the holgng of an internationalcon rene -treag
tion; anmdea.,:s,ke aoe4d,to mtei,;o; n,-;*, .r
from such a Conference(d) thed from such a conference tai rnt rsl9
gatiharoun.gh qveriumentl.,pnlz.ti..*
opinion would normally be done through a study group; however, if adequate
~~~~~~/information -10-
information is already available then a formal study group would not be
necessary.
Wide Participation In Arrangements
16. The principle is adopted in the Charter of making participation on as
wide a basis as possible consistent with expeditious handling of the
problems. The procedure on this matter may be summarized as follows:
(a) Any Member country of ITO which considers that it has a
substantial interest in a commodity may participate in the work of
the study group. Non-Member countries may also be invited.
(b) Similar rules apply to participation in commodity conferences,
but in practice it may be expected that some countries which did not
wish to participate in the work of the study group would desire to
attend.
(c) Participation commodity agreement is open at any time to all
Member countries and to non-Members who may be invited.
(d) Every country participating in a commodity control agreement is
entitled to have one representative on the body administering the
agreement.
It is recognized that only through wide participation of substantially
interested countries can action to remedy commodity difficulties be made
effective.
17. This wide participation should prevent the formation of agreements
serving the interest of a limited number of countries at the expense of
producers or consumers in others. To help achieve this object it is also
provided that publicity shall be given to an inter-governmental commodity
agreement proposed, concluded or in operation.
Representation of all Interests
18. It is important that this wide participation should cover all interests,
and that particularly in commodity control agreements a situation should be
prevented in which a group or section, e.g. producers or consumers, obtain
some advantage over other groups. The general principle is therefore
accepted that there shall be adequate participation of importing as well as
exporting countries and that the interests of countries which both produce
and consume, but do not engage to any great extent in international trade,
should also be adequately represented.
Expeditious Handling of Commodity Difficulties
19. Although the provisions of Chapter VI aim at preventing action based
on inadequate examination of the position, at the same time they are
designed to ensure that there is no delay in dealing with commodity
difficulties. Participation in the study group of all countries substantially
/interested interested should in itself lead to speedier action where this is
necessary. The draft Charter specifically directs the ITO to deal
promptly with the fidings and recommendations of a study group. Special
provision has been made to deal with any exceptional case in which there
has been unreasonable delay in the proceedings of a study group or
commodity conference. ::
Limitation on of gUesmeAreents of a Restrictive Nature
20. A distinction is made between "commodity control agreements", i.e.
agreements which m reightstrict international trade to a substantial extent,
and o thers typommf coodity agreements which would not have this effect,
Itcsco regniaeda tht it is sometimes necessary to use commodity control
agreementus bt the circumstances under which they may be employed are
arrowly defined (see Ar i 5ce' of the draft Charter for an ITO -
Appendix A). In general their use is Iimed itto primary commodity
iuations in wtiich a 'udreasmoe surpDuse xists or is expected to arise, or
where there is widespread unemployment or underemployment arising out of the
special nature of such commodities. These agreements are also restricted
to cases in which, in the absence of specific governmental action, the
commodity situation would not be corrected by normal market forces alone in
time to prevent hardship.
Expansionist Approach to Commodity Problems
21. It is fundamental to the approach of the Chapter that, wherever possible,
steps shall be taken to expand world production and consumption. It is
specifically provided that commodity control agreements shall be designed
to assure the availability of supplies adequate at all times for world
demand at reasonable prices and that, where practicable, they shall include
measures designed to increase world consumption of the commodity, It is a
principle of the draft Charter that such agreements must provide for
increasing opportunities to satisfy consumption requirements from economic
sources of production.
22. It is also provided that if an agreement is aimed at securing the
coordinated expansion of the aggregate world production of a primary
commodity, it need not be subject to the restrictions of a commodity control
agreement even though it contains provision for control of production or
trade or for the future application of minimum prices.
23. As a further means of increasing consumption of a commodity it is
provided that recommendations to this end made under any type of agreement
shall be favourably considered by all Members of the ITO whether or not
they are parties to a particular commodity agreement.
/Stabilization Measures
-11- Stabilization Measures
24. It will be noticed that the Charter contemplates agreements to reduce
fluctuations in prices of primary commodities. Various measures to achieve
this objective may be adopted according to the circumstances of the
particular commodity, and special schemes, such as buffer stocks arrangements,
may be applied in appropriate circumstances. Commodity control agreements
involving the regulation of production, exports or prices may be used to
provide stability.
25. In the Report* of the FAO Preparatory Commission on World Food
Proposals certain stabilization measures applicable to agricultural
production are discussed.* For certain commodities, where the problem is
mainly one of seasonal and cyclical ,price fluctuations the Report
recommends the creation of Price Stabilization Reserves, often called buffer
stocks. The opinion is also expressed, that subject to adequate safeguards,
quotas can be usefully written into international agreements for certain
types of agricultural products. During and since the war long-term
contracts have been used to assure markets for products as well as supplies
for consumers. There are dangers in the wide use of such contracts and the
FAO Preparatory Commission thought that such contracts should be made in
conformity with the relevant principles of the suggested Charter for an ITO
and puts forward certain propositions designed to secure this end.
Treatment of Commodity Problems on an Individual Basis
26. It is recognized that each commodity presents its own particular
problems and no attempt is made in the draft Charter for an ITO to suggest
the specific methods to be used to achieve the objectives of an agreement,
as, in general, these will have to be negotiated separately for each
particular commodity. Directly related commodities such as cane and beet
sugar, or synthetic and natural rubber may, however, be dealt with in a
single agreement.
Safeguards During Transition
27. It is recognized that changes which are desirable in the long period
may cause difficulties in the short run. Although such difficulties should
not be allowed to stand in the way of desirable long-term adjustments,
it is provided that in making arrangements for transfers to economic
production due regard must be given to the need for preventing serious
economic and social dislocation and to the position of producing countries
suffering from exceptional disabilities.
* See Chapte V of Report, page 21.
/Efficient -13-
Efficient Administration of Agreements
28. In addition to stating general principles for the operation of
commodity agreements, the Charter establishes some specific provisions
for the administration of commodity control agreements. It will be
observed from the relevant articles which appear in Section C of Chapter VI
of the draft Charter for an ITO (Appendix A) that it is contemplated
that the administration will be carried out by separate Commodity Councils,
which may be largely autonomous in their operation, but with general
supervision being exercised by the ITO.
Machinery is provided for the settlement of disputes which may arise
between parties to an agreement and for the review and renewal of an
agreement.
Co-ordination between International Organizations
29. It is important to avoid duplication and overlapping in the
consideration of commodity problems, and provision is made for co-operation
between interested inter-governmental organizations. Specific measures are
laid down in the draft Charter for an ITO entitling such organizations
to Participate in the work of the various commodity bodies to be established
under the procedures of the Charter; particular reference is made to the
work of the Food and Agriculture Organization.
Special Types of Commodity Arrangements
30. (a) Certain types of bilateral agreements are excluded from the
operations of the Chapter and consequently would not be exempt from
the commercial policy provisions of the draft Charter for an ITO.
(b) Agreements relating solely to the equitable distribution of
commodities in short supply would not need to comply with the draft
Charter provisions relating to study groups and conferences or with those
applying to control agreements.
(c) Provision is made for inter-governmental commodity agreements
designed to maintain and develop the natural resources of the world.
Agreements dealing exclusively with conservation of exhaustible
natural resources need not conform to the special provisions
normally applying to control agreements even though some degree of
regulation is involved.
(d) Inter-Governmental commodity agreements necessary for the
protection of public morals or of human, animal or plant life or
health are exempt from the provisions of Chapter VI of the draft
Charter for an ITO, provided they are not used for purposes inconsistent
with the objectives of Chapter VI or with the Chapter of the draft
Charter relating to restrictive business practices.
Work of Geneva Session of the United Nations Conference on Trade and
Employment
31. The above summary is based on the text of the draft Charter for an ITO -14-
as prepared at the Second (Geneva) Session of the preparatory committee of
the United Nations Conference on Trade and Employment and reproduced as
Appendix A to this Report. *Since the First Session of the Preparatory
Committee, there has been some development in the principles of the
Chapter, a clarification of the text, and a more precise definition of
terms. It is now made clear that expansionist agreements need not be
restricted to cases where a commodity is in short supply, and provisions Is
explicitly made for agreements designed to sure the equitable distribution
of commodities in short supply. The principle is now established that
countries shall decide for themselves whether their interest in a commodity
is sufficient to warrant their attendance at a study group or at a
conference.
32. in earlier versions of the draft Charter all agreements involvinG
regulation of production, trade or prices were termed "regulatory agreements"
and their use was strictly limited. It is now recognized that the.
purpose of regulation may not always be restrictive of production and trade,
and this fact is taken into account in the definition of the term
"commodity control aGreements" which includes only agreements of a
restrictive or potentially restrictive character. Provision for the
regulation of production and for the possible application of stabilized
prices may; for example, be essential to the success of agreements to
expand the total production and consumption of basic foodstuffs. Similarly,
agreements relating to the seasonal movement of trade may involve regulation
without being restrictive. In such circumstances, the use of regulatory
measures would ln no way be inconsistent with the fundamental aims
expressed in the draft Charter for an ITO. Agreements of this kind need
not be subJect to the special condition attaching to commodity control
agreements.
33. The position of inter-governmental organizations; deemed competent
by the ITO, has been clarified and their rights stated in greater detail.
They are now entitled to attend study: groups and commodity conferences,
whereas previously they could only do so at the request of the ITO. TheY
are also entitled, on the basis of any study of a primary commodity which
they submit to the ITO, to recommend to the latter that further study of the
commodity be made or that a commodity conference be convened.
. . , . .. . ; . . . .. . xI ... . .
N ENT ; E.-XIINGI=ThAINDAL COODITbiE-INTS
34.t " rlyinG priinciomipi ofr eIner'-govrnental 'comodtt ateement
ailtsbihed' inthe draft Charter for an ITO were discussed in the
previous c1teiZ t is, no -proosed to'revew the application of the
more important P'nciples to a number'of existing and proposed international
commodity arrangements, although no eattempt will be mad at anything in
the nature of &ritical examination.
35. For convenie nt mrieferenuce, the Comttee sbmits in Appendix B a
brei'b y- fhedevelopment an d present-positio of each of the more
imp6ibtbglner-ovrnlmeomnta1 ccodty~ amentrangiesi I view of the
reiosolutn of the Economic and Social Couincil t is hoped that parties
interesn tned aiaiy prtcular arrangement wuuill tdy it in the light of
rinciplesthhcip ow set out 'in the draafte Chor rntr fa ITO.s Thi
Cona-orditimmitnge Cotiche, wh is serviy ced eb a Scretriat actively
aatsdtsio'awfh thep prtejrattn heof'teCharter, offers to render any
assistance it in thecaan m.tter
Examination of Commodity Problems
3n6. Udeerd tfh rat teCharr for an ITO arrmangseere nt amade for adequate
exaaMointin of alle asspct of a commodity problem before an international
agreemen t acisr.ehed The present tendenc y is to keep the commodity
etian tinoe± uiiv'rwere'so'that tlr'a)and erromr ithodsll wi1not have to
be used in tlme of emergency. Since its creation under the Memorandum of
Miment of 1942, the International wheat Council has gained a weal-ht fT
experience and knowledGe hwich served as a basis f or drfaitng the
argeement considered by the International Wheat Cofnrenec in 1947.
3.7 A number of study Goups are operatingo n the basiso f making
o6tinuoup -ximination of the position o 'he particular commodity.
Shold difficulties develop lnformation would then be available so that
steps could be taken promptly to negotiate an inter-governmental
commodity agreement. This method of preparedness is exemplified in the
case of the International Cotton Advisory Committee 'which, in addition
to such ers a iatt. lts ing colecimpot ant o rts6ttis'3ta .1h0chcs, i oparged'with
the re i l yspf fonsbiit eoeloping uhrthorkeor dvte w n an instrument of
ot-ebcolliaPtol'ol ot fials't'ei wie 'thlo wr t n cotoraSoi."tsi~ .*
3 8,Tprhiei p-o- te erChaipt~ of 'i'dCraft rt herese sheshtbelireichilbziiapi
articitpaion in commodity arrangements ghouldtst't~ a wide basis.: &
.~~
oflpd *i'u*' as- teda-n' wit woof S , weee
established established after meetings to which all countries were invited to attend.
39. Earlier commodity arrangements were generally less representative,
Producers of several important countries do not participate in the work
of the International Tea COmmittee, nor is there any representation of
consumers. In the case of coffee, the agreement is confined to fourteen
South American countries and to the United States. The only post-war
attempt to make as agreement has been the draft Wheat Agreement, and all
members both of the United Nations and of FAO were invited to participate
in the consideration of the Agreement; Although one important country
indicated its inability to participate in an agreement, a substantial
proportion of the international trade in wheat was in the hands of these.
countries approving of thE principles of the Agreement. In the case of
the meeting called by the Food and Agriculture Organization to consider
the rice, position, attendance was on a restricted basis. This meeting
took the form of a preliminary review on a regional basis of certain national
and. international aspects of the rice question of particular importance to
Asiatic territories. It is to be followed by a further meeting on the
basis of wider representation. (See Appendix B5 for details).
Representation of All Interests
40. The wide participation of countries in international commodity
consultations enables adequdate attention to be given to importing as
well as exporting interests.: So fax as the principle of equality of
voting power between importiNg and exporting countries is concerned, this
is explicitly provided in the draft Wheat Agreement. In the case of the
Inter-American Coffee Agreement, the only importing country participating
in the Agreement, the United States of America, has twelve votes out of a
total of thirty-six on the inter-American Coffee Board. Under the Sugar
Agreement, fifty-five votes on the Sugar Council were allotted to exporting
and forty-five to importing countries. Only producers participated in the
International Tea Agreement, which moreover is not an agreement between
governments.
41. The United Kingdom - Dominion Wool Disposals Ltd. (known as the
"Joint-Organization") incorporated as a private registered company, is a
commodity agreement made between goverments in order to dispose systematically
of wool stocks accumulated during the war. It is an agreement between
owners of wool and the question of equal representation of producer and consumer
interests is not raised. In the management of the Organization the
United Kingdom, which is in fact the largest wool importing country, has a
voting strength equal to the total of Australia, New Zealand and South Africa,
which are exporters. The Chairman has a casting vote. However, since this
war-time agreement was negotiated a fully representative Wool Study Group
/meets -17-
meets from time to tine to discuss the wool positions and the results of the
operation of the Joint Organization thus come under review by all interested
countries.
Expansionist Approach
42. In general commodity agreements have paid little attention to
expansionist measures because they generally arose in a period of surplus
stocks, and were designed to relieve current difficulties.
43. In regard to expanding world consumption, the functions of the
International Tea Committee include "the study of ways and means for the
increase of the consumption of tea in the world". In 1935 the Committee
established an International Tea Market Expansion Board to carry out
campaigns towards: this end. The Sugar Agreement provides that favourable
consideration should be given to proposals having as their object the
promotion of "increased consumption of sugar in countries in which
consumption is low" and 'the search for new and alternative use. for sugar
within the framework of national activities". In general these bodies
seem to have found it difficult to embark on a fundamental approach to the
problem of consumption. At the July 1947 meeting of the Rubber Study Group
particular attention was given to the possibilities of expanding the
consumption of rubber and measures were taken to co-operate with the
International Rubber Development Board.
Limitation on Use of Restrictive Agreements
44. The agreements on coffee, sugar and tea, would all rank as commodity
control agreements as defined in the draft Charter for an ITO. In general,
inter-governmental commodity agreements have been, made in times of burdensome
surplus. In the case of the draft Wheat Agreement, which might or might not
be held to be a commodity control agreement, it is considered that, although
a burdensome surplus does not exists the present state of shortage and high
prices might be expected eventually to be followed by a burdensome surplus.
The present wheat position, therefore, conforms to the circumstances provided
in the Charter for the conclusion of a commodity control agreement.
Stabilization
45. The Principal methods of achieving stabilization of. prices have been.
discussed at many international conferences from Hot Springs onwards. The
Report of the Food and Agriculture Organization Preparatory Commission on the
world Fod Proposals, endorsed by the Geneva Conference of FAO, contains a
chapter dealing with the question of price stabilization and commodity policy.
An important contribution to the use of price estabilization measures for
commodity policy is dealt with in the section on subsidies in the draft
Charter for an ITO.
/46. The draft 46. The draft Wheat Agreement suggests a different approach to price
stabilization. It aims to reduce the present high prices and to prevent
them falling to an uneconomic level later. It also provides that exporting
countries should hold substantial reserves of old wheat at the end of each
crop year; this would help to stabilize prices and consumption and would
go some way to assure adequate supplies.
47. The emphasis of agreements has been on "fair" as well as stable prices;
the draft Wheat Agreement states its objectives briefly as follows: "... to
ensure suPplies of wheat to Importing countries and to assure markets to
exporting countries at eqiitable and stable prices" . The Inter-American
Coffee Agreement aimed to assure "terms of trade equitable for both producers
and consumers by adjusting the supply to demand"
Co-operation -. :.
48. Some progress has been mangde inprovidi for adequate co-ordination
between'the various bodies .' the commodity field. The draft Wheat Agreement
provides that then proposed Iternational Wheat Council "shall make whatever
arrangemquents are reired to ensure co-operation with the appropriate organs
of the United Nations and its specialized agencies". The terms of reference
of the yRubber Stud Group state inter alia that "Other governments and
inter governmental orGanizations which express an intereest shall b kept
informed of the studies made and of the results of the discussions as far as
.practicable With rega-rd to intergovernmental organizations, the Group
acknowledged the formation of the Interim Co ordinating Committee for
Inteormnational Cmodity Arrangements." The Executive Committee of the
International Cotton Advisory Committee is charged with the duty of
estclishingeporactical ccoperation with the Food and Agriculture
P- aazationdndwith other organizations concerned with the world cotton
situation. The latest Report of the International Cotton Advisory Committee
srcifiwcally xlcomes co-ordination through -his Interim Co-ordinating
Committee.
Specpial Tyes of Agreements
49 In the previoups Chan er itwas pointed out that certain types of agreement
were exempted from the specific provisions of Chapter VI of the Charter.
Duing athe-u and reconstruction periods many long-term contracts were made
between expog ratiend importing countries. The Commodity Committees of the
International-Emergency CFoodouncil have Also contributed to ensuring the
equit able'distributif on ocommodities in short supply. THE WORK OF THE INTERIM CO-ORDINATING COMMITTEE
50. It will be noted that the Resolution of the Economic and Social Council
(paragraph 7) implies three primary responsibilities for the Co-ordinating
Committee: ,
(a) mTno Iecpn infcztof -int-Governineht otisltoion r action
problemswith pect to' c~mdi'di.* -. .
(b) ' factVUi'uch consulta'lon oaction. -
(c) d co-ordinate such ciut.: .: mtion.
Thae-ons ebrta'(;sedehe f rthe tlieiJed N-ids vi membe? ernmens'
0oheemmbteebsient -othe oini.tt'e tec ms of thel Economi6 'and Sias
,Council esoiuonri d. cetain Governments hanve already takel th opportunity
lto swiuggest pibims thin th ese fields -or'the contsidCommieration of ie 6-ee.
51. The Commsittee consider that at this stage its activities should centre
principalIc lle around the osomtion and.diseenataion Of informtion-regarding
the osi ertioatin and formr.1of international commodity arrangements. It
believes that in providing this inforwillmation it thereby asrsist in peforming
the other fulnictions alcted to it.
5mmi2. The Cototee gdoes nt reard it as within its terms of reference to
colstilect stading tics regarproduction and consumption of mmvarious coodities,
i nd~c'lh'oacion wl 6ul be''aely duplication of work already being done
by specmific comodity groups or specialized agencies such as the Food and
Agriculture Organization. On the other hand, there does appear to be a
erreal nd for assemblnga materil which would sete out th actual arrangements
being made at the international level for dealing with the prob ms le of the
differment icomodites. mThtee Comite therefore askedc thae Seretriat to
prepare for itnotes on specific commodaity anrr.ngemets These notes are
given as Appendix B to this Report. * :
/CEPE V -20-
CHAPTER V
CO-ORDINATION MEASURES
53. At the present time there- are Many Conferences and Study Groups meeting
at different places and at unrelated or even conflicting times. This
sometimes involves unnecessary travel by Government delegates and it is
often difficult to provide sufficient personnel. It seems desirable to establish
a schedule for international commodity meetings so that Governments can
provide effective representation. The Interim Co-ordinating Committee is at the
disposal of Governments, specialized agencies, and regional bodies as well
as existing Study Groups for the preparation of a calendar of International
meetings relating directly or indirectly to commodities. For this purpose
it would appreciate advance information of projected meetings being forwarded
to its Secretariat,* which will, in turn make this information available to
others who are contemplating such meetings.
54. In the field of Inter-governmental commodity arrangements it seems
necessary to ensure a consistent approach as;
(a) between groups concerned with different aspects of the same
commodity,
(b) between arrangements relating to different commodities,
(c) between commodity study groups and regional study groups dealing
with similar commodities, and,
(d) between specialized agencies.
In cases where effective coordination is not taking place, it will be the
task of the Committee to give assistance.
55. If the case of some commodities, e.g. cotton, rubber, wheat and wool,
conditions are being studied by a Study Group or other special body, and also
by the Food and Agriculture Organization. It is essential that overlapping
be prevented, but at the same time that all aspect, such as production,
consumption, international trade, and monetary conditions, should receive
adequate attention. This is being done to some extent by reciprocal
representation at meetings. The Committee believes, however, that one
inexpensive and effective method of co-ordinating the actual research
and study is by Discussion between officers of various agencies, and notes that
* The address of the Secretariat of this Committee is c/o Economic Affairs
Department, United Nations, Lake Success, New York,
/steps have -21-
steps have been taken in this direction. Pending the establishment of the
International Trade Organization, officials of the United Nations-Economicowi
AffaiDrsa epertmnt concerned. with interinnalatcommodo itypolicay cn contribute
to the variouoms dcmoity discussions by providing information on international
trade aspects.
56. It is also important that work being done on variousmm coodities should
be co-ordinated because of their involved inter-relationships. The Food and
Acaiolture Organization deals with many rag_culturaprol ,ucts and will
promote consistency wiinth his t At eth recent Geneva Conference of FAO
a Cocilunwas seablished, and its functions include Btresponsibility:
'tpromo eot consistency and InteGraotin of aga rulictural mmcoodity.
policies, national and international, with regard to (a) overall.
OFA jecobtlves; (b) the terrinelatishipon of production, distribution
and csomptionnua, nd (c) Relationshi ps of riaugcurltal mmocodities."
The Inrnattenmial TderOa rnigaazti,on whens aetiblsh,ewilld ls ao be able to
develocp or-odinated and syemstatic consideration of intertionalna trade
aspectsf como modity policy.
57. Wnhe sa tudgy roup on a primary commodity is in exiestnc e,and wh enthis
studgyou rp, afs or of rubber and tin, has Maaa ngenemt Committee and
aerm pane nectcrariase it is , recommended that the spiecalidze agencies.
undeartki ng 4 reviewo f thisommoi dity, should consult with the Management
mCcittee of the study group in order to obtain the latest information from it
and eventually to submit to it, its draft report before publication so as to
give the Management Committee an opportunity of suggesting any amendments
deemed necessary.
58. With the development of regional bodies it is important that there
should be consultation regarding work that is being undertaken. To take an
example, it would obviously be wasteful for the Economic Commission for Asia
an d the Far East to undertake precisely the same study as, say, the Rubber
Study Group. In the establishment of United Nations regional bodies,
precautions seem to have been taken in this matter. In the temrs of
reference of both the Economic Commission for Europe and the Economic
Commission for Asia and the Far East, it si provided that "the Commission sahll
take measures to ensure that the necessary liaison ism aintained with other
organs of the United Nations and with the specialized agencies."
59. It is also important that there should. be a consistent approach to
Commodity problems by specialized agencies, although they are primarily
interested in different aspects. Adequate provision for this appears to have
been made in the latest draft of the Charter for an ITO. Moreover, working
relations between specialized agencies are usually established through an
/inter-agency -22.
subeo to's:! '5' ; ..--*. ' ..
reemeht:, Es~nubect t eiSewby. the" c.ofiomic ad. pcalouncili
The d& t''oializeed.aogeencinsis tnodkveldp a o esltat rach is
rblecte& n-te resolutions of th'e ecenencetat FeaA Confeber6taa. The
recodndtions adopted included., or examplello,in the fo',ug
'he. (3)hatt principles of innteer-g ovmerdmny ptalcomoitolicy referred
tQcin thce nd' nomidaoSocial C6Rnsocuil a e`tioan- 2r.M.ch 1947
and those set out in the Prepaommission's Reporrasertory Ct ve as
a general guide to Member gsoverment;
(; O:hat FAQcontinue its prsatisfactory co-ooperatioesent w eth
Cm.oStdity dy Groups and Councils anhd. witt *Co-ordinating
Commoittee n Internm-goverental Commorrangedintsty eme,n and esure
the closest co-operation between such Study Grndoupms a Comodity
60,Tmmhe Conttee believes that duplication oof efnfit a. overlghappinof
function can best be avoided. if thsfere a wide circouLatin of Information
about othe w rk ofvariouso commgdity .roups It is with this in mind that the
Cteeoitt presents this first outline theof K work being dorn at the
international level inthe variouomso ctmyit fields. It ehops that any
organization that is face. Withe th problems of a particularmm coodity will,
before embarking on thjerur u stdy,r fist consult esxagtin organizations
ealing with that probl.em-
ad2Fih, ptgraPti 7 of t.hisReport,
/APPEDICES APPENDICES
A. TEXT OF CHAPTER VI OF DRAFT CHARTER FOR AN INTERNATIONAL TRADE
ORGANIZATION AS PREPARED BY THE SECOND (GENEVA) SESSION OF THE
PREPARATORY COMMITTEE OF THE UNITED NATIONS CONFERENCE ON TRADE AND
EMPLOYMEMT.
B. EXISTING COMMODITY ARRANGEMENTS
1. Beef
2. Coffee
3. Cotton
4, Petroleum
. 5 Rice
6, Rubber
7. Sugar
8. Tea
9. Timber
10. Tin
11. Wheat
12. Wool FIRST COMMlTTEE: EXMPLOYMENT AND ECONOMIC ACTIVITY
SUBCOMMITTEE C: PROPOSED RESOLUTION CONCERNING INTER-
NATIONAL ACTION ON EMPLOYMENT
with references to the questions raised at the second meeting of
the Subcommittee concerning the functions and responsibilities t.. tW TVu a rebt of the
tO fAV Mnt*MAtO;W1 Commodity A eahnt.,
vn th gtu the waomt of meA we arthe Sub.
to mwa of, s d _Asued re.nb~r )w that
givus the latest Ouithwitative statemet on its
tiaS AtteuF d is 0M pWttUMlA7 tO
It 4 id S. (Draft) Resolution on International Action Relating to Employment
THE UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Having noted that the draft resolution on International action relating
to employment, prepared by the First Session of the Preparatory Com-
mittee, has already been Incorporated in the instructions of the
Economic and Employment Commission to its Sub-Commission on Employment
and Economic Stability; san
Haring noted further that the Second Session of the Preparatory Com-
mittes has drawn the attention of the Economic and Employment Commission
to the relevant sections of the Report of the first Session of the
Preparatory Committee; and
Having considered also the Importance for same counties, in their
efforts to promote employment and economic activity, of occuring satis-
factory arrangements for the international migration of labour; and,
in that having taken note of the activities In this field
of the International Iabour Organization and Its Permanent Migration
Committee, the Commission, and various regional bodies;
are thenatteationgo orn erastondnta a internatiorgan o~aiosathens to the
sionspcontainedmishathe Charter of teh InernationalTr ?gadOrgnazuiionsata
rinlatl thjeo ovarious acsspeeeemployment,of wproductionn sd dne;msd n sd
Stressehs tep rimnceota chwhil amembersl ofe th Conference attach toe th
objeCtive ochf vanieing ad nmaitaniniug fll and productieve mypentlom
an rgelan astu 4ilyallgrowing mdea adn;sd
gWse allc Gnutresio epasaately nmd oinjely, to coninue tanad namensify
ceivitihsa hosted to this anm; and
Hopes that the initial studies and recommendations of the Economic and
-C
fOai Cougciluknd4 ts Commissions relaamng to the mainIhnancemaf
employment, production and demand, Information on action taken
or projected by individual countries and by specialized agencies, will be
available in the near future in order that the most effective contributiona
aL be aadet to theV achlevemeno of this objecaive., JECT OF RESOLUTION: lmplementation of Economic and Social
Recommendations
DATE ADOPTED: 31 OCTOBER 1947
VOTE: Unanimously without a vote
DOCUMENYT NUMBER: A/433
TEXT OF RESOLUTION:
"THE GRNERAL ASSEMBLY,
(1) With a view to the creation of conditions of stability and
swell-being to the promotion of social progress and better standards
of life, taking account of the fact, well established by experience,
that prosperity is indivisible and requires the cooperation of
all Member States within the framework of the United Nations.
(2) CALLS upon all Member States to carry out all recommendations
of the General Assembly passed on economic and social matters.
(3) RECOMMENDS, furthermore, that in fulfilment of Article 64
of the Charter of the United Nations the Secretary-General report
annuAlly to the Economic and Social Council and that the latter
report to the General Assembly on steps taken by the Member
Governments to give effect to the recommendations of the Economic
and Social Council as well as to the recommendations made by the
General Asembly on matters falling within the Council's
competance." (Enclosure B)
DRAFT RESOLUTION ON INTERNATIONAL ACTION RELATING TO MOBILITY OF LABOUR
THE UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
CONSIDERING that it is its purpose to suggest the means to realize the
aims set forth in the Charter of the Uinited Nations, particularly the at-
tainment of the higher standards of living, full employment and conditions
of economic and social progress and development, envisaged in art.55(a)
of that Charter;
CONSIDERING that the establishment of a world economic equilibrium sounds
ly founded and such as to secure a progressive development of internation-
al trade would be helped also by giving consideration to the problem of
existing disequilibria in territorial distribution off manpower relating
to employment possibilities;
CONSIDERING that a positive action should be taken to secure in every
situation the attainment and maintenance of a full and productive employm
ent both through international investments and by transfers of manpower
and that a certain amount of studies have already been recommended and
started to this end by the Economic and Social Council, the Inter-
national Labour Organizations and other intergovernmental organizations
and specialized agencies of the United Nations;
RECOMMENDS to the Economic and .Social Council to take quick action in
view o fUlfilling the studieS started by its EConomic and Em-
Ployment Commission and Sub-Commissions in co-operation with Internation-
al. Labour Organization, international Monetary Fund International Bank
for Reconstruction and Development, Food and Agriculture Organization,
Interim Co-ordinating Committee for International Commodity Arrangements
and other intergovernmental organizations of the united Nations to the
purposes set forth in Art. 55(a) of the United Nations Charter and
SUGGESTS that it give consideration to compensation of demographic dise-
quilibria between different countries in their productive implications
and take whatever action it might be advisable either directly or through
specialized agencies of the United Nations and intergovernmental organiz-
nations to promote migrations where and when necessary in view of the read
justment of employment levels and the economic development.
La Habana December 29., 1947 (Enclosure A)
DRAFT RESOLUTION ON INTERNATIONAL ACTION RELATING TO EMPLOYMENT
PrposeSd amendment to th eAustatlian Dal t
nserm vmmetiatelyafter the words RECOUGNZING TEHA the words; i"te a tttin
ment Of the higher standards of living, full employment and conditions of
economic and social progress and-development are the aims set forth in
Art -55(a) of the Charter of the United Nations, the realization of which
iS the purpose of the International Trade Organization;"
Insert a new point 4 before the words HEREBY SUGGESTS THAT: "4. Such an
Action must rely on the equilibrium of the three fundamental faCtors of
economic development which are raw materials, capital and mnpower".
Insert between the words "plan measures to sustain high levels of employm-
ent and effective demand" and the words "and in particular to": "both
through international Investments and by transfers of manpower" (P.2,10).
f. l . . ..
A~n P(S ^llo, -:
( d5) -Consider ampensation of demographic disesquilibria betweon4fms
We couatrian i tir produetve impUations and ke .whatever acto .
it miLJti4ytsabii4ar dirctl.or throughspecialized agencies of -
thle U*.4 -$qiaad oenntat4: orgza-tins to pote migra~i.'.3
tn iovie whWq au eea i reaustment or employmentn ;
nom 5*z andthruoaic development. .
L SO=& Deer 29., 1947 DRAF'T RESOLUTION ON INTERNATIONAL ACTION RELATING TO
Note by Italian Delegation
The Report F/Cocf .2/C.1/10 adopted by the First Committee of the con Of Lli CUU
vdrzicerecaoianrcoshisol f.iLvheopoaclusion1 $rtrnunti- n Chapter iof r L.:u&
-ne ITO ChurLrr of a^ pr Viisnri for intcrru ~ion.A ;o-ralnatitln ofu.loy,
ent services with a viu. 'Lo :,.cilLtating f'iu aiArAtioi o'f 1-Lour and time
utscussion which tooii place on this subject "a h;-Co...to: re t
points out thct; Sub-Coh... vitti B exires3t the Vic. t..x~t t av 1.t i of
inlt;z'natio~iai t:Avv~nt o1. t-.bour w4;i Only nU UtU, ACUh anf lpurt-
ant 'ne, of the gtanurul qucstiA1n of intiurnia;iAosL.- tcLiwl; to si sin ,
wring hsigh levels of u;:ployment ani that If Lintlon wvre to b1e- -Uade of
tnis aspect ruI~frenc#3 to other expectss would nlio 'ialv Lo be inctluh.I at
SOQE;; length. Tne Sub-Co0witLV finally &LgrLed, as It L: r%.cordud, ?;nat in
coriectlon %ith thitj proposeid Re-Blutiori on loyz.lit ..)iirati ri zlitht
be given to the dziraoility of drawing th. zitrenLi.~-n tif tne .-ci.toiic ana
Social Council to thVk ibporta-cuv uf tho inttur.ticna:l ..ictlity oV1 zibuur
anc of srdcuring an international co-ordizu.ic~n O p..i.zynt suvic; for
this purpose.
Tne enclosed proposals have been dr-afted by -LA LL '.-..liaI D1t.-1t,;6ti-fon
to tueet the viuw expressed by tho Cou.acitteu elthor "'or Lhuir iuiclusion
in a geaaral Resolutlon on Eiploymznn (sut Daclosklrc A) or for their adoZ
tion 68 a single Resolution cm iuelrnational ioblity of labour (see En=
closure B),,
La iH-bana i)vcerAbur 29, 1947. rioT(nATJ "ICTN PIL'. ig, T NTV U -Wr.
NOT¶BY hTPTSr4LIVN
At the First Session of the Preparatory Committee in October, 1946, a
DraftResolution weEas agreed which suggested that thconomic and Social
Council should arrange for studies of various measures designed to assist in
the achievunt and maintenance of full and productive employment and of
high and stable levels of effective demand.
Account was taken by the Economic and Social Council of the terms of
thiss resolution, wd the main pArt.of it were subsequently included in
instcructiEmeons issued by the Economi andployment Commission to its Sub-
Commission on Employment and Fonomic Stability, which has recently concluded
its first meeting.
The resolution adopted by the First Session of the Preparatory
Cesomuttee and hthe studies agged therein nav thus been taken into account
by the appropriate bsodies of the United Natioun, but we understand that p to
the present ti very little action has resulted. In particular we understand
that the Sub-Cuisionon employment andis Economic Stability Ia uikely to
Isme a report from its first meeting which will cause any action to be taken
in this field, Since the Austerialian Delegation bleves it to be important
that the problem connected with the maintenance of employment and demand
swhould abe studied no so tht action may be taken quickly to prevent the
develop and gowrh of depression if employment starts to fall, it is sug-
gesteneed thhat the Conferc migt profitably adopt a resolution suggesting
further action ich mwiwght be taken novn thisonom field by the Ecrb and Social
Council and the appropriate spec.ialized agencies
The Australian delegation suggests as a basis of discussion a reso-
lution on the following lines:
ONS CONFERENCE ON TRADE AND EMPLOYMENTAIM SV4WTT
G THAT:=ZINO TRAT
1.Te present high level of employment and effective demand in
any countries are based lanrgely upo factors which are essentially
2serAfnent,
2. Action to sustin effectand n dem anad empmustloyment , to be - 2 -
successful, be based on prior study and detailed planning,
3. Action to sustain effective, demand and employment can, in some
cases, be closely integrated with measures which are being or could be
taken in present conditions to reduce inflationary pressure;
HEREBY SUGGESTS THAT
The Economic and Social Council should do everything within its powers
to expedite the studies at present being undertaken by the Employment
and Economic stability Commission and to promote immediate action both
by individual governments and specialized agencies to plan measures to
sustain high levels of employment and effective demand, and in particular to:
(1) Request from each of the United Nations, in pursuance of the
obligations undertaken by it in Articles 55 and 56 of the Charter of the
United Nation, a report setting out the action, if any, which it is now
taking to maintain reasonable stability in employment and effective
demand within its jurisdiction and the nature of prepared plans for
action to maintain employment and effective demand if a decline threatens
in future.
(2) Arrange for consultations with the appropriate specialized
agencies to the end that they should prepare plans now for action which
they might take, consistently with the terms and purposes of their basic
instruments, in the event of the threat of a substantial decline in em-
ployment and economic activity.
(3) Consider whether the need for international investment for
economic developments, especially in the event of a decline in employment
and demand, can be adequately met by the existing specialized agencies
or wheher the provision of further machinery for this purpose is
desirable and practicable.
(4) Arrange for consultations between interested government
directed towards agreements designed to give greater stability to the
prices of basic commodities entering into international traders which ex-
perience demonstrate to be subject to serious fluctuations and so consti-
tuting a threat to stability of employment and effective demand. (5) Consider, in relation to the problems of maintaining stability
In employments and effective demAnd, the problems of disequilibrium
in distribution Of population, and promotion of economic development,
and any necessary coordination of work already being done in these
fields. POINTS FOR DISCUSSION IN SUBCOMMITTEE OF THE
FIRST COMMITTEE
The points listed below have been suggested as subjects for recommendations
in the resolution, or resolutions, relating to employment. Each of these points
might be considered in turn and the Subcommittee might determine:
(a) whether the point should be the subject of a recommendation,
(b) if so, in what form it should appear taking account of the various
drafts suggested.
1. The four points listed in the draft prepared by the First Session
(E/cONF.2/5) might be repeated for emphasis in the new resolution
(see the Brazilian proposal: in E/CONF.2/C.1/C/W/3).
2. The Economic and Social council might be requested to secure report
from Members of the United Nations concerning their measures and
plans to maintain employment and demand and to prevent depression
(see the Chairman's proposal in E/CONF.2/C.1/C/C/W.2 and the
Australian proposal in w.4).
3. The Economic and Social council might be requested to secure
similar reports from specialized agencies (see chairman's
proposal in W.2 and the Australian proposal in W.4).
4. The Economic and Social Council might be requested to issue a
report on the basis of the information received from Governments
and specialized agencies (see the chairman's proposal in W.2).
5. The Economic and Social council might be urged to expedite studies
and promote action by governments and by inter-governmental
agencies with a view to sustaining high levels of employment and
demand (see Australian proposal in W.4).
6. The Economic and Social Council might be asked to consider
whether the present resources and facilities for international
investment are adequate (see Australian proposal in W.4).
7. The Economic and Social Council might be asked to facilitate
agreements to secure Stability in the prices of basic commodities
entering into international trade. j ..j - 2 -
8. A recommendation might be made concerning the employment aspects
of the international disequilibrium in the distribution of
population (see the Chairman's proposal in w.2, the italian
proposal in W.3, and the Brazilian proposal in W.5 concerning
coordinated emigration, and the Brazilian proposal in W. 5
concerning assistance in resettlement).
9. prevention of illegal migration of manual workers (see the
Mexican proposal in W.1).
After a discussion of the topics suggested for inclusion in the
"recommendation" part of any resolution or resolutions, the Subcommittee
might consider the content of the preamble which would be appropriate for
introducing recommendations on the points which the Subcommittee has
decided to include. FIRST COMMITTEE: EMPLOYMENT AND ECONOMIC ACTIVITY
SUB-COMMITTEE C: PROPOSED RESOLUTION ON EMPLOYMENT
PROPOSAL BY THE POLISH MEMBER OF THE SUB-COMMITTEE BASED ON
THE INFORMAL PROPOSAL BY THE CHAIRMAN OF THE SUB-COMMITTEE
THE UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT RECONGNIZING that
future prosperity and. peace rest on a foundation of full and
productive employment and large and steadily growing demand and that
in many countries particularly those underdeveloped or devastated
by war full employment does not actually exist or is not fully
productive, and that
where it does exist its stability may prove to be dependent on
special factors of temporary duration, and that
problems relating to the maintenance or achievement of a full and
productive employment vastly differ as from country to country depending
primarily On whether a country has a well balanced economy as far as the
chief economic factors of production are concerned i.e. capital,
materials, labour and skills, or whether there exists a deficiency or
excess in one or more of such factors, and
RECOGNIZING further that
the solution of such problems, though depending to a large extent
on internal measures, taken by individual countries, can nevertheless,
particularly in respect to countries with ill-balanced economy, derive
grOat support from consultations and concerted action and froM
assistance rendered by inter-governmental agencies, and that
in case of a threatening depression such concerted international
action and such assistance may prove to be of an importance even greater
than individual internal efforts;
NOTING the resolutions under which various United Nations bodies have
begun to assemble information, undertake studies and formulate views
concerning long-term as well as short-term aspects of the problem of
employment, production and demand, including particularly resolutions
of the Economic and Social Council and its Economic and Employment
Commission,
NOTING also that the Draft Resolution on International Action Relating to
Employment agreed upon at the First Session of the Preparatory Committee
was taken into account; and
CONSIDERING that it is of the utmost importance that such preparatory
work be advanced as rapidly as possible so that:
/Advice
2436 -2-
Advice could be given as to ways and means of assuring the
maintenance of high levels of employment and effective demand,
Assistance could be rendered to countries with ill-balanced
economies to achieve full and productive employment,
Positive action on an international scale could be undertaken in
time to prevent a serious decline in the employment and effective demand
in case of a threatening economic depression;
HEREBY SUGGESTS THAT, in addition to the investigations which it has
already initiated, the Economic and Social Council
REQUEST the submission at an early date by Members of the United
Nations, of information concerning their plans for the maintainance or
achievement of full and productive employment and for preventing the
reoccurence of a depression on their territories and also of their
suggestions for international measures taken in a concerted action to
prevent its international spread,
REQUESTS the various specialized agencies to study such plans and
suggestions, to indicate ways and means by which they could render
assistance in case of a threatening depression and also to indicate
which further steps should be undertaken by the United Nations to make
such an assistance effective,
ISSUE a report, based on the above information with recommendations
to the General Assembly of the United Nations, to the Member Governments
and to the specialized agencies concerned. SUB-COMMITTEE C OF TE FIRST COMMITTEE
LETTER FROM THE DANISH DELEGATION
"avana, December 30, 1947
"To the Chairman
of Sub-Committee C of Committee I.
Sir,
"I have been informed of the discussions which took place in
your Sub-Committee today and have learnt that any suggestions for
the resolution to be submitted to the United Nations Economic and
Social Council should be handed over to you before noon on
December 31, 1947.
"While the Danish Delegation, which is not represented on the
Sub-Committee, does not feel competent to enter into detailed discussions
on this subject; I would just like to inform you that we feel that the
resolution as it stands is centered too much around concerted action
in periods of general depression, and that it would perhaps do some
good if the necessity of synchronization of the governmental policies
in periods when inflation is threatening, or when governments are taking
steps to prevent an outside inflation from entering their countries was
emphasized in the resolution. The authors of the resolution seem to
have had the international economic situation of the thirties in mind,
whereas the problems in many countries today are of another nature.
If the various countries had some sort of contact with one another when
taking action against inflation, many harmful effects might be avoided.
"I have the honour to be, Sir,
Your obedient Servant,
/s/ E. Waerum
Chairman of the Danish Delegation"
2441 concerning a resolution on employment (E/CONF.2/C.1/27), the Committee
received a proposal from the Delegation of for an amendment
to the Sub-Committee's text of Section 4 of the resolution. As a result
of this suggestion the First COmmittees at its tenth meeting
dealing with the problems of temporary or of workers,
by Introducing the words "taking into account existing treaties and long
established customs and usages pertaining thereto", and by inserting
between "formulating" and "conventions and model bilateral agreements"
the words "in consultation with Members directly affected". At its
tenth meeting the Committee also considered a proposal by the Delegaticn
of Cuba concerning a resolution on unemployment (E/CON.2/C.1/19), but
did not, accept the proposal (E/CONF.2/C.1/SR.l0).
5683 MEMORANDUM 4 March 1948
TO: Mr. E.Waerum,
Chairman, First Committee
FROM: A E. Ritchie
With reference to your remarks yesterday afternoon concerning the desirability
of having at hand a paragraph which might be added to the Report of the First
Committee concerning the "Resolution on Employment" I would make the following
suggestions:
1. If it is proposed during the meeting of the Committee that something
should be added, you might suggest that the addition should be made in
Annex 2 rather than in the report proper since all that can be said about
the resolution is that the text recommended by the Sub-committee was
changed in certain respects by the First Committee. Changes of this sort
in respect of the articles have been dealt with in Annex 2. Accordingly,
it would seen appropriate, if something of the same sort is to be said
about the resolution, to deal in Annex 2 with the changes which the Com-
mittee has made in the resolution. In that event the following words might
be added at the end of Annex 2: ,
"Resolution on Emvloyment
"Subsequent to the submissio- of the report of the Sub committee concerning
a resolFtion on employmeno mE/CONP.2/C1/17), the C lmuittee received a
proposal from the Delegation of Afghanistan for a amendment to the Sub-
committee's text of Section 4 of the resolution As a result of this sug-
gestion the First CommitteeONF its 1/Sth10eeting (E/CWm'.2/C.l R.l')
modified the last parayraph of the resolution, dealing with the problems
of temporary or seasonal migration of workers, by introducing the words
'taking into account existing treaties and long established customs and
usages pertaining thereto', and by inserting between 'formulating' and
'conventions and model bilateral agreements' the words 'in consultation
with Members directly affected'. Atmits tenth meeting the Comaittee also
considered a proposal by the Delegation of Cuba concerning a resolution
on1u1employment (F/rO1p.2/C.l/l9), but decided not to accept this pro-
p"sal (E/CONF.2/C.l/SR.l0).N
2. If shere is any suggestion (ae I hops there will not be) that the text
of the resolution should be appended to the report, you may wish to make
the following points against such a course:
(a) The text of the resolution recoamended by the Committee hts already
been acted upon and modified slightly by a Plenary Session of the
Conference - and, in fact, has already been transmitted to, and dealt
with by, the Economic and Social Council.*
(b) If a text were to be appended to the report of the First Committee,
which text should be attached? The text recommended by the First
Committeppor the text amfinally awnroved by the thirteenth Plenary
meeting of the Conference? If the former text were to be appended
it might be misleading since it would not contain the change intro-
duced by the Plenary Session. The latter text could not very well
be attached since it represents the result not of consideration by
* Incidentally, the Havana Post this morning incorrectly reported that the
Economic and Social Council in acting upon this resolution had directed its
recozrendEtions to the "Trade and SmploymentIConference in Havana". hn fact
the recommendations of the Economic and Social Council were addressed to the
"Economic and Employment Commission at Lake Success" as originally intended
in the resolution adopted by this Conference. - 2 -
the First Committee but of consideration by the Plenary Conference,
to which, in fact, this report is going. Accordingly, it is rather
hard to say how a text could be attached without either misleading
the Conference or taking over as the product of the First Committee
something which is in fact the product of the Conference itself,
(c) It will be noted from paragraph 6 of the report of the Fifth Com-
mittee, which also recommended a resolution to the Conference, that
a reference was merely made to the document in which that revolution
appeared and the text was not appended to the Committee report.
(d) In these circumstances it would seem sufficient to do as has been
done in paragraph 10 of our report: namely, to mention the exist-
ence of the resolution and refer to the action taken already by the
Conference, indicating the document number of the text as approved
by the First Committee and the number of the summary record of the
Plenary Session of the Conference at which this text was dealt with. |
GATT Library | vn222wt1491 | Sub-Committee C: Resolution on International Action Relating to Employment Third Meeting : Held in the Capitolio at 2.30 p.m. Saturday, 3 January 1948 | United Nations Conference on Trade and Employment, January 3, 1948 | First Committee: Employment and Economic Activity | 03/01/1948 | official documents | E/CONF.2/C.1/C/W.9, E/CONF.2/C.1/A/W.1, and C.1/C/W.1-11 | https://exhibits.stanford.edu/gatt/catalog/vn222wt1491 | vn222wt1491_90180296.xml | GATT_148 | 902 | 6,095 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE
ON DU E/CONF.2/C.1/C/W.9
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 3 January 1948 ORIGINAL: ENGLISH
FIRST COMMITTEE: EMPLOYMENT AND ECONOMIC ACTIVITY
SUB-COMMITTEE C: RESOLUTION ON INTERNATIONAL ACTION
RELATING TO EMPLOYMENT
THIRD MEETING
Held in the Capitolio at 2.30 p.m.
Saturday, 3 January 1948
The representative of Mexico expressed the view that the matter dealt
with in the draft submitted by his delegation (E/CONF.2/C.1/C/W.1) should
be the subject of a separate resolution.
The representative of Pakistan felt that the draft submitted by the
delegation of Mexico should be a separate resolution and that it should be
amended in the following respects:
In the first paragraph a comma should be inserted after the word
"migrate" and after the words "such countries", and the word "and"
before "contributing" should be deleted;
In the second paragraph "...but, on the contrary take place in
violation of migration regulations" should be deleted along with
"principally the workers' country of origin", and the word "those"
should be substituted for "such" in the clause "...and social interests
of such countries";
In the third paragraph the last part should be revised to read
"...without prior approval of the governments from whose territory
the workers proceed and into whose territory they migrate, unless
there is a contract between the respective governments establishing
fair and equitable conditions for all the contracting parties and those
affected by the contract";
A fourth paragraph should be added concerning permanent migration.
The Sub-Committee agreed that the Drafting Group to be established should
determine whether or not more than one resolution is required.
The representative of Italy, referring to the notes on the second meeting,
indicated that his remarks concerning the suggestion of the representative of
Brazil for amending or abbreviating the text proposed by his delegation should
/not be interpreted E/CONF.2/C.1/C/W.9
Page 2
not be interpreted as Implying that he necessarily favoured such changes.
After consideration of the information reported by the Secretariat
concerning the activities of the Interim Co-ordinating Committee for
International Commodity Arrangements and concerning the likely time at which
proposals for an Interim Commission for the ITO would come up for discussion
at the present Conference, the representative of Australia intimated
that it might be unnecessary to deal within the present resolution with
the question of greater stability in the prices of basic commodities,
although he could not say with certainty at this stage that it would be
unnecessary. The Chairman suggested that those parts of the draft
proposed by the delegation of Australia relating. to investment and to
the price of basic commodities might be covered by the reference to the
items contained in the London draft if the new resolution were to urge
that studies relating to these items be expedited and that the adequacy of
existing international machinery for dealing with such matters be
investigated and reported on.
The representative of Poland indicated that his draft laid greater
stress than some of the other drafts on the importance of international
measures. He explained this emphasis as due to the fact that, according
to misunderstanding, the present resolution was to be concerned with
"international. action relating to employment". Certain of the points raised
by other drafts had been omitted from his proposal for the reason that he
felt it desirable to confine the resolution to more general aspects, and.,
if necessary, to supplement such general resolution with separate
resolutions on specific aspects. He felt that his draft also differed
from the other drafts in the following respects:
(a) It made a distinction between full and productive employment and
merely full employment;
(b) His draft also distinguished between the problems of economies
possessing productive resources in well-balanced proportions and those
with ill-balanced combinations of such resources;.
(c) His draft also laid stress on the positive objective of maintaining
employment rather than on mere preventive measures; .
(d) His draft propose that th especialized agencies should take
account nof the plans and suggestions of member states and make their
recommendatlons in the light of those plans and suggestions
The representaftive of the United Kingdom felt that the resolution would
lose iits point it were not to be directed at specific problems of
particular concern to the Conference. She thought that the resolution
might contain its preamble an indication of the interest and concern
of the ITO in the general problem but that its recommendations should. be
/concentrated E/CONF. 2/C.1/C/W.9
Page 3
concentrated on specific points.
Note was also taken of the communication from the delegation of Denmark
(E/CONF.2/C.1/C/W.6) concerning the need for co-ordination of governmental
policies during periods when inflation is threatening or when governments are
taking steps to prevent an outside inflation from entering their country.
At the conclusion of the discussion the Chairman appointed the
representatives of Australia, Mexico and the United kingdom to constitute
a Drafting Group for the purpose of preparing, for consideration by the full
Sub-Committee, the text of a resolution, or of more than one resolution
if necessary, taking into account the points raised by the various proposals
in the light of the discussion of those points in the Sub-Committee. It
was agreed that the Drafting Group would meet in Room 2-2 at the Orthopeodic
Hospital at 9.00 a.m., Monday, 5 January, and again at 3.00 p.m. at the
Capitolio; and that the full Sub-Committee would meet to receive the report
of the Drafting Group at 5.45 p.m., Wednesday, 7 January. |
GATT Library | rv285js1168 | Sub-Committee D (Articles 40, 41 and 43) | United Nations Conference on Trade and Employment, January 27, 1948 | Third Committee: Commercial Policy | 27/01/1948 | official documents | E/CONF.2/C.3/D/W.12 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/rv285js1168 | rv285js1168_90190532.xml | GATT_148 | 3,418 | 21,893 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies RESTRICTED
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
E/CONF. 2/C. 3/D/
W.12
27 January 1948
ORIGlNAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE D (ARTICLES 40, 41 AND 43)
1. The Draft Report to be presented to Committee III is attached for
discussion and approval by the Sub-Committee.
2. The Sub-Committee has agreed that the principle of the proposal of the
United Kingdom delegation relating to paragraphs 1 (a), 1 (b) and 3 (b)
incorporated in an interpretative note to the text of Article 40, its wording
to be decided at the next meeting.
The following alternatives have been suggested as a basis for discussion:
A. "Any suspension of obligations or withdrawal or modification of
concessions in accordance with paragraphs 1 (a), l((b) and 3 (b)
of this Article shall be on a non-discriminatory basis consistent
with the provisions of Articles 16, 22 and 39, and shall not
extend to any of the obligations arising under these Articles."
B. "It is understood that any suspension, withdrawal or modification
under paragraphs 1 (a), 1 (b) and 3 (b) would have to apply to
imports from all countries, on a basis which does not discriminate
against imports from any Member."
3. The principle of the Norwegian amendment to the final paragraph of
Article 43 having been agreed, two alternative drafts of the affected passage
have been included in the Draft Report as a. basis for discussion.
/DRAFT REPORT OF
.. . E/CONF.2/C. 3/D/W.12
Page 2
DRAFT REPORT OF SUB-COMMITTEE D ON ARTICLES 40, 41 AND 43
1. The Third Committee at its seventeenth meeting on 22 December 1947
approved the formation 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-Committee 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 those amendments to
Article 42 which affected the question of preferences and were referred to
the Joint Sub-Committee of Committees II and 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 Committee adopts
a recommendation by the Joint Sub-Committee of Committees II and III to refer
to that Sub-Committee also those proposals 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 meetings. Delegates for several countries
not members of the 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 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.
/SPECIAL COMMENTS E/CONF.2/C. 3/D/W.12
Page 3
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 question was raised whether, in taking action under paragraph 1 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 measures 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 tihe 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 elimination of a quantitative restriction existing prior
to the adoption of the Charter might lead 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 laws or regulations of a Member. -
In view of the broad scope of paragraph 1 of Article 40, as illustrated
above, the amend6n proposed by the. dele1gation of Cuba (C. 3l/dd. 22) was
withdrawn.
11. In sub-paragraph 1 (a) the word "relatively" was cinserted between "suh
increased" and "quantities" so as to express clearly that in assessing the
effect of unforeseen developments and of the obligations entered into by
Members, account may be had for any other circumstances which having arisen
in the meantime are affecting the volume of imports.
12. The Sub-Commttee was unable to accept a proposal to delete
sub-paragraph 1 (b).
13. The Sub-Committee shared the doubts expressed by the delegation of
Argentina aeto the exact meaning of the word "critical" in paragraph 2 and
/recommcdd E/CONF.2/C.3/D/W.12
Page 4
recommends its substitution by the words "of special urgency" to follow after
"circumstances".
14. 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
15. 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 F
and might properly be discussed in relation to Article 18. The proposal of
the Working Party composed of the representatives of Colombia and the United
States to recommend 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
16. 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 examination by the
Central Drafting Committee.
Article 43 - General Exceptions to Chapter IV
17. 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 general practice followed
elsewhere.
18. Upon recommendation of Sub-Committee 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".
19. 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
objectives was covered for short-term purposes by paragraph I of Article 40
and for long-term purposes by Article 4 in combination with Articles 89 and
90.
20. 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.
21. Upon recommendation of Committee V a further exception was inserted for
measures taken under inter-governmental agreements for the conservation of
/fisheries E/CONF.2/C.3/D/W.12 Page 5
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 separate or might be incorporated in the present sub-paragraph (x),
previously (h). .
22. 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.
23. 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.
24. 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.
25. In sub-paragraph (b) (i), 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, but from agreements of
a wide and general character, and the change was made so as to express this
intention more accurately.
26. The Sub-Committee in considering sub-paragraph (b) (ii) and (iii),
formerly II (b) and (c), agreed that the words "the wart 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.
27. 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.
28. The Sub-Committee decided to recommend that, instead of including a
definite date in the final paragraph, the Organization should be authorized
/to specify E/CONF, 2/C 3/D/W.12
Page 6
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. E/CONF. 2/C. 3/D/W.12
Page 7
ANNEX
Article 4o
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 Chaptor,
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 a concession with respect
to a preference, is being imported into the territory of a Member in the
circumstances set forth in sub-paragraph (a) of this paragraph, so as
to cause or threaten serious injury to domestic producers of like or
directly competitive products in the territory of a Member which
receives or received such preferences, 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] circumstaces 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
/of thirty days E/CONF. 2/C. 3/D/W. 12
Page 8
of thirty days from the day on which written notice of such suspension
is received by the Organization, the application to the trade of the
Member taking such action, or, in the case envisaged in paragraph 1 (b)
of this Article to the trade of the Member requesting such action, of
such substantially equivalent obligations or concessions under this
Chapter, the suspension of which the Organization does not disapprove.
(b) Notwithstanding the provisions of sub-paragraph (a) of this
paragraph, where action is taken under paragraph 2 of this Article without
prior consultation and causes or threatens serious injury in the
territory of a Member to the domestic producers of products affected
by the action, that Member shall, where delay would cause damage
difficult to repair, be free to suspend, upon the taking of the action
and throughout the period of consultation, such obligations or
concessions as may be necessary to prevent or remedy the injury.
4. Nothing in this Article shall be 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
Consultation
Each Member shall accord sympathetic consideration to, and shall afford
adequate opportunity for consultation regarding such representations as may
be made by any other Member with respect to the operation of customs
regulations and formalities, anti-dumping and countervailing duties,
quantitative and exchange regulations, internal price regulations, subsidies,
practices and regulations affecting the freedom of transit, state-trading
operations, sanitary laws and regulations for the protection of human,
animal or plant life or health, and generally all matters affecting the
operation of this Chapter.
Article 43
General Exceptions to Chapter IV
1. Subject to the requirement that such measures are not applied in a
manner which would constitute a means of arbitrary or unjustifiable
discrimination between countries where the same conditions prevail, or a
disguised restriction on international trade, nothing in this Chapter shall
be construed to prevent the adoption or enforcement by any Member of
measures: /[1.] (a) [(a)] E/CONF. 2/C . 3/D/W. 12
Page 9
[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
provisions of this Chapter, including those
relating to customs enforcement, the enforcement
of monopolies operated under Section D of this
Chapter, the protection of patents, trademarks
and copyrights, and the prevention of deceptive
practices;
[(e)] (vi) relating to the products of prison labour;
[(f)] (vii) imposed for the protection 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;
(ix) undertaken in pursuance of any inter-governmental
agreement relating solely to the conservation of
fisheries, resources, migratory birds and wild
animals; Provided that these measures are subject
to the requirements of paragraph 1 (d) of
Article 67;
[(h)] (x) undertaken in pursuance of [obligations under]
the terms of inter-governmental commodity
agreements concluded in accordance with the
provisions of Chapter VI; or
[(i)] (xi) involving restrictions on exports of domestic
materials necessary to assure essential
quantities of such materials to a domestic
processing industry during periods when the
domestic price of such materials is held below
the world price as part of a governmental
stabilization plan; Provided that such
/restrictions shall
. E/CONF .2/C. 3/D/W.12
Page 10
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)] (i) Essential to the acquisition or distribution of
products in general or local short supply;
Provided that any such measures shall be
consistent with any [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
consultation with other interested Members with
a view to appropriate international action.
2. Measures instituted or maintained under paragraph [II] 1 (c) of this
Article which are inconsistent with the other provisions of this Chapter
shall be removed as soon as conditions giving
Alternative 1
"..... rise to them have ceased and in any event not later than at
a date to be specified by the Organization; Provided that such date
may be deferred for a further period or periods, with the concurrence
of the Organization, either generally or in relation to any
measures taken by all or any Members in respect of some or any
products."
/Alternative 2 E/CONF .2/C.3/D/W.12
Page 11
Alternative 2
"..... rise to them have ceased; Provided that the Organization may
specify a date or dates by which the application shall be
discontinued either of all such measures, or of any measures taken
by all or any Members in respect of some or any products." |
GATT Library | nk936qg9826 | Sub-Committee F (Articles 21, 23 and 24) | United Nations Conference on Trade and Employment, January 5, 1948 | Third Committee: Commercial Policy | 05/01/1948 | official documents | E/CONF.2/C.3/F/1 and E/CONF.2/C.3/E-J | https://exhibits.stanford.edu/gatt/catalog/nk936qg9826 | nk936qg9826_90190376.xml | GATT_148 | 73 | 692 | United Nations Nations Unies
CONFERENCE CONFERENCE UNRESTRICTED
ON DU E/CONF.2/C.3/F/1
5 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE F (ARTICLES 21, 23 AND 24)
Committee III has appointed a Sub-Committee with the following
membership to examine the proposals on Articles 21, 23 and 24:
Membership
Argentina
Australia
Belgium
Brazil
Canada
Cuba
Czehoslovakia
France
Grecee
India
Italy
Lebanon
Liberia
Norway
Philippines
United Kingdom
United States |
GATT Library | pz859ss3607 | Sub-Committee G of Committee III (on the Swiss proposal) | United Nations Conference on Trade and Employment, January 5, 1948 | Third Committee: Commercial Policy | 05/01/1948 | official documents | E/CONF.2/C.3/G/1 and E/CONF.2/C.3/E-J | https://exhibits.stanford.edu/gatt/catalog/pz859ss3607 | pz859ss3607_90190390.xml | GATT_148 | 133 | 1,030 | United Nations Nations Unies
UNRESTRICTED
CONFERENCE ON CONFERENCE DU
. ONF/CM. 2.C *3/G/1
TRADEd AD EMPMLOYENT OMMER CCE ET D'E LEOIMPL January 5 1948
GINAL: EN;LKGHS
HIRTDCO MMTTEEI: OCMERMIACL PLIOYC
UBS-COMMITTE GE O F CMMITOEETIII ON THE( WISS SPRPOOSAL)
Committee III has appointed a Sub-Committee with the following terms
of reference nda membership:
Terms of Reference
To consider the proposal of the Swiss Delegation (Reference
E/CNFO. 2/C. 311/) that the following new paragraph be inserted in Chapter IV:
"A Member, unable to invoke the provisions of Article 21 and
findthat 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".
Membership
Belgium
China
France
Poland
Sweden
Switzerland
United Kingdom
United States
Uruguay
Venezuela |
GATT Library | zj661dz2527 | Sub-Committee 'H' of Committee III on Section C - Subsidies | United Nations Conference on Trade and Employment, January 8, 1948 | Third Committee: Commercial Policy | 08/01/1948 | official documents | E/CONF.2/C.3/H/1 and E/CONF.2/C.3/E-J | https://exhibits.stanford.edu/gatt/catalog/zj661dz2527 | zj661dz2527_90190401.xml | GATT_148 | 135 | 958 | United Nations
CONFERENCE
ON
TRADE AND EPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTD
E/CONF.2/C .3/H/1
8 January 1948
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
SUB-COMMITTEE 'H' OF COMMITTEE III ON SETION C - SUBSIDIES
At its Twenty-Seventh Meeting on 7 January 1948 Committee IIIb
appointed a Sub-Committee on Section C of Chapter IV with the following
terms of reference and membership:
Terms of Reference
1. 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 these proposed amendments in
Committee IIIb; and
2. To recommend texts to reconcile the various points of view
expressed.
Membership
Argentina
Australia
Brazil
Canada
Cuba
Denmark
France
Netherlands
Peru
Philippines
Sweden
Turkey
United Kingdom
United States
Venezuela |
GATT Library | gw314bx6645 | Sub-Committee I. Amendment to Article 94 proposed by the Unted Kingdom Delegation | United Nations Conference on Trade and Employment, January 16, 1948 | Sixth Committee: Organization | 16/01/1948 | official documents | E/CONF.2/C.6/W.48 and E/CONF. 2/C. 6/W/41-80 | https://exhibits.stanford.edu/gatt/catalog/gw314bx6645 | gw314bx6645_90200159.xml | GATT_148 | 544 | 3,560 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/W.48
ON DU
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 16 January 1948
ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
SUB-COMMITTEE I
AMENDMENT TO ARTICLE 94 PROPOSED BY THE UNTED KINGDOM DELEGATION
Note: For the sake of completeness the text below includes the
amandment proposed by the Working Party of the Joint Sub-
Committee of the Fifth and Sixth Committees as paragraph
1 (c) (see E/CONF.2/C.5&6/W.3) and the text of Sub-
Committee I as paragraph 3 (See E/CONF.2/C.6/W.44). Only
the new wording now proposed, by the United Kingdom
delegation is underlined in this text.
ARTICLE 94 GENERAL EXCEPTIONS
1. Nothing in this Charter shall be construed:
(a) to require a[ny] Member to furnish any information the disclosure of'
which it considers contrary to its essential security interests; or
(b) to prevent a[ny] Member, either singly or with other Members, from.
taking any action which it considers necessary for the protection of
its essential security Interests; where such action
(1) relat [ing]es to fissionable materials or the materials from,
which they are derived;
('il) relat[Ing]es to the treffic in arms, ammunition and implements
of war and to such traffic in other goods and materials as is
carried on directIly or indirectly for the purpose, of supplying
a military establieshment of the Member or of any other country;
(iii) [taken] is taken in time of war or other emergency in
international relations; or
(c) to prevent a[ny] Member from entering into or carrying out any
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; or
(a) to prevent a Member from taking any ac tion in connection, with any
matter which has been brought before the United Nations in accordance
with the provisions of Articles 10, 11 or 14 of Chapter IV of the
/Charter 01 E/CONF. 2/C.6/W. 48
Page 2
Charter of the United Nations, provided that the matter relates to the
maintenance of international peace and security or to the avoidance
of political friction between States, or in accordance with the
provisions of Chapter VI of the United Nations Charter.
2. If any action taken by a Member under paragraph 1 of this Article nullfies
or impairs any. benefit accruing to another Member directly or indirectly the
procedure set forth in Chapter VIII of this Charter shall apply and the
Organization may authorize such other Member to suspend the application to
the Member taking the action of such obligations or concessions under or
pursuant to. this Charter as the Conference deems appropriate; provided that
where the action is taken under paragraph 1 (d) of this Article the procedure
set forth in, Chapter VIII of this Charter shall not apply until the
United Nations has made recommendations on or otherwise disposed of the matter.
3. Nothing in this Charter shall override.
(a) any of the provisions of psace treaties in force which were registered
with the League of Nations or which are registered with the United Nations,
or
(b) any of the provisions of special regimes established by the .
- United Nations for separate territories. |
GATT Library | zm598sr6037 | Sub-Committee I (Article 94). Notes of the Eighte Meeting. : Held et 4.00 p.w. Saturday, 28 February 1948 | United Nations Conference on Trade and Employment, March 1, 1948 | Sixth Committee: Organization | 01/03/1948 | official documents | E/CONF./2/C.6/W.123 and E/CONF. 2/C. 6/W. 119-126 C. 6/J/WHITE PAPERS | https://exhibits.stanford.edu/gatt/catalog/zm598sr6037 | zm598sr6037_90200257.xml | GATT_148 | 469 | 3,185 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CPMF/2C.6/W/123
ON DU 1 March 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI PROGOMA: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
SUB-COMMITTEE i (ARTICLE 94)
NOTES OF THE EIGHTE MEETING
Held et 4.00 p.w. Saturday, 28 February 1948
Chairman: Mr. GOMEZ-ROBLES (Guatemala)
Changes in the Notes on the Preceding Meeting
At the suggestion of the representative of South Africa, in agreement
with the representative of the United Kingdom, the following paragraph is
to be added to the notes of the previous meeting:
"The representative of the United Kingdom Delegation, as the
proposer of the new article, was asked whether in his opinion it would
permit a Member, in the defined circumstances, to take unilateral
economiq sanctions. He. replied that if this article were included. in
the Charter, the Charter would neither permit, nor condemn, nor paso
eny judgment whatever on, unilateral economic sanctions."
The representative ôf India, with the concurrence of the Sub-Committee,
requested that in the text of the "Annex" included in the notes of the
preceding meeting the word "arrangements" should be changed to "agreements"
in the first sentence, as it had been changed in the second sentence.
Continuation of Discussion Regarding the Proposed New Article on "Relations
with the United Nations"
The representative of South Africe introduced- tbe amendments proposed
by his delegation regarding the paragraph of the article dealing with
"political matters". The amendments were not accepted by the Sub-Committee,
Concerning the proposal by the representative of Australia to modify
-the paragraph in order to leeve the provision somewhat open for discussion
during negotiations with the United Nations regarding the agreement on
relationships, several members of the Sub-Committee expressed the view that
it would be unsatisfactory to leeve the question in such an uncertain state.
The Sub-Committee agreed., however, to insert in its report a note to the
effect that certain changes might be required in the draft terms of reference
of the Interim Commission, including, a change in the reference to
/"paragraph 1 E/CONF 2/C.6/W.123
Page 2
"paragraph 1 of Article 84
The Sub-Committee then proceeded to a discussion of the United Kingdom
text of the new article es revised in the preceding meeting. A majority of
the Sub-Committee expresed support for the text. The representatives of
the United Kingdom, India, Iraq, end South Africa requested the inclusion
of certain statements and observations in the report of the Sub-Committee
which the Secretariat was requested to prepare in draft form for
consideration at the next meeting. In addition, the representative of India
requested. that the notes on this meeting of the Sub-Committee should indicate
that the approval by his Delegation of the text of the new article was
without prejudice to paragraph 3 of the new article having the same effect
as if it were an exception embodied in Article 94. |
GATT Library | gg789qb5210 | Sub-Committee I (Article 94). Notes of the Fifth Meeting. : Held at 3.00 p.m. Saturday, 7 February 1948 | United Nations Conference on Trade and Employment, February 10, 1948 | Sixth Committee: Organization | 10/02/1948 | official documents | E/CONF.2/C.6/W.95 and E/CONF. 2/C. 6/W. 81-118/ADD. 1 | https://exhibits.stanford.edu/gatt/catalog/gg789qb5210 | gg789qb5210_90200219.xml | GATT_148 | 322 | 2,221 | United Nations Nations Unies RESTRICTED
CONFERENCE E/CONF.2/C.6/W.95
CONFERENCE 10 February 1948
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
SIXTH COMITTEE: ORGANIZATION
SUB-COMMITTEE I (ARTICLE 94)
NOTES OF THE FIFTH MEETING
Held at 3.00 p.m. Saturday, 7 February 1948
Chairman: Mr. Luis D. TINOCO (Costa Rica)
The Sub-Committee discussed a proposal by the United Kingdom delegation
to deal with the subjects covered by paragraphs 1 (d) and 2 of the text
suggested earlier by that delegation (E/CONF.2/C.6/W.48) in a new Article
on "Relations with the United Nations" rather than in Article 94.
The Sub-Committee agreed with the suggestion that matters involving
relationships with the United Nations should, so far as possible, be grouped,
in a single Article in Section G of Chapter VIII if a satisfactory text
could be devised.
The Sub-Committee agreed also with the suggested inclusion in such an
Article of paragraphs 1, 2 and 4 or the new text proposed by the
United Kingdom delegation. It was notod that the substance of these
paragraphs corresponded to, or was consistent with, paragraph (e) of
Article 69, paragraph 1 of Article 84, and paragraph (c) of Article 94, in
the Geneva text.
* With reference to paragraph 3 of the United Kingdom proposal, there was
a preliminary discussion of certain questions involved in an interpretation
of the words "a measure which is directly related to a political matter...".
There was also some discussion of the significance of the words brought
before the United Nations". A further question was raised as to the position
of a Member which might not be a party to, or even concerned with, the
political natter in question but which might nevertheless be affected by a
measure taken by another Member in relation to that political matter.
Following a preliminay discussion of these points, the Sub-Committee
adjourned to reasume its consideration of these matters after certain members
of the Sub-Committee could consult their Governments. |
GATT Library | pm901zp4754 | Sub-Committee I (Article 94). Notes of the First Meeting. : Held Tuesday, 7 January 1948, at 10.30 a.m | United Nations Conference on Trade and Employment, January 9, 1948 | Sixth Committee: Organization | 09/01/1948 | official documents | E/CONF.2/C.6/W.26 and E/CONF. 2/C. 6/W. 1-40 | https://exhibits.stanford.edu/gatt/catalog/pm901zp4754 | pm901zp4754_90200134.xml | GATT_148 | 624 | 4,238 | United Nations Nations Unies
RESTRICTED E/CONF.2/C.6/W.26
CONFERENCE CONFERENCE 9 January 1948
ON DU
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLIS
SIXTH COMMITTEE: ORGANIZATION
SUB-COMMITTEE I (ARTICLE 94)
NOTES OF THE FIRST MEETING
Held Tuesday, 7 January 1948, at 10.30 a.m.
Chairman: Mr. TINOCO (Costa Rica)
1. Mr. TINOCO (Costa Rica) was unamimously elected Chairman of the
Sub-Committee.
2. The Sub-Committee prcoeeded with the examination of amendments to
Article 94. The CHAIRMAN noted that there was no amendment to paragraph (a).
3, In. paragraph (b) (i) it was agreed to insert the words "either singly or
with other Members" after the word "Member".
4. Paragraph (b) (ii)
Mr. McCARTHY (Australia) said that the plurpose of the Australian comment
was to assure that military establishments maintained or controlled by another
country would be included in the scope of the provisions as well as those
Maintained by the Member itself. The scope of the expression of goods and
materials" in. sub-paragraph (ii) should cover raw materials used for the
production of goods for military purposes.
In the discussion some representatives considered that the amendments was
too wide and preferred to maintain the present text with an interpretative
note to be included in the Charter or incorporated in the records of the
Committee VI. As far as the word 'traffic" was concerned some representatives
maintained a narrow indterpretation covering only those movement of goods across
frontiers, while others considered that the term related to the procurement
as well as the movement of goods.
5. Mr. STINEBOWER (United States) announced the intention of his Delegation
to propose in Joint Sub-Committee Five and Six additions of a now paragraph (c)
between the present paragraphs (b) and (c) of Article 94. This new exception
to Article 94 would cover the original United States proposal to Article 67
to exclude from Chapter VI inter-governmental commodity agreements relating
to national security.
The Sub-Committee established a Working Party composed of the representative:
of Australia, Czechoslovakia, Pakistan, United Kingdom and United. States to
/examine the E/CONF.2/C .6/W. 26
Page 2
examine the Australian proposal.
6. New paragraph proposed by the delegation of India to be included
between paragraphs (b) and (c) (see page 2 of document E/CONF.2/C.6/W/23.
Mr. KARMARKAR (India) considered that actions taken by Members to protect
essential national interests and which aree taken on other than commercial
grounds should be exompted from the acopo of the Charter.
Some representatives falt that consideration of political interests fell
within the scope of the United Nations and was outside the scope of the Trade
Organization. One representative;cosidered that while consideration of
political interests was outside the Trade Charter, the Organization should be
able to examine whathor Members were not trying to cover economic interests
under disguise of political interests. Some representatives felt that in
case of consultation or complaint under Articles 89 or 90, relating to action
taken under Article 94, the Organization could not inquire further, once the
Members taking the action, declared that its essential security interests
were involved. Some representatives felt that the particular situation referred
to by the representative of India, was already covered by paragraph (c). Others
considered that paragraph (b) (iii) would apply or that a small readraft of
paragraph (b) (iii) would cover the situation.
M r. KARMAMRÉ (India) explained that the situation he had in mind involved
an emergency in international relations" in the sense of paragraph (b) (iii)
but doubted that it could be regarded as affecting the essential security".
interest of his country, and hence might not come fully within that paragraphs.
In connection with paragraph (c), he noted that the General Assemaby of the
United Nations had given consideration to the situation. He felt that some
clarification had been provided by the discussion. |
GATT Library | rf500pb7725 | Sub-Committee I (Article 94). Notes of the Fourth Meeting | United Nations Conference on Trade and Employment, January 22, 1948 | Sixth Committee: Organization | 22/01/1948 | official documents | E/CONF.2/C.6/W.60/Corr.1 and E/CONF. 2/C. 6/W/41-80 | https://exhibits.stanford.edu/gatt/catalog/rf500pb7725 | rf500pb7725_90200177.xml | GATT_148 | 124 | 841 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPOI
RESRICTED
E/CONF.2/C.6/W.60/
Corr.1
22 January 1948
ENGLISH - FRENCH
ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
SUB-COMMITTEE I (ARTICLE 94)
NOTES OF THE FOURTH MEETING
In the text of the preamble of sub-paragraph 1 (b) to which the
Sub-Committee has provisionally agreed, the words "whether such action"
should read "where such action",
SIXIEME COMMISSION ORGANISATION
SOUS-COMMISSION I (ARTICLE 94)
NOTES DE LA QUATRIEME SEANCE
Dans le texte du début de l'alinéa 1 (b) que la Sous-Commission a
provisoirement adopté, lire "lorsque ces measures" et non "soit que ces
measures .
A l'alinéa ii), supprimer le premier mot "ou".
A Italinéa iii), lire "sont prises" au lieu de "ou qu'elles soient
prises". |
GATT Library | bt717bp3563 | Sub-Committee I (Article 94). Notes of the Fourth Meeting. : Held Saturday 17 January 1948 , at 6.00 p.m | United Nations Conference on Trade and Employment, January 2, 1948 | Sixth Committee: Organization | 02/01/1948 | official documents | E/CONF.2/C.6/W.60 and E/CONF. 2/C. 6/W/41-80 | https://exhibits.stanford.edu/gatt/catalog/bt717bp3563 | bt717bp3563_90200176.xml | GATT_148 | 1,127 | 7,313 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/W.60
ON DU 2 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
SUB-COMMITTEE I (ARTICLE 94)
NOTES OF THE FOURTH MEETING
Held Saturday 17 January 1948 , at 6.00 p.m.
Chairman Mr. Luis TINOCO (Costa Rica)
The Sub-Committee took as a basis for discussion the text given in
E/CONF.2/C..6/W.48. The. numbering of paragraphs referred. to below, unless,
Otherwise indicated relates to the numbering used in that .document.
1. Paragraphs 1 (a) and. (b)
The Sub-Cmmittee provisiomally agreed to the following text,- subject to
a statement by the representative of Czechoslovakia that his delegation
reserved the right to raise in the full Committee the question of changing
"a Member" to "a Member State" in the Preamble of paragraph (b):
"'1. Nothing in this Charter shall be construed
(a) to require a Member to furnish any information the disclosure
of which it considers contrary to its essential security interests;
or-
(b) to prevent a Member from taking, either singly or with other
States, amy action which it considers necessary for the protection
of its essential security interests; whether such action
*(1) relates to fissionable materials or the materials from
which they are derived;
(ii) relates to the traffic in arms, ammunition and implements
of war and to such taffic in other goods and materials as
ç-- is carried. on direcaly or indirectly for the purpose of
supplying a military establishment of ta Member or of any
other country;
(iii) is taken in time of war or other emergency in international
relational or"
2. Paragraph 1 - . (c)
The Sub-Committee noted the- text for this paragraph which had been
recommended by the. Joint Sub-Committee of Committees V and VI (E/CONF.2/C.5/14).
There was no dlscussion of, the text. The Sub-Committee deferred consideration
/of the question E/CONF.2/C.6/W.60
Page 2
of the question of including the word "solely" before "for the purpose of...."
(see paragraph 7 of E/CONF.2/C.5/14).
3. Paragraph 1 (c) of the Geneva Draft
The representative of the United Kingdom expressed the view that this
paragraph was not necessary since its purpose was already covered by
Articles 25 and 103 of the United Nations Charter and by paragraph 2 of
Article 84 or the Draft ITO Charter. No conclusion was reached by the
Sub-Committee on the retention or deletion of this paragraph pending
consideration of the subsequent paragraphs as amended by the United Kingdom
proposal,
4. Paragraphs 1 (d) and. 2
The representative or Iraq suggested that the text proposed by the
United Kingdom as sub-paragraph (d) should be considered as sub-Paragraph (e)
and that the following new sub-paragraph (d) should be added in substitution
for the amendments on this. subject previously proposed by the Delegation of
Iraq
"(d) to prevent a Member from maintaining any measure instituted prier
to its accepted of the Charter for the purpose of meeting the
essential requirements of its national security."
The representative of India indicated that he would be prepared to
consider such an amendment. The representatives of several delegations felt
that the effect of adopting the amendment now proposed by the representative
of Iraq would be to cancel, sub-paragraphs (i), (ii) and (iii) of (b). The
representative of Australia suggested that the representative or Iraq might
consider further whether the exception might not be narrowed and still cover
the specific problem with which it was intended to deal. The representative
of Iraq asked for deferment of the discussion of his proposal pending
consideration by hig Delegation of the views expreesed In the Sub-Committee,
and particularly of the suggestion made by the representative of Australia.
With reference to the proposal of Iraq and the United Kingdom, concerning
a sub-paragraph (d), the representative of Czechoslovakia felt that, if these
matters were to be discussed .urther, the question or including provisions on
these lines should be referred. to the Security Council.
Concerning the version of sub-paragraph (d) proposed by the United Kingdom,
the representative of India felt that the word "action" should, be qualified by
some such words as "relating to the subject matter covered, by the present
Charter' , in order to make it clear that the "action" referred to was economic.
rather than political or military. With reference to the earlier remarks of
the representative of Czechoslovakia, he doubted that the taking of economic
action could. be regarded as necessarily infringing Article .2 of the
United. Nations Charter, He suggested also that the end of the sub -paragraph,
/beginning with E/CONF.2/C.6/W.60
Page 3
beginning with the worded "provided that...", should be replaced by "provided
that the matter relates to the subject matter of Articles 10, 11 or 14 of the
Charter of the United Nations".
On an inquiry from the representative of the Union of South Africa, the
representative of the United Kingdom indicated that the words "in connection
with" were intended to qualify "action" and to limit it to action directly
related to the matter brought before the United Nations and that accordingly
he would be prepared to substitute the words "which is directly related to" for
"in connection with".
The representative of the United States, in commenting in a preliminary
manner on the proposal by the United Kingdom, felt that it was unnecessary
to have the first five lines of paragraph 2 in the actual text of the present
Article, since they in effect were a repetition of paragraph (b) of Article 59.
He doubted also the practicability of the proviso in the proposed paragraph 2.
He observed that it might be difficult to determine when the United. Nations
has "otherwise disposed of" a matter. He indicated that he would wish some
tine to consider the United Kingdom proposal before commenting formally.
The representative of the United Kingdom indicated. that he would be
agreeable to having the applicability of Articles 89 and 90 written into the
record rather than incorporated. in the actual text of Article 94, He observed
that the pro-riso suggested in paragraph 2 was not intended to exclude the ITO
from, participation in the ultimate solution of a matter after the
United. Nations had acted, He agreed that the language of the proviso might
be improved to make more clear at what stage the procedure of Chapter VIII
would come into operation.
- The repressentative of India expressed. some doubt whether under the
proposed new paragraph 2 the bona fides of an action allegedly coming within
Article 94 could be questioned and also whether such an action could be
countered collectively by Members of the Organization or only by affected
Members individually. He thought that the intention was to confine such
counteraction to compensatory action and not to include punitive action. He
indicated that his delegation would be prepared. to consider the proposed. new
paragraph. |
GATT Library | fn689dk2144 | Sub-Committee I (Article 94). Notes of the Second Meeting. : Held Saturday, 10 January 1948, at 10.30 a.m | United Nations Conference on Trade and Employment, January 10, 1948 | Sixth Committee: Organization | 10/01/1948 | official documents | E/CONF.2/C.6/W.32 and E/CONF. 2/C. 6/W. 1-40 | https://exhibits.stanford.edu/gatt/catalog/fn689dk2144 | fn689dk2144_90200141.xml | GATT_148 | 1,248 | 8,207 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/W.32 10 January 1948
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
SIXTH COMMITTEE: ORGANIZATION
SUB-COMMITTEE I (ARTICLE 94)
NOTES OF THE SECOND MEETING
Held Saturday, 10 January 1948, at 10.30 a.m.
Chairman: Mr. TINOCO (Costa Rica)
1. Proposals by tha Delegations of India and Iraq Concerning the "Essential
Interest" of a Member.
The CHAIRMAN suggested informally for consideration by the Sub-Committee,
ln connectlon with the proposals of India and Iraq, that the following
paragraph might be added:
"(c) to compal any Member which has suspended its trade relations
with any other country [Member] for reasons other than economic, to
re-establish such relations, provided that it has notified the
Organization of its decision to suspend such trade [Commercial]
relations ."
Water some preliminary comments by individual members of the
Sub-Committee, discussion of these matters was deferred until the next
On the question raised by the original amendments of Iraq and India,
the representative of Czachoslovakia felt that any provision of this sort
would be out of place in the Charter if its inclusion meant authorization
for a Member to take Justice into its own hands if it felt that it had
suffered some injury. The representative of Iraq declared that his reason
for proposing such a provision bad not been to legalize any measure or
course of action but merely to prevent them from being declared illegal
in the ITO Charter; in other words, his intention was to have the Charter
remain silent on the question of the legality or illegality of essentially
political measures, leaving the determination to the appropriate organ of
the United Nations or other competant authority.
The representative of India felt that It was necessary, to determine
at an early stage whether the article was to cover "security interests",
"political interests", or "the essential interested" of a Member. In view
.of the difficulty of defining the first two termed, he felt that the last
term might be the most appropriate. He thought it would be relevant to any
/discussion E/CONF.2/C.6/W.32
Page 2
discussion of the appropriate term to-reach some understanding on the
applicability of Articles 89 and 90 to action represented as falling within
Article 94. If such action is subject to the procedures of Articles 89 and 90
it would be open to other Members or to the Organizatian to inquire into the
purpose for which the action was taken and, accordingly, to take or authorize
counter action if at the time it appeared that the provisions of Article 94
were being abused. The knowledge of the possibility oa such counter action
would serve as a deterrent to any misuse of the exceptions. The CHAIRMAN
remarked that the relationship between Articles 89 and 94 was being considered
by Sub-Committee G of Committe VI and that it night be examined by the
present Sub-Committee towards the end of its work when the nature of
Article 94 would have become more clearly defined.
In connection with the discussion of this item the representative of the
United States indicated that it might also ba necessary to introduce an
amendment into Article 43 to cover action necessary to the enforcement of
police measures or other laws relating to public safety". Several members
expressed their agreement with this proposal.
2. Proposals by the Delegation of Costa Rlca Concerning Readjustment of
Specific Duties in Case of Legal Devaluatian of two Importer's Currency.
and Concerning the Maintenance of Existing Monopolies
The representative of Costa Rica indicated that hie delegation withdrew
these two amendments since, in its judgment, their purpose was already being
taken care of in the discussion of other provisions of the Charter in another
committee.
3. Proposal by the Delegation of India Concerning the Spacial Situation of
India and Pakistan as Newly Established Independent States
The representatives of India and Pakistan felt. it would be agreeable to
them, as suggested by some members of the Sub-Committee, that the words
"...pending the establishment of their mutual trade relations on a definitive
basis" be added at the end of the proposed paragraph as in the General
Agreement on Tariffs and Trade, and. that the sense of the interpretative
note included in the General Agreement might be recorded. in some appropriate
manner. The representative of the United States noted that comparable
provisions in the General Agreement had appeared in connection vith the
article an "Territorial Application - Frontier Traffic - Customs Unions"
rather than with the article on "Security Exceptions". He felt that it might
be desirable to consult with Committee III concerning the provision. The
representative of India observed. that his delegation had suggested the
insertion of the provision at the present point in ordor that it should not
intrude into the more specific provisions elsewhere in the Charter,
particularly as this provision would be of a relatively temporary character.
/The representative E/CONF.2/C.6/W.32
Page 3
The representative of India requested an opportunity to consult with his
delegation on the suggestions which had been made and the points which had
been raised.
4. Proposal by the Delegation of Czechoslovakia Concerning the treaties of
Peace and Concerning Special Regimes Established. by the United Nations
for Separate Territories.
The representative of Czochoslovakia explained that his proposal had. been
made for the purpose of making it clear that nothing in tho Charter was to be
regarded as overriding in any sense the provisions of the peace treaties or
arrangements which might be made under the United Nations for special regimes
such as that for Trieste or for any Trust Territories,
The representative of Italy explained that the proposal made by his
delegation in relation to Article 16 was being revised in a manner which, he
felt, would satisfactorily avoid any conflict with the provisions of the Peace
Treaty relating to Trieste. He felt that any reference in the Charter to the
statue of the peace treaties should be avoided. He considered such a
reference unnecessary In respect of existing peace treaties since to the best
of his knowledge nothing in the peace treaties conflicted with any provision
of the present Draft Charter. He felt that such a reference was not relevant
in the case of future peace treaties since, according to his understanding,
the present document could not be regarded as overriding subsequent treaties.
The representative of Czechoslovakia maintained that the Charter should
explicitly recognize that the peace treaties are major instruments which
override tho Chartar in the case of conflicting provisions. The members of
the Sub-Committee and the representative of Italy undertook to consider
further a suggestion that the tiret part of the paragraph proposed by the
representative of Czechoslovakia be amended to read. "Nothing in this Charter
shall override any of the provisions of any treaty of peace in force at the
time of the entry into force of the Charter.,."
At the conclusion of the meeting the CHAIRMAN indicated that at the next
meeting the Sub-Committee would consider further each of the points discussed.
inconclusively at the present meeting (as well as the Australian proposal) If
the Working Party is in a position to report by that time) with a view to
reaching conclusions on each of the points; and. that at the following meeting
the Sub-Committee might meet with the representatives of the Fifth Committee,
as the Joint Sub-Committee of the Fifth and Sixth Committees, to consider the
proposal for an exception concerning inter-governmental commodity agreements
relating to national security, on which a new proposal had. been circulated as
E/CONF.2/C.6/W.23/Add.1. |
GATT Library | ph420sf1311 | Sub-Committee I (Article 94). Notes of the Third Meeting. : Held Monday 12 January 1948, at 6.00 p.m. in the Capitolio | United Nations Conference on Trade and Employment, January 13, 1948 | Sixth Committee: Organization | 13/01/1948 | official documents | E/CONF.2/C.6/W.40 and E/CONF. 2/C. 6/W. 1-40 | https://exhibits.stanford.edu/gatt/catalog/ph420sf1311 | ph420sf1311_90200150.xml | GATT_148 | 1,263 | 8,457 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/W.40
ON DU 13 January 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
SUB-COMMITTEE I (ARTICLE 94)
NOTES OF THE THIRD MEETING
Held Monday 12 January 1948, at 6.00 p.m. in the Capitolio
Chairman: Mr. TINOCO (Costa Rica)
1. Proposal by the Delegation of Australia.
The Sub-Committee unanimously approved the suggestion of the Working
Party that the point raised by the delegation of Australia be covered by
adding the words "of the Member or of any other country" water the words
"military esstablishment" at the end of paragraph (b) (ii).
2. Proposals the Delegations of India and Iraq Concerning Action in
Respect of Trade for the Purpose of Protecting "Essential Intereats".
The representative of India noted that, contrary to the possible
impression conveyed by the notes of the second meeting (E/CONF.2/C.6/W.32,
page 1), the intention of his remarks on that occasion had been merely to
indicated that the words "essential security interests" in the present text
of Article 94 might not be regarded always as embracing the "essential
interested" referred to in his amendment.
The Sub-Committee agreed that a communication should be sent to the
appropriate sub-committee suggesting that. action necessary for the
maintenance of "public order or saety", in the terminology of the 1937
Hague Convention, be covered as an exception under Article 43.
Concerring the proposal regarding the protection of essential interestes,
after some preliminary discuassion, the completion of the discussion of this
Item was deference pending the submission of an amendment to Article 94 by
the representative of the United Kingdom relating to this matter.
3. Proposal by the Delegation of India Concerning the Special Situation
of India and Pakistan.
The Sub-Committee agreed to the inclusion in the Charter of the following
provision:
"'Taking into account the special circumstances arising out of
the establishment of India and Pakistan as independent states, and
/recognizing E/CONF. 2/C. 6/W. 40
Page 2
recognizing the fact that they have long constituted an aconomic
unit, the Members agree that the provisions of the Charter shall
not prevent the 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."
The Sub-Committee agreed, also the inclusion, in an appropriate
manner, of an interpretative note to the following affect:
"Measures adopted by India end Pakistan in order to carry out
definitive trade arrangements between them, once they have been agreed
upon, might depart from particular provisions of this Charter, but
these measures would in general be consistent with the objectives of
the Charter."
The representative of India indicated his preference for the insertion
of the provision on these matter in the present Article rather than
elsewhere in the Charter. The Sub-Committee agreed that, consultation
should take place with Committee Ill on the appropriate location of this
provision.
4 Proposal by the Delegation of Czechoslovakia Concerning "Special Regimes"
and the Treaties of Peace..
The representative of South Africa suggested that the question might
be covered, by adding a sub-paragraph to the following effect:
"(d) To require any Member to carry out, obligations prescribed
by the Charter which would conflict with extant provisions of
any Peace Treaties which are in force."
There was was discussion of the extent to which it was necessary to .
refer at all to peace treaties and, if such a reference were to be made,
whether it should be confined to the treaties following the Second World War
or extended to cover those ater.. the First World War and possibly, even.
earlier treaties.
The representative, of Turkey, on the invitation of the Chariman,
advised the Sub-Commitee of the importance which, Turkey and other .
signatories of the Treaty of Lausanne attached to the Ottoman. clause. of
that treaty. He indicated. that of the rights established by that Treaty,
following the. First World War, sere to be affected by the Charter those
countries would not be able to accept theCharter.
The representative of Italy, on the invitation of the, Chairman,.
explaind the view of his delegation. He observed, in correction of the
notes on the second meeting (E/CONF.2/C.6/W.32,, page 3), that he had
intended to impy that conflict existed between the amendment suggested
/by his -delegation E/CONF.2/C.6/W.40
Page 3
by his delegation to Article 16 and the provisions of the relevant peace
treaties. Furthermore, in his reservation at the second meeting that there
was no need for a reference to existing peace treaties he had intended. to
say not only that as a matter of fact he had found nothing in the peace
treaty conflicting with any provision of the Charter, but that as a matter
of law he vas of the opinion that an existing peace treaty would clearly
over-ride any conflicting provision of the Charter.
The Sub-Committee agreed that the Charter should contain a provision
specifically recognizing that pace treaties over-ride, or prevail over,
the Charter in the event of conflict, leaving the exact drafting of such
a provision until a working party could propose a text. The Sub-Committee
appointed as Working Party 2, for the preparation of such a text, the
representative of Czechoalovakia, the Union of South Arica and the
United Kingdom. The Working Party was instructed to consider the original
proposal and the other suggestions made during the Sub-Committeets discussion
taking account also of the language contained in the Geneva drafts of
paragraph 6 in alternatives B and C of Article 93. The Sub-Committee was
also requested. to consult with the representative of Turkey on the special
situation described, in his statement.
The representative of Italy indicated that his delegation reserved
the right to raise the question again at a later stage in the Conference
in the light of any provision which might be made concerning the peace treatios.
5. Relation Between Article 94 and Articles 89, 90 and 91.
There was some preliminary discussion of this matter and there was a
suggestion that, at a later stage when the discussion on these articles is
further advanced in Sub-Committees G and I, it might be desirable, to have a
Joint meeting. It was felt by some members of the Sub-Committee that it
was within the competence of the prosent Sub-Committee te recommend whether
or not, and. if so to what extent, the provisions of Article 94 were exempt
from the application of any other provisions of the Charter, but it vas
generally recognized that consultation between the two sub-committees in
soma manner might be desirable. There was some suggestion that action
taken under Article 94 could not be prevented, or questioned, under other
articles, but that the effects of that action might be the subject of
consultation or complaint, and that a member affected by such action might
accordingly seek release from some corresponding obligations.
The further discussion of this matter was deferred to a later date.
In connection with the drafting of Article 94 he Sub-Committee agreed
to delete the word. "taken in paragraph (b) (iii) as being unnecessary since
/the word E/CONF.2/C.6/W.40
Page 4
word "taking" already appeard in the preamble to sub-paragraph (b). The
Chairman, suggested that it might also be necesary to consider changing the
order in the preambles to paragraph (b) in order to make it clear that the
subsequent sub-paragraph qualified the word "actionm" and not "iInterests".
Further. consideration of this possible drafting point was deferred.
The Sub-Conmmittee agreed that the next meeting should be held jointly
with the representatives of Committee V to consider Part B of
E/CONF.2/C.5&6/W.1, together with the related proposal in
E/CONF.2/C. 5&6/W.1/Add.1. |
GATT Library | hn093qd0968 | Sub-Committee I (Article 94). Notes on the Seventh Meeting. : Held at 4,00 p.m. Friday, 27 February | United Nations Conference on Trade and Employment, February 27, 1948 | Sixth Committee: Organization | 27/02/1948 | official documents | E/CONF.2/C.6/W.121 and E/CONF. 2/C. 6/W. 119-126 C. 6/J/WHITE PAPERS | https://exhibits.stanford.edu/gatt/catalog/hn093qd0968 | hn093qd0968_90200255.xml | GATT_148 | 524 | 3,716 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/W.121
ON DU 27 February 1948
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SIXTH COMMITTEE: ORGANIZATION
SUB-COMMITTEE I (ARTICLE 94)
NOTES ON THE SEVENTH MEETING
Held at 4,00 p.m. Friday, 27 February
Chairman: Mr. J, GOMEZ- ROBLES (Guatemala)
In view of the absence of the Chairman, Mr. TINOCO (Costa Rica),
Mr. C. A. LLANES (Costa Rica) proposed. that Mr. GOMEZ-ROBLES (Gu=atemala)
should. serve as Chairman. The Sub-Committee approved unanimously.
Concerning the provision adopted. provisionally at the Sixth Meeting
regerding peace treaties and special regimes (E/CONF.2/C.6/W.100) the
Sub-Committee conifired the text subject to a reservation by the
representative of Iraq pending final decisions on the texts of Articles 15
and 16. Tha representative of Turkey, who was not a member of the
Sub-Committee, indicated. that his delegation also reserved its position
on this text pending the outcome of the discussion on Article 16. The
representative of Turkey indicated that he would secure information
concening relevant provisions of the Treaty of Lausanne in case it might
become necessary to reopen this portion of Article 94 at a later stage.
The Sub-Committee considered the possible inclusion of the word
"soleby" 'before "for the purpose of" in the text of paragraph 1 (c) on
the basis of suggestions which the representatives of the United States
and the United. Kingdom had provided at the request of the Sub-Cammittee
(see E/COW,2/C.6/W.100, paragraph 4). The Sub-Committee concurred in
the present language of paragraph. 1 (c), but agreed to include a note in
the Sub-Cmmittee report to the effect that the Sub-Committee understood
the exception granted. in this paragraph to be granted solely fo- the
purpose of permitting a member country to provide for its national security
requirements.
Concerning the question of making provision in the Charter for the
special circumstances ari:rni out of the recent establishment of India and
Pakistan as independent states, the Sub-Committee approved. the following
/additional E/CONF.2/C.6/W.121 Page 2
additional sub-paragraph to paragraph 1 of Article 94:
"(d) to present action taken in accordance with the terms of
Annex to the Charter."
With reference to thies new sub-paragraph, the Sub-Committee approved
the following text of the annex referred to therein:
Special Provisions Regarding India and Pakistan
"Since there are special circmstances arising cut of the
establishment of India and Pakistan as independent states, and since
they have .long constituted an economic unit, the provisions of the
Charter shall not prevent the 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. -Measures adopted by India and Pakistan in order to carry out
definitive agreements in respect of their mutuel, trade, once -they
have been agreed upon, may depart from. particular provisions of this
Charter; Provided that such measures are in general.consistent- with
the purpose and objectives of the Charter." -
The Sub-Committee discussed provisionally the draft of .a new
article proposed. by the delegation of the United. Kingdom concening
Relations with the United. Nations", together with amendments and
related proposals suggested by the representatives of Australia,
Czechoslovakia and the Union of South Africa. |
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