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GATT Library | ps197kw4299 | Proposed Draft of the Delegation of Chile | United Nations Economic and Social Council, February 3, 1947 | United Nations. Economic and Social Council and Preparatory Commission of the Conference on Trade and Employment Drafting Committee | 03/02/1947 | official documents | E/PC/T/C.6/W.42 and E/PC/T/C.6/W/26-58 | https://exhibits.stanford.edu/gatt/catalog/ps197kw4299 | ps197kw4299_90230246.xml | GATT_151 | 191 | 1,427 | United Nations Nations Unies RESTRICTED
E/PC/T/C .6/W.42
ECONOMIC CONSEIL 3 February 1947
AND ECONOMIQUE ORIGINAL: ENGLISH
SOCIAL COUNCIL ET SOCIAL
DRAFTING COMNITTEE OF THE PREPARATORY COMMITTEE OF THE UNITED NATIONS
CONFERENCE ON TRADE AND EMPLOYMENT
PROPOSED DRAFT OF THE DELEGATION OF CHILE
Article 51 - Paragraph 4
4. In such arrangements participating countries, which are largely
dependent for consumption on imports of the commodity involved shall, in
determinations made relating to substantive matters, have together a voice
equal to that of those largely interested in obtaining export markets for
the commodity, provided that those countries, which are largely interested
in the commodity but which do not fall precisely under either of the above
classes, shall have an appropriate voice. Provided also that said consuming
or exporting countries will not oppose the adoption of necessary measures
to a reasonable price increase for said product. when the price has had an
appreciable decrease as compared with a prior representative period, or
when current prices do not cover total production costs and would
substantially affect the economy of one or more member-countries which
represent a considerable portion of the total output of said product. |
GATT Library | qc842ht7946 | Proposed Redraft of Article 7 suggested by the Delegation of Belgium | United Nations Conference on Trade and Employment, December 30, 1947 | First Committee: Employment and Economic Activity | 30/12/1947 | official documents | E/CONF.2/C.1/15/Add.l and E/CONF.2/C.1/1-26 | https://exhibits.stanford.edu/gatt/catalog/qc842ht7946 | qc842ht7946_90180251.xml | GATT_151 | 323 | 2,298 | United Nations Nations Unies
UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2 /C.1/15/
ON DU Add..l
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 30 December 1947
CRIGINAL: FRENCH
FIRST COMMITTIEE: EMPLOYMENT AND ECONOMIC ACTIVITY
PROPOSEDE REDRAFT OF ARTICLE 7 SUGGESTED BY THE DELEGATION OF BELGIUM
The Belgian delegation considers that the wording of the last part of
the second. sentence of paragraph 1 of the new Article 7 (document
E/CONF.2/C.1/15, page 3), as provisionally decided on at the Eighth Meeting
of the First Committee, has the following disadvantages:
The formula 'improvement of wages and. working conditions as
advances in productivity may permit (in French: "amalioration des
Conditions de rTmunTration et de travail dans la mesure o· le permet
l'accroiseement de la productivitT") makes any improvement in labour
conditions dependent upon a previous increase in productivity. This
formula has dangerous implications, since it could serve as a pretext
for stabilization of inadequate standards of living. It could thus
promote a policy contrary to the aims of Article 7, insofar as it
might encnourage the maintenance of out-of-date methods of production
which can only subsist by virtue of sub-standard wages and. labour
conditions.
The Belgian delegation proposes that the second sentence of paragaph 1
of the new Article 7 be re-worded as follows:
"They recognize that all countries have a common interest in the
achievement, maintenance and improvement of fair labour standards related
to productivity." (In French: ``Ils reconnaissent tous les pays ont
un intérOt commun a la rT?alisatioà uaméaintien eta& 'asTdlioration de
normesT uqitables de travail en rapport avec lalproductiviTt de 1a
main-d'oeuvre..)
This wording avoids going into too much detail but indicates in general
terms the Charter's parallel aims of increased productivity and Improved
labour standards,
The Belgian delegation has the honour to request the Secretariat to
transmit this note to delegations and expresses the hope that it will be
possible to obtain their agreement to the redrafting of the passage in question
on the above lines. |
GATT Library | kd119wb0244 | Protocol of Provisional Application of the General Agreement on Tariffs and Trade | United Nations Economic and Social Council, [ca. 1947 - 1994] | United Nations. Economic and Social Council | NaT | official documents | E/PC/T/214.Add.2 Rev.1 and E/PC/T/214/ADD.1/REV.1-228 | https://exhibits.stanford.edu/gatt/catalog/kd119wb0244 | kd119wb0244_92290276.xml | GATT_151 | 1,058 | 6,653 | UNITED NATIONS
ECONCMIC
AND
SOCIAL COUNCIL
NATIONS UNIES
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/214 .Add.2
Rev.1
OP PROVISIONÏLL AP1?LIC?TION CF T1? GENERAL
PROGTENERALF PROV1:SI0NiL .APPI,IC--T:1O OF THE -PERAE
A- GREaEiNT ON TARIFFS AND ThADE
PROTOCOLE PORTANT hAPPLICI,ION PRO :ISrIIE DE L ACCORD
RCEAL SJR LES T:RIFS DOUANIERS ET IE CGO=RCE
1. The Governrments of the
Gonmonwealth of Au:itrjli, the
XiÏndora Of BàlbiuM (irn respect
ot its metropolitan territory),
the United States of 'Brazil,
Canada, the Frauc2.C Republic (in
respect of its metropolitan
territoryj, the GrcLn Ducioy of
Luxtmburg, the Kinoitua of the
Netherlands (in respect of its
metropolitan territoryy, the
United KingdDm of Great Britain
and Ne.rtbern Ireland (il respect
et its metropolitan territory),
and the United States f Anmcrica
undertake, provided that this
Protocol shall have been signed
on behalf of all the foregoing
gqvernments.not later than
November 15, 1947, to apply
1. Les gouvernements du C.mmon-
wealth d'Australie, du Royaume de
Belgique (er. ce qui conoerze son
territoiro attropolitain) , des
Etats-Unis du Br6silp du Canada,
de la République frarçni:c (en
ce qui concerne son ter. itoire mei-
tropol.tain), du Grtnd-Duch6 de
Luxeabourg, du Royauxi der Pays-
Bas (en ce qui concErne 5on terri-
tzire natropolitein), du Royaune
Uni de Grande-Bretagnc et d'Irlande
du N'rd (en ce qui concern son
territoire .topolitein) et des
Etats-Uris d'Amérique s'engagent
à condition que le présenr
Protocole ait été signe au nom, de
tous les gouvernements sus-
rentionnés 5e 15 novembre 1947 au E/PC/T/214.Add.2.Rev.1
page 2
provisionally on and after
January 19 1948 :
(a) Parts I and III of the
General Agreement on
Tariffs and Trade, and
(b) Part II of that Agreement
to the fullest extent not
inconsistet with existing
legislation..
2. The foregoing governments
shall make effective such
provisional application of the
General Agreement, in respect of
any of their territories other
than their metropolitan
territories, on or after January 1,
1948, upon the expiration of thirty
days from the day on which notice
of such application is rceceived
by the Secretary-General of the
United Nations.
3. Any other government
signatory to this Protocol shall
make effective such provisional
plus tard, à appliquer à titre pro-
visoire à ter du Ier janvier
1948-
(a) Las parties I et III de l'Ac-
cord général sur les tarifs
douniers et le commerce
(b) et le partie II de cet Accord
dans toute la mesure compa-
tible avec le législation in
vigueur.
2. Les gouvernments susmention-
nés appliqueront á titre provisoire
l'Accord.général dans les condi-
tions énoncées ci-dessus en ce qui
concerne lans territoires autres
que leur territorie métropolitain,
à partir du ler janvier 1948 ou
ayprès cettte date, à l'expiration
d'un délai de tratate jours à compter
de la date: à laquelle le Secrétaire
général des Nations Unies aura reçu
avis de lour décision d'.appliquer
l'Accord, à titra provisoire, dans un
ou plusieurs de ces territories.
3 Pour tout autre gouvernment
signataire du présent Protocole,
l'application provisoire de l'Accord E, PC/T/214.LAdd. 2 Rev 1
Pc-L 3
applicatXon of the 3orel
.Acgroomoe., on or afrcur J.nuuiry 11
19'8, u..on thc i :v.rL;kLo .'
thirty' clays froci! thc day r..a
signature of this Protocol on
behal.f Io such Covornmont.
K # :,. x Pro loo2. siic.la r"Drain
c 1eni f oi, signature at the Head-
quartors; OL the Unitid Nations,
(a) unc.1 NJovrcabcr 15, 19'7, on
bohialf ci any govcr.r:-Lent na-mod
5n paraFraph 1 of' this Protocol
vwh 'cl h;.s not signed it or this
d ay,.vancl (b) u-41 uane 30, 19487
on behalf of' any othor govornrment
slignatoryr to the Final Act
atdc ptcd at; tlc c-noDclusion of tho
Second s -ion of :ha. P roparatory
.^OmL±tt3 o of th-he Unitcd Nations
Conrfùrencoi on Tradc and Employmont
g>nÇial deroe les .:onditïons énon-
ce'2 '-d4'~ss'u pr.mn drn etfet à par-
t:L' .`-i : jnrvie. 19410 ou
après ccottû datu> à l'expiration
d'un dulai do trcnte ours à corLp-
ter dQ la date . laquelle le 1Dré_
sent Protocole aura été sign au
nora du ce gouvurrrDnent.
4, Ln présant Protocole rcstara
ouvert au siège des Nations Unios
(a) Jusqu'ou 15 novrombre 1947, à la
signature dos gouvernement s Unuua
res au parag:raphe premier du pr6_
sent Protocolj ot qui n'ont pas si-
gné ce Protocole à lE date do ce
jour> (b) jusqu'au 30 juin 1948, à
la signature des autres gouvernc-
cents sirnatriiras d? l'Aote final
a1dopté à ln fin da ln Deuxième Ss-
sJIon de la Cotmmission pr6parat ira
de la CorLférenoa des Nutions Unies
rich h1 s rot sioCYt it on this da. sur le Coû.:.etrce at 1 'Emploi et gui
n'ont -xas siCnc la present Protoco-
le à la date de ce jour.
5,,`; îiy geüvorm:-int applying th.s
Protoc.a shail bo froc to witn-
,lraw such application, and such
withdirawalea shall take effect
apon thu expiration Of sixty days
.Croim tle da.y on which written
5. Il sera loisible à tout gouver-
nement ou i aurn tris en application
l present Protocole de mottre fin
à catte application et cette dUnon_
citation prendra Qi'f';t à l'aàxiratior E/PC/T/214.Add.2 Rev 1
page 4
notice of such withdrawal is
received by the Secretary-General
of the United Nations.
6. The original of this
Protocol shall be deposited with
the Secretary-General of the
United Nations, who will furnish
certifïed, copies thereof to all
interestoe governments.
IN WITNESS WHEREOF the
respective Representatives, after
having communicated their full
powers, found to be in good and
due form, have signed this Protocol.
DONE at Geneva, in a single
copy, in the English and French
languages, both texts authentic,
this .......... .. day of
October one thousand nine hundred
and fortyseven.
d'un délai de soixante jours à
compter de la date à laquelle le
Secrétaire général des Nations
Unies en aura reçu notification
par écrit>.
6. L'original du présent Proto-
colo sere déposé auprès du Secré-
taire général des Nations Unies,.
qui en fournira des copies certi-
fiées conforrmes à tous les gouver-
netents intéressés.
EN FOI DE .QUOI les représen-
tants soussignés après avoir com-
muniqué leurs plains pouvoirs
trouvés en bonne et due forme, ont
signé le présent Protocole.
FAIT à Genève, en un seul
exemplaire, an langues française et
anglaise, les deux textes faisant
également foi, le . . . . . . .
. . . . . . . . . . . . octo bre mil
neuf cent quarante sept.. |
GATT Library | fc732ff5734 | Provisional agenda and checklist of documents | General Agreement on Tariffs and Trade, [ca. 1947 - 1994] | General Agreement on Tariffs and Trade (Organization) and Committee on Trade and Development | NaT | official documents | COM.TD/W/194 and COM.TD/W/194 | https://exhibits.stanford.edu/gatt/catalog/fc732ff5734 | fc732ff5734_90530054.xml | GATT_151 | 525 | 4,037 | RESTRICTED
GENERAL AGREEMENT ON COM. TD/W/194
TARIFFS AND TRADE
Limited Distribution
Committee on Trade and Development
Twenty-Fifth Session
12-15 June 1973
PROVISIONAL AGENDA AND CHECKLIST OF DOCUMENTS
The following items are proposed for the agenda of the twenty-fifth session of
the Committee on Trade and Development. The documents prepared for this session are
indicated by an asterisk. Certain other documents relevant to the items for
discussion are also listed below.
1. Tropical products
Secretariat note on proceedings of the
twenty-third session of the Committee on
Trade and Development
Points for consideration in discussions
on future action on tropical products
Background note for discussion on
matters of interest to developing
countries in the preparatory work
for the trade negotiations
Tropical products: Tariff and non-tariff
measures affecting imports and data on
trade flows
Tropical products: Projections 1970-1980
Effective protection and internal taxes
on tropical products
COM.TD/89 (paragraphs 27-39)
SGTP/26 and Add.1
COM.TD/W/179
COM.TD/W/189*
COM,TD/W/l89/Add .1*
COM.TD/W/189/Add.2*
Quantitative import restrictions
Secretariat note on proceedings of the
twenty-fourth session of the Committee
on Trade and Development
COM.TD/90 (paragraphs 9-20)
1
Notes on the agenda have been issued separately in COM.TD/W/193.
2. COM.TD/w/194
Page 2
Background note for discussion on matters
of interest to developing countries in
the preparatory work for the trade
negotiations
Supplementary note relating to the
application of import restrictions to
products of interest to developing
countries
Quantitative import restrictions:
Statement by the Delegation of Brazil
Information on quantitative import
restrictions of interest to developing
countries examined in GATT
COM.TD/W/179 and Add.1 and 3
and Corr.
COM.TD/W/184
COM.TD/W/l88
COM.TD/W/192*
Non-tariff measures
Secretariat note on proceedings of the
twenty-fourth session of the Committee
on Trade and Development
Background note for discussion on matters
of interest to developing countries in
the preparatory work for the trade
negotiations
Non-tariff measures affecting trade of
developing countries
Non-tariff measures affecting the trade
of developing countries: Statement by
the Delegation of India
Non-tariff barriers arising in the field
of health and sanitary regulations
Non-tariff barriers arising in the field
of standards
COM.TD/90 (paragraphs 3-8)
COM.TD/W/179
COM.TD/W/182
COM.TD/W/l87
COM.TD/W/190*
COM.TD/W/191*
4. Non-reciprocity
Secretariat note on proceedings of the
twenty-third session of the Committee on
Trade and Developnent
COM.TD/89 (paragraphs 8-26)
3. COM.TD/W/194
Page 3
Background note for discussion of the
principle of non-reciprocity
Statement by the representative of
Brazil on the question of reciprocity
COM.TD/W/177
Spec (73)9
5. Tariff s
Preliminary examination of implications
for developing countries of various
suggested techniques and modalities for
trade negotiations
Committee on Trade in Industrial
Products. Report to the Council
Background note for discussion on matters
of interest to developing countries in
the preparatory work for the trade
negotiations
COM.IND/W/85
L/3756
COM,TD/W/179
6. Agriculture
Working Group on Techniques and Modalities:
Preliminary examination of implications for
developing countries of various suggested
techniques and modalities for negotiations
on agriculture
Working Group on Techniques and Modalities
Report to the Agriculture Committee
Secretariat note on meeting of the
Agriculture Committee 29-30 January 1973
COM.AG/W/86
COM.AG/W/88
COM.AG/27
7. Safeguards
Background note for discussion on matters
of interest to developing countries in the
preparatory work for the trade negotiations
Safeguards - factual note by the
secretariat
COM.TD/W/179
COM.IND/W/88/Rev.1
Safeguards for maintenance of access
COM.IND/W/104 |
GATT Library | rt701sz1509 | Provisions for Two-Thirds Majorities in the Draft Charter : Note by the Delegation of the United Kingdom | United Nations Economic and Social Council, February 10, 1947 | United Nations. Economic and Social Council | 10/02/1947 | official documents | E/PC/T/C.6/W.64 and E/PC/T/C.6/W/58-80 | https://exhibits.stanford.edu/gatt/catalog/rt701sz1509 | rt701sz1509_90230271.xml | GATT_151 | 770 | 5,093 | United Nations Nations Unies RESTRICTED
ECONOMIC CONSEIL 10 February 1947
AND ECONOMIQUE
SOCIAL COUNCIL ET SOCIAL
PROVISIONS FOR TWO-THIRDS MAJORITIES
IN THE DRAFT CHARTER
NOTE BY THE DELEGATION OF THE UNITED KINGDOM.
The Darfting Committee wsc nrstuactdi by the Preparatoy Committee
at ist first session to examine the questionocf two-thirds majorities
w'ith a view to incorporating in the text of the Charter such working as
clearly conveys what is intened." Twof-oms of wordng -were agreeduapon
in London to appy .to two different.types of cases, the fis-t formula "by
the affirmative votes of two-thirds of the Members" to p.ly to more
important. decisions (cllad 'Type 1' in this note), the second "by the
affirmative votes of two-thirds of the Members presentaned voting" for
relatively less ipo-rtant decisions (here calledT:ype2 )
The Delegatoin of hie 'United Kindgom is not entirely satisfied that
there is sufficient ground. for making the distinciton betwe ethe two tpyes
of cases in hwich two-thirds majorities are required. There are clearly
certain decisions which it is important should. eb mdee only with the support
of two-thirds of the voting power of all the Members of the Organization,
but it could be argued that aszes in which it is possible to allow the
outcore to be depednent on the attendance of Members might qtually well
be made the sujeect of a plan imajority vote. On the other hand, Type 2
would enable decisions to be reached more rapidly where required, and -wuold.
avoid situations arising in which abstentions prevented nayd&ecision from
ebing reached. In any case it - is suggested that it might be better to read.
by way fo definition of Type 1,"cconcurring votes represnating two-thirds
of the voting power of all the Members", and for Type 2, if it be retaintsd,
"concurring votes represneting the voting power of two-thirds of the Members
/present E/PC/T/C.6/W.64
Page 2
present and voting."
The following notes are written on the assumption that the distinction
between the two types is maintained. Type 1 is clearly appropriate in
Article 66 (2) as it stands (determination of criteria for waiving of
obligations) and, in Article 85 (1) and, (3) (amendments to the Charter)'.
Type 2 might perhaps surface in Article 66 (5) (acceptance of conventions and
agreements) which is at present drafted. as Type 1,
Suggestions were made in the discussions at the first session of the
Preparatory Committee (see document E/PC/T/CV/25) for making decisions subject
to two-thirds majorities in certain other cases where at present no specific
procedure is laid down (and which would presumably therefore be decided by
simple majority). The suggestions related to the following Articles:
1. Article 26 (3) (Conditions under which balance of payments
restrictions may be imposed): it is doubtful if a two-thirds
majority rule should be applied to this. It is auggested that in
any event it should be confined to paragraph 3 (d) - determination
that the provision is being abused, and should be of Type 2 as
described above.
2. Article 30; 4. (b) (Subsidies, suspension of rules). A two-thirds
majority of Type 1 would seem to be reasonable in this case.
3. Article 34 (Emergency Action). The requirement of a two-thirds
majority: in relation to action by the Organization under the last
sentence of the proviso to paragraph 4 would seem reasonable.
4. Article 35 (Impairment). A two-thirds majority in relation to
the third. sentence of paragraph 2 seems reasonable,
5. Article 40 (e) and (f). (Findings and Recommendations). A-
two-thirds majority* seems reasonable. -
6. Article 5L (:ondon text) (Principles ofm comodity arrangements),
A two-thirds majority requirement would not seem appropriate. It
has aldeaiy been suggested that voting provisions woulha ave to be
* While thmpotrinceacs tf ihese matter might seem to make 'Ty1e 2,
appropriate to t,em. ia m7y be that the n fd, or rdpi" decisions
louLd be better met-by type 2,.
/settled E/PC/T/C.6/W.64
Page 3
settled ad hoc in the light of the circumstances of particular
commodity arrangements.
There are certain further instances where the proviso for a
two-thirds majority should be considered.
1. Article 13 (Industrial Development). The two-thirds rule
(Type 3) might be written into 3 (b) and (c) - permission to use
measure inconsistent with obligations under the Charter.
2. Article 38, paragraph 4 (New preferences). The two-thirds rule
(Type 1) is already specified as regard criteria and procedures
though not as regards the determination of particular applications
or waiver), by the reference to Article 66 (2) and should remain.
3. Article 23 (exception from non-discrirmination). There might be
a case under paragraph 2 (determination that exceptions are being
abused) for a two-thirds majority of Type 2. |
GATT Library | xp811zy4750 | Radio broadcast by congressman Jacob K. Javits. Made over United Nations facilities Tuesday, December 30,1947, 6:30 PM | United Nations Conference on Trade & Employment, December 30, 1947 | Department of Public Information Havana, Cuba and United Nations Conference on Trade & Employment | 30/12/1947 | press releases | Press Release ITO/121 and ITO/73-194/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/xp811zy4750 | xp811zy4750_90200373.xml | GATT_151 | 692 | 4,269 | UNITED NATIONS CONFERENCE ON TRADE & EMPLOYMENT
Department of Public Information
Havana, Cuba
Press Release ITO/121
RADIO BROADCAS BY COGRESSMAN JACOB K. JAVITS
MADE OVER UNITED NATIONS FACILITIES
TUESDAY, DECEMBER 30,1947, 6:30 PM
Congressman Fulton and I, as members of the foreign Affairs Com-
mittee of the House of Representives, as wall as delegataes here, see
the close relationship between the fate of this Conferenca seeking to
encourage and facilitate exports and imports of goods, and United
States participation in world economic recovery. We believe, that
if the United States is to be justified in supporting with may bil-
lions of dollars the European Recovery Program now before the Cong-
ress; and ultimately, perhaps, greet additional Expendi tures for econ-
omic rehabilittion programs in Latin America and Asia, as well, the
principles of world trade must not be restrictive but expanding.
For example, we have been deeply concerned with the desire of
many countries to leave unrestricted their right to limit the quan-
tity of any type of goods they wish to import, without first getting
the approval of the new Organization. This is the QR (quantitative
restrictions) issue about which you have been reading in the daily
press, lately. It is also the issue which it is said, and rightly,
my wreck, this Conference. For the United States, the principal tra-
ding nation in the world, is vigorously opposed to QR and has sai,
through its Acting Chief of the Deleation here, that it is difficult
to see why anyene should want an International Trade Organization, if
the right to use quantitative restrictions is to be unrestricted.
The issue of QR is the issue of whether peoples everywhere
are to have large amounts of goods or small amounts of goods Our de,
legation is on the sile of more goods for more people.
(MORE) J J JAVITS -2- ITO/121
There is much at stake for the United States in this issue .of
QR, There is also much at stake for us in the companich issue of
whether the new Organization shall permit unrestricted new bilateral
preferential arrangments between individual countries. It is again
the fight between the nations led by the United States, which are
seekirig effective economic cooeperation through the easy flow of
trakde and the nations which see their nationalistic ambitions aided
by the strict governmental control of trade. Exactly such restric-
tionist practices as QR and newly negotiated bilateral preferential
arrangements, froze up the whole world's commerce in the early 1930's,
and were a major factor in protracting the world's greatest depres-
sion. The United State delelgation believe that the l ternational
Trade Organization is vital to United States economic security and
that of the other democratic nations, but we believe, too, that re-
strictionism which nakes goods scarce, not plentiful, must be de-
feated, if we are not to accept a sham result at Havana which will
be worse than no result at all. In a very real sense the battle ag-
ainst domestic inflation and the high cost of livin, in the United
States is being partially fought here.
The people of the United States must recognize that this Con-
ference may fail, though the US delegation have deep faith and con-
fidence that it will succeed. As there is a possibility of failure,
our people must understand, too, what is at stake here, It is no less
than the whole objective for which the United States is striving in
the world. If there is failure at havana, the democratic nations will
have shown their inability to unite on the economic principles which
are essential to the success cf their system. Such failure here will
be seized upon as the surest sign that the eonomic cataclysm is on
the horizon. which certain propagandists unfortunately se insistently
claim to be inevitable for the democratic world. It will be exploit-
ed to the full by those who seek to drive nations at this very moment
engaged in a gr-m struggle for democracy, and for the freedom of the
individual, into becomoing "police states'. The democratic nations in
Conference here, cannot--they dare not--fail.
7tLJ JL QJ " Itt J' |
GATT Library | xd089bp0359 | Rearrengement of Article 40 Proposed by the Delegation of Australia | United Nations Economic and Social Council, February 3, 1947 | United Nations. Economic and Social Council and Preparatory Commission of the Conference on Trade and Employment Drafting Committee | 03/02/1947 | official documents | E/PC/T/C.6/W.45 and E/PC/T/C.6/W/26-58 | https://exhibits.stanford.edu/gatt/catalog/xd089bp0359 | xd089bp0359_90230250.xml | GATT_151 | 907 | 6,080 | Nations Unies
RESTRICTED
ECONOMIC CONSEIL E/PC/T/C . 6/W. 45
AND ECONOMIQUE 3 February 1947
S0CIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
DRAFTING COMMITTEE OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE .AND EMPLOYMENT
REARRENGEMENT OF ARTICLE 40 PROPOSED BY THE DELEGATION OF AUSTRALIA
The following amendmernt of the text as adopted at the first reading
on 3 February is proposed:
Article 40
[Members agree that the Organization shall (a) arrange, if it
considers such action to be justified, for particular Members to take
part in a conference requested by any Member who considers that any
particular practices exist which have or are about to have the effect
described in paragraph 1 of Article 39]
1. Any Member which considers that any particular practices exist which
have or are about to have the effects described in paragraph 1 of Article 39
may request the Organization to arrange a conference and the Organization
may request particular Members to participate in such a conference.
[ (b) consider each written complaint submitted by any Member or submitted
with the authorization of a Member by any affected person, organization or
business entity within thst Memberts jurisdiction, claiming that particular
pratices exist which have or are about to have the effect described in
paragraph 1 oi Article 39, and prescribe the minimum information to be
included in such complaints.]
2. Any Member so with the authorization of a Member any affected person,
organization or business entity within that Member's jurisdiction
-/may complain
United Nations E/PC/T/C.6/W.45
Page 2
may complain to the Organization that particular practices exist which have
or are about to have the effects described in paragraph 1 of Article 39.
The Organizatian shall prescribe the minimum information to be included in
such complaints.
[(c) consider, and. request each Member concerned to furnish, such information
as the Organization may deem necessary, including, for example, information
or data from commercial enterprises within its juriadiction and then
determine whether further investigation is justified.]
3. The Organization shall consider any such complaint, shall consider, and
request each Member concerned to furnish, such information as the Organizaticn
may deem necessary, and shell determine whether further investigation is
justified.
NOTE: The following amendments are based on the London text.
4. [d. If it is considered If the Organization in accordance with
paragraph 3 determines that further investigation is justified it shall
(a) notify all Members of [each such] the complaint, request the
complainent or any Member to provide such information relevant to the
complaint as [it] the Organization may deem necessary; and conduct
or arrange for heaxinigs which any Member and the parties obliged
to have been engaged in the practice [will have] shall be given
opporturiIty to be heard;
(b) [e. review] After reviewIng all information available [and same
to its findings] determine whether the practices [in question] exist
and whether they have had or are about to have [have the effect] the
effects described in paragraph 1 of Article 39;
(c) [f. report transmit to all Members [the findings reached and
the information on which such findings are based] its determination
together with a full report on the reasons therefor;
(d) [if it finds] if it determines that the practices have had,
or are about to have, the effects described. in paragraph 1 of
Article 39 request each Member concerned. to take every possible action to
/prevent /PC/T/C.6/W.45
Page 3
prevent the occurrence, continuance or recurrence of the practices
and.[at its discretionl if it considers it desirable recommend to
the Members concerned remedial Measures to be carried out in
accordance with their respective laws and procedures;
[(g) Request all Members concerned to report fully the action they
have taken to achieve these results.
(e) [h] prepare and publish, as [expeditiously] Boon as possible
[after inquiries have been complete] a full report [s] on
[all complaints] each complaint dealt with under [sub-paragraph d]
this paragraph [showing fully the findings reached, the information
on which such findings are based and the action which Members concerned
have been recommended to take containing the determination made,
the reasons therefore and any recommendations made to Members;
provided that [publication of such reports or of any portion thereof
may be withheld if it deems this course justified] the Organization
(i) may if it deems it desirable withhold from publication the whole
or any part of such report;
['provided also that the Organization]
and (ii) shall not if a Member so requests disclose to any
person confidential information furnished by that Member which
would materially damage the legitimate business interests of a
commercial.enterprise; and.
(f) [i. report] tranmit to all Members and if it deems it desirable
publish [make public if it is deemed dasirable] a report setting
forth the action [which has been] taken by the Member concerned
[to achieve the results described in sub-paragraph f] in response
to requests or recommendations made under sub paragraph (d)
NOTE: As a consequence Article 42 (5) would be amended by deleting
the words "as requested by the Organization under sub-paragraph (g)
of Article 40."
/Article 45 E/PC/T/C .6/W 45
Page 4
Article 45
(b) the International agreements excepted in Article 59 provided that
[(2) notwithstanding the foregoing] the Organization may [at its
discretion] make recommendations to Members and to appropriate inter-
governmental organizations concerning any features of [the agreements
referred to in sub-paragraph (i) (b)] such agreements which [may]
it considers have the effects described in paragraph (1) of Article 39. |
GATT Library | mh274jk3549 | Recommendation of General Committee regarding Central Drafting Committee | United Nations Conference on Trade and Employment, December 29, 1947 | 29/12/1947 | official documents | E/CONF.2/21 and E/CONF.2/14-15/REV.1 | https://exhibits.stanford.edu/gatt/catalog/mh274jk3549 | mh274jk3549_90040076.xml | GATT_151 | 0 | 0 | ||
GATT Library | sc058xy8754 | Recommendation of General Committee regarding Central Drafting Committee | United Nations Conference on Trade and Employment, December 29, 1947 | 29/12/1947 | official documents | E/CONF.2/21 and E/CONF.2/14-15/REV.1 | https://exhibits.stanford.edu/gatt/catalog/sc058xy8754 | sc058xy8754_90040076.xml | GATT_151 | 297 | 2,130 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF. 2/21
ON DU 29 December 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
RECOMMENDATION OF GENERAL COMMITTEE REGARDING CENTRAL
DRAFTING COMMITTEE
At its fourth meeting held on 15 December, the General Committee
agreed to recommend to the Conference the establishment of a Central
Drafting Committee. The terms of reference of the Central Drafting
Committee would be to study the texts of the Charter produced at the
Conference with a view to seeing that they were clear and consistent
throughout and that the texts in the authentic languages were identical.
The Committee would have no power to change the text but, if it considered
changes desirable from a drafting standpoint, it should recommend to
to the Conference the adoption of such changes.
The General Committee recommend that the Central Drafting Committee
should consist of four persons and a chairman, to be appointed by the
President from qualified persons nominated by Delegations on the basis
of their expert knowledge of the drafting in English and French of
international instruments. The General Committee further recommend
that there should also be appointed observers familiar with the other
official languages of the United Nations.
For the purposes of this recommendation, the General Committee
proceeded on the assumption that Article 92, which in its present form
provides that the authentic languages of the Charter should be
English and French, would be confirmed by the Conference. If, however,
modifications are introduced into Article 92 which would have the
effect of making the texts in the official languages authentic as
well as the texts in the working languages, the composition of the
Drafting Committee would be appropriately modified by the President.
The recommendations of the General Committee are now submitted for
approval by the Conference. |
|
GATT Library | yw703tf6736 | Redraft of Article 67 as proposed by the Delegation of the United States | United Nations Economic and Social Council, February 17, 1947 | United Nations. Economic and Social Council, Preparatory Commission of the Conference on Trade and Employment Drafting Committee, and Sub-Committee on Tariff Procedures | 17/02/1947 | official documents | E/PC/T/C.6/W.78 and E/PC/T/C.6/W/58-80 | https://exhibits.stanford.edu/gatt/catalog/yw703tf6736 | yw703tf6736_90230290.xml | GATT_151 | 210 | 1,498 | United Nations
Nations Unies
ECONOMIC CONSEIL
E/PC/T/C.6/W.78 RESTRICTED
AND ECONOMIQUE 17 February 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
DRAFTING COMMITTEE OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
TARIFF PROCEDURES SUB-COMMITTEE
REDRAFT OF ARTICLE 67 AS PROPOSED BY THE DELEGATION
OF THE UNITED STATES
1. There shall be a Tariff Committee which shall act on behalf of the
Organization in the making of recommendations and determinations pursuant
to paragraph 3 of Article 24.
2. The Committee shall consist originally of those Members of the
Organization which shall have made effective the General Agreement on
Tariffs and Trade dated ........ 194... Any other Member of the Organization
shall be a member of the Committee when, in the judgement of the Committee,
that Member shall have completed negotiations pursuant to paragraph 1 of
Article 24 comparable in scope or effect to those completed by the original
members of the Committee.
3. Each member of the Committee shall have one vote.
4. Decisions of the Committes, pursuant to paregraph 1 and 2, shall be
taken by a two-thirds majority of the members and other decisions by a
simple majority.
5. The Committee shall adopt its own rules of procedure, including
provision for the election of its officers. |
GATT Library | dg159gd7092 | Report of Drafting Sub-Committee appointed 3 December 1947 | United Nations Conference on Trade and Employment, December 12, 1947 | Fifth Committee: Inter-Governmental Commodity Agreements | 12/12/1947 | official documents | E/CONF.2/C.5/8 and E/CONF. 2/C. 5/1-19 C. 5/A/1-2 | https://exhibits.stanford.edu/gatt/catalog/dg159gd7092 | dg159gd7092_90200057.xml | GATT_151 | 317 | 2,254 | United Nations Nations Unies UNRESTRICTED
E/CONF.2/C.5/8
CONFERENCE CONFERENCE 12 December 1947
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
FIFTH COMMITTEE: INTER-GOVERNMENTAL COMMODITY AGREEMENTS
REPORT OF DRAFTING SUB-COMMITTEE APPOINTED
3 DECEMBER 1947
1. The Drafting Sub-Committee was established at the meeting of the
Committee to consider
(a) the interpretative footnotes to the Articles, and
(b) the Preamble to Article 54.
The Sub-Committee has held two meetings and completed the work assigned
to it. Mr. R. B. SCHWENGER (United States) was elected Chairman.
2. Explanatory Note to Article 54 (e)
It was decided to submit to the Fifth Committee the following draft
of sub-paragraph (e), which would incorporate the sense of the footnote in
the text:
"(e) to provide for the expansion of the production of a primary
commodity where this can be accomplished. with advantage to consumers
and producers, including in appropriate cases the distribution of
basic foods at special prices."
The representative of the F.A.O. participated in the discussion of the
Sub-Committee and expressed agreement with this draft.
3. Explanatory Note to Article 60
The delegate of Cuba participated in the discussion of the action to
be taken on this footnote.
The Sub-Committee considered it inadvisable to make a recommendation
regarding the statue of this footnote, as the conclusion of a text for
Article 54 (c) would necessarily influence the position of Article 60 (a)
in regard to the term "reasonable price".
4. Preamble to Article 54
The Sub-Committee submit for consideration by the Committee the
following text of the Preamble;
"The Members recognize that Inter-governmental Commodity Agreements
are appropriate for the achievement of the following objectives: ....."
*The delegate for Chile participated in the discussion of the item and
agree that this text should be submitted to the Committee.
5, The explanatory footnote to Articles 52 and Article 60, sub-paragraph (b)
were deleted in Committee and were not, therefore, before the Sub-Committee. |
GATT Library | yd428hv6936 | Report of joint Sub-Committee of Committees II and VI on mexican amendment to Article 9 | United Nations Conference on Trade and Employment, December 30, 1947 | Second Committee: Economic Development and Sixth Committee: Organization | 30/12/1947 | official documents | E/CONF.2/C.2/25, E/CONF.2/C.6/32, and E/CONF.2/C.6/12/ADD.4-44 | https://exhibits.stanford.edu/gatt/catalog/yd428hv6936 | yd428hv6936_90170084.xml | GATT_151 | 259 | 1,800 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF. 2/C .2/25
ON DU 30 December 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINA: ENGLISH
SECOND COMMITTEE : ECONOMIC DEVELOPMENT
SIXTH COMMITTEE: ORGANIZATION
Report of Joint Sub-Committee of Committees II and VI
on Mexican Amendment to Article 9
1. At its first meeting on 14 December the Joint Sub-Committee of
Committee II and VI considered the amendment proposed by Mexico to delete
from Article 9 the words "through measure consistent with the other
provisions of this Charter".
2. No member of the Sub-Committee desired that Article 9 impose an
absolute obligation on members, i.e. to take action contrary to other
provisions of the Charter. On the other hand some Members felt that there
might be neutral measures which were neither consistent nor inconsistent
with other provisions of the Charter, which might be prohibited by the
present form of words.
3. It was also suggested that if the words "through measure consistent
with the other provisions of this Charter" were necessary in this Article
they would equally be necessary in other Articles in the Charter.
4. It was accordingly agreed
(a) that the question or whether it was necessary to include any
words after "productivity" be referred to the Central Drafting Committee
and
(b) that, if some form of words were required, the vorde "through
meassures not inconsistent with the other provisions of this Charter"
should be used.
5. The above report was approved at the seventh meeting of the Joint
Sub-Committee of Committees II and VI on 27 December 1947. |
GATT Library | yk742cf5476 | Report of Sub-Committee 'A' | United Nations Conference on Trade and Employment, December 2, 1947 | Fifth Committee: Inter-Governmental Commodity Agreements | 02/12/1947 | official documents | E/CONF.2/C.5/9 and E/CONF. 2/C. 5/1-19 C. 5/A/1-2 | https://exhibits.stanford.edu/gatt/catalog/yk742cf5476 | yk742cf5476_90200058.xml | GATT_151 | 7,259 | 48,589 | United Nations Nations Unies
UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.5/9
ON DU 2 December 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
FIFTH COMMITTEE: INTER GOVERNMENTAL COMMODITY AGREEMENTS
REPORT OF SUB-COMMITTEE 'A'
PART I
1. The Sub-Committee was appointed at the Seventh Meeting (12 December) of
the Fifth Committee. It was given the following terms of reference:
"(1) To consider all proposed amendments to Chapter VI as
contained in document E/CONF.2/C.5/5, together with the suggestions
made during the discussions in Committee V of these proposed
amendments; and
(2) to recommend texts which would reconcile the various
pointe of view expressed."
2. The Sub-Committee consisted of representatives of the following
delegations:
Argentina, Australia, Colombia, Cuba, Egypt, El Salvador,
France, India, Italy, Netherlands, Pakistan, Sweden, United Kingdom,
United States of America.
3. Mr. R. B. SCHWENGER (United States) was elected Chairman.
4. A number of representatives of delegations not appointed to the
Sub-Committee have attended as observers and, as far as possible, such
representatives have participated in the discussion of particular amendments
for which they were primarily responsible. Observers from the Food and
Agriculture Organization, International. Co-operative Alliance and
International Federation of Agricultural Producers also attended.
5. The Sub-Committee has held eleven sessions. Thanks to the spirit of
co-operation evinced by members, the Sub-Committee reached general agreement
on all but one of the points submitted to it. In most cases the recommended
texts are believed to reconcile the points of view expressed.
6. The Sub-Committee dishes to place on record its warm appreciation of
the untiring services of the Secretariat. The completion of the work
within a relatively short space of time has naturally involved a considerable
strain, and the efficiency of the Secretariat has been quite outstanding.
7. The complete text of Chapter VI as agreed by the Sub-Committee is
attached as an Annex to this Report. Part II of this Report contains a
brief statement of the disposition agreed on for each of the matters dealt
with. E/CONF.2/C.5/9
Page 2
PART Il
Article 52 - Difficulties Relating to Primary Commodities
The Sub-Committee noted the fact that the explanatory footnote to
Article 52 was withdrawn in Committee.
Article 53 - Primary and Related Commodities
1. The Sub-Committee discussed the proposals of the delegation of
Uruguay (C.5/3/Add.12) regarding paragraph 1 of this Article. The
proposed preamble, dealing with the extent of application of the definitions,
was considered to raise similar questions to those contained in the Chilean
amendment (11/Add.30) which the Committee had decided to refer to the
Central Drafting Committee. (For this reason, the word "Chapter" is shown
in square brackets in the Annex to this Report).
2. The latter part of the Uruguayan amendment would include processing
equipment in the definition of a primary commodity, and thus permit separate
agreements for such equipment. It was the general opinion of the
Sub-Committee that this would be undesirable, largely on the grounds that
such equipment presented different characteristics from primary commodities;
that agreement for such equipment would, in practice, tend to be of the
nature of cartels, with unfavourable results for the users of the equipment;
and that, because of lack of standardization of processing equipment,
multilateral inter-governmental agreements were impracticable.
In this connection, concern was expressed about the equitable
distribution of non-primary products in short supply. The Sub-Committee
took note of the fact that agreements for the equitable distribution of
non-primary products in short supply are clearly contemplated under
Article 43, II (a) as direct exceptions to Chapter IV. Moreover, it was
agreed that the Charter contemplated that members of a commodity conference
(Article 56) or a Commodity Council under a primary commodity control
agreement (Article 61) might discuss and seek agreement covering any or all
phases of a commodity problem, including those relating to production
difficulties.
3. The delegation of Italy, in the light of the discussion in Commitee.
had withdrawn its proposal (C.5/3/Add.2) to alter the word "exceptional"
in Article 53, paragraph 3.
Article 54 - Objectives of Inter-governmental Commodity Agreements
1. Preamble
The proposal by El Salvador (C.5/3/Add.8) to replace the word "may"
by "may only" was withdrawn in view of the new draft of the preamble
recommended by the Drafting Sub-Committee (C.5/8) and shown in the Annex.
/2. Sub-paragraph (b) E/CONF/C.5/9
Page 3
2. Sub-paragraph (b)
(1) The Sub-Committee discussed the proposed amendment of the delegation
of Mexico (C.5/3/Add.9) to include in this paragraph mention of
tho promotion of the processin of primary commodities in the
producing countries. It was agreed to recommend the addition
to sub-paragraph (b) of the words:
"including, as far as possible, in appropriate cases, the
development of secondary industries based upon domestic
production of primary commodities."
(ii) The Sub-Committee considered an amendment submitted by the
delegation of El Salvador to the effect that a statement should
be added to Article 54 (b) to make it clear that the provisions
of the sub-paragraph would be applicable to uneconomic
agricultural industries based on protection. The delegation of
El Salvador withdrew its amendment on the understanding of the
Sub-Committee that the matter was covered adequately by the
provisions of Article 60 (c) and (d).
3. Sub-paragraph (c)
The Sub-Committee considered amendments proposed by the delegations of
Ceylon (C.5/3/Add.6), Cuba (C.5/3/Add.3), El Salvador (C.5/3/Add.8), Mexico
(C.5/3/Add.9), Philippines (C.5/3/Add.7), Uruguay (C.5/3/Add.12) and
Venezuela (C.5/3/Add.11), designed to clarify the term "fair to consumers
and remunerative to efficient producers" relating to the prices which may be
negotiated in an agreement designed to moderate pronounced price fluctuations.
The discussion resulted in general agreement that the existing text was
sufficiently flexible to cover the substance of all the proposed amendments.
In the negotiation of a commodity agreement, countries would in fact be able
to put forward all of the considerations raised in the amendments. These
were of the nature of elaborations of the phrase under discussion, particularly
of the word "fair". Complete elaboration of the word "fair", however,
would involve mention of a number of "fair" considerations besides those
raised in the amendments. The negotiation would take place in the light of the
objectives of the Charter as a whole, and it was unnecessary to repeat at this
point factors which were included more appropriately in other parts of the
Charter.
For these reasons the Sub-Committee generally favoured retention of
the present text. It was agreed, however, in connection with an amendment
to Article 59 proposed by the delegation of Venezuela (see note on
/Article 59), E/CONF.2/C.5/9
Page 4
Article 59), to add the words prevent or ...." in sub-Paragraph (c) in
order to strengthen the text in regard to the use of commodity agreements
to deal with pronounced price fluctuations.
4. Sub-paragraph (c)
The Drafting Sub-Committee (C.5/8) recommended a text (see Annex) which
includes the sense of the footnote to the Geneva text.
5. Proposed New Sub-paragraphs
New sub paragraphs were proposed by the delegations of El Salvador
(C.5/3/Add.8) and Uruguay (C.5/3/Add.12):
(i) The proposal by El Salvador for a new sub-paragraph (h)
was withdrawn in the light of the new draft of the preamble
to this Article recommended by the Drafting Sub-Committee (C.5/8).
(ii) In the discussion of the El Salvador proposal for a sub-
paragraph (g) designed to give small countries access to
inter-governmental agreement procedure to deal with certain
policies of commercial enterprises purchasing their primary
commodities, attention. was drawn to the provisions of Chapter V
for inter-governmental co-operation on the problems involved.
The Sub-Committee thought that, either through the procedures
of that Chapter or, insofar as a specific commodity problem
was concerned, through Article 55, it would be possible to
request the formation of a study group to consider these
problems. On this understanding, the delegate for El Salvador
withdrew the proposal.
(iii) The Sub-Committee agreed that the sub-paragraph proposed by the
delegation of Uruguay, concerning fair prices for equipment and
facilities required for industrialization, was dealt with
adequately in connection with its conclusions reported above
on Article 54 (c) and on the latter part of the Uruguayan
amendment to Article 53.
Article 55 - Commodity Studies
1. Use of term "substantially interested"
The Sub-Committee examined the use of the term "substantially interested"
in Articles 55 and 56 in the light of the Committee's instruction that the
term should be used consistently. In the Geneva text the term was used both
subjectively and objectively according to the particular context. In regard
to paragraph 1 of Article 55, it had been the original intention to limit
the Members who might ask for a study group to those "substantially
interested" in an objective sense. It was now agreed, however, that
/any Member E/CONF.2/C.5/9
Page 5
any Member substantially interested from its own (subjective) viewpoint,
should have the right to ask for a study group.
It was therefore agreed to re-draft the opening words of paragraph 1
as follows:
"Any Member which considers itself substantially interested
in the production or
It was considered that this change would cover the intentions of the amendment
submitted by the delegations of Uruguay (C.5/3/Add.12) and El Salvador
C.5/5/Add.3).
The Sub-Committee also agreed to a consequential drafting change in
paragraph 2 ".......... if the Member considers itself substantially interested"
2. Powers of Study Groups
(i) In regard to the proposed amendments of the delegation of
Ceylon (C.5/3/Add.6), the Sub-Committee agreed that the
intentions of these amendments were in fact covered by the
existing text. In particular, it was understood that the power
of a study group to make recommendations to its members and to
the Organization as to how best to deal with special difficulties
includes the power to recommend that the situation requires
an agreement or a continuing study group. Moreover, if the
situation warrants, Article 56 permits going straight to the
conference stage without calling a study group.
(ii) It was agreed to strengthen the text of paragraph 3 by
deleting the word "may" in line 7.
Article 56 - Commodity Conferences
1. The Sub-Committee arrived at general agreement that the substance of
the amendments to paragraph 1 submitted by Ceylon (C.5/3/Add.6), Egypt
(C.5/3/Add.12) and El Salvador (C.5/5/Add.3), and also of the suggestions
made in Committee (see C.5/5, page 6), would be covered by the new text
shown in the Annex.
In sub-paragraph (b) of this new text the word "significant" has been
substituted for "substantial" because the Sub-Committee thought that the
latter might be open to a restrictive interpretation. In using the term
"significant", the Sub-Committee intends that account be taken of
considerations additional to the proportion of total world production,
consumption or trade, which the term "substantial" might be taken to imply.
It is still the intention in this sub-paragraph, however, that there should
be a finding by the Organization as to the extent of Members' interest.
The new sub-paragraph (c) agreed by the Sub-Committee is designed to
permit Members, whose economies are dependent to an important extent on a
/primary commodity, E/CONF.2/C.5/9 Page 6
primary commodity, to call on the Organization to convene a commodity
conference. In this instance, as distinct from sub-paragraph (b), judgement
as to the extent of Members' interest is left to the Members themselves,
but the Organization my reject their request for a conference if, and only
if, it thinks that no useful purpose would be served.
2. In line 1 of paragraph 2 it was agreed to substitute the word "itself"
for the words "that it is", in order to secure consistency with the new text
of Article 55.
3. The delegation of El Salvador, in the light of the discussion on
Article 55 regarding the powers of study groups, withdrew its proposal
for a new paragraph in Article 56 (C.5/5/Add.3).
4. The new paragraph proposed by the delegation of Peru (C.5/3/Add.4)
was withdrawn in Committee.
Article 57 - General Principles governing Inter-governmental
Commodity Agreements
In the light of the Sub-Committee discussion of the "due consideration"
clause at the end of paragraph 1 (c) of Article 57, the delegation of the
Philippines withdrew its proposed amendment (C.5/3/Add.7).
The Sub-Committee was of the opinion that the existing clauses covered
the situation envisaged in the Philippine amendment. The Geneva text
was necessary because it also had to cover other situation that
arise in relation to non-participants in a commodity agreement.
Article 58 - Types of Agreements
1. Paragraph 5
The Sub-Committee gave consideration to the proposal made in Committee
that the last sentence of paragraph 5 of this Article should be re-drafted
so as to provide for smooth transition at the time when an expansion"
agreement becomes a commodity control agreement through the entry into
operation of its price provisions. It was thought necessary to remove the
implication, contained in the present text, the Organization must call
substantially interested Members together to make a finding under Article 59
at the time the price provisions of any such agreement become operative.
The Sub-Committee therefore agreed to the new text shown in the Annex.
2. Paragraph 6
(a) (i) In regard to the proposals of the delegation of Mexico
(C.5/3/Add.9) on Paragraph 6, it was agreed that the
delegation's first point, relating to the word
"recommended", was covered by the new text agreed in
Committee for the first sentence of this paragraph
(see page 8 of C.5/5),
/(ii) Regarding E/CONF.2/C.5/9
Page 7
(ii) Regarding the second part of the Mexican amendment,
designed to prevent delay between a study group and
a conference, the delegate for Mexico agreed to
withdrawal on the understanding that the changes agreed
to in Articles 55 and 56 had reduced the danger of
delay to a minimum. In this connection, it was agreed
to extend the "unreasonable delay" provisions by adding
the words "in the convening or" before "in the proceedings"
(iii) In explanation of the third part of the Mexican amendment
relating to the "provisional" nature of agreements reached
by direct emergency negotiation, it was pointed out
that an agreement reached by such action would be
subject to revision in the light of any conflicting
decision which might subsequently be reached by a
properly constituted commodity conference. It was also
pointed out that agreements reached by direct negotiating
would have to conform to the other provisions of Chapter VI.
On this understanding the amendment was withdrawn.
(b) At the suggestion of the Cuban member the Sub-Committee agreed
that, for the purposes of clarification, paragraph 6 should contain
referencea to the provisions of Article 59. It was therefore agreed
to make the following additions to the existing text:
(i) in line 4, after "Article 56", te add and after
an appropriate finding has been made in accordance
with Article 59".
(ii) to add at the end of the paragraph "and that the
situation falls within the cases contemplated in
Article 59 (a) or (b)".
Article 59 - Circumstances Governing the use of Commodity Control Agreements
1. In discussing in Committee his delegation's proposal (C.5/3/Add.6)
to delete this Article, the representative of Ceylon brought out the point
that the determinations required under the Article might be interpreted
to call for a procedural step additional to those provided in Articles 55
and 56. For this reason it was agreed to eliminate paragraph 2 of Article 59
and to re-draft the preamble of paragraph 1. The new text of Article 59
is shown in the Annex.
The new text is intended to make it clear that procedure additional
to that set out in Articles 55 and 56 is not called for. The Sub-Committee
took the view that the finding ref erred to would in most case be made by
substantially interested Members through a commodity conference.
/2. Arising from E/CONF.2/C.5/9
Page 8
2. Arising from discussion on a new sub-paragraph to Article 59 proposed
by the delegation of Venezuela in place of its earlier proposal (C.5/3/Add.11)
it was agreed to amend Article 54 (c) as noted earlier in this Report. As
concerns the text of Article 59 itself, there was general agreement
that the Venezuelean delegation's concern about the use of control agreements
to deal with pronounced price fluctuations was covered.
Article 60 - Additional Principles governing Commodity Control Agreements
1. Sub-paragraph (a)
In order to corporate in the text of the Charter the sense of
the explanatory footnote to eub-paragraph (a), it was agreed to amend the
text as follows:
"(a) .........for world demand at prices agreed in the
light of Article 54 (c), and ....."
2. Sub paragraph (b) E/CONF.2/C.5/9
Page 9
"If, after review, the Organization finds that any such agreement is
inconsistent with the provisions of this Chapter, it shall communicate
such finding to the Members concerned in order to secure promptly
the adjustment of the agreement to bring it into conformity with the
provisions of this Chapter."
Similarly the amendment proposed by Argentina to the second sentence of
paragraph 2 was giver effect by amending the second sentence to read:
"If, after review, the Organization finds that any such
negotiations are inconsistent with the provisions of this
Chapter, it shall communicate such findings to the Members
concerned in order to secure prompt action with regard to
their continued participation in such negotiations.
Article 67 - Exceptions to Provisions Relating to Inter-governmental
Commodity Agreements
Paragraph 1
(1) The Sub-Committee accepted the proposal of the delegation of
Norway (C.5/3/Add.10) to exclude, subject to safeguards, certain
conservaation agreements from the provisions of the Chapter, and
agreed to the addition of a new sub-paragraph (d) to paragraph 1
of Article 67 (see Annex).
It was pointed out that a comparable exemption would be needed in
Chapter IV, and it was agreed to refer this matter to the Third Committee.
(ii) Regarding the amendment proposed by the delegation of the
United States (C.5/3/Add.5), the Sub-Committee reached agreement
on the following points:
(a) That the Charter should be amended to make clear that it
was intended to have an exception for action relating to primary
commodities as defined in Article 53, taken in concert as well as
taken unilaterally, applying to the requirements of national
security - in whatever way the reference to national security
should appropriately be drafted.
(b) That it was desirable that the exception be drafted as
narrowly as possible consistently with achieving adequately
the purpose of the exceptions.
(c) That decision as to
(i) the drafting of the exception, and
(ii) its location in the Charter
might best be taken in connection with the discussion of the
related portion of Article 94, though not necessarily by the
Committee responsible for that Article.
/(d) That E/CONF.2/C.5/9
Page 10
(d) That the Sub-Committee should report that the following two
text shown in square brackets in the Annex) had been before it
for discussion:
Proposal 1 - the addition of the following sub-paragraph:
"(e) to any inter-governmental commodity agreement, or any
provision in such an agreement, made to meet the essential
requirements of national security."
Proposal 2
(i) The addition of the following sub-paragraph:
"(e) to any inter-governmental agreement concluded solely
for the purpose of the non-commercial accumulation of
reserves of primary commodities or military purposes or
of the expansion of facilities for the production of such
primary commodities: Provided that any Member, not being
a party to such agreement, may bring a complaint that its
commercial interests are seriously prejudiced by the
operation of the agreement and the Organization, if it so
finds, shall request the participating Members to consult
with the complaining Member in order to safeguard the
latter's commercial interests."
(ii) The addition of the following new paragraph 2
"Any Member accumulating non-commercial reserves of
primary commodities for military purposes under an inter-
governmental agreement, to which paragraph (i) (e) of this Article
applies, shall not make arrangements for the commercial liquidation
of such reserve stocks in such a way as to injure the
commercial interests of producers of the commodities in
question, and shall consult with the Organization as to
the best means to that end."
Proposed New Article
The Sub-Committee considered the proposal of the delegation of
Colombia (C.5/3/Add.1) to insert a new Article which would except from the
Chapter agreements concluded by countries, whose economies depend essentially
on the export of certain primary commodities, to defend the prices of
these commodities against the effects of pronounced short-term
fluctuations in foreign markets. There was general agreement that the
proposed amendment would widen the terms of Chapter VI by permitting
producer countries to conclude agreements not contemplated under the present
text and would not accomplish the intention of the proposal because:
(1) consumer countries would insist on equivalent rights which
might nullily its aims, and
/(2) its purposes Page 11 E/CONF.2/C.5/9
(2) its purposes could not be achieved without adequate
participation by consuming countries.
It was generally felt that the purpose of the amendment could be best
achieved through inter-governmental agreements made in accordance with the
present provisions of the Chapter. The representative of one delegation
called attention to Article 27 as presenting a possible solution to the problem
raised by the proposal. The representative of Colombia reserved his position.
Note on Reference in Chapter IV
In considering the relation of Chapter VI to the Charter as a
whole, it was agreed to recommend to the Committee that it should discuss
the desirability of requesting Committee III to amend paragraph I (h) of
Article 43 to read as follows:
"(h) undertaken in pursuance of the term of inter-governmental
commodity agreements concluded in accordance with the provisions
of Chapter VI; or"
It was considered that the word "terms" conveys more appropriately
the understanding of the Sub-Committee as to the desired exception from
Chapter IV. It was felt that the word "obligation" was subject to possible
misinterpretation.
/ANNEX E/CONF.2/C.5/9
Page 12
ANNEX TO REPORT TO FIFTH COMMITTEE
RECOMMEND TEXT OF CHAPTER VI*
CHAPTER VI
INTER-GOVERNMENTAL COMMODITY AGREEMENTS
SECTION A - INTRODUCTORY CONSIDERATIONS
Article 52
Difficulties Relating to Primary Commodities
The Members recognize that the conditions under which some primary
commodities are produced, exchanged and consumed are such that international
trade in these commodities may be affected by special difficulties such as
the tendency towards persistent disequilibrium between production and
consumption, the accumuIation of burdensome stocks and pronounced
fluctuations in prices. These special difficulties may have serious adverse
effects on the interests of producer and consumers, as well as widespread
repercussions jeopardizing the general policy of economic expansion. The
Members recognize that such difficulties may, at times, necessitate special
treatment of the international trade in such commodities through inter-
governmental agreement.
Article 53
Primary and Related Commodities
1. For the purposes of this [Chapter] the term "primary commodity" means
any product of farm, forest or fishery or any mineral, in its natural form
or which has undergone such processing as is customarilly required to
prepare it for marketing in substantial volume in international trade.
2. The term shall also cover a group of commodities, of which one is
a primary commodity as defined in paragraph 1 of this Article and the
others are commodities (whether primary or non-primary) which are so closely
related, as regards conditions of production or utilization, to the other
commodities in the group, that it is appropriate to deal with them in a
single agreement.
3. If, in exceptional circumstances, the Organization finds that the
conditions set forth in article 59 exist in the case of a commodity which
does not fall precisely under paragraphs 1 or 2 of this Article, the
Organization may decide that the provisions of this Chapter, together with
* This recommended text is the Geneva text replaced by changes suggested
by the Sub-Committee or the Drafting Committee.
/any other E/CONF.2/C.5/9
Page 13
any other requirements it may establish, shall apply to inter-governmental
agreement regarding that commodity.
Article 54
Objectives of Inter-Governmental Commodity
The Members recognize that inter-governmental commodity agreements
are appropriate for the achievement of the following objectives:
(a) to prevent or alleviate the serious economic difficulties
which may arise when adjustments between production and consumption
cannot be affected by normal market forces alone as rapidly as the
circumstances require;
(b) to provide, during the period which may be necessary, a
framework for the consideration and development of measures which
have as their purpose economic adjustments designed to promote the
expansion of consumption or a shift of resources and manpower out of
over-expanded industries into new and productive occupations,
including, as far as possible, in appropriate cases, the development
of secondary Industries based upon domestic production of primary
commodities;
(c) to prevent or moderate pronounced fluctuations in the price
of a primary commodity with a view to achieving a reasonable degree
of stability on a basis of prices fair to consumera and remunerative
to efficient producers, having regard to the desirability of securing
long-term equilibrium between the forces of suppIy and demand;
(d) to maintain and develop the natural resources of the world and
protect them from unnecessary exhaustion;
(e) ta provide for the expansion of the production of a primary
commodity where this can be accomplished with advantage to consumers
and producers, including in appropriate cases the distributing of
basic foods special prices;
(f) to assure the equitable distribution of a primary commodity in
short supply.
SECTION B - INTER-GOVERNMENTAL COMMODITY AGREEMENTS IN GENERAL
Article 55
Commodity Studies
1. Any Member which considers itself substantially interested in the
production or consumption of, or trade in, a particular primary commodity,
and which considers that international trade in that commodity is, or is
likely to be, affected by special difficulties, shall be entitled to ask
that a study of the commodity be made.
/2. Unless E/ CONF.2/C.5/9 Page 14
2. Unless it decides that a prima facie case has not been established,
the Organization shall promptly invite each Member to appoint representatives
to a study group to make a study of the commodity if the Member considers
itself substantially integrated in the production or consumption of, or
trade in, the commodity. Non-Members may also be invited.
3. The study group shall promptly investigate the production, consumption
and trade situation in regard to the commodity, and shall report to the
participating Governments and to the Organization its findings and its
recommendation as to how best to deal with any special difficulties which
exist or maybe expected to arise. The Organization shall promptly
transit to the Members these findings and recommendation.
Article 56
Commodity Conferences
1. The Organization shall promptly convene an inter-governmental conference
to discuss measures designed to meet the special difficulties which exist or
are expected to arise concerning a particular primary commodity:
(a) on the basis of the recommendations of a study group,
(b) at the request of Members whose interests represent a
significant part of world production or consumption of, or
trade in, that commodity,
(c) at the request of Members which consider that their economies
are dependent to an important extent on that commodity, unless the
Organization finds that no useful purpose could be achieved by
convening the conference, or
(d) on its own initiative, on the basis of information agreed
to be adequate by the Members substantially interested in the
production or consumption of, or trade in, that commodity.
2. Each Member which considers itself substantially interested in the
production or consumption of, or trade in, the commodity concerned, shall
be invited to participate in such a conference. Non-Members may also be
invited to participate.
Article 57
General Principles Governing Inter-Governmental
Commodity Agreements
1. The Members shall observe the following principles governing the
conclusion and operation of all types of inter-governmental commodity
agreements:
(a) such agreements shall be open to participation initially by
any Member on terms no less favourable than those accorded to any
other county and thereafter in accordance with such procedure
/and upon E/CONF.2/C.5/9
Page 15
and upon such terms as may be established in the agreement subject
to approval by the Organization;
(b) non-Members may be invited by the Organization to participate
in such agreements and the provisions of sub-paragraph (a) applying
to Members shall apply to any non-member so invited;
(c) under such agreements there shall be equitable treatment as
between participating countries and non-participating Members,
and the treatment accorded by participating countries to non-
participating Members shall be no less favourable than that
accorded to any non-participating non-Member, due consideration
being given in each case to policies adopted by non-participants
in relation to obligations assumed and advantages conferred under
the agreement;
(d) such agreements shall include provision for adequate
participation of countries substantially interested in the
importation or consumption of the commodity as well as those
substantially interested in its exportation or production;
(e) full publicity shall be given to any inter-governmental
commodity agreement proposed or concluded, to the statements of
considerations and objectives advanced by the proposing Members,
to the nature and development of measures adopted to correct the
underlying situation which gave rise to the agreement and,
periodically, to the operation of the agreement.
2. The Members, including Members not parties to a particular commodity
agreement, shall give favourable consideration to any recommendation made
under such agreement for expanding consumption of the commodity in question.
Article 58
Types of Agreements
1. For the purposes of this Chapter, there shall be recognized two classes
of inter-governmental commodity agreements:
(a) commodity control agreements as defined in this Article; and
(b) other inter-governmental commodity agreements.
2. Subject to the provisions of paragraph 5 of this Article, a commodity
control, agreement is an inter-governmental agreement which involves:
(a) the regulation of production or the quantitative control of
exports or imports of a primary commodity and which has the
purpose or might have the effect of reducing, or preventing an
increase in, the production of, or trade in, that commodity; or
(b) the regulation of prices.
/3. The E/CONF.2/C.5/9 Page 16
3. The Organization shall, on the request of a Member, a study group or
a commodity conference, decide whether an existing or proposed inter-
governmental agreement is a commodity control agreement within the meaning
of paragraph 2 of this Article.
4. (a) Commodity control agreements shall be subject to all the
provisions of this Chapter.
(b) Other inter-governmental commodity agreements shall be
subject to the provisions of this Chapter other than those
of Section C. If, however, the Organization decides that an
agreement which involves the regulation of production or the
quantitative control of exports or imports is not a commodity
control agreement within the meaning of paragraph 2 of this
Article, it shall prescribe the provisions of Section C, if any,
to which that agreement shall conform.
5. An existing or proposed inter-governmental agreement which has the
purpose of securing the co-ordinated expansion of aggregate world production
and consumption of a primary commodity may be treated by the Organization as
not being a commodity control agreement oven though the agreement provides
for the future application of price provisions; Provided that
(a) at the time the agreement is entered into, a commodity
conference finds that the conditions contemplated are in
accordance with Article 59, and
(b) from the date on which the price provisions become operative,
the agreement shall conform to all the provisions of Section C
except that no further action will be required under Article 59.
6. The Members shall enter into any new commodity control agreement only
through a conference called in accordance with Article 56 and after an
appropriate finding has been made in accordance with Article 59. If in
an exceptional case there has been unreasonable delay in the convening or
in the proceedings of the study group or of the commodity conference,
Members which consider themselves substantially interested in the production
or consumption of or trade in, a particular primary commodity, may proceed
by direct negotiation, to the conclusion of an agreement, provided that
the situation falls within the cases contemplated in Article 59 (a) or (b)
and that it conforms to the other provisions of this Chapter.
SECTION C - INTER-GOVERNMENTAL COMMODITY CONTROL AGREEMENTS
Article 59
Circumstances Governing the Use of Commodity Control Agreements
The Members agree that commodity control agreements may be entered
into only when a finding has been made, through a commodity conference
/or through the E/CONF.2/C.5/9
Page 17
or through the Organization, by consultation and general agreement among
Members substantially interested in the commodity, that;
(a) a burdensome surplus of a primary commodity has developed or
is expected to devolop, which, in the absence of specific governmental
action, would cause serious hardship to producers among whom are small
producers who account for a substantial portion of the total output,
and that these conditions could not be corrected by normal market
forces in time to prevent such hardship, because, characteristically
in the case of the primary commodity concerned, a substantial
reduction in price does not readily lead to a significant increase in
consumption or to a significant decrease in production; or
(b) widespread unemployment or under-employment in connection with
a primary commodity, arising, out of difficulties of the kind referred
to in Article 52, has developed or is expected to develop, which, in
the absence of specific governmental action, would not be corrected
by normal market forces in time to prevent widespread and undue
hardship to workers because, characteristically in the case of the
industry concerned, a substantial reduction in price does not readily
lead to a significant increase in consumption but to a reduction of
employment, and because areas in which the commodity is produced in
substantial quantity do not afford alternative employment opportunities
for the workers involved.
Article 60
Additional Principles Governing Commodity Control Agreements
The Members shall observe the following principles governing the
conclusion and operation of commodity control agreements in addition to
those stated in Article 57:
(a) Such agreements shall be designed to assure the availability of
supplies adequate at all times for world demand at prices agreed in
the light of Article 54 (c), and, when practicable, shall provide for
measures designed to expand world consumption of the commodity;
(b) under such agreements, participating countries which are largely
interested in imports of the commodity concerned shall, in decisions
on substantive matters, have together a number of votes equal to that
of those largely interested in obtaining export markets for the
commodity. Any participating country, which is largely interested in
the commodity but which does not fall precisely under either of the
above classes, shall have an appropriate voice within such classes;
/(c) such E/CONF.2/C.5/9
Page 18
(c) such agreements shall make appropriate provision to afford
increasing opportunities for satisfying national consumption and
world market requirements from sources from which such requirements
can be supplied in the most effective and economic manner, due
regard being had to the need for preventing serious economic and
social dislocation and to the position of producing areas suffering
from abnormal disabilities;
(c) participating countries shall formulate and adopt programmes
of internal economic adjustment believed to be adequate to ensure
as much progress as practicable within the duration of the agreement
towards solution of the commodity problem involved.
Article 61
Administration of Commodity Control Agreements
1. Each commodity control agreement shall provide for the establishment of
a governing body, herein referred to as a Commodity Council, which shall
operate in conformity with the provisions of this Article.
2. Each participating country shall be entitled to have one representative
on the Commodity Council. The voting power of the representatives shall
be determined in such a way as to conform with the provisions of
Article 60 (b).
3. The Organization shall be entitled to appoint a non-voting representative
to each Commodity Council and may invite any competent inter-governmental
organization to nominate a non-voting representative for appointment to a
Commodity Council.
4. Each Commodity Council shall appoint a non-voting chairman who,if
the Council so requests, may be nominated by the Organization.
5. The Secretariat of each Commodity Council shall be appointed by the
Council after consultation with the Organization.
6. Each Commodity Council shall adopt appropriate rules of procedure and
regulations regarding its activities. The Organization may at any time
require their amendment if it finds that they are inconsistent with the
provisions of this Chapter.
7. Each Commodity Council shall make periodic reports to the Organization
on the operation of the agreement which it administers. ln addition it
shall make such special reports as the Organization may require or as the
Council itself considers to be of value to the Organization.
8. The expenses of a Commodity Council shall be borne by the participating
countries.
/9. When an E/CONF.2/C.5/9
Page 19
9. When an agreement is terminated, the Organization shall take charge
of the archives and statistical material of the Commodity Council.
Article 62
Initial Term, Review and Renewal of Commodity Control Agreements
1. Commodity control agreements shall be concluded for a period of not
more than five years. Any renewal of a commodity control agreement,
including agreements referred to in paragraph 1 of Article 65, shall be
for a period. not exceeding five years. The provisions of such renewed
agreements shall conform to the provisions of this Chapter.
2. Periodioally, at intervals not greater than three years, the
Organization prepare and publish a review of the operation of each
agreement in the light of the principles set forth in this Chapter.
Moreover, a commodity control agreement shall provide that, if the
Organization decides that its operation, has failed substantially to conform
to the principles laid down in this Chapter, participating countries
shall either revise the agreement to conform to the principles or
terminate it.
3. Commodity control agreements shall include provisions relating to
withdrawal of any party.
Article 63
Settlement of Disputes
Each commodity control agreement shall provide that:
(a) any question or difference concerning the interpretation of the
provisions of the agreement or arising out of its operation shall be
discussed originally by the Commodity Council;
(b) if the question or difference cannot be resolved by the Council
in the terms of the agreement, it shall be referred by the Council
to the Organization, which shall apply the procedure set forth in
Chapter VIII with appropriate adjustments to cover the case of
SECTION D - MISCELLANEOUS PROVISIONS
Article 64
Relations with Inter-Governmental Organizations
With the object of ensuring appropriate co-operation in matters
relating to inter-governmental commodity agreements, any inter-governmental
Organization which is deemed to be competent by the Organization, such as
the Food and Agriculture Organization, shall be entitled:
(a) to attend any study group or commodity conference;
(b) to ask that a study of a primary commodity be made;
/(o) to submit E/CONF.2/C.5/
Page 20
(c) to submit to the Organization any relevant study of a primary
commodity, and, on the basis thereof, to recommend to the Organization
that further study of the commodity be made or that a commodity
conference be convened.
Article 65
Obligations of Members Regarding Existing and Proposed Commodity Agreements
1. Members shall transmit to the Organization the full text of each
inter-governmental commodity agreement in which they are participating
at the time they become Members of the Organization. Members shall also
transit to the Organization appropriate information regarding the
formulation, provisions and operation of such agreements. If, after review,
the Organization finds that any such agreement is inconsistent with the
Provisions of this Chapter, it shall communicate such finding to the Members
concerned in order to secure promptly the adjustment of the agreement to
bring it into conformity with the provisions of this Chapter.
2. Members shall transmit to the Organization appropriate information
regarding any negotiations in which they are participating at the time they
become Members of the Organization, for the conclusion of an inter-
governmental commodity agreement. If, after review the Organization finds
that any such negotiations are inconsistent with the provisions of this
Chapter, it shall communicate such finding to the Members concerned in
Order to secure prompt action with regard to their continued participation
in such negotiation. The Organization may dispense with the requirements
of a study group or a commodity conference, if it finds them unnecessary
in the light of the negotiations.
Article 66
Territorial Application
For the purposes of this Chapter, the terms "Member" and "non-Member"
shall mean respectively a Member and non-Member of the Organization with
its dependent territories. If a Member or non-Member and its dependent
territories for a group, of which one or more units are mainly interested
in the expert of a commodity and one or more in the import of the commodity,
there may be either joint representation for all the territories within
the group or, where it is so desired, separate representation for the
territories mainly interested in exportation and separate representation
for the territories mainly interested in importation.
Article 67
Exceptions to Provisions Relating to Inter-Governmental Commodity Agreements
1. The provisions of this Chapter shall not apply:
/(a) to any E/CONF.2/C .5/9
Page 21
(a) to any bilateral inter-governmental agreement relating to the
purchase and sale of a commodity falling under Section D of Chapter IV;
(b) to any inter-governmental commodity agreement involving no more
than one exporting country and no more than one importing country,
and not covered by sub-paragraph (a) above; Provided that if, upon
complaint of a non-participating Member, the Organization finds that
the interested of that Member are seriously prejudiced by the agreement,
the agreement shall become subject to such provisions of this Chapter
as the Organization may prescribe;
(c) to those provisions of any inter-governmental commodity agreement
which are necessary for the protection of public morals or of human,
animal or plant life or health; Provided that such agreements are not
used to accomplish resulted inconsistent with the objectives of
Chapter V or Chapter VI.
(d) to any inter-governmental agreement relating solely to the
consertation of fisheries resources, migratory birds and wild
animale; Provided that such agreements are not used to accomplish
resulted inconsistent with the objectives of this Charter and are
given full publicity in accordance with the provisions of Article 57,
paragraph 1 (e), and that if the Organization finds, upon complaint
of a non-participating Member, that the interests of that Member are
seriously prejudiced by the agreement, the agreement shall become
subject to such provisions of this Chapter as the Organization may
prescribe.
Proposal 1 (see pages 9 and 10)
[(e) to any inter-Governmental commodity agreement, or any provision
in such an agreement, made to meet the essential requirements of
national security.]
Proposal 2, part (i) (see pages 9 and 10)
[(e) to any inter-governmental agreement concluded solely for the
purpose of the non-commercial accumulation of reserves of primary
commodities for military purposes or of the expansion of facilities
for the production of such primary commodities: Provided that any
Member, not being a party to such agreement, may bring a complaint
that its commercial interests are seriously prejudiced by the
operation of the agreement and the Organization, if it so finds,
shall request the participating Members to consult with the
complaining Member in order to safeguard the latter's commercial
interests.]
/Proposal 2, part (ii) E/CONF.2/C.5/9
Page 22
Proposal 2, part (ii) (see pages 9 and 10)
2. Any Member accumulating non-commercial reserves of primary commodities
for military purposes under an inter-governmental agreement to which
paragraph 1 (e) of this Article applies, shall not make arrangements for the
commercial liquidation of such reserve stocks in such a way as to injure the
commercial interests of producers of the commodities in question, and shall
consult with the Organization as to the best means to that end.]
[2.] The provisions o: Articles 55 and 56 and of Section C of this Chapter
shall not apply to inter-Governmental commodity agreements found by the
Organization to relate solely to the equitable distribution of commodities
in short supply.
[3.] The provisions of Section C of this Chapter shall not apply to
commodity control agreements found by the Organization to relate solely
to the conservation of exhaustible natural resources. |
GATT Library | tn759gz2434 | Report of Sub-Committee A - "Fair labour standards" | United Nations Conference on Trade and Employment, December 16, 1947 | 16/12/1947 | official documents | E/CONF.2/C.1/9 and E/CONF.2/C.1/1-26 | https://exhibits.stanford.edu/gatt/catalog/tn759gz2434 | tn759gz2434_90180244.xml | GATT_151 | 1,550 | 10,742 | United Nations Nations Unies UNRESTRICTED E/CONF.2/C.1/9 16 December 1947
CONFERENCE CONFERENCE ORIGINAL: ENGLISH
ON DU
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
FIRST COMMITTEE: EMPLOYMENT AND ECONOMIC ACTIVITY
REPORT OF SUB-COMMITTEE A -"FAIR LABOUR STANDARDS"
1. At the sixth meeting of the First Committee, 8 December 1947, the
Chairman appointed a Sub-committee which was instructed to examine the text
of Article 4 with the new proposals relating to the subject matter thereof
and to prepare a text for submission to the full Committee (see
E/CONF.2/C.1/8 with Add.1).
2. Representatives of the following delegations were appointed members
of the Sub-committee: Argentina, Ceylon China, Colombia, Cuba, Czechoslovakis,
Denmark, Mexico, Netherlands, New Zealand, Turkey, Union of South Africa,
United States of America and Uruguay.
3. Mr. D. K. LIEU (China) served as Chairman of the Sub-committee.
4. The representatives of the delegations of the Philippines and of Haiti
attended the meetings of the Sub-committee when proposals originating with
those delegations were under discussion. The Sub-committee also had the
benefit of expert advice from the representative of the International Labour
Organization.
5. After a discussion of the points of substance in the Sub-committee
Drafting Group was constituted, comprising representatives of the delegation
of Mexico, the Union of South Africa and the United States of America. The
text prepared by this Drafting Group was subsequently considered and modified
by the full Sub-committee.
6 In the course of its deli erations the Sub-committee examined the
proposals appearing in the following documents:
E/CONF.2/11/Add.3 (Argentina) .
E/CPeru)F,2lJ./A4 (
1)CdF., /Ad.(Beurmq)
NFExC11/./Ad28d...xiXM)ec
EON/CF.11/Add.312/ (xiMeco)
CONC.F/11UAdd/.3.( eylon)
E/CONF.2/C.1/3/Add.1 (Haiti)
E/CONF.2/C.1/3/Add.2 (Uruguay)
E/CONF.2/C.1/3/Add.3 (Union of South Africa)
E/CONF.1/C.1/3/Add.4 (Philippines)
E/CONF.2/C.1/3/Add.5 (Colombia)
E/CONF.2/C.1/3/Add.1 (Consequential Amendment by the United States
of America)
/7. In addition, E/CONF.2/C.1/9
Page 2
7. In addition, in accordance with the procedure established in
E/CONF.2/C.1/8/Add.1, and in agreement with the delegation of Mexico, the
Chairmen of sub-committees A and B agreed that the proposal by the
delegation of Mexico for a proviso to paragraph 1 (b) of Article 6
(E/CONF.2/11/Add.31) should be considered by Sub-committee A rather than
Sub-committee B to which it had been referred originally. Accordingly,
account has been taken of that proposal in redrafting Article 4.
8. The Sub-committee held four meetings and reached agreement on the
accompanying text. The representative of the delegation of Argentina
indicated that while be was prepared provisionally to agree with the text
produced by the Sub-committee, it might be necessary for his delegation,
after it had had an opportunity to examine a Spanish translation of the
text, to express certain views concerning that text in the full Committee.
The representative of the delegation of Mexico indicated that his delegation
reserves its position for discussion in the full Committee on the relation
between the present proposed text and the amendment put forward by that
delegation earlier for a provision relating to nondiscriminatory treatment'
of labour. The discussions in the Sub-committee were characterized
throughout by a spirit of conciliation and co-operation on the part of all
delegations participating. The members of the Sub-committee desire to
record their special appreciation of the manner in which the Chairman
conducted the proceedings.
9. In the view of the Sub-committee the text which it is recommendrng for
consideration and approval by the full Committee is in most respects
self-explanatory. Accordingly in this report the Sub-committee is confining
its remarks largely to observations concerning tae reletion between the
present text and the amendments which were under consideration.
Paragraph 1
10. In the drafting of the first sentence of paragraph 1 the Sub-committee
was prompted by the amendment proposed by the delegation of Mexico to the
effect that a reference should be made in the Article to the safeguarding
of the rights acquired by labour, especially those embodied in the '
Declaration of the Aims and Purposes of the International Labour Organization
adteopd by theLO I Conference at Philadelphia iMan y 41. In 94t hse ueof
the words "international declarations" the Sub-committee had in mind
particularly this Declaration. It was felt by the bSu-coitmmtee th atthis
language (together with the references elsewhere inthe Chaprte "tolarge and
steadily growing...effective demand") also covered thep roposal ofthe
delegation of the Philippines concerning the importance of social security
since the Declaration of Philadelphia stsesses thse ignificance of social
/security E/CONF.2/C.1/9
Page 3
security measures. The language of this first sentence was, however, drafted
sufficiently broadly to include not only the Philadelphia Declaration but
any other international instruments whereby rights of workers were established.
11. In the second sentence the Sub-committee has incorporated the proposal
of the delegation of Argentine that "wages" should be specifically mentioned.
By its use of the word "improvement" in this sentence the Sub-committee feels
that it has also embodied the substance of the amendment proposed by the
delegation of Burma.
12. In the third sentence the Sub-committee has endeavoured to take account
of various proposals which were made concerning the use previously of the
words "production for export". The present language indicates that the
sentence is concerned with any unfair labour conditions which create
difficulties in international trade.
13. The Sub-committee has not retained the words "throughout its territory"
which appeared in the text submitted by the Preparatory Committee. The
Sub-committee is of the opinion that these words are unnecessary since the
sense is clear without them, but that the central Drafting Committee might
consider from a drafting point of view whether or not they should be
retained. The representative of the delegation of Turkey indicated that
his delegation wight find it necessary during the discussion of this matter
in the First Committee to suggest that the words "within its territory" be
inserted.
Paragraph 2 .
14. The prein itext of pargarah 2 is identical with the correspondlng
sentence in the text submitted by the Preparatory Committee.
Pargaea3
15. The tez of the new parageh 3 wee peared an the basis of various
suggestions which were made in the original amendments concerning the
division of functions between the LO and the ITO (e.g., the amendments.
proposed by the delegations of Ceylon, Colombia and the Union of South
Africa). In view of the special competence of the ILO in the field of
labour standards it was considered desirable to provide in the Article
itsaf for oasutaation b eatween the ILO and the ITO. This peraraph.we
also desianed to meet tahe requirements of those countries which hd proposed
various procedur s for dealing with situations in which a Member felt it
necessary to protect its industries from the competition of products produced
urder unfair conditions of labour (e.g., the amendments proposed by the
de gations of Ch ombia, Mexi cho and Uruguay). The present.lnguage of.ti
paragraph is intended to bring out explicitly the relationship between this
Article and the procedure established in Article 90 for the reference of
matters to the Organization.
16. The Sub-committee E/CONF.2/C.1/9 Page 4
16. The Sub-committee recognizes that in the proposed text specific
provision has not been made for non-discrimination in the treatment of labour
as proposed by the delegations of Mexico and Haiti. During the discussion
of this matter in the Sub-committee note was taken of the work being done on
this subject by the ILO and by such other bodies as the Commission on Human
Rights and its Sub-commission on the Prevention of Discrimination and the
Protection of Minorities. The majority of members of the Sub-committee felt
that the question of non-discrimination in respect of the employment of
labour could not be dealt with appropriately or adequately in a charter of
an international trade organization. To the extent, however, that provisions
concerning non-discriminatory treatment of labour may have been, or may in
the future be, incorporated in other "international declarations, conventions
and agreements" to which Members may subscribe the present language of the
Article recognizes that measures relating to employment must take fully into
account any such provisions.
Location of the Article
17. The Sub-committee has learned that Sub-committee B of the First '
Committee proposes a re-arrangement rof the iA tic les nth ehChapterwerby
the Article on"Fair Lebour Standards"e re wed frroroiul dr smvm tspeent
position between two Articles on balanceen-of-paymts ques tions toa position
at the end of the Chapter in order to s cure continuity in the provisions
relating to balances of payments. The Sub-committee agr ees withthe
suggestion that for this reason the ArticileLab on far our stsandldards hou
appear at the end of CIhapter I.
Fai Labour Standards Q'r. -
1recognize tg. e 'Mmbers t measures relating tot emke-ploymentmusb a&.
unt the rightsfof worully into aconss of wol drkers tions,under intrtonsa1claraip;
co.nventions and.agreements They recognize ae that all countries hav
cchievemommon nterest in thea nnt and maintenanaardnce ofsfir labourstiiis
, related to productand worki in the impraodvwoemennt of wages 6ni6 rg
cosS in pr dndi s'a avanceconivity may peersrmictg.iz' Te Membre-roon
that unfaionbour conditions, particularon for export, create ly in productiO.e-~
dniffoicu lties i interatieal-rad each Member shalle, and, accordingly'
take whatever action may be appropr eliminate suchiate and feasible to
conditions.
2 rs 'iIchae also 'membrs of the Intur Organizatginoernational Leboi'~
h ts hall co-operate itat oin grgani tzathis undertaking.ion in gvneffec'o t
l 3. TheInternatr'nL'bour Organization s in all mahell be consultedaUers
relating to abour standards that may be Ex creferrBed d orto the'ative oa
to the Conference in accordance witho the pclerovision0s f Arti 9. |
|
GATT Library | sy999hv6027 | Report of Sub-Committee B (Articles of chapter II other than Article 4) | United Nations Conference on Trade and Employment, December 17, 1947 | 17/12/1947 | official documents | E/CONF.2/C.1/10 and E/CONF.2/C.1/1-26 | https://exhibits.stanford.edu/gatt/catalog/sy999hv6027 | sy999hv6027_90180245.xml | GATT_151 | 1,869 | 12,876 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF. 2/C.1/10
ON DU 17 December 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORGINAL : ENGLISH
FIRST COMMITTEE: EMPLOYMENT AND ECONOMIC ACTIVITY
REPORT OF SUB-COMMITTEE B (ARTICLES OF CHAPTER II
OTHER THAN ARTICLE 4)
1. At the sixth meeting of the First Committee, 8 December 1947, the Chairman
appointed a Sub-Committee which was instructed to examine tme amendments relating
to all ArticIes of Chapter II with the exception of former Article 4
and to preprare texts for those Articles.
2. Representatives of the following delegations were appointed members of the
Sub-Committee: Australia, Canada, France, India, Italy, Lebanon, Norway, Mexico,
Peru, Philippines, United Kingdom, United States of America.
3. M. J. ROYER (France) served as Chairman of the Sub-Committee.
ark a The representatinve o f the delegation of Denmark attended the meetig of the
Sub-Committee when the proposal originating with that delegation was under
discussion. The Sub-Commitee also had the benefit of expert advice from the
representatives of the Intenational Labour Organization and the International,
Monetary Fund.
5. In the course of its deliberations the Sub-Committee examined the proposals
appearing in the following documents relating to the Articles indicated:
Article 2
E/CONF.2/11/Add.4 (Peru)
E/CONF.2/11/Add.18 (Italy)
E/CONF2/11/Add.28 (Mexico)
Article 3
E/CONF.2/11/Add.18 (Italy)
E/CONF.2/11/Add. 28 (Mexico)
E/CONF.2/C.1/3/Add.4 (Philippines)
E/CONF.2/C.1/3/Add.7 (Norway)
Article 4 (Formerly Article 5)
E/C0NF.2/l1/Add.32 and E/CONF.2/C.1/7/Corr.1 (Peru)
E/CONF.2/C.1/3/Add.6 (Denmark)
Article 5 (Formerly Article 6)
E/CONF. 2/11/Add.31 (Mexico)
Article 6 (Formerly Article 7)
E/CONF.2/C.1/7/Aadd.2 (Norway)
/6. It was E/CONF.2/C.1/10
Page 2
6. It was agreed that the amendment proposed to Article 5 (formerly Article 6)
by the delegation of Mexico concerning the safeguarding of the rights of
workers should be transferred to Sub-Committee A and discussed in connection
with former Article 4. Accordingly Sub-Committee A has reported on this
proposed amendment.
7. The Sub-Committee held five meetings and agreed to recommend the
accompanying text to the First Committee for its approval in respect of the
matters covered therein. On other points not covered specifically in the
proposed text certain members, as indicated below, stated that in the full
Committee, they might wish to have these points discussed further, In respect
of the various amendments originally proposed the delegations concerned were
able in most cases either to withdraw their proposals after some discussion, or
to consider their proposal as satisfactorily covered by the changes suggested
in the present text. Accordingly the comments of the Sub-Committee in this
report are confined to only certain of the amendments proposed earlier.
8. The Sub-Committee agreed with a suggestion by the representative of the
United States of America that, in order to secure continuity in the balance of
payments provision, it would be desirable to move the Article on fair labour
standards from its earlier position as Article 4 to a position at the end of
the Chapter.
9. The Sub-Committee discussed the proposal presented by the delegation of
Italy (E/CONF.2/11/Add.l8) for the inclusion of a provision for international
co-ordination of employment services with a view to facilitating the migration
of labour where desirable. In the course of the discussion information was
supplied concerning the activities of the Permanent Migration Committee of the
International Labour Organiization in this field and reference was also made to
the Population Commision of the Economic and Social Council. It was the view
of the Sub-Committee that the question of the international movement of labour
was only one aspect, although an important one, of the general question of
international action to assist in securing high levels of employment and that
if mention were to be made of this aspect references to other aspects would
also have to be included at some length. It was the view of the Sub-Committee
that it was unnecessary to include in Chapter II any specific reference to this
particular aspect of the question since the present language of the Chapter
included all the various aspects. The Sub-Committee considered that in
connection with the proposed Resolution on Employment (see E/CONF.2/C.1/7 and
E/CONF.2/5), consideration might be given to the desirability of drawing the
attention of the Economic and Social Council to the importance of the
international mobility of labour and of securing an international co-ordination
/of employment E/CONF.2/C.1/10 Page 3
of employment services for this purpose. The representative of Italy
indicated that his delegation reserved its position pending discussion
in the First Committee.
10. The Sub-Committee considered the proposal by the delegation of Mexico
(E/CON.2/11/Add.28) concerning the treatment of migrant workers and
concluded that particular situations of the sort referred to in the
discussion of the amendment should be the subject of special agreements
and could not appropriately be included in the charter of an international
trade organization. Reference was made also to the work being done by the
International Labour Organization and particularly its Permanent Migration
Committee on the general question of the treatment of migrant workers. The
representative of the delegation of Mexico reserved the right of his
delegation to raise the question again in the full Committee.
11. Concerning the proposal by the delegation of Denmark (E/CONF.2/C.1/3/
Add.6) relating to the initiative of the Organization in the event of
Members experiencing balance-of-payments difficulties, the Sub-Committee
was of the view that, even if the particular case were not of sufficient
urgency to come under paragraph 2 of Article 5 (formerly Article 6), the
Member would be permitted under Articles 89 and 90 to make representations
to other Members and to the Organization and that if such representations
were made to the Organization it was already empowered under the present
text of the Charter to consult with, and make recommendations to, any
or all Members. Accordingly the Sub-Committee felt that the inclusion
of a special reference to the initiative of the Organization in connection
with this Article was not required and that the insertion of such a
reference might appear to cast doubt on the Organization's right of
initiative in connection with other Articles if that right were not also
specially mentioned in such cases.
12. The Sub.Committee discussed the proposal of the delegation of Peru
(E/CONF.2/C.1/7/Corr.1) regarding the disposal of surpluses during periods
of widespread balance-of-payments difficulties. It was generally agreed
that this problem related closely to the provisions of Chapter VI and that
the courses of action contemplated by the representative of Peru were
already provided for, so far as feasible, in Article 55 (and the other Articles
of Chapter VI) and Article 69. Accordingly the Sub-Committee decided not
- to recommend the inclusion of any provision on this subject in Chapter II.
The representative of Peru indicated that his delegation reserved its
position pending discussion in the full Committee.
13. The Sub-Committee discussed at some length the proposals by the
/delegation E/CONF. 2/C.1/10
Page 4
delegation of Norway concerning price stabilization and the prevention of
inflationary developments (F/CONF.2/C.1/3/Add.7 and E/CON.2/C.1/7/Add.2).
The Sub-Committee was of the opinion that rather than consider the need
for a modification in the Chapter at the present time it would be preferable
to await the examination of the various Articles which relate to measures
available to government pursuing a policy of price stabilization, such
as Articles 18, 20, 25-29 and 43, reserving the right of the delegation of
Norway to raise the question again after those Articles have been examined
by the appropriate Committees.
/TEXT RECOMMENDED E/CONF.2/C.1/10
Page 5
TEXT RECOMMENDED BY SUB-COMMITTEE B OF THE FIRST COMMITTEE CHAPTER II
EMPLOYMENT AND ECONOMIC ACTIVITY
Article 2 - Importance of Employment, Production and Demand in Relation to
the Purpose of this Chapter
1. The Members recognize that the avoidance of unemployment or under-
employment, through the achievement and maintenance 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 ssrvices, is not of domestic concern alone, but is also a
necessary condition for the realization of the general purpose and the
objectives set forth in Article 1 of this Charter, including the expansion
of international trade, and thus for the well-being of all other countries.
2. The Members recognize that, while the avoidance of unemployment or
under-employment must depend primarily on [domestic] iternal measures
taken by individual countries, such measures should be supplemented by
concerted action under the sponsorship of the Economic and Social Council
of the United Nations in collaboration with the appropriate inter-
governmental-organizations, each of these bodies acting within its
respective sphere and contssistently with the terms and purposes of its
basic instrument.
3. The Members recognize that the regular exchange of information and
views among Members is indispensable for successful co-operation in the
field of employment and economic activity and should be facilitated by
the Organization.
Article 3 -Maintenance of Domestic employment
1. Each Member shall take action designed to achieve and maintain full
and productive employment and large and steadily growing demand within its
own territory through measures appropriate to* its political, economic and
social institutions.
2. Measures to sustain employment, production and demand slall be
consistent with the other objectives and provisions of this Charter.
Members shall seek to avoid measures which would have the effect of
creating balance-of payments difficulties for other countries.
* The Sub-Committee recommends that the Central Drafting Committee be asked
to c nsider whether this expression should be "appropriate to" or
"consistent with".
/Article 4 E/CONF. 2/C.1/10
Page 6..
Article 4 . Removal of adjustents Within the Baance of Playments
1. In the event that a perisitent ju'stAmentwithin a. Member's balance-
of -paysments is a major factor in. a ituation in which other Members are
involved in balance-of-payments difficulties which handicap them in
carrying out the provisions of Article 3 without report to trade restrictions,
the Member shall make its full contribution1 while appropriate action sha1l
be -en-by te orether- M6emrs eeirn: towards corcting the situation.
2.. Action in accordance with thidues Article shall be taken with regard'
to the irab0.3ity ofem plojilg methods which expand raher than"contract
international trade.
Article 5 Exchange of Rarmtion and Consultation
1. The Members and the Orpnzation shall participate in arrangements made
or sponsored by theEconomi and Sooial Council of the United Nations,
including arrangements with Appropriate inter-governmentel organizations:
(a) for the systenatiocollection, analysis and. exchange of
information, on daomstic empi-ment problems, trends id policies,
including as far as possible -information relating to national
income, demand and the balance-of-payments;
(b) 'for consultation with a view to converted action on the part
of goveinments and, in[er-governmental organizations in Athe field
of employment polioies7 order to promote employment and economic
activity.
2. The Organization shall,oii it considers that the urgency ;f the
situation so requires, Initiate consultations among Members with a view
to their taking appropriate measures against the international spread of
a decline employment, production or demand.
Article 6 Saeg rds for Members Subaect to External Deflationary Pressure
The Organization shall have regard, in the exercise of lts actions
under other provision of this Charter, to thee need of'Members to take
actioi within the provisions of this Charter to safeguard their economic
against deflationary pressure in the event of a serious or abrupt decline
in the iffectivi deid of other countries.
Article 7 - Fair Labour Standards
.- .,,. , , . * . . , * .. |
|
GATT Library | gd354gk5555 | Report of the Ad Hoc Drafting Sub-Committee for the Report of Article 61 | United Nations Economic and Social Council, February 17, 1947 | United Nations. Economic and Social Council and Preparatory Commission of the Conference on Trade and Employment Drafting Committee | 17/02/1947 | official documents | E/PC/T/C.6/W.80 and E/PC/T/C.6/W/58-80 | https://exhibits.stanford.edu/gatt/catalog/gd354gk5555 | gd354gk5555_90230292.xml | GATT_151 | 475 | 3,382 | United Nations Nations Unies RESTRICTED
ECONOMIC CONSEIL E/PC/T/C.6/W.80
AND ECONOMIQUE 17 February 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
DRAFTING COMMITTEE OF THE PREPARATORY COMMlTTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
REPORT OF THE AD HOC DRAFTING SUB-COMMITTEE
FOR THE REPORT OF ARTICLE 61
Article 61. Functions
In addition to the functions provided for in the other Chapters of
this Charter, the Organization shall have the following functions:
1. To collect, analyze and publish information relating to
international trade, including information relating to commercial
policy, business practices, commodity problems and industrial and
general economic development;
2. . To facilitate cousultation among Members on all questions relating
to the provisions of this Charter and to provide for the settlement of
disputes growing out of the provisions of the Charter;
3. To make recommendations for, and promote international agreement
on measures designed to improve the basis of trade and to assure just
and equitable treatment for the enterprises, skills, capital, arts and
technology brought from one country to another, including agreement on
the treatment of foreign nationals and enterprises, on the treatment
of commercial travellers, of commercial arbitration and on the avoidance
of double taxation;
4. Generally, to consult with and make recommendations and, as
necessary, furnish advice and assistance to Members regarding any matter
relating to the purposes of the operation of the Charter, and to perform
any other function appropriate to the purposes and provisions of this
Charter;
/5. To co-operate E/PC/T/C.6/W.80
Page 2
5. To co-operate with the United Nations and with other inter-
governmental organizations for the purpose of furthering the attainment
with an economy of effort, of the economic and social objectives with
the United Nations and the restoration and maintenance of international
peace and security.
The Ad Hoc Sub-Committee furthermore recommends to make the following
insertions and additions to the text of Articles 9 and 57 and to add a new
Article 14 to Chapter IV:
Article2 of the London Report (This is Article 8 as re-numbered and revised
by the Legal Drafting Sub-Committee)
Change the first line to read: "The Members and the Organirzation shall
participate in arrangements undertaken.. . ."
Article 57 of the London Report*
Add a new paragraph 3:
"3. The Organization may, in accordance with the principles of
Chapter VII, consult with and make reocommendations to Members concerning
the initiation of commodity arrangements, the terms of any proposed
commodity arrangements, or the modification or termination of
arrangements already in force."
New Article 14
" The Organization may, in accordance with the principles of this Chapter,
consult with and make recommendations to Members and other appropriate
inter-governmental organizations relating to the encouragement of the
industrial and general economic development of member countries."
* This addition is recommended subject to review of the Legal Drafting
Committee, which is to determine whether this adition is required. |
GATT Library | fd917hz8504 | Report of the Committee to the Conference | United Nations Conference on Trade and Employment, December 15, 1947 | Credentials Committee | 15/12/1947 | official documents | E/CONF.2/C.7/1/Rev.1 and E/CONF. 2/C. 7/1-2 C. 8/1-4 | https://exhibits.stanford.edu/gatt/catalog/fd917hz8504 | fd917hz8504_90200262.xml | GATT_151 | 521 | 4,395 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.7/1/ Rev.1
ON DU 15 December 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
CREDENTIALS COMMITTEE
REPORT OF THE COMMITTEE TO THE CONFERNCE
Chairman: Sr. V. F. BRAGA (Brazil)
1. The Committee has carefully examined the credentials of the participating
delegations and recommends to the Conference the acceptance, without reservation,
of the credentials of the following delegations:
1. Afghanistan 19. Finland (Observer) 39. Panama
2. Argentina 20. France 40. Paraguay (Observer)
3. Australia 21. Ecuador 41. Peru
4. Austria 22. Egypt 42. Poland
5. Belgium 23. Guatemala 43. Philippines
6. Bolivia 24. Greece 44. Portugal
7. Brazil 25. Haiti 45. Salvador
S. Burma 26. India 46. Southern Rhodesia
9. Canada 27. Indonesian Republic 47. Sweden
10. Chile 28. Iran 48. Switzerland
11. Ceylon 29. Iraq 49. Syria
12. China 30. Ireland 50. Transjordan *
13. Colombia 31. Italy 51. Turkey
14. Costa Rica 32. Lebanon 52. Union of South Africa
15. Cuba 33. Liberia 53. United Kingdom
16. Czechoslovakia 34. Luxembourg 54. United States
17. Denmark 35. Mexico 55. Uruguay
18. Dominican Republic 36. Netherlands 56. Venezuela.
37. New Zealand
38. Norway
2. Provisional credentials which do not fulfil the requirements of Rule 3 of
the Rules of Procedure have been received from the delegation of Pakistan and
the Committee invites this delegation to present full credentials prior to
1 January 1948.
3. In regard to the Credentials of the delegation of Nicaragua, the Committee
* The Government of Transjordan will be represented by the delegation of Iraq.
/found these E/CONF.2/C.7/1/Rev.1
Page 2
found these in order and in accordance with Rule 3 of the Rules of Procedure.
However, one of its Members has drawn the attention of the Committee to the fact
that the Nicaraguan Government which issued these credentials has not, at
present, been accorded recognition by any of the governments of the American
Continents. The Committee feels that the acceptance of credentials which are
in order, does not imply a judgment on the statue of the Government which has
issued the credentials and on the legal relations between the said Government
and the other governments participating in the Conference.
4. Since it is anticipated that a Final Act will be signed at the conclusion
of this Conference, and inasmuch as the credentials of some representatives do
not include the powers to sign which are necessary for this purpose, the
Committee invites those representatives to whom this paragraph is applicable
to present proper credentials prior to the termination of the Conference.
5. The following Heads of delegations have submitted credentials which give
them full powers and/or the authority to sign for their country:
Afghanistan Dominican public Peru
Argentina Greece Philippines
Austria Guatemala Salvador
Bolivia Haiti Sweden
Brazil Indonesian Republic Switzerland
Chile Iran Syria
Colombia Iraq Turkey
Costa Rica Italy Union of South Africa
Cuba Liberia Uruguay
Czechoslovakia Mexico Venezuela
Denmark New Zealand
Panama
6. The Committee will examine in due course the original credentials of the
delegation referred to under paragraph (2) above, and proposes that in the
Meantime its delegates attend meetings with the same rights as other
representatives. |
GATT Library | kg439kd8094 | Report of the Committee to the Conference | United Nations Conference on Trade and Employment, December 9, 1947 | Credentials Committee | 09/12/1947 | official documents | E/CONF.2/C.7/1 and E/CONF. 2/C. 7/1-2 C. 8/1-4 | https://exhibits.stanford.edu/gatt/catalog/kg439kd8094 | kg439kd8094_90200261.xml | GATT_151 | 482 | 4,024 | United Nations Nations Unies UNRESRICTED
CONFERENCE CONFERENCE E/CONF.2/C.7/1
ON DU 9 Decmber 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL : ENGLISH
CREDENTIALS COMMTTEE
REPORT OF THE COMMITTEE TO THE CONFERENSE
Chairman: Sr. V. F. BRAGA (Brazil)
1. The Committee has carefully examined the credentials of the participating
delegation and recommends to the Conference the acceptance, without reservation,
of the credentials of the following delegations:
1. Afganistan 19. Finland (Observer) 37. Panama
2. Argentina 20. France 38. Paraguay (Observer)
3. Australia 21. Ecuador 39. Peru
4. Austria 22. Guatemala 40. Poland
5. Belgium 23. Greece 41. Philippines
6. Bolivia 24. Iran 42. Portugal
7. Brazil 25. Ireland 43. Salvador
8. Burma 26. Haiti 44. Southern Rhodesia
9. Canada 27. India 45. Sweden
10. Chile 28. Indonesia 46. Switzerland
11. Ceylon 29. Iraq 47. Syria
12. China 30. Italy 48. Turkey
13. Colombia 31. Liberia 49. Union of South Africa
14. Costa Rica 32. Luxembourg 50. United Kingdom
15. Cuba 33. Mexico 51. Uruguay
16. Czechoslovakia 34. Netherlands 52. Venezuela
17. Denmark 35. New Zealand
18. Dominican 36. Norway
Republic
2. . Provisional credentials which do not fulfil the requirements of Rule 3
of the Rules of Procedure have been received from the following delegations
and the Committee invites these delegations to present full credentials prior
to 1 January 1948:
1. Egypt 3. Pakistan
2. Lebanon 4. United States
3. In regard to the Credentials of the delegation of Nicaragua, the Committee
found these in order and in accordance with Rule 3 of the Rules of Procedure.
/However, one E/CONF.2/C.7/1
Page 2
However, one of its members has drawn the attention of the Committee to the
fact that the Nicaraguan Government which issued these credentials has not,
at present, been accorded recognition by any of the governments of the American
Continents. The Committee feels that this statement does not prevent it from
approving the credentials issued by the Nicaraguean Government and merely
takes note of the information.
4. Since it is anticipated that a Final Act will be signed at the conclusion
of this Conference, and inasmuch as the credentials of some representatives
do not include the powers to sign which are necessary for this purpose, the
Committee invites those representatives to whom this paragraph is applicable
to present proper credentials prior to 'the termination of the Conference.
5. The following Heads of delegations have submitted credencials which
give them full powers and/or the authority to sign for their country:
Afghanistan Iraq
Argentina Italy
Austria Liberia
Bolivia Mexico
Brazil New Zealand
Chile Panama
Colombia Peru
Costa Rica Philippines
Cuba Salvador
Czechoslovakia Sweden
Denmark Switzerland
Dominican Republic Syria
Greece Turkey
Haiti Union of South Africa
Indonesia Uruguay
6. The Committee will examine in due course the original credentials of the
delegations referred to under paragraph (2) above, and proposes that in the
meantime they attend meetings with the same rights as other representatives. |
GATT Library | gt102br3985 | Report of the Credentials Committee to the Conference : Note by the President | United Nations Conference on Trade and Employment, December 15, 1947 | Credentials Committee | 15/12/1947 | official documents | E/CONF.2/C.7/2 and E/CONF. 2/C. 7/1-2 C. 8/1-4 | https://exhibits.stanford.edu/gatt/catalog/gt102br3985 | gt102br3985_90200264.xml | GATT_151 | 91 | 747 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.7/2
ON DU 15 December 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
CREDENTIALS COMMITTEE
REPORT OF THE CREDENTIALS COMMITTEE TO
THE CONFERENCE
Note by the President
As it is intended to submit the report of the Credentials Committee
(document E/CONF.2/C.7/1/Rev.1) to the Conference for approval in the
near future, it, would be appreciated if Delegations which wish to comment
on this Report would Present their comments in writing either to the
President or to the Executive Secretary as soon as possible. |
GATT Library | nx990vw5981 | Report of the Drafting Committee of the Preparatory Committee of the United Nations Conference on Trade and Employment | United Nations Economic and Social Council, February 24, 1947 | United Nations. Economic and Social Council | 24/02/1947 | official documents | E/PC/T/C.6/103 and E/PC/T/C.6/98-103 | https://exhibits.stanford.edu/gatt/catalog/nx990vw5981 | nx990vw5981_90230187.xml | GATT_151 | 5,244 | 35,534 | United Nations
ECONOMIC
AND
SOCIAL COUNCIL
Nations Unies
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/C .6/103
24 February 1947
ORIGINAL: ENGLISH
REPORT OF THE DRAFTING COMMITTEE OF THE PREPARATORY
COMMITTEE OF THE UNITED NATIONS CONFERENCE ON TRADE
AND EMPLOYMENT
CHAPTER VII
INTER GOVERNMENTAL COMMODITY
ARRANGEMENTS E/PC/T/C.6/103
Page 2
CHARTER , X
CHAPTER VII.
NER-MCVEITY TRRANGEMENBTSIOD= Ai .ammm
~ . - . - . E/PC/T/C.6/103
Page 3
COMMENTARY
CHAPTER VII
INTER-GOVERNMENTAL COMMODITY ARRANGEMENTS
General Comments
1. When Article 36 is dealt with the provisions of
Chapter VII which would allow non-Members to participate in
commodity arrangements will, need to be taken into consideration.
2, The delegate for Brazil reserved the position of his
Government on the whole of Chapter VII insofar as its operation
might interfere with the production of primary commodities
for home consumption.
3. In the Report of the First Session (Chapter V, Section A,
paragraph 3, page 19) the Drafting Committee was requested to
examine the use of the terms "primary", "agricultural",
"mineral", "commodityy" and "product" throughout the Charter, in
order to ensure uniformity and consistency in their application.
The Drafting Committee has acted accordingly and it has found
that the terms were properly used throughout this Charter except
in some cases and then due amendments have been made. A
further note in this respect will be found in the commentary
to Article 60.
4. Chapter V, Section D, paragraph 5, page 21, of the Report
of the First Session, referred to the Drafting Committee
suggestions concerning the allocation of certain functions
among the various organs of the Organization. These suggestions.
are taken into account in the drafting of Article 77
: (Functions of the Commodity Commission). However, it was not
felt necessary to specify in great detail the allocation of
functions as given on page 21 of the Report. E/PC/T/C.6/103
Page 4 '
CEERTIR
PTERAhi VII
ERTl1 -GRNMENTALECOMMODITY ARRAN EMEN1G1TS
SIONTOH A N- ITER-EONMEN TAOMM.A.ODITRR NGAMENT: IS
IENEREMMAL
Article 46
Dicffoiltfes Relatino t_ Primary Commodities
TMe -embers recognize that the relationship between
production and consumption of some primarom c-modities may
presenspec liaL difficulties. These special difficulties are
different in character from those which manufactured goods
present generally. They arise out of such conditions as the
disequilibrium betweer p oductian end consumption, the
accumulation ;of burdensome stocks and pronounced fluctuoticns
in prices., They may eav4 serious adverse effects on the
interests of producers and consumers, as well as widespread
repercussiojs Jeopardizing general policies of economic
expansion.
-Article 47.
Objectives of Inter-Governmentaommc~rodity Arganeemsnts
-nter-grne-amental momModitrra aengsments may be employed
to enable countriess to overcome the special difficulties
referred. to in Article 46 without resorting to action
inconsist nt-w th.thurpraposes of this Charter, by achieving
the following objectives:
(a) to prevent or alleviate the serious economic problems
which may arise when, production adjustments cannot be
effected by the free play oar m-ket forces as rapidly as
the circumstances require;
(b) to vioytde, during the period which may be necessary,
a framework for the. consideration and development of
. E/PC/T/C.6/103
Page 5
COMMENTARY
CHAPTER VII
INTER-GOVERNMENTAL COMMODITY ARRANGEMENTS
SPECIFIC COMMENTS
. *
cArtile 47 E/PC/T/C .6/103
Page 6 .
Measures which will have as their purpose economic
adjustment designed to promote the expansion of
consumption of a shift of resources and manpower out of
over-expanded. industries into new and productive
occupations;
(c) to moderate pronounced fluctuations in the price of
a primary commodity above and below the level which
expresses the long term equilibrium between the forces
of supply and, demand [in order to achieve a reasonable
degree of stability on the basis of remunerative prices
to efficient producers without unfairness to consumers];
(d) to maintain and develop the natural resources of the
world and protect them from unnecessary exhaustion; and
(e) to provide for expansion in the production of a
primary commodity which is in such short supply as
seriously to prejudice the interests of consumers.
Article 48
Special Commodity Studies
1. Any Member substantially interested in the production,
consumption or trade of a particular primary commodity shall
be entitled, if it considers that special difficulties exist
or are expected to arise regarding the commodity, to ask that
a study of that commodity be made.
2. Unless it resolves that a prima facie case has not been
established, the Organization shall promptly invite the Members
substantially interested in the production and consumption
of or trade in the commodity to appoint representatives to
a Study Group to make a study of the commodity. Non-Members
having a similar interest may also be invited. E/PC/T/C.6/103
Page 7 .
COMMENTARY -. .. . I.,
.7 (c) tio he Cuban delegaiqn..stressed that the statement of
objectives, of ccnmodiul arralngements sho d incude provision
we . . .. .for res erative ae v4ell.as tble priceS.3,specially in view of
the fact that in certain countries, due to the lack of
alterative employment, ,roduction of a commodity continues
evec when not.prqtitable. .t.was depided to introduce the
Cubae.a mendmend between square brackatsas an aIdition to the
prentisub-para#gap (c). .d to add to -th amendment wording
safeguarding the interests. of consumers..
47: (d) The delegate of the UntedStates doubted the necessity of
and (e)
including sub-pa graps (d) and (e), because they pertain
exclusive- to shortage situations. With reference to sub-
paragraph (d), he was of the opinion that as conservation
agreements were by their nature regulatory they would have to
conform to the principles governing regulatory agreements;
however, the statement of the circumstances governing the use
of regulatory agreements formulated in Chapter VII did not
appear applicable to conservation agreements, because it
required te p6se~ieof a -brdensom:-surplus or widespread
unemployment. As to sub-paragraph (e) it was difficult to
devise an objective wammy of determine when a coodity was in
such short supply as to prejudice seriously the interests
of consMers.
... . ... .,. , :.. ^ * - E/PC/T/C. 6/103
Page 8
CHARTER
3. The Study Group shall, in the light of an investigation of
the root causes of the problem, promptly report its findings
regarding the production, consumption and trade situation of
the commodity. If the Study Group finds that special
difficulties exist or are expected to arise it shall make
recommendations to the Organization as to how best to deal with
such difficulties. The Organization shall transmit
promptly to the Members any such findings and recommendations.
A~~~rleco94Sf
Commodity Conferences
1On ~C the basis of the recondadcItions of the Study Group
or on the basis of information about the root causes of the
problems agreed to be adequate by the Members substantially
interested in the production, consumption or trade of a
particularimr~iaromm cnoyit7, the OrganiiatIoh sball
promptly at the request of a Mem er'having a substantial
interest, oromay, on its own initiative, convene an inter-
govmernental conference for the purpose of discussing
measures desig ed'to meet the special difficulties which have
been found to exist or are expected to arise.
2. Any Member having a substantial interest in the
production an consumption of or trade in the commodity shall
be entitled to participate in the Conference, and non-Members
having a similar interest may be invited by the Organization
to participate.
Article 50
Relations with In-er;Governmental
Organizations
1. Competent inter-governmental organizations, such as the
Food and. Agriculture Organization, shall be entitled E/PC/T/C.6/103
Page 9, .
COMMETARY
~~~2.. : ;, 2 ,t'.L*+t'
Article 49
Paragraph 3 of the textd as eraftod in Lowdon Was deleted,
because it seemed chmmt zonodity arrangemenom ridcamened by
the Conference would have to .conform t tre%cpainoiples stated
in the ChapteF. furthermore, regulatory agreements would have
to co nor iolyt,.on to toe prbvisions of Article 51, but
also to those. of Article 53.
.,.
. ...
. .M- I
. -'j I , -
I . . j: .,- .?. -
. . . - ?- -.' , - C.,% : , , E/PC/T/C.6/103 Page 10
CHARTER (a) to submit to the Organization any relevant study of
a primary commodity;
(b) to ask that a study of a primary commodity be made.
2. The Organization may request any inter-governmental
organization which it deems to be competent, to attend or
take part in the work of a Study Group or of a Commodity
Conference.
Article 51
General Principles of Inter-Governmental
Commodity Arrangements
Members undertake to adhere to the following principles
governing the operation of all types of inter-governmental
commodity arrangements:
(a) such arrangements shall be open initially to
SY4 _- .* ' *:226*j - . *2ht *.-
participation by any Member on terms no less favourable
than those accorded to any other country and thereafter
upon such term as may be approved by the Organization;
(b) non-Members may be invited by the Organization to
participate in. such arrangements and the provisions of
sub-paragraph (a) of this Article applying to Members
shall apply to any non-Member so invited;
(c) under such arrangements participating countries shall
arrange for equitable treatment as between non-participating
Members and participating countries affording advantages
commensurate with obligations accepted by
non-participating Members;
(d) participating countries shall, in matters the subject
of such arrangements, afford non-participating Members
treatment no less favourable than that accorded to any E/PC/T/C. 6/103
Page 11
COMMENTARY
, . - .*
1eneral PrIycloles of Tnter-Govermental
A l .ne from the Jw.- ts.. .dft 4et the First Session
was made in the arrapgement of the paragraphs; paragraphs 1
and 2 remain with minor drafting, changes, as sub-paragraphs (a)
and. (b), ne. sub-p ra phs c.) and (d) have been added.
phs 2 and containticneg the substance of p3aa .. an, 3 of Aril 53
. ... an. 3 ofAtce5
of the London'ha.ter. and sub- aregrap:s (e), (f), and (g)
repcivJy
are the former parqg"B P;3-5,nd ' res e tiv. ,
Paragraph J of the Iondon tezt has been transferred from
Article 51 to Artici? 53.
~~.:- .w.''>. ' ._i '
51: (c) These paaraphs IUae beep includedl ~n.tis Article
and (d)
becausof t tbat the provisions
contained'ix them apled . l dit arrangements and nio
to regu~ator~ a~rem * . * .
51: (The text of tara eseont of paragraph vas
- ged an ordei'to -b iftftheofp ition o fnon-participating
Ken c*zti*e- ,
~..
~~~~~~ . . ..
~~~~~Ciicr 51 t Aric'v 3 E/PC/T/C.6/103 Page 12
CHARTER non-Member which does not participate in the arrangement;
(e) such arrangements shall include provision for
adequate participation of countries substantially
interested, in the importation or consumption of the
commodity as well as those substantially interested in its
exportation or production;
(f) such arrangements shall provide, where practicable,
for measures designed to expand world consumption of the
commodity;
(g) full publicity shall be given to any inter-
. , .o iy arrangeme.
gy vernmentanl 0on0atiarrangemet proposed or concluded,
tf the statements o° considerations and objectives advanced
ey the proposinn NZrbers, to the uatuie and development
of measures adopted to correct the underlying situation
which gave rise to the arrangement and, periodically, to
the operation of the arrangement.
GECTIONENB - INTER GOVERNRGNGAMENTMMODITY AREAMEK S
lLAVOLVING PRO' GUITION OF FE9DUCTION,
TRADE AND PRICES
Article 52
Circumstances Governing the Use of Regulatory Agreements
Members agree that regulatory agreements may be employed
onlyr when it is determined that:
(a) a burdensome surplus of a primary commodity has
developCtd or is expected o develop; which would cause
serious hardship nto poroducers, amog whm are small
puroducers vhb ccont for a substantial portion of the
total output, and these conditions cannot be corrected by
normal ms~ket forces alone, in time to prevent such
hardship) because characteristically, in the case of
VI
: E/PC/T/C.6/103
Page l
51:(g) After some discussion the Committee agrees to maintain the
words "full publicity" on the understanding that the application
of this requirement to any. "proposed" arrangement would not
entail publicity in regard to discussions and verbatim records
before the arrangement began operating. It was also agreed to
stipulatee that the operation of the agreement should be given
publicity periodically. . .
Article 52.
Circumsuancery: Governing tbe .s. of Reg'lato:. Agreements
52: (e)Tt-' fe ,tat!the hrase J"blicusecharacteristically,
and. ,' , , ,
in the case of the primar commodity concerned, a substantial
reduction in price does not lead to a significant..." is only
to be considered as a de'eriptive one and is mot to be
interpreted in the sense *bat a substantial reduction in price
Vould be regarded as a pre-requieite for the adoption or
extension of a regulatory agreement. the primary commodity concerned, a substantial reduction
in price does not readily lead to a significant decrease
in production; or
(b) widespread unemployment or under-employment in
connection with a primary commodity, arising out of
difficulties of the kind referred to in Article 46, has
developed or is expected to develop, which would not be
corrected by normal market forces alone in time to
prevent widespread and undue hardship to workers,
becauee characteristically, in the case of the industry
concerned; a substantial reduction in price does not
. ~ .: eadily lead to a- significant intrease in consumpnion but
to thd dedtctior usmployet and becaee areas in
. -: , -cwh ch thexccmodity -is produedin substantial quantity
do hot afford aluernative employment opportmnities for
the workers involved; or
(c) the Crganiomtion fiadtX that, for a coemdity other
than a primary-comodity, in.addition to the circumstances
set forth in either (a) or (bj above, exceptioral
h iccita. Agr ee3ti uunaqttonA=.: ments i 8 der tis
sub-paragraph shall be governed not only by the principles
set forth In this Chapter but also by any other
.. -ganme~ts.V -therta lish.onmawy et-b3
~~~~ . E/PC/T/C.6/103
Page 15
COMMENTARY
The Chilean delegate felt that the problems of countries
with a small volume of international trade as distinct from
those of small producers did not receive sufficient attention
in the London text; it is particularly in such countries that
hardships to a substantial part of the economy are liable to
hamper the well-being of the country, even when there are no
small producers. He therefore suggested the following
amendment to paragraph 1 as it appears in the Charter as
drafted in London:
After "serious hardship to producers" delete "among whom
are small producers who account for a substantial portion
of the total output" and substitute "or affecting the
economy of one or more of the Member countries, which
Jointly or individually represent a substantial portion
of the total output; or".
It was the general opinion of the Drafting Committee that,
as the hardships the Chilean proposal was intended to cover
would be the outcome of unemployment or under-employment, they
were in fact covered by sub-paragraph (b) of Article 52.
52: (b) It was decided to provide for the possible use of
regulatory agreements not only when unemployment but also when
under-employment exists.
52: (c) The drafting change containe in sub-paragraph (c) was
based on the consideration that commodity arrangements concerning
non-primary Products should not be easier to conclude than
those for primary commodities. The London text was ambiguous
and might have been interpreted to mean that arrangements for
commodities other then primary commodities could be concluded
without a burdensome surplus or widespread unemployment being in E/PC/T/C.6/103
Page. 16
CHARTER
*"
- .I- 1
~~ ~~~~ . E/PC/T/C .6/103
Page 17
existence or expected
Suggested Additional Paragraph: ,;
The FAOQobserv r raiues.the q3aSt on as to-whether the
' ' agoa.pars6r~dhs ., sn. 2o.Article 52 comvers comodity
agrwhmcnts vbieh migst be deoirediin order to promote price
3tabflexp nndda Paduck proand ion uW4,.consmption, as
Itcnmie ded forlbasiuffoodstptfs in the ReportFof the PAO
t Pre tormm so 4 isaWorld yiWrJ4 ood Proposals. If not, he
se&gestsdollthe f cwangeg.che s in Article 52:
Chaege ts. prevent sub-paragraph (c) to sub-paragdaph (&)
ant idd a negw paracaph eadinr4n4 ag follows:
(c) nt isjaryesseaxnato eRnble thu prodUcers and the
governments concerned to carryforward concerted
mrograrmes for the expanofon ' aggregate world
production nand cosumption of a yrimemr comodity or".
Itewagn racooized that the matter was one for
consideration at Geneva.
.~~~~~~~~~~~~~~~~A E/PC/T/C. 6/103
Page 18
CHARTER Article 53 ,
Additional Prlincipes GoverRning egulatory Agreements
Members undertake to adhere to the following principles
governingla regutory agreements in additoon tp those stated in
Article 51:
(a) Members agree not to ittoIXnn t ay new regulatory
ageement unless as h a been.recommd endeby a conference
called in accordawce vith cAr i9e.41. Nevertheless,
Members substantially intereste in.the productaon end
consumption of, or tride In, a particular commodity may
proceed by direct negotiation to the conclusion of an
agreement, provided that it conforms to the other
provisions of this Chapter, if there has been
unreasonable delay in the proceedings of the Study Group
or of the Commodity Conference; .
(b) such agreements shall be desi neo& t. assure the
avalibilability of supplies adequate at all times for
world demand at reasona[ae Z-nd se]abl7 prices
remunerative to effeicint prodrs];;
(c) under such agreements participating countries which
are largely dependent for consumption on imports of the
commodity involved shall, in determinations made relating
to substantive matters, have together a voice equal to
that of those countries largely interested in obtaining
export markets for the commodity, provided that any country
which. is largelyiInterested in the commodity but which does
not fall precisely under either of the above categories,
shall, according to is3 interests in the circumstances,
have an appropriate voice within one or the other E/PC/T/C.6/103 Page 19 .
NOMM4ETARY
Aditlonai PrpnciuGes 0ovngerni lReguy Agreeme . nts
; . .s - - _ . -
TherM ha been a cha8sp in the arrangement of the
paregraphs from the text as draoted at the First Sessicn;
- _. .' . . I! ; : * - .: ;W
-aragraph 1 bees sub-paragraph .(a, sub-paragraph (b)
contains the aubstance of former paragraph, 4, ub-paragraph (c)
wS v-.1 . ' ;' s 't. E . - - *
is the reiorulation'of paragraph 1 of Article 51 of the
L'4.on Charter end vub-paragrapis (d) and (e) are the former
graphs 5 ad respectively.
I
53: (b) The delegate of Cuba submitted an amendment to
sub-paragraph (b) which it -as decided to refer to Geneva
Inserting it in the text of the par'raph between square
brackets. The Chilean delegate asked that a reasonable price"
should not be a price ihich does not cover the costa of
production
53: (c) 1. The transfer of this sub-paragraph from Article 51 was
motivated by the fact that the equality of producers and
consumers In representation and in voting vas of importance
ony in regulatory agreeme. The delegate of the
Unite& ingdom reserved his.position concerns this transfer
and the delegates o0 Australia and WevZetland were of the
opinion that the thole text of the jub-peragrph should be
Within square brackets because the transfer from Article 51 E/PC/T/C.6/103 Page. 20
CHARTER category without altering the equality between the two;
(d) such agreements shall, with due regard to the need
during a period of change for preventing serious economic
and social dislocation and to the position of producing
areas which may suffering from abnormal and temporary
disabilities, make appropriate provision to afford
requirements from sources from which such requirements
can b supplied in e most tff'ction and~nepftr X manner; economic
cipat ng .u' i s-shalltformulonntrieD Pb4lL AO=Alate and adopt
a progrus&e of economic sdjwtment believed to be
s- s 'nt 8ltCro rnes eubeta~iaiu pogsesa toward soltion
of the prob em iishin the.timetlimjtp of the agreement.
. E/PC/T/C.6/103 Page 21
COMMENTARY
constituted a substantive change.
2. There was a substantial agreement in the Committee in
favour of clarifying the text of that part of sub-paragraph (c)
which pertains to the position of countries whose foremost
interest is in the production and consumption of a commodity,
but not in its trade. It was thought that in this respect
the London text was subject to misinterpretation and a new
text was devised in order to avoid the possibility of the
existence of a third group of countries; the producers-
consumers, who in matters of voting might upset the balance
in favour of either importers or exporters, Under the
present wording, the producers who at the same time are
consumers may in matters of representation and voting he
included according to their interests with either importers
or exporters. The delegate of the United Kingdom expressed
doubt as to the effect of the insertion in the text of the
following expression: "according to its interests in the
circumstances" and, "within one or the other category without
altering the equality between the two", and suggested that
they be put between square brackets.
3. For sub-paragraph (c) the delegate for Chile proposed
the text of sub-paragraph (4) of Article 51 of the text as
drafted at the First Session:
"In such arrangements participating countries.
under either of the above classes, shall have an
appropriate voice;"
with the addition of.:
"Provided also that said consuming or exporting countries
will not oppose the adoption of necessary measures to E/PC/C.6/103 Page 22
CHARTER% . ; t
,*., zt .._, . wst ,--**.- *s), ih
" ** w s e v s t:, *.- 84 -'s E/PC/TC .6/103 I
Page 23
OMMENTARY a -easonable, price increase for said product, when the
price has h a- ai.pprei leab dreasade as compared with a
prior representative period, or when current prices do
nsco ev r~tat elproduction costanda would substantially
affect the econcmy of one or more Member-countriew vhich
represent c 6onsiderable portion of t e-total output of
said product".*
The Chi ean delegate felt that this proposal was notemsant
. -to be a s bhtantiae.cbange end that the point raised by his
delegation wvuld be co-ered if the proposed Cuban amendment
to Articwe 47f(c) vere iinallH wgreed. lovever, some delegates
ndersotod-thatpc'her sti'ulations of the Charter covered the
intereilsathamCn.menn c-s mdanreit cover. to CC7'-
53: (e) w It vas fthe thas .uhstane "l bboe tia.prcgress toward
oolutiop Qf tme ;robled" caseerewherc-sh hag'e m'e eareenent
impedei a deonrooratier 0u tie sitJaiton.
.- E/PC/T/C.6./103
Page 24
CHARTER
Article 54
Administration of Regulatory Agreements
1. Each regulatory agreement shall provide for the
establishment, of a governing body, herein referred to as a
Commodity Council.
2. Each of the countries participating in an agreement
shall be entitled to have one representative on the Commodity
Council. These representatives alone shall have the right to
vote. Their voting power shall be determined in such a way
as to conform with the provisions of sub-paragraph (c) of
Article 53.
3. The Organization shall be entitled to appoint a non-
voting representative to each Commodity Council and may invite
any competent inter-governmental organization to nominate
a non-voting representative for appointment to a Commodity
Council.
4. Each Commodity Council shall have a non-voting chairman
who, if the Council so requests, shall be nominated by the
Organization.
5. The Secretariat of each Commodity Council shalI be
appointed by the Council after consultation with the
Organization.
6. Each Commodity Council shall adopt appropriate rules of
procedure and regulations regarding its activities, provided
that they are not found by the Organization to be inconsistent
with the principles and provisions of this Charter.
7. Each Commodity Council shall make periodic reports to
the Organization on the operation of the agreement which it
administers. In addition, it shall make such special reports E/PC/T/C .6/103
Page 25
^OMMENTARYlomy
Article 54
-Adinistration of uegNlatory ALree9mnts
~ .. .
-- ;
5~: 6. The Cuban delegate suggested a change in the text of
paragraph 6 in order to avoid the necessity for approval by the
Organization of every'deitailed. rule of procedure adopted by the
wCo.odty.oificil. Iom~as -areed by the C*mittee that an
* .., ..appQvael wasthe Organization :ka sufficient and the text
Vnglchne owcruime1y. t allcir rles of -prcedure and
ed. rgy theaton mmo b Co= dity Council to stan. unless the
. - . - .. *~
Orwinziation decideds that they conflicted vith the provision
.* . ofthhAter.. E/PC/T/C.6/103
Page 26 -
ECHARTR
as the Organizamion bac speoify or as the Council itself
considers. to bvaof -tlue to the Organization.
8. The expenses ofmm Coliodity Council shall be borne
by the participating countries.
Arti5le 5S
Provision for Initial Terms, Review and Renewal of
BeguyatorZ Agreements
Io regulatory agreement shall remain in force for more
then five years, unless renewed, and no renewal shall be for
a longer period then five years. Renawal end termination of
such agreements shall be subject to the procedures
established therein and renewed agreements shall conform to
the principles of this Chapter. Regulatory agreements shall
also include provision for withdrawal of any party.
dirio-fcally, at iantervls no greater then three years, the
Organization shall prepare and publish a review of the
operation of each agreement in the light of the principles set
forth in this Chapter. Moreover a regulatory agreement shall
provide that if its operation has failed substantially to
conform to the principles laid down in this Chapter,
participating countries shall revise the agreement to conform
to the principles, or shell terminate it. When an agreement is
terminated, the Organization shall take charge of archives
and, statistical material of the Commodity Council.
Article 56
Settlement of Disputes
Any question. or differeonce cinerniig the interpretation of
the provisions of a regulatory agreement or arising out of its
operation. shall be discussed. originally by tmm io~odtty Council.
In the absence of agreemeht, toe question shall be referred to E/PC/T/C. 6/103
Page 27
COMMENTARY
Article 55
Provision for Initial Terms, Review and Renewal of
Regulatory Agreements
On the suggestion of the Cuban delegation, it was
agreed by the Committee, to make explicit provision in the
text for the withdrawal of Members from commodity
arrangements. It Was also agreed to add a reference to the
possibility of terminating an agreement by mutual consent,
even though the arrangement had conformed to the principles
of the Chapter.
Article 56
Settlement of Disputes
The reference to Article 71 in the text as drafted at
the First Session has been replaced by a reference to
Article 86. E/PC/T/C.6/103
Page 28
CHARTER
the Commodity Commission for examination and recommendation to
the Excecutive Board. The Executive Board. shall then issue a
ruling in pursuance of the provisions of Article 86.
SECTION C - MISCELLANEOUS PROVISIONS
Article 57
Obligations of Members Regarding Existing and
Proposed Commodity Arrangements
1. Members. shall transmit to the Organization the full text
of each inter-governmental commodity arrangement in which they
are participating at the time of the coming into force of their
obligations under this Charter. Members shall also transmit
to the Organization appropriate information regarding the
formulation, provisions and operation of such arrangements.
Members shall conform with the decisions made by the
Organization regarding their continued participation in any
such inter-governmental commodity arrangement which, after
review by the Organization, shall have been found to be
inconsistent with the intentions of this Chapter.
2. Members shall transmit to the Organization appropriats
information regarding any negotiations, looking to the
conclusion of an inter-governmental commodity arrangement, in
which they are participating at the time of the coming into
force of their obligations under this Charter. Members shall
also conform with decisions made by the Organization regarding
their continued participation in any such negotiations. The
Organization may dispense with the requirement of a Study
Group or a Commodity Conference, if it finds them
unneceesary in the light of the negotiations. E/PC/T/C.6/103
Page 29 .
MCQOENTARY
; . . . " . I . I E /PC/T/C.6 /10 3
Page 30
CHARTER
Article 58
General Undertaking by Members
Members, including Members not parties to a particular
commodity arrangement, shall give the most favourable possible
consideration to any recommendation by a Commodity Council
for expanding consumption of the commodity in question.
Article 59
Exceptions to Provisions Relating to Inter-Governmental
Commodity Arrangements
The provisions of Chapter VII shall not apply:
(a) to inter-governmental commodity arrangements which
relate solely to the equitable distribution of
commodities in short supply, or to those provisions of
inter-governmental commodity arrangements which
appropriately relate to the protection of public
morals or the protection of human, animal or plant life
or health; provided, that such arrangements are not used
to accomplish results inconsistent with the objectives
of Chapter VI or Chapter VII. Members shall not
participate in such arrangements if they involve the
regulation of production, trade or prices, unless
authorized or provided for by a multilateral convention
subscribed to by a majority of the countries affected or
unless operated under the Organization;
(b) to international fisheries or wildlife conservation
agreements with the sole objective of conserving and
.developing these resources or to agreements relating to the
purchase and sale of a commodity falling under Section E
of Chapter V; and E/PC/T/C.6/103 Page 31
COMMENTARY
Article 59
The Committee was of the opinion that arrangements
relating solely to the equitable distribution of commodities
in short supply and mentioned in this Artlicle should be
short-term arrangement of a transitional character.
59: (b) In order to ensure that the provisions of Chapter VII should
not apply to conservation agreements relating to wildlife and
fesheries and to agreements made in accordance with the
provisions of Section E of Chapter V, it was decided to group
these agreements with the exceptions contained in this Article. E/PC/T/C.6/103
Page 32
CHARTER
(c) to arrangements relating to fissionpable materials,
to the traffic in arms, ammunition and implements of war
and to such traffic in other goods and materials as is
carried. on for the purpose of supplying a military
establishment, or, in the time of war or other emergency
in international relations, to the protection of the
essential security interests of a Member.
Article 60
Definitions
1. For the purposes of this Chapter, the term "primary
commodity" means any product of farm, forest or fishery, or
any mineral, which enters world trade in substantial volume
in a form customarily called primary, and may include such a
product on which minor processing has been performed in
preparation for export. The term may also cover a group of
commodities, of which one is a primary commodity as defined. above
and the others are commodities (whether primary or non-primary).
which are so closely related to the other commodities in the
group that they can conveniently be dealt with in a single
arrangement,
2. For the purposes of this Chapter, the term "Member" or
"non-Member" shall be taken to mean a Member or non-Member of
the Organization with its dependent territories. If a Member
or non-Member and its dependent territories form a group, of
which one or more units are mainly interested in the export of
a commodity and. one or more in the import of the commodity,
there may be either joint representation for all the associated
territories or, where it is so desired separate representation.
for the territories mainly interested in export and separate
representation for the territories mainly interested in import. E/PC/T/C.6/103
Page 33
Article 60
Definitions
60:1 1. Acting upon the instructions of the Preparatory Committee,
the Drafting Committee made more specific the definition of a
primary commodity, and particularly so as to make clearer the
inclusion or products closely related. to primary commodities
within the scope of commodity arrangements.
2. The delegate of Norway reserved the position of his
Government regarding the inclusion of fishery products. CHARTER 3. A regulatory agreement is an inter-governmental commodity
arrangement involving regulation of the production, export
or import of a commodity or regulation of prices.
E/PC /T/C.6/103
Page 34 ". E/PC/T/C.6/103
Page 35
COMMENTARY
60:3 On the suggestion of the United States delegation, it was
decided to delete the definition of inter-governmental
commodity arrangements because the statement contained in
paragraph 3 of the London Charter was too broad and furthermore
the nature of inter-governmental commodity agreements was
implicit in the Chapter. |
GATT Library | mk274yv0703 | Report of the Drafting Committee of the Preparatory Committee of the United Nations Conference on Trade and Employment | United Nations Economic and Social Council, February 22, 1947 | United Nations. Economic and Social Council | 22/02/1947 | official documents | E/PC/T/C.6/99 and E/PC/T/C.6/98-103 | https://exhibits.stanford.edu/gatt/catalog/mk274yv0703 | mk274yv0703_90230181.xml | GATT_151 | 476 | 3,223 | United Nations
ECONOMIC
AND
SOCIAL COUNCIL
Nations Unies
CONSEIL
ECNOMIQUE
ET SOCIAL
RESTRICTEDSCTJM
E/PC/T/C .6/99
22 February 1947
CIGINENGLISHAL: M
T PORDRAFTING COMMITTEE OF THE PREPARATORYT OF CTEETtOMM
ITED NATIONS CONFERENCENCE ON TRADND EMPLOYMENT
ER I PURPOSE. ,;, ^^-. . . .C................................ I,
mmThe text of Chapter I as redrafted by the Drafting Omittee
appears in document E/Pc/T/C.6/7S and as revised. by. the Legal.
Drafting ConqIttee, An, this. document. : >- .
- ,.. . ...
4. . . . ..
I .
. . I E/PC/T/C.6/99 ..
Page 2
.. .. . .... . :
-,. . .rp o . -
Article 1
General PuWpoSeb- ,
: pusunci tie dArmaatin of the United Nations to create
conditions of econmic and. ocial brogrea. e to world peace,
the States perty to this Charter hereby, establish an International
Trade Organization through which they vii work for the fulfilment of
the ereunet:
1. To p ~6t-natibnai and:ine-iational action!
(a) designed to realize the-objectives set forth in
the Charter -of the United Nations and particularly in
Article. 55 (a) thereof, name3l, higher standards of
living, full employment, and conditions of economic
and social progress end development;
(b) for the expansion of the production, exchange and
consumption of goods, for the achievement and maintenance
in all countries of high and steadily rising levels of
effective demand and real income, for the development
of the economic resources of the vorld and for the
reduction ef tariffs and other trade barriers and the
elimination of all forms of discriminatory treatment in
internaional coerce;
(c) to avoid, excessive fluctuation in world trade and
contribute to a balanced and expanding world economy.
2. To further the enjoyment by all Member countries, on equal terms,
of access to the markets, products and productive facilities which are
needed for their economic prosperity and development.
3. To encourage and assist the industrial and general. economic
developent of Member countries, particularly of those still in
the early stages of industrial development. E/PC/T/C .6/99
Page 3
COMMENTARY
Article 1
General Purposes .
The Preparatory Committee had considered that any, discussion on
this subject should be postponed "until the structure of the-..
Organiz ation can be seenas a whole". The Drafting Committee, feeling
that at the present stage the structure of tshe Organization i emerging
with sufficient clarity, prepared a new draft of this Article,
paragraph 1 of which conforms to the wordiNng of the United ations Charter. E/PC/T/C.6/99 Page 4 ,
ERARTER
4. To facilitate the solutions of probiems In the field of
international trads, employmen and: economic development
gh rov& consultation ald coflaboration among Members.
5. To enable Members, by increasing the opportunities for -
their trade con eoc iomi development mutuallyyadda, vntageous
basis,v to aoid reecoo urs trmeashichues w disrupt world
rceco6i'duce pruodiicvem *eloywm et- o retard economic
*. * . * * ; , - :.. |
GATT Library | hp747jx1708 | Report of the Drafting Committee of the Preparatory Committee of the United Nations Conference on Trade and Employment | United Nations Economic and Social Council, February 22, 1947 | United Nations. Economic and Social Council | 22/02/1947 | official documents | E/PC/T/C.6/97/Rev.1 and E/PC/T/C.6/97-97/REV.1 | https://exhibits.stanford.edu/gatt/catalog/hp747jx1708 | hp747jx1708_90230175.xml | GATT_151 | 19,977 | 129,786 | United Nations
ECONOMIC
AND
Nations Unies RESTRICTED
CONSEIL E/PC/T/C.6/97/Rev.1 22 February 1947
ECONOMIQUE
AND ORIGINAL: ENGLISH
SOCIAL COUNCIL ET SOCIAL
REPORT OF THE
DRAFTING COMMITTEE OF THE PREPARATORY COMMITTEE OF THE
UNITED NATOONS CONFERENCE ON TRADE AND EMPLOYMENT
CHAPTER V
GEMERAL COMMERCIAL POLICY".
(Note by the Secretariat
The Articles covered by this draft Report and the documents used in
establishing the Charter texts (given on left-hand pages) are indicated
below. It should be observed, however, that the texts embody certain
changes decided upon by the Legal Drafting Sub-Coumittee and not
recorded in documents distributed at the time the Report was drafted.
Article Domutent
14 E FC/P/T/C. w6/.72
15 - 23 PE//CT/C.6/5R5te1.i
24, 25 E/PCT/C./W A.72
25:f(r) /PEjC/T/C .90go
26 - 31 E/PC/?CC.W6/.81
27:2(b) - (d) / I/CIT/C.6//RTTe1vl
31:3 E LCPt/T/C.6/W.94
32 P P/IT/j/C.6/W.86
34, 35 E/PT/C.6/Ww..66
37 E .//PCT/C.6/5R5v /.1
38 PC/T- /C/61w.66
The mmeountss given opposite o. the respectiv 'Charter texts epocify
the. changes introduced by the Drafting Cmm-ittee in the Charter as adopted at
the First Session of therPleparotcry mo=mittee only if these changes are of
particular importance or when it was considered desirable to indicate the
reasons for the changem zade.) E/PC/T/C .6/97/Rev. 1
Page 2
ChARTER
CHAPTER V
GENERAL COMMERCIAL POLICY
Section A. - General Commercial Provisions, Most-Favoured-
Nation Treatment
Article 14
General Most-Favoured-Nation Treatment
1. With respect to customs duties and charges of any kind
imposed on or in connection with importation or exportation
or imposed on the international transfer of payments for
imports or exports, and with-respect to the method of levying
such duties and charges, and with respect to all rules and
formalities in connecticn with importation or exportation
and with respect to all matters in regard to which national
treatment is provided for in Article 15, any advantage
favour, privilege or immunity granted by any Member to any
product originating in or destined for any other country,
shall be accorded immediately and unconditionally to the
like product originating in or destined for all other Member
countries respectively. E/PC/T/C. 6/97/Rev. 1
Page 3 ;
COMENMTARY
CHATIR VS
GEERMAL CMMERCcIAL POLICY
Section A
Article 14
General Most-Favoure .Nation Treatment
General Comment
The delegates for Australia and India maintained their
suggestion made at the First Session of the Preparatory
Committee that Articles 14aend 24 "ho-uld beinzterpreted in
such a way that, so long as a preference remained accordable
in one part of a preferential system specified in
paragraph 2 of Article 8 (now Article 14), that part of the
preferential system according theprrefrenncesshou l . be at
liberty to extend the same, or a laesermresiurs of
preference to any other part of thesamae preferential
syste .wthich at present did ont enjoy it."
:he delgEate for the Union of Soth1 Africa agreed with
this suggestion.
14
141 E/PC/T/C.6/97Rev. 1
Page 4
2. The provisions of paragraph 1 of this Article shall not
be construed to require the elimination of any preferences
in respect of customs duties or other charges imposed on
importation, which do not exceed the preferences remaining
in force after the negotiations contemplated in Article 24
and which fall within the following descriptions:
(a) Preferences in force exclusively
(i) between two or more territories which on
1 July 1939 were connected by common
sovereignty or relations of protection or
suzerainty; or
(ii) between two or more of the territories listed
in Annexure A to this Charter.
Each Member to which provision (i) applies shall
provide a list of such territories which shall be
incorporated in an annexure to this Charter.
(b) Preferences in force exclusively between the
United States of America and the Republic of Cuba.
(c) Preferences in force on 1 July 1946 exclusively
between neighbouring countries.
.1.
; :': I . I . E/PC/T/C. 6/97/Rev. 1
Page 5
COMMENTARY
Specific Comments
14:2 1. The delegate for China who wished to reserve the
right of his Government in case of absolute need to
resort to preferences in the future.
2. The delegate for Chile, while accepting in
principle paragraph 2, was not in full agreement with
the provision as it stood. He wished to reserve the
right to raise the question at the Second Session or
at the World Trade Conference. E/PC/T/C.6/97/Rev. 1
Page 6
CHARTER :
Article 15 :
Na ional treatmen on In naltermi TaxaanonReud Pegulation
ehtemb siag'ee o-aehBaiteeihr intvrlataxes s nor other
iernal chokarges norniztnal llaws , regulations or requiremen ts
suld d be usetooaff rdfo protection directly or indiceotly
f ane y. natnao rl product.
2.The- :e products ny MambyM crlnoouctry imported iaty wn
ther M mbertry shall bxempt st from internal taxes
anothet ineerialtrn chas ge on aty kind higher than those
imposed, directly ir indcrey, l, on like products of national
origin. E/PC/T/C.6/97/Rev.1 Page 7
COMMENTARY
National Treatment on International Taxation and Regulation
.-.
15:2 Theegaelo for India sa- and tarwaynwNo aished to maintain the
j cobeesiagains E-nt tparagrhis aphsra ied-by them at the First
SesaiThe oeledJle foO Indzrh'aa admentente(d that there
ld -u be nj obiectagainst disci ecnarirymito rnntexal taxes
vi d onlyp v pure oppos e osing revenevenue; and the delegate
Nfowr oray eserveddrsssceun ry'ot*Ig t torieh vary charges
levie an impoon irteoduc6I.de whin vhr 'aiiations were required
. .fmr the Maintenan eniof a prifom :irce of the product in the
domatic .brket)"
* * , - E/PC/T/C.6/97/Rev.1 Page 8
3. The products of any Member country imported into any
other Member country shalI be accorded treatment no less
fanvourable than that accorded to like products of national
orign in respect of all law, regulations or requirements
affecting their internal sale, offering for sale,
transportation,. distribution or use of any kind whatsoever.
The provisions, of this paragraph shall be understood to
preclude the application of internal requirements restricting
the amount or proportion of an imported product permitted
to be mixed, processed or used, Provided that any such
retirement in force on the day of the signature of this
Charter may be continued until the expiration of one year
from the day on which this charter enters into force, which
period may be extended in respect of any product if the
Organization concurs that the requirement concerned is less
restricture of international trade than other measures
permissible under this Charter. Requirements permitted to
be maintained under the foregoing proviso shall be subject
to negotiation in the manner provided for in respect of
tariffs uuder Article 24. COMMENTARY
15:3. 1. The delegates for Brazil the Netherlands and the Union
of South Africa maintained the reservation their delegations
had made at the First Session as to e requi
to the requirements on mixing,
somg. etc/ con~.dered ikderi4iparagna ph h. The delegate
ffr NeanZealeqe on inc a this reservation.
;t*i
iThe delegate foslovakiacsugges waahugesd tbat the following
seviso be add d e& nt the e4d.of the penultimate sentence
paragraph: tl provider oved that reasonable new
rec.-aly bnts ma b established in respect of any product if
the Organization concurs that the requirement is less restrictive
of iaternational trade than other measrres pezmissible under
this Charter. "
3. mTe sane delegate reseived hIs position on the last
sentence of this paragraph. E/PC/T/C.6/97/Rev.1 Page 10
CHARTER
4.The provisions of paragraphs 1 and 3 of this Article
shall not be construed to prevent the application of internal
laws, regulations or requiremets, other than taxes, relating
to the distribution or exhibition of cinematograph flms.
Any laws, regulations or requirements so applied shall,
however, be subject to negotiation for their liberalization
or elimination in the maner provided for in respect of
tariffs and preferences under Article 24. E/PC/T/C.6/97/Rev.1 Page 11
15:4 1. The second sentence of this paragraph provides that laws,
regulations and requirements relating to the distribution
and exhibition of cinematograph films will be subject to
negotiation in the same manner as those considered under
paragraph 3. It was the understanding of the Committee that
the provisions contained in this sentence would only imply that
there should be willingness to negotiate for liberalization or
elimination of the laws, regulations and requirements in question
but that, as in the case of tariffs, Members would be free to
adopt legislative or other measures affecting the distributions
or exhibition of cinematograph films as long as these measures
were not bound by the trade agreements.
2. The delegate for Czechoslovakia reserved his position on
the second sentence of this paragraph.
3. The delegate for New Zealand made a statement to the effect
that the New Zealand film hire tax which is in reality a
delayed customs duty levied at the point where the real value
has become apparent, should neither be regarded as being covered
by the terms "internal laws" or "regulations" or "requirements"
whenever such words appear in Article 15, nor as an internal
tax. The film hire tax, he pointed out, which is not
associated with any form of film quota, but which contains a
preference element, could thus be the subject of negotiations
of the kind provided for in Article 24 with respect to tariffs.
New Zealand, he declared, did not produce cinematograph films
other then educational and newsreels, and such films were exempt
from tax, Bitish films of all types were subject to tax at a
rate lower than that applied to foreign films.
4. The delegate for the United States reserved his
position on this paragraph. E/PC/T/C. 6./97/Rev .1
5. The provisions of this Article shall not apply to the
procurement by governmental agencies of supplies for
governmental use and not for resale [nor for use in the
production of goods for sale].
ArticIe 16
Freedom of Transit
i~ ."4*. * :-. ' .4
.. i .1 -;-.-- ' At~l S
. , . . I -. E/PC/T/C. 6/97/Rev.1
Page 13-
COMENMTARY
15:5 The words in square brackets at the end of this
pararapph were added for later consideration in connection
iihw asbimila .addition to paragraph 2 of Article 31.
Comment referrng Bto thewhohl ofr Artcel l15
.The delegate for BrazimaDiintaineh bis suggestion at the
rst Sessias -tat a new p raarapbhsihul bee dded, providing
for date of entry into force of this ArticIe.
2. 'The delegat .for Cub 'rsebrvd7 his ostition on Article 15.
Article 16
Freedom of Transit
16 General Cmrment
1. The original text of this Article referred in general to
persons, goods and means of transport. The text recommended
by the Drafting Committee refers to goods and means of
transport only, since the transit of persons was considered
not to be within the scope of the Charter and since traffic
of persons iss uj3ect toimmiigaetion laws an 'may properly be
the concernop a-n international agenc 'othre than the Trade
rgani~aztio.n * - ' - '' ',
hjelegate oh India.;bected to'tlie dletion of the
word. persns.,
3. TeAselagtQ for thhe w dlclared tha iiuLd prefer that
ns f the 16 prov-n orArt cleg]be confied 'to &oods only (that
ls, to exclupdet) means of transor. E/PC/T/C.6/97/Rev.1
Page 14
CHARTER.
iu
1. Goods ncicluding bgaggae), dan laiso vessels and other
means of transport, shall be deemed to be in transit across
the territory of Member whenithe passageVp across such
territory, with or without trans-shmeeant, warehousing,
breaking bulk, or changi In theo mde of transport, is lony
a portion of a complete Jouensy, beginning, and terminating
.. . .,..:..;:........................... s:.
beyond. the frontier of the Member across whose territory the
traffic asse.. raffic of this nature is termed in this
Article "traffic in transit". The provisions of this
Ariticle shall not apply to the operation of aircraftIn
transit.
2. There shall be freedom. of transit through the Member
countries via the routes most convenient for International
transit for traffic In transit to or from other Nember
countries. No d3stinction shall be made which is based on
the nationality of persons, the flag.of vessels, the place
of origin, departure, entry, exit. or, deetixxaton, or on any
circumstances relating to the ownership qf goods, or vessels
or other means of transport. E/PC/T/C.6/9 r/Rev.1Page 15
COMMEMTARY
Specofic Comments
16:1 1. The delegates for Australia and Belegium were of the
opinion that, for the sake of consistency, no exemption
should be made for the operation of aircraft in transit.
2. It was noted there is no apparent inconsistency
between this Article and the Barcelona Convention of
20 April 1921 (Convention and Statute on Freedom of Transit).
Should the question of a new transit convention) be raised, the
Committee felt that the International Trade Organization
might wish to co-operate.-
66:2 1.T he last sentenceais based on ihe textt of Article 2
f the Barcelona -Statute..
. Thd delegate for India suggesetda thattthe first sentence
houlddread:as follows:i 7%-
all be freedom of transit through i Member countries
foor th- ProductsMember coureh;eZ'contries via such
many beito tra 6 ~e toroic in pi-ducts of like
quality of national origtn."l`oig EtPC/T/C.6/97/Rev.1
Page16
CHARTER
3. Any Member may require that traffic, in transit through
its territory be entered at the proper customhouse, but,
except in cases of failure to comply with applicable
customs laws and regulations, such traffic coming from or
going to other Member countries shall not be subject to any
unnecessary delays or restrictions and shall be, exempt from
customs duties and from all transit duties or other charges
imposed in respect or transit, except charges for
transportation or those commensurate with administrative
expenses entailed by transit or with the cost of services
rendered.
4. All charges and regulations imposed by Members on traffic
to or from other Member countries shall be reasonable, having
regard to the conditions of the traffic.
5. With respect to all charges, rules, and formalities
in connection with transit, each Member shall accord to
traffic in transit to or from any other Member country
treatment no less favourable than the treatment accorded
to traffic in transit to or from any third country.
6. Each Member shall accord to products which have been in
transit through any other Member country treatment no less
favourable than that which would have been accorded to such
products had they been transported from their place of origin
to their destination without going through such other Member
country. Any Member shall, however, be free to maintain
its requirements of direct consignment (expedition directe)
existing on the day of the signature of this Charter, in
respect of any goods in regard to which such direct
consignment is a requisite condition of eligibility for entry
of the goods at preferential rates of duty, or has relation to
the country's prescribed method of valuation for duty putposes. Page 17 E/PC/T/C.6/97/Rev. 1
COMMENTARY
t . v i -.... a . - :. ., *
.. . - .
. .-
. I . .. .
16:3
16:4
16:5
is6
- . I
- t t F
- I
. . . .
I- -! -,-
t -'., E/PC/T/C.6/97/Rev. 1
Page 18
CHARTER
Article 17-
Anti-Duping and Countervailng Duhties
1. No anti-dumping duty or charge shall be imposed on any
product of any Member country imported into any other Member
country in excess of an amount equal to the margin of dumping
under which such product is being imported. For the purposes
of this Article, themargvin of dumping shall be understood to
mean the amount by which the price of the product exported
from one country to another is less than (a) the comparable
price for the like product to buyers in the domestic market
of the exporting country, or, in the absence of such domestic
price, either (b) the highest comparable price at which the
like product is sold for export to any third country in the
ordinary course of commerce, or (c) the cost of production of
the product in the country of origin plus a reasonable
addition for selling cost and profit; with due allwaence in
each case for differences in conditions and terms of sale,
for differences in taxation, and for other differences
affecting price comparability. E/PC/T/C/C.6/97/Rev. 1
Page 19
COMMENTARY
Article 17
Anti-Dumping and Countervailing Duties
17:1 1. It was understool that paragraph 1 refers only to
price dumping and that the term "anti-dumping duty", as used
therein, refers only to an additional duty imposed for the
purpose of offsetting such dumping.
.2. The delegate for the United Kingdom suggested that the
word "landed'' be inserted before "price of the product
exported" in the definition of the margin of dumping (second
sentence).
3. The delegate for Australia, Czechoslovakia, the Netherlands
and the Union of South Africa suggested that the words "by more
then five per cent" be inserted in the same definition after
"another is less".
4i. The delegates for certain countries (Belgium, uxembourg,
Czechoslovakia, France, New Zealand and the Netherlands)
favoured the authorization of measures besides anti-dumping
duties to offset price-dumping.
5. The delegate for Brazil reserved his position on this
pregraph, being of the opinion that heavier than
counter-balancing duties or quantitive restrictions should be
allowed in cases of aggravated or sporadic dumping. E/PC/T/C .6/97/Rev. 1 Page 20 CHARTER
2. No countervailing duty shall be imposed on any product
of any Member country imported into another member country
in excess of an amount equal to the estimated bounty or
subsidy determined to have been granted, directly or
indirectly, on the production of export of such product in
the country of origin or exportation . The term 'countervailing
duty' shall be understood to mean an additional duty imposed
for the purpose of off-setting any bounty or subsidy bostowed,
directly or indirectly, upon the manufacture, production or
exportation of any merchandise.
3. No product of any Member country imported into any other
Member country shall be subject to anti-dumping or
countervailing duty or reason of the exemption of such
product from duties or taxes imposed in the country of origin
or exportation upon the like product when consumed domestically,
or by reason of the refund of such duties or taxes.
4. No product of any Member country imported into any other
Member country shall be subject to both anti-dumping and
countervailing duties to compensate for the same situation of
dumping or export subsidization.
5. No Member shall impose any anti-dumping or countervailing
duty or charge on the importation of any product of other
Member countries unless it determines that the effect of the
dumping or subsidization, as the case may be, is such as
materially to injure or threaten to injure an established
domestic industry, or is ouch as to prevent the establishment
of a domestic industry. E/PC/T/C.6/97/Rev. 1Page 21
COMMENTARY
17:2 1. The delegates for China suggested the following addition
to this paragraph:
"In the event of preferential treatment being accorded
by a country to certain countries to the exclusion of
other Member countries, no countervailing duty shall be
imposed upon the products imported from such other Member
countries against subsidies which are granted by the latter
to such products as compensation for covering the
preferential margin."
2. The delegate for Brazil suggested that quantitative
restrictions or other punitive measures should be permissible
in order to cope with the import of subsidized products.
17:3 _-
17:4
17:5 The delegate for Brazil suggested the deletion of this
paragraph. E/PC /T/C .6/97/Rev .1
Page 22
CHARTER
6. Nothing in this Article shall preclude Members parties
to a regulatory commodity agreement conforming to the
principles of Chapter VII from incorporating in such
agreement provisions prohibiting, as between themselves,
the use of anti-dumping duties in cases in which dumping,
within the meaning of paragraph 1 of this Article, may be
permitted under the terms of such an agreement. E/PC/T/C .6/97/Rev .1
Page 23
COMMENTARY
17:6
Suggested new paragraph under Article 17
The delegate for Australia., supported by those for
New Zealand and the Union of South Africa, suggested
inclusion in Article 17 of the following paragraph:
7. "Any Member maintaining restrictions on forms of
dumping other than 'price dumping', e.g., freight dumping
or dumping by means of depreciation of currency, shall
only impose such dumping duties where it has determined
after enquiry that the method and extent of dumping against
which action is taken is such as to injure or threaten to
injure an established domestic industry."
While not adopting the proposed text, the Committee decided
to forward it for consideration at the Second Session. E/PC/T/C.6/97 /Rev. 1
Page 24
CHARTER
Article 18
Tariff Valuation
1. The Members undertake to work toward the standardization,
insofar as practicable, of definitions of value and of
procedures for determining the value of products subject to
customs duties or other changes or restrictions based upon or
regulated in any manner by value. With a view to furthering
such co-operation, the Organization is authorized to investigate
and recommend to Members such bases and methods for
determining the value of products as would appear best suited
to the needs of commerce and most capable of general adoption.
2. The Members recognize the validity of the general principals
of tariff valuation, set forth in the following sub-paragraphs,
and they undertake to give effect to such principles, in
respect of all products subject to duties, charges or
restrictions based upon or regulated in any manner by value,
at the earliest practicable date. Moreover, they undertake,
upon a request by another Member, to review the operation of any
of their laws or regulations relating to value for duty purposes
in the light of these principles. The. Organization is
authorized to request from Members reports on steps taken by
them in pursuance of the provisions of this paragraph. E/PC/T/C.6/97/Rev.1
Page 25
COMMENTARY
Article 18
Tariff Valuation
18: 1 ... .....
13:2 1 l. The delegates for uertain cBmntries (3elmium gLuxenbours,
Czechoslovakia, and thn Netwerlamds) Wishid to prov4de for a
detinite'earry dat foa he -entry- int force of~ the provisions
of _.- aph 2,, :
2. The delegate fsrgghina cu~apested tht the entry into
force should be preceded by a transitional period.
3. The deletga Nete for drtherlanis uggested. that certain
procedes shomld be acore exctrl:id)iatedomThe Cerrmttee
ceaniderd. however, thse tue ssiggeerions were too detailed
for inclusion in arais ph.aOnrab. -e of these suggestions
(ccnz rni g:the.trial of value litigation) was considered in
c~nection with Article 'r, pacagr2ph. Z. E/PC /T/C .6/97/Rev.1
Page 26
Alternative A
The value for duty purposes of imported products should
be based on the actual value of the kind of imported
merchandise on which duty is assessed, or the nearest
ascertainable equivalent of such value, and should not be
based on the value of products of national origin or on
arbitrary or fictitous valuations.
Alternative B
The value for duty of imported products should be based
on their actual value as represented by the price at which,
at a determined time and place, and in the ordinary course
of trade between independent buyer and seller, like goods are
sold or offered for sale in quantities and under conditions
comparable to those under which the imported goods are sold
or offered for sale, or the nearest ascertainable equivalent
of such value. The value should not be based on the value of
products of national origin or on arbitrary or fictitious
valuations. -
lternative C
Where ap actual price of imported products is not accepted
as the basis forg determ va&. their:yplue for duty purposes,
their assessed dalue shoul; noonbe based cm the value of
products of nationaloorigin or cn arbitrary or spurious
valuations, but should satisfy clearly defined and stable
conditionBirmich ccnforn with comme.cial usage, EC /PC/T/C .6/97/Rev. 1
Pahr 27
COMMENTARY
The Committee did not research agreement on paragraph 2(a)
of this Article and therefore submits three alternative texts
for consideration at the Second Session. Alternative A
represents the text in the United States Draft Charter;
Alternatives B and C were drafted in order to clarify to a
certain extent the expression "actual value".
. *. , ; E/PC/T/C.6/97/Rev.1
Page 28
CHARTER
(b) The value for duty purposes of any imported product should
not include the amount of any [customs duty or] internal tax,
applicable within the country of origin or export, from which
the imported product has been relieved by means of refund
or made exempt.
(c) In converting the value of any imported product from one
currency to another for the purpose of assessing duty, the rate
of exchange to be used should be fixed in accordance with
prescribed standards to reflect effectively the current value
of each currency in commercial transactions.
(d) The bases and methods for determining the value of products
subject to duties, charges or restrictions based upon or regulated
by value should be stable and should be given sufficient
publicity to enable traders to estimate, with a reasonable
degree of certainty, the amount of duty likely to be imposed. E/PC/T/C.T/97/Rev.1 Page 29 .
CMMNTAiRY
.., s
8:2 (c) C. The delegate for the United States reserved the right to
recommend insertion of the words "or rates" after "rate", or
otherwise to provide for the conversion of currencies in
the cases of dual ormualtiple rtae.;
2. The delegate for China reserved his position on this
paragraph.
* . .. * . . . *.*
18:2 (b)
'..
'.
.. .- I
18:2 (c)
. - .. -
.
, -Z- . ,
_ - ,
-i'?-d..
. .; I A -.
- - --: . -'. . , , t - -
: E/PC/T/C.6/97/Rev.1
Page 30
CHARTER
Article 19
Customs Formalities
1. The Members recognize the principle that subsidiary fees
and charges imposed on or in connection with importation or
exportation should be limited in amount to the approximate cost
of services rendered and should not represent an indirect
protection to domestic products or a taxation of imports or
exports for fiscal purposes. They also recognize the need for
reducing the number and diversity of such subsidiary fees
and charges, for minimizing the incidence and complexity of
import and export formalities, and for decreasing and
simplifying import and expert documentation requirements.
2. Members undertake to give effect to the principles and
objectives of paragraph 1 of this Article at the earliest
practicable date. Moreover, they undertake,upon request by
another Member,to review the operation of any of their
customs laws and regulations in the light of these principles.
The Organization is authorized to request from Members reports
on steps taken by them in pursuance of the provisions of this
paragraph.
3. Except in cases of serious negligence, greater than nominal
penalties over and above the duty properly payable should not
be imposed by any Member in connection with the importation of
any product of any other Member country because of errors in
documentation which are obviously clerical in origin or with
regard to which good faith can be established. E/PC/T/C. 6/97/Rev. 1
page 31
--~ ~~~ ~~~~~~ :. - . 4 ,
-~ ~~~~~~~~~~~~~ *Wstm * onua1 ti
19 ' ' -':1. ... > ,,- . , ...a
CO4mA"Y
Article 19 -
-, 1 . -.
- .~~~ ~ - ,,_r
* . I * r. . - - *i , .+
_ , , .
19:2
.193: . * -
* . , * ; , , . -; . . . , .. , , . .
;,. .. . ..:
a , , , , -.- . .-- . . . * -ia;!.,A E/PC/T/C .6/97/Rev. 1
Page 32
CHARTER
4. The provisions of this Article shall extend to fees,
charges, formalities and requirements relating to all customs
matters, including:
(a) consular transactions, such a consular invoices
and certificates;
(b) Quantitative restrictions;
(c) licensing;
(d.) exchange regulations;
(e) statistical services;
(f) documents, documentation and certification;
(g) analysis and inspection; and
(h) guarantine, sanitation and fumigation.
Article 20
Marks of Origin
1. The Members agree that in adopting and implementing laws
and regulations relating to marks of origin, the difficulties
and inconveniences which such measures may cause to the
commerce and industry of exporting countries should be reduced
to a minimum.
2. Each Member shall accord to the products of each other
Member country treatment with regard to marking requirements
no less favourable than the treatment accorded to like products
of any third country.
3. Whenever administratively practicalble, Members should
permit required marks of origin to be imposed at the time of
importation. E/PC/T/C.6/97/Rev.1 Page 33 . -
MENTaNTARY
cle 0
Marks of Oriegi
20:1. ___
...... l ...Th p s th
. 19:4 . , r.ctcae" and "soud ar .usie for . .ss_,,e a,
- - * * '.- *- ;- ! . - ; *
:3 At the mirstr ession delegedes had objected
thetet o x o t orrcesponding theparagraph in het Unitedates-
Member shall. ...."th pe areet te ixtn 'hwc ah
pacicale~. nd"shul-"areil 20si;te o pssbe n
membrs of th O bCrtte TedleaesfrCaaa
Czechoslo.a;i, .v~ an th UnTe Stte stte that the
The delegate fox rhe United Kingdom reserved his position
on this paragraph wh.ci h his view should be deleted. E/PC/T/C.6/97/Rev.1 Page 34
CHARTER
4. The laws and regulations of Members relating to the
marking of imported products shall be such as to permit
compliance without seriously damaging the products, or
materially reducing their value or unreasonably increasing
their cost.
5. Members agree to work in co-operation through the
Organization toward the early elimination of unnecessary
requirements as to marks of origin. The Organization is
authorized to investigate and recommend to Members measures
directed to this end, including the adoption of schedules of
general categories of products in respect of which marking
requirements operate to restrict trade in a degree
disproportionate to any proper purpose to be served, and
which shall not in any case be required to be marked to
indicate their origin.
6. As a general rule, no special duty or penalty should
be imposed by any Member for failure to comply with marking
requirements prior to importation unless corrective marking
has been unreasonably delayed or deceptive marks have been
affixed or the required marking has been intentionally omitted E/PC/T/C. 6/97/Rev. 1
Page 35
COMMENTARY
20:6 1. In order to meet objections against the original text
raise by certain delegates, the obligation that would
be incurred, by Members was rendered less exacting by edition of
the words "As a general rule" at the beginning of the Article,
and by substituting the words "deceptive marks have been affixed."
for "false marks have been intentionally affixed"
2. The question raised, by certain delegates concerning the
right of each country to prohibit the import, export and transit
of foreign goes falsely marked as being produced in the country
in question was considered to be covered primarily by the words
"deceptive practices", in Article 37, sub-paragraph (g).
3. The delegate for the United Kingdom reserved his position
on this paragraph.
20:4
42
20:5
20:6 E/PC/T/C.6/97/Rev.1
Page 36
CHARTER
7. The interest of Members in protecting the regional and
geographical marks of origin of their distinctive products
is recognized and shall be given consideration by the
Organization which is authorized to recommend a conference
of interested Members on the subject. E/PC/T/C .6/97/Rev.1
Page 37
COMMENTARY
20:7 1. The delegates for certain countries (Belgium, Luxemburg,
Czechoslovakia, France and the Netherlands), while accepting
paragraph 7 as given above, did not consider it going far
enough and were in favour of replacing it by the following
text:
"Members agree to grant to trade name's and geographical or
regional marks of origin and quality that are recognized and
protected by other Members, the same protection as is
afforded by their domestic legislation to their own trade
names and geographical or regional marks of origin and
quality, provided that these marks and trade names relate
to like products. They shall, for this purpose, transmit
to the Organization a list of such marks and trade names as
are protected by their domestic legislation and for which
they wish to secure protection in importing countries.
They undertake further to take part in any conference
called by the Organization to secure effective international
protection for marks of origin."
.2. The delegate for Chile reserved his position on paragraph 7
since he considered that further time was required for studying
the matter which ought to be taken up at a later date.
3. The delegate for Cuba reserved his right to present a new
text. of this paragraph at the Second Session. Page 38 . ; ;
CAT
Article 21
Publicaaion snd Administration of Trade Regulstion=
ce Nano .otice of Restrictive Regulations
1. Laws, regulations, judicial decisions and administrative
rulings of general application made effective by any Member,
pertaining to the classification or the valuation of products
for customs purposes, or to rates of duty,. taxes or other
charges, or to requirements, restrictions or prohibitions on
imports or, exports r on-the transfer of payments therefor, or
affecting thale sdiseri,ut tabtion,s traapirtatton or
insurance, or affecting their warehousing, inspection,
exhibition, processing, mixing or other use, shall be published
promptly in suchna marner as to enabls traders and nmeermtert
to become acquainted with thgreeA,3epments in force between the
government or a govermental agency of any Member country and
the governmentoorrngcveanmenAl agency of any other country
affecting international trade policy shall also be published.
Copies of such laegulre nations, decisions, rulings and
agreements shall be communicaromp pQ7ptly to the Organization.
This paragraph shall not require any Member. to disclose
confidential information which would. impede law enforcement, or
otherwise be contrary to the public inteorewtuldvorul
prejudice the legitimate bus ness.interests of particular
prnte rises, publ ic orprivate.
2. Each Member shall administer in a uniform, impartial and
reasonable manner all its laws, regulations, decisions and
rulings of tne kiad described in paragraph 1 of this Article.
Moreover, Members undertake to maintain, or to institute as soon
as practicajle, Judicial, arbitral or administrative naib inlsr
or procedures for the purpose inter alia, of the prompt review
ad correction of administrative action relating to customs
matters. Such tribunals or procedures shall be independent of
of the agenciee ontruetod with administrative forcemenr~t. Page 39
COMMENTARY
Article 21
Publications and Administration of Trade Regulations
Advance Notice of Restrictive Regulations
21:1 The Committee felt that it might be useful if the
Preparatory Committee were to suggest the absorption by the
Organization of certain existing international agencies such
as the Brussels Tariff Bureau, and arrangements for collecting
analyzing and. publishing laws, regulations and decisions
concerning foreign trade and for the periodical collection,
in detailed studies, of information concerning the
regulations of Member States on any given point. Attention
was drawn in this connection to the provision of paragraph 4
of Article 81 of the Draft Charter.
21:2 1. A reservation was made on this paragraph by the delegates
for New Zealand and the Union of South Africa who were of the
opinion that appeals against administrative decisions might
be made to the competent Minister and that it should not be
necessary to provide for independent tribunals or procedures Page 40
CHARTER M 'a . t 'Dwa~
3. No administrative ruling of any Member effecting an
advance in a rate of import duty or other charge under an
established and uniform practice, or imposing a new or more
burdensome requirement, restriction or prohibition on imports,
or on the transfer of payments therefor, shall, as a general
rule and within the limits of administrative practicability,
be applied to products of any other Member country already
enroute at the time of publication thereof in accordance
with paragraph 1 of this Article, Provided, that if any
Member customarily exempts from such new or increased
obligations products entered for consumption or withdrawn from
warehouse for consumption during a period of thirty days after
the date of such publication, such practice shall considered
full compliance with this paragraph. The provisions of this
paragraph shall not apply to anti-dumping or countervailing
duties.
Article 22
Information, Statistics and Trade Terminology
1. The Members shall communicate to the Organization as
promptly and in as much detail as is reasonably practicable:
(a) statistics of their external trade in goods
(including imports, exports, re-exports,
transit and trans-shipment and, where applicable, goods
in warehouse or in bond);
(b) statistics of governmental revenue from import and
export duties and other taxes on goods moving in
international trade and, in so far as readily
ascertainable, of subsidy payments affecting such trade.
So far as possible, the statistics referred to in
(a) and (b) shall be related to tariff classifications 21:3 The delegates for Brazil, Czechoslovakia, France, Norway,
the Union of South Africa and the United Kingdom reserved
their position provisionally on this paragraph.
Article 22
. Information, Statistics and Trade Terminology
The delegate for Canada, supported by the delegate for
the Netherlands, with a view to the possible centralization
of the statistical services of the United Nations, suggested
that the following words be added after "Organization" in
the first sentence:", or to such agency as may be designatedi
for the purpose by the Organization".
21:3
22:1 E/PC /T/C .6/97/Rev.1
Page 42
CHARTER
and be in such form as to reveal the operation of any
restrictions on importation or exportation which are based
on or regulated in any manner by quantity or value, or by
amounts of exchange made available.
2. The Numbers shall publish regularly and as promptly as
possible the statistics referred to in paragraph 1 of this
Article.
3. The Members shall give careful consideration to any
recommendations which the Orgnization may make to them with
a view to improvement of the statistical information furnished
under paragraph 1 of this Article.
4. The Members shall make available to the Organization, at its
request and in so far as reasonably practicable, such other
statistical information as the Organization may deem necessary
to enable it to fulfill its functions, provided that such
information is not being furnished to other inter-governmental
organizations from which the Organization can obtain the
required information.;
5. The Organization shall act as a centre for the collection,
exchange and publicaton of statistical information of the
kind referred to in paragraph1 l of this Article. The
Organization may, in collaboration with tez Economic and
Social Council of the UnitedNratocns and its ommiissocns,
and with any other interested international organization,
engage in studies with a vie r to bringing aouat improvements
in the methods of collecting, analyzing and publishing
economic statistics and may promote the international
comparability of such statistics, including the possible
international adoption of standard tariff and commodity
classifications. E/PC/T/C .6/97/Rev.1
Page 43
COMMENTARY
22:2 __
22:3
24:- - .-
22:5 E/PC/T/C.6/97/Rev.1
Page 44
6. The Organization may also, in co-operation with the other
organizations referred to in Paragraph 5 of this Article,
study the question of adopting standards, nomenclatures, terms
and forms to be used in international trade and in the official
documents and statistics of Members relevant thereto, and. may
promote the general acceptance by Members of such standards,
nomenclatures, terms and forms as may be recommended.
Article 23
Boycotts
No Member shall enacourage, support or participate in
boycotts or other campaigns which are designed to discourage,
directly or indirectly, the consumption within its territory of
products of any specific Member country or countries on grounds
of origin or the sale of products for consumption within other
Member countries on grounds of destination. E/PC/T/C. 6/97/Rev.1
Page 25
COMMENTARY
22:6 This paragraph corresponds generally to paragraph 7 in
Article 16 of the United States Draft Charter. It will be
observed, however, that unlike the last-mentioned paragraph,
the text now recommended does not refer to a procedure
according to which adopted standards, etc, would become
automatically effective upon notice given by the Organization.
In view of this fact, paragraph 8 of Article 66, as adopted
at the First Session, containing rules for the adoption by the
Conference of standards, etc. was deleted. It was noted
that the procedure laid down in paragraph 6 of Article 66
night be employed to assist in promoting international
agreements for this purpose.
Article 23
23. Boycotts
1. The words "any specific Member country or countries" were
substituted for the expression "other Member countries" where
this first appears in the original text of this Article since it
was considered that the ban on boycotts should not apply to
campaigns in support of the use or consumption of products of
national origin or manufacture and not directed against the
products of any specific country.
2 The delegate for India reserved his position on this
Article (of. General Comments Under Article 37).
3. The delegate for Lebanon reiterated his view that boycotts
may be justified on political or moral grounds. E/PC/T/C.6/97/Rev.1
Page 46
CHARTER
SECTION B. TARIFF AND TARIFF PREFERENCES
Reduction of Tariffs and Elimination of Preferences
1. Each Member, other than a Memner subject to the provisions
of Article 33, shall, upon the request of any other Member or
Members, enter into reciprocal and mutually advantageous
negotiations with such other Member or Members directed to
the substantial reduction of tariffs and other charges on
imports and exports and to the elimination of import tariff
preferences. These negotiations shall proceed in accordance
with the following rules:
(a) Prior international commitments shall not be permitted,
to stand in the way of negotiations with respect to
tariff preferences, it being understood that action
resulting from such negotiations shall not require the
modification or termination of existing international
obligations except by agreement between the contracting
parties, or failing that, by termination of such
obligation in accordance with their terms.
(b) All negotiated reductions in most-favoured-nation
import tariffs shall operate automatically to reduce or
eliminate margins of preference, and no margin of preference
shall be increased.
(c) The binding or consolidation of low tariffs or of
tariff-free treatment shall in principle be recognized
as a concession equivalent in value to the substantial
reduction of high tariffs or the elimination of tariff
preferences. E/PC/T/C.6/97/Rev.1
Page 47
COMMENTARY
Article 24
Reduction of Tariffs and Elimination of Preferences
24:1b 1. The delegates for Australia, India, New Zealand and the Union of
South Africa maintained their views expressed at the First Session
concerning Paragraph 1(b) - namely, that in accordance with the
agreed principle of negotiation on or mutually advantageous basis
the rule contained in this paragraph should not operate
automatically, but that members should be free to negotiate for
a reduction in the preferential rate as well as in the
most-favoured-nation rate, provided that the resulting margin
between the two negotiated rates is smaller than that existing
on the base date. E/PC /T/C .6 /97 /Rev. 1
Page 48.
2. Each Member participating in negotiations pursuant
to Paragraph 1 shall keep the Organization informed of the
progress thereof and shall transmit to the Organization a copy
of the agreement or agreements incorporating the results of
such negotiations. E/PC/T/C. 6/97/Rev. 1
Page 49
24:2 E/PC/T/C.6/97/Rev.1
Page 50
3. If any Member considers that any other Member has failed,.
within a reasonable period of time, to fulfil its obligations
under paragraph 1 of this Article, such Member may refer the
matter to the Organization, which shall make an investigation
and make appropriate recommendations to the Members concerned.
The Organization, if it finds that a Member has, without
sufficient justification, having regard to the provisions of the
Charter as a whole, failed to negotiate with such complaining
Member in accordance with the requirements of paragraph of
this Article, may determine that the complaining Member, or
in exceptional cases the Members of the Organization generally,
shall, notwithstanding the provisions of Article 14, be entitled
to withhold from the trade of the other Member any of the tariff
benefits which the complaining Member, or the Members of the
Organization generally as the case may be, may have negotiated
pursuant to paragraph 1 of this Article. If such benefits are
in fact withheld so as to result in the application to the
trade of the other Member of tariffs higher than would otherwise
have been applicable, such other Member shall then be free,
within sixty days after such action is taken, to withdraw, from
the Organization upon the expiration of sixty days from the
date on which written notice of such withdrawal is received by
the Organization. The provisions of this paragraph shall
operate in accordance with the provisions of Article 67. E/PC/T/C.6/97/Rev.l
Page 51
24.3 1. The delegates for Brazil and Chile reserved their
positions regarding paragraph 3 and suggested insertion of
the words "and particularly with regard to Members '
legitimate need for' protection" after the phrase "having
regard to the provisions of the Charter as a whole".
2. The delegate for Chile requested that the Committee
should consider defining the expression "without sufficient
justification" in the same sentence. It was agreed that
it would be difficult to make a general definition of this
term the interpretation of which would have to be decided
by the Organization on the merits of each case.
Suggested new paragraph
The delegate for the United Kingdom proposed that the
following now paragraph be added to Article 24:
"If any Member Country which .has negotiated a
consolidation of any of its tariff rates in pursuance
of this Article should, at any time while such
consolidation remains in effect, alter Its method of
tariff valuation or its ;tariff classification in such a
way as to increase the duty payable upon any product
which, at the time of, negotiation of the tariff
consolidation, was understood to be covered thereby, -then
the other Member or Members at whose request such
consolidation was negotiated, shall be entitled for call
for further Negotiations forthwith with a view to reaching
a satisfactory. adjustment of the matter; and the Member
which has altered its method of valuation or its tariff
classification shall enter into such further
negotiations as requested." E/PC/T/C.6/97/Rev.1
Page 52
........................ t i '; ;,* , X >tJ t- - .;,, ' W . ' -' ................................................. ' . ',,,, ,,,,.o
,.!:1. t ; - * , , .-. i
k ,_ t. F.+ , %' ; ;+s . .',U,;- ' -' ,,. .- . w
- - i + - - - S st w * s + tsa _ _ 8ss *-
,, ','b'-: ' ,' '. .i.s .. * .;
W . ;s * ., -.i . . .- - : . .
"- ~Sectfon C;.w 'da~iatePsrew and change Contrl
- > -- ' A~~~kl~i;:fl 25
\-J^ * 1 _ iirt ' n**SC3il Elfi~iiaticn- O'i` taie -Ibttrictions
- - 1. t ~as otha rwisc!~O roida in; this Cha
prohibitions ori-riestricilon's -Ctiier Alin duties, tax
-?.i. -t -;+--th * cdt6 CVbAE} zidto~a effective through quo
- ~ 'licireslor bthsr z"8sl-0, 8 9 be intituted
e, - - ; a da ued a'6*;mbe- 0on the importation '
,-^>_ *t - " 'of:n other hMebe r coutr or'on the ex~p
- r4xoi ort. sf any products stie& for anyw other Miemb
:'~~~~::~~ ' .'pr~visiorar o Article shall not
' - Prohibition's'Or retitoson Imports or exports
'$ > --"- -;-4^ ** R {stit~i r *a:IEA a -dtri ke
r - ~~~~~ ; ian-it~oil-Perid kiwh care es
*S ^ ^9@* * 8* < r () ~> e88>-ditribution
Conunmit d d~ri a of products In short
S~p @w*l~Srsch products are >wmad by
-\- iX *< r ** *_ ts *'-''-'-*'
-tii} jjj@ jj g:e;f var-time price control b
-{..
t-: E/PC/T/C.6/97/Rev.1
Page 53
The questions raised have been dealt with in
Articles, VIII (footnote and paragraph 2) of the Draft
General Agreement on Tariffs and Trade prepared by the
Drafting Committee. Whether such a paragraph should. be
included in Article 24 was left for further consideration
at the Second Session. Several delegates expressed their
approval in principle of the inclusion of such a paragraph.
Section C
Article 25
General Flimination of Quantitative Restrictions
25:1
25:2(a) E/PC/T/C.6/97/Rev. 1
Page 54
Member country undergoing shortages
subseqent to the war;
(iii) the orderly liquidation of temporary fi:0 tp
V6 rM'1iq t of temporary
ed by>u~e~' 6a '6ims '"8d. or controlled b
t* 'st govnVt oJ anex Member or of
untry E *NX *-; 4 ' 'i ' ' '. 'ar7 Member country.
- - owning to the exigenbies' of the war, which It
VouiLd be ureconomic to maintain in norma
conditions provided. that prohibitions o
z'-sttIctIc ,,fo~ 1Btis purpose may not
instituted. by any Member after the day on
which this Charter ccmes into force, except
after consultation with other interested
Members with a viev to appropriate
international action.
Import and export prohibitions and. restrictions instituted
or maintained urder sub-paragraph (a) shall be removed as
econ at the conditions giving rise to them have ceased, and
in any event not later than I July 1949 provided. that this
period may..with the concurrence of the Organization, be
extended in respect of any product for further periods not
to exceed six mouths each.
(b) Export prohibitions or restrictions temporarily
applied to relieve critical shortages of foodstuffs
or other essential products in the exporting Member
country.
(c) Import and export prohibitions or restrictions
nwmssary-.tc the application of standards for the
classification and grading of commodities in
international trade. If, in tpinion of the E/PC/T/C.6/97/Rev. 1
Page 55 .
~ .. ,.-,S
. . ... . ;
. E : l.. , .. .. .
.
.~~~~~~~~~~~~~~~~~~~~~~~~6 . E/PC/T/C.6/97/Rev.1
Page 56
Organization, the standards adopted by a Member under
this sub-paragraph are likely to have an unduly
restrictive effect on trade, the Organization may
request the Member to revise, the standards provided
that it shall not request the revision of standards
internationally agreed under paragraph 6 of
Article 22.
(d) Export or import quotas applied under regulatory
inter-governmental commodity agreements concluded in
accordance with the provisions of Chapte VII.
(e) Import restrictions on any agricultural or
fisheries product imported in any form necessary to the
enforcement of governmental measures which operate (i).
to restrict the quantities of the like domestic product
permitted to be marketed or produced, or (ii) to remove
a temporary surplus of the like domestic product by
making the surplus available to certain groups of
domestic consumars free of charge or at prices below
the current market level. Any Member imposing
restrictions on the importation of any product pursuant
to this sub-paragraph shall give public notice of the
total quantity or value of the product permitted to be
imported during a specified future period and of any
change in such quantity or value. Moreover, any
restrictions applied under- (i) above shall not be such
as will reduce the total of imports relative to the
total of domestic production, as compared with the
proportion which might reasonably be expected to rule
Between the two in the absence of the restrictions. E/PC/T/C. 6/97/Rev .l
Page 57
25:2 (d)
25:2 (e) 1. The Committee considered the proviso with reference to
goods en route which had been Inserted in square brackets in
sub-paragraph 2 (f) as adopted at the First Session, with
the indication that it should be retained "only if the
matter if not fully covered in Article 2l". The Committee
decided to delete the proviso in question and to amend
Article 27 so as to include provisions concerning public
notice and goods en route (of. Article 27, paragraph 3 (c)).
The remainder of the previous sub-paragraph 2 (f) was merged
with sub-paragraph 2 (e).
2. The delegate for Belgium-Luxemburg proposed the
following addition to the same paragraph:
'Restrictions imposed under this exception should
be strictly limited to the periods during which the
aforesaid circumstances occur, and should not be
imposed on seasonal commodities at a time when like
domestic products are not available." E/PC/T/C.6/97/Rev.1
In determining this proportion the Member shall pay due
regard to the proportion prevailing during a previous
representative period and to any special factors which
may have affected or may be affecting the trade in the
product concerned. The Member shall consult with any
other Members which are interested in the trade in
question and which wish to initiate such consultations.
m
. i
z .,.- : , . . ; .
f, .-
. . . I .. " ... . - , ! . . . .
L I . -; . E/PC/T/C.6/97/Rev.l
Page 59
COMETARY
3. The delegate for Chile maintained the proposal, made by
the delegation of his country at the First Session, that this
sub-paragraph should not be confined to agricultural and
fisheries products.
4. The delegate for China reserved his position regarding this
sub-paragraph and suggested the following text:
"Import prohibitions or restrictions on any
agricultural or other essential products imported in any
form necessary to the enforcement of governmental measures
which operate to regulate production, distribution, or
consumption of like domestic products with a view to
maintaining a dynamic equilibrium between the diverse
economic activities of a country while in the process of
its industrialization."
The delegate for China also reserved his position concerning
the relevant provision in paragraph 4 of Article 27.
5. The delegate for India suggested that the words 'or to
support the prices of such products' be added after 'produced'
in the same sub-paragraph, and that the two sentences from
'Any restrictions" to the product concerned' in sub-paragraph
2 (f) be deleted.
6. The delegate for Norway was unable to express an opinion
on the reservation which the delegation of his country had
made at the First Session with a view to confining
sub-paragraph 2 (e) to agricultural products. E/PC/T/C/6/97/Rev. 1
Page 60o. t .I
HARTfl
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c .
, . E/PC/T/C. 6/97/Rev. 1
Page 61
COMMENTARY
7. The delegate for the United Kingdom suggested that the he
rds "of a directly competative product which may be y
rketed or produced'' be added after the words "producedo " in
paragraph 2 (o) (.e). - * *
, * -, * _,..*.
. ,;. ! . . . . E/PC/T/C.6/97/Rev. 1
Page 62
(f) Import and export prohibitiotions or restrictions on
private trade for the purpose of establishing a new or,
maintaining an existing, monopoly of trade for, a state-trading
enterprise operated under Articles 31, 32 or 33
Article 26
Restrictions to Safeguard the Balance of Payments.
1. Members may need to uee import restrictions as a means
of safeguarding their external financial position and as a step
toward the restoration of equilibrium in their balance of
payments on a sound and lasting basis, particularly in view of
their increased demand for imports needed to carry out their
domestic employment, reconstruction, development or social
policies. Accordingly, notwithstanding the provisions of
Article 25, any Member may restrict the quantity or value of
merchandise permitted to be imported insofar as this is
necessary to safeguard its balance of payments and monetary
reserves. E/PC/T/C.6/97/Rev. 1Page 63
COMMENTARY
25:2 (f)
.__ _ _ _ - E/PC/T/C. /97/Rev.1
Page 64
2. The use of import restrictions under paregraph 1 of this
Article Shall be Subject to the following requirements:
(a) No member shall institute [or maintain] restrictions
or intensifr existing restrictions except to the extent
necessary to forestall the imminent threat of, or to stop,
a serious decline in the level of its monetary reserves or,
in the case of a Member with very low monetary reserves, to
achieve a reasonable rate of increase in its reserves. Due
regard should be paid in each case to any special factors
which may be affecting the level of the Member's reserves,
to any commitmente or other circumstances which may be
affecting its need for reserves, and to any special
credits or other resources which may be available to
protect its reserves.
(b) Members shall eliminate the restrictions when
conditions would no longer Justify their institution
[or maintenance] under sub-paragraph (a), and shall relax
them progressively as such conditions are approached;
(c) Members shall not apply the restrictions in such a
manner as to exclude completely imports of any class of
goods. E/PC/T/C.6/97/Rev. 1 Page 65
rry.*'.'
q~, ..>,:,-'.* ,t Xs~x>...-,..A' .. ;, v
---,,lo V¢ d' *'~~* tt,@a4'+3'tt th- '
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r of .7 el"O *. _e ; w ,j* s. .w
.^ i~il~a ti S1W^s@ifdtSiii.*te htte
t *S? 1|*7 *s 1.! 3tat, ,-8 pha E/PC/T/C/6/97/Rev. 1
Page 66
3. (a) Any Member which Is not applying restrictions
under paragraphs 1 and 2 of this Article but which is considering
the need for their institution shall, before instituting
such restrictions (or, in circumstances in which prior
consultation is impracticable, immediately following upon
the institution of such restrictions) conult with the
Organization as to the nature of its balance-of-payments
difficulties, the various corrective measures which may
be available, and the possible effects of such measures
on the economic of other Members. The Organization shall
invite the International Monetary Fund to participate in
the consultations. No Member shall be required during
such discussions to indicate in advance the choice or
timing of any particular measures which it may ultimately
determine to adopt.
(b) The Organization my at any time invite any Member
applying import. restrictions under pargraphs 1 and 2 of this
Article to consult. with it about the for or extent of the
restrictions, and shall invite a Member substantially
intensifying such restrictions to consult accordingly within
thirty days. Members thus invited shall participate in such
discussions. In the conduct of such-discussions the
Orgahization shall consult the International Monetary Fund
and any other appropriate inter-governmental organization, in
particular with regard to the alternative methods available
to -the Member in question of meeting its balance-of-payments-oi-payonte
diffhiculties. Te O shization.,sball, not later than
-tom the day on which y;q. which this Charter
enters, ineview all rzeziev al restrictions. existing E/PC/T/C.6/57/Rev. 1v.1
Page 67
MENTA
2
26:3 (a)
: 4. i-; ..
?6:3 (b)last The Jo sentencgraph was modified was modifieddso as to
anization to report on f aic rcz t
hicv were in existence on the date the Cthe date the Charter camp
but were lifted before the review was made.,ravisvw was m.
st
I n :
.., . . ?. L t. . ; E/PC/TC.6/97/Rev.1
Page 68
on that day and still applied under paragraphs I and 2 of this
Article at the time of the review.
(c) Any Member may consult with the Organization with a
view to obtaining the prior approval of the Organization
for restrictions which the Member proposes under
paragraphs 1 and 2 to maintain, intensify or institute,
or for the maintenance, Intensification or institution of
restrictions under specified future conditions. The
Organization shall invite the International Monetary Fund
to participate in the consultations. As a result of such
consultations, the Organization may approve in advance
the maintenance, intensification or institution of restrictions
by the Member in question insofar as the general extent, degree
and duration of the restrictions are concerned. To the extent
to which such approval has been given, the action of the
Member applying restrictions shall not be open to challenge
under sub-paragraph (d) on the ground that such action is
inconsistent with the provisions of paragraphs 1 and 2 of this
Article.
(d) Any Member which considers that any other Member is applying
import restrictions under paragraphs 1 and 2 of this Article
in a manner inconsistent with the provisions of those
paragraphs or of Articles 27 and 28,: or in a manner which
unnecessarily damages its commercial interests, may bring
the matter for discussion to the Organization. The Member
applying the restrictions shall then participate in
discussions of the reasons for its action. The Organization,
if it is satisfied that there is a prima facie case that the
complaining Member's interests are adversely affected,may,
after consultation with the International Monetary Fund E/PC/T/C.6/97/Rev. 1
Page 69
26:3 (c) The delegate for Australia pointed out that, although under
last sentence of this sub-paragraph a restriction imposed by a
Member after prior approval was subject to challenge under
sub-paragraph (d), the provisions of sub-paragraph (a) would
still be applicable. He did not consider this desirable and
suggested that sub-paragraph (c) be modified so as to eliminate
the application of sub-paragraph (a) when prior approval of
the restriction concerned had been obtained.
. . - . ;.H
S .s* .* s . . ' . s , .
26:3 (d) 1. The wordss and, If It considers It desirable, after submitting
observations to the parties vith the aim of achieving a
satisfactory settlsmunt of the patter in question" were inserted
n the middle of this sub-aarpwiha'iwto enabling the
Organization to attempt conciliation between Members
before recomending the withdrawal or modification of restrictions.
prove" he last .entence-of tis sub:paragaph, the word "approve
"7W8 S-ubstitute r "secify~' ,afte it bad -been .pointed out that
Wt would be difficult for the Organitationz to deterin from irhich E/PC/T/C.6/97/Rev. 1
Page 70
on any matter falling within the competence of the Fund, and,
it it considers it desirable, after submitting observationsitting observations
the aim of achieving a or acivi inga satactory:.
fettlement or n he matter i question, recommend the withdrawal
or modification of restrictions which it determines are
being apannplied in a mer incon the ent withthe provisions
s 1of p 2 of this Article or of Ariticles 27 or 28aragrhs d. Pcle or of Articles 27 or 28
ages the interests of ezessal.d8n s.the interests of
another Member. f the restrictions are not withdrawn or
modified.in accQrdance. with -the recommendation of the
Organization within sixty days, such other Member or Members
shall be released from such obligations incurred under this
ingrter towards the Member appLyvng the restrictions as
the Organization may approve. E/PC/T/C. 6/97/Rev.1
Page 71
COMMENTARY
obligations the Member in question should be released.
3;. The delegate for belgium, supported by those for Canada
and the United States, sugesbted the following addition to
sub-paragraph 3 (d):
"The Organization may initiate proceedings,' analogous
to the foregoing, if it considers that any Member is
applying import restrictions under paragraphs 1 and 2ragraphs 1 and 2
in a mannwi inconsistent #'th the provsions of
paragrof -.1and 2, o. -t Article 27"
.forThe delegate Tr tshe United State suggested that the
expression "undeand r paragraphs 1 2" be amended to "under
and p.raphq,1,mmittee con2 e .he Conrdered that the
a-pragraph as it stands woild be Interpreted an covering the
tions ctionsrreferred to under paragraph 4. E/PC/T/C. 6/97/Rev. 1
Page 72
(e) The Organization, in reaching its determination under
sub-paragraph (d) shall not recommend the withdrawal or
general relatation of restrictions on the ground that the
existing or prospective balance-of payments difficulties
of the Member in question could be avoided by a change in
that Member's domestic employment, reconstruction,
development or social policies. In carrying out such
domestic policies, however, Members shall pay due regard to phal- pay due regard to
the need for restoring equilibrium in their balance of
lasting basis.payments en a, aound.--n.}Muis,
rictions on im~in e ffct to, the restrictions under
this A imports of products accordingrts 'of products according
to their relative assentiality ,in such a. w-y to give priority
to the Imested by i o f Products requ9ed by. itsdomestic employment
recon social ction, develppmaent s eial policies and programmes.
IDn so doing the Member shall avoid all unnecessary damage to the
commercial Interests of other Members.
5. if there is persistent and widespread application of import
restrictions under this Article, indicating the existence of a
general diaequilibrium which is restricting international trade,
the Organization soAll sInternational on with the Tnternational
Monetary Fund. Thin rganization may then, iR collaboration
throughout with the Fund, initiate discussions to consider
whether other measures might be taken, either by those
Members whmse balances of payments are under pressure or by those
Members whose balances of payments are tending to be
exceptionally favourable, or by any appropriate later-governmentat
organization, to remove the underlying causes of the
disequilibrium. On the invitation of the Organization Members
shall participate in such discussions. E/PC/T/C. 6/97/Rev. 1
Page 73
26:3 (e) , , .. :
for Brazil, Chile, Czechoslovakia Ch*; le* Czechoslovakia
.al. 'rane) lelparagraph might, withis p.ra~aph might, with
at the S-ge, ,e.ssion.led at thecond Sesaio .
26:5. ________ E/PC/T/C.6/97/Rev.1
Page 74
CHARTER
6. The Members recognize that in the early years of the
Organization all of them will be confronted in varying degees
with problems of economic adjustment resulting from the war.
During this period the Organization shall, when required to take
decosopms under this Article or under Article 25, take full
account of the difficulties of post-war adjustment.
7. Throughout this Section the phrase "import restrictions"
includes the restriction of imports by state-trading enterprises
to an extent greater than that which would be permissible under
Article 32.
Article 27
Non-Discriminatory Administratrion of Quatitative Restrictions.
1. No prohibition or restriction shall be applied by any
Member on the exportation of any product of any other Member
country or on the exportation of any product destined for any
other Member country, unless the importation of the like product
of all third countries or the exportation of the like product
to all third countries is similarly prohibited or restricted.
2. Members shall observe the following provisions in applying
import restrictions:
(a) The administration of the restrictions should be
carried out in such a way as to result in a distribution of
trade which approaches as closely as possible to the shares
which the various Member countries might be expected to
obtain as the result of international competition in the
absence of such restrictions..
(b) Wherever practicable, quotas representing the total
amount of permitted imports (whether allocated among
supplying countries or not) shall be fixed) and notice given E/PC/T/C.6/97/Rev.l.
Page 75
COMMENTARY
26:6 The Committee decided to revers the order of paragraphs 6
and 7 of the London text.
*- ; *-. .. -
26:7 The proviso enclosed in squarendonckets in the Loaido version
as this ,aragraph wv deleted since it was considered covered by
paragraph 1 of Article 21.
27:
27:2 . 2 was redr'fted in a renner thought to render the
provisicnE clira and. =ore consequential. Sub -,.raraph (a),
(a) setting cuta general principle of adridxrister~ng ins-or
restrictions reaesants rn addition to ,the text adopted at. th
First Session.
(b) _ _ _ _ E/PC/T/c .6/97/Rev 1
Page 76
CHARTER
of their amount in accordance with paragraph 3 (b) of this
Article.
(c) In cases in which quotas are not practicable, the
restrictions may be applied by means of import licenses or
permits without a quota.
(d) Import licenses or permits, whether or not issued in
connection with quotas shall not (save for purposes of
operating quotas allocated in accordance with sub-paragraph
(e) of this paragraph) require or provide that the license or
permit be utilized for the importation of the product
concerned from a particular country-or source.
(e) In cases In which a quota is allocated among applying
countries, the shares of the various supplying Member
countries should in principle be determined in accordance
with commercial considerations such as price, quality and.
customary sources of supply. For the purpose of appraising
such commercial considerations, the Member applying the
restrictions may seek agreement with respect to the
allocation of shares in the quota with all other Members
having a substantial interest in supplying the product
concerned.. In cases in which this method is not reasonably
practicable, the Member concerned shall allot to Member
countries having a substantial interest in supplying the
product, shares based upon the proportions, supplied by such
Member countries during a previous representative period,
of the total quantity or value off imports of the product,
due account being taken of any special factors which may
have affected or may be affecting the trade in the product.
No conditions or formalities shall be imposed, which would E/PC/T/C. 6/97/Rev. 1.6/97/Rev .1
Page 77 -
:27:2(c) :
27:'d) ___ i
27:2 .(0) . - .
3I?TA1?
- 0:
.? -
. -Cd. E/PC/T/C. 6/97/Rev.1
Page 78
prevent any Member from utilizing fully the share of any
such total quantity or value which has been allotted, to it,|
subject to importation being made within any prescribed
period to which the quota may relate.
3. (a) Iin cases where import licenses are issued in connection
with import restrictions, the Member applying hte
restriction shall provide, upon the request of any Member
having an interest in the trade in the product concerned,
all relevant information concerning the administration
of the restrition, the import licenses granted over a
past recentperiod and the distribution of such clicenses
among supllyigC countries, Provided, however, that there
shall be no obligation tos8upply information as to the
names of iporting gor supplying enterprises.
(b) In the case of import restrictions involving the
filing of quotas, the Member applying the restrictions
shall give public notice of the total quantity or value of
the product or products which will bepPermitted to be
imported, during a specified. future period, or of any
change in such quantity or value. Any supplies of the
product in question which were en rouee at the tmne at
which public notice was given shall not be excludedfrom
entry, Provided that they may be counted, so far as
practicable, against the quantity permitted to be imported
in the period in question, and also, where necessary
against the quantities permitted to be imported in the
next following period or periods, and Provided further that
if any Member customarily exempts from such restrictions
products entered for consumption or withdrawn from
warehouse for consumption during a period of thirty days E/PC/T/C. 6/97/Rev .1
Page .79
COMMENTARY
....
27:3 (a)
:27:.3 (b)
The last sentence of this sub-paragrph was inserted to
replace the provision concerning goods en route incl ined In
e brue brackets in sub-paragraph 2 (f) of Article 25 as
worded, at the Firssst Seion. The seconviso was d proadded
to bring thi-paragraphs sub into nyharmo with the provision
concerning publication of ceradministrative rulingsrulin
ined in paragraph 3 ph 3 of Article 21.
. E/PC/T/C. 6/97/Rev .1
Page 80
after the day of such public notice, such practice shall be
considered full compliance with this sub-paragraph.
(c) In the case of quotas allocated, among supplying
countries the Member applying the restriction shall
promptly inform all other Members having an interest in
supplying the product concerned of the shares in the
quota, by quantity or value, currently allocated to the
various supplying countries and shall give public notice
thereof.
4. With regard to restrictions applied in accordance with
paragraph 2 (e) of this Article or under Paragraph 2 (e) of
Article 25, the selection of a representative period for any
product and the appraisal of any special factors affecting the
trade in the product shall be made initially by the Member
applying the restriction, Provided that such Member shall,
upon the request of any other Member having a substantial
interest in supplying that product or upon the request of the
Organization, consult promptly with the other Member or the
Organization regarding the need for an adjustment of the base
period. selected or for the re-appraisal of the special factors
involved.
5. The provisions of this Article shall apply to any tariff
quota established or maintained by any Member and, insofar as
applicable, the principles of this Article shall also extend. to
export restrictions and to any internal regulation or
requirements under paragraphs 3 and 4 of Article 15. E/PC/T/C..6/97/Rev .1
Page 81
27:3 (C) The words "and shall give public notice thereof" were
added to this sub-paragraph.
ats do- Due reserved hlsi.poslti
.
ragraph t
..
.
.
.
. .
.
.
. .
.. .. . .
*
.
, 1
he .
. .
. .. . .
* . * * . , x
. . - t *
*; . s A ,. o s g . . -,
.
t * *' "* 2, * ' * ho; r
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# ,,.,?n,_ _ ;, :r
on this
c)
27 -4
27:5 Page 82
Article 28
Exceptions to the Rule of Non-Discrimination
ns or this Section 3 .fl - o6 .-m . . c
xchangeticns wrth 'eqaivalent.effect to ix enge
restrictions autVorized. under Section 3 (b) of Article TII
of the Articles oyf Ageement of the International Monetar7
Fund;
(b) prohibitions or restrictions in accordance with
paragraphs 2 (a) (i) or 2 (d) of Article 25;
feconditionsos achinbg.t exports which are- ncessary
to en sure that an exporting Member countryreceives for its
exports its own currency or the currency of any member of
the International Monetary Furd specified by the exporting
Member country;
(tictions in accordance with Article 26 which either
(i) are applied against imports from other countries,
but not as between themselves, by a group of
territories having a ccinona in the
International Monetary Fund, Provilded that such
restrictions are in all other respects consistent
with Article 27, or
(ii) assist in the period until 31 December 1951, by
bstantantial departure frmemeasures not involving m
the provisions of Article 27, a country whose
economy bs been disrupted by war;
(e) restrictions in accordance with Article 26 which both
(i}provide a Member with additional airports above the
maximum total of imports which it could afford in
the light of the requirements of paragraph 2 of E/PC/T/C.6/96/Rev. . o/ ) (/ iev.
Page 83
COMMENTARY
~~~Artic8.
Excele of Non-Discriminationptions to the Ru lon-Dsicorimination
2&1(a) . _. _.:
28:1 (b)
28:1 (c)
28:1 (d) (e) _
.
. Article 26, if its restrictions were consistent
with Article 27, and
(ii) have equivalent effect be exchange restrictions
which are permitted to that Member under the
Articles of Agreement of the International Monetary
Fund or under the terms of any special exchange
agreement whih may have been made between the
Member and the Organization under Article 29,
Provided that a Member which is not applying
restrictions on payments and transfers for current
International transactions, may apply pply..mport'
restrictions under (i) of this sub-paragraph in
special circumstances and only with the prior
approval of the Organization in agreement with the
International Monetary Fund.
2. If the Organization finds, after consultation with the
Internationalarynetear Fund on matters within the competence of'
the Fund.,ithat Import restrictions or exchange restrictions on
payments and transfers in connection with imports are being
applied by a Member in a dinatory maner =anninconsistent with
the exceptions provided under this Article or in a manner which
discriminates unnecessarily against the trade of another Member
country, the Member shall witxin siXty days remove the
discrimination ir modUfy itecified cifiedeby tho Organization,
ed tha. that a Member may, isoit, 60 desires, consult with the
Organization to obtain its prior approval for such discrimination,
under the procedure set forth in paragraph 3 (c) of Articland6, =an
to the extent that such approval is given, the discrimination
shall not be open to challenge under this paragraph. E/PC.T/C.6/97/Rev.1
Page 85
*
OMME
28:2
r 1. : E/PC/T/C.6/97/Rev 1
Page 86
3. When three-quarters of the Members of the Organization
have accepted the obligations of Sections 2, 3 and 4 of
Article VIII of the Articles of Agreement of the International
Monerary Fund, but in any event before 31 December 1951, the
Organization shall review the operation of this Article, in
consultation with the Internatiozal Monetary Fund, with a view
to the earliest possible elimination of any discrimination,
under paragraphs 1 (e) (i) and (ii) of this Article, which
restricts the expansion of world trade.
Article 29
Exchange Arrangements
1. The Organization shall seek co-operation with the
International Monetary Fund to the end that the Organization and
the Fund may pursue a co-ordinated policy with regard to exchange
questions within the competence of the Fund and questions of
quantitative restrictions or other trade measures within the.
competence of the Organization.
2. Members shall not seek by exchange action to frustrate the
purposes of the Organization and shall not seek by trade action
to frustrate the purposes of the International Monetary Fund.
3. In order to avoid the imposition of trade restrictions and
discriminations through exchange techniques and in order to avoid
the danger of conflicting jurisdiction between the Organlzation
and the International Monetary Fund in exchange matters, Members
of the Organization shall also undertake membership of the
International Monetary Fund, Provided that any country which is
not a member of the International Monetary Fund may become a
Member of the Organization if upon accepting this Charter it
undertakes to enter, within a time to be determined by the
Organization after consultation with the International Monetary E/PC/T/C. 6/97/Rev. 17/Ts-~1
Page
NTARYARY
28:3 Certaielegates objected to the last few words of thishis
agraph ("which restricts the expansion of world trade".)de
29:1 ._.__._. ._.*
29:2______
29:3 This. paragraph was redrafted. so as to permit a country which
is not e an~berof the.International Monetary Fund to becom a
Member of the Organization if it u~nd.ertakes to ent, within a
time to withetermined by the Oranization after consultation. ith
the Fund, into a, spooia. exehangp agrement, E/PC/T/C.6/97/.Rev.1
Page 88
CHARTER
Fund., in to a special exchange agreement with the Organization
which would become part of its obligations under bigation's' under this Charter,
and.Provided.further that ' member of the Organization which
ceases to be a member ofl the Internationa Monetary Fund. shall
forthwith enter into a special exchange agreement with the
Organization which shall then become part of its obligations
under this Charter.
1. A Member which has made such an agreement undertakes to
Lurnishrganization with the information which it may
require, within the general scope of Section 5 of Article VIII
of the Articles of Agreement't of the Inernational Monetary Fund,
in order to carry out its functions relating to such agreement.
5. A special exchange agreement between a Member and the
Organization under paragraph 3 of this Article must provide
to the satisfaction of the Orgacollaborating nization, throughout
nwith the Iternationayl Monetax4Fund. that the pummones coon
to the Organization and the Fund will not be frustrated as a
result of action in exchange matters by the Member in question
6. The Orgonizaticn shall seek and. accept the opinion of the
International Monetary Fund. as to whether action by the Member
in exchanger mattpermissible issible under the terms of the special
e agreement and shall nge agr act aboration with the in collation. with the
~~:. -
on ernatcnal Monetary LundbnT all questions which may arise in
the working of a special exchange agreement under this Article. E/PC/T/C. 6/97/Rev. 1
Page 89
COMMENTARY
The order of paragraphs 4 and 5 was reversed.
29:6
Suggested new Article under Section C.
The delegate for China proposed that a new Article be
inserted. after Article 29, reading as follows:
"1. Any Member country recognized as an economically
under-developed country, shall be allowed, as a means
for creating favourable conditions for its industrial
29:4,5 E/PC/T/C.6/97/Rev. 1
Page 90
RTE
7--
_. ., . . . .---., ,.,_:,. .....;,,.
t . , '... ... . :.
. . , x
:- - --. -- I . , . E/PC/T/C .6/97/Rev.l
Page 91
COMMENTARY
development, to impose or maintain restrictions on
the quantity or value of merchandise permitted to be
imported or exported. .
country which considers such an action ti: s action
ate its industrial development,industrial Developme
impose or maintain quantitative~ed to ipose 'ri mar
rts or exports under paragraph 1 rts under paragraph
il it is recognized as having been recozed as haring b
rl .dus
3. n Member coury making use of the provisions
nform to the following e hal confo=~t toh en
¢~~~~ uond* tins: *- :- -; -
- - - -(a) taitivt. restIictiozs to be thus imposed
or aintaiied. hoiild. be applied O the basis of
^ * * >. n e '- .Zi-diSCrimination in--mports from
- - - or exports to al3 Mer-countries;
(b) suchuanittative ritrictiois should be
- -- periddical adjusted to iet ~tl cha
requiiati-`6t -bthe t6bntrjf' Snatilobe econo
- - -- --- man rogred~si~elg 96axed
;. -. - -. .... -- ts fiivelopmeit. n
- - - ' he ldelete in qestian eiplxined that his Gornment
*Vad fwe from Intendingto cause amy ha= to other countries
- ;;-- asid; tht in the event Or complaint -being made
Member cbiintir'affecteda consuiatsixn vith the Organi zati
_ -. ; ?cov ; - '-b -~-.
- - r~*,:e; :- ' E/PC/T/C. 6/97/Rev. 1Rev. l
2Page g
Section D. Subsidies
Article 30
GeUndertaking Regarding Subsidies - Elimination of Subsi
Subsidies - Exceptionsptiona
any Member grants or maintains any subsidesubsiy,
ing any form of incoms or price support, which operatesperate
ly ectly or indirectly to increase exports of any product
fromr or to redupoe -mof any product into, its rts oI
territory, the Member shall notify the Organization in
writing as to the extent and nature of the subsidization,
as to the estimated effect of the subsidization on the
qu antityof the affected product or products imported into
or exported from the territ ory ofthe Member country and
as to- the conditions m ake ing thsubsidization necessary.
In anyin case which it is determined that serious prejudice
to the interesnyt ofer a oth Member is caused or threatened
by any such subsidi,zation the Member granting the
isubsidzation shalnl, upo request, discuss with the other
Member or Members concerned, or with the Organization, the
possibililimiting ty of the subsidization.
2. (a)mber shall grant, directly No Meor indirectly,
any subsidy on the exportation of any product, or
establish or maintain any other system, which results
in the sale hof suc product for export at a price
lower than the. comparable price charged for the like
product to buyers in the domestic market, due
nce being made for differences in the conditions the c
and terms of, sale, for differences in taxation, and for
other differences affecting price comparability,
Provided that this shall not prevent any Member from E/PC/T/C.6/97/Rev. 1
Page 93
COMMENTARY
Section D 5O.O D
s is suggested in the Report of the First Sessionrst Se
6, Secti I iidet') Yi stes considered
graphs 2 and 4ail words' I cept& paos. 'ied i a rwaraphs 2
us and Articleee. iywere'foubd~%up~'iluous and
-acordA y ~deleted
formal nature, werehange8, bhLef37 'a formal nature, were
agraph. It will be sentence of thi ie^ph. It will be
sentence as now draftedsthri tonoes as now drted
the subsidy operates, "directlyi 'i rates, "dirty
increase exports or reduce imports of any orts of azs
can thus not be interpreted as being confined to ig confined
perating directly to affect trade in the product product
nsideration. Similary, in the same sentence the tence th
words "antieffectd were changed to "estimatedmated
t" inIct" oo rdert remove thsible e pos impression that the
Ofect of a sdubsn trade could be accurately predicted.urate
30:2. 1. intial it.l3 words of para raphb 2, referzing to paragraph
4, were deleted as superfluous, and the parhgrapa was
divided into two suagraphs (a) and (b).b). -
2. The concluding words of sab-paregraphe(e) ware modified
for g eater.clarity. The deletion of the words "would be
considered as a case under paragaph 1" wasned ined In
to render it clear that while paragraph 2 coverscover
t subsidies, it is not an alternative to paragraph 1, 1,
which covers subsidies of akinds, whether domesticc
subsidies or export subsidies, if they affect exports or
imports. E/PC/T/C .6/97/Rev. 1
Page 94
exempting exported products from duties or taxes imposed
in respect of like products when consumed domestically,
from remitting such duties or taxes which have accrued,
or from using the proceeds of such duties or taxes to make
payments to domestic producers;
(b) Members shall give-effect to.the provisions of this
paragraph at the earliest practicable date, but in any
event later then three years from the day on which
this charter enters into force. If any Member considers
itself unable to make the provisions of this paragraph
effective in respect of any specified product or products
upon the expiration of such period, Member shall,
at least three months before the expiration of such
period, .give to the Organization notice in writing
requesting a specific extension of the period and
accompanied by a complete analysis of the system intem in
on and the facts justifying it. It shall then be it. It
determined whether the extension requested should be made.
.* . . . .... - .-
.. .
.i E/PC/T/C 6/97/Rev. 1
Page 95
COMMENTARY
30:2 3. .At the First Session the delegate for China had
made a reservation (of Report of the First Session,
page 16, Section D,1 (d) (ix) with a. view to modifying
paragraph 2 so that subsidies to promote exports of
"special commodities" would be permitted in certain countries
until they had attained equilibrium in their balance of
X ,- t e -,I ZX l ;- . . . .-
payments.iThet-delegabefor the same country In the
Drafting Co-'ittee exprsased his willingness to withdraw
he reservation i. satisfied that the subsidies in question
ions pertissible under other provislond of Ihe Charter.
4. The delegate for Chile v.lehed to have:it recorded that
in his view that paragraph 2."should not be interpreted so
asto prevent countries far removed-from world market
wto s ell their products at current orldmarket prices even
prices charged in the a -..:though. these. y be lower th
donm estic market, such action not-beigthe result of a
direct or indirect subsidy or of the establishment of any
- - .: .other. -,^ -,
~~~~~~~t
: * ' * * ' e ' ! ~~~~~~~~n s , -5
~~~~. -*'~ ; _.t
. * : ~ <.:- 1/PC/T/C. 6/9T/Rev.1
Page 906
3. A system for the stabilization of the domestic price
or of returns to domestic producers of a primary product,
which results over a period in the sale of the product for
export at a price lower than the comparable price charged
for the like product to buyers in the domestic market, may
be determined not to involve a subsidy on exportation under
the terms of paragraph 2 of this Article if it has also
resulted over a period in the sale of the product for
export at a price higher than the comparable price charged
for the like product to domestic buyers, and if the system
is so operated, either because of the effective limitation
of production or otherwise, as not to stimulate exports
unduly or otherwise' seriously prejudice the interest of
other Members.
4. (a) In any case of subsidization of a primary
commodity,' if a Member considers that its interests
are seriously prejudiced by the subsidy or if the
Member granting the subsidy considers itself unable
to comply with the provisions of paragraph 2 of this
Article within the time limit laid down therein, the
difficulty may be determined to be a special difficulty
of the kind referred to in Chapter VII, and in that
event the procedure laid down in that Chapter shall
be followed;
(b) If it is determined that the measures provided
for in Chapter VII have not succeeded, or do not
promise to succeed, within a reasonable period of
time, in removing or preventing the development of a
burdensome world surplus of the primary product
concerned, the requirements of paragraph 2 of this E/PC/T/C .6/97/Rev.1.
Page 97
COMMENTARY
30:3 At the Fiist Session (Report, page 16, Section D, 1 (d)
(xi), the delegate for New Zealand had raised the question
* ;¢. ' bev
whether the domestic price to be considered in this
. ,* , . , ; V
paragraph should not be that paid to 4omestic producers.
The Co~ittee acted on a suggestio; bthe delegate for the
same country by adding the words "or of returns to domestic
producers" after Idoznestice" in the first line; but
the deainate reserved his right to raise the question aga
at the Second Session.
30:4i 1. The reference to paragraph 1 In the middle of
sub-paragraph (b) was deleted since It was considered that
in cases such as those dealt with here the obligation of
the subsidizing Member to notify the Organization and
discuss with the Members concerned should not be relinquished.-
2. . The delegates for Canada and Wew ZealAnd reserved
their position on sut-paragraph (b) which they feared
might provide an escape for subsidizing countries taking
such an attitude that no agreement could be reached, in
which case they would be free to act as they wished without
regard to their obligation.under paragraph 2. They did not
consider the provisions of paragraph 5 an adequate
-afeguar;. against abuse.They therefore suggested that
subparagrph 4 (b) be deleted. E/PC/T/C. 6/97/Rev .1
Page 98 .i
.. s .
Atkt1ito apply in respect of sin riepect of such product
~~ ~ ~~~~~~~~~~ ; * ; ,- - 4*-.
as from the effective date. orfs ,tenatlone and
shall.not.b ze-pplied IDL respect ol suoh product
until a date determined in accordance with procedures
approved.by-the Organizatiou.
.. E/PC/T/C.6/97/Rev. 1
Page 99
o
X
a- -
,. N x,. .
.
_ . .
. .
. . .: -:
.s .
.............. ..
, . _
-
. *
. . . .
. .
' , *; _
. . ,,, _ _ , . . .
' . a, N i.- ' . . ' . '
Jo *,; F - __-,; _,, *- * ..
, . . . . ... . . . . . .
. . . . . ...
:; ho . , ? ? , :
_ ,
- . :- - e , .
COMMENM
I
, 4
I I
w 1.
- '. -
. I E/PC/T/C. 6/97/Rev. 1
CHARTER
5.Notiwithstanding the provisions of paragraphs 2 and 4 (b)
of this Article, no Member shall grant a subsidy on the
exportation of any product which has the effect of acquiring
for that Member a share of world trade in that product in
excess of the share which it bad during a previous
representative period, account being taken insofar as
practicable of any special factors which may have affected
or may be affecting the trade in that product. The
selection of a representative period for any product and
the appriasal of any special factors affecting the trade in
the product shall be made initially by the Member granting
the subsidy: Provided that such Member shall, upon the
request of any other Member having an important interest
in the trade in that product, or upon the request of the
Organization, consult promptly with the other Member or
with the Organization regarding the need for an adjustment
of the base period selected or for the re-appraisal of the
special factors involved.
6. Any determination required by or appropriate to the
operation of this Article shall be made under procedures
established by the Organization in accordance with
paragraph 4 of Article 66.
Section S. State Trading
Article 31
Non-Discriminatory Administration of State-Trading
Enterprises
1. If any establishes or maintains a state
enterprise, wherever located, which imports, exports,
purchases, sells, or distributes any product, or if any
Member grants exclusive or special privileges, formally
or in effect, to any enterprise to import,
export, purchase, sell, distribute or produce any E/PC/T/C.6/97/Rev.1.
Page 101
30:5 1. In the Report of the. First -
pearre . as aspubpyaragrph ofparagraph 4,hich
wholly with primary commodities. After the change in the text
referred. to in the following paragraph it was found appropriate
to resent it as paragraph 5.
2. The Committee decided. to delete the word "primary" before
"product" in the first sentence of this paragraph so as to .
extend the limitation provided for in this paragraph to all
export subsidies, whether on primary or non- primary commodities,
whenever such subsidies are permitted. under this Article.
.3. The delegate for China reserved. his position on this paragraph.
30:6 .
Section E
-31:1 1. The Square brackets -enelosing the words "distribute or
produce" in the .first sentence according to the text adopted,
at the First Session were deleted.
2. Thedelegate for Czechoslovakia objected to the inclusion
of these words. E/PC/T/C.6/97/Rev.1
Page 102
CHARTER
product, the commerce of other,Members shall be accorded
treatment no less favourable than that accorded to the
commerce of any country, other than that in which the enterprise
is located in respect of the purchase or sale by such.
enterprise of any product. .To this .end such enterprise: shall,
in making its external. p rshases or sales. of any product, be
influenced solely by commercial considerations, such as
price, quality, marketability, transportation and other terms
of purchase or sale, having due reggard to any differential
customs treatment maintained. consistently with the other
provisions of this Charter. E/PC/T/C. 6/97 /Rev. 1
page 103 .
COMMNTARY
3. The words "and exercise effective control over the
trading operations of such enterprise" entered in square
brackets in the same sentence were deleted in connection with
an amendment to paragraph.3.
Finally, the last sentence in the text adopted at the
First Session statinh the obligation of Members maintaining
State enterprises orgranting exclusive or special privileges
. to enterprises to supply information in connection with
consultation) was deleted as a result of the insertion of a
similar provision in Paragraph 1of Article 35.
5. It was agreed that the charging by a state enterprise
of different prices for its sales of a product in different
markets, domestic or foreign, is not precluded by the
provisions of Article 31, provides. that such different
prices are charged for commercial reasons, to meet
conditions of supply and demand in export markets. E/PC/T/C .6/97/Rev.1
Page 104
CHARTER
2. The Provisions of paragraph 1 of this Article relating to
purchases of imports by state enterprises shall apple to purchases
or imports of products for re-.sale [or for use ih the production
of goods for sale.] With respect to purchases or imports by
state enterprises of products for governmental use and not
for re-sale [or for use in the production of goods for sale.]
Members shall accord to the commerce of the other Members fairz
and equitable treatment, having full regard to all relevant
circumstances.
3. This Article shall appll to any enterprise, organ or
agency in which there is effective control by a Member
government,
Alternative A.
or over whose trading operations a Member government
exercises effective control by virtue of the special or
exclusive privileges granted to the enterprise.
Alternative B:
or over whose trading operations a government is, under
the arrangements providing for the special or exclusive
privileges granted to the enterprise, legally entitled to
exercise effective Control. E/PC/T/C.6/97/Rev.1
Page 105
31:2 The words ''or for use in the production of goods for
sale," were added in square brackets, in this paragraph
as Well as ln paragraph.5 of Article 15, for consideration
at a later stage.
. The delegates for Chile, Czechoslovakia. and New Zealand.
reserved their position with. regard to the insertion of
the words in question.
31:3 1. The text of this paragraph contains two alternatives
presented for consideration at the Second Session.
2. The delegates for Chile, Czechoslovakia and New Zealand
reserved their position on this paragraph, stating that
they preferred the text adopted at the First Session.
-Those for Czechoslovaca and New Zealand stated that, if
they would have to choose between the two alternatives
now recommended, they would prefer Alternative A.
; ;s- . . -... E/PC/T/C .6/97/Rev.1
Page 106
CHARTER
Article 32 -
.Epansion of Trade by State Monopolies of Individual Products
1. ant. MemberM oteer than a Xembqr subject to the
provisions of Article 33, establishes, maintains or authorizes,
forma ly or in fact,> an effective monopoly of the importation
orexportation of any product, such Member shall, upon the
request of any other Member or Members having en interest in
trade with at Member in-, the product concerned, enter into
negotiations with such Member or Members in the manner provided
for in- respect of tariffs under Article 24, with regard. to
(a) in the case of an export monopoly, arrangements
designed to limit or reduce the protection afforded
through the operation of the monopoly to domestic
users of the monopolized product or to assure exports
of the monopolized product in adequate quantities at
reasonable prices; or
(b) in the case of an import monomumy, the maxini
margin by which the price for an imported product
charged by the monopoly in the home market may exceed
the landed cost. before payment of any duty, of such
yz-Duct purchased by the monopoly from suppliers in the
territories of Members, after due allowance for internal
ta6es, transportation, distribution and other expenses
incident to purchase, sale or further processing, and for
a reasonable margin of profit. For the purpose of applying
this margin regard may be had to average landed costs and
selling prices of the monopoly over recent periods. E/PC/T/C.6/97/Rev.1
Page 1 07
The Committee felt that the technique of negotiating
price margins might not be practicable in the case of
export monopolies, and that it would thus be preferable
to set forth in the Charter a general principle, the
detailed implementation of which would be left to the
negotiating parties.
32:1
. - I.. E/PC/T/C .6/97/ Rev .1
page 103
2. Any Member newly establishing any import monopoly in
respect of any product shall not create a margin as defined. .
in paragraph 1 (b), greater than that represented by the
maximum rate ot import duty which may have been negotiated
in regard. to that product pursuant to Article 24.
3. With regard. to any monopolized. product in respect of
which a maximum margin has been established pursuant to
paragraph 1 (b) or paragraph 2 of this Article, the monopoly
shall, as far as administratively practicable, and subject
to the other provisions of this Charter; import [from Members]
and. offer for sale at prices charged. within such maximum
margin such quantities of the product as will be sufficient to
satisfy the full domestic demand. for the imported. product,
account boing taken of any rationing to consumers of the
imported and like domestic product which may be in force
at that time.
4. In applying the provisions of this Article, due regard.
shall be had for the fact that some mon olies are established.
and. opperated. mainly for revenue purposes. E/PC/T/C . 6/97/Rev .1
Page 109
COMMENTARY
2 -.
32:2 _____
32:3 1. The Committee noted that in paragraph 3 the
obpigation of a mono:oly to import from Members such
quantities of a monopolized produci ias would be suff lont
to satisfy the full dgmestic demands miSht in effect
result in a complete prohibition of imports of the Product
from non-Membersi This result, it Is felt, could not have
been intended. However, in view of the doubt expressed
by rertain delegates zegerding the effect of deletin the
phrase "fro pembersp in this jeragra;h, these words have
been placed in square brackets for consideratica at the
Second Session.
2. The Corittee considered paragraph 5 of Section A of
the London Report on the Chapter on Restrictive Business
Practices page 18, foot of column 1) in connection with.
this article, and decided that it was not practicable to
write3into Articles _2 or 33 provisions for state
monopolies correspoaping to those :eplying to private
monopolies according to Chapter VI. It was therefore
decided to disreaard this factor in the draft of Artifle 32,
and, to recommend the insertion of the words "public or'
in ragAamp 1 (a) of -rticle 39 so as to place
equivalent obligations on public and private monopolies
without discrimination.
32:4 E/PC/T/C. 6/97/Rev.1
Page 110 ;.
TEARZTR
Article 33
Expansion of Trade by Complete State MonopoliesImp DEaort Trade
LA-n member establishing or maintaining a complete or
sanubsttially complete monopoly of its import trade shall
promote the expansion of its foreign trade with the other
Members in consonance with the purposes of this Charter.
To tais snd such Member s all.negotiate with the other
Members an arrangement under which, in conjunction with the
granting of tariff concessionssuy ench other Members, and, in
consideration of the other benefits of this Chapter, it shall
undertake to import in the aggregate over a period products
of the other Members valued at not less than ao am-unt to be
acrced upon. This purchase arrangement shall be subject to
periodic adjustm]nt.J
. . E/PC/T/C.6/97/Rev.1
Page 111
COMMENTARY
33 At the London Session it was decided that Article 33
should be left for, consideration at a later stage. The
Drafting Committee did not feel itself called upon to consider
this Article. It is reproduced in, square brackets opposite as
given in the United States Draft Charter.
.
- -:: - - - -.i. - .
-; '. : ?7. - ? - . , : '. E/PC/T/C.6/97 /Rev. 1
Page 112
CHARTER
Section F. Emergency Provisions - Consultation
Article 34
ErgnyAction on Imports of Particular Products
1. If, as a result of unforeseen developments and of the
effect of the obligaticas incurred. under or pursuant to this
Chapter, any product is being imported into the territory of
any Member in such increased quantities and under such conditions
as to cause or threaten serious injury to domestic producers
of like or directly competitive products (or, in the case of
a product which is the subject of a concession with respect
to a preference, is being imported under such conditions as
to cause or threaten serious injury to producers in a
territory which receives or received such preference), the
Member shall be free to suspend the obligation in respect of
such product in whole or in part, or to withdra-r or modify
the concession to the extent and for such time as may be
necessary to prevent 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. In critical and. exceptional circumstances such
action may be taken provisionally without prior consultation,
Provided that consultation shall be effected immediately
following upon the taking of such action. E/PC /T/C .6/97/Rev.1
Page 113.
COMMENTARY
Article 34
Emergency Action on Imports of Particular Products
34:1 The words "is being imported under such conditions as to
cause or threaten serious injury" were added to the words
enclosed in brackets. The words "The Member shall be free to
suspend the obligation in respect of such products in whole
or in part, or to withdraw the concession" were substituted
.for "the Member shall be free to withdraw the concession, or
suspend the obligation, in respect of such product, in whole
or in part, or to modify the concession".
34:2 1. It was decided to divide paragraph 2, as adopted at the
First Sessica, into two paragmaphs, the second of which (now
given as No. 3) refers to the situation arising in cases when
the stipulated consultation does not lead to agreement among
the Members concerned.
2. The delegates for Canada, Chile and Cuba maintained the
view their delegations had expressed at the First Session that
it was undesirable to permit action under Article 34 without
prior consultation even in emergency circumstances (Report of
the First Session, page 10, Section A:3 (b) (iii)). The delegate
for Canada also maintained that if action without prior
consultation was permitted to a Member, imediate counter-action
by other affected Members should also be permitted. E/PC/T/C .6/97/Rev. 1
Page114 -.
3. re If ageeomgent amn the interested Members with respect
to ioe actlan is not reached, the Member which proposes to
taksn or coztinue the action shall, nevertheless, btofree ia
do so, and if: such action is taken or continued. the affected.
Members shall then be free, not lat r xhan.sicty days after
'uon actiai is taken, to s spen ,:upon-the expiration of
thirty days froaythn d& or which wrotice nct4oa of such
soisuesin is received by gthe Orioanizatn, the application
to the trade of the Member taking such ac io , .of- such
s s n6ubatatially equivalentaoboigstinns or coonessiams under
this Chapter the suspension of which gahe Oreoizaticn does
not disapprove. In cases of abuse the Oraoizmaticn =y
authorize an affectbd Memfer to suspend obonigoti s cr
CCcG8ssion in ondditim to whose vaybich mubbe ss*stantially
eqUvalent to the actifinaoriaraly :eken. E/PC/T/C.6/97/Rev. 1
Page 115
COMMENTARY
34:3 The Committee considered it desirable that the retaliatory
action permissible underthis paragraph should not be
unnecessarily delayed; accoringly, it has suggested the
shortening from sixty to thirty days of the period to be
observed from the date on which written notice of the
suspansion of obligations or concessions is received by
the Organization. E/PC/T/C. 6/97/Rev.1
Page 116
CHARTER
Article 35
Consultation -Nullification or Impairment
1. 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, Subsidies, state-trading operations,
sanitary laws and regulations for the protection of human,
animal or plant life or health, and generally all matters
effecting the operation of this Chapter; and. shall, in the
course of such consultation, provide the other Member with
such information as will enable a full and fair appraisal of
the situation which is the subject of such representations.
2. If any Member should consider that any other Member is
applying any measure, whether or not it conflicts with the
term- of this Charter, or that any situation exists, which
has the effect of nullifying or impairing any object of
this Charter, the Member or Members concerned shall give
sympathetic consideration to such written representations
or proposals as may be made with a view to effecting a
satisfactory adjustment of the matter. If no such adjustment
can be effected, the matter may be referred, to the
Organization, which shall, after investigation, and, if
necessary after consultation with the Economic and Social
Council of the United Nations and any appropriate inter-
goverrmental organizations, make appropriate recommendations
to the Members concerned. The Organization, if it considers E/PC/T/C.6/Rev.1
Page 117 -
MENTARY
Consultation - Nullification or Impoirment
35:1 1 The examples of matters that may be subject to
representations, enumarated in the first part of this
paragraph, were added to by inclusion of the words "anti-
dumping and countervailing dutier".and"subsidies".
2. The delegate for Brazil reserved his position for the
time being regarding the nsertion of "anti-dumping and.
countarvailing duties". ; -
3. A naumber of delegats sugges ed insertion of''the words
-withut pretudicine the lagitimato business interests of
particular private. or state tradingaenterprises," efter "such
forlation as wil.. The delegate for Czechoslovakia was
strongr n favour of the inclusion of these wores which, h
considesedd expreasec. the intentions of the First Session
(Cf. the Report of that Seesion, pag- 17, Section E:1 (iv),
4. The delegate for France, supportiag the remerks made by
the delegate sor Czechoulovakia, declared that if the reference
to the legitimate business interests of public and private
enterprises were to be deleted, he preferred restoration of
the text of the First Sessing (deletiza tho words fram "and
Shall, in the co).se' etc. Page 118
the case serious. enough to justify such action, may authorize
a Mem or Members to suspend the application to any other
Member or Member of such seecified obligations or concessions
under this Chapter asmay be appropriate in the circumstances.
If such obligations or concessions are in fact suspended, any
affected Member shall them be free, not later than sixty days
after such action is taken, to withdraw from the Organization
upon the expiration of sixty days from the day on which
written notice of such withdrawal is received by the
. Organization.
SECTION G. RELATIONS WITH NON-MEMBERS
Article 35
Contractual Relations with Non-Members
Treatment of the Trade of Non-Members
(See Comment opposite) E/PC/T/C.6/97/Rev.1
Page 119
I
n,36 a A -simitSsi : Conmttee decided
t6o leave Articl '3 or consideration~ tThelater stage.. Vie
eDraftnng coitti idhist 'discuss'ii Article..
Trticle,etext or tigsAAhl giived n teUni7tecl tas
azf iharter,.Is rebeldwced .el'v for reference;
1. No Mezber shall, seek exclusive or preferential
advantages for its trade in the territory of eany non-Mmber
vbich votld result, directly or indn ecscriminatio
in that territory 'aganst the trade of any other Member.
29. No Member shall, be a party to ian agerement or other
ararengmenti wth ayn .nn-Mem ber udnre which such non-Member
shall be contractually entitled to any of the benefits of
this Charter,
ith r* W d . '; ',,gar; to countries which, although eligible for
- memb nship,- have~zot become Members or have with-drawn.
firomiot,e O Mambat~n$ no'Mei'er Shall, except with the
concurrence za toe Organizgt qn, apply to-the trade of such
Ivt'fet b u .Mme
countries the taritf reduct
aragraph shall becole *,. -s - ; tecm
upnte e iatioof one yar from the date on
esult, directly or indirectly, in di2 rimination-scome*
heto cha I iztion is established:
rPoided, Tvhat thi cevrod may be e extended by the
.ganiza iton -fr -further periods not to exceeds*ix months
: . Membersundmertake, to review any international
ol~gatiions he may havewvhich would prevent hec 'fom-
giving ful effect -to paarrapphs 1 and 2 of this Artcle.
an,i ifn ecessay7 "for that uorocses to trmeiante such
obligations either by gareemert or in accordane with
their tems."s E/PC/T/C.5/97/Rev.1
CHARTER
Subject to the requirement that such measures are
not applied. in a manner which would constitute a means of
arbitary or unjustifiable discriminatica between countries
where the same conditions prevail, or a disguised. restriction
on international trade, nothing in Chapter V shall be construed
to prevent the adoption or enforcement by any Member of measures
(a) necessary to protect public morals;
(b) for the purpose of protecting human, animal or
plant life or health, if corresponding domestic safeguards
under similar conditions exist in the importing country;
(d)relating to the traffic in arms, ammunition
and implements of war and to such traffic in other
goods and materials as is carried on for the purpose
of supplying a militatry establishment;
(e)in time of war or other emergency in international
_ ; - ' relattheonprot, relnting to t oectioa of the essential
- Membersecurity interests of a .m~er;
or e>p. *tior):r ltX t. tb ii~ore qtn r ex-orta-rtln of
gold or sil-rr;
(g). necessary- to. seue. caliance with laws or
en',--relta hich. iae oiin I-tent with the
-o~' -- i-sof, Capter V, sc as,. hose relating
to custom n..rcement ective practices, and. te
e otektiom f atentsZ trtida'arts and. copyrights; E/PC/T/C.6/97/Rev. 1
Page 121
COMMENTARY
37 (a) and (b) The delegate for Norway pointed out that his country's
restrictionson the importation, production and sale of
alcoholic beverages had as its chief object the promotion of
temperance. He therefore considered that the taxation and.
the price policy of its state liquor and were monopoly was
covered by items (a) and (b) of Article 37.
(b) The delegates for Chile, Czechoslovakia, France,
New Zealand, the United Kingdom and the United. States
preferred the following version of item (b):
"necessary to protect human, animal or plant life
or health."
(c) The delegate for Australia reserved his position on
item (c).
(d)
(f) The delegate for Indie raised the question whether
item (f) should refer to silver which is an ordinary commodity
in world trade.
(g) E/PC/T/C.6/97/Rev.1
Page 122
CHARTER
(h) relating to the products of prison labour;
(i) -impesed for the protection of national treasures
of- artiatici historic or archaeclegical value;
( . (tJ) relaonserto toncose rvaticvm (if exhaustible
- *naturaL resources if suchsmeasures are taken pur3uant
to. internart onal. afgereements or ae: made efctive
on oninomestJm tpr wuth oestrictics ch sestic' y-:odacticn
or celqsz;2pt!Q or
(k)gundertak.a in persuance of oblications under ths
Unitean Nation Chateionr for the minten~ace or restorat
of international peace nd.security. E/PC/T/C. 6/97/Rev. 1
Page 123
COMMENTARY
37 (h)
(3) 1. The delegate for India maintained the suggestion made
by the delegation of his country at the First Session that
the words following upon "natural resources" in item (j)
should be deleted.
The delegates for Brazil and New Zealand maintained
their support given at that Seasion to the suggestion by
the delegate for India.
2. The delegate for New Zealand mintained his proposal
thet the words "or other" be added before "resources" in
item (j).
(k) E/PC/T/C .6/97/Rev.1
Page 124
Article 37
General Exceptions to Chapter V
: A .. 1 E/PC/T/C.6/97/Rev.1
Page 125
Miacellaneous Comments
1. Article 32 of the United States Draft Charter (correspondin
to Article 37 of the present text) contains one -item reading:
"(1) imposed in accordance with a determination or
recommendation of the Organization formulated under
paragraphs 2, 6 or 7 of Article 55" (that is, the present
Article 66).
The Committee considered that the articles referred to in
Article 66 covered adequately the exception considered under
item (1) quoted above and was hence of the opinion that this
item should not be included in Article 37. The delegate for
the Netherlands, however, felt that deletion of this item
would involve that the determination and recommendations
under Article 66, paragraphs 6 and 7, would still have to
conform to the provisions of Chapter V, unless they were
waived by a two-third majority under the provisions of
Article 66, paragraph 2. The proposed change would thus
in his opinion involve a material deviation from the general
opinion at the London Conference and from the draft text before
deletion.
2. The delegate for Canada suggested that Article 37 should
contain a provision permitting a Member to prohibit the
importation of any commodity, the production of which is
prohibited domestically. E/PC/T/C .6/97/Rev.1
Page 126
CHARTER
.. - . '. 'r ? .
:?? '. I . 1. I I
., -1 - . .-. !?
I I - I
c - . .
7 ... t . I .. .. E/PC/T/C.6/97/Rev.1
Page 127
COMMENTARY
37. (Miscellaneous comments, continued)
3. As it seemed to be generally agreed that electric power
should not be classified 86 a comodity, the delegates for
Canada and Chile did not find it necessary to reserve the
right for their countries to prohibit the export of electric
power.
4. The delegate for China maintained a suggestion by the
delegation of thins country at the Firat Session of the
Preparatory Committee to the effect that a new paragraph
should permit measures "temporarily imposed to prevent,
arrest or relieve conditions of social disturbance, natural
calamity or other national emergencies, provided that such
measures are withdrawn as soon as the said conditions
cease to exist." It was suggested that paragraph 2 (b) of
Article 25 covers this point to a certain extent.
5. The delegate for India suggested that a Member should
be allowed temporarily to discriminate against the trade of
another Member when this is the only effective measure open
to it to retaliate against any discrimination practiced by
that Member in matters outside the purview of the
International Trade Organization, pending. a settlement of
the issue through the United Nations. (of the reservation
by the same delegate regarding Article 23, Boycotts). E /PC /T/C.6/97/Rev.1
Page .128
Section I - Territorial Application
Article 38
Territorial Application of Chapter V - Frontier Traffic-
Customs Unions
I. The provisions of Chapter V shall apply to the customs
territories ot the Members. If there are two or more customs
territories under the Jurisdiction, of any Member, each such
customs territory shall be considered: as though it were a
separate Member for the purpose of interpreting the provisions
of Chapter V.
2. The provisions of Chapter V shall not be construed to
prevent
(a) advantages accorded by any Member to adjacent
countries in order to facilitate frontier traffic; or
(b) the formation of a customs union provided that the
duties and other regulations of commerce imposed by any
such union in respect of trade with Members shall not on
the whole be higher or more stringent than the average
level of the duties and regulations of commerce
applicable in the constituent territories prior to the
-formation of such union.
3. Any Member proposing to enter into a customs union
shall consult with the Organization and shall make available
to it suh information regarding the proposed union as will
enable the Organization to make such reports and
recommendations to Members as it may deem appropriate. E/PC/T/C .6/97/Rev.1
Pege 129
Section I
Article 38
Territorial Application of Chapter V - Frontier Traffic -
Customs Unions
38:1 The representative of the International Monetary Fund
pointed out that he was unable at the present stage to express
an opinion on the implications of paragraph 1 of Article 38
on the Articles 26, 28 and 29.
38:2 The delegate for Chile suggested that sub-paragraph (b) should
begin with the words "the formation, including its initial
transitional stage, of a union" etc. This amendment was supported
by the delegate for Lebanon. During the discussion reference was
made to the fact that the wording adopted at the First Session
permits of measures which in fact represent a transition towards
a customs union.
38:3 The delegate for Australia drew attention to a suggestion
made by the delegation for his country at the First Session*,
asking that provision should be made in this paragraph so as
to allow continuation of his country's special arrangements
with certain neighbouring islands.
* Document E/PC/T/CII/29 E/PC/T/C .6/97/Rev .1
4. The Members recognize that there may in exceptional
circumstances be Justification for new preferential arrangements
requiring an exception to the provisions of Chapter V. Any such
exception shall conform to the criteria and procedures which may
be established by the Organization under paragraph 3 of
Article.66.
5. For the purpose of this Article a customs territory shall
be understood to mean any territory within which separate tariffs
or other regulations of commerce are maintained. with respect to a
substantial part of the trade of such territory. A customs union
shall be understood to man the substitution of a single customs
territory for two or more customs territories, so that all
tariffs and other restrictive regulations of commerce as between
the territories of members of the union are substantially
eliminated and substantially the same tariffs and other
regulations of commerce are applied by each of the members of the
union to the trade of territories not included in the union. E/PC/T/C.6/97/Rev.1
Page 131
COMMENTARY
38:4 The delegates for Brazil and Lebanon maintaied reservations
made by the delegations of their countries at the First Session in
favour of special treatment of regional preferences (Report of the
First Session, page 11, Section A, 5 (c)). The delegate for
Lebanon objected to application of Article 66 in the case here
~~~~~~~~~~~. .-.; . . ;.. * **
considered since in practice this eghttimply that a two-third
majority vould be required for approving regional preferences.
: ..The delegate Tor Chile joiied in the reservation in question.
38:5 E/PC/T/C .6/97/Rev.1
Page 132
List L sr fe-red tr itorsies. ;e.-re.to. in ub-paragraph(2) (a) (ii-
of Article 14..
f E~~~Th Uait d. KIgd~om ok Gneat ritain 4nd. Northern Irelamd.
~~~~and. its dependent; territories,
e . .
.. * . . - . * *Canada,
:h C' n-ealth of Australia, a- s dependent territories,
New Zealand and its lperdet territories,
The Union of South Africa including South West Africa.,
Ireland.,
Indla,
Nevoundland.
Southern Rhodesia,
Burz,
Ceylon. |
GATT Library | kp430xm8152 | Report of the Drafting Committee of the Preparatory Committee of the United Nations Conference on Trade and Employment | United Nations Economic and Social Council, February 27, 1947 | United Nations. Economic and Social Council | 27/02/1947 | official documents | E/PC/T/C.6/98/Rev.1 and E/PC/T/C.6/98-103 | https://exhibits.stanford.edu/gatt/catalog/kp430xm8152 | kp430xm8152_90230176.xml | GATT_151 | 3,124 | 21,426 | United Nations
ECONOMIC
AND
SOCIAL COUNCIL
Nations Unies
CONSEIL
ECONOMIQUE
ET -SOCIAL
.. - . ... .. , . .7.
EPC/T/C .6/98fRev.1
27 Februa' 19I7
MIIGn: HolS
G COMMITTEE OF THE PREPARATORY OF M EE MATMY
NITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT DOMiT
RffAPTM VI
CTIVE BUSINESS PRACTICESW
1. The text of Chapter VI as redrafted by theDrafting Committe
appear in doceuments E/PCCT/C.6/W.66 and E/PC/T/C.6/W.79,and as
redrfafted by the Legal Drafting Sub-Committee, in this docu
> E/PC/T/C.6/98/Rev. 1 -
Paje 2
. Members sbal take appropri te measures, individual, or-through
the Orcanization or in bo h ways, to prevent business :practices affecting
internationltrade which restrain competition, limit access to markets
or oyster M=npolistic control, whenever such, practices have harmful effects
on-the expansion of production and trade and the maintenance in all
countries of high levels nf real income or impair ary of the purposes of
the Organizalio1.as set forth in ArticJe.l, E/PC/T/C.6/98/Rev .1
Page 3
RESTRICTIVE BUSINESS PRACTICES
1. The delegates of Brazil, Chile, Cuba and India
sustained their reservation from the First Session of the
Preparatory Committee against the exclusion of services from
the purview of CapterVI. The delegate of Cubawent on record
with the opinion that services fell under the terms of reference
of the Preparatory Committee and that in this respect there was
no necessity to request a ruling of the Economic and Social
Council of the United Nations.
2. The delegates for Brazil and Chile maintained the reservations
which their delegations had made at the First Session regarding
the compulsory registration of restrictive business practices
with the Organization. The delegate for Czechoslovakia made a
similar reservation . The delegate for Brazil also maintained
the reservations which his delegation had made at the First
Session, that the register of restrictive business practices,
kept by the Organization, should be given some degree of publictty.
SPECIFIC COMMENTS
9~Article 3_-
dslic Towrds. Restrictive Business Pratices
3Braz Bilms originin notion to Iclude the mention of economic
ideperagraph 1Pagph was met by the woragng of1,are-raphkI
rough,, tlwouh its reference to all the purposes of the
onganiatIo as set forth i1 Article l implicitly includes
evelopment.uent. E/PC/T/C .6/98/Rev.1
Page 4
2. Without limiting the"generalityof paragraph 1 of this
Article, the practices listed in paragraph 3 below shallbe
subject to investigation in accordance with the procedure with
respect to complaints provided by the relevant Articles of this
Chapter, if the Organization considers them to have or to be
about to have any of the harmful effects enumerated in
paragraph 1 of this Article, whenever
(a) they are engaged in or made effective by one or more
public or private commercial enterprises or by a combination,
agreement or other arrangement between commercial
. . .
enterprises, wh ther -between priomte ccnm rcial'enterprises,
between pubmme co~eircial enterprises, (i.e., trading
agencies ornmentnmnt 'or enterprises in which there
Is effective public control), or between private and
pcommercialf &-I enter;rinds, a E/PC/T/C.6/98/Rev. 1
Page 5
COMMENTARY
39:2 1. In the first sentence of paragraph 2 the words "in accordance
with the procedure with respect to complaints provided by the
relevant articles of this Chapter" have been inserted on the
motion of the French Delegate in order to make it clear that
the incestigation procedure provided for inArticle 40 should
only follow upon a specific complaint in accordance with Article
40,and not as a consequence of studies undertaken by the
Organization in accordance with Article 41. The Drafting
committee was not certain whether this addition did not
constitute a substantive change of the originaltext, by limiting
the authority of the Organization to investigate restrictive
business practices on the Organization's own initiative. The
Committee decided to include the sentence but to refer the
question of the substantive change to the Second Session of the
Preparatory Committee.
39:2(a) 2. The term "public control has been substituted for the term
"government control" to clarify that enterprises under the control
of subordinate public bodies, such as municipalities and others,
also fall under this sub-paragraph.
3. The words "public or" were inserted before "private
commercial enterprises" to avoid any discrimination in the
substanceof the obligationsplaced on the "two types of
enterprise. It was not found practicable to draftArticle 32
and 33 in such away as to include the obligations undertaken,
by state monopolies regarding Restrictive Business Practices.
The United Kingdom's Delegation reserved its position on this
.- 8 - s . .- ,.
eserved their positionhira" Brzil res their position
pithiregard to the inclusisesof 'ubllc commercial enterpries E /PC/T/C .6/98/Rev.1
Page 6
. )b>such.commercial l nsterprisesc invidualll .brb
llecti oylJotivel r, possess efntrol of among ae among a
ntzibe of countries in one or more products.
3, The practices ref rred.to :in paragraph 2 of this Article are
g prices or 'ermsn prconditions rm. oe cnit1ions . to bq observed in
s de lIng.with oth re. in. he purchase, sale or.lease of any
product;, . , ,
(b) - excluding enterprises from any territorial market or
,;e dd.q.business activity, allocatipg or. dividing any
te ritorial, market or field of-business.activity, allocating
. . custmers,. orfiin salt. .or purcbase uotas;..
ises whether bying. anist-particuzrve.,errises whether by
boycott or otherwise; ,
(d) Jimitating production or fixing production quotas;
(e) suppressing the application or development of technology
or 1.vention, whether patented or unpatented;
extending the use of rigltp under patents, trade marks
or copyrigbts to matter not prxoper3 within the scope of the
authorized. grant, or to products or conditions of
prp.%ction, use or sa1q. which are not the immediate subjects
,o.the awtized grant. Page
COMMENTARYTA,.RY
in thisaragraph.ap4,
5 The gate for Chile considered that tat the changes in
paragraph 2 constitu s as-ubgtvn iyesamendment preferred toto
press his final ~positioi In thimatter at t>6he Second Session.
:3(c)) 1. The rardingiz of thisub- ,paragraph was approved to meet a
reservation on the part of lgi-iuw vhich L d. pointeduoat
at the First Session that boycotts constitut d. not a
sPecific practice but only a special case of
&iscrimination.
:9; 3(e) 2. Thwordsde "or development" were add d. to the xe.t,
39(f) ±: .3; The words " f}theauthorized grant" were added eos as
to clarift -hwording.i
.. - ~. The Delegate for thlandssmaintained h c,-,2is reservation
from the Firsn Sesviem of regarding the highly~ technical
L charac er of this subt-paragraph. E/PC/T/C.6/98/Rev.1 ~ cm
Respect to complaints and Conferences ferenoes
ge, if it considers such action to be justified, forstified, for
particular Members to take part in a conference requested by
any Member which considers that any particular practices exist
vhich have or are about to have the effect described in
paragraph I of Article 39;
(b) consider each written, complaint submitted by any Member
or submitted with the authorization of anyember by aqv
affected person, organizinion or ityiiess entty~ within that
Membero Jurisdicticn, claaming that pArticular practices
exist which have or are about to have the effect described
i1 paragraph I of Article 39, and prescribe the minimum
information to be included in such complaints;
and c) cider au request eanc Mnmber co--er.ed to furunish
.-v . ;. . t.45:
such snfryzatick -a the Organix-'Ati ma deem neceesaa7
al enterprisescluding, information oredaia pise
determine whether further, and. t~hem determine whether faher
Investfotion it, Natified--
-.:. : ;*..,- E/PC/T/C. 6/98/Rev. 1
Page 9
COMMENTARY
Article 40
Procedure.with.respectto Complaints and Conferences
GENERAL COMMENTS .
1 lThe Dolegate or.the Netherlands maintai d,.the reservation
his Deaeg tion am. nade t .the First Session aegingain the
reference of complaints toe h'3 International Court of Justice.
2. An Australianarrannsagement and partial redraft of Article 40
was referred to the Second Session.
1(:)Cb Specific mentsts .
. The Unitdom Delegation, seconded by the Frenchrench
Delenatiot, suggested the followingulormwa:tionw "consider each
written complaint submibted ly, a Memne or ,its own behalf or on
feal of any affected nersrQ, ozganization or business entity,
within that Mrmberts jurisdiction. The Drafting Committee
decided to retain Lhe .Iondon text, merely substitutingwthe vord
: authoriz"tion" for permission" and. decided to refer this issue
to the Second Session.
2. The Draftimmitteettee wished to state that in its opinion it
would be one of the fiask teess of the Organization, once a
complaint had been received, to approach those Members for
information within josisJurlediction the person or business
entitly alleged to be engaged i the..restrictive business practice
was operating.
. . .. .. . ' . . . . . I
.' . . t I - I
: - -- ' ? i, -' I , , :. E/PC/T/C.61/98/Rev. 1
Page 10
(d) if it cosiders that further investigation is justified,
notify all Members of each such complaint, request, the
complaint or any Member to provide such information
relevant to the complaint as the Oraganization may deem a-sa' t izato do
necessary and coduct- or arrage for hearings provided that
.10 lili
ed in theer and 'the patties'alleged o haengaged In the
at suchottce shall th'opportunity to tb herd, at such
hearings. - '' . -
(e) review all information available and determine viether
the practices in question have or are about to have the
effeCt described in ipara:rap of Artffc 39.
,..2, The. Organizatot. ill -
(a) report fully to all Members its determination
adL the -reasons therefor; if'it finds that. the practices have
' ., had for are about to have] the effect described in
paragraph I of. ArtibVe'39, it shaI l request each Member
concerned to take every possible action to prevent the
. continuance or recurrence of the practices. endmay recommend.
' - 'to the Members concerned rdmedAal measurs tb6 be caried, out
in'accordance with thei*F respective iaws and-procedures;
(b) 'request all Members' coicernehato reportfuLly the
" '* atioi..they have- taken o'achievel-these:resuLts;
(c) prepare and publish, as soonas possible after
enquiries have beer provisionally or finally closed, reports
on all complaints dealt with under paragraph I (d) of this
Article, showing fully its decisions, findings or other
conclusions, the reasons therefore and any action which'the
Organization has reccamanded to the Members concerned;
Provided, that E/PC/T/C.6/98/Rev.1
Page 11
COMMENTRY
40:1(e) 3. The Drafting Committee inserted the words "or are about to
.. . .
have" isto the text Of this Bub-paragraph in order to make the
text crdingtof rticle 39,paragraph 2.ce 39, paragraph 2.,
40:2eleg 1. Three d.eleations objected to the insertion of the clause
1vrars about to have" in this paragraph because they considered
such an insertion to contain subsiantive change by Increasing
the authority of the Organization under this paragraph. The
Committee consequently put the phrase in this context into square
~~~~~~~~~~~~~~~
lly or finally closed" were substitutedon on the issue tor the Seout t
Xor the wo d "cmlted," to clarify that -the Organization.,
according to the circumstances of the case, would not always be
oblibut if complendings warranted,,g .b its fidigsara2 e
such procedure could temporarily discontinue investigations. Page 12
CHARTER
(i) publication or such reports or any portion thereof
may be withheld if it deems this course justified;
and
(ii) the Organization shall not, if a Member so requests,
disclose confidential information furnished by that
Member which would materially damage the legitimate
business interests of a commercial enterprise.
(d) report to all Members, and make public if it deems
desirable, the action which has been taken by the Members
concerned to realize the purposes described in paragraph
2 (a) of the Article. ..e. .
Article 41
S~~die'SReelring 't Biiinesse 3uslhiesasracticeif
nization mayOrganizatio ' ' "
(a) e6duct' tudi's, either 'n its own initiative or at the
equese~ f anjtMejbbr nor of t UnitidBNations or asy
selationship with the Unitedzxo rlationsbpwith the United
Nations, ilitlig t:-
(i) typactices inrictive business prictces in
international trade;
(ii) conventions, lava and procedures concerning, for
example, incorporation, company registration,
- - investment, securittes; prices, markets,fizr-
ights patentse, traemars copyrigs, patent
ment of technology,he _echbj 'a L&' tevoz or -,
to res '' insofar as they are role t6 rtrictive
business Prale ces;-*- .
(b)i request information from Members in connection wtth such
studies. E/PC/T//C.6/98/Rev.1
Page 13
COMMENTARYN TAE
' I *'
::
:. ..
* . ,.
.. ... . . 2. The Organization may
(a) make recommendations to Members concerning such
conventions, laws and procedures as are relevant to their
obligations under this Chapter;.
(b) arrange conferences for purposes of general consultation
on any matters relating to restrictive business practices.
Article 42
Obligation of Members
1. In order to implement the preceding Articles, this
Chapter, each Member shall
(a) take all possible steps by legislation or otherwise
to ensure that private and public commercial enterprises
within its jurisdiction do not engage in practices which
have the effect described in paragraph 1 of Article 39;
(b) take fullest account of the Organization's
determinations, requests and recommendations made under
paragraph 2 (a) of Article 40 and determine appropriate
action in accordance with its system of law and economic
organization to prevent within its jurisdiction the
continuance or recurrence of any practices which the
Organization find to have had [or to be about to have]
the effect described in paragaph 1 of Article 39.
2. Each Member shall
(a) establish procedures to deal with complaints, conduct
investigations, prepare information and reports requested
by the Organization and generally assist in preventing
practices which have the effect described in paragraph 1
of Article 39, these measures to be taken in accordance
with the particular system. of law and economic organization
of the country concerned; E/PC/T/C/.6/98/Rev.1
Page 15
COMMENTARY ONMD
Article 42
-OblIgations of Members
-42: 1( b) Speommic, CcMients
1. The rafmmittee ozittee decided to inseht the p.rase "or
to be ahout to bave" in square bra kets in. the text because the
san woubts vith regard to substance prevailed as regarding the
insertion of this pbrase in Article 4gr parap'aph 2 (a).
2. Certain Dele gationsreserved their powition vith regard
to the use of t " word, determine" in the third line and suggested
to-replac it by7 th: words' "in deciding as to". E/PC/T/C.6/98/Rev.1
Page 16
CH-R' <2ATER
(b) conduct such investigations as my be nndessary ast
practicable to secure information requested by the
Organization or tp prevent Practices which have the
effect described in paragraph 1 of Article 39;
(c) furnish to the Organization, as promptly as possible
and to the fullest extent prasticable, euch information
es is reqqeated by the Organization under p1ragraphs I (c),
(() nd: 2 fb): of. Article 40 and under paragraph 1 (a) of
Article 41 provided that the Member
(i) my withhold confidential information relating
to its national security; or
(ii) on proper notification to the Organization, may
withhold informations which is not essential to
the Or anization. in undertaking an adequate
investi ation and. which, if disclosed, would
.i *. materially damage the legitimate business
prises. In interests of a camercial enterprises. Ir;
dingfin itheCrganization that it is withholdini
information pursuant to this clause, the Member
shalldincate the general character of the
information j..theld;
(d) report, as requested by the Organization under
paragraph 2 (b) of Article 40, the action taken,
indes,ndently or in concert with other Member, to
tuqLement recommendations made by the Organization under
paragraph 2 (a) of Article 40, and, in cases in which no
action is taken, to explain to the Organization the
reasons therefor and discuss the matter further with E/PC/T/C. 6/98/Rev. 1
Page 17
COMMENTARY
42:2(c) (ii)1.This new clause was inserted to provide for the adequate
protection of legitimate business interests of commercial
enterprises against damaging disclosures. Upon the motion of
.. . : .. .g..
Comm diKi gd he First Session, .te.Filst:Sepsion, in its
reed to ieting. ba..Weed to incorporate such a proviso into the
nd t.of C pter i he clause newii Inserted, under (..)
sion. iemiie +,h&er c, T . .
and Luxembourg delegations recorded a
..e .egin .rnc .u . ... u.
is not .se ntial to the
reservation agaiste t1e l rasa
Organizat7on in xiiidtekig -an'adequate itnvetifga3~onr as a
substantive departarefrom the d-regxTl e' a: hed. s, a e t o
Iirst-session9
~~~~~~~~~~ E/PC/T/C.6/98.Rev 1 Page 18 CHARTER ~ - :
thi Organization If requested to do so; -
e) take part -in, conferences upon the request of the
Organization in accordanc1 with paragraph I (a) of
Article 40 and paragraph 2 (b) of Article 41. -
Article 43
Supplementary Enforcement Arrangements
1. Members may co-operate with each other in prohibitive,
preventive or other measures for the purpose of making more
effective any remedie. order issued by a duly authorized agency
of any Member in furtherance of the objectives of this Chapter.
2. Members parxicipating in or intending to participate in
sucshalloperative action ,8bei notify the Organization.
Article 44
Continumesti0fectiveness of Does9tc Measures
Against Restrictive Business Practices.
AySct or. mi part of, act on thepat. of-' he Organization
n11\ Act precluen- sy fember.nationalorcing any =. tonal
statute.X o 4ecre directedmonopoly preventing sionpp or
- ies~tr~ai$t.of t..- <tl. $',.."., .'--,'
Article 45 ,. .
Exceptions to the Provisions of this Chapter
1. The obligations im this Chapter shal not apply to
(a" inter-govermental commodity arrangements meeting
the requirements of Chapter VI;
(b) the international arrangements excepted in Article 59. E/PC/T/C..6/98/Rev.1
Page 19
COMMENTARY
1. The Drafting Committee inserted a reference to
paragraph 1 (a) of Article 40 because it believed that the
intention of the First Session had been to include in this
paragraph conferences under Article 40 as well as conferences
under Article 41.
2. The United Kingdom reserved its position on the insertion
of the reference to paragraph 1 (a) of Article 40.
Article 45
Exceptions to the Provisions of this Chapter
1. The Drafting Committee examined the desirability of
re-inserting paragraph 1 (c) of Article 40 of the United States
Draft Charter reading: "agreementsor understandings
concerning railway transportation, aviation, shipping and-
telecomunications services", into the text of Article 45,
42:2 (e) Page 20 I- '
* 1*
2. No titanding the foregoing peararaph, the Organization
may make recommendations to Members and to appropriate
tnter-governmeonta organizations concerning an7 features of
the ar nngem~ets referred to in paragraph 1 (b) of this Article
which may have the effect described in paragraph 1 of
Article 39.
.. . E/PC/T/C.6/98/Rev.1
Page 21
COMMENTARY
but in the absence of general agreement decided against re-
insertion. Certain delegations desired to see services
included; others desired to see them partly or wholly
excluded. The Committee felt that the matter was one of
substance going beyond its competence and decided to leave
it for consideration at the Second Session. The United Kingdom
delegation expressed itself in favour of the complete
exclusion of services.
2. The delegate for Chile proposed that if Article 45,
paragraph 1, sub-paragraph (c) were re-inserted, it should
read:
"Inter-governmental agreements under the sponsorship
of the Economic and Social Council of the United Nations,
the International Trade Organization and other specialized
agencies concerning railway transportation, aviation,
shipping and telecommunications services". |
GATT Library | wb924xp7360 | Report of the Drafting Committee of the Preparatory Committee of the United Nations Conference on Trade and Employment | United Nations Economic and Social Council, February 20, 1947 | United Nations. Economic and Social Council | 20/02/1947 | official documents | E/PC/T/C.6/98 and E/PC/T/C.6/98-103 | https://exhibits.stanford.edu/gatt/catalog/wb924xp7360 | wb924xp7360_90230179.xml | GATT_151 | 3,479 | 23,277 | United Nations
ECONOMIC
AND
SOCIAL COUNCIL
Nations Unies
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED.
E/PC/T/C .6/98
20 February 1947
ORIGINAL: ENGLISH
REPORT OF THE DRAFTING COMMITTEE OF THE PREPARATORYOQTT OF FM -RIEWYMY
COMITgE F FERENE; 'VITRIT AND EMP NYMENATNS CONT=CE MADE M) M
CHAPT
MSRACICTESISS PW CTI=C
1. The text of Chapter VI as redradfted by thmme rafting Coittee
appears in docT/tuments E/PCCE.6/W.66 and /PC/T/C.6/W.79, and as
rdfed bgal y the LeCe.1tiommng Suib-Citte, in this document. Page 2
CHAPTER VI
RESTRICTIVE BUSINESS PRACTICES I - I
Article 39
ai@ ~b~rdsiictBusine~ve ra]IS:ssPxues
1. Members shall take appropriate measures,, individualh org trouh
tganhe Orizaortion in both ways, to prevent business practices affecting
ninterational twrade hich restrain competition, limit access to markets
or foster monopolisticr contol whenever such practices hhamve arful effects
on tphe exansion of production and trade and the maintenance in all
colmies of high levels of real income or impair any of the purposes of
the Oranization as set forth in Article .1.
. . t . . . . . Page 3
COMMENTARY
CHAPTER VI
RESTRICTIVE Business PRACTICES ISS PRACTICIM.
TSGiM C OMS
1. The delegates of Birazil, Chle, Cubna, Inkdia and South Africa
sustained their reservation from thee First Sssion of the
Prepammratory Cainst oiettee ag t th exclusion of services from
the purviewI of Chapter V. The delegate of Cuba went on record.
with the opinion that services fell under the terns of reference
of the Pmreparatory Comittee and that in this respect there was
no necessity to request a ruling of the Economic and Social
CoUuncil of the nited Nations.
2. The delegates dfor Brazil an Chile maintained the reservation
which their delegations had made at the First Session regarding
the compulsory registration of restrictive business practices
with thne Organizatio. The delegate for Czechoslovakia made a
similar reservation. The delegate for Brazil also maintained
the reservation which his delegation bad made at the First
,¢ ; , t .*P §. - ' ' . ':-1 -
Session, that the register of restrictive business practices
kept by the Orgzation should be Cive some degree of publicity.
SECMC ClMM
Aclecle
Policcesy T E Rerictive Business P'raciE
39:1 Brazil's rigi nal motion to include the mantion-f economic
, devellmentinvaasrah r1 vaas 1,et by the. woding of pa-agrh lw
iih, through ise rference to:al the purposes of the
Or iatio -as'se .foth in Article implicitly included
ecocandevelo*9mt - , -
- - $': ~ ...'x*-I .*-* " E/PC/T/C.6/98
Page 4
2. Without limiting the generality of paragraph 1 of this
Article, the practices listed in paragraph 3 below shall be
subject to in investigation in accordance with the procedure with
respect to complaints provided by the relevant Articles of this
haptei'r, i gthe Obranization considers them to have or to be
about tany o have am4 of the harmfulum effectenni=eratd ih
tra.'a 1 of this Article, whenever
(a) they are engaged. in or made effective by one or more
j'ate commercial enterprises or by'acombination, agreement
or otlr arrangement betwemmeen ccrcial enterprishees, wiher
between privammte coerclal enterprises, between public
commercial enterprises, (i.e., trading agencies of governments
oer eises ntrwhprnesnerzi;c th^re is effective public control),
n ±va betne~rubi'e adm.piic cometerprrcial endises; an.
(bmm )siuch coercal enterprises; individually or collectively,
possess effective control ofong trade am a ncuunmber of otries
imore n one or e products.
3 The practices refegrred to in pararaph 2 of this Article are
as follows: E/PC/T/C.6/98
Page 5
COMMENTARY
39:2 1. The arrangement of the text of paragraph 2, using the same
wording as the London draft, has been changed in order to improve
the style.
2. In the first sentence of paragraph 2 the words "in accordance
with the procedure with respect to complaints provided by the
relevant articles of this Chapter" have been inserted on the
motion of the French delegate in order to make it clear that
the investigation procedure provided for in Article 40 should
only follow upon a specific complaint in accordance with Article
40, and not as a consequence of studies undertaken by the
Organization in accordance with Article 41. The Drafting
Committee was not certain whether this addition did not
constitute a substantive change of the original text, by limiting
the authority of the Organization to investigate restrictive
business practices on the Organizationts own initiative. The
Committee. decided to include the sentence but to refer the
question of the substantive change to the Second Session of the
Preparatory Committee.
39:2(a), 3. The term "public control" has been substituted for the term
"government control" to clarify that enterprises under the control
of subordinate public bodies, such as municipalities and others,
also fall under this sub-paragraph.
T- he delegates of, China and Brazil reserved their position
v th-egardo t&the inclusion of public commercial enterprises
in' this su-grapyra h.-
.. E/PC/T.C. 6/98
Page 6
CHARTERtbL,.; :, E
prices or terms or conditions to be observed - n ; ^ - xw-uglons-to be obsei~i ix
" oduct; , , < d
*.>^<C ;* jt~~~t p*se.~ fr)-=ww9 etarri"3.;tarel marke
. ;- . , f~ usnees activity, I at~atI<.dtIdiv~in
s -.<1 -+. , ,,trereket 03 Sord er4.talli*, n5ocating'I
V s 1 t~t +¢wt~qw~a tior-fix~ calo -arc s
t:< *- _ ; s(c},d8<;.6:~ing5Ql~t;>P3;46w~r~e8 hether by.
(i ]ieng rodctionL or -:Ui> wVctlon qu
ment of t(ehn . gyj tpqln thic o. el to coloB
npatented;or st.~Whether ;stet O oj
patents, trade marks or x -E~~~~~rFX i... inetceg the use of trade =rk or,
f:: - 4 i , o. mattersct R p1g.t-the scf the
ions of production,S~~~~~.~u tat, or, to X< .......9O uc, in,
. e-.Ke.*wh nr rot ekl,.et ,sub ct 4or
e..~~~~~ ih are f 'th
~~~~~~~~~~vt , ,. Rowse,.. l ~£.oeences
for(a) arxge.,if.-.itcrsqqu -l~A beort~ed
onference requested by2vot; ,*, ~~~~~~~~~~....qcm f. eraMeraested b
vch heave or are about. o,.aP..jhftjt-dcscbc I
pearap 1 of Article 39;.
r.,
.. E/PC/T/C.6/98
Page 7
OMMEN ARY~~TPIP
)39:3(c1. Th r e newordlg of this sub-paragraph was approved, to meet a
reservation ona the prt of Belgium which had claimed. at the
Trst Session -f the Preparatomory Ccittee that boycotts
constituted not a specific practice but only a special case
of dmiscrIinatIon.
39:3(e) 2. w The ords "or dpevelomwent" ere added to the text on the
suggestion of the Secretariat.
39:3.(f) 3 The w"ordsh of te authorized grant were added on the
motfion o Canada, so as to clarify the wording.
4. The delegarte fo the Netherlands maintained. his reservation
frmtFhe 7'st Session regarding the technical character of this
sub-paragraph.
Prooedure wiRth espect tomp Colaints and Conferences
ERGMU OCMENTSD
1 T.heL odnon draft of this Article was arranged in lettered
paragraphs and, in order to make the editorial. arrangement of
his articl econform, to the arrangement generally adhered to
throughout the Charter, the Drafting ommCittee arranged the
r~tilcein t onumbeerd paragaphs and lettered srbu-paragraphs.
. The delegate for the NeM.tio-- strlandir maitaine. the preservation
gation had made at the First Session regarding regardnbb~eto-& h iB eso regarding the
iereoe os plazit tothe inn tcal Cou~rt of Julsce.
3. An Australian _arraneeent and -prtial redraft of Article ,4
vs refez.d to the Second Session of the Preparatory Committee. E/PC/T/C.6/98
Pege 8.
CHAPTER
(b) consider each witten complaint submitted by any Member
or submitted with the authorization of a Member by any
affected person, Orgaization or business entity within that
Member's jurisdiction, Oiim ng Claaii thpr Particular Iwactices
exist which have orh are about to ave the effect described
in psxsph I ofAraticlees 39, end roacre the minimum
inrreaon nto be iZclded in such complaints;
sxcd)conie and. equest eamch Menncbnr coc~e, to sfurncjihsuoh
aInfoxton as the Organizatmay ioxx deem necesscaryin inludg,
adfon or m~i=ordomatomma cfr cerialensterprses within its
.ciso~ itnand.n dtei± trmine whether further irnvstigonatimA E/PC//T/C.6/98
Page 9
40:1(b) Specific Comments
1. The word permission" was changed to authorization" to meet
the observation of the French delegation that the member states
would have to accept a certain amount of responsibility and
acquiescence (French: "assistance") for private complaints, since
the procedure following such complaints involved an international
organization and sovereign governments. More "permission" is
insufficient because it would. Involve no more than a kind. of "visa"
The United Kingdom delegation, seconding this view, susggested.
the following formulation: "consider each written complaint
submitted by a ember on its own behalf or on behalf of any
affected person, organization or business entity, within that
Member's Jurisdiction". The Drafting Committee decided to retain
the London text, merely substituting the word "authorization" for
"permission", because the acceptance of responsibility on the part
of government would constitute a substantive change from the
London text, by, narrowing down the right of private persons and
organizations to file compiaints with the Organization. The
Drafting Committee decided to refer this Issue to the Second.
Session of the preparatory Committee and to add the observation
that in case of a chage in the text restricting the right of
private persons to complain to the Organization it would also be
necessary to restrict the right of private organizations to appear
before the Organization under Article, 40, paragraph 1, sub-paragraph
2. The Draftinmm Cocittee wishedto .state that is itm Opinion it
would be ofne o the f irststask. of thgae Ornizatioon, nce a
ccpla hadintileen receiv ed,-to aoicjrag those. Members for
ormation within if a v r.thin whose Jurisdiction the person or business entity
ale jd± ingaged in the restrictive business practice was
operating E/PC/T/C.6/98
Page 10
(d) if it considered that further Investigation is justified,
.... notify all Members f eac: osch.icmiplatnt request the
..-cplant or any Member to proviindesuch formation relevant
,to ho complaint as the Organwillzation i deemnecessary and
conduct or arrange for hearings provided. that any Member and
,the parties Jlleged gaged to have e c4 in the practice shall
, ve th.oportunity tosu be haeangrd. at ch heris.
.;rma( o reeu' all inftidcn available n. ot ermine whether
th-jctico in question have or are about to have the
effec'oecribod.i pararaleph 1 of Artici 3,
2, The Or~nization shall - -
(a) report fuiy to all Members its determination reached j
and the reasons therefor; if iht finds that the practices ave
. had for are about to ve 7 hthe effect described in paragrap
1 of Article 39, it shall' equest each Member concerned to
take every possibuale action to prevent the continnce or
recayurrencme of the practmbices, and m recomend to the Meers
*. concerned remedial measures to be carried. out in accordance
with their respective laws and procedures;
(b) request a3.1ers concerned.to eport fully the action
tho have taken to achieve these results;
(ca x-e and. pulish, as soon as possible after enquiries
have been ovisio o fi allnally- losed., reports on.
complaaints dealt with under pargraph 1 (d) of this Article,
Ebing fiuglly its decisions, findr. or other conclusions,
dthe reasons therefore an action awhich the Organization hs
recommended tPo the Mebereconcerned; fovided-that
. (i) pblicioil of such reports or any portion thereof
. may be thheld if it deems this course justified;
. Pv . ........... :and .
(ii *he Organization shell not, if ' Membr so requests, E/PC/T/C 6/98
Page 11
COMMENTARY~- ^ :'' - ' O40S2AY : ;.;..
m4,l(e) t3. The Mrft"in.I otmitee. Iser"..the Words 'orare about to
h~tffiQ tU text mofe thi -sb.-pararaph in order trask the
te xt cons istent with thewording of-rticle.9, paragraph 2.
4j2va) ee delegations obected to the insertion of the clause
"or are about to have" In this paragraph because they considered
such an insertion to contain a substantive change by increasing
.,, *.* *- **.
the authority of the Organization under this paragraph. The
.
Committee consequently put the p3ze in this context into square
bracLets and referred the decision On the issues to the Secoad
Session of the Preparatory Committee.
. . . . .
- Th words 'proviinll or- finallyclose" nire substuted
for the word "completed" to clarify that the Organization,
according to the circumstances of the case, would not always be
obliged to complete its enquiries; but if its findings warranted
-. such proceed could tporariy discontinue investigations.
4o2(c) (i) 3. For reasons of better drafting, the clause was sub-divided
into clause (J and (iij and in (ii), the'words "to any person"
. - * . . - ,
were deleted to clarify that in the case of (ii) such information
should also not be divulged to organizations other than individual
persons. E/PC/T/C.6/98
Page 12
CHAPTER
disclose confidential information furnished by that
Member which would materially damage the legitimate
business interests of a commercial enterprise.
(d) report to all Members and make public if it deems
desirable, the action which has been taken by the Members
concerned to realize the purposes described in paragraph 9
. (a) of this Article. .
... . Article 41
-. :Stdies-:Ielatinsg to Restrictive uinesv jPractices
1. The Organization may
(a) conduct studies, either on its own initiative or at the
request of any Membcr, or of the United Nations, or of any
specialized agency brought into relationship with the United
Nations, relating to
. . * : ,..r...f ................\
(i) types of restrictive business practices in
iiernational trade;
(ii) conventions, laws anhprocedures concerning for
example incorporation; command registration,
investments, securities, prices, markets, fair trade
practices, trademarks, copyrights, patents and the
exchange and development of technology, insofar as
they are relevant to restrictive business practices;
. : . . . .
(b) request information from Members In connection with such
studies.
2. The Organization may
(a) make recoG=dations to Members concerning such conventions,
laws and procedures as are relevant to their obligations under
~~ts itterr;
(b) arrange conferences for purposes Q general consultation on
any matters relating to restrictive business practices. E/PC/T/C.6/98
Page 13
COMMENTARY
Article 41
Studies Relating, to Specific Business Practices
General Comments
1. Th L Tonnoa draft of this Articl avwsaeargnSed in lettered
rpaagrhaps and in order tmo ake the editorial aanremrnget of isth6
article conform to tarrhe angement Generally adhered tho troughout
the rChater, the Drafting Comittce arranged the Article into
ntired paragraphs and lettered sub-paareGaphs. Page 14 .
Article 42
Obltgation of Members
1. .In, order to ipl ement thepyrecee.ing Articles in this
Chapter, aech Mmeber stall.
(a) take all possible steps by legislation, or othewrise
toe sunre that Private and public commerical enterprises
withn i i t,jurisdiction do not ge,age in practices which
have the effect described in paragraph o1 f Article 39;
(b) tako lfulest account ,of the organization's
determinationsr,q esuets and rommecendatison made under
paraagaph 2 (a) of Article 40 and. determine appropriate
action. in accordance 'with itss ystem. of law and economic
goranization to prevent within its jurisdiction the
continuance or recurrence of any practices which the
organization ndfi to have ha[d or to be about to ha]ve
the effect described in paragraph 1 of Article 39.
2.. It sl;hl further
(a)s etabsled procedures to deal with complaints, conduct
invtegsiatlonspr, epare information and reports requested.
by the Orngaization, and. generally assist in pvreenting
practices which have the effect described in. paragraph I.
of Airtcle 39, these measures to be taken In accordance
with the particular system of law and. economic
organization of the country concerned;
(b) conduct such investigations as may be necessary and.
practic<-able to secure information requested. by the
OrGanization or to prevent practices which have the effect
described inparagraph I of Article 39;
(c)urn fish to the Organization, as promptly as possible E/PC/T/C.6/98
Page 15
COMMENTARY
Article 42
Obligations of Members
General Comments
1. The London draft of this Article was arranged In lettered
paragraphs and in order to make the editorial arrangement of
this article conform to the arrangement general adhered to
throughout the Charter the Drafting Ccmmittee arranged the
Article Into numbered paragaphs and lettered sub-paragraphs.
42:1(b) Specific Comments
^1. The ramftig_ ommrittee decided to insert the h7as8e "or
to be about to have" in ,quare brackets in the text because the
came doubts with reward to substance prevailed as regarding the
insertion of this phrase in Article 40, pargraaph 2 (a). E/PC/T/C.6/98
Page 16
and to the fullest extent practicable, such information
as is requested by the Organization under paragraphs 1 (c),
(d) and 2 (b) of Article 40 and under paragraph 1 (a) of
Article 41 provided that the Member
(i 7) may v hitbdol& confidential ormat==tion relating
to naItnstial security; or
(ii) on Propner otification to the Organizatiomn, ay
withhold information which is not eetssnial to
thega Ornization in undakerting an adequate
invigaestntio and which, if disclosed, would
rterially damage the legitimate business
ientsrets of a mmcoeial rcl enterprise. In
notifying the Orgaaniztion that it is withholdind
iman-r~ion pursuant to this clause, the Member
shall indicate the general character of the
irnfomoatin withheld;
(d) report, as requested by the Organization under
paragraph( 2 b) of Article 40, the action taken,
independently or in concert with other Members, to
implement omrecmendations made by the Organization under
pgararaph 2 (a) of Article 40, anind, cases in which no
action is taken, to explain to the Organization the
reasons thereford an discuss the matter further with
the Organization if requested to do so; E/SC/T/c.6/98
Page 17
COMMENTARY
2(c)(ii) 1. This new clause was inserted to provide for the adequate
protection of legitlmate business interests of commercial
enterprises aaaist damaging disclosures.. Upon the notion of
the United Kingdom, Committee III of the First Session, in its
last meeting, had. agreed to incorporate such a proviso Into the
text of Chapter VI and the clause newly inserted under (ii)
implements this decislon.
2. The Belgian, French and Luxembourg delegations recorded a
reservation aGainst the phrase "which is not essential to the
Organization in undertaking an adequate investigation", as a
substantive departure from the agreement reached at the
First Session.
This new clause was in
. E/PC/T/C. 6/98
Page 18
(e) take part in conferences upon the request or the
Organization in accordance with paragraph 1 (a) of
Article 40 and. paragraph 2 (b) of Article 41.
Article.4
Supplementary Enforcement Arrangements.
1. Member may co-operate with each other in prohibitive,
preventive ,*-:or other measues -for the purpose of making more
effective r anyemedial ordser ised by a duly authorized agency
yof mbn Mener i furtherance of the objectives of this Chapter.
2. Members participating in or intending to participate In
such co-operative action shall notify the Organization..
i"' N _Article 44 .
Continued. Tfectiveness of Domestic Measures
against Restrictive acBusiness' Prtices
Any act or omission to act on the part of the Organization
shall not preclude any Member from enforcing any national
stature or decree directed towards preventing monopoly or
restraint or trade.
Article 45
Exceptions to the Provisions or this Chapter
1. The obltigations in his Chapter shall not apply to
(a) inter-govmernmental comodity arrangements meeting the
requirements IIof Chapter V;
(b) the international arrangements excepted in Article 59. E/PC/T/C.6/98
Page 19
42:2(e) 1. The Drafting Committee inserted a reference to
paragraph 1 (a) of Article 40 because it believed that the
intention of the First Session had been to include in this
paragraph conference under Article 40 as well as conferences
under Article 41, and that the mission of a reference to
Article 40 had been a mere drafting mistake.
2. The United Kingdom reserved its position on the insertion
of the reference to paragraph 1 (a) of Article 40.
Article 45
Exceptions to the Provisions of this Chapter
45:1 1. The Drafting Committee examined the desirability of
re-inserting paragraph I (c) of Article 40 of the United States
Draft Charter into the text of Article 45. One Group of
untries, iesespecia llyBeumgin, Brazil, Cahin and India,
expressed the view that thsse nertion of this -subparagraph E/PC/T/C.6/98
Page 20
CHAPTER
2. Notwithstanding the foregoing paragraph, the Organization
mayw make recommendations to Members and to appropriate
inter-governmental organizations concerning any features of
the arrangements referred to in paragraph I (b) of this Article
which may have the effect described in paragraph 1 of
Article 39.
- .. -. .
. E/PC/T/C.6/18
Page 21
would constitute a substantive change of the London draft,
since the question of services had been exhaustively debated
in London without reaching agreement. Another group of
countries, specifically Australia, Canada and France, held that
the question of inclusion of services in the scope of the
International Trade Organization was a substantive issue to be
decided at the Second Session of the Preparatory Committee;
however, the Drafting Committee under its terms of reference
ought to draft provisions on the issue of which specific
services would be excluded from this Chapter, even if services
in general should fall within the scope of the Charter. The
United Kingdom delegation expressed itself in favour of the
complete exclusion of services.
2. The delegate for Chile proposed the re-insertion of the
following clause as Article 45, paragraph 1, sub-paragraph (c):
"Inter-govermental agreements under the sponsorship
of the Economic and Social Council of the United Nations,
the International Trade Organization and other specialized
agencies concerns railway transportation, aviation,
shipping and telecommunications services". |
GATT Library | xd351qq4309 | Report of the Drafting Committee of the Preparatory Committee of the United Nations Conference on Trade and Employment | United Nations Economic and Social Council, February 24, 1947 | United Nations. Economic and Social Council | 24/02/1947 | official documents | E/PC/T/C.6/101 and E/PC/T/C.6/98-103 | https://exhibits.stanford.edu/gatt/catalog/xd351qq4309 | xd351qq4309_90230185.xml | GATT_151 | 2,311 | 15,407 | United Nations
Nations Unies I
RICTEDcTim
ECONOMIC
AND
SOCIAL COUNCIL
CONSEIL
ECONOMIQUE
ET SOCIAL
ElpC/T/101/iol
24 February 1947
ORIG:ENGLISHISH
REPORT OHE TRZ DINAFCOMMKTTEE EE OH TPREPARATORY COMMITTEE,
OF HE UNITED NATIONS CONFERECE OON . TRAE.AND MPLOYMENTT
HAPTER IIV
ECONOMIC DVELOPMENTE Nwr,
The text of Chapter IV as redrafted by the Dgraftmin6 Comittee
a pearsm in docEmentT5CPC/t/c.6/W. 5 and. as redrafted b ethe ILgal
draftinCommib-OoSittee in docEment B/PC/W/C../w.73, E/PC/C/T/C.6/101
Page 2
CHAPTER IV
ECONOMIC DEVELOPMET
Article 9
Importance of Economic Development in Relation to the
Purposes this Charter
The Members recognize that the industrial and general economic
development of all countries, and paiticularly of those in which resources
are as yet relatively undeveloped, will improve opportunities for employment,
enhance the productivity of labour, increase the demand for goods and
services, contribute ultimately to economic stablity , expand international
trade, and raise levels of real income, thus strengthening the ties of
international understanding and accord.
Article 10
Development of Domestic Resources and Productivity
Recognizing that all countries have a common interest in the
productive use of the world's human and material resources, Members
shall take action designed progressively to develop industrial and other
economic resources and to raise standards of productivity within their
jurisdictions through measures compatible with the other provisions
of this Charter.
Article 11
Plins for Economic Development
1. Members shall co-operate with one another and with the Economic
and Social Council of the United Nations and appropriate inter-
governmantal organizations in promoting industrial and general economic
development. E/PC/T/C. 6/101
iCnelti -teI . k':: z.
widespread industrial 1 -ipesogati4sr,~
ilityhanced .eQCqXfl tp:.Uty7 This additiuonstresses the time factor byt~ b
pointing out that the desired degree of stability can only be attained
ghiou&h a combination of development and general readjustment measures.
Article 10
I. This Articl was. transferred from, ChaIII r I, as explained in the
General Conments on that Chapter.
2. The w"ords umann and material" were inserted before "reeourcos" so as to
stress that the productive use of the worlds resources covers material
sourf s o:Z wealth derived both from mature and production on the one hand
and resources of manpower and human skills on the ther.
Article 11
Parag1aph I of the draft approved at the First Snssioz has been deleted
end its substance transferred to tw e nevArticle 10. Page 4
2 . [The Organization, upon the requeet of any Member, shall advise
such Member concerning its plans for economic development and shall, within
the competence and resources of the Organization and on terms to be agreed,
provide such Member with technical assitance in completing its plans and
carrying out its programmes or arrange for the provision of such assistance]
The Organization may ,in accordance with principles of t his Chapter thi s
tion lt. vithers and.zaIpr[priate mernlatioa. toeMemb and pperrzate .
t .i - mthe encouragement of theelating-.to h Q;C the
.nd strial.end.. gfnmember economic Sdevelopment .ot .ber- countries
, .* , . .. r'
. ' E/PC/T/C .6/101
Page5
11:2
1. The words "on terms to be agreed " were added so as to meet the question
of the payment for assistance received.
2. The possible sources of such assistance were broadened by stating that
the organization might "arrange for the provision of such assistance", thus
leaving the way open for Members to avail themselves of other means of
international co-operation in this field.d..
3he * f irst sentence of this agraphaph hadebeplaceded. between bket-kts
at the First Session pending the codeil-rat ionby the Ecmic ilo anociac1il
Council of a specifrequest st made by the Preparatorym Comittee in respect of
the international allocation ofnctionions related to economic deopme61ont.
Tie request waos cnsred &d by the ncouomand Em pleoymntm Comission of the
omiconn and Social Coilc 1 at its fir t 'session mro= 20 Jaruxay to
5 February47911. In irep?oaort to the Eoncmid and Social Counciletho
miorission remecomnded that it was premature to attempt, at le st'at this
ge 56e, to mako agri id.vdirisiof oZunf-=ctions not et' alloca ed. in tfieldbld
'oconomicnic devpment ..` Tchme omission did not see any reason at present to
suggest that parapraPhof 6or' Aticle 11 of the London Charter should be
omitted, provided that careful consideration were given by the Conceroe on
Trade and Employmeno t6eth finial formulation in the light of the agreed
purposes and functioos ef the Organization, rea:ing in mind the
responsibilit es' of existing Specializeg A7enciesdant the terms or reference
eotablidhei by the Council for the Submmismdosicn on Economic Development.
It was deci ed. by tDe trang iSmm Coittee that the first sentence or this
paragraph should remain betweeqaareuer brackets pending consideration of the
question by the Economic and Social Council at its Fourth Session. It was
suggested that amembersor- of tDraftingingm Comittee should keep in touch with
thegir oner1me tsa arding ing the continued work of the Economand =n Emploment
miCovio .ad its sub-comisionori and the Secretariat was instructed to
follow these devee6m~entsandM to report to the Second Session accordingly.
4. Anew - sentence which wse incorporated to the effect that the Oganization n
may, on its own initiative, conult t withaend make eocmmmondations toMemeberss
and plpropriate inter-govenieantal organizations, represents a traferr from
rtticle 61 (R) ()I as drafted at the First Session. E/PC/T/C .6/10101
Peag 6
Articl e 12 .
Mceans of Eonlommic Deveopent
ssive ~eecsiomic ,evelopment is omezt. . depon endequater sadegyat supplies
of capitml fundl .ateria>s , equipment, advanced. technology, trained workers
and mantagerial silingll. Accordy, the Members shalnl impose o unreasonable
tsA dthat wo y .ul prevent, other Members fning any suchiing aruc
:faoi itis fQr.thmic ecvnlooIc .de7epment and opearata han accordancecordance
-. . . . ' ,.: ". _.. ra.. . acC. rden.
vith rticle within the limits. .of their power, in providing. or arranging
for thQ provision of such facilities.
2. Each IMmber. in ts .tratment of other Members and of business entities
or perso s witli the jurisdiction of other Membera Vi.chsupply. it with
facilities for lits industrial and gszral economic .dvelopment, shal not
only carry out all r lsva=t international obligations to which it may be
sub acu hich it W undrtake pursuant to sub-paragraph c of Article 61
or otherwise but also shall in general take no unreasonable action injurious
to the interest of such ot'aembers, business entities or persons.
3. Any Membe=or with the authorization of a Member, any affected business
entity or person within that Member's jurisdiction, may submit to the
Organization a complaint that action by another Member is inconsistent with
its obligations 'nder this Article. The Organization may, without prejudice
to the application of Article 35, request the Members concerned to enter
into consultation with a view to reaching a mutually satisfactory settlement
and msy lend its good. offices to this end.
Article 13
Goveprmental Assistance to Economic DeveloEent
1. The Members recognize that special governmental assistance may be
required in order to promote the establisbment or reconstruction of particular
industries and tha t such assistance my take the form of protective .
........ ................. . . . .......
measures. At the same time they recognize that an unwise use of such
measures would impose ndue burdens on their own economies unwarranted Article 12
1. Paragraph 1 now in orates pa63:apbq 1, 2 anl 3 -of the. taxt approved
at the First Session, having regard to modifications introduced In Article 11.
2. It was felt that the additon of the words "any such" before. "facilities
for 0o-tiel3r economic 4elopment" v4 d ndiaomt iposny arT limiton~ the access to the
Delegati a be .
considered'as an alternative to the'eginning of tis pa'raa.p' :
"Any Member may on its own behalf or on behalf of any af-ected
business eztity...
2. A referrnre to the asp~ation of Article 35 (Ni?llication and,
- m ael±erhs been added.
. . .~~~~~ Page 8 .
restrictions on international trade and might ntcrease unnecessailyrli1
the difficulties of adjustment for the economies of other countries.;.
- -Ie aMmber in, the. iterest ofs . s3prgmr ame -oeconomic
elopmenpm t,.coners i .t. desirable to ado t .any protective measure
-which wo ld. confliwt ith a other provision oh tb s -Char ,rzi wr-vith
obligasion in which the Membher as assumed through negotiations. with
any other Member or Members pursuant Cto hap IV!te, it sl al Lso notify
the Organization and shall transmit to the Organization a written
statement of the considerations in support of the adoption of the
proposed meas ure. The Organization shall promptly inform those Members
whose trade would be substantially affected by the proposed measure and
afford thenm a optuniporty of presenting thevir siew. The Organization
ll then sbarmpPtly exmnin - the proposed measure in the lght oof the
provisions of thi sChapter and other relevant provisions of this harter,
the considerations presented by the applicant Member, the views
presented by the other Members Which would be substantially affected by
the propoposed measure and such criteria as to productivity and other
factors as it may establish, taking into account the stage of economic
development or reconstruction of the applicant Member.
(b) If, as a result of its examination pursuant to sub-paragraph (a),
the Organization concurs in any measure which would be inconsistent
with any obligation that the applicant Member has assumed. through
negotiations with any other Member or Members pursuant to Chapter V or
which would tend to nullify or impair the benefit to such other Member
or Members of any such obligation, the Organization shall sponsor and
assist in negotiations between the applicant Member and the other
Member or members which would be substantially affected, with a view
to obtaining substantial agreement. Upon such agreement being reached
the Organization may release the applicant Member from the obligation in
question or from any other relevant obligation under the Charter, subject E/PC/T/C .6/101
Page 9
13:2
1. The Delegate for New Zealand maintained the reservation made by the
New Zealand Delegation at the First Session (see Section I, paragraph 3,
page 8 of the Report) regarding paragraph 2 and suggested that wording similar
to. that contained In paragraph 3 of Article 12 should be substituted for the
wording used thus introducing a simpler procedure for complaints and
consultation.
2. The Delegate for Cuba maintained the reservations made by the Cuban
Delegation at the First Session (see Section I, paragraphs 3 and 4, page 8 of
the Report) regarding paragraph 2. He felt that his reservations were covered
by the alternative text submitted by the Indian Delegation,
3. The Delegate for Labanon proposed that further sub-paragraph be added
to.paragraph 2 and submitted the following text in this connection:
(a) Members recognize that the development of industry in small nations
is hampered by the lack of a sufficiently large market for manufactured
goods. Consequently the Organization shall give the most favourable
consideration to any proposal for preferential tariff arrangements
presented to it by small Member nations belonging to one economic
region, aiming at the development of industry in that region, with a
view to releasing them from their obligations under Chapter V.
13:2(1)
The Delegate for China reserved his position regarding the phrase "subject
to such limitations ... Members concerned" in sub-paragraph (b) of
paragraph 2.. -
~~ .Y - Page 10
to such limitations as may have been agreed upon in the negotiations
between the Members concerned such further limitations as the
U111 F I ). >-mkq did~loc If Riias6 *Sa *
for isnvuubsgr1phrt - b ht ioul& -i &n te rziy * -EhU$
provision of thls Charter, the Organization may releaser- it'`pjiN t
t--ita --on& Ss'!lthO Qrdinszitton maW, ii~ose-
r;*e.-. -5he.?Delegtv:itr.Ihdia.idth*:suppor:ith Xf >t~it or hna;
Cuba and Nev zoala ubmttd t
Members agree that they will not impose new or intensity existing
quantitative restrictions on imports for protective purposes except
when such restrictions are no more restrictive in their effect than
The Organization may at time invite -ay-Member which is imposing
quantitative restrictions imports under paragraph I to consult
with it about the form and extent of the restrictions and shall fl
te nvi Member substantially tEi srestriction
to, onsult accordingly tIIBaW thirt Eaws; ueilbdt £*Y0&Th H <-;
in such discussions when so invited. The Organization siall.
*.sXi - 'tva~: y sof its Intttios v 2V ; - ti' t its
3. Any Member applying or intending to apply quantitat4-ve Riltions
on imports under paragraph 1 may if it so desires consult with the
Organization vith a viev to obtaining the previous approval of tbe
Organization for restrictions which it intends to maintain or to
impose or for the maintenance or imposition in the future of restrictions
under specified. conditions. As a result of such consultation the E/PC/T/C.6/100
Page 11
Organization may approve in advance the maintanance, imposition, or
intensification of import restrictions by the Member in question inscofar
as the general oxtent, degree and duration of the restrictions are
concerned. To the extent to which such approvaI has boon given, the
action of the Member imposing restrictions shall not be open, to
chalenge under pararaph 4 insofar as it relates to action taken in
conformity with paragraph 1.
4. Any Member, which considers that any other Member is applying import
restrictions under paragraph 1 in a manner inconsistent with the tors
of that paragraph, may bring the matter for discussion to the
Organization. The Member imposing restrictions shall then participate
in the discussions of the reasons for its action. The Organization
shall, if it is satisfied. that there is print facie case that the
complaining Numbers interests are advorsely afftctod, consider the
complaint. It mny then recommend the withdrawal or modification of
restrictions which it determines are being applied in a manner
inconsistent with the terms of paragraph 1. If restrictions are not
withdrawnn or modified in accordance with the recommondations of the
Organization within sixty days, such other Members shall be released
from- such obligations incurred under this Charter towards the Member
applying, the restrictions as the Organization may specify. |
GATT Library | qn250sy6461 | Report of the Drafting Committee of the Preparatory Committee of the United Nations Conference on Trade and Employment | United Nations Economic and Social Council, February 24, 1947 | United Nations. Economic and Social Council | 24/02/1947 | official documents | E/PC/T/C.6/100/Corr.1 and E/PC/T/C.6/98-103 | https://exhibits.stanford.edu/gatt/catalog/qn250sy6461 | qn250sy6461_90230184.xml | GATT_151 | 169 | 1,142 | United Nations
Nations Unies
ECONOMIC
AND
SOCIAL COUNCIL
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/C .6/100/
Corr.1
24 Februery 1947
ORIGINAL: ENGLISH
REPORT OF THE DRAFTING COMMITTEE OF THE PREPARATORY COMMITTEE
OF THE UNITED NATIONS CONFERENCE 0N TRADE AND EMPLOYMENT
CHAPTER II
/CHARTER E/PC/T/C. 6/100/Corr. 1
Page 2
Article 2
1. The original Members of the Organization shall, be those countries
represented at the United Nations Conference on Trade and Employment whose
governments accept this Charter by ............194..or, in the event
that this Charter has not entered into force by that date, those countries
whose governments agree to bring this Charter into force pursuant to the
.
proviso to paragraph 3 of Article 88.
2. Subject to the approval of the Conference, membership in the organizationn
shall be open to other countries whose governments accept this Charter.
3. The Conference shall establish procedures which will open. a membership
in the Organization to the United Nations on behalf of the trust territories
for which the United Nations is the administering authority. |
GATT Library | ck117vt1664 | Report of the Drafting Committee of the Preparatory Committee of the United Nations Conference on Trade and Employment : 20 January to 25 February 1947 | United Nations Economic and Social Council, March 5, 1947 | United Nations. Economic and Social Council | 05/03/1947 | official documents | E/PC/T/34 and E/PC/T/33-E/PC/T/34 | https://exhibits.stanford.edu/gatt/catalog/ck117vt1664 | ck117vt1664_92290038.xml | GATT_151 | 58,740 | 375,473 | United Nations
ECONOMIC
AND
SOCIAL COUNCIL
Nations Unies
CONSEIL
ECONOMIQUE
ET SOCIAL
Restricted
E/PC/T/34
5 March 1947
English
Original: English
Report of the
Drafting Committee
of the
Preparatory Committee
of the
United Nations Conference
on Trade and Employment
(20 January to 25 February 1947)
Lake Success
New York TABLE OF CONTENTS
Page
PART I. Introduction . .................................... I
PART Il. Draft charter and commentary.
Chapter I. Purposes ............................................ 3
Chapter Il. Membership .......... ; 4
Chapter III. Employment, effective demand and economic activity. 5
Chapter IV. Economic development. 7
Chapter V. General commercial policy ............................ 10
Chapter VI. Restrictive business practices .34
Chapter VII. Intergovernmental commodity arrangements .38
Chapter VIII. Organization .45
Annexure A. List of territories referred to in sub-paragraph (2) (a (ii)
of Article 14 ........
Annexure B. First Report of the Administrative Sub-Committee . 53
PART III. General agreement on tariffs and trade .
ANNEXES
I. Resolution regarding the appointment of the Drafting Committee. 81
2. Agenda of the Drafting Committee .81
3. List of delegates to the Drafting Committee ...... . . .................. 81 COMMITTEE OF THE UNITED NATIONS
CONFERENCE ON TRADE AND
EMPLOYMENT
PART I
Introduction
1. At its First Session1 held in London in
October and November 1946, the Preparatory
Committee adopted a resolution establishing a
Drafting Committee. The resolution, after stat-
ing that it was desirable that further drafting be
done on the basis of the work carried out at the
First Session of the Preparatory Commiittee and
before the commencement of. the Second Ses-
sion, directed the Drafting Committee, com-
posed of representatives of the members of the
Preparatory Committee, to meet in New York
from 20 January 1947 and to complete its prep-
aration of a report for consideration at the Sec-
ond Session no later than 28 February 1947. It
was resolved that it would be the function of the
Drafting Committee to prepare a Draft Charter2
or Articles of Agreement based upon the Report
and other documents of the First Session, edit-
ing for clarity and consistency the portions of
the text on which the Preparatory Committee
came to a substantial identity of views, prepar-
ing alternative drafts of those portions on which
there rernained a division of general views and
preparing suggested drafts covering such un-
completed portions as were referred to it by
the Preparatory Committee, together with such
explanatory notes and commentaries as the
Drafting Committee might consider desirable
and useful.
2. The Drafting Committee was convened at
the temporary headquarters of the United Na-
tions, Lake Success, New York, on 20 January
1947 and concluded its work on 25 February
1947, having held a total of twenty-nine meet-
ings. Representatives from all the members of
the Preparatory Committee attended, with the
exception of the Union of Soviet Socialist Re-
publics which stated that it was not in a position
to take part in the work of the Drafting Com-
mittee. Colombia and Mexico sent representa-
tives to obscene the proceedings, in which the
representatives of the Food and Agriculture Or-
ganization, the International Bank for Recon-
1 Whenever the words First Session or Second Ses-
sion are mentioned the First or Second Session of
the Preparatory Committee is understood.
2 Whenever the word "Charter" standing alone to
used in this Report, it refers to the Charter as
drafted by the Dratting Committee; when other texts
or the Charter ot the United Nations are referred to,
the full title is given.
By retaining the title of "Charter" the Draftlng
Committee did not intend to indicate that it ap-
proved or disapproved ot the use of this term. This
is a point which may need to be considered at a
later stage.
struction and Development, the International
Labour Organization and theInternational
Monctary Fund actively participated.
3. The Drafting Committee availed itself of
the Rules of Procedure of the First Session and
worked according to the following plan. An ex-
amination of the text of each Article of the
Charter drafted at the First Session was first
made in plenary session together with any
amendments introduced by delegates or sug-
gested by the Secretariat. During this examina-
tion a new text of each Article which had been
amended was established and reproduced by .he
Secretariat for second reading a few days later.
After each Article had been examined a second
time in plenary session, the text then agreed was
referred to a Legal Drafting Sub-Committee.
Finally all texts were again, examined when the
draft report was approved.
4. The procedure outlined above was fol-
lowed with most of the Articles of the Charter.
However, to deal with Articles for which no de-
tailed and generally agreed text had been es-
tablished at the First Session, the Drafting Com-
mittee decided to constitute at an early stage
of its work sub-committecs to prepare texts for
examination by the Drafting Committee at a
later stage. Thus, a Technical Sub-Committee
to prepare drafts of Articles 15 to 23 inclusive
and Article 37 was set up and an Administra-
tive Sub-Committee which worked upon Ar-
ticles 1, 2, 64, 68 and 72 to 77 inclusive. Apart
from preparing. a draft Charter, the Drafting
Committec was charged with providing a more
detailed draft of the General Agreement on Tar-
iffs and Trade, based upon the outline drafted
at the First Session. For this purpose a Sub-
Committee on Tariff Procedures was established.
Although the sub-committees were of restricted
membership, all delegates to the Drafting Com-
mittee were accorded the right to participate in
the proceedings of the sub-committees at any
time and frequently availed themselves of this
facility. In addition, in a number of cases, the
Drafting Committee established ad hoc sub-
committees to deal with specific points.
5. In view of the technical and detailed na-
ture of the work performed by the Drafting
Committee, all of its meetings were held in pri-
vate. The public, however, was kept informed
of the work being done by means of press re-
leases arranged by the Secretariat, which gave
a press conference as the close of the meeting.
It was agreed that the report of the Drafting
Committee should bc classified as a restricted
document, not for publication until such time
as the Preparatory Committee itself might de-
cide otherwise.
6. The officials of the Committees and Sub-
Committees were: Drafting Commiflee
Chairman: Mr. Erik Colban (Norway).
Vice-Chairman: Mr. B. N. Adarkar (India).
Adminstrative Sub-Committee
Chairman: Dr. G. Alamilla (Cuba).
Legal Drafting Sub-Committee
Chairman: Mr. A. Kojeve (France).
Tarif Procedures Sub-Committee
Chairman: Mr. B. N. Adarkar (India).
Technical Sub-Committee
Chairman: Mr. R. J. Shackle (United King-
dom).
7. Purely editing changes are normally not
mentioned in the commentary contained in Part
II of this Report. Square brackets have been
used to enclose working, the adoption of which
is left for future consideration. Reservations
made at the First Session and maintained at the
meetings of the Drafting Committee are re-
corded in the commentary.
8. Although the terms of reference of the
Drafting Committee did not require it to dis-
cuss arrangements for and procedures at the
second session, it was felt that the Committee
provided a convenient ground for further ex-
changes of views on this question between gov-
ernments. Accordingly, a discussion of arrange-
ments and procedures' was carried out and in-
formal agreements reached which it is hoped
will materially assist the members of the Pre-
paratory Committee in making their plans for
the Second Session.
2 PART Il
Draft Charter and Commentary
CHAPTER I. PURPOSES
Article 1
General Purposes
In pursuance of the determination of the
United Nations to create conditions of economic
and social progress essential to world peace, the
States party to this Charter hereby establish an
International Trade Organization through which
they will work for the fulfilment of the purposes
set out hereunder:
1. To promote national and international
action:
(a) Designed to realize the objectives
set forth in the Charter of the United Na-
tions and particularly in Article 55 (a)
thereof, namely, higher standards of liv-
ing, full employment, and conditions of
economic and social progress and develop-
ment;
(b) For the expansion of the produc-
tion, exchange and consumption of goods,
for the achievement and maintenance in
all countries of high and steadily rising
levels of effective demand and real income,
for the development of the economic re-
sources of the world, and for the reduc-
tion of tariffs and other trade barriers and
the elimination of all forms of discrimin-
atory treatment in international commerce;
(c) To avoid excessive fluctuations in
world trade and contribute to a balanced
and expanding world economy.
2. To further the enjoyment by all Mem-
ber countries, on equal terms, of access to the
markets, products and productive facilities
which are needed for their economic pros-
perity and development.
3. To encourage and assist the industrial
and general economic development of Mem-
ber countries, particularly of those still in
the early stages of industrial development.
4. To facilitate the solution of problems
in the field of international trade, employ-
ment and economic development through
consultation and collaboration among Mem-
bers.
5. To enable Members, by increasing the
opportunities for their trade and economic
development on a mutually advantageous
basis, to avoid recourse to measures which dis-
rupt world commerce, reduce productive em-
ployment or retard economic progress.
Paragraph 1 (b)
A number of delegates favoured the term
"stable" instead of "steadily rising".
3 CHAPTER II. MEMBERSHIP
Article 2
1. The original Members of the Organiza.
tion shall be those countries represented at the
United Nations Conference on Trade and
Employment whose Governments accept this
charter by 194 or, in the event
that this charter has not entered into force by
that date, those countries whose Governrnents
agree to bring this charter into force pursuant
to the proviso to paragraph 3 of Article 88.
2. Subject to the approval of the Conference,
membership in the Organization shall be open
to other countries whose Governments accept
this charter.
3. The Conference shall establish procedures
which will open a membership in the Organi-
zation to the United Nations on behalf of the
Trust Territories for which the United Nations
is the administering authority.
4 CHAPTER III. EMPLOYMENT, EFFEC-
TIVE DEMAND AND ECONOMIC
ACTIVITY
Article 3
Importance of Employment in Relation to the
Purposes of This Charter
1. The Members recognize that the avoid-
ance of unemployment or under-employment
through the achievement and maintenance in
each country of useful employment opportun-
ities for those able and willing to work, and
of a high and steadily rising effective demand for
goods and services is not of domestic concern
alone, but is a necessary condition for the ex-
pansion of international trade, for the well-
being of other countries, and in general for the
realization of the purposes of this Charter.
2. Members agree that, while the achieve-
ment and maintenance of effective demand and
employment must depend primarily on domestic
measures, such measures should be assisted by
the regular exchange of information and views
among Members and, so far as possible, should
be supplemented by international action spon-
sored by the Economic and Social Council of
the United Nations and carried out in collabora-
tion with the appropriate inter-governmental
organizations acting within their respective
spheres and consistently with the terms and
purposes of their basic instruments.
Article 4
Maintenance of Domestic Employment
1. Each Member shall take action designed
to achieve and maintain full and productive
employment and high and stable levels of ef-
fective demand within its own jurisdiction
through measures appropriate to its political,
economic and social institutions.
2. Measures to sustain employment and de-
mand shall be consistent with the other purposes
and provisions of this charter and in the choice
of such measures each Member shall seek to
avoid creating balance-of-payments difficulties
for other Members.
Article 5
Fair Labour Standards
Each Member, recognizing that all countries
have a common interest in the maintenance of
fair labour standards, related to national pro-
ductivity, shall take whatever action may be
appropriate and feasible to eliminate sub-stand-
ard conditions of labour in production for ex.
port and generally throughout its jurisdiction.
Article 6
The Removal of Maladjusiments in the Balance
of Payments
Members agree that, in case of a fundamental
disequilibrium in their balance of payments in
volving other countries in persistent balance-of-
payments diffiulties, which handicap them in
maintaining employment, they will make their
full contribution to action designed to correct
the maladjustment.
Article 7
Safeguards for Members Subject to External
Deflationary Pressure
The Organization shall have regard, in the
exercise of its functions as-defined elsewhere in
this charter, to the need of Members to take
action within the provisions of this charter to
safeguard their economies against deflationary
pressure in the event of a serious or abrupt de-
cline in the effective demand of other countries.
Article 8
Consultation and Exchange of Information on
Matters Relating to Employment
The Members and the Organization shall
participate in arrangements made or sponsored
by the :Economic and Social Council of the
United Nations, including arrangements with
appropriate inter-governmental organizations:
(a) For the systematic collection, analysis
and exchange of information on domestic em-
ployment problems, trends and policies, includ-
ing as far as possible information relating to na-
tional income, demand and the balance of pay-
ments;
(b) For consultation with a view to concerted
action on the part of governments and inter-
governmental organizations in the fild of gov-
enments and inter-governmental organizations
in the field of employment policies.
GENERAL COMMENTS
It was felt that Article 5 of the charter drafted
at the first session, referring to the development
of national resources and productivity, ought more
logically to appear in chapter IV "Economic De-
velopment'. Article 5 was, therefore, removed
from chapter III and inserted in chapter IV as
article 10. With a view to expressing more ade-
quately the sense of chapter III, the title was
amended to read "Employment, Effective De-
mand and Economic Activity".
SPECIFIC COMMENTS
Article 3
As it was felt that the title of Article 3 was too
narrow in relation to the contents of this article,
5 it was amended to read "Importance of employ-
ment in relation to the purposes of this charter".
Paragraph 1
(i) The importance of the achievement and
maintenance of useful employment opportunities
for those able and willing to work and of a high
and steadily rising demand for goods and services
was further stressed by adding the phrase "for
the well-being of other countries" after the words
"expansion of international trade".
(ii) It was felt that the last sentence of para-
graph 1 as drafted at the first session was intended
to set forth an undertaking, whereas article 3
otherwise merely contained a recognition of prin-
ciples. The sentence in question was, therefore,
deleted from article 3 and inserted in article 4
as paragraph 2.
Article 4
As explained above the last sentence of para-
graph 1 of Article 3 of the former text was incor-
porated as paragraph 2 of Article 4. In addition
to some minor drafting changes in this Article,
the words "other countries" in paragraph 2
were replaced by "other Members".
6
Article 5
(i) It was suggested that a reference to the
International Labour Organization, whose func-
tions include the problem of maintaining fair
labour standards, should be inserted in this article.
However, on the understanding that the main
work in this field should be carried out by the
International Labour Organization and that, most
members being also members of that Organization,
they would normally co-operate closely with it
in giving effect to the undertaking set forth in
Article 5, it was agreed that such a reference was
superfluous.
(ii) One delegate reserved his position with
regard to this article.
Article 7
One delegate, considering a serious decline in
effective demand as having effects in all respects.
comparable to those of a crisis of overproduc-
tion, was of the opinion that Article 7 should es-
tablish a procedure similar to that laid down in
Chapter VII with a view to meeting crises of
overproduction in certain commodities. CHAPTER IV. ECONOMIC DEVELOP-
MENT
Article 9
Importance of Economic Development in Re-
lation to the Purposes of This Charter
The Members recognize that the industrial
and general economic development of all coun-
tries, and particularly of those in which resources
are as yet relatively undeveloped, wiil improve
opportunities for employment, enhance the pro-
ductivity of labour, increase the demand for
goods and services, contribute ultimately to eco-
nomic stability, expand international trade, and
raise levels of real income, thus strengthening
the ties of international understanding and
accord.
Article 10
Development of Domestic Resources and
Productivity
Recognizing that all countries have a com-
mon interest in the productive use of the world's
human and material resources, Members shall
take action designed progressively to develop
industrial and other economic resources and to
raise standards of productivity within their jur-
isdictions through measures compatible with the
other provisions of this Charter.
Article 11
Plans for Economic Development
1. Members shall co-operate with one another
and with the Economic and Social Council of
the United Nations and appropriate inter-gov-
ernmental organizations in promoting industrial
and general economic development.
2. The Organization, upon the request of
any Member, shall advise such Member con-
cerning its plans for economic development and
shall, within the competence and resources of
the Organization and on terms te be agreed,
provide such Member with technical assistance
in completing its plans and carrying out its
programmes or arrange for the provision of such
assistance. The Organization may, in accord-
ance with the principles of this Chapter. con-
sult with and make recommendations to Mem-
bers and appropriate inter-governmental organ-
izations rclating to the encouragement of the
industrial and general economic development
of Member countries.
Article 12
Means of .Economic Development
1. Progressive economic development is de-
pendent upon adequate supplies of capital funds,
materials, equipment, advanced technology,
trained workers and managerial skill. Accord-
ingly, the Members shall impose no unreasonable
impediments that would prevent other Mem-
bers from obtaining any such facilities for their
economic development and shall co-operate in
accordance with Article 11, within the limits
of their power, in providing or arranging for
the provision of such facilities.
2. Each Member, in its treatment of other
Members and of business entities or persons
within the jurisdiction of other Members which
supply it with facilities for its industrial and
general economic development, shall not only
carry out all relevant international obligations
to which it may be subject or which it may un.
dertake pursuant to sub-paragraph (c) of Ar.
ticle 61 or otherwise but also shall in general
take no unreasonable action injurious to the in.
terest of such other Members, business entities
or persons.
3. Any Member, or with the authorization
of a Member, any affected business entity or
person within that Member's jurisdiction, may
submit to the Organization a complaint that ac-
tion by another Member is inconsistent with its
obligations under this Article. The Organiza-
tion may, without prejudice to the application of
Article 35, request the Members concerned to
enter into consultation with a view to reaching
a mutually satisfactory settlement and may lend
its good offices to this end.
Article 13
Governmental Assistance to Economic
Development
1. The Members recognize that special gov-
ernmental assistance may be required in order
to promote the establishment or reconstruction
of particular industries and that such assistance
may take the form of protective measures. At
Article 9
The word "ultimately" was inserted before
"to economic stability" with a view to avoiding
the misleading impression that widespread indus-
trial development in less developed countries
would lead more or less automatically to en-
hanced economic stability. This addition stres-
ses the time factor by pointing out that the de-
sired degree of stability can only be attained
through a combination of development and gen-
eral readjustment measures.
Article 10
(i) This Article was transferred from
Chapter III, as explained in the General Com-
ments on that Chapter. the same time they recognize that an unwise
use of such measures would impose undue bur-
dens on their own economies, unwarranted re-
strictions on international trade and might in-
crease unnecessarily the difficulties of adjustment
for the economies of other countries.
2. (a) If a Member, in the interest of its pro-
gramme of economic development, considers it
desirable to adopt any protective measure which
would conflict with any other provision of this
Charter, or with any obligation which the Mem-
ber has assumed through negotiations with any
other Member or Members pursuant to Chapter
V, it shall so notify the Organization and shall
transmit to the Organization a written state-
ment of the considerations in support of the
adoption of the proposed measure. The Organi-
zation shall promptly inform those Members
whose trade would be substantially affected by
the proposed measure and afford them an oppor-
tunity of presenting their views. The Organiza-
tion shall then promptly examine the proposed
measure in the light of the provisions of this
Chapter and other relevant provisions of this
Charter, the considerations presented by the
applicant Member, the views presented by the
other Members which would be substantially
affected by the proposed measure and such
criteria as to productivity and other factors as
it may establish, taking into account the stage
of economic development or reconstruction of
the applicant Member.
(b) If, as a result of its examination pursue-
ant to sub-paragraph (a), the Organization con-
curs in any measure which would be inconsistent
with any obligation that the applicant Member
has assumed through negotiations with any other
Member or Members pursuant to Chapter V
or which would tend to nullify or impair the
benefit to such other Member or Members of
any such obligation, the Organization shall spon-
sor and assist in negotiations between the ap-
plicant Member and he other Member or Mem-
bers which would be substantially affected, with
a view to obtaining substantial agreement. Up-
on such agreement being reached the Organiza-
tion may release the applicant Member from the
obligation in question or from any other rele-
vant obligation under this Charter, subject to
such limitations as may have been agreed upon
in the negotiations between the Members con-
cerned or such further limitations as the Organ-
ization may impose.
(c) If, as a result of examination pursuant
to sub-paragraph (a) e Organization con-
curs in any measure, owner than those provided
for in sub-paragraph (b), which would be in-
consistent with any other provision of this Char-
ter, the Organization may release the applicant
Member from any obligation under such pro-
vision, subject to such limitations as the Organi-
zation may impose. One delegate with the sup-
port of three other delegates, submitted the fol-
lowing additional text to Article 13:
1. Members agree that they will not impose
new or intensify existing quantitative restrictions
on imports for protective purposes except when
such restrictions are no more restrictive in their
effect than other forms of protection.
2. The Organization may at any time invite
any Member which is imposing quantitative re-
strictions on imports under paragraph 1 to con-
sult with it about the forrn and extent of the
restrictions and shall invite the Member substan-
tially intensifying such restrictions to consult ac-
cordingly within thirty days. Members agree to
participate in such discussions when so invited.
The Organization shall within two years of its
institution review all restrictions existing at its
institution and subsequently maintained under
paragraph 1.
3. Any Member applying or intending to
apply quantitative restrictions on imports under
paragraph 1 may if it so desires consult with the
Organization with a view to obtaining the previ-
ous approval of the Organization for restrictions
which it intends to maintain or to impose or for
the maintenance or imposition in the future of
restrictions under specified conditions. As a re-
sult of such consultation the Organization may
approve in advance the maintenance, imposition,
or intensification of import restrictions by the
Member in question in so far as the general cx-
tent, degree and duration of the restrictions are
concerned. To the extent to which such ap-
proval has been given, the action of the Member
imposing restrictions shall not be open to chal-
lenge under paragraph 4 in so far as it relates
to action taken in conformity with paragraph 1.
4. Any Member, which considers that any
other Member is applying import restrictions
under paragraph 1 in a manner inconsistent with
the terms of that paragraph, may bring the mat-
ter for discussion to the Organization. The Mem-
ber imposing restrictions shall then participate
in the discussions of the reasons for its action.
The Organization shall, if it is satisfied that
there is prima facie case that the complaining
Members' interests are adversely affected, con-
sider the complaint. It may then recommend
the withdrawal or modification of restrictions
which it determines are being applied in a man-
ner inconsistent with the terns of paragraph 1.
If restrictions are not withdrawn or modified in
accordance with the recommendations of the
Organization within sixty days, such other Mem-
bers shall be released from such obligations in-
curred under this Charter towards the Member
applying the restrictions as the Organization may
specify.
8 (ii) The words "human and material" were
inserted before "resources" so as to stress
that the productive use of the world's re-
sources covers material sources of wealth
derived both from nature and production on
the one hand and resources of manpower and
human skills on the other.
Article Il
Paraqraph I
This paragraph has been deleted and its
substance transferred to the new Article 10.
Paragraph 2
(i) The words "on terms to be agreed"
were added so as to meet the question of
the payment for assistance received.
(ii) The possible sources of such assistance
were broadened by stating that the Organi-
zation might "arrange for the provision of
such assistance", thus leaving the way open
for Members to avail themsevves of other
means of international co-operation in this
field.
(iii) The first sentence of this paragraph
had been placed between brackets at the
First Session pending the consideration by
the Economic and Social Council ot a specific
request made by the Preparatory Committee
in respect of the international allocation of
functions related to economic development.
This request was considered by the Economic
and Employment Commission of the Council
at its First Session from 20 January to 5
February 1947. In its report to the Economic
and Social Council the Commission recom-
mended that it was premature to attempt, at
least at this stage, to make a rigid division
of functions not yet allocated in the field of
economic development. The Commission did
not see any reason at present to suggest that
paragraph 3 of Article Il of the Charter
drafted at the First Session should be
omitted, provided that careful consideration
were given by the Conference on Trade and
Employment to the final formulation in the
light of the agreed purposes and functions
of the Organization, bearing in mind the
responsibilities of existing specialized agen-
cies and the terms of reference established
by the Council for the Sub-Commission on
Economic Development. It was decided by
the Drafting Committet that the first sen-
tence of this paragraph should remain
between square brackets pending considera-
tion of the question by the Economic and
Social Council at its Fourth Session. It was
suggested that ail members of the Drafting
Committee should keep in touch with their
Governments regarding the continued work
of the Economic and Employment Commis-
sion and its sub-commissions and the Secre-
tariat was requested to follow these develop-
ments and to report to the Second Session
accordingly.
(iv) A new sentence which was incorpo-
rated to the effect that the Organization may,
9
on its own initiative, consult with and 'ake
recommendations to Members and appropri-
ate inter-governmental organizations, repre-
sents a transfer from Article 61 (3) (d) as
drafted at the First Session.
Article 12
Paragraph 1
This paragraph now incorporates para-
graphs 1, 2 and 3 of the text approved at the
First Session, having regard to modifications
introduced in Article 11.
It was felt that the addition of the words
"any such" before "facilities for their eco-
nomic development" did not impose any
limit on the access to the facilities mentioned
in the first sentence.
Paragraph 3
It was suggested that the following text
which was proposed by some delegates as an
alternative in respect of Chapter VI might
be considered as an alternative to the begin-
ning of this paragraph:
"Any member may on its own behalf or
on behalf of any affected business entity
A reference to the application of article
35 (Nullification and Empairment) was added.
Article 13
Paragraph 2 (a)
(i) One delegate maintained the reserva-
tions made by his delegation at the First
Session (see Section I, paragraph 3, page 8
of the Report) regarding paragraph 2 and
suggested that wording similar to that con-
tained in paragraph 3 of Article 12 should be
substituted for the wording used, thus intro-
ducing a simpler procedure for complaints
and consultation.
(ii) The reservations made by another
delegate at the First Session (see Section I,
paragraphs 3 and 4, page 8 of the Report)
regarding paragraph 2, were maintained. The
delegate for that country felt that his reser-
vations were covered by the suggested addi-
tional text to Article 13.
(iii) One delegate proposed that a further
sub-paragraph be added to paragraph 2 and
submitted the following text:
"(d) Members recognize that the devel-
opment of industry in small nations is
hampered by the lack of a sufficiently large
market for manufactured goods. Conse-
quently the Organizatior. shall give the
most favourable consideration io any pro-
posal for preferential tariff arrangements
presented to it by small Member nations
belonging to one economic region, aiming
at the development of industry in that
region, with a view to releasing them from
their obligations under Chapter V."
Paragraph 2 (b)
One delegate reserved his position regard-
ing the phrase "subject to such limitations,
. . . members concerned". CHAPTER V. GENERAL COMMERCIAL
POLICY
Section A. GENERAL COMMERCLAL PROVISIONS,
MOST-FAVOURED-NATION TREATMENT
Article 14
General Most-Favoured-Nation Treatment
1. With respect to customs duties and charges
of any kind imposed on, or in connection with,
importation or exportation or imposed on the
international transfer of payments for imports
or exports, and with respect to the method of
levying such duties and charges, and with respect
to all rules and formalities in connexion with im-
portation or exportation and with respect to all
matters in regard to which national treatment
is provided for in Article 15, any advantage,
favour, privilege or immunity granted by any
Member to any product originating in or des-
tined for any other country, shall be accorded
immediately and unconditionally to the like prod-
uct originating in or destined for all other Mem-
ber countries respectively.
2. The provisions of paragraph 1 of this Ar-
ticle shall not be construed to require the elimi-
nation of any preferences in respect of customs
duties or other charges imposed on importation,
which do not exceed the preferences remaining
in force after the negotiations contemplated in
Article 24 and which fall within the following
descriptions:
(a) Preferences in force exclusively (i) be-
tween two or more territories which on 1 July
1939 were connected by common sovereignty
or relations of protection or suzerainty; or (ii)
between two or more of the territories listed
in Annexure A to this Charter. Each Member
to which provision (i) applies shall provide a
list of such territories which shall be incorpo-
rated in an annexure to this Charter.
(b) Preferences in force exclusively between
the United States of America and the Republic
of Cuba.
(c) Preferences in force on 1 July 1946 ex-
clusively between neighbouring countries.
Article 15
National Treatment on Internat Taxation and
Regulation
1. The Members agree that neither internal
taxes nor other internal charges nor internal
laws, regulations or requirements should be used
to afford protection directly or indirectly for
any national product.
2. The products of any Member country
imported into any other Member country shall
be exempt from internal taxes and other inter-
nal charges of any kind higher than those im-
posed, directly or indirectly, on like products
of national origin.
Article 14
GENERAL COMMENT
Two delegates maintained their suggestion
made at the First Session that Articles 14
and 24 should be interpreted in such a way
that, so long as a preference remained ac-
cordable in one part of a preferéntial system
specified in paragraph 2 of Article 14. that
part of the preferential system according the
preferences should be at liberty to extend
the same, or a lesser measure of preference
to any other part of the same preterential
system which at present did not enjoy it. One
other delegate agreed with this suggestion.
SPECIFIC COMMENTS
Paragraph 2
(a) One delegate wished to reserve the
right of his Government in case of absolute
need to resort to preferences in the future.
(b) One delegate, while accepting in prin-
ciple paragraph 2, was not in full agreement
with the provision as it stood. He wished to
reserve the right to raise the question at the
Second Session or at the World Trade Con-
ference.
Article 15
GENERAL COMMENTS
i. One delegate maintained his suggestion
at the First Session that a new paragraph
should be added providing for date of entry
into force of this Article.
2. Another delegate reserved his position
on this Article.
SPECIFIC COMMENTS-
Paragraph 2
Two delegates wished to maintain the ob-
jections against this paragraph raised by them
at the First Session. (One of them had
commented that there should be no objection
against discriminatory internal taxes levied
only for the purpose of raising revenue and
the other had reserved his Government's
right to vary charges levied on an imported
product when the variations were required
for the maintenance of a uniform price of the
product in the domestic market).
10 3. The products of any Member country
imported into any other Member country shall
be accorded treatment no less favourable than
that accorded to like products of national origin
in respect of all laws, regulations or requirements
affecting their internal sale, offering for sale,
transportation, distribution or use of any kind
whatsoever. The provisions of this paragraph
shall be understood to preclude the application
of internal requirements restricting the amount
or proportion of an imported product permitted
to be mixed, processed or used, Provided that
any such requirement in force on the day of the
signature of this Charter may be continued until
the expiration of one year from the day on which
this Charter enters into force, which period may
be extended in respect of any product if the
Organization concurs that the requirement con-
cerned is less restrictive of international trade
than other measures permissible under this Char-
ter. Requirements permitted to be maintained
under the foregoing proviso shall be subject to
negotiation in the manner provided for in re-
spect of tariffs under Article 24.
4. The provisions of paragraphs 1 and 3 of
this Article shall not be construed to prevent
the application of internal Iaws, regulations or
requirements, other than taxes, relating to the
distribution or exhibition of cinematograph films.
Any laws, regulations or requirements so applied
shall, however, be subject to negotiation for their
liberalization or elimination in the manner pro-
vided for in respect of tariffs and preferences
under Article 24.
5. The provisions of this Article shall not ap-
ply to the procurement by governmental agencies
of supplies for governmental use and not for
resale [nor for use in the production of goods
for sale].
Paragraph 3
(a) Three delegates maintained the reserva-
tions their delegations had made at the First Ses-
sion as to the requirements concerning mixing,
processing, etc. considered in this paragraph. A
fourth delegate joined in this reservation.
(b) One delegate suggested that the following
second proviso be added at the end of the penul-
timate sentence of this paragraph: "or provided
that reasonable new requirements may be estab-
lished in respect of any product if the Organiza-
tion concurs that the requirements are less re-
strictive of international trade than other meas-
ures permissible under this Charter." The same
delegate reserved his position on the last sentence
of this paragraph.
Paragraph 4
(a) The second sentence provides that laws,
regulations and requirements relating to the dis-
tribution and exhibition of cinematograph films
will be subject to negotiation in the sane manner
as those considered under paragraph 3. It was
the understanding of the Committee that the pro-
visions contained in this sentence would only im-
ply that there should be willingness to negotiate
for liberalization or elimination of the laws, regu-
lations and requirements in question but that, as
in the case of tariffs, Members would be free to
adopt legislative or other measures affecting the
distribution or exhibition of cinematograph films
as long as these measures were not bound by the
trade agreements.
(b) One delegate reserved his position on the
second sentence.
(c) One delegate made a statement to the ef-
fect that the film hire tax in his country which is
in reality a delayed customs duty levied at the
point where the real value has become apparent,
should neither be regarded as being covered by
the terms "internal laws" or "regulations" or "re-
quirements" whenever such words appear in Ar-
ticle 15, nor as an internal tax. The film hire tax,
he pointed out, which is not associated with any
form of film quota, but which contains a prefer-
ence element, could thus be the subject of nego-
tiations of the kind provided for in Article 24 with
respect to tariffs. This country, he declared, did
not produce cinematograph films other that edu-
cational and newsreels, and such films were ex-
empt from tax. Films of all types imported from
a certain country were subject to tax at a rate
lower than that applied to other foreign films. .
(d) One delegate reserved his position on this
paragraph.
Paragraph 5
The words in square brackets were added
for later consideration in connection with a
similar addition to paragraph 2 of Article 31.
11 Article 16
Freedom of Transit
1. Goods (including baggage), and also ves-
sels and other means of transport, shall be
deemed to be in transit across the territory of a
Member when the passage across such territory
with or without transhipment, warehousing,
breaking bulk, or change in the mode of trans-
port, is only a portion of a complete journey, be-
ginning and terminating beyond the frontier of
the Member across whose territory the traffic
passes. Traffic of this nature is termed in this
Article "traffic in transit". The provisions of
this Article shall not apply to the operation of
aircraft in transit.
2. There shall bc freedom of transit through
the Member countries via the routes most con-
venient for international transit for traffic in
' transit to or from other Member countries. No
distinction shall be made which is based on the
nationality of persons, the flag of vessels, the
place of origin, departure, entry, exit or desti-
nation, or on any circumstances relating to the
ownership of goods, or vessels or other means of
transport.
3. Any Member may require that traffic in
transit through its territory be entered at the
proper customshouse, but, except in cases of
failure to comply with applicable customs laws
and regulations, such traffic coming from or go-
ing to other Xember countries shall not be sub-
ject to any unnecessary delays or restrictions
and shall be cxempt from customs duties and
from all transit duties or other charges imposed
in respect of transit, except charges for trans-
portation or those commensurate with adminis-
trative expenses entailed by transit or with the
cost of services rendered.
4. All charges and regulations imposed by
Members on traffic to or from other Member
countries shall be reasonable, having regard to
the conditions of the traffic.
5. With respect to all charges, rules, and
formalities in connexion with transit, each Mem-
ber shall accord to traffic in transit to or from.
any other Member country treatment no less
favourable than the treatment accorded to
traffic in transit to or from any third country.
6. Each Member shall accord to products
which have been in transit through any other
Member country treatment no less favourable
than that which would have been accorded
to such products had they been transported from.
their place of origin to their destination with-
out going through such other Member country.
Any Member shall, however, be free to main-
tain its requirements of direct consignment (ex-
pedition directe) existing on the day of the sig-
nature of this Charter, in respect of any goods
in regard to which such direct consignment is a
requisite condition of eligibility for entry of the
goods at preferential rates of duty, or has re-
lation to the country's prescribed method of
valuation for duty purposes.
Article 16
GENERAL COMMENT
(a) The original text referred in general
to persons, goods and means of transport.
The text recommended by the Drafting Com-
mittee refers to goods and means of trans-
port only, since the transit of persons was
considered not to be within the scope of the
Charter and since traffic of persons is subject
to immigration laws and may properly be
the concern of an international agency other
than the Organization.
(b) One delegate objected to the deletion
of the word "persons".
(c) Another delegate declared that he
would prefer confining the provisions of Ar-
ticle 16 to goods only (that is, he wished to
exclude means of transport).
SPECIFIC COMMENTS
Paragraph 1
(a) Two delegates were of the opinion that,
for the sake of consistency, no exemption should
bc made for the operation of aircraft in transit.
(b) It was noted that there is no apparent in-
consistency between this Article and the Barcelona
Convention of 20 April 1921 (Convention and
Statute on Freedom of Transit). Should the
question of a new transit convention be raised,
the Committee felt that the Organization might
wish to co-operate.
Paragraph 2
(a) The last sentence is based on the text of
Article 2 of the Barcelona Statute.'
(b) One delegate suggested that the first sen-
tence should read as follows:
`There shall be freedom of transit through
Member countries for the products of other
Member countries via such routes as may be
open to traffic in products of like kind and qual-
ity of national origin."
12 Article 17
Anti-Dumping and Countervailing Duties
1. No anti-dumping duty or charge shall be
imposed on any product of any Member country
imported into any other Member country in cx-
cess of an arnount equal to the margin of dump-
ing under which such product is being imported.
For the purposes of this Article, the margin of
dumping shall be understood to mean the
amount by which the price of the product ex-
ported from one country to another is less than,
(a) the comparable price for the like product to
buyers in the domestic market of the exporting
country, or, in the absence of such domestic
price, either (b) the highest comparable price
at which the like product is sold for export to
any third country in the ordinary course of com-
merce, or (c) the cost of production of the prod-
uct in the country of origin plus a reasonable
addition for selling cost and profit; with due al-
lowancc in each case for differences in condi-
tions and terms of sale, for differences in taxa-
tion, and for other differences affecting price
comparability.
2. No countervailing duty shall be imposed
on any product of any Member country im-
ported into another Member country in excess
of an amount equal to the estimated bounty or
subsidy determined to have been granted, di-
rectly or indirectly, on the production or export
of such product in the country of origin or ex-
portation. The term "countervailing duty" shall
be understood to mean an additional duty im-
posed for the purpos of offsetting any bounty
or subsidy bestowed, directly or indirectly, upon
the manufacture, production or exportation of
any merchandise.
3. No product of any Member country im-
ported into any other Member country shall bc
subject to anti-dumping or countervailing duty
by reason of the exemption o; such product from
duties or taxes imposed in the country of origin
or exportation upon the like product when con-
sumed domestically, or by reason of the refund
of such duties or taxes.
4. No product of any Member country im-
ported into any other Member country shall be
subject to both anti-dumping and countervail-
ing duties to compensate for the same situation
of dumping or export subsidization.
5. No Member shall impose any anti-dump-
ing or countervailing duty or charge on the im-
portation of any product of other Member coun-
tries unless it determines that the effect of the
dumping or subsidization, as the case may be,
is such as materially to injure or threaten to in-
jure an established domestic industry, or is such
as to prevent the establishment of a domestic
industry.
6. Nothing in this Article shall preclude
Members, parties to a regulatory commodity
agreement conforming to the principles of Chap-
ter VII, from incorporating in such agreement
provisions prohibiting, as between themselves,
the use of anti-dumping duties in cases in which
dumping, within the meaning of paragraph 1
of this Article, may be permitted under the terms
of such an agreement.
Article 17
Paragraph 1
(a) It was understood that paragraph 1 refers
only to price dumping and that the term "anti-
dumping duty", as used therein, refers only to
an additional duty imposed for the purpose of
offsetting such dumping.
(b) One delegate suggested that the word
"landed" be inserted before "price of the product
exported" in the definition of the margin of dump-
ing (second sentence).
(c) Four delegates suggested that the words
"by more than five per cent" be inserted in the
same definition after "another is less".
(d) Five delegates favoured the authorization
of measures besides anti-dumping duties to offset
price-dumping.
(e) One delegate reserved his position on this
paragraph, being of the opinion that heavier than
counter-balancing duties or quantitative restric-
should be allowed in cases of aggravated or spo-
radic dumping
Paragraph 2
1. One delegate suggested the following addi-
tion to this paragraph:
"In the event of preferential treatment being
accorded by a country to certain countries to
the exclusion of other Member countries, no
countervailing duty shall be imposed upon the
products imported from such other Member
countries against subsidies which are granted
by the latter to such products as compensation
for covering the preferential margin."
2. One delegate suggested that quantitative re-
strictions or other punitive measures should be
permissible in order to cope with the import of
subsidized products.
Paragraph 5
One delegate suggested the deletion of this
paragraph.
Suggested new paragraph
Three delegates suggested inclusion of the fol-
lowing paragraph:
7. "Any Member maintaining restrictions on
forms of dumping other than 'price dumping',
e.g., freight dumping or dumping by means of
depreciation of currency, shall only impose such
dumping duties where it has determined after
enquiry that the method and extent of dumping
against which action is taken is such as to in-
jure or threaten to injure an established domes-
the industry."
While not adopting the proposed text. the
Committee decided to forward it for considera-
tion at the Second Session. Article 18
Tarif Valuation
1. The Members undertake to work toward
the standardization, in so far as practicable, of
definitions of value and of procedures for deter-
mining the value of products subject to customs
duties or other charges or restrictions based up-
on or regulated in any manner by value. With
a view to furthering such co-operation, the Or-
ganization is authorized to investigate and re-
commend to Members such bases and methods
for determining the value of products as would
appear best suited to the needs of commerce and
most capable of general adoption.
2. The Members recognize the validity of
the general principles of tariff valuation set forth
in the following sub-paragraphs, and they un-
dertake to give effect to such principles, in
respect of all products subject to duties, charges
or restrictions based upon or regulated in any
manner by value, at the earliest practicable date.
Moreover, they undertake, upon a request by
another Member, to review the operation of
any of their laws or regulations relating to value
for duty purposes in the light of these principles.
The Organization is authorized to request from
Members reports on steps taken by them in pur-
suance of the provisions of this paragraph.
Alternative A
The value for duty purposes of imported prod-
ucts should be based on the actual value of the
kind of imported merchandise on which duty
is assessed, or the nearest ascertainable equiva.
lent of such value, and should not be based on
the value of products of national origin or on
arbitrary or fictitious valuations.
Alternative B
The value for duty of imported products
should be based on their actual value as repre-
sented by the price at which, at a determined
time and place, and in the ordinary course of
trade between independent buyer and seller, like
goods arc sold or offered for sale in quantities
and under conditions comparable to those under
which the imported goods are sold or offered
for sale, or the nearest ascertainable equivalent
of such value. The value should not be based
on the value of products of national origin or
on arbitrary or fictitious valuations.
Alternative C
Where an actual price of imported products
is not accepted as the basis for determining their
value for duty purposes, their assessed value
should not be based on the value of products
of national origin or on arbitrary or spurious
valuations, but should satisfy clearly defined and
stable conditions which conform with commer-
cial usage.
(b) The value tor duty purposes of any iim-
ported product should not include the amount
of any [customs duty or] internal tax, applicable
within the country of origin or export, from
which the imported product has been relieved or
made exempt by means of refund.
(c) In converting the value of any imported
product from one currency to another for the
purpose of assessing duty, the rate of exchange
to be used should be fixed in accordance with
prescribed standards to reflect effectively the
current value of each currency in commercial
transactions.
(d) The bases and methods for determining
the value of products subject to duties, charges
or restrictions based upon or regulated by value
should be stable and should be given sufficient
publicity to enable traders to estimate, with a
reasonable degree of certainty, the amount of
duty likely to be imposed.
Article 18
Paragraph 2
(a) Three delegates wished to provide for a
definite early date for the entry into force of this
paragraph.
(b) One delegate suggested that the entry in-
to force should be preceded by a transitional pe-
riod.
(c) One delegate suggested that certain pro-
cedures should be more exactly indicated. The
Committee considered, however, that these-sug-
gestions were too detailed for inclusion in this
paragraph. One of these suggestions (concern-
ing the trial of value litigation) was considered
in connection with paragraph 2 of Article 21.
Paragraph 2 (a)
The Committee did not reach agreement on
paragraph 2 (a) of this Article and therefore
submits three alternative texts for consideration
at the Second Session. Alternative A represents
the text in the United States Draft Charter; Al-
ternatives B and C were drafted in order to clari-
fy to a certain extent the expression "actual
value".
Paragraph 2 (c)
(a) One delegate reserved the right to recom-
mend insertion of the words "or rates" after
"rate", or otherwise to provide for the conversion
of currencies in the cases of dual or multiple rates.
(b) One delegate reserved his position on this
paragraph.
14 Article 19
Customs Formalities
1. The Members recognize the principle that
subsidiary fees and charges imposed on or in con-
nexion with importation or exportation should
be limited in amount to the approximate cost
of services rendered and should nlot represent an
indirect protection to domestic products or a
taxation of imports or exports for fiscal pur-
poses. They also recognize the need for reduc-
ing the number and diversity of such subsidiary
fees and charges, for minimizing the incidence
and complexity of import and export formal-
ities, and for decreasing and simplifying import
and export documentation requirements.
2. Members undertake to give effect to the
principles and objectives of paragraph 1 of this
Article at the earliest practicable date. More-
over, they undertake, upon request by another
Member, to review the operation of any of their
customs laws and regulations in the light of these
principles. The Organization is authorized to
request from Members reports on steps taken
by them in pursuance of the provisions of this
paragraph.
3. Except in cases of serious negligence,
greater than nominal penalties over and above
the duty properly payable should not be imposed
by any Member in connexion with the importa-
tion of any product of any other Member coun-
try because cof errors in documentation which
arc obviously clerical in origin or with regard
to which good faith can be established.
4. The provisions of this Article shall extend
to fees, charges, formalities and requirements re-
lating to all customs matters, including:
(a) Consular transactions, such as consular
invoices and certificates;
(b) Quantitative restrictions;
(c) Licening;
(d) Exchange regulations;
(e) Statistical services;
(f) Documents, documentation and certifica-
tion;
(g) Analysis and inspection; and
(h) Quarantine, sanitation and fumigation.
Article 20
Marks of Origin
1. The Members agree that in adopting and
implementing laws and regulations relating to
marks of origin, the difficulties and inconven-
iences which such measures may cause to the
commerce and industry of exporting countries
should bc reduced to a minimum.
2. Each Member shall accord to the prod-
ucts of each other Member country treatment
with regard to marking requirements no less
favourable than the treatment accorded to like
products of any third country.
3. Whenever administratively practicable,
Members should permit required marks of origin
to be imposed at the time of importation.
4. The laws and regulations of Members re-
lating to the marking of imported products
shall bc such as to permit compliance without
seriously damaging the products, or materially
reducing their value, or unreasonably increasing
their cost.
5. Members agree to work in co-operatien
through the Organization toward the early elim-
ination of unnecessary requirements as to marks
of origin. The Organization is authorized to
investigate and recommend to Members meas-
ures directed to this end, including the adop-
tion of schedules of general categories of prod-
ucts in respect of which marking requirements
operate to restrict trade in a degree dispropor.
tionate to any proper purpose to bc served, and
which shall not in any case bc required to be
marked to indicate their origin.
Article 20
Paragraph 3
At the First Session certain delegates had ob-
jected to the tex. of the corresponding paragraph
in the United St-tes Draft Charter which begins:
"Whenever administratively possible Members
shall ... ." The present text i.. which the words
"practicable" and "should" are substituted for
"possible" and "shall," represents a compromise
acceptable to the majority of members of the
Committee. Four delegates stated that thèy would
have preferred to maintain the word "shal."
One delegate reserved his position on this par-
agraph which in his view should bc deleted.
15 6. As a general rule no special duty or pen-
alty should be imposed by any Member for
failure to comply with marking requirements
prior to importation unless corrective marking
has been unreasonably delayed or deceptive
marks have been affixed or the required mark-
ing has been intentionally omitted.
7. The interest of Members in protecting
the regional and geographical marks of origin of
their distinctive products is recognized and shall
be given consideration by the Organization which
is authorized to recommend a conference of
interested Members on the subject.
Article 21
Publication and Administration of Trade Reg-
ulations Advance Notice of Restrictive Regu-
lations
1. Laws, regulations, judicial decisions and
administrative rulings of general application
made effective by any Member, pertaining to
the classification or the valuation of products
for customs purposes, or to rates of duty, taxes
or other charges, or to requirements, restrictions
or prohibitions on imports or exports or on the
transfer of payments therefor, or affect ing their
sale, distribution, transportation or insurance, or
affecting their warehousing, inspections, exhibi-
tion, processing, mixing or other use, shall be
published promptly in such a manner as to en-
able trades and governments to become ac-
quainted with them. Agreements in force be-
tween the government or a governmental agency
of any Member country and the government or
governmental agency or any other country aI-
fecting international trade policy shall also be
published. Copies of such laws, regulations, de-
cisions, rulings and agreements shall be com-
municated promptly to the Organization. This
paragraph shall not require any Member to dis-
close confidential information which would im-
pede law enforcement, or otherwise be contrary
to the public interests or would prejudice the
legitimate business interests of particular enter-
prises, public or private.
Article 20
Paragraph 6
(a) In order to meet objections against the
original text raised by certain delegates, the ob-
ligation that would be incurred by Members was
rendered less exacting by addition of the words
"As a general rule" at the beginning of the Article,
and by substituting the words "deceptive marks
have been.affixed" for "false marks have been in-
tentionally affixed"
(b) The, question raised by certain delegates
concerning the right of each country to prohibit
the import, export and transit of foreign goods
falsely marked as being produced in the country
in question was considered to be covered primarily
by the words "deceptive practices" in sub-para-
graph (g) of article 37
(c) One delegate reserved his position on this
paragraph.
Paragraph 7
(a) Certain delegates. while accepting para-
graph 7 as given above, did not consider that it
went far enough and favoured replacing it by
the following text:
"Members agree to grant to trade names and
geographical or regional marks of origin and
quality that are recognized and protected by
other Members, the same protection. as is af-
forded by their domestic legislation to their
own trade names and geographical or regional
marks of origin and quality, provided that these
marks and trade names relate to like products.
They shall, for this purpose, transmit to the
Organization a list of such marks and trade
names as are protected by their domestic legis-
lation and for which they wish to secure pro-
tection in importing countries. They under-
take further to take part in any conference called
by the Organization to secure effective interna-
tional protection for marks of origin."
(b) One delegate reserved his position since
he considered that further time was required for
studying tht matter which ought to be taken up
at a later date.
(c) One delegate reserved his right to present
a new text of this paragraph at the Second Ses-
sion.
Article 21
Paragraph 1
The Committee felt that it might be useful if
the Preparatory Committee were to suggest the
absorption by the Organization of certain existing
international agencies such as the Brussels Tariff
Bureau, and arrangements for collecting, analyz-
ing and publishing laws, regulations and decisions
concerning foreign trade and for the periodical
collection, in detailed studies, of information con-
cerning the regulations of Member states on any
given point. Attention was drawn in this con-
nectibn to the provision of paragraph 4 of Article
81.
Paragraph 2
A reservation was made by two delegates who
were of the opinion that appeals against adminis-
trative decisions might be made to the campe-
tent minister and that it should not be necessary
to provide for independent tribunals or procedures.
16 2. Each Member shall administer in a uni-
form, impartial and reasonable manner all its
laws, regulations, decisions and rulings of the
kind described in paragraph 1 of this Article.
Moreover, Members undertake to maintain, or
to institute as soon as practicable, judicial, arbi-
tral or administrative tribunals or procedures
for the purpose inter alia, of the prompt review
and correction of administrative action relating
to customs matters. Such tribunals or pro-
cedures shall be independent of the agencies en-
trusted with administrative enforcement.
3. No administrative ruling of any Member
effecting an advance in a rate of import duty
or other charge under an established and uni-
form practice, or imposing a new or more bur-
densome requirement, restriction or prohibition
on imports, or on the transfer of payments there-
for, shall, as a general rule and within the limits
of administrative practicability, be applied to
products of any other Member country already
enroute at the time of publication thereof in ac-
cordance with paragraph 1 of this Article, Pro-
vided, that if any Member customarily exempts
from such new or increased obligations products
entered for consumption or withdrawn from
warehouse for consumption during a period of
thirty days after the date of such publication,
such practice shallbe considered full compli-
ance with this paragraph. The provisions of
this paragraph shall not apply to anti-dumping
or countervailing duties.
Article 22
Information, Stalistics and Trade Terminology
1. The Members shall communicate to the
Organization as promptly and in as much de-
tail as is reasonably practicable:
(a) Statistics of their external trade in goods
(including irnports, exports, re-exports, transit
and transhipmnent and, where applicable, goods
in warehouse or in bond);
(b) Statistics of governmental revenue from
import and export duties and other taxes on
goods moving in international trade and, in so
far as readily ascertainable, of subsidy payments
affecting such trade.
So far as possible, the statistics referred to in
(a) and (b) shall be related to tariff classifica-
tions and be in such form as to reveal the opera-
tion of any restrictions on importation or expor-
tation which are based on or regulated in any
manner by quantity or value, or by amounts of
exchange made available.
2. The Members shall publish regularly and
as promptly as possible the statistics referred to
in paragraph 1 of this Article.
3. The Members shall give careful consider-
ation to any recommendations which the Or-
ganization may make to them with a view to
improvement of the statistical information fur-
nished under paragraph 1 of this Article.
4. The Members shall make available to the
Organization, at its request and in so far as
reasonably practicable, such other statistical in-
formation as the Organization may deem neces-
sary to enable it to fulfil its functions, provided
that such information is not being furnished to
other inter-governmental organizations from
which the Organization can obtain the required
information.
5. The Organization shall act as a centre for
the collection, exchange and publication of sta-
tistical information of the kind referred to in
paragraph 1 of this Article. The Organization
may, in collaboration with the Economic and
Social Council of the United Nations and its
Commissions, and with any other interested in-
ternational organisation, engage in studies with
a view to bringing about improvements in the
methods of collecting, analyzing and publish-
ing economic statistics and may promote the
international comparability of such statistics, in-
cluding the possible international adoption of
standard tariff and commodity classifications.
6. The Organization may also, in co-opera-
.tion with the other organizations referred to
in paragraph 5 of this Article, study the ques-
tion of adopting standards, nomenclatures, terms
and forms to be used in international trade and
in the official documents and statistics of Mem-
bers relevant thereto, and may promote the
general acceptance by Members of such stand-
ards, nomenclatures, terms and forms as may bc
recommended.
Paragraph 3
Six delegates reserved their position provision-
ally.
Article 22
Paragraph 1
Two delegates, with a view to the possible cen-
tralization of the statistical services of the United
Nations, suggested that the following words be
added after "Organisation" in the first sentence:
", or to such agency as may be designated for
the purpose by the Organization".
Paragraph 6
This paragraph corresponds generally to para-
graph 7 of Article 16 of the United States Draft
Charter. It wïll be observed, however, that un-
like the lastmentioned paragraph, the text now
recommended does not refer to a procedure ac-
cording to which adopted standards, etc. would
become automatically effective upon notice given
hy the Organization. In view of this fact, para-
graph 8 of Article 66, as adopted at the First Ses-
sion, containing rules for the adoption by the Con-
ference of standards, etc. was deleted. It was
noted that the procedure laid down in paragraph
6 of Article 66 might be employed to assist in
promoting international agreements for this pur-
pose.
. 17 Article 23
Boycotts
No Member shall encourage, support or par-
ticipate in boycotts or other campaigns which are
designed to discourage, directly or indirectly, the
consumption within its territory of products of
any specific Member country or countries on
grounds of origin, or the sale of products for
consumption within other Member countries
on grounds of destination.
SECTION B. TARIFF AND TARIFF PREFERENCES
Article 24
Reduction of Tariffs and Elimination of
Preferences
1. Each Member, other than a Member
subject to the provisions of Article 33, shall,
upon the request of any other Member or Mem-
bers, enter into reciprocal and mutually advan-
tageous negotiations with such other Member
or Members directed to the substantial reduc-
tion of tariffs and other charges on imports
and exports and to the elimination of import
tariff preferences. These negotiations shall pro-
ceed in accordance with the following rules:
(a) Prior international commitments shall
not be permitted to stand in the way of negoti-
ations with respect to tariff preferences, it being
understood that action resulting from such nego-
tiations shall nut require the modification or
termination of existing international obligations
except by agreement between the contracting
parties, or failing that, by termination of such
obligations in accordance with their terms.
(b) All negotiated reductions in most-fa-
voured-nation import tariffs shall operate auto-
matically to reduce or eliminate margins of pref-
crence, and no margin of preference shall be
increased.
(c) The binding or consolidation of low tar-
iffs or of tariff-free treatment shall in principle
be recognized as a concession equivalent in value
to the substantial reduction of high tariffs or the
elimination of tariff preferences.
2. Each Member participating in negotiations
pursuant to paragraph 1 shall keep the Organ-
ization informed of the progress thereof and
shall transmit to the Organization a copy of
the agreement or agreements incorporating the
results of such negotiations.
3. If any Member considers that any other
Member bas failed, within a reasonable period
of time, to fulfil its obligations under paragraph
1 of this Article, such Member may refer the
matter to the Organization, which shall make
an investigation and make appropriate recom-
mendations to the Members concerned. The
Organization, if it finds the a Member has,
without sufficient justification, having regard
to the provisions of the Charter as a whole, failed
to negotiate with such complaining Member in
accordance with the requirements of paragraph,
1 of this Article, may determine that the com-
plaining Member, or in exceptional cases the
Members of the Organization generally, shall,
notwithstanding the provisions of Article 14, be
entitled to withhold from the trade of the other
Member any of the tariff benefits which the
complaining Member, or the Members of the,
Organization generally as the case may be, may
have negotiated pursuant to paragraph 1 of this
Article. If such benefits are in fact withheld so
as to result in the application to the trade of the
other Member of tariffs higher than would other-
wise have been applicable, such other Member
shall then be free, within sixty days after such
action is taken, to withdraw from the Organi-
zation upon the expiration of sixty days from
the date on which written notice of such with-
drawal is received by the Organization. The
provisions of this paragraph shall operate in
accordance with the provisions of Article 67.
Article 23
(a) The words "any specific Member country
or countries" were substituted for the expression
"other Member co- les" where this first appears
in the original of this Article since it was
considered that the ban on boycotts should not
apply to campaigns in support of the use or con-
sumption of products of national origin or manu-
facture and not directed against the products of
any specific country.
(b) One delegate reserved his position (cf.
General Comments under Article 37).
(c) One delegate reiterated his view that boy-
cotts may be justified on political or moral
grounds.
18
Article 24
Paragraph 1 (b)
Four delegates maintained their views ex-
pressed at the First Session-namely, that in ac-
cordance with the agreed principle of negotiations
on a mutually advantageous basis the rule con-
tained in this paragraph should not operate auto-
matically, but that Members should be free to
negotiate for a reduction in the preferential rate
as well as in the most-favoured-nation rate, pro-
vided that the resulting margin between the two
negotiated rates is smaller than that existing on
the base date
Paragraph 3
(a) Two delegates reserved their position and SECTION C. QUANTITATIVE RESTRICTIONS AND
EXCHANGE CONTROL
Article 25
General elimination of quantitative restrictions
1. Except as otherwise provided in this Char-
ter, no prohibitions or restrictions other than
duties, taxes or other charges, whether made
effective through quctas, import licenses or other
measures, shall be instituted or maintained by
any Member on the importation of any product
of any other Member country or on the ex-
portation or sale for export of any product
destined for any other Member country.
2. The provisions of paragraph 1 of this
Article shall not extend to the following:
(a) Prohibitions or restrictions on imports
or exports instituted or maintained during the
early post-war transitional period which are
essential to: (i) The equitable distribution
among the several consuming countries of
products in short supply, whether such prod-
ucts are owned by private interests or by the
Government of any Member; (ii) The main-
tenance of war-time price control by a Mem-
ber country undergoing shortages subsequent
to the war; (iii) The orderly liquidation of
temporary surpluses of stocks owned or con-
trolled by the government of any Member or
of industries developed in any Member coun-
try owing to the exigencies of the war, which
it would be uneconomic to maintain in nor-
mal conditions provided that prohibitions or
restrictions for this ppose may not be insti-
tuted by any Member after the day on which
this Charter comes into forte, except after
consultation with other interested Members
with a view to appropriate international
action.
Import and export prohibitions and restric-
tions instituted or maintained under sub-para-
graph (a) shall be removed as soon as the con-
ditions giving rise to them have ceased, and in
any event not later than 1 July 1949, Provided
that this period may, with the concurrence of
the Organization, be extended in respect of any
product for further periods not to exceed six
months each.
(b) Export prohibitions or restrictions tem-
porarily applied to relieve critical shortages of
foodstuffs or other essential products in the ex-
porting Member country.
(c) Import and export prohibitions or re-
strictions necessary to the application of stand-
ards for the classification and grading of com-
modities in international trade. If, in the opin-
ion of the Organization, the standards adopted
by a Member under this sub-paragraph are
likely to have an unduly restrictive effect on
trade, the Organization may request the Mem-
ber to revise the standards provided that it shall
not request the revision of standards interna-
tionally agreed under paragraph 6 of Article 22.
(d) Export or import quotas applied under
regulatory inter-governmental commodity agree-
ments concluded in accordance with the pro-
visions of Chapter VII.
(e) Import restrictions on any agricultural
or fisheries product imported in any form neces-
sary to the enforcement of governmental meas-
ures which operate (i) to restrict the quantities
of the like domestic product permitted to be
marketed or produced, or (i) to remove a
temporary surplus of the like domestic product
by making the surplus available to certain
groups of domestic consumers fret of charge
or at prices below the current market level.
Any Member imposing restrictions on the im-
portation of any product pursuant to this sub-
suggested insertion of the words "and particularly
with regard to Menbers' legitimate need for pro-
tection" after the phrase "having regard to the
provisions of the Charter as a whole".
(b) One delegate requested that the Committee
should consider defining the expression without
sufficient justification". It was agreed that it
would be difficult to make a general definition of
this term the interpretation of which would have
to be decided by the Organization on the merits
of each case.
Suggested new Paragraph
One delegate proposed that the following new
paragraph be added to Article 24:
"If any Member Country which has negoti-
ated a consolidation of any of its tariff rates in
pursuance of this Article should, at any time
while such consolidation remains in effect, alter
19
its method of tariff valuation or its tariff classi-
fication in such a way as to increase the duty
payable upon any product which, at the time
of negotiation of the tariff consolidation, was
understood to be covered thereby, then the
other Member or Meabers at whose request
such consolidation was negotiated, shall be en-
titled to call for further negotiations forthwith
with a view to reaching a satisfactory adjust-
ment of the matter; and the Member which
has altered its method of valuation or its tariff
classification shall enter into such further nego-
tintions as requested."
The questions raised have been dealt with in
Article VIII (paragraph 2 and footnote) of the
Draft General Agreement on Tariffs and Trade.
Whether such a paragraph should be included in
Article 24 was left for further consideration at
the Second Session. Several delegates expressed
their approval in principle of inclusion. paragraph shall give public notice of the total
quantity or value of the product permitted to be
imported during a specified future period and
of any change in such quantity or value. More-
over, any restrictions applied under (i) above
shall not be such as will reduce the total of
imports relative to the total of domestic produc-
tion, as compared with the proportion which
night reasonably be expected to rule between
the two in the absence of the restrictions. In
determining this proportion the Member shall
pay due regard to the proportion prevailing
during a previous representative period and to
any special factors which may have affected or
may be affecting the trade in the product con-
cerned. The Member shall consult with any
other Members which are interested in the trade
in question and which wish to initiate such
consultations.
(f) Import and export prohibitions or re-
strictions on private trade for the purpose of
establishing a new, or maintaining an existing,
monopoly of trade for a state-trading enterprise
operated under Articles 31, 32 or 33.
Article 26
Restrictions to Safeguard the Balance of
Payments
1. The Members may need to use import
restrictions as a means of safeguarding their
external financial position and as a stop toward
the restoration of equilibrium in their balance
of payments on a sound and lasting basis, par-
ticularly in view of their increased demand for
imports needed to carry out their domestic
employment, reconstruction, development or
social policies. Accordingly, notwithstanding
the provisions of Article 25, any Member may
restrict the quantity or value of merchandise
permitted to be imported insofar as this is neces-
sary to safeguard its balance of payments and
monetary reserves.
2 The use of import restrictions under para-
graph 1 of this Article shall be subject to the
following requirements:
(a) No Member shall institute [or main-
tain] restrictions or intensify existing restrictions
except to the extent necessary to forestall the
imminent threat of, or to stop, a serious decline
in the level of itt monetary reserves or, in the
case of a Member with very low monetary re-
serves, to achieve a reasonable rate of increase
in its reserves. Due regard should be paid in
each case to any special factors which may be
affecting the level of the Member's reserves,
to any commitments or other circumstances
which may be affecting its need for reserves,
and to any special credits or other resources
which may be available to protect its reserves.
(b) The Members shall eliminate the restric-
tions when conditions would no longer justify
Article 25
Paragraph 2 (e)
(a) The Committee considered the proviso with
reference to goods en route which had been in-
serted in square brackets in paragraph 2 (f) as
adopted at the First Session, with the indication
that it should be retained "only if the matter is
not fully covered in Article 21". The Committee
decided to delete the proviso and to amend Article
27 so as to include provisions concerning public
notice and goods en route (cf. paragraph 3 (c)
of Article 27). The remainder of the previous
paragraph 2 (f) was merged with paragraph 2
(e).
2. One delegate proposed the following addi-
tion:
"Restriction imposed under this exception
should be strictly limited to the periods during
which the aforesaid circumstances occur, and
should not be imposed on seasonal commodities
' at a time when like domestic products are not
available."
(e) One delegate maintained the proposal made
by his delegation at the First Session that this
paragraph should not be confined to agricultural
and fisheries products.
(d) One delegate .reserved his position and
suggested the following text:
"Import prohibitions or restrictions on any
agricultural or other essential products imported
in any form necessary to the enforcement of
governmental measures which operate to regu-
late production, distribution, or consumption of
like domestic products with a view to rnaintain-
ing a dynamic equilibrium between the diverse
economic activities of a country while in the
process of its industrialization."
The same delegate reserved his position con-
cerning the relevant provision in paragraph 4 of
Article 27.
(e) One delegate suggested that the words
"or to support the prices of such products" be
added after "produced" and that the two sentences
from "Any restrictions" to "the product con-
cerned" in paragraph 2 (f) be deleted.
(f) One delegate was unable to express an
opinion on the reservation which his delegation
had made at the First Session with a view to con-
fining paragraph 2 (e) (i) to agricultural prod-
ucts.
(g) One delegate suggested that the words "of
of a directly competitive product which may be
marketed or produced" be added after the word
"produced" in paragraph 2 (e) (i).
Article 26
Paragraph 2 (c)
Two delegates stated that they preferred the
wording adopted at the First Session. ("Not to
carry the imposition of new import restrictions
20 their institution [or maintenance] under sub-
paragraph (a), and shall relax them progres-
sively as such conditions are approached;
(c) The Members shall not apply the re-
strictions in such a manner as to exclude com-
pletely imports of any class of goods.
3. (a) Any Member which is not applying
restrictions under paragraphs 1 and 2 of this
Article but which is considering the need for
their institution, shall, before instituting such
restrictions (or, in circumstances in which prior
consultation is impracticable, immediately fol-
lowing upon the institution of such restrictions)
consult with the Organization as to the nature
of its balance-of-payments difficulties, the vari-
ous corrective measures which may be available,
and the possible effects of such measures on the
economies of other Members. The Organiza-
tion shall invite the International Monetary
Fund to participate in the consultations. No
Member shall be required during' such discus-
sions to indicate in advance the choice or timing
of any particular measures which it may ulti-
mately determine to adopt.
(b) The Organization may at any time in-
vite any Member applying import restrictions
under paragraphs 1 and 2 of this Article to
consult with it about the form or extent of the
restrictions, and shall invite a Member substan-
tially intensifying such restrictions to consult ac-
cordingly within thirty days. Members thus in-
vited shall participate in such discussions. In
the conduct of such discussions the Organiza-
tion shall consult the International Monetary
Fund and any other appropriate inter-govern-
mental organisation, in particular with regard
to the alternative methods available to the
Member in question of meeting its balance-o!-
payments difficulties. The Organization shall,
not later than two years from the day on which
this Charter enters into force, review all restric-
tions existing on that day and still applied under
paragraphs 1 and 2 of this Article at the time
of the review.
(c) Any Mcmber may consult with the Or-
ganization with a view to obtaining the prior
approval of the Organization for restrictions
which the Member proposes under paragraphs
1 and 2 of this Article to maintain, intensify
or institute, or for the maintenance, intensifica-
tion or institution of restrictions under specified
future conditions. The Organization shall in-
vite the International Monctary Fund to partici-
pate in the consultations. As a result of such
consultations, the Organization may approve in
advance the maintenance, intensification or in-
stitution of restrictions by the Member in ques-
tion insofar as the general extent, degree and
duration of the restrictions are concerned. To
the extent to which such approval has been
given, the action of the Member applying re-
strictions shall not be open to challenge under
sub-paragraph (d) on the ground that such
action is inconsistent with the provisions of
paragraphs 1 and 2 of this Article.
(d) Any Member which considers that any
other Member is applying import restrictions
under paragraphs 1 and 2 of this Article in a
manner inconsistent with the provisions of those
paragraphs or of Articles 27 and 28, or in a
manner which unnecessarily damages its com-
mercial interests, may bring the matter for dis-
cussion to the Organization. The Member ap-
plying the restrictions shall then participate in
discussions of the reasons for its action. The
Organization, if it is satisfied that there is a
prima facie case that the complaining Member's
under sub-paragraph (a) to a point at which it
involves the complete exclusion of imports of any
class of goods.")
Paragraph 3 (b)
The last sentence was modified so as to exempt
the Organization from the obligation to report on
restrictions which were in existence on the date
the Charter came into operation but were lifted
before the review was made.
Paragraph 3 (c)
One delegate pointed out that, although under
the last sentence a restriction imposed by a Mem-
ber after prior approval was not subject to chal-
lenge under sub-paragraph (d), the provisions
of sub-paragraph (a) would still be applicable.
21
He did not consider this desirable and suggested
that sub-paragraph (c) be modified so as to elimi-
nate the application of sub-paragraph (a) when
prior approval for the restriction had been ob-
tained.
Paragraph 3 (d)
(a) The words "and, if it considers it desir-
able, after submitting observations to the parties
with the aim of achieving a satisfactory settlement
of the matter in question" were inserted with a
view to enabling the Organization to attempt con-
ciliation between Members before recommending
the withdrawal or modification of restrictions.
(b) In the last sentence the word "approve"
was substituted for "specify" after it had been
pointed out that it would be difficult for the Or-
ganization to determine from which obligations a
Member should be released. interests are adversely affected, may, after con-
sultation with the International Monetary Fund
on any matter falling within the competence
of the Fund, and, if it considers it desirable,
after submitting observations to the parties with
the aim of achieving a satisfactory settlement
of the matter in question, recommend the with-
drawal or modification of restrictions which it
determines are being applied in a manner incon-
sistent with the provisions of paragraphs 1 and
2 of this Article or of Article 27 or 28 or in a
manner which unnecessarily damages the inter-
ests of another Member. If the restrictions are
not withdrawn or modified in accordance with
the recommendation of the Organization within
sixty days, such other Member or Members
shal' be released from such obligations incurred
under this Charter towards the Member apply-
ing the restrictions as the Organization may
approve.
(e) The Organization, in reaching its deter-
rnination under sub-paragraph (d) shall not
recommend the withdrawal or general relaxa-
tion of restrictions on the ground that the exist-
ing or prospective balance-of-payments difficul-
ties of the Member in question could be avoided
by a change in that Member's domestic employ-
ment, reconstruction, development or social pol-
icies. In carrying out such domestic policies,
however, Members shall pay due regard to the
need for restoring equilibrium in their balance
of payments on a sound and lasting basis.
4. In giving effect to the restrictions on im-
ports under this Article, a Member may restrict
imports of products according to their relativc
essentiality in such a way as to give priority to
the importation of products required by its
domestic employment reconstruction, develop-
ment or social policies and programmes. In so
doing the Member shall avoid al unnecessary
damage to the commercial interests of other
Members.
5. If there is persistent and widespread ap-
plication of import restrictions under this Arti-
cle, indicating the existence of a general dis-
cquilibrium which is restricting international
trade, the Organization shall seek consultation
with the International Monetary Fund. The Or-
ganization may then, in collaboration through-
out with the Fund, initiate discussions to con-
sider whether other measures might be taken,
either by those Members whose balances of pay-
ments are under pressure or by those Members
whose balances of payments are tending to be
exceptionally favourable, or by any appropriate
inter-governmental organization, to remove the
underlying causes of the disequilibrium. On the
invitation of the Organization Members shall
participate in such discussions.
6. The Members recognize that in the early
years of the Organization all of them will be
confronted in varying degrees with problems of
economic adjustment resulting from the war.
During this period the Organization shall, when
required to take decisions under this Article or
under Article 28, take full account of the diffi-
culties of post-war adjustment.
7. Throughout this Section the phrase "im-
port restrictions" includes the restriction of im-
ports by state-trading enterprises to an extent
greater that that which would be permissible
under Article 32.
(c) One delegate, supported by two other dele-
gates, suggested the following addition:
"The Organization may initiate proceedings,
analogous to the foregoing, if it considers that
any Member is applying import restrictions un-
der paragraphs 1 and 2 of this Article in a
manner inconsistent with the provisions of par-
agraph. 1 and 2 of this Article, or of Article
27".
(d) One delegate suggested that the expres-
sion "under paragraphs 1 and 2" be amended to
"under paragraphs 1, 2 and 4". The Committee
considered that the sub-paragraph as it stands
should be interpreted as covering the restrictions
referred to under paragraph 4.
22
Paragraph 4
Four delegates felt that the text might be clari-
fied at the Second Session.
Paragraph 6
The Committee decided to reverse the order
of paragraphs 6 and 7 of the text approved at the
First Session.
Paragraph 7
The proviso enclosed in square brackets in the
text approved at the First Session was deleted
since it was considered covered by paragraph 1
of Article 21. Article 27
Non-discriminatory administration of quanti-
tative restrictions
1. No prohibition or restriction shall be ap-
plied by any Member on the importation of
any product of any other Member country or
on the exportation of any product destined for
any other Member country, unless the importa-
tion of the like product of all third countries or
the exportation of the like product to all third
countries is similarly prohibited or restricted.
2. Members shall observe the following pro-
visions in applying import restrictions:
(a) The administration of the restrictions
should be carried out in such a way as to result
in a distribution of trade which approaches as
closely as possible to the shares which the vari-
ous Member countries might be expected to ob-
tain as the result of international competition
in the absence of such restrictions.
(b) Wherever practicable, quotas represent-
ing the total amount of permitted imports
(whether allocated arnong suppiying countries
or not) shall be fixed, and notice given of their
amount in accordance with paragraph 3 (b) of
this Article.
(c) In cases in which quotas arc not prac-
ticable, the restrictions may be applied by means
of import licenses or permits without a quota.
(d) Import licenses or permits, whether or
not issued in connection with quotas shall not
(save for purposes of operating quotas allocated
in accordance with sub-paragraph (e) of this
paragraph) require or provide that the license
or permit be utilized for the importation of the
product concerned from a particular country
or source.
(e) In cases in which a quota is allocated
among applying countries, the shares of the vari-
ous supplying Member countries should in prin-
ciple be determined in accordance with com-
mercial considerations such as price, quality and
customary sources of supply. For the purpose
of appraising such commercial considerations,
the Member applying the restrictions may seek
agreement with respect to the allocation of
shares in the quota with all other Members
having a substantial interest in supplying the
product concerned. In cases in which this
method is not reasonably practicable, the Mem-
ber concerned shall allot to Member countries
having a substantial interest in supplying the
product, shares based upon the proportions, sup-
plied by such Member countries during a pre-
vious representative period, of the total quan-
tity or value of imports of the product, due
account being taken of any special factors which
may have affected or may be affecting the trade
in the product. No conditions or formalities
shall be imposed, which would prevent any
Member from utilizing fully the share of any
such total quantity or value which has been
allotted to it, subject to importation being made
within any prescribed period to which the quota
may relate.
3. (a) In cases where import licenses are
issued in connection with import restrictions, the
Member applying the restriction shall provide,
upon the request of any Member having. an
interest in the trade in the product concerned,
ail relevant information concerning the admin-
istration of the restriction, the import licenses
granted over a past recent period and the dis-
tribution of such licenses among supplying coun-
tries, Provided, however, that there shall be no
obligation to supply information as to the names
of importing or supplying enterprises.
(b) In the case of import restrictions involv-
ing the fixing of quotas, the Member applying
the restrictions shall give public notice of the
total quantity or value of the product or prod-
ucts which will be permitted to be imported
during a specified future period and of any
change in such quantity or value. Any supplies
of the product in question which were en route
at the time at which public notice was given
shall not be excluded from entry, Provided tha:
they may be counted, so far as practicable,
against the quantity permitted to be imported
in the period in question, and also, where neces-
sary against the quantities permitted to be im-
ported in the next following period or periods,
and Provided further that if. any Member cus-
tomarily exempts from such restrictions products
entered for consumption or withdrawn from
warehouse for consumption during a period of
thirty days after the day of such public notice,
such practice shall be considered full com-
pliance with this sub-paragraph.
(c) In the case of quotas allocated among
supplying countries the Member applying the
restriction shall promptly inform all other
Members having an interest in supplying the
product concerned of the shares in the quota,
by quantity or value, currently .allocated to
the various supplying countries and shall give
public notice thereof.
Article 27
Paragraph 2
Paragraph 2 was redrafted so as to make the
provisions more clear and more consequential.
Sub-paragraph -(a), setting out a general principle
of administering import restrictions represents
an addition to the text adopted at the First
Session;
Paragraph 3 (b)
The last sentence was inserted to replace the
provision concerning goods en route, included in
square brackets in paragraph 2 (f) of Article 25 as
worded at the First Session. The second proviso
was added to bring this sub-paragraph into har-
mony with the provision concerning publication
of certain administrative rulings contained in
paragraph 3 of Article 21.
Paragraph 3 (c)
The words "and shall give public notice there-
of" were added.
23 4. With regard to restrictions applied in
accordance with paragraph 2 (e) of this Ar-
ticle or under paragraph 2 (e) of Article 25,
the selection of a representative period for any
product and the appraisal of any special fac-
tors affecting the trade in the product shall be
made initially by the Member applying the
restriction, Provided that such Member shall,
upon the request of any other Member having
a substantial interest in supplying that product
or upon the request of the Organization, con-
sult promptly with the other Member or the
Organization regarding the need for an adjust-
ment of the base period selected or for the
re-appraisal of the special factors involved.
5. The provisions of this Article shall apply
to any tariff quota established or maintained
by any Member and, insofar as applicable, the
principles of this Article shall also extend to
export restrictions and to any internal regula-
tion or requirements under paragraphs 3 and
4 of Article 15.
Article 28
Exceptions to the Rule of Non-Discrimination
2. The provisions of this Section shall not
preclude
(a) restrictions with equivalent effect to
exchange restrictions authorized under Section
3 (b) of Article VII of the Articles of Agree-
ment of the International Monetary Fund;
(b) prohibitions or restrictions in accord-
ance with paragraphs 2 (a) (i) or 2 (d) of
Article 25;
(c) conditions attaching to exports which
are neccssary to ensure that an exporting
Member country receives for its exports its
own currency or the currency of any member
of the International Monetary Fund specified
by the exporting Member country;
(d) restrictions in accordance with Article
26 which either (i) are applied against im-
ports from other countries, but not as between
themselves, by a group of territories having a
common quota in the International Monetary
Fund, Provided that such restrictions are in
all other respects consistent with Article 27, or
(ii) assist in the period until 31 December
1951, by measures not involving substantial
departure from the provisions of Article 27, a
country whose economy has been disrupted by
war;
(e) restrictions in accordance with Article
26 which both (i) provide a Member with
additional imports above the maximum total
of imports which it could afford in the light of
the requirements of paragraph 2 of Article 26,
if its restrictions were consistent with Article
27, and (ii) have equivalent effect to exchange
restrictions which are permitted to that Mem-
ber under the Articles of Agreement of the
international Monetary Fund or under the
terms of any special exchange agreement
which may have been made between the
Member and the Organization under Article
29, Provided that a Member which is not ap-
plving restrictions on payments and transfers
for current international transactions, may ap-
ply import restrictions under (i) of this sub-
paragraph in special circumstances and only
with the prior approval of the Organization
in agreement with the International Monetary
Fund.
2. If the Organization finds, after consulta-
tion with the International Monetary Fund on
matters within the competence of the Fund,
that import restrictions or exchange restric-
tions on payments and transfers in connection
with imports are being applied by a Member
in a discriminatory manner inconsistent with
the exceptions provided under this Article or
in a manner which discriminates unnecessarily
against the trade of another Member country,
the Member shall within sixty days remove
the discrimination or modify it as specificd
by the Organization, Provided that a Member
may, if it so desires, consult with the Organiza-
tion to obtain its prior approval for such
discrimination, under the procedure set forth
in paragraph 3 (c) of Article 26, and to the
extent that such approval is given, the dis-
crimination shall not be open to challenge
under this paragraph.
3. When three-quarters of the Members of
the Organization have accepted the obligations
of Sections 2, 3 and 4 of Article VIII of the
Articles of Agreement of the International
Monetary Fund, but in any event before 31
December 1951, the Organization shall review
the operation of this Article, in consultation
with the International Monetary Fund, with
a view to the earliest possible elimination'of
any discrimination, under paragraphs 1 (e)
(i) and (ii) of this Article, which restricts
the expansion of world trade.
Article 29
Exchange Arrangements
1. The Organization shall seek co-opera-
tion with the International Monetary Fund
Paragraph 4
One delegate reserved his position.
Article 28
Certain delegates objected to the words "which
restricts the expansion of world trade."
24 to the end that the Organization and the
Fund may pursue a co-ordinated policy with
regard to exchange questions within the com-
petence of the Fund and questions of quan-
titative restrictions or other trade measures
within the competence of the Organization.
2. Members shall not seek by exchange
action to frustrate the purposes of the Organ-
ization and shall not seek by trade action to
frustrate the purposes of the International
Monetary Fund.
3. In order to avoid the imposition of trade
restrictions and discriminations through ex-
change techniques and in order to avoid the
danger of conflicting jurisdiction between the
Organization and the International Monetary
Fund in exchange matters, Members of the
Organization shall also undertake membership
of the International Monetary Fund, Provided
that any country which is not a member of
the International Monetary Fund may bccome
a Member of the Organization if upon accept-
ing this Charter it undertakes to enter, within
a time to be determined by the Organiza-
tion after consultation with the International
Monetary Fund, into a special exchange agree-
ment with, the Organization which would be-
come part of its obligation under this Charter,
and Provided further that a member of the
Organization which ceases to be a member of
the International Monetary Fund shall forth-
with enter into a special exchange agreement
with the Organization which shall then be-
come part of its obligations under this
Charter.
4. A Member which has made such an
agreement undertakes to furnish the Organ.
ization with the information which it may
require, within the general scope of Section
5 of Article VIII of the Articles of Agreement
of the International Monetary Fund, in order
to carry out its functions relating to such
agreement.
5. A special exchange agreement between
a Member and the Organization under para-
graph 3 of this Article must provide to the
satisfaction of the Organization, collaborating
throughout with the Internatïonal Monetary
Fund, that the purposes common to the Or-
ganization and the Fund will not be frustrated
as a result of action in exchange matters by
the Member in question.
6. The Organization shall seek and accept
the opinion of the International Monetary
Fund as to whether action by the Member in
exchange matters is permissible under the
terms of the special exchange agreement and
shall act in collaboration with the Interna-
tional Monetary Fund on all questions which
may arise in the working of a special exchange
agreement under this Article.
SECTION D. SUBSIDIES
Article 30
General undertaking regarding subsidies-
Elimination of export subsidies-Exceptions
1. If any Member grants or maintains any
subsidy, including any form of income or
Article 29
Paragraph 3
This paragraph was redrafted so as to permit a
country not being a member of the Inter-
national Monetary Fund to become a Member
of the Organization if it undertakes to enter,
within a time to be determined by the Organi-
zation after consultation with the Fund, into a
special exchange agreement.
Paragraph 4
The order of paragraphs 4 and 5 was reversed.
Suggested new Article.
One delegate proposed that a new Article be
inserted after Article 29, reading as follows:
"1. Any Member country recognized as an
economically under-developed country, shall be
allowed, as a means for creating favourable con-
ditions for its industrial development, to impose
or maintain restrictions on the quantity or
value of merchandise permitted to be imported
or exported.
"2. Any Member country which considers
such an action necessary to facilitate its indus-
trial development, shall be entitled to impose
or maintain quantitative restrictions on im-
ports or exports under paragraph 1 of this
25
Article until it is recognized as having been
fairly industrialized.
"3. Any Member country making use of the
provisions of this Article shall conform to the
following conditions:
" (a) Quantitative restrictions to be thus im-
posed or maintained should be applied on the
basis of non-discrimination in respect of its
imports from or exports to all Member coun-
tries;
"(b) Such quantitative restrictions should be
periodically adjusted to meet the changing re-
quirements of the country's national economy
and progressively relaxed with the advance of
its industrial development."
The delegate in question explained that his
Government was far from intending to cause any
harm to other countries and that in the event of
any complaint being made by any Member coun-
try affected, consultation with the Organization
could follow.
Article 30
Paragraph 1
(a) A. is suggested in the Report of the First
Session (page 16, Section D:1(d)(iv)), the Com-
mittee considered the initial words "Except as price support, which operates directly or in-
directly to increase exports of any product
from, or to reduce imports of any product
into, its territory, the Member shall notify
the Organization in writing as to the extent
and nature of the subsidization, as to the
estimated effect of the subsidization on the
quantity of the affected product or products
imported into or exported from the territory
of the Member country and as to the condi-
tions making the subsidization necessary. In
any case in which it is determined that serious
prejudice to the interest of any other Member
is caused or threatened by any such subsidiza-
tion, the Member granting the subsidization
shall, upon request, discuss with the other
Member or Members concerned, or with the
Organization, the possibility of limiting the
subsidization.
2. (a) No Member shall grant, directly or
indirectly, any subsidy on the exportation of
any product, or establish or maintain any
other system, which results in the sale of such
product for export at a price lower than the
comparable price charged for the like product
to buyers in the domestic market, due allow-
ance being made for differences in the candi-
tions and terms of sale, for differences in
taxation, and for other differences affecting
price comparability, Providcd that this shall
not prevent any Member from exempting ex-
ported products from duties or taxes imposed
in respect of like products when consumed
domestically, from remittinig such duties or
taxes which have accrued, or from using, the
proceeds of suc. duties or taxes to make pay-
ments to domestic producers;
(b) Members shall give effect to the pro-
visions of this paragraph at the earliest prac-
ticable date, but in any event not later than
three years from the day on which this Charter
enters into force. If any Member considers
itself unable to make the provisions of this
paragraph effective in respect of any specified
product or products upon the expiration of
such period, such Member shall, at least three
months before the expiration of such period,
give ta the Organization notice in writing
requesting a specific extension of the period
and accompanied by a complete analysis of
the system in question and the facts justifying
it. It shall then be determined whether the
extension requested should be made.
8. A system for the stabilization of the do-
mestic price or of returns to domestic pro.
ducers of a primary product, which results
over a period in the sale of the product for
export at a price lower than the comparable
price charged for the like product ta buyers
in the domestic market, may be determined
not to involve a subsidy on exportation under
the terms of paragraph 2 of this Article if it
has also resulted over a period in the sale of
the product for export at a price higher than
the comparable price charged for the like
provided in paragraphs 2 and 4 of this Article".
They were found superfluous and accordingly
deleted.
(b) Certain other changes, chiefly of a formal
nature, were made in the first sentence. It will
be observed that the provision in this sentence
as now drafted applies to cases in which the sub.
sidy operates, "directly or indirectly", to increase
exports or reduce imports of any product and can
thus not be interpreted as being confined ta sub-
sidies operating directly to affect trade in the
product under consideration. Similarly, in the
same sentence the words "anticipated effect" were
changed to "estimated effect" in order to remove
the possible impression that the effect of a sub-
sidy on trade could be accurately predicted.
Paragraph 2
(a) The initial words of paragraph 2, refer-
ring to paragraph 4, were deleted as superfluous,
and the paragraph was divided into two sub-
paragraphs (a) and (b).
(b) The concluding words of sub-paragraph
(a) were modified for greater clarity. The dele-
tion of the words "would be considered as a case
under paragraph 1" was designed in part to ren-
der it clear that while paragraph 2 covers export
subsidies, it is not an alternative to paragraph 1.
which covers subsidies of ail kinds, whether do-
mestic subsidies or export subsidies, if they affect
exports or imports.
(c) At the First Session one delegate had made
a reservation (cf. page 16, Section D, 1(d)(ix) of
the Report) with a view to modifying paragraph
2 so that subsidies to promote exports of "special
commodities" would be permitted in certain
countries until they had attained equilibrium in
their balance of payments. The same delegate in
the Committee expressed his willingness to with-
draw the reservation if satisfied that the subsidies
in question were permissible under other provi-
sions of the Charter.
(d) One delegate wished to have it recorded
that in his view paragraph 2 "should not be inter-
preted su as to prevent countries far removed from
world market to sell their products at current
work market prices even though these may be
lower than the prices charged in the domestic
market, such action not being the result of a
direct or indirect subsidy or of the establishment
of any other system."
Paragraph 3
At the First Session (page 16, Section D, 1(d)
(xi) of the Report) one delegate had raised the
question whether the domestic. price to be con-
sidered in this paragraph should not be that paid
ta domestic producers. The Committee added
the words "or of returns to domestic producers"
after "domestic price" in the first line but the
same delegate reserved his right to raise the
question again at the Second Session.
26 product to domestic buyers, and if the system
is so operated, either because of the effective
limitation of production or otherwise, as not
to stimulate exports unduly or otherwise seri-
ously prejudice the interest of other Members.
4. (a) In any case of subsidization of a
primary commodity, if a Member considers
that its interests are scriously prejudiced by
the subsidy or if the Member granting the
subsidy considers itself unable to comply with
the provisions of paragraph 2 of this Article
within the time limit laid down therein, the
difficulty may be determined to be a special
difficulty of the kind referred to in Chapter
VII, and in that event the procedure laid
down in that Chapter shall be followed;
(b) If it is determined that the measures
provided for in Chapter VII have not suc-
ceeded, or do not promise to succeed, within
a reasonable period of time, in removing or
preventing the development of a burdensome
world surplus of the primary product con-
cerned, the requirements of paragraph 2 of
this Article shall cease to apply in respect of
such product as from the effective date of such
determination and shall not be re-applied in
respect of such product until a date deter-
mined in accordance with procedures ap-
proved by the Organization.
5. Notwithstanding the provisions of para-
graph 2 and sub-paragraph 4 (b) of this Ar-
ticle, no Member shall grant any subsidy on
the exportation of any product which has the
effect of acquiring for that Member a share of
world trade in that product in excess of the
share which it had during a previous repre-
sentative period, account being taken insofar
as practicable of any special factors which may
have affected or may be affecting the trade in
that product. The selection of a representative
period for any product and the appraisal of
any special factors affecting the trade in the
product shall be made initially by the Mem-
ber granting the subsidy, Provided that such
Member shall, upon the request of any other
Member having an important interest in the
trade in that product, or upon the request of
the Organization, consult promptly with the
other Member or with the Organization re-
garding the need for an adjustment of the
base period selected or for the re-appraisal of
the special factors involved.
6. Any determination required by or ap-
propriate to the operation of this Article shall
be made under procedures established by the
Organization in accordance with paragraph 4
of Article 66.
SECTION E. STATE TRADING
Article 31
Non-discriminatory administration of state.
trading enterprises
i. If any Member establishes or maintains
a state enterprise, wherever located, which
imports, exports, purchases, sells, or distrib-
utes any product, or if any Member grants
Paragraph 4(b)
(a) The reference to paragraph I was deleted
since it was considered that in cases such as those
dealt with here the obligation of the subsidizing
Member to notify the Organization and discuss
with the. Members concerned should not be re-
linquished.
(b) Two delegates reserved their position since
they feared that this sub-paragraph might enable
subsidizing countries, taking such an attitude
that no agreement could be reached, to be free
to act as they wished without regard to their
obligation under paragraph 2. They did not con-
sider the provisions of paragraph 5 an adequate
safeguard against abuse. They therefore sug
gested that paragraph 4(b) be deleted.
Paragraph 5
(a) In the Report of the First Session, this
paragraph appeared as a subparagraph of para-
graph 4, which was concerned wholly with pri-
mary commodities. Alter the change in the text
referred to in the following paragraph, it was
found appropriate to present it as paragraph 5.
(b) The Commitee decided to delete the word
"primary" before "product" in the first sentence
so as to extend the limitation provided for to all
export subsidies, whether on primary or non-
.primary commodities, whenever such subsidies
are permited under this Article.
27
(c) One delegate reserved his position.
Article 31
Paragraph 1
(a) The square brackets enclosing the words
"distribute or produce" in the first sentence of
the text adopted at the First Session were deleted.
(b) One delegate objected to the inclusion of
these words.
(c) The words "and exercise effective control
over the trading operations of such enterprise"
entered in square brackets in the same sentence
were deleted in connection with an amendment
ta paragraph 8.
(d) Finally, the last sentence in the text adopted
at thc First Session (stating the obligation of
Members maintaining State enterprises or grant-
ing exclusive or special privileges to enterprises
tO supply information in connection with con-
sultation) was deleted as a result of the insertion
of a similar provision in paragraph I of Article
35.
(e) It was agreed that the charging by a state
enterprise of different prices for its sales of a
product in different markets, domestic or for-
eign, is not precluded by the provisions of Article
31, provided that such different prices are
charged for commercial reasons, to meet condi-
tions of supply and demand in export markets. exclusive or special privileges, formally or in
effect, to any enterprise to import, export,
purchase, sell, distribute or produce any prod-
uct, the commerce of other Members shall be
accorded treatment no less favourable than
that accorded to the commerce of any country
other than that in which the enterprise is
located in respect of the purchase or sale by
such enterprise of any product. To this end
such enterprise shall, in making its external
purchases or sales of any product, be influ-
enced solely by commercial considerations,
such a- price, quality, marketability, trans-
portation and other terms of purchase or sale,
having due regard to any differential customs
treatment maintained consistently with the
other provisions of this Charter.
2. The provisions of paragraph 1 of this
Article relating to purchases of imports by
state enterprises shall apply to purchases or
imports of products for re-sale [or for use in
the production of goods for sale]. With re-
spect to purchases or imports by state enter-
prises of products for governmental use and
not for re-sale [or for use in the production
of goods for sale]. Members shall accord to
the commerce of the other Members fair and
equitable treatment, having full regard to all
relevant circumstances.
3. This Article shall apply to any enter-
prise, organ or agency in which there is effec-
tive control by a Member government.
Alternative A
or over whose trading operations a Mem-
ber government exercises effective control by
virtue of the special or exclusive privileges
granted to the enterprise.
Alternative B
or over whose trading operations a govern-
ment is, under the arrangements providing
for the special or exclusive privileges granted
to the enterprise, legally entitled to exercise
effective control.
Article 32
Expansion, of trade by state monopolies of
individual producis
1. If any Member, other than a Mcmber
subject to the provisions of Article 88, estab-
lishes, maintains or authorizes, formally or in
fact, an effective monopoly of the importation
or exportation of any product, such Member
shall, upon the request of any other Member
or Members having an interest in trade with
that Member in the product concerned, enter
into negotiations with such Member or Mem-
bers in the manner provided for in respect
of tarifEs under Article 24, with regard to (a)
in the case of an export monopoly, arrange-
ments designed to limit or reduce the protec-
tion afforded through the operation of the
monopoly to domestic users of the monop-
olized product or to assure exports of the mo-
nopolized product in adequate quantities at
reasonable prices; or (b) in the case of an im-
port monopoly, the maximum margin by
which the price for an imported product
charged by the monopoly in the home market
may exceed the landed cost, before payment
of any duty, of such product purchased by the
monopoly from suppliers in the territories of
Members, after due allowance for internal
taxes, transportation, distribution and other
expenses incident to purchase, sale or further
processing, and for a reasonable margin of
profit. For the purpose of applying this mar-
gin regard may be had to average landed costs
and selling prices of the monopoly over recent
periods.
2. Any Member newly establishing any im-
port monopoly in respect of any product shall
not create a margin as defined in paragraph
1 (b) greater than that represented by the max-
imum rate of import duty which may have
been negotiated in regard to that product
pursuant to Article 24.
3. With regard to any monopolized product
in respect of which a maximum margin has
Paragraph 2
(a) The words "or for use in the production of
goods for sale" were added in square brackets in
this paragraph as well as in paragraph 5 of
Article 15, for consideration at a later stage.
(b) Three delegates reserved their position
with regard to the insertion of these words.
Paragraph- 3
(a) The text contains two alternatives pre-
sented for consideration at the Second Session.
(b) Three delegates reserved their position
stating that they preferred the text adopted at
the First Session. Two of them stated that, if
they would have to choose between the two alter-
natives now recommended, they would prefer
Alternative A.
Article 32
Paragraph 1
The Committee felt that the technique of
negotiating price margins might not be prac-
ticable in the case of export monopolies, and
that it would thus bc preferable to set forth in
the Charter a general principle, the detailed
implementation of which would be left to the
negotiating parties.
Paragraph 3
(a) The Committee noted that the obligation.
of a monopoly to import from Members such
quantities of a monopolized product as would
be sufficient to satisfy the full domestic demands
might in effect result in a complete prohibition
28 been established pursuant to paragraph 1 (b)
or paragraph 2 of this Article, the monopoly
shall, as far as administratively practicable,
and subject to the other provisions of this
Charter, import [from Memberil and offer
for sale at prices charged within such max-
imum margin such quantities of the product
as will be sufficient to satisfy the full domestic
demand for the imported product, account
being taken of any rationing to consumers of
the imported and like domestic product which
may be in force at that time.
4. In applying the provisions of this Article,
due regard shall be had for the fact that some
monopolies are established and operated
mainly for revenue purposes.
Article 33
Expansion of trade by complete state monop-
olies of import trade
[Any Member establishing or maintaining
a complete or substantially complete monop-
oly of its import trade shall promote the ex-
pansion of its foreign trade with the other
Members in consonance with the purposes of
this Charter. To this end such Member shall
negotiate with the other Members an arrange-
ment under which, in conjunction with the
granting of tariff concessions by such other
Members, and in consideration of the other
benefits of this Chapter, it shall undertake to
import in the aggregate over a period prod-
ucts of the other Members valued at not less
than an amount to be agreed upon. This pur.
chase arrangement shall be subject to periodic
adjustment.]
SECTION F. EMERGENCY PROVISIONS-
CONSULTATION
Article 34
Emergency action on imports of particular
products
1. If, as a result of unforeseen develop-
ments and of the effect of the obligations in-
curred under or pursuant to this Chapter, any
product is being imported into the territory
of anv Member in such increased quantities
and under such conditions as to cause or
threaten serious injury to domestic producers
of like or directly competitive products (or,
in the case of a product which is the subject
of a concession with respect to a preference,
is being imported under such conditions as
to cause or threaten serious injury to pro-
ducers in a territory which receives or re-
ceived such preference) , the Member shall be
free to suspend the obligation in respect of
such product in whole or in part, or to with-
draw or modify the concession to the extent
and for such time as may be necessary to
prevent 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 in-
terest as exporters of the product concerned,
an opportunity to consult with i; in respect
of the proposed action. In critical and excep-
tional circumstances such action may be taken
provisionally without prior consultation, Pro-
of imports of the product from non-Members.
This result, it is felt, could not have been in-
tended. However, in view of the doubt expressed
by certain delegates regarding the effect of de-
leting the phrase "from Members", these words
have been placed in square brackets for consid-
eration at the Second Session.
(b) The Committee considered paragraph 5,
Section A, Part II, Chapter IV of the Report of
the First Session and decided that it was not prac.
ticable to write into Article 32 or 33 provisions
for state monopolies corresponding to those ap-
plying to private monopolies according to Chap-
ter VL It was therefore decided to disregard this
factor in the draft of Article 32, and to recom-
mend the insertion of the words "public or" in
paragraph 1(a) of Article 39 so as to place equiva-
lent obligations on public and private monopolies
without discrimination.
At the First Session it was decided that Article
33 should be left for consideration at a later stage.
The Committee did not feel itself called upon
to consider this Article. It is reproduced in square
brackets above as given in the United States
Draft Charter.
Article 34
Paragraph 1
The words "is being imported under such con-
ditions as to cause or threaten serious injury"
were added to the words enclosed in brackets.
The words "The Member shall be free to sus-
pend the obligation in respect of such products
in whole or in part, or to withdraw the conces-
sion" were substituted for "the Member shall be
free to withdraw the concession, or suspend the
obligation, in respect of such product, in whole
or in part, or to modify the concession".
Paragraph 2
(a) It was decided to divide paragraph 2, as
adopted at the First Session, into two paragraphs,
the second of which (now paragraph 3) refers to
the situation arising in cases when the stipulated
consultation does not lead to agreement among
the Members concerned.
(b) Three delegates maintained the view their
delegations had expressed at the First Session
that it was undesirable to permit action under
Article 34 without prior consultation even in
emergency circumstances. One delegate also main.
29 vided that consultation shall be effected im-
mediately following upon the taking of such
action.
3. If agreement among the interested Mem-
bers with respect to the action is not reached,
the Member which proposes to take or con-
tinue the action, shall, nevertheless, be free
to do so, and if such action is taken or con-
tinued, the affected Members shall then be
free, not later than sixty days after such action
is taken, to suspend, upon the expiration. of
thirty days from the day on which written
notice of such suspension is received by the
Organization, the application to the trade of
the Member taking such action, of such sub-
stantially equivalent obligations or concessions
under this Chapter the suspension of which
the Organization does not disapprove. In
cases of abuse the Organization may authorize
an affected Member to suspend obligations or
concessions in addition to those which may be
substantially equivalent to the action origin-
ally taken.
Article 35
Consultation-Nullification or impairment
1. 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 cus-
toms regulations and formalizes, anti-dump-
ing and countervailing duties, quantitative
and exchange regulations. subsidies, state-
trading operations, sanitary laws and regula-
tions for the protection of human, animal or
plant life or health, and generally all matters
affecting the operation of this Chapter; and
shall, in the course of such consultation, pro-
vided the other Member with such informa-
tion as will enable a full and fair appraisal of
the situation which is the subject of such rep-
resentations.
2. If any Member should consider that any
other Member is applying any measure,
whether or not it conflicts with the terms of
this Charter, or that any situation exists,
which has the effect of nullifying or impairing
any object of this Charter, the Member or
Members concerned shall give sympathetic
consideration to such written representations
or proposals as .nay be made with a view to
effecting a satisfactory adjustment of the mat-
ter. If no such adjustment can be effected, the
matter may be referred to the Organization,
which shall, after investigation, and, if neces-
sary after consultation with the Economic
and Social Council of the United Nations and
any appropriate intergovernmental organiza-
tions, make appropriate recommendations; to
the Members concerned. The Organization,
if it considers the case serious enough to jus-
tify such action, may authorize a Member or
Members to suspend the application to any
other Member or members of such specified
obligations or concessions under this Chapter
as may be appropriate in the circumstances.
If such obligations or concessions are in fact
suspended. any affected Member shall then be
free, not later than sixty days after such action
is taken, to withdraw from the Organization
upon the expiration of sixty days from the day
on which written notice of such withdrawal is
received by the Organization.
SECTION G. RELATIONS WITH NON-MEMBERS
Article 36
Contractual relations with non-members.
Treatment of the trade of non-members
tained that if action without prior consultation
was permitted to a Member, immediate counter-
action by other affected Members should also be
permitted.
Paragraph 3
The Committee considered it desirable that
the retaliatory action permissible under this para-
graph should not be unnecessarily delayed. Ac-
cordingly, it suggests the shortening from sixty
to thirty days of the period to be observed from
the date on which written notice of the suspen-
sion of obligations or concessions is received by
the Organization.
Article 35
Paragraph 1
(a) The examples of matters that may be sub-
ject to representations, enumerated in the first
part of this paragraph, were added to by inclu-
sion of the words "anti-dumping and counter-
vailing duties" and "subsidies".
(b) One delegate reserved his position for the
Lime being regarding the insertion of "anti-dump-
ing and countervailing duties".
(c) A number of delegates suggested insertion
of the words "without prejudicing the legitimate
business interests of particular private or state
trading enterprises," after "such information as
will". One delegate was strongly in favour of the
inclusion of these words which, he considered,
expressed the intentions of the First Session (cf.
page 17, Section E: I(iv) of the Report).
(d) One delegate, supporting the remarks made
by the last-mentioned delegate, declared that if
the reference to the legitimate business interests of
public and private enterprises were not included,
he preferred restoration of the text of the First
Session (deleting the words from "and shall, in
the course," etc.).
Article 36
At its First Session, the Preparatory Committee
decided to Ieave Article 36 for consideration at
a later stage. The Drafting Committee did not
discuss this Article.
30 SECTION H. GENERAL EXCEPTIONS
Article 37
General exceptions to chapter V
Subject to the requirement that such meas-
ures 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 re-
striction on international trade, nothing in
Chapter V shall be construed to prevent the
adoption or enforcement by any Member of
measures:
The text of this Article, as given in the United
States Draft Charter, is reproduced below for
reference:
"1. No Member shall seek exclusive or pref-
erential advantages for its trade in the territory
of any non-Member which would result, direct-
ly or indirectly, in discrimination in that :er-
ritory against the trade of any other Member.
"2. No Member shall be a party to any agree-
ment or other arrangement with any non-
Member under which such non-Member shall
be contractually entitled to any of the bene-
fits of this Charter.
"3. With regard to countries which, although
eligible for membership, have not become
Members or have with-drawn from the Or-
ganization, no Member shall, except with the
concurrence of the Organization, apply to the
trade of such countries the tariff reductions
effected by such Member pursuant to Article
18. This paragraph shall become effective
upon the expiration of one year from the date
on which the Organization is established:
Provided, That this period may be extended
by the Organization for further periods not
to exceed six months each.
"4. Members undertake to review any inter-
national obligations they may have which
would prevent them from giving full effect to
paragraphs 1 and 2 of this Article and, if neces-
sary for that purpose, to terminate such obli-
gations either by agreement or in accordance
with their terms."
- Article 37
GENERAL COMMENTS
(a) Article 32 of the United States Draft Cîar-
ter (corresponding to Article 37) contains the
following item:
"(1) imposed in accordance with a deter-
mination or recommendation of the Organiza-
tion formulated under paragraphs 2, 6 or 7 of
Article 55" (the present Article 66).
The Committee considered that the articles
referred to in Article 66 covered adequately the
exception considered under the item quoted
above and hence was of the opinion that this
item should not be included in Article 37. One
delegate, however, felt that deletion of this item
would involve that the determination and recom-
mendations tinder paragraphs 6 and 7 of Article
66 would still have to conform to the provisions
(a) Necessary to protect public morals;
(b) For the purpose of protecting human,
animal or plant life or health, if corresponding
domestic safeguards under similar conditions
exist in the importing country;
(c) Relating to fissionable materials;
(d) Relating to the traffic in arms, ammu-
nition and implements of war and to such
traffic in other goods and materials as is car-
ried on for the purpose of supplying a military
establishment;
(e) In time of war or other emergency in
international relations, relating to the pro-
of Chapter V, unless they were waived by a two-
third majority under the provisions of para-
graph 2 of Article 66. The proposed change
would thus in his opinion involve a material
deviation from the general opinion at the First
Session and from the original text.
(b) One delegate suggested that Article 37
should contain a provision permitting a Member
to prohibit the importation of any commodity,
the production of which is prohibited domesti-
cally.
(c) As it seemed to be generally agreed that
electric power should not be classified as a com-
modity, two delegates did not find it necessary
to reserve the right for their countries to prohibit
the export of electric power.
(d) One delegate maintained a suggestion by
his delegation at the First Session to the effect
that a paragraph should be added to permit
measures "temporarily imposed to prevent, arrest
or relieve conditions of social' disturbance,
natural calamity or other national emergencies,
provided that such measuresare withdrawn as
soon as the said conditions cease to exist". It
was suggested that paragraph 2 (b) of Article
25 covers this point to a certain extent.
(e) One delegate suggested that a Member
should be allowed temporarily to discriminate
against the trade of another Member when this
is the only effective measure open to it to retali.
ate against any discrimination practiced by that
Member in matters outside the purview of the
Organization, pending a settlement of the issue
through the United Nations. (cf. the reservation
by the same delegate regarding Article 23-Boy-
cotts).
SPECIFIC COMMENT
Sub-paragraphs (a) and (b)
One delegate pointed out that his country's
restrictions on the importation, production and
sale of alcoholic beverages had as its chief object
the promotion of temperance. He therefore con-
sidered that the taxation and the price policy of
its state liquor and wine monopoly was covered
by these subparagraphs.
Sub-paragraph (b)
Six delegates preferred the following wording:
"necessary to protect human, animal or plant
life or health."
Sub-paragraph (c)
One delegate reserved his position on item (c).
31 tection of the essential security interests of a
Member;
(f) Relating to the importation or exporta-
tion of gold or silver;
(g) Necessary to secure compliance with
laws or regulations which are not inconsistent
with the provisions of Chapter V, such as,
those relating to customs. enforcement, de-
ceptive practices, and the protection of pat-
ents, trade marks and copyrights;
(h) Relating to the products of prison
labour;
(i) Imposed for the protection of national
treasures of artistic, historic or archaeological
value;
(j) Relating to the conservation of exhaust-
ible natural resources if such measures are
taken pursuant to international agreements or
are made effective in conjunction with restric-
tions on domestic production or consump-
tion; or
(k) Undertaken in pursuance of obligations
under the United Nations Charter for the
maintenance or restoration of international
peace and security.
SECTION I. . TERRITORIAL APPLICATION
Article 38
Territorial application of chapter V-Frontier
traffic-Customs unions
1. The provisions of Chapter V shall apply
to the customs territories of the Members. If
there are two or more customs territories un-
der the jurisdiction of any Member, each such
customs territory shall be considered as though
it were a separate Member for the purpose of
interpreting the provisions of Chapter V.
2. The provisions of Chapter V shall not be
construed to prevent:
(a) Advantages accorded by any Member
to adjacent countries in order to facilitate
frontier traffic; or
(b) The formation of a customs union,
Provided that the duties and other regulations
of commerce imposed by any such union in
respect of trade with Members shall not on
the whole be higher or more stringent than
the average level of the duties and regulations
of commerce applicable 'in the constituent
territories prior to the formation of such
union.
3. Any Member proposing to enter into a
customs union shall consult with the Organi-
zation and shall make available to it such in-
formation regarding the proposed union as
will enable the Organization to make such
reports and recommendations to Members as
it may deem appropriate.
4. The Members recognize that there may
in exceptional circumstances be justification
for new preferential arrangements requirin"
an exception to the provisions of Chapter V.
Any such exception shall conform to the cri-
teria and procedures which may be established
by the Organization under paragraph S of
Article 66.
Sub-paragraph (1)
One delegate raised the question whether this
*sub-paragraph should refer to silver which is an
ordinary commodity in world trade.
Sub-paragraph (j)
(a) One delegate maintained the suggestion
made by his delegation at the First Session that the
words following upon "natural resources" should
be deleted. Two other delegates maintained their
support of this suggestion by the delegate for
India.
(b) One delegate maintained his proposal that
the words "or other" be added before "resources".
Article 38
Paragraph 1
The representative of the International Mone-
tary Fund pointed out that he was unable at the
present stage to express an opinion on the impli-
cations of this paragraph on Articles 26, 28
and 29.
Paragraph 2
One delegate suggested that sub-paragraph (b)
should begin with the words "the formation,
32
including its initial transitional stage, of a union"
etc. This amendment was supported by another
delegate. During the discussion reference was
made to the fact that the wording adopted at
the First Session permits of measures which in
fact represent a transition towards a custom
union.
Paragraph 3
One delegate drew attention 20 a suggestion
made by his delegation at the First Session ask-
ing that provision should be made in this par.
graph so as to allow continuation of his country's
special arrangements with certain neighbouring
islands.
Paragraph 4
Two delegates maintained reservations made
by their delegations at the First Session in favour
of special treatment of regional preferences (para
graph 5(c), Section A Chapter III, Part Il of the
Report). One of these delegates objected to the
application of Article 66 in the case in question
since in practice this might imply that a two-third
majority would be required for approving re-
gional preferences. Another delegate associated
himself with this reservation. 5. For the purpose of this Article a customs
territory shall be understood to mean any
territory within which separate tariffs or other
regulations of commerce are maintained with
respect to a substantial part of the trade of
such territory. A customs union shall be un-
derstood to mean the substitution of a single
customns territory for two or more customs
territories, so that all tariffs and other re-
strictive regulations of commerce as between
the territories of members of the union are
substantially eliminated and substantially the
same tariffs and other regulations of commerce
are applied by each of the members of the
union to the trade of territories not included
in the union.
33 CHAPTER VI. RESTRICTIVE BUSINESS
PRACTICES
Article 39
Policy towards restrictive business practices
1. Members shall take appropriate meas-
ures, individually or through the Organization
or in both ways, to prevent business practices
affecting international trade which restrain
competition, limit access to markets or foster
monopolistic control whenever such practices
have harmful effects on the expansion of pro-
duction and trade and the maintenance in all
countries of high levels of real income or im-
pair any of the purposes of the Organization
as set forth in Article l.
2. Without limiting the generality of par-
agraph 1 of this Article, the practices listed in
paragraph 3 below shall be subject to investi-
gation in accordance with the procedure with
respect to complaints provided by the rel-
evant Articles of-this Chapter, if the Organi-
zation considers them to have or to be about
to have any of the harmful effects enumerated
in paragraph 1 of this Article, whenever
(a) They are engaged in or made effective
by one or more public or private commercial
enterprises or by a combination, agreement
or other arrangement between commercial
enterprises, whether between private commer-
cial enterprises, between public commercial
enterprises, (i.e., trading agencies of govern-
ments or enterprises in which there is effec-
tive public control), or between private and
public commercial enterprises; and
(b) Such commercial enterprises, individ-
ually or collectively, possess effective control
of trade among a number of countries in one
or more products.
3. The practices referred to in paragraph
2 of this Article are as follows:
(a) Fixing prices or terms or conditions to
be observed in dealing with others in the pur-
chase, sale or lease of any product;
(b) Excluding enterprises from any terri-
torial market or field of business activity, al-
locating or dividing any territorial market or
field of business activity, allocating customers,
or fixing sale or purchase quotas;
(c) Discriminating against particular en-
terprises whether by boycott or otherwise;
(d) Limiting production or fixing produc-
tion quotas;
GENERAL COMMENTS
Chapter VI
(a) A number oi delegates maintained their
reservation against the exclusion of services from
the purview of Chapter VI. One delegate held
the opinion that services fell under the terms of
reference of the Preparatory Committee and that
in this respect there was no necessity to request
a ruling from the Economic and Social Council.
(b) Several delegates maintained the reserva-
tions which their delegations had made at the
First Session regarding the compulsory registra-
tion of restrictive business practices with the
Organization. One delegate maintained his
reservation that the register of restrictive busi-
ness practices kept by the Organization should
bc given some degree of publicity.
SPECIFIC COMMENTS
Article 39
Paragraph 1
A suggestion by one delegate to include the
mention of economic development was met by
the reference to all the purposes of the Organiza-
tion which implicitly included economic de-
velopment.
Paragraph 2
3. In the first sentence the words "in accord-
ance with the procedure with respect to com-
plaints provided by the relevant articles of this
Chapter" were inserted in order to make it clear
that the investigation procedure provided for in
Article 40 should only follow upon a specific
complaint in accordance with Article 40, and
not as a consequence of studies undertaken by
34
the Organization in accordance with Article 41.
The Committee was not certain whether this
addition did not constitute a substantive change,
by limiting the authority of the Organization to
investigate restrictive business practices on its
own initiative. The Committee decided to in-
clude the sentence but to refer the question of
the substantive change to the Second Session.
Paragraph 2(a)
(n) The term "public control" was substituted
for the teri- "government control" to show that
enterprises under the control of subordinate
public bodies, such as municipalities and others,
also fall under this sub-paragraph.
(b) The words "public or" were inserted be-
fore "private commercial enterprises" to avoid
any discrimination in the substance of the obli-
gations placed on the two types of enterprise. It.
was not found practicable to draft Article 32 and
33 in such a way as to include the obligations
undertaken by state monopolies regarding Re-
strictive Business Practices. One delegate re-
served his position on this insertion.
(c) Two deiegates reserved their position with
regard to the inclusion of public commercial
enterprises.
(d) One delegate considered that the changes
in paragraph 2 constitute a substantive amend-
ment and preferred to express his final position
in this matter at the Second Session.
Paragraph 3(c)
.This sub-paragraph was reworded as it was
considered that boycotts constituted not a spe-
cific practice but only a special case of dis-
crimination. (e) Suppressing the application or develop-
ment of technology or invention, whether
patented or unpatented;
(9 Extending the use of rights under pat-
ents, trade marks or copyrights to matters not
properly within the scope of the authorized
grant, or to products or conditions of produc-
tion, use or sale which are not the immediate
subjects of the authorized grant.
Article 40
Procedure with respect to complaints and
conferences
1. The Organization shall
(a) arrange, if it considers such action to be
justified, for particular Members to take part
in a conference requested by any Member
which considers that any particular practices
exist which have or are about to have the ef-
fect described in paragraph 1 of Article 39:
(b) consider each written complaint sub-
mitted by any Member or submitted with the
authorization of a Member by any affected
person, organization or business entity within
that Member's jurisdiction, claiming that par-
ticular practices exist which have or are about
to have the effect described in paragraph I of
Article 39, and prescribe the minimum in-
formation to be included in such complaints;
(c) consider and request each Member con-
cerned to furnish such information as the Or-
ganization may deem necessary including, in-
formation or data from commercial enter-
prises within its jurisdiction, and then deter-
mine whether further investigation is justi-
fied;
(d) if it considers that further investiga-
tion is justified, notify all Members of each
such complaint, request the complainant or
any member to provide such information rele-
vant to the complaint as the Organization may
deem necessary and conduct or arrange for
hearings provided that any Member and thc
parties alleged to have engaged in the practice
shall have the opportunity to be heard at such
hearings.
(e) review all information available and
determine whether the practices in question
have or are about to have the effect described
in paragraph 1 of Article 39.
2. The Organization shall
(a) report fully to all Members its deter-
mination and the reasons therefor; if it finds
that the practices have had [or are about to
have] the effect described in paragraph 1 of
Article 39, it shall request each Member con-
cerned to take every possible action to prevent
the continuance or recurrence of the prac-
tices, and may recommend to the Members
concerned remedial measures to be carried out
in accordance with their respective laws and
procedures,
(b) request all Members concerned to re-
port fully the action they have taken to achieve
these results;
(c) prepare and publish, as soon as possible
Paragraph 3(e)
The words "or development" were added.
Paragraph 3 (f)
(a) The words "of the authorized grant" were
added to clarify the wording.
(b) One delegate maintained his reservation
regarding the. highly technical character of this
sub-paragraph.
Article 40
GENERAL COMMENTS
(a, One delegate maintained the. reservation
his delegation had made at the First Sessions re-
garding the reference of complaints to the Inter-
national Court of Justice.
(b) One delegate's rearrangement and partial
redraft of Article 40 was referred to the Second
Session.
SPECIFIC COMMENTS
Paragraph 1(b)
(a) Two delegates suggested the following for-
mulation: "consider each written complaint sub-
mitted by a Member on its own behalf or on
behalf of any affected person, organization or
business entity, within that Member's jurisdir-
tion". The Committee to retain the text ap-
proved at the First Session merely substituting
the word "authorization" for "permission", and
decided to refer the issue to the Second Session.
(b) The Committee wished to state that in its
opinion it would be one of the first tasks of the
Organization, once a complaint had been re-
ceived, to approach for information those Mem-
bers within whose jurisdiction the person or
business entity alleged to be engaged in the
restrictive business practice was operating.
Paragraph l(e)
The Commiutee inserted the words "or are
about to have" in order to make the text con-
sistent with the wording of paragraph 2, of Ar-
ticle, 39.
Paragraph 2(a) *
1. Three delegates objected to the insertion of
the clause "or are about to have" because they
considered such an insertion amounted to a sub-
stantive change by increasing the authority of
the Organization. The Committee consequently
put the phrase into square brackets for decision
at the Second Session.
Paragraph 2(c)
The words "provisionally or finally closed"
were substituted for the word "completed" to
make it clear that the Organization would not
always be obliged to complete its enquiries, but
if its findings so warranted, it could temporarily
discontinue investigations.
35 after enquiries have been provisionally or
finally closed, reports on all complaints dealt
with under paragraphs 1 (d) of this Article,
showing fully its decisions, findings or other
conclusions, the reasons therefor and any ac-
tion which the Organization has recommended
to the Members concerned; Provided, that
(i) publication of such reports or any
portion thereof may be withheld if it deems
this course justified; and
(ii) the Organization shall not, if a Mem-
ber so requests, disclose confidential infor-
mation furnished by that Member which
would materially damage the legitimate
business interests of a commercial enter-
prise.
(d) report to all Members and make public
if it deems desirable, the action which has
been taken by the Members concerned to
realize the purposes described in paragraph 2
(a) of this Article.
Article 41
Studies relating to restrictive business
practices
1. The Organization may
(a) conduct studies, either on its own initi-
ative or at the request of any Member, or of
the United Nations, or of any specialized
agency brought into relationship with the
United Nations, relating to
(i) types of restrictive business practices
in international trade;
(ii) conventions, laws and procedures
concerning for example incorporation, com-
pany 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;
(b) request information from Memubers in
connection with such studies.
2. The Organization may
(a) make recommendations to Members
concerning such conventions, laws and pro-
cedures as are relevant to their obligations
under this Chapter;
(b) arrange conferences for purposes of
general consultation on any matters relating
to restrictive business practices.
Article 42
Obligation of Members
1: In order to implement the preceding
Articles of tlhis Chapter, each Member shall
(a) take all possible steps by legislation or
otherwise to ensure that private and public
commercial enterprises within its jurisdiction
do not engage in practices which have the ef-
fect described in paragraph 1 of Article 39;
(b) take fullest account of the Organization's
determinations, requests and recommenda-
tions r rade under paragraph 2 (a) of Article
40 and determined appropriate action in ac-
cordance with its system of law and economic
organization to prevent within its jurisdiction
the continuance or recurrence of any practices
which the Organization find to have had [or
to be about to have] the effect described in
paragraph 1 of Article 39.
2. Each Member Shall
(a) establish procedures to deal with com-
plaints, conduct investigations, prepare infor-
mation and reports requested by the Organi-
zation and generally assist in preventing prac-
tices which have the effect described in para-
graph I of Article 39, these measures to be
taken in accordance with the particular sys-
tem of !aw and economic organization of the
country concerned;
(b) conduct such investigations as may be
necessary and practicable to secure informa-
tion requested by the Organization or to pre-
vent practices which have the effect described
in paragraph I of Article 39;
(c) furnish to the Organization, as promptly
as possible and to the fullest extent practi-
cable, such information as is requested by the
Organization under paragraphs I (c), (d) and
2 (b) of Article 40 and under paragraph 1 (a)
of Articie 41 provided that the Member
(i) may withhold confidential information
relating to its national security; or
(ii) on proper notification to the Organi-
Article 42
Paragraph i(b)
(a) The Committee decided to insert the phrase
"or to be about to have" in square brcke's be-
cause the same doubts regarding the substance
prevailed as in paragraph 2(a) of Article 40.
(b) Certain delegates reserved their position
with regard to the use of the wurd "Ctetermine"
36
~ ~ ~ ~ ~ ~ ~ ~~~~~rpacn
in the third line and suggested replacing it by
the words "in deciding as to".
Paragraph 2(c)(ii)
(a) This clause was inserted to provide for the
adequate protection of legitimate business in-
terests of commercial enterprises against damag-
ing disclosures. Upon the motion of one delegate,
Committee III of the First Session in its last
meeting had agreed to incorporate such a pro. zation, may withhold information which is
not essential to the Organization in under-
taking an adequate investigation and which,
if disclosed, would materially damage the
legitimate business interests of a commer-
cial enterprise. In notifying the Organiza-
tion that it is withholding information pur-
suant to this clause, the Member shall
indicate the general character of the infor-
mation -withheld;
(d) report, as requested by the Organization
under paragraph 2 (b) of Article 40, the action
taken, independently or in concert with other
Members, to implement recommendations
made by the Organization under paragraph 2
(a) of Article 40, and, in cases in which no
action is taken, to explain to the Organization
the reasons therefor and discuss the matter
further with the Organization if requested to
do so;
(e) take part in conferences upon the re-
quest of the Organization in accordance with
paragraph 1 (a) of Article 40 and paragraph
2 (b) of Article 41.
Article 43
Supplementary enforcement arrangements
1. Members may co-operate with each other
in prohibitive, preventive or other measures
for the purpose of making more effective any
remedial order issued by a duly authorized
agency of any Member in furtherance of the
objectives of this Chapter.
2. Members participating in or intending
to participate in such co-operative action shall
notify the Organization.
Article 44
Continued effectiveness of domestic measures
against restrictive business practices
Any act or omission to act on the part of the
Organization shall not preclude any Member
from enforcing any national stature or decree
directed towards preventing monopoly or re-
straint of trade.'
Article 45
Exceptions to t'ze Provisions of this Chapter
1. The obligations in this Chapter shall not
apply to
(a) inter-governmental commodity arrange-
ments meeting the requirements of Chapter
VII;
(b) the international arrangements excepted
in Article 59.
2. Notwithstanding the foregoing para-
graph the Organization may make recom-
mendations to Members and to appropriate
inter-governmental organizations concerning
any features of the arrangements referred to
in paragraph I (b) of this Article which may
have the effect described in paragraph l of
Article 39.
vision into Chapter VI and this clause implements
this decision.
(b) Three delegates recorded a reservation
against the phrase "which is not essential to the
Organization in undertaking an adequate inves-
tigation", as a substantive departure from the
agreement reached at the First Session.
(e) take part in conferences upon the request of
the Organization in accordance with paragraph
1(a) of Article 40 and paragraph 2(b) of Article
41.
Paragraph 2(e)
(a) The Committee inserted a reference to
paragraph 1(a) of Article 40 because it believed
that the intention of the First Session had been
to include in this paragraph conferences under
Article 40 as well as conferences under Article
41; one delegate reserved his position.
Article 45
Paragraph 1
The Committee examined the desirability of re-
inserting paragraph 1 (c) of Article 40 of the
United States Draft Charter reading: "agreements
or understandings concerning railway transporta-
tion, aviation, shipping and telecommunication
services," into the text of Article 45, but in the
absence of general agreement it decided against
re-insertion.
Certain delegates desired to see services in-
cluded, others desired to see them partly or
wholly excluded. The Committee felt that the
matter was one of substance going beyond its
competence and decided to leave it for considera-
tion at the Second Session. One delegate pro.
posed that if this paragraph were re-inserted it
should read:
"Inter-governmental agreements under the
sponsorship of the Economic and Social Coun
cil of the United Nations, the International
Trade Organization and other specialized
agencies concerning railway transportation,
aviation, shipping and telecommunications
services".
37 CHAPTER VII.
INTER-GOVERNMENTAL
COMMODITY ARRANGEMENTS
SECTION A-INTER-GOVERNMENTAL COMMODITY
ARRANGEMENTS IN GENERAL
Article 46
Difficulties relating to primary commodities
The Members recognize that the relation-
ship between production and consumption of
some primary commodities may present spe-
cial difficulties. These special difficulties are
different ;n character from those which manu-
factured goods present generally. They arise
out of such conditions as the disequilibrium
between production and consumption, the ac-
cumulation of burdensome stocks and pro-
nounced fluctuations in prices. They may
have serious adverse effects on the interests
of producers and consumers, as well as wide-
spread repercussions jeopardizing general pol.
icies of economic expansion.
Article 47
Objectives of inter-governmental commodity
arrangements
Inter-governmental commodity arrange-
ments may be employed to enable countries
to overcome the special difficulties referred
to in Article 46 without resorting to action
inconsistent with the purposes of this Charter,
by achieving the following objectives:
(a) to prevent or alleviate the serious eco-
nomic problems which may arise when pro-
duction adjustment cannot bc effected by the
free play of market forces as rapidly as the
circumstances require;
(b) to provide, during the period which
*may lbe necessary, a framework for the con-
sideration and development of measures wvhich
*will have as their purpose economic adjust-
ments designed to promote tl;e expansion of
consumption or a shift of resources and man-
powver out of over-expancled industries into
new and productive occupations;
(c) to moderate pronounced fluctuations
in the price of a primary commodity above
and below the level which expresses the long
tern equilibrium between the forces of sup-
ply and demand [in order to achieve a reason-
able degree of stability on the basis of remu-
nerative prices to efficient producers without
unfairness to consumers];
(d) to maintain and develop the natural
resources of the world and protect them from
unnecessary exhaustion; and
(e) to provide for expansion in the pro-
duction of a primary commodity which is in
GENERAL COMMENTS
(a) When Article 36 is dealt with, the pro-
visions of Chapter VIl, which would allow non-
Members to participate in commodity arrange-
ments, will need to be taken into consideration
(b) One delegate reserved the position of hii
Government on the whole of Chapter VII inso-
far as its operation might interfere with the
production of primary commodities for home
consumption.
(c) In the Report of the First Session (Part
II, Chapter V, Section A, paragraph 3, the Com-
mittee was requested to examine the use of the
terms "primary", "agricultural", "mineral",
"commodity" and "product" throughout the
Charter, in order to ensure uniformity and con-
sistency in their application. The Committee
has found that the terms were properly used
throughout the Charter except in some cases
where amendments have been made. A further
note in this respect will be found in the com-
mentary to Article 60.
(d) Part II, Chapter V, Section D, paragraph
5, of the Report of the First Session referred
to the Committee suggestions concerning the
allocation of certain functions among the var-
ious organs of the Organization. These sug-
gestions were taken into account in the drafting
of Article 77 (Functions of the Commodity Com-
mission). However, it was not felt necessary to
specify in great detail the allocation of func-
dons as given on page 21 of the Report.
SPECIFIC COMMENTS
Article 47
Sub-paragraph (c)
One delegate stressed that the statement of
ectives of commodity arrangements should
clude provision for remunerative as well as
stable prices especially in view of the fact that in
certain countries, due to the lack of alternative
employment, production of a commodity con-
tinues even when not profitable. It was decided
to put an amendment proposed by this delegate
between square brackets as an addition and to
include in the amendment wording safeguard-
ing the interests of consumers.
Sub-paragraphs (d) and (e)
One delegate doubted the necessi~- of includ-
ing sub paragraphs (d) and (e), because they
pertain exclusively to shortage situations. With
reference to sub-paragraph (d), hc was of the
opinion that as conservation agreements were
by their nature regulatory they would have to
conform to the principles governing regulatory
agreements; however, the statement of the cir-
cumstances governing the use of regulatory agree-
ments formulated in Chapter VII did not appear
applicable to conservation agreements, because
it required the presence of a burdensome surplus
or widespread unemployment. As to sub-para.
graph (e), it was difficult to devise an objective
way of determining when a commodity was in
such short supply as to prejudice seriously the
interests of consumers. such short supply as seriously to prejudice the
interests of consumers.
Article 48
Special commodity studies
1. Any Member substantially interested in
the production, consumption or trade of a
particular primary commodity shall be en-
titled, if it considers that special difficulties
exist or are expected to arise regarding the
commodity, to ask that a study of that com-
modity be made.
2. Unless it resolves that a prima facie case
has not been established, the Organization
shall promptly invite the Members substan-
tially interested in the production and con-
sumption of or trade in the commodity to
appoint representatives to a Study Group to
make a study of the commodity. Non-Mem-
bers having a similar interest may also be
invited.
3. The Study Group shall, in the light of
an investigation of the root causes of the
problem, promptly report its findings regard-
ing the production, consumption and trade
situation of the commodity. If the Study
Group finds that special difficulties exist or
are expected to arise it shall make recom-
mendations to the Organization as to how
best to deal with such difficulties. The Or-
ganization shall transmit promptly to the
Members any such findings and recommenda-
tions.
Article 49
Commodity conferences
1. On the basis of the recommendations of
the Study Group or on the basis of informa-
tion about the root causes of the problems
agreed to be adequate by the Members sub-
stantially interested in the production, con-
sumption or trade of a particular primary
commodity, the Organization shall promptly
at the request of a Member having a substan-
tial interest, or may, on its own initiative,
convene an inter-governmental conference for
the purpose of discussing measures designed
to meet the special difficulties which have been
found to exist or are expected to arise.
2. Any Member having a substantial in-
terest in the production and consumption of
or trade in the commodity shall be entitled to
participate in the Conference, and non-Mem-
bers having a similar interest may be invited
by the Organization to participate.
Article 50
Relations with inter-governmental
organizations
1. Competent inter-governmental organiza-
tions, such as the Food and Agriculture Or-
ganization, shall be entitled:
(a) to submit to the Organization any rele-
vant study of a primary commodity;
(b) to ask that a study of a primary com-
modity be made.
2. The Organization may request any in-
ter governmental organization which it deems
to be competent, to attend or take part in the
work of a Study Group or of a Commodity
Conference.
Article 51
General principles of inter-governmental
commodity arrangements
Members undertake to adhere to the follow-
ing principles governing the operation of all
types of inter governmental commodity ar-
rangements:
(a) such arrangements shall be open ini-
tially to participation by any Member on terms
no less favourable than those accorded to any
other country and thereafter upon such terms
as may be approved by the Organization;
Article 49
Paragraph 3 of the text drafted at the First
Session was deleted, because it seemed that com-
modity arrangements recommended by the Con-
ference would have to conform to the principles
stated in Chapter VII. Furthermore, regulatory
agreements would have tp conform not only to
the provisions of Article 51, but also to those of
Article 53.
Article 51
GENERAL COMMENTS
A change from the text as drafted at the First
Session was made in the arrangement of the
paragraphs; paragraphs 1 and 2 remain with
minor drafting changes, as sub-paragraphs (a)
and (b). new sub-paragraphs (c) and (d) have
been added containing the substance of para-
39
graphs 2 and 3 of Article 53 of the Charter
drafted at the First Session, and sub-paragraphs
(e), (f), and (g) are the former paragraphs 3,45
and 6 respectively. Paragraph 4 of the former
text has been transferred from Article 51 to
Article 53.
SPECIFIC COMMENTS
Sub-paragraphs (c) and (d)
(a) These paragraphs have been included be-
cause the Committee was of the opinion that the
provisions contained in them applied to all
commodity arrangements and not to regulatory
agreements alone.
(b) The text of the second part of sub-par. (c)
was changed in order to clarify the position of
non-participating Member countries. (b) non-Members may be invited by the
Organization to participate in such arrange-
ments and the provisions of sub-paragraph
(a) of this Article applying to Members shall
apply to any non-Member so invited;
(c) under such arrangements participating
countries shall arrange for equitable treatment
as between non-participating Members and
participating countrics affording advantages
commensurate with obligations accepted by
non-participating Members;
(d) participating countries shall, in mat-
ters the subject of such arrangements, afford
non-participating Members treatment no less
favourable than that accorded to any non-
Member which does not participate in the
arrangement;
(e) such arrangements shall include provi-
sion for adequate participation of countries
substantially interested in the importation or
consumption of the commodity as well as those
substantially interested in its exportation or
production;
(f) such arrangements shall provide, where
practicable, for measures designed to expand
world consumption of the commodity;
(g) full publicity shall be given to any inter-
governmental commodity arrangement pro-
posed or concluded, to the statements of con-
siderations and objectives advanced by the
proposing Members, to the nature and devel-
opment of measures adopted to correct the
underlying situation which gave rise to the
arrangement and, periodically, to the opera-
tion of the arrangement.
SECTION B-INTER-GOVERNMENTAL COMMODITY
ARRANGEMENTS INVOLVING THE REGULATION
OF PRODUCTION, TRADE AND PRICES
Article 52
Circumstances governing the use of reg-
ulatory agreements
Members agree that regulatory agreements
may be employed only when it is determined
that:
(a) a burdensome surplus of a primary com-
modity has developed or is expected to de-
velop, which would cause serious hardship to
producers, among whom are small producers
who account for a substantial portion of the
total output, and these conditions cannot be
corrected by normal market forces alone, in
time to prevent such hardship, because char-
acteristically, in the case of the primary com-
modity concerned, a substantial reduction in
price does not readily lead to a significant in-
crease in consumption nor to a significant
decrease in production; or
(b) widespread unemployment or under-
employment in connection with a primary
commodity, arising out of difficulties of the
kind referred to in Article 46, has developed
or is expected to develop, which would not be
corrected by normal market forces alone in
time to prevent widespread and undue hard-
ship to workers, because characteristically, in
the case of the industry concerned, a substan-
tial reduction in price does not readily lead to
a significant increase in consumption but to
the reduction of employment and because
areas in which the commodity is produced in
Sub-paragraph (g)
After some discussion the Committee agreed
to maintain the words "full publicity" on the
understanding that the application of this re-
quirement to any "proposed" arrangement
would not entail publicity in regard to discus-
sions and verbatim records before the arrange-
ment began operating. It was also agreed to
stipulate that the operation of the agreement
should be given publicity periodically.
Article 52
Sub-paragraph (a) and (b)
(a) It was felt that the phrase "because charac-
teristically, in the case of the primary commodity
concerned, a substantial reduction in price does
not lead to a significant . . ;" is only to be con-
sidered as a descriptive one and is not to be
interpreted in the sense that a substantial reduc-
tion in price would be regarded as a pre-requisite
for the adoption or extension of a regulatory
agreement.
(b) One delegate felt that the problems of
countries with a small volume of international
trade as distinct from those of small producers
did not receive sufficient attention in the text as
drafted at the First Session; it is particularly in
such countries that hardships to a substantial part
of the economy are liable to hamper the well-
being of the country, even when there are no
small producers. He therefore suggested the fol-
lowing amendment to paragraph 1 of the text
drafted at the First Session:
After "serious hardship to producers" delete
"among whom are small producers who ac-
count for a substantial portion of the total out-
put" and substitute "or affecting the economy
of one or more of the Member countries, which
jointly or individually represent a substantial
portion of the total output; or".
It was the general opinion of the Drafting
Committee that, as the hardships this proposal
was intended to cover would be the outcome of
unemployment or under-employment, they were
in fact covered by sub-paragraph (b) of Article
52.
Sub-paragraph (b)
It was decided to provide for the possible use
of regulatory agreements not only when unem-
ployment but also when under-employment exists.
40 substantial quantity do not afford alternative
employment opportunities for the workers in-
volved; or
(c) the Organization finds that, for a com-
modity other than a primary commodity, in
addition to the circumstances set forth in
either (a) or (b) above, exceptional circum-
stances justify such action. Agreements under
this sub-paragraph shall be governed not only
by the principles set forth in this Chapter
but also by any other requirements which the
Organization may establish.
Article 53
Additional principles governing regulatory
agreements
Members undertake to adhere to the follow-
ing principles governing regulatory agree-
ments in addition to those stated in Article 51:
(a) Members agree not to enter into any
new regulatory agreement unless it has been
recommended by a conference called in ac-
cordance with Article 49. Nevertheless, Mem-
bers substantially interested in the production
and consumption of, or trade in, a particular
commodity may proceed by direct negotiation
to the conclusion of an agreement, provided
that it conforms to the other provisions of this
Chapter, if there has been unreasonable delay
in the proceedings of the Study Group or of
the Commodity Conference;
(b) such agreements shall be designed to as-
sure the availability of supplies adequate at all
times for world demand at reasonable [and
stable] prices [remunerative to efficient prod-
ucers];
(c) under such agreements participating
countries which are largely dependent for con-
sumption on imports of the commodity in-
Sub-paragraph (c)
The drafting change contained in sub-para-
graph. (c) was based on the consideration that
commodity arrangements concerning non-primary
products should not be easier to conclude than
those for primary commodities. The text as
drafted at the First Session was ambiguous and
might have been interpreted to mean that ar-
rangements for commodities other than primary
commodities could be concluded without a bur-
densome surplus or widespread unemployment
being in existence or expected.
Suggested Additional Paragraph:
The representative of the Food and Agricul-
tural Organization raised the question whether
the language of paragraphs 1 and 2 of Article 52
covers commodity agreements which might be de-
sired in order to promote price stability and ex-
panded production and consumption, as recom-
mended for basic foodstuffs in the Report of the
Preparatory Commission of the Food and Agri-
cultural Organization on World Food Proposals.
If not, he suggested the following changes in
Article 52:
Change the present sub-paragraph (c) to sub-
paragraph (d) and add a new paragraph (c) read-
ing as follows:
"(c) It is necessary to enable the producers-
and the governments concerned to carry for-
ward concerted programmes for the expansion
of aggregate world production and consump-
tion of a primary commodity or".
It was recognized that the matter was one for
consideration at the Second Session.
Article 53
GENERAL COMMENTS
There has been a change in the arrangement
of the paragraphs from the text drafted at the
First Session-paragraph 1 becomes sub-paragraph
(a), sub-paragraph (b) contains the substance
of former paragraph 4, sub-paragraph (c) is the
reformulation of paragraph 4 of Article 51 and
sub-paragraphs (d) and (e) are the former para-
graphs 5 and 6, respectively.
41
SPECIFIC COMMENTS
Sub-paragraph (b)
One delegate submitted an amendment which
it was decided to refer to the Second Session,
inserting it between square brackets. Another
delegate asked chat a "reasonable price" should
not be a price which does not cover the costs of
production.
Sub-paragraph (c)
(a) The transfer of this sub-paragraph from
Article 51 was motivated by the fact that the
equality of producers and consumers in repre-
sentation and in voting was of importance only
in regulatory agreements. One delegate reserved
his position concerning this transfer and two other
delegates were of the opinion that the whole text
of the sub-paragraph should be within square
brackets because the transfer from Article 51 con-
stituted a substantive change.
(b) There was substantial agreement in favour
of clarifying the text of that part of sub-paragraph
(c) which pertains to the position of countries
whose foremost interest is in the production and
consumption of a commodity, but not in its
trade. It was thought that in this respect the text
drafted at the First Session was subject to mis-
interpretation and a new text was devised in
order to avoid the possibility of the existence of
a third group of countries-the producers-con-
sumers-who in matters of voting might upset
the balance in favour of either importers or ex-
porters. Under the present wording, the pro-
ducers who at the same time are consumers may
in matters of representation and voting be in-
cluded according to their interests with either
importers or exporters. One delegate expressed
doubt as to the effect of the insertion of the
words: "according to its interests in the circum-
stances" and "within one or the other category
without altering the equality between the two",
and suggested that they be put between square
brackets.
(c) For sub-paragraph (c) one delegate pro-
posed the text of sub-paragraph (4) of Article 51
of the text drafted at the First Session: volved shall, in determinations made relating
to substantive matters, have together a voice
equal to that of those countries largely inter-
ested in obtaining export markets for the com-
modity, provided that any country which is
largely interested in the commodity but which
does not fall precisely under either of the
above categories, shall, according to its inter-
ests in the circumstances, have an appropriate
voice within one or the other category with-
out altering the equality between the two;
(d) such agreements shall, with due regard
to the need during a period of change for pre-
venting serious economic and social disloca-
tion and to the position of producing areas
which may be suffering from abnormal and
temporary disabilities, make appropriate pro-
vision to afford increasing opportunities for
satisfying world requirements from sources
from which such requirements can be sup-
plied in the most effective and economic
manner;
(e) participating countries shall formulate
and adopt a programme of economic adjust-
ment believed to be adequate to ensure sub-
stantial progress toward solution of the prob-
lem within the time limits of the agreement.
Article 54
Administration of regulatory agreements
1. Each regulatory agreement shall provide
for the establishment of a governing body,
herein referred to as a Commodity Council.
2. Each of the countries participating in an
agreement shall be entitled to have one rep-
resentative on the Commodity Council. These
representatives alone shall have the right to
vote. Their voting shall be determined in
such a way as to conform with the provisions
of sub-paragraph (c) of Article 53.
3. The Organization shall be entitled to ap-
point a non-voting representative to each
Commodity Council and may invite any com-
petent inter-governmental organization to
nominate a non-voting representative for ap-
pointment to a Commodity Council.
4. Each Commodity Council shall have a
non-voting chairman who, if the Council so
requests, shall be nominated by the Organiza-
tion.
5. The Secretariat of each Commodity
Council shall be appointed by the Council
after consultation with the Organization.
6. Each Commodity Council shall adopt
appropriate rules of procedure and regula-
tions regarding its activities, provided that
they are not found by the Organization to be
inconsistent with the principles and provisions
of this Charter.
7. Each Commodity Council shall make
periodic reports to the Organization on the
operation of the agreement which it admin-
isters. In addition, it shall make such special
reports as the Organization may specify or as
the Council itself considers to be of value to
the Organization.
8. The expenses of a Commodity Council
shall be borne by the participating countries.
Article 55
Provision for initial terms, review and renew-
al of regulatory agreements
No regulatory agreement shall remain in
force for more than five years, unless renewed,
"In such arrangements participating coun-
tries, . . . under either of the above classes,
shall have an appropriate voice;"
with the addition of:
"Provided also that said consuming or im-
porting countries will not oppose the adoption
of necessary measures to a reasonable price
increase for said product, when the price has
had an appreciable decrease as compared with
a prior representative period, or when current
prices do not cover total production costs and
would substantially affect the economy of one
or more Member-countries which represent a
considerable portion of the total output of said
products."
This delegate felt that this proposal did not
embody a substantive change and that the point
would be covered if the amendment proposed by
another delegate to sub-paragraph (c) of Article
47 were finally agreed. However, some delegates
understood that other stipulations of the Charter
covered the interests the above quoted text was
meant to cover.
Sub-paragraph (e)
It was felt that the phrase "substantial progress
42
toward solution of the problem" covered cases
where the agreement impeded a deterioration of
the situation.
Article 54
Paragraph 6
One delegate suggested a change in paragraph
6 in order to avoid the necessity for approval
by the Organization of every detailed rule of
procedure adopted by the Commodity Council.
It was agreed that an overall approval by the
Organization was sufficient and the text was
changed accordingly to allow rules of procedure
and regulations adopted by the Commodity
Council to stand unless the Organization de-
cided that they conflicted with the provisions
of the Charter.
Article 55
On the suggestion of one delegate, it was
agreed to make explicit provision for the with-
drawal of Members from commodity arrange-
ments. It was also agreed to add a reference
to the possibility of terminating an agreement
by mutual consent, even though the arrange-
ment had conformed to the principles of Chap-
ter VII. and no renewal shall be for a longer period
than five years. Renewal and termination of
such agreements shall be subject to the pro-
cedures established therein and renewed
agreements shall conform to the principles of
this Chapter. Regulatory agreements shall
also include provision for withdrawal of any
party. Periodically, at intervals no greater
than three years, the Organization shall pre-
pare and publish a review of the operation of
each agreement in the light of the principles
set forth in this Chapter. Moreover a reg-
ulatory agreement shall provide that if its
operation has failed substantially to conform
to the principles laid down in this Chapter,
participating countries shall revise the agree-
ment to conform to the principles, or shall
terminate it. When an agreement is termi-
nated, the Organization shall take charge of
archives and statistical material of the Com-
modity Council.
Article 56
Settlement of disputes
Any question or difference concerning the
interpretation of the provisions of a regu-
latory agreement or arising out of its operation
shall be discussed originally by the Commod-
ity Council. In the absence of agreement, the
question shall be referred to the Commodity
Commission for examination and recommen-
dation to the Executive Board. The Exec-
utive Board shall then issue a ruling in pur-
suance of the provisions of Article 86.
SECTION C-MISCELLANEOUS PROVISIONS
Article 57
Obligations of members regarding existing
and proposed commodity arrangements
1. Members shall transmit to the Organiza-
tion the full text of each inter-governmental
commodity arrangement in which they are
participating at the time of the coming into
force of their obligations under this Charter.
Members shall also transmit to the Organiza-
tion appropriate information regarding the
formulation, provisions and operation of such
arrangements. Members shall conform with
the decisions made by the Organization re-
garding their continued participation in any
such inter-governmental commodity arrange-
ment which, after review by the Organization,
shall have been found to be inconsistent with
the intentions of this Chapter.
2. Members shall transmit to the Organiza-
tion appropriate information regarding any
negotiations, looking to the conclusion of an
inter-governmental commodity arrangement,
in which they are participating at the time of
the coming into force of their obligations un-
der this Charter. Members shall also conform
with decisions made by the Organization re-
garding their continued participation in any
such negotiations. The Organization may
dispense with the requirement of a Study
Group or a Commodity Conference, if it
finds them unnecessary in the light of the ne-
gotiations.
Article 58
General undertaking by Members
Members, including Members not parties
to a particular commodity arrangement, shall
give the most favourable possible considera-
tion to any recommendation by a Commod-
ity Council for expanding consumption of
the commodity in question.
Article 59
Exceptions to provisions relating to inter-
governmental commodity arrangements
The provisions of Chapter VII shall not
apply:
(a) to inter-governmental commodity ar-
rangements which relate solely to the equit-
able distribution of commodities in short
supply, or to those provisions of inter-govern-
mental commodity arrangements which ap-
propriately relate to the protection of public
morals or the protection of human, animal
or plant life or health: provided, that such
arrangements are not used to accomplish re-
sults inconsistent with the objectives of Chap-
ter VI or Chapter VII. Members shall not
participate in such arrangements if they in-
volve the regulation of production, trade or
prices, unless authorized or provided for by a
multilateral convention subscribed to by a
majority of the countries affected or unless
operated under the Organization;
(b) to international fisheries or wildlife
conservation agreements with the sole ob-
Article 56
The reference to Article 71 was replaced by a
reference to Article 86.
Article 59
GENERAL COMMENTS
The Committee was of the opinion that ar-
rangements relating solely to the equitable dis-
tribution of commodities in short supply and
mentioned in this Article should be short-term
arrangements of a transitional character.
43
SPECIFIC COMMENTS
Sub-paragraph (b)
In order to ensure that the provisions of Chap-
ter VII should not apply to conservation agree-
ments relating to wildlife and fisheries and to
agreements made in accordance with the pro-
visions of Section E of Chapter V, it was decided
to group these agreements with the exceptions
contained in this Article. jective of conserving and developing these
resources or to agreements relating to the
purchase and sale of a commodity falling un-
der Section E of Chapter V; and
(c) to arrangements relating to fissionable
materials, to the traffic in arms, ammunition
and implements of war and to such traffic in
other goods and materials as is carried on for
the purpose of supplying a military establish-
ment, or in the time of war or other emerg-
ency in international relations, to the protec-
tion of the essential security interests of a
Member.
Article 60
Definitions
1. For the purposes of this Chapter, the
term "primary commodity" means any prod-
uct of farm, forest or fishery, or any mineral,
which enters world trade in substantial vol-
ume in a form customarily called primary, and
may include such a product on which minor
processing has been performed in preparation
for export. The term may also cover a group
of commodities, of which one is a primary
commodity as defined above and the others
are commodities (whether primary or non-
primary) which are so closely related to the
other commodities in the group that they can
conveniently be dealt with in a single arrange-
ment.
2. For the purposes of this Chapter, the
term "Member" or "non-Member" shall be
taken to mean a Member or non-Member of
the Organization with its dependent terri-
tories. If a Member or non-Member and its
dependent territories form a group, of which
one or more units are mainly interested in the
export of a commodity and one or more in
the import of the commodity, there may be
either joint representation for all the asso-
ciated territories or, where it is so desired,
separate representation for the territories
mainly interested in export and separate rep-
resentation for the territories mainly inter-
ested in import.
3. A regulatory agreement is an inter-gov-
ernmental commodity arrangement involving
regulation of the production, export or import
of a commodity or regulation of prices.
Article 60
Paragraph 1
(a) Acting upon the instructions of the First
Session, the Committee made more specific the
definition of a primary commodity, and particu-
larly to make clearer the inclusion of products
closely related to primary commodities within
the scope of commodity arrangements.
(b) One delegate reserved his position regard-
ing the inclusion of fishery products.
44
Paragraph 3
It was decided to delete the definition of
inter-governmental commodity arrangements
because the statement contained in paragraph
3 of the text drafted at the First Session was too
broad and furthermore the nature of inter-
governmental commodity agreements was im-
plicit in Chapter VII. CHAPTER VIII. ORGANIZATION
SECTION A-FUNCTIONS AND STRUCTURE OF THE
ORGANIZATION
Article 61
Functions
In addition to the functions provided for
elsewhere in this Charter, the Organization
shall have the following functions:
(a) to collect, analyze and publish infor-
mation relating to international trade, includ-
ing information relating to commercial policy,
business practices, commodity problems and
industrial and general economic development;
(b) to facilitate consultation among Mem-
bers on all questions relating to the provisions
of this Charter and to provide for the settle-
ment of disputes growing out of the provisions
of the Charter;
(c) to make recommendations for, and pro-
mote international agreement on measures
designed to improve the bases of trade and
to assure just and equitable treatment for the
enterprises, skills, capital, arts and technology
brought from one country to another, includ-
ing agreement on the treatment of foreign
nationals and enterprises, on the treatment of
commercial travellers, of commercial arbitra-
tion and on the avoidance of double taxation;
(d) generally to consult with and make
recommendations and, as necessary, furnish
advice and assistance to Members regarding
any matter relating to the purposes or the
operation of this Charter, and to perform any
other function appropriate to the purposes
and provisions of this Charter;
(e) to co-operate with the United Nations
and with other inter-governmental organiza-
tions for the purpose of furthering the attain-
ment, with an economy of effort, of the eco-
nomic and social objectives of the United
Nations and the restoration and maintenance
of international peace and security.
Article 62
Structure
The Organization shall have as its principal
organs a Conference, an Executive Board,
Commissions as established under Article 72,
and a Secretariat.
SECTON B-THE CONFERENCE
Article 63
Membership
1. The Conference shall consist of the rep-
resentatives of the Members of the Organiza-
tion.
2. Each Member shall have one representa-
tive and may appoint alternates and advisers
to its representative to the Conference.
3. No representative to the Conference
may represent more than one Member.
Article 64
Voting
1. Each Member shall have one vote in the
Conference.
2. Except as may be otherwise provided for
in this Charter, decisions of the Conference
shall be taken by a majority of the Members
present and voting.
* See Annexure fl.
Article 61
Functions
GENERAL COMMENTS
The First Session instructed the Drafting Com-
mittee to examine Article 61 with a view to
insuring that its provisions were consistent with
other provisions of the Charter, especially with
those relating to Employment Policy and Indus-
trial Development. The Committee, after thor-
ough discussion of all relevant issues decided
against the course of spelling out specifically all
the functions mentioned elsewhere in the
Charter.
Article 64
(a) The First Session, referring to its discus-
sions on the subjects of Voting in the Conference
and membership of the Executive Board, in-
structed the Committee, "insofar as it is able to
do so within its terms of reference," to formulate
alternative schemes, taking account of the sug-
gestions for a system of weighted voting and for
provisions for permanent seats on the Executive
Board.
(b) The Drafting Committee referred the issue
of membership of the Executive Board and vot-
ing in the Conference to its Administrative Sub-
Committee, which discussed the issue of
weighted voting without arriving at any final
conclusions. In this respect reference is made to
the Report of the Administrative Sub-Committee
which appears as Annexure 3 to this Report
(c) One delegate submitted a formula on
weighted voting and a note on two-thirds ma-
jorities, which are attached to the Report of the
Administrative Sub-Committee as Appendices I,
II, XI and XII.
(d) One delegate pointing out that any modi-
fication of paragraph 2 would involve a change
in substance, directed the attention of the Com-
mittee to a discrepancy in voting procedure;
whereas the Charter calls for a two-third vote on
procedural questions such as in paragraph 3 of
Article 66, the most important decisions on sub-
stance are the subject of a simple majority vote.
He suggested that the attention of the Second
Session be drawn to this anomaly and recorded
his reservation that the text should be changed
in such a manner as to call for a two-third ma-
jority vote on all major substantive issues.
45 Article 65
Sessions, procedure and officers
1. The Conference shall meet in regular
annual sessions and in such special sessions as
may be convoked by the Director-General at
the request of the Executive Board or of a
majority of the Members.
2. The Conference shall adopt its own
rules of procedure. It shall annually elect its
President and other officers.
Article 66
Powers and duties
1. The Conference shall have final author-
ity to determine the policies of the Organiza-
tion. It may make recommendations to the
Members and to other international organiza-
tions regarding any matter pertaining to the
purposes of this Charter.
2. The Conference may delegate to the
Executive Board authority to exercise any of
the powers or perform any of the duties of
the Organization, except such specific powers
and duties as are expressly conferred or im-
posed upon the Conference under this Char-
ter.
3. The Conference may, by the affirmative
votes of two-thirds of the Members of the
Organization, determine criteria and set up
procedures, including voting procedures, for
waiving, in exceptional circumstances, obliga-
tions of Members undertaken pursuant to this
Charter.
4. The Conference shall establish proce-
dures for making the determinations provided
for in Article 30 and in Article 52, where-
by any such determinations shall be made
through the Orginization by consultation
among the Members substantially interested
in the product concerned.
5. The Conference shall establish proce-
dures for making the determinations, deci-
sions and recommendations provided for in
paragraph 3 (c) and (d) of Article 26, para-
graph 1 (e) (i) and paragraph 2 of Article
28, paragraph 2 of Article 34 and Article 35.
6. The Conference may prepare or sponsor
agreements with respect to any matter within
the competence of the Organization and by
the affirmative votes of two-thirds of the
Members present and voting recommend such
agreements for acceptance. Each Member
shall within a period specified by the Con-
ference notify the Director-General of its ac-
ceptance or, in the case of non-acceptance,
shall furnish a statement of the reasons there-
for.
7. The Conference shall approve the budg-
et of the Organization, and shall apportion
the expenditure of the Organization among
the Members.
8. The Conference shall determine the site
of the Organization and shall establish such
branch offices as it may consider desirable.
SECTION C-TARIFF COMMITTEE
Article 67
TariffCommittee
1. There shall be a Tariff Committee which
shall act on behalf of the Organization in the
making of recommendations and determina-
tions pursuant to paragraph 3 of Article 24.
Article 66
GENERAL COMMENTS
The First Session had instructed the Commit
tee to review "" text of paragraph 8 of Article
66 in the light oi the observations of one delegate
that the Charter contained elsewhere important
decisions to be taken by the Conference, with
respect to which no precise voting requirement
had been laid down. It was not found necessary
to effect this review, because the Committee de-
cided to delete the abovementioned paragraph,
in view of the fact that the majority provision of
paragraph 7 Article 22 had been amended.
SPECIFIC COMMENTS
Paragraph 1
The Committee was of the opinion that the
words "international organizati - 'in this con-
text were intended to cover both private and
public international organizations.
Paragraph 3
Two delegates suggested to include a catalogue
of those powers which may not be delegated by
the Conference to the Executive Board.
Paragraph 7
One delegate suggested to add the following
sentence: "No one Member shall be required to
pay more than one-third of the total expenses
of the Organization for any given budgetary
period." Several delegates agreed with the prin-
ciple incorporated in this amendment. The Com-
mittee noted the reference in the report of the
First Session which suggested that apportionment
of expenses should follow the general principles
adopted by the United Nations.
Three delegates considered that no rigid maxi-
mum should be laid down in the Charter for the
contribution of any Member.
Article 67
The Committee deleted the provision chat the
functions of the Tariff Committee should be
transferred to the Conference, because it was
of the opinion that membership of the Tariff
Committee should be confined to those Members
of the Organization which had carried out the
obligations under Article 24.
46 2. The Committee shall consist originally
of those Members of the Organization which
shall have made effective the General Agree-
ment on Tariffs and Trade dated...., 194..
Any other Member of the Organization shall
be a member of the Committee when, in the
judgment of the Committee, that member
shall have completed negotiations pursuant
to paragraph 1 of Article 24 comparable in
scope or effect to those completely by the orig-
inal members of the Committee.
3. Each member of the Committee shall
have one vote.*
4. Decisions of the Committee pursuant to
paragraphs 1 and 2 of this Article shall be
taken by a two-thirds majority of its members
and other decisions by a simple majority.
5. The Committee shall adopt its own rules
of procedure, including provision for the elec-
tion of its officers.
SECTION D-EXECUTlVE BOARD
Article 68*
Membership
1. The Executive Board shall consist of
fifteen Members of the Organization elected
by the Conference.
2. Subject to the provisions of paragraph
(3) one-third of the members of the Executive
Board shall be elected each year for a term
of three years. A retiring member shall be
eligible for immediate re-election.
3. At the first election members of the Ex-
ecutive Board shall be chosen. The term of
c:ce of five members shall expire at the end
of one year and of five other members at the
end of two years, in accordance with arrange-
ments made by the Conference.
4. Each member of the Executive Board
* See Annexure B.
shall have one representative and may appoint
alternates and advisers to its representative.
Article 69
Voting
1. Each member of the Executive Board
shall have one vote.
2. Decisions of the Executive Board shall
be made by a majority of members present
and voting.
Article 70
Sessions, procedure and officers
1. The Executive Board shall adopt its own
rules of procedure, including rules concerning
the convening of its sessions.
2. The Executive Board shall annually elect
its Chairman and other officers, who shall be
eligible for re-election.
3. The Chairman of the Executive Board,
as such, shall be entitled to participate, with-
out the right to vote, in the deliberations of
the Conference.
4. Any Member of the Organization which
is not a member of the Executive Board, shall
be invited to send a representative to any dis-
cussion by the Board of a matter of particular
and substantial concern to that Member. Such
representative shall, for the purpose of such
discussion, have all the rights of members of
the Board except the right to vote.
Article 71
Powers and duties
1. The Executive Board shall be responsible
for the execution of the policies of the Orga-
nization and shall exercise the powers del-
egated to it and perform the duties assigned
to it by the Conference. It shall supervise the
Article 68
(a) The First Session instructed the Commit-
tee to consider the question of membership of
the Executive Board in conjunction with the
question of voting in the Conference (cf. com-
mentary to Article 64).
(b) The Committee referred this matter to its
Administrative Sub-Committee, which discussed
all aspects of Executive Board Membership and
reported on its conclusions in the First Report
of the Administrative Sub-Committee, which
forms an annexure to this Report. Reference is
made to this annexure and all appendices at-
tached to it.
(c) The Committee, without reaching any de-
cision on the substance of the Report of its Ad-
ministrative Sub-Committee decided to attach it
with Appendices to its own Report, in order to
make it available as a working document for the
Second Session. The Drafting Committee also
decided to show in the text of this Article the
first alternative of the Report of the First Ses-
sion in square brackets and to attach as further
appendices to the Administrative Sub-Commit-
tee's Report the second, third and fourth alter-
natives of the text of the First Session and one
delegate's paper on the question of two-third
majorities.
Article 70
Paragraph 1
The Committee draws the attention of the
Second Session to the possible desirability of
providing for the manner in which the functions
of the Executive Board will be exercised while
the Board is not in session.
Article 71
Paragraph 1
The Committee is of the opinion that the last
sentence will be redundant if the Second Session
should decide to include provision for a Com-
mission for industrial development in the
Charter.
47 activities of the Commissions provided for in
this Charter and shall take such action upon
their recommendations as it may deem ap-
propriate. It shall provide adequate ma-
chinery to review the work of the Organiza-
tion relating to industrialization and general
economic development.
2. The Executive Board may make recom-
mendations to the Conference, to the Mem-
bers of the Organization, or to other inter-
national organizations, on any subject falling
within the scope of this Charter, and shall
prepare the preliminary agenda of the Con-
ference.
3. The Executive Board may recommend
to the Conference the admisison of new
Members of the Organization.
SECTION E-COMMISSIONS
Article 72
Establishment
The Conference shall establish a Commis-
sion on Commercial Policy, a Commission on
Business Practices and a Commodity Commis-
sion and may establish such other Commis-
sions as may be required. The commissions
shall be responsible to the Executive Board.
Article 73
Composition and procedure
1. Commissions shall be composed of per-
sons chosen by the Executive Board and quali-
fied by training or experience to carry out the
functions of the Commissions in accordance
with the purposes of this Charter.
2. The number of members of each Com-
mission and the conditions of service of the
members of each Commission shall be de-
termined in accordance with regulations pre-
scribed by the Conference.
3. Each Commission shall elect its Chair-
man, and shall, subject to approval by the
Executive Board, adopt its own rules of pro-
cedure.
4. The Chairman of each Commission
shall be entitled to participate, without the
right to vote, in the deliberations of the Exec-
utive Board and of the Conference.
5. Pursuant to agreements under para-
graph 2 of Article 81, the Organization may
make arrangements for representatives of
other inter-governmental organizations hav-
ing a special interest in the activities of any
of the Commissions to participate in the work
of such Commissions.
Article 74
General functions
The commissions shall perform such func-
tions as the Conference or the Executive
Board may assign to them, including such
functions as the Executive Board may deem
appropriate in connection with the settlement
of disputes. The functions of the Commis-
sion on Commercial Policy, the Commission
on Business Practices and the Commodity
Commission shall include those specified in
Articles 75, 76 and 77, respectively. The com-
missions shall consult with each other as
necessary for the exercise of their functions.
SECTION E-COMMISSIONS
Article 73
GENERAL COMMENTS
The reDresentatives of The Food and Agri-
culture Organization, stressing the importance of
close working relations between the International
Trade Organization and the Food and Agricul-
ture Organization suggested inclusion of the fol-
lowing note in the Report, as an observation on
this Article and on paragraph 2 of Article 86:
"While this phraseology appears the most
appropriate for covering all the specialized
agencies, it is clear that there is one, namely
the Food and Agriculture Organization, which
has specific responsibilities for products of
farms, forests, and fisheries, some of which
products may be, or may become subject to
commodity arrangements. It is evident that the
close co-operation and reciprocal representa-
tion which this special situation requires needs
to be adequately provided for in the agreement
negotiated between the International Trade
Organization and the Food and Agriculture
Organization. If, however, it is desired to pro-
vide specifically for this in the Charter, appro-
priate changes could be made in these two
Articles.
It may be noted that the Report of the Food
and Agriculture Organization Preparatory
Commission provides for International Trade
Organization representation in the Food and
Agriculture Organization Annual Programme
Review and on the World Food Council."
SPECIFIC COMMENTS
Paragraph 5
Two delegates felt that this provision was re-
dundant in view of provisions of Article 81.
GENERAL COMMENT TO ARTICLES
74 TO 77, INCLUSIVE
1. The First Session instructed the Committee
to prepare appropriate drafts covering the func-
tions of the Commissions on Commercial Policy,
Business Practices and Commodities.
Article 74
The Committee felt that the Commissions
should be authorized to consult with each other
on matters falling within the purview of two or
more commissions and, consequently, added a
sentence to this effect in the text of Article 74.
48 Article 75
Functions of the Commisison on Commercial
Policy
The Commission on Commercial Policy
shall have the following functions:
(a) to advise and make recommendations
to the Executive Board on all matters falling
within the scope of Chapter V and regarding
the commercial policy aspects of proposals in-
volving the exercise by the Organization
of its functions under this Charter; and
(b) to develop and to recommend to the
Executive Board programmes designed to
further the objectives of this Charter in the
general field of commercial policy.
Article 76
Functions of the Commission on business
practices
The Commission on Business Practices
shall have the following functions:
(a) to conduct studies in the field of Re-
strictive Business Practices, as provided for
in paragraph (a) of Article 41; and
(b) to advise and make recommendations
to the Executive Board on all matters falling
within the scope of Chapter VI and regarding
the exercise of the functions of the Organiza-
tion under this Charter, insofar as they relate
to Restrictive Business Practices.
Article 77
Functions of the Commodity Commission
The Commodity Commission shall have
the following functions:
(a) to study commodity problems and pro-
posals for dealing with them and to prepare
the reviews called for in Article 55; and
(b) to advise and make recommendations
to the Executive Board on all matters falling
within the scope of Chapter VII and those
arising from the provisions of paragraph 4 of
Article 30.
SECTION F-THE SECRETARIAT
Article 78
Composition
1. The Secretariat shall consist of a Di-
rector-General and such staff as may be re-
quired.
2. The Director-General shall have author-
ity to appoint Deputy Directors-General in
accordance with regulations approved by the
Conference.
Article 79
The Director-General
1. The Director-General shall be ap-
pointed by the Conference upon the recom-
mendation of the Executive Board. The
powers, duties, terms and conditions of office
of the Director-General shall be in accordance
with regulations approved by the Conference.
He shall be the chief administrative officer
of the Organization, and shall be subject to
the general supervision of the Executive
Board.
2. The Director-General or his representa-
tive shall be entitled to participate, without
the right to vote, in all meetings of the Con-
ference, of the Executive Board, of the Com-
mission and of the committees of the Organi-
zation. The Director-General may initiate
proposals for the consideration of any organ
of the Organization. He shall present through
the Executive Board an annual report to the
Conference on the work of the Organization
and shall in consultation with the Executive
Board prepare the budget of the Organization
for submission to the Conference.
Article 80
Employment of staff
1. The Director-General shall appoint the
staff of the Secretariat and fix its duties and
terms and conditions of service in accordance
with regulations approved by the Conference.
The paramount consideration in the employ-
ment of the staff and in the determination of
its conditions of service shall be the necessity
of securing the highest standards of efficiency,
competence and integrity, due regard being
paid to the importance of recruitment on as
wide a geographical basis as possible.
2. The conditions of service, such as the
provisions governing qualifications, salary,
tenure and retirement of members of the Sec-
retariat shall be fixed, so far as practicable, in
conformity with those for members of the
Secretariat of the United Nations and of other
specified agencies.
SECTION G-MISCELLANEOUS PROVISIONS
Article 81
Relations with other organizations
1. The Organization shall be brought into
relationship with the United Nations as soon
Article 81
Paragraph 1
Two delegates moved to delete the words "by
the Director-General and" in the second sentence
because it was unrealistic to assume that negotia-
tions of this kind would actually be conducted
and concluded by the Director-General. One
delegate expressed the opposite view pointing
out the need for clear designation which official
or organ of the International Trade Organiza-
tion would be competent to represent the Organ-
ization in such proceedings.
49 as practicable as one of the specialized agen-
cies referred to in Article 57 of the Charter
of the United Nations. This relationship
shall be effected through agreement with the
United Nations under Article 63 of the
Charter of the United Nations, which agree-
ment shall be concluded by the Director-
General and approved by the Conference.
The agreement shall provide for effective co-
operation between the two Organizations in
the pursuit of their common purposes, and at
the same time shall recognize the competence
of the Organization within its jurisdiction as
defined in this Charter. The Conference may
adjust the provisions of this Charter to con-
form to any such agreement provided such
adjustments do not involve new obligations
on the part of Members.
2. The Organization shall c-ooperate with
the other inter-governmental organizations
having related interests and activities. Ar-
rangements for co-operation with such organi-
zations may be made by the Executive Board.
Effective working relationships with such
organizations, which may include the estab-
lishment of joint committees or provision for
reciprocal representation at meetings or such
other measures as may be necessary to assure
effective co-operation, may be established by
the Director-General.
3. The Organization may make suitable
arrangements for consultation and co-opera-
tion with non-governmental organizations con-
cerned with matters within its competence
and may invite them to undertake specific
tasks.
4. Whenever the Conference of the Organi-
zation and the competent authorities of any
other international organization, whose pur-
poses and functions lie within the competence
of the Organization, deem it desirable to effect
a transfer of its resources and functions to the
Organization, to incorporate it into the Or-
ganization or to bring it under the supervision
or authority of the Organization, the Director-
General, subject to the approval of the Con-
ference, may enter into mutually acceptable
arrangements for this purpose. The Organiza-
tion may acquire such resources and assume
such functions of, or incorporate or exercise
such control over, such other organizations as
may be provided by any convention or agree-
ment appropriate to the purpose. The Mem-
bers shall, subject to their respective constitu-
tional requirements, take such steps as the
Conference may determine to integrate such
other international organizations into
structure of the Organization.
the
Article 82
International responsibilities of personnel of
the Organization
1. The responsibiIities of the Director-
General and of the staff shall be exclusively
international in character. In the discharge
of their duties they shall not seek or receive
instructions from any government, or from
any authority external to the Organization.
They shall refrain from any action which
might prejudice their position as interna-
tional officials.
2. The provisions of paragraph 1 of this
Article shall also apply to the members of the
Commisisons provided for in Article 72.
3. The Members shall respect the inter-
national character of the responsibilities of
these persons and shall not seek to influence
them in the discharge of their duties.
Article 83
International legal status of the Organization
The Organization shall have legal person-
ality and shall enjoy such legal capacity as
may be necessary for the exercise of its func-
tions.
Article 84
Status of the Organization in the territory
of Members
1. The Organization shall enjoy in the ter-
ritory of each of its Members such legal
capacity privileges and immunities as may be
necessary for the exercise of its functions.
2. Representatives of the Members of the
Organization and its officials shall similarly
enjoy such privileges and immunities as may
be necessary for the independent exercise of
their functions in connection with the Organ-
ization.
3. The Conference may make recommen-
dations with a view to determining the details
of the application of paragraphs 1 and 2 of
this Article and may propose conventions to
the Members for this purpose.
Article 85
Amendments to the Charter
1. Any amendment to this charter which
does not involve new obligations on the part
Article 85
Paragraph 1
One delegate reserved his position in regard to
the present phrasing of this paragraph.
50 of Members shall become effective upon re-
ceiving the approval of the Conference by
the affirmative votes of two-thirds of the
Members.
2. Any amendment to this Charter which
involves new obligations on the part of
Members, shall become effective for each
Member accepting the amendment, upon ac-
ceptance on the part of two-thirds of the
Members, and thereafter for each remaining
Member on acceptance by it. The Conference
may determine that any Member which has
not accepted an amendment under this para-
graph within a period specified by the Confer-
ence, shall cease to be a Member of the Organ-
ization. In the absence of such determination,
a Member not accepting an amendement
shall, notwithstanding the provisions of para-
graph 1 of Article 89, be free to withdraw
from the organization upon the expiration of
six months from the day on which written
notice of such withdrawal is received by the
Director-General.
3. The Conference shall, by the affirmative
votes of two-thirds of the Members, adopt
rules of procedure for carrying out the provi-
sions of this Article.
Article 86
Interpretation and settlement of disputes
1. The texts of this Charter in the official
languages of the United Nations shall be
equally authoritative.
2. Any question or differences concerning
the interpretation of this Charter or arising
out of its operation shall be referred to the
Executive Board for a ruling thereon. The
Executive Board may decide either to give a
ruling on the matter itself, or to refer it, with
the consent of the parties, to arbitration upon
such terms as may be agreed by the parties.
Any ruling of the Executive Board shall, upon
the request of any Member directly affected
or, if the ruling is of general application, upon
the request of any Member, be referred to the
Conference.
3. Any justiciable issue arising out of a
ruling of the Conference with respect to the
interpretation of sub-paragraphs (c) , (d)
(e) , or (k) of Article 37 or of paragraph 2
of Article 59 may be submitted by any party
to the dispute to the International Court of
Justice, and any justiciable issue arising out
of any other ruling of the Conference may,
in accordance with such procedures as the
Conference shall establish, be submitted by
any party to the dispute to the International
Court of Justice. The Members accept the
jurisdiction of the Court in respect of any
dispute submitted to the Court under this
Article.
4. The Organization may, in accordance
with paragraph 2 of Article 96 of the Charter
of the United Nations, request from the In-
Article 86
GENERAL COMMENTS
Paragraphs 2, 3, and 4
One delegate explained his view that it was
imperative for the Organization to be master in
its own house and to be able to make final deter-
minations of a nature provided for in the Charter.
These determinations call for the exercise of dis-
cretion and for rulings on economic subjects on
the basis of economic reasoning. In this respect,
there exists a wide difference between normal
commercial treaties, whose character is static, and
the Charter, which is dynamic and subject to
change in the light of experience. The deter-
minations and rulings of the Organization do not
form a proper object for judicial review, even
by an economic chamber of the International
Court of Justice. Judicial decisions call for the
exercise of legal judgment but not for economic
evaluation. The distinction between "justiciable"
and other issues in Article 86 of the London text
is untenable and unworkable. But in order to
prevent abuse of majority power provision should
be made whereby, on the motion of one-third of
the members, an advisory opinion of the Inter-
national Court of Justice would be sought on
any issue involving interpretation of the Charter.
In this delegate's view, the subjects of nullifi-
cation and impairment and of interpretation
and settlement of disputes belong together, and
for this reason he suggested the provisions of
paragraph 2 of Article 35, and Article 86 should
be combined.
The Committee decided that this as well as
the memorandum, submitted to the First Session
by three delegates, on the subject of arbitration,
was a substantive matter of the highest impor-
tance which would have to be referred to the
Second Session. For this reason it was agreed to
put paragraphs 2-4 inclusive of Article 86 into
square brackets.
SPECIFIC COMMENTS
Paragraph 4
The First Session instructed the Committee
to consider the desirability of redrafting para-
graph 4 in view of the possibility that the Gen-
eral Assembly of the United Nations might
agree to grant to other specialized agencies a
general blanket authorization to seek advisory
opinions from the International Court. Since
paragraph 3 of Article 86 in its present form
provides for the possibility of review of decisions
of the International Trade Organization by the
International Court, the Drafting Committee
feels that a blanket authorization to seek advi-
sory opinions might conflict with possible later
litigation before the International Court and
for this reason refers this issue for consideration
in conjunction with paragraph 3 of Article 86,
to the Second Session.
51 ternational Court of Justice advisory opinions
on legal questions arising within the scope of
its activities.
Article 87
Contributions
Each Member shall contribute promptly to
the Organization its share of the Organiza-
tion's expenditures as apportioned by the
Conference. A Member of the Organization,
which is in arrears in the payment of its fi-
nancial contributions to the Organization
shall have no vote in the organs of the Or-
ganization if the amount of its arrears equals
or exceeds the amount of the contributions
due from it for the preceding two full years.
The Conference may, nevertheless, permit
such a Member to vote, if it is satisfied that
the failure to pay is due to conditions beyond
the control of the Member.
Article 88
Entry into force
1. The original of this Charter, as set forth
in the Final Act of the United Nations Con-
ference on Trade and Employment, shall be
deposited with the Secretary-General of the
United Nations, who will furnish certified
copies thereof to all interested governments.
2. Each government accepting this Charter
shall deposit an instrument of acceptance
with the Secretary-General of the United Na-
tions, who will inform all governments rep-
resented at the United Nations Conference
on Trade and Employment and all other
Members of the United Nations which were
not represented at that Conference, of the
day of deposit of each instrument of accept-
ance and of the day on which this Charter
enters into force under paragraph 3 of this
Article.
3. This Charter shall enter into force 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 in-
struments of acceptance pursuant to para-
graph 2 of this Article shall read twenty, and
the acceptance of each other accepting gov-
ernment shall take effect on the sixtieth
day following the day on which the instru-
ment of such acceptance is deposited, Pro-
vided that, if this Charter shall not have en-
tered into force by 194,
any of the governments which have made ef-
fective the General Agreement on Tariffs and
Trade dated ... ..... 194,
together with any other governments repre-
sented at the United Nations Conference on
Trade and Employment, may agree to bring
this Charter into force among themselves in
accordance with arrangements which they
may agree upon. Any instrument of accept-
ance deposited with the Secretary-General of
the United Nations shall be taken as cover-
ing both procedures for bringing this Charter
into force, unless it expressly provides to the
contrary or is withdrawn.
4. Each government accepting this Charter
does so in respect of its metropolitan territory,
and such other territories for which it has
international responsibility with the excep-
tion of those territories which are self-govern-
ing in respect of matters provided for by the
Charter. Each Member shall notify the Sec-
retary-General of the United Nations of its
acceptance of this Charter on behalf of any
such self-governing territory, and the provi-
sions of this Charter shall become applicable
to that territory on the sixtieth day following
the day of the receipt of such notification.
5. Each accepting government shall take
such reasonable measures as may be available
to it to assure observance of the provisions of
this Charter by subsidiary governments with-
in its territory.
Article 89
Withdrawal and termination
1. Without prejudice to the provisions of
paragraph 3 of Article 24 or paragraph 2 of
Article 35 any Member may withdraw from
the Organization either on its own behalf or
on behalf of a territory which is at the time
self-governing in respect of matters provided
for by this Charter at any time after the ex-
piration of the three years from the day of the
entry into force of this Charter, by written
notice addressed to the Director-General.
The Director-General shall immediately
notify all other Members.
2. A withdrawal under paragraph 1 of
this Article shall take effect upon the expira-
tion of six months from the day on which
written notice of such withdrawal is received
by the Director'-General.
3. This Charter may be terminated at any
time by agreement of three-fourths of the
Members.
Article 88
Paragraph 3
One delegate proposed the re-insertion of the
original text of paragraph 3 of Article 78 in the
United States Draft Charter in place of this
paragraph. The Committee decided to approve
temporarily the text of paragraph 3 in the formu-
lation of the Report of the First Session but to
note in its report that the differences between the
two texts were discussed and that there existed
a body of opinion for the re-insertion of the
text of the United States Draft Charter.
52 ANNEXURE A
List of territories referred to in sub-paragraph
(2) (a) (ii) of Article 14.
The United Kingdom of Great Britain and
Northern Ireland and its dependent terri-
tories,
Canada,
The Commonwealth of Australia and its depend-
ent territories,
New Zealand and its dependent territories,
The Union of South Africa including South
West Africa,
Ireland,
India,
Newfoundland,
Southern Rhodesia.
Burma,
Ceylon.
ANNEXURE B
First report of the Administrative Sub-Committee
(report on Executive Board membership and
voting)
PART I
The Drafting Committee at its first meeting on
20 January 1947, appointed the Administrative
Sub-Committee to make recommendations with
regard to membership of the Executive Board
and Voting. The Sub-Committee was composed
of the delegates for Belgium, Brazil, Canada,
Chile, Cuba, France, Netherlands, South Africa,
the United Kingdom and the United States and
elected Dr. Guillermo Alamilla as its Chairman.
The Sub-Committee discussed in seven meet-
ings the main problems and issues relevant to the
composition of the Executive Board and voting
in the Board and in the Conference, taking due
account of the instructions issued on page 8 of
E/PC/T/C.5/33/Rev. 1 (Instructions to the
Drafting Committee) and of instructions con-
tained in Part II of the Report of the First Ses-
sion, pages 22 to 24 inclusive, Sections E and F.
The Sub-Committee agreed from the outset
that its members would attempt to establish the
greatest possible identity of views regarding
membership of the Executive Board and voting
without committing their respective governments
to any of the solutions recommended by the Sub-
Committee. The following observations are to
be viewed in the light of this qualification.
The Sub-Committee had the benefit of the
most intensive co-operation of all its members
and of several other interested delegates. The
Delegates for Belgium, Brazil, Canada, France,
the United Kingdom and the United States
submitted draft proposals on behalf of their
delegations on the subject of the deliberations
of the Sub-Committee, which are appended to
this Report. In addition to these drafts, the Sub-
Committee considered personal drafts of some
Delegates and illustrative statistical tables sub-
mitted by the Secretariat.
The Sub-Committee concentrated in its work
upon the issues centcring around the composi-
tion of the Executive Board, using as a working
hypothesis the assumption of unweighted voting
in the Conference and in the Executive Board
and two or more categories for selection to
Board membership. Under this assumption, the
Sub-Committee arrived at the following conclu-
sions regarding the principles which should be
applied if the Executive Board is to be com-
posed of scheduled and elected members:
1. Unable to choose between the comparative
advantages of having two or three categories for
selection of Board members, the Sub-Committee
has elaborated two alternative drafts of Article
68, as set out below in Part Il, one on the basis
of two categories, the other of three categories,
of seats on the Executive Board.
2. Any fair allocation of seats on the Executive
Board requires a rating system whereby Members'
relative economic importance for purposes of the
Organization can be objectively determined.
After careful analysis of the validity of a wide
range of possible criteria which might be used
in such a rating formula, the Committee decided
to recommend the following formula:
(a) Foreign Trade: 1 point per 50 million
United States dollars
(b) National Income: 1 point per 500 mil-
lion United States dollars
(c) Foreign Trade per capita: 1 point per
25 United States dollars
The Sub-Committee's reasons for recommend-
ing these criteria are as follows:
(i) There was general recognition that for-
eign trade must be the predominant criterion
of economic importance for purposes of the
Organization.
(ii) It was felt, however, that national in-
come should also be included as a criterion,
though at an appropriately lower weight. This
would serve the useful purpose of increasing
the relative points of important countries with
very large populations but relatively low pres-
ent foreign trade, and would indirectly give
a weight to population, which after discussion
the Sub-Committee felt should not be given
direct weight as such in an international trade
organization. The Sub-Committee recognized
the difficulties in obtaining at present national
income figures of complete scientific accuracy,
but felt that the present work of the Statis-
tical Commission of the United Nations will
contribute to an ever-increasing accuracy of
such figures. After consultation with the Statis-
tical Division of the Secretariat, therefore, and
in view of the fact that national income figures
are already being used as an essential criterion
in several inter-governmental organizations
andin the budget allocations of the United
Nations itself, the Sub-Committee concluded
that the national income criterion would not
present insurmountable difficulties in practice.
(iii) The Sub-Committee recognized that
certain countries, the livelihood of whose
populations is highly dependent on interna-
53 tional trade, will be much more vitally atfected
by decisions of the Organization than other
countries in whose economy foreign trade,
however great absolutely, plays a relatively
minor role. It was therefore agreed that for-
eign trade per capita should be an additional
weighting factor, particularly since the foreign
trade criterion is to be modified by national
income figures for the reasons given above.
3. In order to provide for changes in relative
economic importance, the rating of Members
should be periodically redetermined before each
election. This automatically gives due weight
to potentialities as these potentialities are
realized.
4. In view of the disruption of national econ-
omies under wartime conditions, the first deter-
mination should be based on the average of
prewar and post-war data.
5. The rules governing the composition of
the Executive Board should be such as to allow
for adequate representation of all countries
which might join the Organization in the future.
To achieve this end, it is provided that elective
members of the Board should not be eligible
for immediate re-election.
6. The Members of chief economic importance
should be represented on the Executive Board,
so long as they enjoy this relative position and
the remaining seats should be filled through
election by the remaining Members of the Con-
ference.
On the basis of these principles, the Sub-Com-
mittee has agreed to report out to the Drafting
Committee the two alternative drafts of Article
68, set out in Part Il of this Report, which it is
recommended could be considered substitutes
for the second, third and fourth alternatives in
the Report of the First Session.
In case that neither of these two alternative
drafts would provide for satisfactory means of
giving due representation on the Executive
Board to members of the Organization with
structurally different economies, the French pro-
posal E/PC/T/C.6/W.53 may provide a prin-
ciple to achieve this objective by assuring per-
manent representation to at least some of the
members in each of the typical stages of economic
development.
The Sub-Committee did not feel any neces-
sity to elaborate a new draft text of Article 68
under the assumptions of "one country-one
vote" and "no scheduled seats on the Executive
Board", since the first alternative of Article 68
in the formulation of the text drafted at the
First Session constitutes in the opinion of the
Sub-Committee a textually satisfactory draft. If
an increase in membership of the Board beyond
fifteen is desired, the Sub-Committee feels that
this number should never exceed eighteen, and
that the first alteration of the text drafted at
the First Session should be accordingly redrafted.
Regarding weighted voting, the Sub-Commit-
tee felt that if such a system were used the best
formula would be the one described above
under conclusion two for the determination of
relative economic importance, plus an appro-
priate base vote.
On the general issue of weighted voting, the
Sub-Committee has not been able to establish
any degree of identity of views. A number of
members of the Sub-Committee hold that in the
case of weighted voting, the basic vote should
not be so high as to offset the real differences
in the relative economic importance of various
countries. Another group holds that only a
high basic vote would allow equitable principles
to prevail if a system of weighted voting is at
all to be applied. In view of this division of
Opinion in the Sub-Committee, the Sub-Com-
mittee feels that it could not provide satis-
factory solutions on this issue and refers the
issue of weighted voting to the Drafting Com-
mittee, drawing the attention of the Drafting
Committee to the United Kingdom and the
United States proposals for weighted voting
contained in the Appendix to this report.
Whatever system is finally adopted for voting
in the Conference or for the selection of mem-
bers of the Executive Board, it was generally
ageed that within the Board each member
should have one vote.
PART II
Article 68
Alternative "A" (on basis of two categories)
1. The Executive Board shall consist of fifteen
Members, including the six Members of chief
economic importance. The Conference, exclud-
ing these six Members, shall elect the nine addi-
tional members of the Board for terms of three
years subject to the provisions of paragraph 3 (b),
due regard being paid to each Member's eco-
nomic importance in international trade and
also to equitable geographical distribution. Elec-
tive members of the Board shall not be eligible
for immediate re-election. The Conference may,
by the affirmative vote of two-thirds of its Mem-
bers present and voting, increase the membership
to not more than eighteen, allocating the addi-
tional seats between the two categories.
2. The Conference shall annually determine
which are the Members of chief economic impor-
tance on the basis of a system of rating according
to the following schedule:
One point per 50 million United States dol-
lars of foreign trade;
One point per 500 million United States
dollars national income; and
One point per twenty-five United States dol-
lars of foreign trade per capita.
Subject to the provisions of paragraph 3 (a),
points shall be based on the relevant statistics
for the average of the three full calendar years
immediately preceding each election.
3 (a). The first determination of ratings shall
be based upon the average of the statistics for
1937 and the calendar year immediately preced-
ing the entry into force of this Charter;
54 3 (b). At the first election of the Board, three
of the members shall be elected for a term of
one year, and three others for a terni of two years.
4. The status of all members on the Board
shall be equal in all respects.
5. Each member of the Executive Board shall
have one representative and may appoint alter-
nates for and advisers to its representative.
Alternative "B" (on basis of three categories)
1. The Executive Board shall consist of no
more than eighteen Members to be determined
in accordance with the provisions of paragraphs
2, 3, 4, 5 and 6 of this Article.
2. Each Member shall be given a rating deter-
mined every three years according to the follow-
ing schedule:
One point per 50 million United States dol-
lars of foreign trade;
One point per 500 million United States
dollars national income; and
One point per 25 United States dollars of
foreign trade per capita.
The points shall be based on the average of
the relevant statistical data for the three full
calendar years immediately preceding each elec-
tion, provided that for the first election the points
shall be calculated on the average of the statisti-
cal data for 1937 and the full calendar year
immediately preceding the entry into force of
this Charter.
3. The seven Members with the highest rat-
ings shall be members of the Board for the
three-year period succeeding each determination.
4. The ten Members with the ratings next in
order after the seven Members referred to in
paragraph 3 shall elect from among themselves
five members of the Board for a three-year period.
5. The Conference, excluding the seventeen
Members referred to in paragraphs 3 and 4 of
this Article, shall elect not more than six mem-
bers of the Board, provided that there shall never
be more than one seat on the Board, under the
provisions of this paragraph, per three Members
participating in the elections under this para-
graph. Such members of the Board shall normally
be elected for terms of three years, provided that
the Conference shall, as necessary, establish pro-
cedures with regard to these terms designed to
assure a reasonable measure of continuity in
representation on the Board.
6. The members of the Board elected under
paragraphs 4 and 5 above shall not be eligible
for immediate re-election.
7. The status of all members on the Board
shall be equal in all respects.
8. Each member of the Executive Board shall
have one representative and may appoint alter-
nates for and advisers to its representative.
PART III
APPENDICES
Appendix
1. United Kingdom Formula for Weighted
1a.Voting issued as (E/PC/T/C.6/W.3).
55
2. Tables of Relative Economic Importance
2a. on the Basis of the United Kingdom
Formula.
3. United States Suggestion-Formula for
3a. Weighted Voting issued as (E/PC/T/C.6/
W.6 and E/PC/T/C.6/W.6/ Add. 1).
4. Czechoslovak Observations issued as (E/
PC/T/C.6/W. 14).
5. Canadian Draft of Article 68 issued as
(E/C/T/C.6/W.4).
6. Brazilian Draft of Article 68 issued as
(E/PC/T/C.6/W.27).
7. Tables of Relative Economic Importance
on the Basis of the Brazilian Formula.
8. Belgian Draft of Article 68 issued as
(E/PC/T/C.6/W.48).
9. French Draft of Article 68 issued as
(E/PC/T/C.6/W.53).
10. Secretariat Table on Relative Economic
Importance issued as (E/PC/T/C.6/W.
47).
11. Statement of United Kingdom Position
issued as (E/PC/T/C.6/W.56).
APPENDIX I
Formula for weighted voting
proposed by the United Kingdom delegate
Factors: (a) External trade: 20 votes per '000
million $.
(b) National Income: 2 votes per '000
million $.
(c) Population: 1 vote per 10 million.
(d) Percentage of trade to national in-
come: 1 vote per 10 per cent.
(e) Basic vote 100.
The above formula, applied to the figures of
external trade for 1937 and of national income
for 1940, together with the most up-to-date ap-
proximate figures of population available, would
yield the following results for the countries par-
ticipating in the Preparatory Committee (we
contemplate that there would be periodical re-
visions-perhaps quinquennial-to take account
of changes that have taken place affecting the
basic data):
1.
2
3.
4.
5.
6.
7.
8.
Number of
Votes
United States .. .... ... 399
United Kingdom and colonies . . 335
USSR ... 199
India ... 194
France ....... ....... .. 182
China ... 181
Netherlands and colonies .168
Canada ...... .......-.. 152
9. Belgium and colonies .......
10. Australia .... .
11. Czechoslovakia .................
12. Brazil .... ...........
13. South Africa ...................
14. New Zealand
Norway .
16. Cuba
Chile . ......
149
132
127
126
124
119
115
We contemplate that the order thus deter-
mined would also be used for the purpose of
allocating permanent seats on the Executive
Board: thus if there were to be eight permanent
seats, they would in the first instance, be allotted to the countries numbered 1 to 8 above. The
allocation would be liable to be changed from
time to time as the result of the periodical
revisions.
APPENDIX I (a)
Draft of Article 64 if weighted voting is adopted
suggested by the United Kingdom delegate
Article 64
1. Each Member shall have in the Conference
the number of votes allocated to it in Annex ...
to this Charter.
2. Except as otherwise provided in this Char-
ter, decisions of the Conference shall be taken
by a majority of the votes cast.
Note: There would be similar consequential
amendments to other voting provisions in Chap-
ter VIII excluding Article 69.
APPENDIX Il
Number of votes under various headings of United Kingdom formula
Country
U.S.A. ..................
U.K. ....................
U.S.S.R. ........
Canada .................
France and colonies ......
China .................
India ...................
Netherlands and colonies
Belgium and colonies .....
Australia ................
Brazil ..................
Czechoslovakia ...........
South Africa ............
New Zealand ............
Cuba ...................
Norway .
Chile . ..................
External
Population Trade
, 14 128
.. 13 165
.. 19 16
.. 1 36
.. 11 46
48 ll
.. 42 27
8 46
.. 2 35
.. 1 22
. . 5 13
.. 1 16
.. 1 14
* . . . 10
. . . . 6
. . . . 10
. . . . 6
National
Income
156
.54
64
12
23
24
24
7
5
6
5
6
2
1
1
2
1
Percentage of
Trade to
National
Basic
Income Vote
1
3
3
2
1
7
7
3
3
3
7
8
8
7
7
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
APPENDIX Il (a)
Basic factors
Used in the United Kingdom formula for weighted voting
Country
Population
Latest Available
Figures Approximate
Million
U.S.A..
U.K. and colonies .....................
U.S.S.R. (including Latvia, Estonia and
Lithuania) ..........................
Canada ...............................
France and colonies ...................
China ................................
India.
Netherlands and colonies ...............
Belgium and colonies ..................
Australia .............................
Brazil ................................
Czechoslovakia ........................
Union of South Africa .................
New Zealand .........................
Cuba .................................
Norway ........
Chile
baon.................................
Lebanon ..............................
142
132
193
12
106
455
419
80
19
7
45
14
11
2
5
3
5
1
Trade
1937
Million
$ new
6,379
8,274
817
1,824
2,306
535
1,369
2,284
1,748
1,090
677
800
684
482
315
523
283
64
National
Income
1940
Million
$ new
77,800
27,000
32,000
3,800
11,300
12,000
12,000
3,500
2,350
3,200
2,500
3,000
1,000
600
420
750
400
Percentage of
Trade to
National Income
8
31
3
31
20
4
11
65
74
34
27
27
68
80
75
70
71
N.A.
* No information.
56
Total
Vote
399
335
199
152
182
181
194
168
149
132
126
126
124
119
115
119
115
.
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . . APPENDIX III
United States suggestion
The attached amendments to Article 6 1 (Vot-
ing in the Conference), Article 68 (Membership
in the Executive Board) anti Article 69 (Voting
in the Executive Board) are designed to provide
for a system of weighted voting in the ITO
which would be strictly confined to issues arising
out of the balance-of-payments provisions of the
Charter, and to the issue of Membership) in the
Executive Board.
The main consideration in support of this plan
is that exchange restrictions and quantitative re-
strictions on trade are equally effective alterna-
tive methods of dealing with balance of payments
problems; that exchange restrictions are under
the jurisdiction of the International Monetary
Fund, which has a system of weighted voting;
and that if the same voting system is adopted in
the ITO on balance of payments matters this
will assure consistency between the actions of the
Fund and the ITO on questions in which they
are expected to pursue a common policy as en-
visaged in Articles 26, 28 and 29 of the Charter.
It is recognized that the issues on which
weighted voting is intended to apply may need
to be more closely defined than in the attached
draft.
Article 64. Voting (Conference)
1. Except as provided in paragraph 2, each
Member shall have one vote in the Conference.
.2. Whenever voting in the Conference is re-
quired on any matter, arising under Article 26,
28 or 29, in which the Organization and the
International Monetary Fund have a common
interest, and in the election of members of the
Executive Board, each Member which is a mem-
ber of the International Monetary Fund shall
have in the Conference the same number of votes
as it is currently entitled to cast in the Fund
pursuant to Article XII, Section 5(a) of the Arti-
cles of Agreement of the International Monetary
Fund, and each other Member shall have in the
Conference the number of votes provided for in
the special exchange agreement entered into be-
tween that Member and the Organization pur-
suant to paragraph 3 of Article 29.
3. The Conference shall make arrangements
for the detailed application of the provisions of
paragraph 2 of this Article in respect of the elec-
tion of members of the Executive Board. Such
arrangements shall be framed on general princi-
ples analogous to those set forth in paragraphs 1
through 6 of Schedule C annexed to the Articles
of Agreement of the International Monetary
Fund.
(Alternatively: Such arrangements shall be
framed on general principles designed to assure
that (a) the votes cast by any one Member shall
not count toward the election of more than one
member of the Board and (b) the votes cast by
each Member shall count toward the election of
some member of the Board.)
4. Except as may be otherwise provided for
in this Charter, decisions of the Conference shall
be taken by a majority of the [Members present
and voting] votes cast.
Article 68. Membership (Executive Board)
1. The Executive Board shall consist of fifteen
Members of the Organization elected by the
Conference in accordance with paragraphs 2 and
3 of Article 64.
2. Subject to the provisions of paragraph 3
one third of the members of the Executive Board
shall be elected each year for a term of three
years. The Conference may by regulation deter-
mine for any election that retiring members,
other than those elected by the five Members of
the Organization having the largest number of
votes under paragraph 2 of Article 64, shall not
be eligible for immediate re-election.
3. At the first election, fifteen Members of
the Executive Board shall be chosen. The term
of office of five Members shall expire at the end
of one year, and of five other Members at the
end of two years, in accordance with arrange-
ments made by the Conference.
4. Each Member of the Executive Board shall
have one representative and may appoint alter-
nates and advisers to its representatives.
Article 69. Voting (Executive Council)
1. Except as provided in paragraph 2, each
member of the Executive Board shall have one
vote.
2. Whenever voting in the Executive Board
is required on any matter, arising under Article
26, 28 or 29, in which the Organization and the
International Monetary Fund have a common
interest, each member of the Executive Board
shall be entitled to cast the number of votes
which counted towards the election of that mem-
ber under paragraphs 2 and 3 of Article 64.
3. Decisions of the Executive Board shall be
made by a majority of [members present and
voting] the votes cast.
APPENDIX III (a)
United States suggestion
Addition to E/PC/T/C.6/W.6 concerning
weighted voting
Document E/PC/T/C.6/W.6, submitted by
the United States Delegation, sets forth a plan
for weighted voting in the ITO (a) on matters
in which the ITO and the Fund have a common
interest, and (b) in the election of the Executive
Board. The following explanations and clarifica-
tions may be of use to the Committee in its
consideration of this proposal:
1. It is intended that on substantive matters
the method of voting suggested should be con-
fined to cases in which the Organization is re-
quired under the Charter to consult the Fund
before acting. This purpose might be effected
better by revising the opening part of par. 2 of
Article 64 and par. 2 of Article 69 along the
57 following lines deleted language in brackets,
new language underscored):
Article 64
"2. Whenever voting in the Conference is re-
quired [on any matter arising under Article 26,
28 or 29 in which the Organization and the
International Monetary Fund have a common
interest] on any decision of the Organization
required to be taken in consultation with the
International Monetary Fund under paragraphs
3 and 5 of Article 26, paragraphs 1 (iv) and 2 of
Article 28, and paragraphs 4 and 6 of Article
29," etc.
Article 29
"2. (Same as above, appropriately replacing
the word 'Conference' by 'Executive Board')".
2. With regard to the application of the Fund
voting system to the election of the members of
the Board of the ITO, the following points may
be noted:
A. No Member would be allowed to split his
vote so as to elect more than one member of the
Board. In other words, countries having a large
number of votes because of their large quotas in
the Fund (which have relation to the economic
importance of the country) could use these votes
only for the purpose of electing themselves to
the Board. Thus, as will be explained below, the
six countries having the largest votes would all
be equal for this purpose despite the difference
in their votes.
B. It would be provided in general that no
Member could be elected to the Board on any
ballot unless he obtained a number of votes
equal to the average resulting from a division
of the total number of eligible votes by the total
number of members to be elected. Thus, using
the Fund voting quotas as given in the attached
Schedule I, the following results would be
achieved:
1. On the first ballot, the average number
of votes required to elect, assuming an Execu-
tive Board of fifteen members, would be over
6,000. Since only three countries (the United
States, the United Kingdom and the USSR)
have more than this number, presumably only
these three countries would be elected on the
first ballot.
2. On the second ballot, the average num-
ber of votes required to elect (the eligible
votes divided by the remaining number of
seats) would be 3,944. This would mean that
China (5,750 votes), France (5,500 votes) and
India (4,250 votes) could elect themselves on
this ballot.
3. On the third ballot approximately 3,500
votes would be required to elect. Since no one
of the remaining countries would have this
number of votes, it would require the support
of some other country or countries to be
elected.
4. Countries comprising a geographical area
could be almost certain of electing a director
if they voted together, for example, the Latin
American republics (excluding Argentina)
would have 9,645 votes and thus could always
elect two directors. An illustration of how this
might work out is afforded by the elections in
the Monetary Fund as shown in the attached
Schedule II.
C. In order to make provision against the
possibility that there might be inadequate rota-
tion of seats, the Conference by majority vote
would be authorized to declare for any election
that retiring members (other than those elected
by the six members of the Organization having
the largest number of votes, or whatever member
is decided upon) shall not be eligible for imme-
diate re-election.
D. In voting in the Executive Board on the
balance of payments issues referred to above,
each Member would cast the votes which counted
towards his election (or to which the Member
is entitled in his own right, whichever is higher).
How this might work out is illustrated in Sched.
ule Il.
E. A possible advantage of the plan is that
each Member of the ITO would, so to speak,
have a particular representative on the Board to
which it could look for assistance in making its
voice heard.
SCHEDULE 1
Schedule of votes under International Monetary
Fund*
Country
United States.
United Kingdom
USSR ...........
China ........
France .. ..
India . ... :
Canada ..
Netherlands ....
Belgium .......
Australia .......
Brazil .........
Czechoslovakia . ..
Poland .........
Union of South Africa
Mexico.
Denmark .....
Yugoslavia
Chile . .... ..
Colombia .......
Cuba .........
New Zealand
Norway . ....
Egypt .........
Greece ..........
Iran .....
Peru ............
Philippine. Republic
Uruguay ... ..
Venezuela ......
Bolivia ......
Luxemburg ......
Iraq .........
Ethiopia .........
Costa Rica .......
Number
of Votes
.. .... . 27,750
.... 13,250
.......... 12,250
................... 5,750
...... ....... ... 5,500
................ 4,250
..... .............. 3,250
................... 3,000
................ .. 2,500
................... i...,250
................ .. 1,750
. 1,500
.. ......... .. 1,500
... ...... 1,250
.... ..... 1,150
.. ........ ....... 930
.. 850
................... . .750
................... 750
....... ....... 750
750
................... . .750
................. 700
................... 650
.................. . 500
................... 500
400
..... ....... ... 400
.. ........ 400
....... .... ... ... 350
......... .. 350
.......... ....... 330
310
300
* Based on amended quotas in Articles of Agreement of
International Monetary Fund.
58 Dominican Republic .................
Ecuador ..
Guatemala.
Haiti.
El Salvador .........................
Honduras . ....
Nicaragua . ..
Paraguay ...
Iceland . .. . ..
Liberia . ...
Panama .. ........
300
300
300
300
275
275
270
270
260
255
255
100,580
SCHEDULE II
Voting power of executive directors of
International Fund
Directors appointed by:
1. United States.
2. United Kingdom.
3. China ...................
4. France .. ........
5. India ....................
Elected Directors
6. Santos-Filho (Brazil), elected
by vote of:
Brazil .........
Chile ..............
Peru ...............
Uruguay ...........
Bolivia ...............
Ecuador ...... ....
Paraguay ..........
Panama . ............
7.
Gomez (Mexico) elected by
votes of:
Mexico ...............
Colombia ...........
Cuba ....... ..
Costa Rica ..........
Costa Rica ...........
Dominican Republic ...
Guatemala ..........
El Salvador ........
Honduras .............
Nicaragua ............
8. Bruins (Netherlands) elected
by votes of:
Netherlands ..........
Union of South Africa..
9. Rasminsky (Canada),elected
by votes of:
Canada ...............
Norway ...............
Number
of Votes
........ 27,750
........ 13,250
........ .5,750
..... . '.. . 5,500
........ .4,250
10. Mladek (Czechoslovakia)
elected by votes of:
Czechoslovakia .1,500
Poland .. 1,500
Yugoslavia . ... 850
11. Gutt (Belgium), elected by
votes of:
Belgium.
Luxembourg.
Iceland.
12. Saad (Egypt)
votes of:
Egypt ..
Greece.
Iran.
Philippines
Iraq.
Ethiopia . . .
elected by
3,850
2,500
350
260
3,110
..... . 700
...... .650
...... .500
...... 400
...... .330
...... .310
Total.
1,750
750
500
400
350
300
270
255
4,575
1,150
750
750
300
300
300.
300
275
275
270
3,000
1,250
3,250
750
* The total number of votes and the percentage dis-
tribution of the voting power of member countries are
affected by the fac^ that Denmark did not join in time to
participate in the elections.
2,890
82,795
APPENDIX 1V
Observations by the Czechoslovak Delegate on
voting at the Conference and seats on the
Executive Board
Upon the suggestion of the Secretatiat, the
Czechoslovak delegate wishes to express his views
on the question of voting on the Conference as
well as on the question of seats on the Executive
Board.
Con ference
In accordance with its opinion expressed at
the last session of the Preparatory Committee the
Czechoslovak delegate to the Drafting Committee
agrees with the original text as suggested in the
United States Charter in Article 64, paragraph 1,
reading as follows:
"Each Member shall have one vote in the
Conference."
It follows then that we are on principle op-
posed to any suggestion for weighted voting.
Executive Board
In my opinion the Executive Board should
consist of fifteen to eighteen Members. Five seats
should be reserved for the five permanent Mem-
bers of the Security Council of the United Na-
tions. The remaining ten Members of the Execu-
tive Board should be elected by the Conference,
proper regard being paid to an equitable geo-
graphical distribution of seats and representation
of Members of differing economic structures.
Retiring Members should be eligible for re-
election.
In the opinion of the C. hoslovak delegate
the question of the membership of the Executive
Board should not be materially dealt with until
all countries which are likely to become Members
of the Organization have had ample opportunity
to present their views on the matter.
59 APPENDIX V
A lternate Drauft of Article 68 (old Article 57)
.Suggested by the Delegate [or Canada
Execu tive Board-Membership
1. The Executive Board shall consist of fifteen
Members of-the Organization.
(a) By virtue of their economic importance,
Canada, China, France, India, United King-
dom, and United States of America, shall be
appointed as permanent members.
(b) Four other Members of the Executive
Board shall be elected by the Conference so as
to assure the continued representation of either
Australia or New Zealand, either Belgium or
the Netherlands, one Latin American member
whose capital is south of the equator and one
Latin American member whose capital is north
of the equator.
(c) The remaining Members of the Execu-
tive Board shall be elected by the Conference,
and any of the members enumerated above
who are not already elected may be chosen.
2. The non-permanent Members of the Ex-
ecutive Board shall be elected for a period of
three years. At the first election of the non-per-
manent Members, three Members shall be elected
for a term of one year and three others for a
term of two years. A retiring Member shall be
eligible for immediate re-election.
3. These elections shalI take place in accord-
ance with arrangements ta be approved by the
Conference with a two-thirds majority of its
Members.
4. Each Member of the Executive Board shall
have one representative who may appoint alter-
nates and advisers.
APPENDIX VI
Alternate Draft of Article 68 (old Article.57)
Suggested by the Brazilian Delegate
Section D. The Executive Board
Article 68. Membership
1. The Executive Board shall consist of eight-
een members of the Organization according to
the following regional divisions: five members
from countries belonging to Europe; fo-ur mem-
bers from North America, Central America and
the Caribbean countries; three members from
Asia; two members from Africa and the Near
East; two members from South Africa; one
member from Oceania; and one from U.S.S.R. by
reason of her special position in two countries.
2. Eight members of the Executive Board shall
be appointed for a term of five years by the
Member countries of the Organization having
the most important relative trade position in
each of the above-mentioned regional divisions
and in accordance with the provisions of No. 4
of this Article.
* 1. If this draft is adopted provision will have to be
made to allow revision, if necessary, say, after tt.J or
fifteen years.
2. If the USSR becomes a Member, Canada feels that
it should be accorded a permanent seat on the Executive
Board.
A ccordingly, two representatives of European
countries; two of North America, Central Amer-
ica and the Caribbean countries; two of Asia;
one of South America; and one of U.S.S.R. will
be appointed members of the Executive Board.
'The relative position of the Member countries
established according to No. 4 of this Article,
shall be re-examined by the Executive Board at
the end of each term of five years, and any change
which may occur will be taken into considera-
tion in order to implement the provisions of the
first paragraph of No. 2 of this Article.
The members of the Executive Board shall be
appointed by the same Member countries if no
change has occurred in the relative position es-
tablished according to the provisions of No. 4
of this Article.
3. Ten members of the Executive Board shall
be elected by the Conference and by the Mem-
ber countries not appointing their representa-
tives, taking into account the number of Direc-
tors allocated to each of the regional divisions
set forth in No. 1 of this Article.
(a) Five members of the Executive Board
shall be elected for the term of three years; and
(b) Five members for two years;
(c) A retiring member of the Board shall be
eligible for immediate re-election.
(d) If a Member country entitled according
to the provisions of this Article to appoint a
member of the Executive Board decides not
to accept the membership of the Organiza-
tion, then a Member country belonging to the
regional division of Oceania shall be elected
by the Conference according to No. 3 (a) of
this Article.
*1. The most important relative trade position
in eacehof the above-mentioned regional divi-
sions, in order to implement the provisions of
No. 2 of this Article, shall be determined by the
addition of the following factors:
(a) One hundred basic units to be allocated
to any Member country;
(b) Twenty units to be allocated for each
one billion dollars in the world trade of each
Member of the Organization during the last
normal period (1938);
(c) The actual percentage of the foreign
trade of the Member country in relation to
global world trade; and
(d) One unit for each two percent of the
population of the Member country in relation
to the global population of the regional divi-
sion to which it belongs.
5. Each member of the Executive Board shalI
have one representative and may appoint alter-
nates and advisers to its representatives.
APPENDIX VII
Administrative Sub-Committee
Formula for Membership proposed by the
Brazilian Delegate
Factors:
(a) One hundred basic units to be allocated
to any Member country;
60 decided to show in the text ot tis Article the charter.
47
(b) External trade: 20 units per '000 million $
in 1938;
(c) Percentage of foreign trade in global world
trade;
(d) Population: one unit for each two per
cent of the population of the regional division
to which the Member country belongs.
The above formula applied to the figures of
external trade for 1938, together with available
figures of population for 31 December 1939, or
a later date as far as possible, would yield the
following results:
EUROPE
(b)
Belgium ........ 29.81
Czechoslovakia .. 12.9
Denmark ....... 13.8
France ......... 44.0
Greece ......... 4.4
Iceland ......... 0.5
Ireland ........ 6.3
Italy ........... 22.7
Luxembourg.
Netherlands .... 26.9
Norway ........ 9.6
Poland ......... 9.4
Portugal ....... 5.0
Sweden . ....... 19.7
Switzerland .. ... 13.3
United Kingdom. 128.8
Yugoslavia ..... 4.6
units
(c)
3.21
1.4
1.5
4.7
0.5
0.0
0.7
2.4
2.9
1.0
1.0
0.5
2.1
1.4
13.8
0.5
NORTH AMERICA,
CENTRAL AMERICA
AND THE
CARIBBEAN
United States ....'0.iL 14
Canada ........ 30.4
Mexico ......... 4.4 1
Cuba .......... 5.0 * 1
All others .
ASIA
Afghanistan ....
China ..........
India ..........
Philippines .....
0.7
18.6
20.4
4.9
AFRICA AND
NEAR EAST
Egypt .......... 6.6
Union of
South Africa . . 12.6
Turkey ........ 4.7
Lebanon and
*Syria ........ 1.1
Saudia Arabia ... 0.9
Iraq .......... 1.7
Iran ............ 4.8
S. AMERICA
Argentina ......
Bolivia .........
Brazil ..........
Chile ..........
Columbia ......
17.6
1.2
11.8
4.8
3.4
(d)
1.8
3.0
0.8
3.6
1.5
0.6
9.1
0.1
2.0
0.6
5.0
1.6
1.5
0.9
10.0
3.0
3.7
3.1
5.2
1.3
3.4
0.4
26.4
22.2
1.0
0.7 11.3
0.8
3.3
3.5
3.5
0.1
2.0
2.2
0.5
1.4
0.5
0.1
0.1
0.2
0.5
1.9
0.1
1.3
0.5
0.4
7.0
11.9
2.5
4.7
2.5
10.1
7.4
1.9
23.1
2.8
5.1
(a) (b) (c) (d)
130
117
116
157
106
101
108
134
132
111
115
107
123
116
243
108
248
137
110
107
101
147
145
106
119
121
117
104
106
104
115
127
103
136
108
109
'Incl. Luxembourg
units
(b) (c) (d)
Ecuador ....
Paraguay ....
Peru ........
Uruguay ....
Venezuela . . .
OCEANIA
Australia . . .
New Zealand.
USSR ......
0.4
0.4
2.7
2.5
7.3
... 20.5
... 8.8
... 10.5
0.3
0.3
0.8
2.2
0.9
1.1
1.7
0.6
4.0
1.2
_2. 1
40.5
9.5
50.0
(a) (b) (c) (d)
102
101
107
104
110
163
- 119
162
The figures for the United Kingdom, France,
the Netherlands and Belgium do not include the
Overseas territories of these countries, whereas
in the formula for weighted voting proposed by
the United Kingdom representative the figures
include these colonies, but exclude inter-imperial
trade.
APPENDIX VIII
Alternate Draft of Article 68
Suggested by the Delegate of Belgium
Executive Board: Membership
1. The Executive Board shall consist of eight-
een members of the Organization.
(a) The six members of the Organization
which have the largest international trade.
(b) The three of the remaining members of
the Organization which have the greatest eco-
nomic importance. This importance will be de,
termined on the following basis
Population: one point per 10 million;
National income: two points per 000 million
dollars;
Percentage of trade to national income: one
point per 10%.
(c) The nine other members of the Executive
Board shall be elected by the conference among
the remaining members of the Organization so as
to insure adequate representation of the major
geographical regions and of any other outstand-
ing interest in international trade.
2. The position of the nine permanent mem-
bers will be revised every three years on the basis
of the situation during this period.
3. The nine non-permanent members of the
Executive Board shall be elected for a period of
three years. At the first election of the non-per-
manent members, three members shall be elected
for a term of one year, three for a term of two
years, and three for a term of three years. A
retiring member shall be eligible for immediate
re-election.
4. The designation and elections shall take
place in accordance with arrangements to be
approved by the Conference with a two-thirds
majority of its members.
Each member of the Executive Board shall
have one representative who may appoint alter-
nates and advisers.
6l APPENDIX IX
Allocation of Permanent Seats of the
Executive Committee
Suggestion by the Delegate for France
In the course of the work of the First Session
of the Preparatory Commission, it became ap-
parent that differences of economic structure
existing between the countries participatinig in
the Conference, particularly as regards their de-
gree of industrial development, made it necessary
to take into account, in drafting a Trade Char-
ter, needs which were common to certain groups
of countries.
This fact was recognized more specifically in a
new chapter of the draft Charter, intended to
ensure the development of countries with insuffi-
ciently advanced economic systems.
This is clearly a fundamental idea, very closely
affecting the realization of the aims of the Or-
ganization, and it appears to be recognized
u unanimously. -
With this in mind, the delegate for France
submits for the Committee's consideration the
following suggestion concerning the allocation of
permanent seats on the Executive Committee:
"The Member States to be divided into four
groups, each group corresponding to a type of
economicstructure. There would thus be:
First Group: Highly industrialized countries
in whose economic systems foreign trade con-
stitutes an essential clement.
Second Group: Highly industrialized coun-
tries in whose economic systems foreign trade
represents only a secondary element.
Third Group: Insufficiently industrialized
countries in *whose economic systems foreign
trade constitutes an essential element.
Fourth Group: Insufficiently industrialized
countries ivhose foreign trade is little de-
veloped."
The first group, owing to the fully integrated
type of economic system which it represents, and
which corresponds to the aims pursued by the
Organization, would have three seats on the
Executive Committee.
Each of the three other groups would have two
seats, thus making up a total of nine permanent
seats.
Each country would itself be invited to choose
the group to which it considered it belonged, the
choice being endorsed by a vote of the Con-
ference.
The countries of each group would themselves
appoint their representatives to the Executive
Committee, taking into account both the repre-
sentative character of the countries elected and
their geographical situation.
The representatives would be appointed for
a.period of five years.
APPENDIX X
Formula for rating economic importance
(a) Foreign Trade:
(b) National Income:
(c) Foreign Trade per capital:
20 votes per 1000 million $
2 votes per 1000 million $
1 vote per 25 $
The above formula, applied to figures for 1938, would yield the following results:
COUNTRY
U.S.. ................................
U.K. and colonies (1)..................
France and colonies (1).
U.S.S.R. (including Latvia,
Estonia & Lithuania) .................
Netherlands and colonies (1)...........
Canada ...............................
India ................................
Belgium and colonies (1) .. ......
Italy .................................
China ......
China ~~~ ..........................
Australia .............................
Sweden ...............................
Argentina ............................
Union of South Africa .................
Switzerland ...........................
New Zealand.........................
Czechoslovakia ........................
Norway ..............................
Brazil ................................
Poland ...............................
Egypt .
Egypt...............................
Chile ................................
Cuba ................................
Lebanon and Syria.....................
Foreign Trade
107
157 (129)
37 (44)
14
42 (16)
33
23
29 (29)
23
18
21
20
18
18
13
9
13
10
12
9
7
5
5
1
National Income
128
50 (46)
20(19)
40
9 (5)
9
16
5 (4)
11
16
6
5
4
3*
4
1.6
5
2
4
6
2
1
I
0.4
Trade per Capita Total
. 1.6
2.6 (5.4)
0.6 (2)
0.2
6'° (6)
6
0.2
3.2 (7)
1.0
6
6.2
2.6
3.
6.4
10.8
1.6
6.6
0.6
0.6
0.8
2
2.4
2
237
210 (180)
58 (65)
54
52 (27)
48
39
37 (40)
35
34
33
31
25
24
23
21
20
19
17
16
10
8
8
3
(1) Intra-trade figures excluded. Colonies are excluded in the figures given in parentheses.
(2) Population figures for 1937.
(@) Including gold exports.
62 APPENDIX XI
Statement of the United Kingdom delegate on
its views regarding the composition of the
Executive Board
The following outlines present views of the
United Kingdom delegate on the composition of
the Executive Board:
1. The Executive Board should consist of
seventeen or eighteen Members of the Organ-
ization, of whom eight should be permanently
represented upon it. The permanent seats would
be allocated to the first eight Members as deter-
mined by the United Kingclom formula set out
in E/PC/T/C.6/W.3. In making the determina-
tion in the first year a fair balance would be
struck between prewar and postwar statistics.
The nine remaining seats would be filled by
Members elected by the Conference.
The United Kingdom has not any settled views
upon the basis of such election but would sup-
port provisions which
(a) Would yield a fair geographical distri-
bution of at least a proportion of seats on the
Board; (whether by a specific geographical
scheme or otherwise)
(b) Allow for rotation of Members in ser-
vice on the Board.
2. In the election weighted votes would be
used.
3. Each Member of the Board should have
one vote in all decisions by the Board.
APPENDIX XII
Provisions for two-thirds majorities in the draft
charter
Note by the delegate for the United Kingdom
The Drafting Committee was instructed by the
Preparatory Committee at its First Session to ex-
amine the question of two-thirds majorities "with
a view to incorporating in the text of the Charter
such wording as clearly conveys what is in-
tended." Two forms of wording were agreed
upon in London to apply to two different types
of cases, the first formula "by the affirmative
votes of two-thirds of the Members" to apply to
more important decisions (called "Type 1" in
this note), the second "by the affirmative votes
of two-thirds of the Members present and voting"
for relatively less important decisions (here called
"Type 2") .
The delegate for the United Kingdom is not
entirely satisfied that there is sufficient ground
for making the distinction between the two types
of cases in which two-thirds majorities are re-
quired. There are clearly certain decisions which
it is important should be made only with the
support of two-thirds of the voting power of all
the Members of the Organization, but it could
be argued that cases in which it is possible to
allow the outcome to be dependent on the at-
tendance of Members might equally well be made
the subject of a plain majority vote. On the
other hand, Type 2 would enable decisions to be
reached more rapidly where required, and would
avoid situations arising in which abstentions pre-
vented any decision from being reached. In any
case it is suggested that it might be better to read
by way of definition of Type 1, "concurring
votes representing two-thirds of the voting power
of all the Members", and for Type 2, if it be
retained, "concurring votes representing the vot-
ing power of two-thirds of the Members present
and voting."
The following notes are written on the as-
sumption that the distinction between the two
types is maintained. Type I is clearly appro-
priate in Article 66 (2) as it stands (determina-
tionI of criteria for waiving of obligations) and
in Article 85 (1) and (3) (amendments to the
Charter) . Type 2 night perhaps suffice in Ar-
ticle 66 (5) (acceptance of conventions and agree-
ments) which is at present drafted as Type 1.
Suggestions were male in the discussions at
the First Session of the Preparatory Committee
(See document E/PC/T/CV /25) for making de-
cisions subject to two-thirds majorities in certain
other cases where at present no specific proce-
dure is laid down (and which would presumably
therefore be decided by simple majority) . The
suggestions related to the following articles:
1. Articles 26 (3) (Conditions under which
balance of payments restrictions may be im-
posed): it is doubtful if a two-thirds majority
rule should be applied to this. It is suggested
that in any event it should be confined .to
paragraph 3 (d)-determination that the pro-
vision is being abused, and should be of Type
2 as described above.
2. Article 30, 4 (b) (Subsidies, suspension
of rules) . A two-thirds majority of Type 1
would seem to be reasonable in this case.
3. Article 34 (Emergency Action). The re-
quirement of a two-thirds majority in rela-
tion to action by the Organization under the
last sentence of the proviso to paragraph 4
would seem reasonable.
4. Article 35 (Impairment). A two-thirds
majority* in relation to the third sentence of
paragraph 2 seems reasonable.
5. Article 40 (e) and (f) . (Findings and
Recommendations) . A two-tnirds majority*
seems reasonable.
6. Article 51 (London text) (Principles of
commodity arrangements). A two-thirds ma-
jority requirement would not seem appro-
priate. It has already been suggested that
voting provisions would have to be settled ad
hoc in the light of the circumstances of par-
ticular commodity arrangements.
There are certain further instances where the
proviso for a two-thirds majority should be con-
sidered.
* While the importance of these masters night seem to
make 'Type 1' appropriate to them, it may be that the
need for rapid decisions would be better met by 'Type 2'.
63 1. Article 13 (Industrial Development) .
The two-thirds rule (Type 1) might be writ-
ten into 6 (b) and (c)-permission to use
measures inconsistent with obligations under
the Charter.
2. Article 38, paragraph 4 (New prefer-
ences). The two-thirds rule (Type 1) is al-
ready specified as regards criteria anti proce-
dures (though not as regards the determination
of particular applications or waiver), by the
reference to Article 66 (2) and should remain.
3. Article 28 (exceptions from non-discrim-
iriation) , There night be a case under para-
graph 2. (determination that exceptions are
being abused) for a two-thirds majority of
Type 2.
APPENDIX XIII
Article 68-Second alternative
(1) The Executive Board shall consist of
teen members of the Organization elected by
Conference, five of whom shall be eligible
immediate re-election.
(2) Subject to the provisions
(3) one-third of the members of
Board shall be elected each year
three years.
of
the
for
fif-
the
for
paragraph
Executive
a term of
(3) Same as first alternative.
(4) Same as first alternative.
APPENDIX XIV
Article 68-Third alternative
(1) The Executive Board shall consist of fif-
teen Members of the Organization elected by the
Conference. By virtue of their economic impor-
tance, six Members shall be appointed as perma-
nent members; nine other Members shall be
granted non-permanent seats. The total number
of seats may be increased by a decision of the
Conference taken with a two-thirds majority of
its members.
(2) The non-permanent members of the Ex-
ecutive Board shall be chosen for a period of
three years. At the first election of the non-
permanent members, three members shall be
elected for a term of one Near and three others
tor a term of two years. A retiring member shall
not be eligible for immediate re-election.
(3) These elections shall take place in ac-
cordance with arrangements to be approved by
the Conference by a two-thirds majority of its
members.
(4) Each member of the Executive Board shall
have one representative who may appoint alter-
nates and advisers.
APPENDIX XV
Article 68-Fourth alternative
(1) The Executive Board shall consist of
twenty Members of the Organization.
(2) Subject to the provisions of paragraph
(3), one-half of the members of the Executive
Board shall serve for a term of five years and
shall be appointed by the Members of the Or-
ganization having the largest share in the world
trade and belonging to the following trade
groups; Europe (two Directors), North America
(two Directors) , Latin America (two Directors),
Asia (two Directors), Oceania (one Director)
and Africa (one Director). Any change in the
relative position in world trade of members shall
be taken into consideration at the end of each
term of five years.
(3) One-half of the members of the Executive
Board shall be elected annually by members of
the Conference other than those entitled to ap-
point a member of the Board in accordance with
the provisions of paragraph (2). A retiring mem-
ber shall be eligible for immediate re-election.
(4) The Conference, upon the recommenda-
tion of the Executive Board, shall establish pro-
cedures for the purpose of carrying out the
provisions of this Article.
(5) Each member of the Executive Board shall
have one representative and may appoint alter-
nates and advisers to its representatives.
64 51
PART 111
Draft General Agreement on Tariffs and Trade
INTRODUCTION
1. The draft Agreement reproduces many
provisions of the Charter. Reservations en-
tered by delegates to those provisions of the
Charter, which reservations will be found in
Part II of this Report apply equally to the
corresponding provisions of the draft Agree-
ment.
2. The Drafting Committee considers that
there will need to be some provision made for
the provisional generalization to the trade of
governments not parties to the General Agree-
ment of the tariff of concessions granted under
the Agreement pending consideration by the
International Conference of the question
whether benefits under the Charter should
be extended to non-Members of the Organiza-
tion. However, as the Drafting Committee
did not consider the terms of Article 36 of the
Charter relating to non-Members, it was de-
cided to defer consideration of this question
until a later stage.
3. The delegates for Brazil and New Zea-
land reserved their positions regarding the
non-inclusion in the draft Agreement of pro-
visions relating to export subsidies. The dele-
gates for Brazil and China considered that
the provisions of Article 12 of the Charter
should be included in the draft Agreement.
The delegate for the United States considered
that the provisions contained in Article V
(Tarif Valuation) and Article XVII (Main-
tenance of Domestic Employment) should
not be included in the draft Agreement.
4. The delegate for Czechoslovakia felt
that the same degree of importance should be
attached to all of those provisions of the
Charter that are to become effective by virtue
of the Protocol to the draft Agreement as is
attached to the provisions of the Charter
which have been reproduced in the Agree-
ment. Should this not be possible by includ-
ing these provisions in the Agreement (prop-
erly adjusted and simplified) he considered
it appropriate to restrict the Agreement only
to tariffs, preferences and most-favoured-na-
tion treatment and to dispose of all other pro-
visions by including them in the Protocol.
The delegate for China associated himself
with the last of the comments made by the
delegate for Czechoslovakia.
5. The delegate for Australia stated that
his government attached particular import-
ance to the terms of the agreement in relation
to the coming into force of the terms of the
Charter as a whole. It therefore reserved its
position as to whether it was desirable to in-
corporate in the Agreement the whole of the
Charter.
6. The draft Agreement is passed on to
65
the Second Session as a working paper with-
out commitment to any government.
The governments of Australia, Belgium,
Brazil, Caada, Chile, China, Cuba, Czecho-
slovakia, France, India, Lebanon, Luxem-
bourg, Netherlands, New Zealand, Norway,
Union of South Africa, Union of Soviet So-
cialist Republics, United Kingdom and
United States*
Having been appointed by the Economic
and Social Council of the United Nations to
constitute a Preparatory Cornmittee to make
preparations for an International Conference
on Trade and Employment;
Having, in fulfilment of this function, pre-
pared and recommended to the said Confer-
ence the draft Charter for an International
Trade Organization of the United Nations
(hereinafter referred to as the Charter) the
text of which is set forth in the Report of the
Preparatory Committee of the Economic and
Social Council
Desiring to further the attainment of the
objectives of the said Conference by rnaking
effective among themselves such provisions of
the above-mentioned draft Charter as are
applicable at this stage and thus taking such
action prior to the Conference as will consti-
tute concrete achievement capable of general-
ization to all countries on equitable terns.
Hereby agree as follows:
Article I
(cf. Article 14 of the Charter)
General most-favoured-nation treatment
1. With respect to customs duties and
charges of any kind imposed on or in con-
nection with importation or exportation or
imposed on the international transfer of pay-
ments for imports or exports, and with respect
to the method of levying such duties and
charges, and with respect to all rules and
formalities in connection with importation or
exportation, and with respect to all matters
provided for in Article II, and advantage,
favour, privilege or immunity granted by any
contracting party to any product originating
in or destined for the territory of any other
country, shall be accorded immediately and
unconditionally to the like product originat-
ing in or destined for the territories of all
other contracting parties respectively.
*2. ....................................
1,, as expected, Syria also participates in the negotia-
tions, it would also be a party to the Agreement.
rThe delegate for Australia stated that his government
attached particular importance to the terms of the agree-
ment in relation to the coming into force of the terms of
the charter as a whole. It therefore reserved its position
as to whether it was desirable to incorporate in the Agree-
ment the whole of the charter.
This paragraph, relating to exceptions for preferences
of certain categories remaining after negotiations, would
be agreed upon after the negotiations at the Second Ses-
sion have been completed. Meanwhile, the provisions of
paragraph 2 of Article 14 and Article 24 of the draft
Charter.would apply. 52
Article Il
(cf. Article 15 of the Charter)
National treatment on internal taxation
and regulation
1. The contracting parties agree that
neither internal taxes nor other internal
charges nor internal laws, regulations or re-
quirements should be used to afford protec-
tion directly or indirectly for any national
product.
2. The products of the territory of any
contracting party imported into the territory
of any other contracting party shall be exempt
from internal taxes and other internal charges
of any kind higher than those imposed, di-
rectly or indirectly, on like products of na-
tional origin.
3. The products of the territory of any
contracting party imported into the territory
of any other contracting party shall be ac-
corded treatment no less favourable than that
accorded to like products of national origin.
in respect of all laws, regulations or require-
ments affecting their internal sale, offering
for sale, transportation, distribution or use
of any k-ind whatsoever. The provisions of
this paragraph shall be understood to pre-
clude the application of internal requirements
restricting the amount or proportion of an
imported product permitted to be mixed,
processed or used Provided that any such re-
quirement in force on the day of signature of
this Agreement may, subject to the provisions
of Article VIII, be continued until the expi-
ration of one year from the day on which this
Agreement enters into force. This period may
be extended in respect of any product if the
Committee provided for in Article XII,
(hereinafter referred to as the Committee)
concurs that the requirement concerned is less
restrictive of international trade than other
measures permissible under this Agreement.
4. The provisions of paragraphs l and 3
of this Article shall not be construed to
prevent the application, consistency with the
provisions of Article VIII, of internal laws,
regulations or requirements other than taxes
relating to the distribution or exhibition of
cinematograph films.
5. The provisions of this Article shall not
apply to the procurement by governmental
agencies of supplies for governmental use and
not for resale [nor for use in the production
of goods for sale].
Article III
(cf. Article I of the Charter)
Freedom of transit
1. Goods (including baggage) and also
vessels and other means of transport shall be
deemed to be in transit across the territory of
a contracting party when the passage across
such territory, with or without trans-shipment,
warehousing, breaking bulk, or change in the
mode of transport, is only a portion of a com-
plete journey, beginning and terminating
beyond the frontier of the contracting party
across whose territory the traffic passes. Traffic
of this nature is termed in this Article "traffic
in transit." The provisions of this Article
shall not apply to the operation of aircraft in
transit.
2. There shall be freedom of transit
throtigh the territories of the contracting par-
ties via the routes most convenient for inter-
national transit for traffic in transit to or from
the territories of other contracting parties.
No distinction shall be made which is based
on the nationality of persons, the fag or ves-
sels, the place of origin, departure, entry, exit
or destination, or on any circumstances relat-
ing to the ownership of goods or vessels or
other means of transport.
3. Any contracting party may require that
traffic in transit through its territory be
entered at the proper customhouse, but, ex-
cept in cases of failure to comply with applic-
able customs laws and regulations, such traf-
fic coming from or going to the territories of
other contracting parties shall not be subject
to any unnecessary delays or restrictions and
shall be exempt from customs duties and from
all transit duties or other charges imposed in
respect of transit, except charges for transpor-
tation or those commensurate with adminis-
trative expenses entailed by transit or with the
cost of services rendered.
4. All charges and regulations imposed by
contracting parties on traffic in transit to or
from the territories of other contracting
parties shall be reasonable, having regard to
the conditions of the traffic.
5. With respect to all charges, rules and
formalities in connection with transit, each
con tracting party shall accord to traffic in
transit to or from the territory of any other
contracting party treatment no less favourable
than the treatment accorded to traffic in transit
to or from any third country.
6. Each contracting party shall accord to
products which have been in transit through
the territory or any other contracting party
treatment no less favourable than that which
would have been accorded to such products
had they been transported from their place
of origin to their destination without going
through such territory. Any contracting party
shall, however, be free to maintain its require-
ments of direct consignment (expedition di-
rect) existing on the day of signature of this
Agreement in respect of any goods in regard
66 to which such direct consignment is a requisite
condition of eligibility for entry of the goods
at preferential rates of duty, or has relation to
the contracting party's prescribed method of
valuation for duty purposes.
Article IV
(cf. Article 17 of the Charter)
Anti-dumping and countervailing duties
1. No anti-dumping duty or charge shall
be imposed on any product of the territory
of any contracting party imported into the
territory of any other contracting party in
excess of an amount equal to the margin of
dumping under which such product is being
imported. For the purposes of this Article,
the margin of dumping shall be understood to
mean the amount by which the price of the
product exported from one country to another
is less than (a) the comparable price charged
for the like product to buyers in the domestic
market of the exporting country, or, in the
absence of such domestic price, either (b) the
highest comparable price at which the like
product is sold for export to any third country
in the ordinary course of commerce, or (c)
the cost of production of the product in the
country of origin plus a reasonable addition
for selling cost and profit; with due allowance
in each case for differences in conditions and
terms of sale, for difference in taxation, and
for other differences affecting price compar-
ability.
2. No countervailing duty shall be imposed
on any product of the territory of any con-
tracting party imported into the territory of
another contracting party in excess of an
amount equal to the estimated bounty or sub-
sidy determined to have been granted, directly
or indirectly, on the production or export of
such product in the country of origin or ex-
portation. The term "countervailing duty"
shall be understood to mean an additional
duty imposed for the purpose of offsetting any
bounty or subsidy bestowed, directly or in-
directly, upon the manufacture, production or
exportation of any merchandise.
3. No product of the territory of any con-
tracting party imported into the territory of
any other contracting party shall be subject to
anti-dumping or countervailing duty by
reason of the exemption of such product from
duties or taxes imposed in the country of
origin or exportation upon the like product
when consumed domestically, or by reason of
the refund of such duties or taxes.
4. No product of the territory of any con-
tracting party imported into the territory of
any other contracting party shall be subject to
both anti-dumping and countervailing duties
to compensate for the same situation of dump-
ing or export subsidization.
5. No contracting party shall impose any
anti-dumping or countervailling duty or
charge on the importation of any product of
the territories of other contracting parties
unless it determines that the effect of the
dumping or subsidization, as the case may be,
is such as materially to injure or threaten to
injure an established domestic industry, or is
such as to prevent the establishment of a
domestic industry,
6. Nothing in this Article shall preclude
parties to a regulatory commodity agreement
conforming to the principles of Chapter VII
of the Charter from incorporating in such
agreement provisions prohibiting, as between
themselves, the use of anti-dumping duties in
cases in which dumping, within the meaning
of paragraph 1 of this Article, may be permit-
ted under the terms of such an agreement.
Article V
(cf. Article 18 of the Charter)
Tariff valuation
The contracting parties recognize the
validity of the general principles of tariff
valuation set forth in the following sub-para-
graphs, and they undertake to give effect to
such principles, in respect of all products sub-
ject to duties, charges or restrictions based
upon or regulated in any manner by value,
at the earliest practicable date. Moreover,
they undertake upon a request by another
contracting party, to review the operation of
any of their laws or regulations relating to
value for duty purposes in the light of these
principles. The Committee is authorized to
request from contracting parties reports on
steps taken by them in pursuance of the pro-
visions of this paragraph.
(*) Alternative A
(a) The value for duty purposes of im-
ported products should be based on the actual
value of the kind of imported merchandise on
which duty is assessed, or the nearest ascer-
tainable equivalent of such value, and should
not be based on the value of products of na-
tional origin or on arbitrary or fictitous val-
uations.
Alternative B
(a) The value for duty of imported prod-
ucts should be based on their actual value
as represented by the price at which, at a de-
termined time and place, and in the ordinary
course of trade between independent buyer
and seller, like goods are sold or offered for
*Alternative A represents the text in the United States
Draft Charter. Different interpretations of the words
"actual value" were given by different delegates who sup-
plied alternatives B and C.
67 sale in quantities and under conditions com-
parable to those under which the imported
goods are sold or offered for sale, or the near-
est ascertainable equivalent of such value.
The value should not be based on the value
of products of national origin or on arbitrary
or fictitious valuations.
Alternative C
(a) Where an actual price of imported
products is not accepted as the basis for de-
termining their value for duty purposes, their
assessed value should not be based on the
value of products of national origin or on
arbitrary or spurious valuations, but shoud
satisfy clearly defined and stable conditions
which conform with commercial usage.
(b) The value for duty purposes of any
imported product should not include the
amount of any [customs duty or] internal tax,
applicable within the country of origin or
export from which the imported procluct has
been relieved by means of refund or made
exempt.
(c) In converting the value of any import-
ed product from one currency to another for
the purpose of assessing duty, the rate of
exchange to be used should be fixed in ac-
cordance with prescribed standards to reflect
effectively the current value of each currency
in commercial transactions.
(d) The bases and methods for determin-
ing the value of products subject to duties,
charges or restrictions based upon or regu-
lated by value should be stable and should
be given sufficient publicity to enable traders
to estimate, with a reasonable degree of cer-
tainty, the amount of duty likely to be im-
posed.
Article VI
(cf. Article 19 of the Charter)
Customs formalities
1. The contracting parties recognize the
principle that subsidiary fees and charges im-
posed on or in connectoin with importation
or exportation should be limited in amount
to the approximate cost of services rendered
and should not represent an indirect protec-
tion to domestic products or a taxation of
imports or exports for fiscal purposes. They
also recognize the need for reducing the num-
ber and diversity of such subsidiary fees and
charges, for minimizing the incidence and
complexity of import and export formalities,
and for decreasing and simplifying import
and export documentation requirements.
2. The contracting parties undertake to
give effect to the principles and objectives of
paragraph 1 of this Article at the earliest
practicable date. Moreover, they undertake,
upon a request by another contracting party,
to review the operation of any of their cus-
toms laws and regulations in the light of these
principles.
3. Except in cases of serious negligence,
greater than nominal penalties over and above
the duty properly payable should not be im-
posed by any contracting party in connection
with the importation of any product of the
territory of any other contracting party be-
cause of errors in documentation which are
obviously clerical in origin or with regard to
which good faith can be established.
4. The provisions of this Article shall ex-
tend to fees, charges, formalities and require-
ments relating to all customs matters, includ-
ing:
(a) consular transactions, such as consular
invoices and certificates;
(b) quantitative restrictions;
(c) licensing;
(d) exchange regulations;
(e) statistical services;
(f) documents, documentation and certi-
fication;
(g) analysis and inspection; and
(h) quarantine, sanitation and fumigation.
Article VII
(cf. Article 21 of the Charter)
Publications and administration of trade reg
ulations
Advance notice of restrictive regulations
1. Laws, regulations, judicial decisions and
administrative rulings of general application
made effective by any contracting party per-
taining to the classification or the valuation of
products for customs purposes, or to rates of
duty, taxes or other charges, or to require-
ments, restrictions or prohibitions on imports
or exports or on the transfer of payments
therefor, or affecting their sale, distribution,
transportation or insurance, or affecting their
warehousing, inspection, exhibition, process-
ing, mixing or other use, shall be published
promptly in such a manner as to enable trad-
ers and governments to become acquainted
*with them. Agreements in force between the
government or a governmental agency of any
contracting party and the government or a
governmental agency of any other country af-
fecting international trade policy shall also
be published. This paragraph shall not re-
quire any contracting party to disclose con-
fidential information which would impede
law enforcement, or otherwise be contrary to
68 the public interest or would prejudice the
legitimate business interests of particular en-
terprises, public or private.
2. Each contracting party shall administer
in a uniform, impartial and reasonable man-
ner all its laws, regulations, decisions and rul-
ings of the kind described in paragraphs 1 of
this Article.
3. No administrative ruling of any con-
tracting party effecting an advance in a rate
of import duty or other charge under an estab-
lished and uniform practice, or imposing a
new or more burdensome requirement, re-
striction or prohibition on imports, or on the
transfer of payments therefor, shall, as a gen-
eral rule, and within the limits of adminis-
trative practicabi'-ty, be applied to products
of the territory of any other contracting party
already en route at the time of publication
thereof in accordance with paragraph 1 of
this Article, Provided that if any contracting
party customarily exempts from such new or
increased obligation products entered for
consumption or withdrawn from warehouse
for consumption duringa period of thirty days
after the date of such publication, such prac-
tice shall be considered in full compliance
with this paragraph. The provisions of this
paragraph shall not apply to anti-dumping or
countervailing duties.
Article VIII
Schedu les of concessions on particular
products*
1. Each contracting party shall accord to
the commerce of the other contracting parties
Olt is contemplated that there would appear at an ap-
propriate place in each of the Schedules a provision along
tie following lincs: "The products of the territories of
the contracting parties, enumerated and described in this
Schedule, shall, on their importation into (name of coun-
try) be exempt from ordinary customs duties in excess of
those set foith and provided for in this Schedule, subject
to the conditions therein set out. Such products shall also
be exempt from ail other duties or charges imposed on or
in connection with importation. in excess of those imposed
on the day of the signature of this Agreement or required
to be imposed thereafter under laws of (name of country)
in force on that day provided that this sentence shall not
prevent the Government of (name of country) from im-
posing at any time on the importation of any product a
charge equivalent to an internal tax imposed in respect
of the like domestic product or in respect of an article
from which the imported product has been manufactured
or produced in whole or in part.
It is also contemplated that there would be included at
an appropriate place in the Agreement undertakings de-
signed to prevent the nullification or impairment of the
benefits of the tariff concessions of the Agreement which
would result from any reclassification of produces at higher
rates of duty than those provided for in the Schedules.
Such undertakings might take the form either of pro-
visions designed to prevent such reclassification entirely,
during the life of the Agreement, or to prevent the im-
position of higher duties resulting from such reclassifica-
tion, or, in cases where neither of these two courses might
be practicable, of provisions for negotiations to restore the
previous balance between concessions and counter-con-
cessions.
the treatment provided for in the appropriate
Schedule annexed to this Agreement and
made an integral part hereof.
2. No contracting party shall alter the gen-
eral principles applicable in its territory for
determining dutiable value and converting
currencies so as to impair the value of any
of the concessions provided for in the appro-
priate Schedule annexed to this Agreement.
3. If any contracting party, after the day
of signature of this Agreement, established
or authorizes, formally or in fact, an effective
monopoly of the importation of any product
for which a maximum rate of duty is provided
in the appropriate Schedule annexed to this
Agreement, the price for such imported prod-
uct charged by the monopoly in the home
market shall not exceed the landed cost (be-
fore payment of any duty) by more than such
maximum duty; after due allowance for in-
ternal taxes, transportation, distribution and
other expenses incident to purchase, sale or
further processing and for a reasonable mar-
gin of profit. For the purpose of applying
this margin regard may be had to average
landed costs and selling prices of the monop-
oly over recent periods. The monopoly shall,
as far as administratively practicable, and sub-
ject to the other provisions of this Agreement,
import from the territories of contracting
parties and offer for sale at prices charged
within such maximum margin such quantities
of the product as will be sufficient to satisfy
the full domestic demand for the imported
product, account being taken of any ration-
ing to consumers of the imported and like
domestic product which may bein force at
that time.
Article IX
(cf. Article 25 of the Charter)
General elimination of quantitative
restrictions
1. Except as otherwise provided in this
Agreement, no prohibitions or restrictions
other than duties, taxes or other charges,
whether made effective through quotas, im-
port licenses or other measures, shall be im-
posed or maintained by any contracting party
on the importation of any product of the
territory of any other contracting party or on
the exportation or sale for export of any prod-
uct destined for the territory of any other con-
tracting party.
2. The provisions of paragraph 1 of this
Article shall not extend to the following:
(a) Prohibitions or restrictions on imports
or exports instituted or maintained during
69 the early post-war transitional period which
are essential to
(i) The equitable distribution among
the several consuming countries of products
in short supply, whether such products are
owned by private interests or by the govern-
ment of any contracting party;
(ii) The maintenance of wartime price
control by a contracting party undergoing
shortages subsequent to the war;
(iii) The orderly liquidation of tem-
porary surpluses of stocks owned or con-
trolled by the government of any contract-
ing party or of industries developed in the
territory of any contracting party owing to
the exigencies of the war, which it would be
uneconomic to maintain in normal condi-
tioris Provided that prohibitions or restric-
tions for this purpose may not be instituted
by any contracting party after the date on
which this Agreement enters into force ex-
cept after consultation with other interest-
ed contracting parties with a view to appro-
priate international action.
Import and export prohibitions and re-
strictions instituted or maintained under sub-
paragraph (a) shall be removed as soon as
the conditions giving rise to them have ceased,
and in any event, not later than 1 July 1949,
Provided that this period may, with the con-
currence of the Committee, be extended in
respect of any product for further periods not
to exceed six months each.
(b) Export prohibitions or restrictions
temporarily applied to relieve critical short-
ages of foodstuffs or other essential products
in the territory of the exporting contracting
party.
(c) Import and export prohibitions or re-
strictions necessary to the application of stand-
ards for the classification and grading of com-
modities in international trade.
(d) Export or import quotas applied un-
der regulatory inter-governmental commodity
agreements conforming to the principles of
Chapter VII of the Charter.
(e) Import restrictions on any agricul-
tural or fisheries product, imported in any
form, necessary to the enforcement of govern-
mental measures which operate (i) to restrict
the quantities of the like domestic product
permitted to be marketed or produced, or
(ii) to remove a temporary surplus of the like
domestic product by making the surplus avail-
able to certain groups of domestic consumers
free of charge or at prices below the current
market level. Any contracting party impos-
ing restrictions on the importation of any
product pursuant to this sub-paragraph shall
give public notice of the total quantity or
value of the product permitted to be imported
during a specified future period and of any
change in such quantity or value. Moreover,
any restrictions applied under (i) of this
sub-paragraph shall not bc such as will reduce
the total of imports relative to the total of
domestic production, as compared with the
proportion which might reasonably be expect-
ed to rule between the two in the absence
of the restrictions. In determining this pro-
portion the contracting party shall pay due
regard to the proportion prevailing during
a previous representative period and to any
special factors which may have affected or may
be affecting the trade in the product con-
cerned. - The contracting party shall consult
with any other contracting parties which are
interested in the trade in question and which
wish to initiate such consultations.
(f) Import and export prohibitions or
restrictions on private trade for the purpose
of establishing a new, or maintaining an exist-
ing, monopoly of trade for a state-trading en-
terprise operated under Article XV.
Article X
(cf. Article 26 of the Charter)
Restrictions to safeguard the balance of
payments
1. Contracting parties may need to use
import restrictions as a means of safeguarding
their external financial position and as a step
toward the restoration of equilibrium in their
balance of payments on a sound and listing
basis, particularly in view of their increased
demand for imports needed to carry out their
domestic employment, reconstruction, de-
velopment or social policies. Accordingly,
notwithstanding the provisions of Article IX,
any contacting party may restrict the quan-
tity or value of merchandise permitted to be
imported insofar as this is necessary to safe-
guard its balance of payments and monetary
reserves.
2. The use of import restrictions under
paragraph 1 of this Article shall be subject to
the following requirements:
(a) No contracting party shall institute
(or maintain) new restrictions or intensify
existing restrictions except to the extent ne-
cessary to stop or to forestall the imminent
threat of, or to stop, a serious decline in the
level of its monetary reserves or, in the case
of a contracting party with very low monetary
reserves, to achieve a reasonable rate of in-
crease in its reserves. Due regard should be
70 paid in each case to any special factors which
may be affecting the level of the contracting
party's reserves, to any commitments or other
circumstances which may be affecting its need
for reserves, and to any special credits or other
resources which may be available to protect its
reserves.
(b) Contracting parties shall eliminate
the restrictions when conditions would no
longer justify their imposition [or mainte-
nance] under sub-paragraph (a) , and shall
relax them progressively as such conditions
are approached.
(c) Contracting parties shall not apply the
restrictions in such a manner as to exclude
completely imports of any class of goods.
3. (a) Anycontracting party which is not
applying restrictions under paragraphs 1 and
2 of this Article, but which is considering the
need for their institution, shall, before insti-
tuting such restrictions (or, in circumstances
in which prior consultation is impracticable,
immediately following upon the institution
of such restrictions) consult with the Com-
mittee as to the nature of its balance-of-pay-
ments difficulties, the various corrective mea-
sures which may be available, and the possi-
ble effects of such measures on the economies
of other contracting parties. The Committee
shall invite the International Monetary Fund
to participate in the consultations. No con-
tracting party shall be required during such
discussions to indicate in advance the choice
or timing of any particular measures which
it may ultimately determine to adopt.
(b) The Committee may at any time in-
vite any contracting party applying import
restrictions under paragraphs l and 2 of this
Article to consult with it about the form or
extent of the restrictions, and shall invite a
contracting party substantially intensifying
such restrictions to consult accordingly within
thirty days. Contracting parties thus invited
shall participate in such discussions. In the
conduct of such discussions the Committee
shall consult the International Monetary
Fund and any other appropriate inter-gov-
ernmental organization, in particular with re-
gard to the alternative methods available to
the contracting party in question of meeting
its balance-of-payments difficulties. The
Committee shall, not later than two years
from the day on which this Agreement enters
into force, review all restrictions existing on
that day and still applied under paragraphs.
1 and 2 at the time of the review.
(c) Any contracting party may consult
with the Committee with a view to obtaining
the prior approval of the Committee for re-
strictions which the contracting party pro-
poses under paragraplhs 1 and 2 of this article
to maintain, intensity or institute, or for the
maintenance, intensification or institution of
restrictions tender specified future conditions.
The Commiittee shall. invite the International
Monetary Fund to participate in the consulta-
tions. As a result of such consultations, the
Committee may approve in advance the main-
tenance, intensification or institution of re-
strictions by the contracting party in ques-
tion insofar as the general extent, degree
and duration of the restrictions are con-
cerned. To the extent to which such ap-
proval has been given the action of the con-
tracting party applying restrictions shall not
be open to challenge under sub-paragraph
(d), on the ground that such action is incon-
sistent with the provisions of paragraphs i
and 2 of this Article.
(d) Any contracting pa.ty which consid-
ers that any other contracting party is apply-
ing import restrictions under paragraphs i
and 2 in a manner inconsistent with the pro-
visions of those paragraphs or of Articles XI
and XII, or in a manner which unnecessarily
damages its commercial interests, may bring
the matter for discussion to the Committee.
The contracting party applying the restric-
tions shall then participate in discussions of
the reasons for its action. The Commmittee,
if it is satisfied that there is a prima facie case
that the complaining party's interests are ad-
versely affected, may, after consultation with
the International Monetary Fund on any mat-
ter falling within the competence of the Fund,
and, if it considers it desirable, after submit-
ting observations to the parties with the aim
of achieving a satisfactory settlement of the
matter in question, recommend the with-
drawal or modification of restrictions which
it determines are being applied in a manner
inconsistent with the provisions of paragraphs
I and 2 of this Article or of Articles XI and
XII or in a manner which unnecessarily dam-
ages the interests of another contracting party.
If the restrictions are not withdrawn or modi-
fied in accordance with the recommendation
of the Committee within sixty days, such other
contracting party or parties shall be released
from such obligations incurred under this
Agreement towards the contracting party ap-
plying the restrictions as the Committee may
approve.
(e) The Committee in reaching its de-
termination under sub-paragraph (d) shall
not recommend the withdrawal or general re-
laxation of restrictions on the ground that the
existing or prospective balance-of-payments
difficulties of the contracting party in question
could be avoided by a change in that contract-
71 ing party in question could be avoided by a
change in that contracting party's domestic
employment, reconstruction, d velopment or
social policies. In carrying out such domestic
policies, however, contracting parties shall
pay due regard to the need for restoring equi-
libriurn in the balance of payments on a sound
and lasting basis.
4. In giving effect to the restrictions on
imports under this Article, a contracting
party may restrict imports of products accord-
ing to their relative essentiality in such a way
as to give priority to the importation of
products required by its domestic employ-
ment, reconstruction, development or social
policies and programmes. In so doing the con-
tracting party shall avoid all unnecessary
damage to the commercial interests of other
contracting parties.
5. If there is persistent and widespread ap-
plication of import restrictions under this
Article, indicating the existence of a general
disequilibrium which is restricting inter-
national trade, the Committee shall seek con-
sultation with the International Monetary
Fund. The Committee may then, in collabo-
ration throughout with the Fund, initiate dis-
cussions to consider whether other measures
might be taken, either by those contracting
parties whose balances of payments are under
pressure or by those contracting parties whose
balances of payments are tending to be ex-
ceptionally favourable: or by any appropri-
ate inter-governmental organization, to re-
move the underlying causes of the disequili-
brium. On the invitation of the Committe
contracting parties shall participate in such
discussions.
6: Contracting parties recognize that dur-
ing the next few years all of them. will be con-
fronted in varying degrees with problems of
economic adjustment resulting from the war.
During this period the Committee shall, when
required to take decisions under this Article
or under Article XII, take full account of the
difficulties of postwar adjustment.
7. Throughout this Article and Articles
XI and XII the phrase "import restrictions"
includes the restriction of imports by state-
trading enterprises to an extent greater than
that which would be permissible under Article
VIII.
Article XI
(cf. Article 27 of the Charter)
Non-discriminatory administration of
quantitative restrictions
1. No prohibition or restriction shall be
applied by any contracting party on the im-
portation of any product of the territory of
any other contracting party or on the exporta-
tion of any product destined for the territory
of any other contracting party, unless the im-
portation of the like product of aIl third
(countries or the exportation of the like
product to all third countries is similarly pro-
hibited or restricted.
2. Contracting parties shall observe the
following provisions in applying import re-
strictions:
(a) The administration of the restrictions
should be carried out in such a way as to re-
suit in a distribution of trade which ap-
proaches as closely as possible to the shares
which the various contracting parties might
be expected to obtain as the result of inter-
national competition in the absence of re-
strictions.
(b) Wherever practicable, quotas repre-
senting the total amount of permitted imports
(whether allocated among supplying countries
or not) shall be fixed, and notice given of their
amount in accordance with paragraph 3 (b)
of this article.
(c) In cases in which quotas are not prac-
ticable, the restrictions may he applied by
means of import licenses or permits without a
quota.
(d) Import licenses or permits, whether or
not issued in connection with quotas, shall
not (save for purposes of operating quotas
allocated in accordance with sub-paragraph
(e) ) require or provide that the license or
permit be utilized for the importation of the
product concerned from a particular country
or source.
(e) In cases in which a quota is allocated
among supplying countries, the shares of the
various supplying contracting parties should
in principle be determined in accordance
with commercial considerations such as, e.g.,
price, quality and customary sources of supply.
For the purpose of appraising such commer-
cial considerations, the contracting parties
applying the restrictions may seek agreement
with respect to the allocation of shares in the
quota with all other contracting parties
having a substantial interest in supplying the
product concerned. In cases in which this
method is not reasonably practicable, the con-
tracting party concerned shall allot to contract-
ing parties having a substantial interest in
supplying the product, shares based upon the
proportions supplied from the territories of
such contracting parties during a previous
representative. period, of the total quantity or
value of imports of the product, due account
being taken of any special factors which may
have affected ar may be affecting the trade in
the product. No conditions or formalities
shall be imposed which would prevent any
72 contracting party from utilizing fully the share
of any such total quantity or value which has
been alloted to it, subject to importation be-
ing made within any prescribed period to
which the quota may relate.
3. (a) In cases in which import licenses are
issued in connection with import restrictions,
the contracting party applying the restriction
shall provide, upon the request of any con-
tracting party having an interest in the trade
in the product concerned, all relevant infor-
mation as to the administration of the restric-
tion, the import licenses granted over a past
recent period and the distribution of such
licenses among supplying countries, Provided
that there shall be no obligation to supply in-
formation as to the names of importing or
supplying enterprises.
(b) In the case if import restrictions in-
volving the fixing of quotas, the contracting
party applying the restrictions shall give
public notice of the total quantity or value
of the product or products, which will be
permitted to be imported during a specified
future period and of any change in such quan-
tity or value. Any supplies of the product
in question which were en route at the time
at which public notice was given shall not be
excluded from entry, Provided that they may
be counted, so far as practicable, against the
quantity permitted to be imported in the
period in question, and also, where necessary,
against the quantities permitted to be im-
ported in the next following period or periods,
and Provided further that if any contracting
party customarily exempts from such restric-
tions products entered for consumption or
withdrawn from warehouse for consumption
during a period of thirty days after the day of
such public notice, such practice shall be con-
sidered full compliance with this sub-para-
graph.
(c) In the case of quotas allocated among
supplying countries, the contracting party ap-
plying the restriction shall promptly inform
all other parties having an interest in supply-
ing the product concerned of the shares in
the quota, by quantity or value, currently
allocated to the various supplying countries
and shall give public notice thereof.
4. With regard to restrictions applied in
accordance with sub-paragraph 2 (e) of this
Article or under sub-paragraph 2 (e) of
Article IX, the selection of a representative
period for any product and the appraisal of
any special factors affecting the trade in the
product shall be made initially by the con-
tracting party applying the restriction, Pro-
vided that such contracting party shall, upon
the request of any other contracting party
having a substantial interest in supplying that
product or upon the request of the Commit-
tee, consult promptly with the other contract-
ing party or with the Committee regarding
the need for an adjustment of the base period
selected or for the re-appraisal of the special
factors involved.
5. The provisions of this Article shall apply
to any tariff quota established or maintained
by any contracting party and insofar as is ap-
plicable the principles of this Article shall also
extend to export restrictions and to any
internal regulations or requirements under
paragraphs 3 and 4 of Article Il.
Article XII
(cf. Article 28 of the Charter)
Exceptions to the rule of non-discrimination
1. The provisions of Articles IX, X and XI
shall not preclude
(a) Restrictions with equivalent effect to
exchange restrictions authorized under Sec-
tion 3 (b) of Article VII of the Articles of
Agreement of the International Monetary
Fund;
(b) Prohibitions or restrictions in accord-
ance with sub-paragraph 2 (a) (i) or 2 (d)
of Article IX;
(c) Conditions attaching to exports which
are necessary to ensure that an exporting
country receives for its exports its own cur-
rency or the currency of any member of the
International Monetary Fund specified by the
exporting country;
(d) Restrictions in accordance with Article
X which either
(i) are applied against imports fror.1
other countries but not as between then-
selves by a group of territories having a
common quota in the International Mone-
tary Fund, Provided that such restrictions
are in all other respects consistent with
Article XI, or
(ii) Assist in the period until 31 Decem-
ber 1951, by measures not involving sub-
stantial departure from the provisions of
Article XI a country whose economy has
been disrupted by war;
(e) Restrictions in accordance with Article
X which both
(i) Provide a contracting party with ad-
ditional imports above the maximum total
of imports which it could afford in the
light of the requirements of paragraph 2
of Article X if its restrictions were consist-
ent with Article XI, and
(ii) Have equivalent effect to exchange
73 restrictions, which are permitted to that
contracting party under the Articles of
Agreement of the International Monetary
Fund or under the terms of any special ex-
change agreement, which may have been
made between the contracting party and
the Committee under Article XIII, Pro-
vided that a contracting party, which is not
applying restrictions on payments and
transfers for current international trans-
actions, may apply import restrictions under
(i) of this sub-paragraph in special cir-
cumstances and only with the prior ap-
proval of the Committee in agreement with
the International Monetary Fund.
2. If the Committee finds, after consulta-
tion with the International Monetary Fund
on matters within the competence of the
Fund, that import restrictions or exchange
restrictions on payments and transfers in con-
nection with imports are being applied by a
contracting party in a discriminatory man-
ner inconsistent with the exceptions provided
under this Article or in a manner which dis-
criminates unnecessarily against the trade of
another contracting party, the contracting
party shall within sixty days remove the dis-
criminations or modify it as specified by the
Committee, Provided that a contracting party
may, if it so desires, consult with the Commit-
tee to obtain its prior approval for such dis-
crimination, under the procedure set forth in
paragraph 3 (c) of Article X and to the
extent that such approval is given, the dis-
crimination shall not be open to challenge
under this paragraph.
3. When three-quarters of the contracting
parties of the Organization have accepted the
obligations of Sections 2, 3 and 4 of Article
VIII of the Articles of Agreement of the In-
ternational Monetary Fund, but in any event
before 31 December 1951, the Committee
shall review the operation of this Article, in
consultation with the International Monetary
Fund, with a view to the earliest possible
elimination of any discrimination, under sub-
paragraphs 1 (e) (i) and (ii) of this Article,
which restricts the expansion of world trade.
Article XIII
(cf. Article 29 of the Charter)
Exchange arrangements
1. The Committee shall seek co-operation
with the International Monetary Fund to the
end that the Committee and the Fund may
pursue a co-ordinated policy with regard to
exchange questions within the competence
of the Fund and questions of quantitative re-
strictions or other trade measures within the
competence of the Committee.
2. Contracting parties shall not seek by ex-
change action to frustrate the provisions of
this Agreement and shall not seek by trade
action .to frustrate the purposes of the Inter-
national Monetary Fund.
3. In order to avoid the imposition of trade
restrictions and discrimination through ex-
change techniques and in order to avoid the
danger of conflicting jurisdiction between the
Committee and the International Monetary
Fund in exchange matters, the contracting
parties shall also undertake membership of
the International Monetary Fund, Provided
that any government which is not a member
of the International Monetary Fund may ac-
cept this Agreement if, upon acceptance, it
undertakes to enter as soon as possible into
special exchange agreement with the Commit-
tee which would become part of its obliga-
tions under this Agreement, and Provided
further that a contracting party which ceases
to be a member of the International Monetary
Fund shall forthwith enter into a special ex-
change agreement with the Committee, which
shall then become part of its obligations under
this Agreement.
4. A special exchange agreement between
a contracting party and the Committee under
paragraph 3 of this Article must provide to
the satisfaction of the Committee, collaborat-
ing throughout with the International Mone-
tary Fund, that the purposes common to, the
Committee and the Fund will not be frustrat-
ed as a result of action in exchange matters
by the contracting party in question.
5. A contracting party which has made
such an agreement undertakes to furnish the
Committee with the information which it
may require, within the general scope of
Section 5 of Article VIII of the Articles of
Agreement of the International Monetary
Fund, in order to carry out its functions re-
lating to such agreement.
6. The Committee shall seek and accept
the opinion of the International Monetary
Fund as to whether action by the contracting
party in exchange matters is permissible un-
der the terms of the special excha-nge agree-
ment and shall act in collaboration with the
International Monetary Fund on all ques-
tions which may arise in the working of a
special exchange agreement under this
Article.
Article XIV
(cf. Article 30 of the Charter)
General under taking regarding subsidies
If any contracting party grants or maintains
any subsidy, including any form of income or
price support, which operates directly or in-
74 directly to increase exports of any product
from, or to reduce imports of any product into
its territory, the contracting party shall notify
the Committee in writing as to the extent
and *nature of the subsidization, as to the
estimated effect of the subsidization on the
quantity of the affected product or products
imported into or exported from the territory
of the contracting party and as to the condi-
tions making the subsidization necessary. In
any case in which it is determined, by consul-
tation through the Committee among the con-
tracting parties having an important interest
in the trade in the product concerned, that
serious prejudice to the interest of any other
contracting party is caused or threatened by
any such subsidization, the contracting party
granting the susidization shall, upon request,
discuss with the other contracting party or
contracting parties concerned, or with the
Committee, the possibility of limiting the sub-
sidization.
Article XV
(cf. Article 31 of the Charter)
Non-discriminatory administration of State-
trading enterprises
I. If any contracting party establishes or
maintains a state enterprise, wherever located,
which imports, exports, purchases, sells, or
distributes any product, or if any contracting
party grants exclusive or special privileges,
formally or in effect, to any enterprise to
import, export, purchase, sell, distribute or
produce any product, the commerce of other
contracting parties shall be accorded treat-
ment no less favourable than that accorded
to the commerce of any country other than
that in which the enterprise is located in re-
spect of the purchase or sale by such enterprise
of any product. To this end such enterprise
shall, in making its external purchases or
sales ot any product, be influenced solely by
commercial considerations, such as price,
quality, marketability, transportation and
other terms of purchase or sale, having due
regard to any differential customs treatment
maintained consistently with the other pro-
visions of this Agreement.
2. The provisions of paragraph 1 relating
to purchases or imports by state enterprises
shall apply to purchases or imports of prod-
ucts for re-sale [or for use in the production
of goods for sale]. With respect to purchase
or imports by state enterprises of products
for governmental use and not for re-sale [or
for use in the production of goods for sale]
contracting parties shall accord to the com-
merce of other contracting parties fair and
75
equitable treatment, having full regard to all
relevant circumstances.
3. This Article shall apply to any enter-
prise, organ or agency in which there is effec-
tive control by the Government of a contract-
ing party [or over whose trading operations
the government of a contracting party exer-
cises effective control by virture of the spe-
cial or exclusive privileges granted to the
enterprise] [or over whose trading operations
a government is under the arrangements pro-
viding for the special or exclusive privileges
granted to the enterprise, legally entitled to
exercise effective control].
Article XVI
(cf. Article 4 of the Charter)
Maintenance of domestic employment
1. Each contracting party shall take action
designed to achieve and maintain full and
productive employment and high and stable
levels of effective demand within its own jur-
isdiction through measures appropriate to its
political, economic and social institutions.
2. Measures to sustain employment and de-
mand shall be consistent wtih the other pur-
poses and provisions of this Agreement and in
the choice of such measures each contracting
party shall seek to avoid creating balance-of-
payments difficulties for other contracting
parties.
Article XVII
(cf. Article 13 of the Charter)
Government assistance to economic
development
1. The contracting parties recognize that
special governmental assistance may be re-
quired in order to promote the establishment
or reconstruction of particular industries and
that such assistance may take the form of pro-
tective measures. At the same time the con-
tracting parties recognize that an unwise use
of such measures would impose undue burdens
on their own economies and unwarranted re-
strictions on international trade and might
increase unnecessarily the difficulties of ad-
justment for the economies of other countries.
2. (a) If a contracting party, in the interest
of its programme of economic development,
considers it desirable to adopt any protective
measure which would conflict with any other
provision of this Agreement, it shall so notify
the Committee and shall transmit to the Com-
mittee a written statement of the considera-
ations in support of the adoption of the
proposed measure. The Committee shall promptly inform those contracting parties
whose trade would be substantially affected by
the proposed measure and afford them an op-
portunity of presenting their views. The
Committee shall then promptly examine the
proposed measure in the light of the provi-
sions of this Agreement and the considerations
presented by the applicant contracting party,
the views presented by the other contracting
parties which would be substantially affected
by the proposed measure, and such criteria as
to productivity and other factors as it may
establish, taking into account the stage of
economic development or reconstruction of
the contracting party.
(b) If, as a result of its examination pur-
suant to sub-paragraph (a), the Committee
concurs in any measure which would be in-
consistent with any obligation which the ap-
plicant contracting party has assumed under
Article VIII of this Agreement, or which
would tend to nullify or impair the benefit to
such other contracting party or parties of any
such obligation, the Committee shall sponsor
and assist in negotiations between the appli-
cant contracting party and the other contract-
ing party or parties which would be substan-
tially affected, with a view to obtaining sub-
stantial agreement. Upon such agreement be-
ing reached the Committee may release the
applicant contracting party from the obliga-
tion in question or from any other relevant
obligation under this Agreement, subject to
such limitations as may have been agreed
upon in the negotiations between the con-
tracting parties concerned or such further lim-
itations as the Committee may impose.
(c) If, as the result of its examination pur-
suant to sub-paragraph (a), the Committee
concurs in any measure, other than those pro-
vided for in sub-paragraph (b), which would
be inconsistent with any other provision of
this Agreement, the Committee may release
the applicant contracting party from any obli-
gation under such provision, subject to such
limitations as the Committee may impose.
Article XVIII
(cf. Article 34 of the Charter)
Emergency action on imports of particular
products
1. If, as a result of unforeseen develop-
ments and of the effect of any obligations in-
curred under or pursuant to this Agreement,
any product is being imported into the terri-
tory of any contracting party in such increased
quantities and under such conditions as to
cause or threaten serious injury to domestic
producers of like or directly competitive
products (or, in the case of a product which is
the subject of a concession with respect to a
preference, is being imported under such con-
ditions as to cause or threaten serious injury
to producers in a territory which receives or
received such preference), the contracting
party shall be free to suspend the obligation
in respect of such product in whole or in part,
or to withdraw or modify the concession to
the extent and for such time as may be neces-
sary to prevent such injury.
2. Before any contracting party shall take
action pursuant to the provisions of para-
graph I of this Article, it shall give notice in
writing to the Committee as far in advance
as may be practicable and shall afford the
Committee and those contracting parties hav-
ing a substantial interest as exporters of the
product concerned, an opportunity to consult
with it in respect of the proposed action. In
critical and exceptional circumstances such
action may be taken provisionally without
prior consultation, Provided that consultation
shall be effected immediately following upon
the taking of such action.
3. If agreement among the interested con-
tracting parties with respect to the action is
not reached, the contracting party which
proposed to take or continue the action,
shall, nevertheless, be free to do so, and if
such action is taken or continued, the affected
contracting parties shall then be free, not later
than sixty days after such action is taken, to'
suspend, upon the expiration of thirty days
from the day on which written notice of such
suspension is received by the Committee, the
application to the trade of the contracting
party taking such action, of such substantially
equivalent obligations or concessions under
this Agreement the suspension of which the
Committee does not disaprove. In cases of
abuse the Committee may authorize an af-
fected contracting party to suspend obliga-
tions or concessions in addition to those which
may be substantially equivalent to the action
originally taken.
Article XIX
(cf. Article 35 of the Charter)
Consultation-Nullification or impairment
1. Each contracting party shall accord
sympathetic consideration to, and shall afford
adequate opportunity for consultation regard-
ing, such representations as may be made by
any other contracting party with respect to the
operation of customs regulations and formali-
ties, anti-dumping and countervailing duties,
quantitative and exchange regulations, sub-
sidies, state-trading operations, sanitary laws
and regulations for the protection of human,
animal or plant life or health, and generally
76 all matters affecting the operation of this
Agreement and shall, in the course of such
consultation provide the other contracting
party with such information as will enable
a full and fair appraisal of the situation which
is the subject of such representations.
2. If any contracting party should consider
that any other contracting party is applying
any measure, whether or not it conflicts with
the terms of this Agreement or of its proto-
cols or that any situation exists, which has the
effect of nullifying or impairing any object of
this Agreement or of such Protocol, the con-
tracting party or parties concerned shall give
sympathetic consideration to such written rep-
resentations or proposals as may be made with
a view to affecting a satisfactory adjustment of
the matter. If no such adjustment can be
affected, the matter may be referred to the
Committee, which shall, after investigation,
and, if necessary, after consultation with the
Economic and Social Council of the United
Nations and any appropriate inter-govern-
mental organizations, make appropriate rec-
ommendations to the contracting parties con-
cerned. The Committee, if it considers the
case serious enough to justify such action, may
authorize a contracting party or parties to
suspend the application to any other contract-
ing party or parties, of such specified obliga-
tions or concessions under this agreement as
may be appropriate in the circumstances. If
such obligations or concessions are in fact
suspended, any affected contracting party
shall then be free, not later than sixty days
after such action is taken, to withdraw from
this Agreement upon the expiration of sixty
days from the day on which written notice of
such withdrawal is received by the Committee.
Article XX
(cf. Article 37 of the Charter)
General exceptions
Subject to the requirement that such meas-
ures are not applied in a manner which would
constitute a means of arbitrary or unjusti-
fiable discrimination between countries where
the same conditions prevail, or a disguised
restriction on international trade, nothing in
this Agreement shall be construed to prevent
the adoption or enforcement by any contract-
ing party of measures:
(a) Necessary to protect public morals;
(b) For the purpose of protecting human,
animal or plant life or health if correspond-
ing domestic safeguards under similar condi-
tions exist in the importing country;
(c) Relating to fissionable materials;
(d) Relating to the traffic in arms, ammu-
nition and implements of war and to such
traffic in other goods and materials as is car-
ried on for the purpose of supplying a mili-
tary establishment;
(e) In time of war or other emergency in
international relations, relating to the protec-
tion of the essential security interests of a con-
tracting party;
(f) Relating to the importation or expor-
tation of gold or silver;
(g) Necessary to secure compliance with
laws or regulations which are not inconsistent
with the provisions of this Agreement, such as
those relating to customs enforcement, decep-
tive practices, and the protection of patents,
trade marks and copyrights;
(h) Relating to the products of prison la-
bour;
(i) Imposed for the protection of national
treasures of artistic, historic or archaelogical
value;
(j) Relating to the conservation of ex-
haustible natural resources if such measures
are taken pursuant to international agree-
ments or are male effective in conjunction
with restrictions on domestic production or
consumption;
(k) Undertaken in pursance of obligations
under the United Nations Charter for the
maintenance or restoration of international
peace and security.
Article XXI
(cf Article 38 of the Charter)
Territorial application-Frontier traffic-
Customs unions
1. In the application of the provisions of
this Agreement the territory of each con-
tracting party shall be considered as a single
customs territory provided that if there are
two or more customs territories under the
jurisdiction of any contracting party, each
such customs territory shall be considered as
though it were a separate contracting party.
2. The provisions of this Agreement shall
not be construed to prevent:
(a) Advantages accorded by any contract-
ing party to adjacent countries in order to
facilitate frontier traffic; or
(b) The formation of a customs union,
Provided that the duties and other regulations
of commerce imposed by any such union in
respect of trade with contracting parties shall
not on the whole be higher or more strin-
77 gent than the average level of the duties and
regulations of commerce applicable in the
constituent territories prior to the formation
of such union.
3. Any contracting party proposing to enter
into a customs union shall consult with the
Committee and shall make available to the
Committee such information regarding the
proposed union as will enable it to make such
reports and recommendations to contracting
parties as it may deem appropriate.
4. The contracting parties recognize that
there may in exceptional circumstances be
justifications for new preferential arrange-
ments requiring an exception to the provisions
of this Agreement. Any such exception shall
conform to the criteria and procedures which
may be established under paragraph 5 of
Article XXII.
5. For the purpose of this Article a cus-
toms territory shall be understood to mean
any territory within which separate tariffs or
other regulations of commerce are maintained
with respect to a substantial part of the trade
of such territory. A "customs union" shall
he understood to mean the substitution of
a single customs territory for two or more
customs territories, so that all tariffs and other
restrictive regulations of commerce as be-
tween the territories of members of the union
are substantially eliminated and substantially
the same tariffs and other regulations of com-
merce are applied by each of the members
of the union to the trade of territories not in-
cluded in the union.
Article XXII
Functions and structure of the Interim Trade
Committee
1. An Interim Trade Committee is hereby
established on which each contracting party
shall have one representative.
2. The Committee is authorized to per-
form such functions as are specifically *provid-
ed for in the other provisions of this Agree-
ment and generally to perform any other
functions which may be appropriate or neces-
sary for the full implementation of this Agree-
ment and its accompanying Protocol.
3. Each representative on the Committee
shall have one vote.
4. Subject to the provisions of paragraph
5 of this Article, decisions of the Committee
shall be taken by a majority of the represent-
atives present and voting.
5. The Committee may, by a vote of two-
thirds of its members, adopt criteria and pro-
cedure, including voting procedures, for
waiving, in exceptional circumstances, obliga-
tions incurred under this Agreement.
6. As soon as the International Trade
Organization has been established and is ca-
pable of exercising its functions, the Commit-
tee may be dissolved by the procedure laid
down in paragraph 3 of Article XXIII and
its functions and assets transferred to the Or-
ganization.*
Article XXIII
Revision, amendment and termination
1. This Agreement may be amended or
revised, by the procedure laid down in para-
graph 3 of this Article, in the light of the
provisions of the 'Charter for an International
Trade Organizations drafted by the Interna-
tional Conference on Trade and Employ-
ment, or otherwise.
2. In the event of the dissolution of the
Committee under paragraph 6 of Article
XXII, this Agreement shall be terminated,
provided that those contracting parties which
become Members of the International Trade
Organization may provide that such obliga-
tions under this Agreement as they may spe-
cify shall continue in force between them-
selves as part of the relevant provisions of the
said Charter.
3. A decision of the Committee to amend,
revise or terminate this Agreement under
this Article or to dissolve the Committee un-
der paragraph 6 of Article XXII shall become
effective upon its formal acceptance by two-
thirds of the contracting parties, communicat-
ed to the Secretary-General of the United
Nations within such period as the Commit-
tee may specify.
4. Any contracting party, which does not
communicate its acceptance of such decision
within the time specified, shall cease to be a
member of the Committee and a party to this
Agreement, provided that it may be re-ad-
mitted with the concurrence of all the con-
tracting parties, which have accepted such
decision, upon such conditions as they may
prescribe.
Article XXIV
Interpretation and settlement of disputes
1. Texts of this Agreement in the official
languages of the United Nations shall be re-
garded as equally authoritative.
It may be necessary to include in this Article a pro-
vision regarding contributions to the expenses of the Com-
mittee.
78 2. Any dispute arising out of the interpre.
tation or operation of this Agreement shall be
referred to the Committee which shall deal
with it in such manner as it deems appropri-
ate.
Article XXV
Entry into force and withdrawal
1. The original of this Agreement shall
be deposited with the Secretary-General of
the United Nations, who will furnish certified
copies thereof to all interested governments.
2. Each government accepting this Agree-
ment shall deposit an instrument of accept-
ance wtih the Secretary-General of the United
Nations, who will inform all interested gov-
ernments of the date of deposit of each instru-
ment of acceptance and 'of the date on which
this Agreement enters into force under para-
graph 3.
3. This Agreement shall enter into force
on the thirtieth day following the day in
which instruments of acceptance have been
deposited with the Secretary-General of the
United Nations on behalf of [all] [a stated
number] of the governments represented on
the Preparatory Committee of the Interna-
tional Conference on Trade and Employ-
ment.
4. Each government accepting this Agree-
ment does so in respect of the metropolitan
territory and of such other territories for
which it has international responsibility with
the exception of those territories which are
self-governing in respect of matters provided
for in this Agreement. Each accepting gov-
ernment shall notify the Secretary-General
of the United Nations of its acceptance of this
Agreement on behalf of any such self-govern-
ing territory willing to undertake the obliga-
tions of this Agreement, and upon the date
specified in such notifiication the provisions
of this Agreement shall become applicable
to that territory.
5. Each contracting party shall take such
reasonable measures as may be available to it
to assure observance of the provisions of this
Agreement by subordinate governments and
authorities within its territory.
6. Without prejudice to the provisions of
Article XIX, any contracting party may with-
draw from this agreement, either on its own
behalf or on behalf of one of its territories
which is at the time self-governing in the
respect mentioned in paragraph 4 of this
Article, after the expiration of three years
from the day on which this Agreement enters
into force, by written notification addressed
to the Secretary-General of the United Na-
tions. The Secretary - General will imme-
diately inform all other contracting parties.
The withdrawal shall take effect six months
from the date of the receipt of the notifica-
tion by the Secretary-General.
Article XXVI
Adherence
The Committee shall as necessary evolve
procedures under which governments not
parties to this Agreement may adhere to it
on terms to be agreed between such govern-
incnts and the Committee.
Article XXVII
The Protocol
The annexed Protocol signed
!hereby made an integral part of
ment.
this day is
this Agree-
DiRFT PROTOCOL TO THE GENERAL AGREEMENT
ON TARIFFS AND TRADE
Tue Governments of Australia, Belgiuni,
Brazil, Canada, Chile, China, Cuba, Czecho-
slovakia, France, India, Lebanon, Luxem-
bourg, Netherlands, New Zealand, Norvay,
Union of South Africa, Union of Soviet So-
cialist Republics, United Kingdom and
United States of America
Having this day undertaken, in the General
Agreement on Tariffs and Trade, to bring
into force among themselves measures for the
liberalization of world commerce provided
for in Chapter V of the Charter referred to
in the Preamble to such Agreement
Recognizing the close relationship between
such measures and the fulfillment of the
broad purposes and provisions of the Charter
as a whole
Have agreed as follows:
1. They undertake to be guided
international economic relations by
lowing purposes, in accordance with
I of the Charter
in their
the fol-
Chapter
(a) To promote national and international
action:
(i) designed to realize the objectives set
forth in the Charter of the United Nations
and particularly in Article 55 (a) thereof,
namely, higher standards of living, full em-
ployment, and conditions of economic and
social progress and development;
(ii) for the expansion of the production,
exchange and consumption of goods, for
the achievement and maintenance in all
79 countries of high and steadily rising levels
of effective demand and real income, for
the development of the economic resources
of the world and for the reduction of tariffs
and other trade barriers and the elimina-
tion of all forms of discriminatory treatment
in international commerce;
(iii) to avoid excessive fluctuations in
world trade and contribute to a balanced
and expanding world economy.
(b) To further the enjoyment by all con-
tracting parties, on equal terms, of access to
the markets, products and productive facili-
ties which are needed for their economic
prosperity and development.
(c) To encourage and assist the industrial
and general economic development of the
contracting parties, particularly of those still
in the early stages of industrial development.
(d) To facilitate the solution of problems
in the field of international trade, employ-
ment and economic development through
consultation and collaboration.
(e) To enable contracting parties by in-
creasing the opportunities for their trade and
economic development on a mutually advan-
tageous basis, to avoid recourse to measures
which disrupt world commerce, reduce pro-
ductive employment or retard economic
progress.
2. Pending their acceptance of the Charter
in accordance with their constitutional pro-
cedures and the entry into force of the Char-
ter, they also undertake to observe, and to
make effective to the fullest extent of their
authority, all of the principles and provisions
of the following Chapters of the Charter:
III. Employment, demand and economic
activity
IV. Economic development
V. General commercial policy
VI. Restrictive business practice
VII. Inter-governmental commodity ar-
rangements
80 A N N E X E S
ANNEX 1
Resolution regarding the appointment of a
Drafting Committee
Whereas the Preparatory Committee has de-
cided to convene a Second Session at Geneva on
8 April 1947.
And whereas it is desirable that further draft-
ing be done on the basis of the work carried out
at the First Session before the Commencement
of the Second Session
The Preparatory Committee of the Interna-
tional Conference on Trade and Employment
Hereby appoints a Drafting Committee con-
sisting of representatives of members of the Pre-
paratory Committee to meet in Newv York be-
ginning 20 January 1947, for the purpose of
preparing a Draft Charter based upon the report
and other documents of the First Session of the
Preparatory Committee,
It is resolved that
1. It will be the function of the Drafting
Committee to prepare a Draft Charter or Articles
of Agreement, editing for clarity and consistency
the portions of the text on which the Preparatory
Committee has come to a substantial identity of
views, preparing alternative drafts of those por-
tions on which there remains a division of
general views and preparing suggested drafts
covering such uncompleted portions as are re-
ferred to it by the Preparatory Committee, to-
gether with such explanatory notes and com-
mentaries as the Drafting Committee may con-
sider desirable and useful.
2. The Drafting Committee should prepare
a report for consideration by the Preparatory
Committee at its Second Session.
3. The Drafting Committee should complete
its work with all possible dispatch and in any
case not later than 28 February 1947; in order
that its report may be forwarded to governments
for consideration in advance of the Second
Session of the Preparatory Committee.
It is suggested that members appoint to the
Drafting Committee not more than two or three
technical experts drawn as far.as possible from
the delegation which have participated in the
work of the First Session of the Preparatory
Committee.
ANNEX 2
Agenda
1. Opening statement by the Acting Secretary-
General.
2. Discussion and adoption of the rules of pro-
cedure of the Drafting Committee
3. Election of the Chairman.
4. Election of the Vice-Chairman.
5. Adoption of the provisional agenda.
6. Discussion of the methods of work of the
Drafting Committee.
7. Discussion and examination of the Report
of the First Session of the Preparatory
Committee:
(a) Chapter 1II. Employment.
(b) Chapter IV. Economic Development.
(c) Chapter V. General Commercial Policy
(together with the Memorandum on
Multilateral 'lrade-Agreement Negotia-
tions).
(d) Chapter VI. Restrictive Business Prac-
tices.
(e) Chapter VII. Inter-governmental Com-
modity Arrangements.
(f) Chapter 1. Purposes.
(g) Chapter Il. MtIem)bership.
(h) Chapter VIII. Organization.
8. Preparation and adoption of the Report of
the Drafting Committee to the Second Ses-
sion of the Preparatory Committee, consisting
of a Draft Charter or Articles of Agreement
based upon the report and other documents
of the First Session of the Preparatory Com-
mittee, together with such explanatory notes
and commentaries as the Drafting Committee
may consider desirable and useful.
9. Other items.
ANNEX 3
Revised list of countries and delegates to the
Drafting Committee
AUSTRALIA
Mr. C. E. Morton, Assistant Comptroller-General
(Tariffs), Department of Trade and Customs.
NIr. J. G. Phillips, Assistant Economist, Common-
wealth Bank of Australia, representing Depart-
ment of the Treasury.
Mr. A. H. Tange, First Secretary (Economic),
Australian Delegation to the United Nations.
BELGIUM-LUXEMBOURG
Mr. J. Jussiant, Head of the Belgian Economic
Mission, London.
Baron P. de Gaiffier, First Secretary, Belgian
Embassy, London.
BRAZIL
Senhor Octavio Paranagua, Alternate Executive
Director, International Monetary Fund, Wash-
ington, D. C. (Head)
Senhor José Garrido Torres, Director, Brazilian
Government Trade Bureau, New York.
Senhor Roberto de Oliveira Campos, Second
Secretary (Economic), Brazilian Delegation to
the United Nations.
CANADA
Mr. Arnold C. Smith, Department of External
Affairs.
Mr. Gordon B. Urquhart, Chief Dominion
Customs Appraiser, Department of National
Revenue, Ottawa.
Mr. F. A. MIcGregor, Combines Investigation
Commissioner of Canada.
Mr. Ian M. MacKeigan, Deputy Commissioner,
Combines Investigation Commission, Ottawa,
Canada.
81 CHILE
Senior Pedro Alvarez
Sefior Fausto Soto
Sefior Raul Fernàndez
Senior Fernando Dahmen, Secretary of Delegation.
CHINA
Dr. T. T. Chang, Director, Department of
Foreign Trade, Ministry of Economic Affairs.
Mr. K. S. Ma, Member, TarifÆ Commission,
NfMinistry of Finance.
CUBA,
Dr. Rufo Lôpez Fresquet, Representative of the
Treasury in the National Economic Board,
Technical Adviser to the Ministry of Finance.
Dr. José Antonio Guerra, Representative of the
Treasury in the National Economic Board and
Statistical Adviser to the Finance Ministry.
Dr. Guillermo Alamilla, Legal Counsellor to
the Cuban Sugar Institute.
Secior Erasmo de la Torre, Secretary of Dele-
gation.
CZECHOSLOVAKIA
Mr. Ladislav Radimsky, Head (Czechoslovak
Delegation to the United Nations).
MIr. Bohuslav .1. Bayer, Alternate (Czechoslovak
lI inister of Foreign Tracte, Division of Com-
mnrcial Policy).
'-Mr. Lucian Benda, Czechoslovak Mlinistry of
Foreign Affairs, Economic Department.
MNfr. Benes, MSinistry of Finance.
FRANCE
MIr. Ernest Lécuyer, M\inistry of Foreign Affairs.
Mr. Jean Royer, Ministry of National Economy.
NMr. Alexandre Kojeve, Ministry of National
Economy.
Mlle. Anne Lissac, Ministry of Foreign Affairs.
INDIA
Mr. B. N. Adarkar, M.B.E., Deputy Economic
Adviser to the Government of India.
Dr. Anwar Iqbal Qure. di, Economic Adviser to
the Ryderabad Government.
LEBA NON
Mr. George Hakim, Counselor of Legation of
Lebanon, Washington, D. C. and Alternate
Delegate to the Economic and Social Council.
Nr. Edward Ghorra, Acting Consul General of
Lebanon, New York.
NETHERT-ANDS
Dr. Simon Korteweg, Administrator, Directorate-
General for Foreign Economic Relations.
Professor Doctor E. de Vries, Ministry of Over-
seas Territories.
Mr. Phoa Liong Gie, Ministry of Overseas
Territories.
NEW ZEALAND
Mr. T. O. W. Brebner, Consul Gencral, New
York.
Mr. L. S. Nicol, Official Representative of
Customs Department, London.
Mr. G. D. L. White, Economic Stabilization
Commission, Wellington, New Zealand.
NORWAY
H. E. M. Erik Colban, Ambassador.
Mr. Knut Lykke, Counsellor of the Norwegian
Embassy in Washington.
UNION OF SOUT-I AFRICA
Dr. W. C. Naudé, Economic Adviser to the High
Commissioner in the United Kingdom.
NIr. S. G. Sandilands, Representative of Customs
Department, New York.
UNITED STATES OF ANMERICA
NMr. John Leddy, Representative, Division of
Commercial Policy, Departuient of State.
Dr. H. NI. Catudal, Department of State.
Mr. Robert Terrill, Associate Chief, Division of
International Resources, DePartment of State.
MIr. \Villiam T. Phillips, Special Assistant on
Comniodity Policy, International Resources
Division, Dcpartment of State.
Nfr. Elidvard FI. Kellogg, Division of Inter-
national Organization Affairs, Department of
State.
UNITED KINGDONI
Mfr. R. J. Shackle, C.M.G., Board of Trade
(HIead) .
Miss M. Turnbull (Personal Assistant to Mr.
Shackle) .
NMr. J. E. S. Fawcett, Foreign Office (Legal
Adviser) .
MSiss M. F. Hardie, Board of Trade.
OBSERVERS
Food and Agriculture Organization
Mr. McDougal
Mr. Karl Olsen
NIr. Paul Lamartine Yates
Mfr. Mordecai Ezekiel
International Labour Office
Mr. D. C. Tait
International Bank
Mr. Anzel F. Luxford
International Monetary Fund
Nllr. Ervin P. Hexner
MEXICO
Sefnor Luis lbsrgUen, Secretary of the Mexican
Embassy, Washington, D. C.
COLOMBIA
Sefior Alberto Samper.
82 |
GATT Library | hv154fm4564 | Report of the Drafting Committee of the Preparatory Committee of the United Nations Conference on Trade and Employment : New York 1 January-February 1947 | United Nations Economic and Social Council, February 24, 1947 | United Nations. Economic and Social Council | 24/02/1947 | official documents | E/PC/T/C.6/102 and E/PC/T/C.6/98-103 | https://exhibits.stanford.edu/gatt/catalog/hv154fm4564 | hv154fm4564_90230186.xml | GATT_151 | 1,366 | 8,723 | United Nations
ECONOMIC
Nations Unies
CONSEIL
AND ECONOMIQUE 24 February 1947
SOCLAL COUNCIL ET SOCIAL
CO~S*m
REPORT OF THE DRAFTING COMMITTEE OF THE PREPARATORYO20y
ITTEE OF THE UNITED NATIONS CONFERENCE ONN
RADE AND EMPLOYMENTz
ONTENTS
4-''-'_ .'. '. L: ._% S,¢~.*.
ction * .
II . .
.n trod utlon
raft te n * , I CONTENT
.PART I . . . . . . . . . Introductio
Chapter I . . . . Purposes (E/PC/T/C.6/99)
Chapter II. . . Membership (E/PC/T/C.6/100)
Chapter III. . . Employment, Effective Demand and Economic
Activity (E/PC/T/C.6/95/Rev.1)
Chapter IV . . . Economic Development (E/PC/T/C. 6/101)
Chapter V . . ..General Commercial Policy (E/PC/T/C.6/95/Rev.1)
Chapter VI. . . Restrictive Busines Practices (E/PC/T/C.6/98)
Chapter VII . . . Inter-Governmental Commodity Arangements
(E/PC/T/0.6/103)
Chapter VIII . . Organization (E/PC/T/C.6.104)
Annexure A .. . List of Territories referred to sub-paragraph (2)
Annexure B
PART III . . . . . . . .
m ...
z Uj.
. . . List of Territories referred to i
) (ii) of Article 1J(a (ii) of Ar/9T/Ad&4.1)
. . Bt R rt f0he AAnnexure B . ,. . First Report of the AdministS
,;,(S,,/Pq M,./T/C.6/62)..... .. ......
*
Gegeral AMreemention Tartffs and Trade
/C.6O/T7Rev. 1)e.1) --
1. Resolution Rg gar din,intment of the Intmezt
g Committee (E/PC/T/29) (LIo2on9) (ond e Documnt)
f.De leg ates to - th :f* t n O c iDvtgttee
d report but will ~e ea.ind. te-ZM~ogra]e& report but, 'Vill
b- ' " bl .4d'f r~ t, e - ri nted. ort.
o W; . t.
~ ~bez'e, ~ b~ pn e ~ gueatioq of P .7nt sed 3 tle ezt of
tEG~t8 W ^-,',Of uto
.t .dz;& ;t A r 3 on -ti.;-±t hAS been fod that
this possible, so the text of the Agroeietviii avPear
as Part II of the printed report.
3. '%JXb ~ "z~e.repio besprezyared in accordan
- icsisoi . Cbeaebeiby',te . Comiteat .its 'meting-on-
webruarv19i7.
- FoRr OF
s/,Po/T/.6/1o2
^ . TI-N . - I
INGLISE
1
Chapter VI
. Page 2
REPORT OF THE DRAFTING COMMITTEE OF THE PREPARATORY. - ;;
TEE OF THE UNITED NATIONS CONFERENCE ON. O I D NIONS COM OE ON
1. October and November 1946, the At its First Seeon* hel -i dbered Noeer 1&6, te
Preparatory Comittee adopted a resolution estashing a Drafting Committee.
Tbhe resolution, after stating that it was dasirale that further drafting
be done upon the basis of the work carried out at the First Session of the
Preparatory Committee before the commencement of the Second Session,
directed ts e Drafting Comittee composed of representative of the members
of the reparatory 1947 and totee to meet in New York from 20 Januaryl d. vo
complete itshpreparation of a report for consideration at tue Second Session
no later than 2$ Februry 194., t vais ved that it would be the
ficion Draft of the Drafting Committee to prepare a 3ra'rer** or Articles
of Agreemenentst based upoan the report and other docum of the Firt Session,
editing for clarity and consistency the portions of the text on which the
Preparatory Committewe ame to a substantial identity of viev, preparing
alternative draf.if those, division ofportions on which there- rmained a dit
-Smal vid preparing sugcompleted.fts covering suchoplete&
portions e P were referred to it by th'Preparator Committee, together with
such e3lanatory notDes and Comentariesmight as the. rfting Committee Mi
consider desirablsand.usefil;
2. The Dreafting Committee was convend at the headquarters of the
nited. atons,. Xoe- Sccenus, -New Yok, .9n 20 mauary 7 and. conclded
* Whenever the words First Session or Second d Session are mentionethe first
or secoepad Sessimmon of the-pratstood.ory Coittee is undero&.
** Whenever the word "Charteedr" standiRng alone is us in this eport, it
r efers to the Charter angs dmmrafted wby the Drafti Coittee; hen other
the United Nations are referred to, the ful
is given; . .
.T rotmBy rotaining the - !ofto ".tharter" the Drafting Committee tr=itteo did not
intend. to indicate that it appdisapproved of the use of this e of this
s is This is.a poimt hich Yay-need to be considered at a later stage.
/its work E/PC/T/C. 6/102
Page 3
Its work on . . . February 1947, having held a total of meetings.
Representatives from all the members of the preparatory Committee - attended,
with the exception of the Union of Soviet Socialist Republics which stated
that it-was not in a position to take part in the work of the Drafting
Committee. Colombia and Mexico sent representatives to observe the
proceedings, in which the representativs of the Food and Agriculture
Organization, the, International Labour Orgaization, the International Bank
for Reconstruction and Development and the International Monetary Fund
actively participated.
3. The Drafting Committee availed itself of the Rules of Procedure of
the First Session and worked according to the following plan. An examination
of the text of each Article of the Charter at the First SessionSeai
first made in plenary session together with any amendments introduceded
by delegates or ggested eAby t e-SeetarixiatDuring Ethis amination, 'a
new text of each Article that had bneh amended was establisheandnd reproduced
by the Secretariat fosecond reading a few days s later. After eacArticlecl
had been examined a second time in plenary session, the text then agreed was
referred to a Legal Drafting Sub-mmittee. . Finallyall texts were againin
examined when the draft Report was approv.d . .-
4. The procedure outlined, above waswfollowed Vi most of- the Articles
of the Charter. However, to deal with Articles fo whicheno'detaildd and
generally agreed text established at the ished'et tFin, thessioiahe
Drafting Committee decided. to constitute at an early tageworkits swoi
itub-comottees tp prxpare t zts for- examination by the Committeeittee
at A ster.atage. Th Technical Lcb-Committee tteprepare dparedrafts of
Art cles 15 to 23 InveusiTvArand rticle 37 was seta up, Administrativend ansbtrtive
Sub -Comittee which worked .upon Articles l, 2 7, 64, -8 and. to 77 inclusive.
reparing a draft Charter, the Drafting Committee was chargede was charge
with providing a more detail d. draft of. thre General Ageement on Tariffs
an&Trade based.upon the outline drafted at the First Session. For this
/purpose E/PC/T/C.6/102
Page 4
purpose a Sub-Committes on Tariff Procedures was established. Although the
sub-committees were of restricted membership, all delegates to the Drafting
Committee were accorded the right to participate in the proceedings of the
sub-committees at any time and frequently availed themselves of this facility.
In addition. in a number of cases, the Drafting Committee established ad hoc
sub-committees to deal with specific points.
5. In view of the technical and detailed nature of the work performed by
the drafting Committee, all of its meetings were held in private. The Public,
however, was kept informed. of the work being done by means of press releases
arranged by the Secretariat, which gave a press conference at the close of the
meeting. It was agreed that the Report of the Drafting Committee should be
classifie. as a restricted documant not for publication until such time as
the Preparatory Committee itself might decide otherwise.
6. The officials of the Drafting Committee were:
Chairman: Mr. Erik Colban (Norway) -
Tce-Chairman: Mr. B. N. Adarkar (nldia) -
Administrative Sub-Committee:
ChairanDr. G. Alamilla (C)ba}
Ieg l 'Drafting Sub-Commi:teo
Chairman: Mr. K. Iojeve (France)
Tariff Procedures Sub-Committee:
Chairman:Mr. N. . AkarImr (India)
Teical al Sub-Commie:e:e
Chairman: r. R. J. Shackle le (United Kingdom)
7. Purely edigin& changes are normally not mentioned in the Commentary
contained in Part II of this Rep. tquareuar brackets have neer used to
enclose wording the adoption of wh ch:is left for future consideration.
Reservations made at the First Session ndrmaintained at the DraftingmConmittee
are mentionaccordingly in the Commentary.
/8. Although E/PC/T/C.6/102
Pace 5
8. Although the terms of reference of the Drafting Committee did. not
require it to discuss arrangements for and procedures at the Second
Session, it was felt that the Committee provided a convenient ground
for further exchages of views on this question between governments.
Accordingly, a discussion of arrangements and procedures was carried out
and informal agreements reached which it is hoped. will materially assist
the members of the Preparatory Committee in raking their plans for the
Second Session. |
GATT Library | zd447xk3239 | Report of the Drafting Committee of the Preparatory Committee of United Nations Conference on Trade and Employment | United Nations Economic and Social Council, February 24, 1947 | United Nations. Economic and Social Council | 24/02/1947 | official documents | E/PC/T/C.6/104 and E/PC/T/C.6/103-104/REV.1 | https://exhibits.stanford.edu/gatt/catalog/zd447xk3239 | zd447xk3239_90230190.xml | GATT_151 | 7,164 | 47,467 | United Nations
ECONOMIC
AND
SOCIAL COUNCIL
Nations Unies
CONSEIL
ECONOMIQUE
ET SOCIAL
E/PC/T/C.6/104
24 February 1947
ORIGIAL: ENlGISH
REPORT OF
OF UNITED
DRAFTING COMMITTEE OF THE PREPARATORY COMMITTEE
NATIONS CONFERENCE ON TRAADE AND EMPLOYMENT
- -
CHAP .I . VIE I
ATORGAIZION'
.;txt of ChptIrIVas AegSrdfla~ yad b Drafting mm,,n Coee
aappen socuzd6imentCE/PC/T/O.6/Wa8d ena as revised, by thg Le~aa Dregtinw
CummiOoCztiee ~n this Report.
.-
- : .
. .:" " , I . . E/PC/T/C. 6/104
Page 2-
CHARTER
ORGANIZATION
SECTION A - FUNCTIOINS AND STRUCTURE OF THE ORGANIZATION
Article 61
Functions
In addition to the functions provided for in the other Chapters of this
Charter, the Organization shall have the .following-functions:
(a) to collect, analyze 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 facilitate consultation among Members on all questions relating
to the provisions of this Charter and to provide for the settlement of
disputes growing out of the provisions of the Charter;
(c) to make recommendations for, and promote international agreement
on measures designed to improve the basis of trade and- to assure just
and. equitable treatment for the enterprises, skills, capital, arts and
technology brought from one country to another, including agreement on
the treatment of foreign nationals and. enterprises, on the treatment
of commercial travellers, of commercial. arbitration and. on the avoidance
of double taxation;
(d) generally to consult with and make recommendations and, as,
necessary,- furnish advice and assistance to Members regarding any
matter relating to the purposes or the operation of the Charter, and to
perform. any other function appropriate to the purposes and provisions of
this Charter;
(e) to co-operate with the United Nations and with other.
inter-governmental organizations for the purpose of furthering the
attainment, with an economy of effort, of the economic and social E/PC/T/C . 6/104
Page 3:
CHAPTER VIII
ORGANIZATION
SECTION A - FUNCTIONS AND STRUCTURE OF THE ORGANIZATION
Article 61
Functions
General Comments.
The First Session of the Preparatory Committee had.
instructed: the Drafting Committee to examine Article 61 with a
view to insuring that the provisions of this Article are
consistent with other provisions of the Charter, especially
with those relating to Employment Policy and Industrial
Development. The Drafting Committee referred this Article to
an Ad Hoc Sub-Committee, consisting of the Delegates for
Australia, Chile, India, United Kingdom and United States,
with a mandate to elaborate a new text, taking account of
the instructions of the First Session of the Preparatory
Committee. The Ad Hoc Sub-Committee, after thorough discussion
of all issues entering into the formulation of Article 61,
decided against the course of spelling out specifically all
functions of the Organization mentioned in other articles of
the Charter. The text supplied by the Ad Hoc Sub-Committee
met with the unanimous approval of the Drafting Committee. E/PC/T/O .6/I04
Page 4
objectives of the United Nations and the restoration and maintenance of
international peace and seaurity.
A ;. ....,,. rticle 62
Structure
The Orgarization shall have as its pra incipal organ .Conference, an
Exeommcutive Board, Cissions as established under Article 72, and a
Secretaiat . . .. .
~~~~~~~~~~~~~~~~~~~~~~~~~~i
........-. . ; .,*, 4!+....... '<...- E/PC/T/C . 6/104
Page 5
COMMENTARY
! '
.,t , .
. .- - : .- . . . I , ?.
:., I . . . :1
:.. . ?. .-' ... I . t. E/PC/T/C.6/104
Page 6
SECTION B -THE CONFERENCE
Article 63
Membership
1. The conference shall consist of the representatives of the Members of
the Organization.
2. Each Member shall have one representative and may appoint alternates
and advisers to its representative to the Conference.
3. No representative to the Conference may represent more than one Member.
Article 64
Voting
1. Each Member shall have one vote in the Conference.
2. Except as may be otherwise provided for in this Charter, decisions of
the Conference shall be taken by a majority of the Members present and voting. E/PC/T/C. 6/104
Pege T
COMMENTARY
Article 64
voting
General Comments.
1. The First Session of the Preparatory Committee, referring to
its discussions on the subjects of Voting.in the Conference and
Executive Board membership, had instructed the Drafting Committee,
"insofar as it is able to do so within its terms of reference," to
formulate alternative schemes, taking account of the suggestions
for a weighted system of voting and for provisions for permanent
seats on the Executive Board.
2. The Drafting Committee referred the issue of Executive
Board membership and Voting in the Conference to its
Administrative Sub-Committee, which discussed the issue of
weighted voting without arriving at any final conclusions which
would have been acceptable to a majority of this Sub-Committee.
In this respect reference is made to the Report of the
Administrative sub-Committee which appears as Annexure B to the
Report of the Drafting Committee. E/PC/T/C. 6/104
page 8
'. t . , , .
!. : , -. " i
. . . m
I . . . z .
. . . I.!, r! . '.. E/PC/T/C . 6/104.
Page 9
COMMENTARY
3. The Delegation of the United Kingdom submitted a formula
on weighted voting and a note on two-thirds majorities, which
are attached to the Report of the Administrative Sub-Committee
as Appendices I II, XI and XII, The attention of the Second
Session is directed to these observations, of the United Kingdom
and especially to the note in Appendix XII of the Report of the
Administrative Sub-Committee.,
4. The Delegate of France, pointing out that any modification
of paragraph 2 would involve a change in substance, directed
the attention of the Drafting Committee to a discrepancy in
voting procedure under the Charter; whereas the Charter calls
for a two-third vote on procedural questions such as in
paragraph 2 of Article 66, the most important decisions on
substance are subject to a simple majority vote. He suggested
to direct the attention of the Second Session of the
Preparatory Committee to this paradox and recorded the
reservation of France that the text should be changed in such
a manner as to call for a two-third majority vote on all major
substantive issues. E/PC/T/C.6/104
Page 10
Article 65
Sessions, Procedure and Officers
1. The Conference shall meet in regular annual sessions and in such special
sessions as may be convoked by the Director-General at the request of the
Executive Board or of a majority of the Members.
2. The Conference shall adopt its own rules of procedure. It shall annually
esident and other offic. er..-
elect its President and other officers.
.
I E/PC/'T/C.6/104
page 11
.;, . .a
COMMENTARY E/PC/T/C . 6/104
Page 12'' . i
Article 66
Powers and Duties E/PC/T/C .6/104
Page 13
Article 66
Powers and Duties
General Comments
The First Session of the Preparatory Committee had
instructed the Drafting Committee to review the text of
paragraph 8 of Article 66 in the light of observations of
the French Deleagation. to the effect that the Charter contained
elsewhere important decision to be taken by the Conference,
with respect to which no precise voting requirement had been
laid down. Under the present terms of the Charter such
decisions would be taken by a simple majority vote end
consideration should be given as to whether a two-third
majority should not be required for many of these decisions.
The Draft Committee was in no position to take this
instruction into consideration in discussing this Article,
because the Technical Sub-Committee of the Drafting Committee
had decided to delete this paragraph from the text of Article 66
....in view of.the fact that the corresponding paragraph 7 of
Article 22 had also been deleted. The Drafting Committee
consequently considered these instructions in its debate on
voting procedure and reference is made to the commentary to
Article 64. E/PC/T/C.6/104
Page 14
CHAPTER
Article 66
Powers and Duties~
1 . The Conference shall have final authority to detemrine:thie policies
of the Organization. It mye makerfcbmimendations to the Members and to
, ' t . *, f , t . - . '. , , .. -*; .,
other international organizations regarding any matter pertaining to the
purposes of the Charter.
2. The Confexencj may delegate tc the Execut4ve Board authority to
eherdise any . ! the ~ aapg or perform.=33of tbe.-dutes. of.fth'Orgenization,
eexcept such oceciere powera.and duties as :..expressly. eonfj¢xqdor
impo.ed upoa the Conference under.this. Charter .:..
3. The Conference mny, by the affirmative votes of two-thirds of the
Members of the Organization, determine criteria and set up procedures,
including votlsganprocedures, for waiving in exeptional circum tcces,
obligations of Members undertaken pursunt, to this Charter.
f. The Confeience shall establish p26cedure'sfor making the determinations
provided.Por In Artidme 30 end in Article 52, whereby any such deterninations
shall bo made tbiou#h the Org&nization by consultation among the Members
substilly Intereatei nth prodact concernedd. E/PC/T/C. 6/104
Page 15
Powers and Duties
66:1 The Drafting Committee clarified that the words
"international organizations" in this context were intended to
cover both private and public international organizations.
66:2 The Delegate of the.United States suggested that a clause
should be added to this paragraph, indicating that no greater
majority than a two-third vote should be required for any
decision. The Delegates of Canada and South Africa expressed
themselves against such a clause in order to preserve the
necessary flexibility which in certain cases might call for an
even greater majority than a two-third vote.
66:3 The Delegate of Australia, seconded by France, suggested
to include in this paragraph a catalogue of those powers which
may not be Delegated by the Conference to the Executive Board.
66:4 The Delegate of the United States suggested to amend
paragraph 4 by adding the following sentence: "No one Member
shall be required-to pay more than one-third of the total
expenses of the Organization for any given budgetary period."
The Delegates of the United Kingdom, Canada and of South Africa
seconded this amendment, with the Delegate of South Africa
referring to the report of the First Session of the Preparatory
Committee which suggested that apportiomment of expenses should
follow the general principles adopted by the United Nations.
The Delegates of Australia, China and Cuba went on record
with a reservation against any clause which would establish a
ceiling for the contributions of any Member. Page 16
5. The Conferences shall establish procedures for making the determinations,
decisions and recommendations provided for in paragraph 3 (c) and. (d) of:
Atzclie26, paragraah 1 (e). 1i)aend a.adgadph, or Article. 2, paragraph 2 of
xrticle.34.and Ardticle. 35# : .: ..-;:. . -.
6. The Conference may prepare or sponsor agreements with respect to any
matter within thQcompetence of the Oreanization and by the affirmative
vote .pf., twQ-thirdsmmof the Members present and voting recozend such
agreements,for acceptance.Ech Member shall notify the Director-General
of. its..azceptance and, in the case of non-acceptance, shall furnish a
statement of the reasons therefcr.
The Conference shall approve the budget of the Organization, and
shall apportion the expenditure of the Organization among the Members.
8. The Con e shall determine the site of the organization and shall
establish such branch offices as it may consider desirable.
tZ... E/PC/T/C.6/104
Page 17
COMMENTARY E/PC/T/C .6/104
Page 13
SECTION C -TARIFF COMMITTEE -
Article 7
Trifm Conmittee
Th ;:sre chall be a. Tarifmf Comitths wVica shell act on behalf hf tbe
Oganization in the making of mmeco~endations and dmterninations pursuant
to paragraph 3 of Article 24.
2. Thm Coimittea lhol. consist originally of these Members of the
Organization which shall have made effective the General Agrnemezt on
Tariffs anddTrale dated ...... 194n.. Ay other eembor of the Organization
shall be a Member of thme Comittee when, in the judgment of thmmiCo=Ittee,
that Member shall have completed negotiations pursuant to paragraph 1 of
Article 24 comparable in scope or effect to those completed by the original
Members of the iommlttee.
3. Each Member of the Committee shall have one vote.
1.D decision of the iommIttee pursuaont t paragraphs 1 and 2 of this
crtialall hal be taken by a two-thirds majority of its Members and other
decisions byi a smple majority.
5. The Commitsea eh½11 adopt its own rules of procedure, including
provision foe tha election of its officers. E/PC/T/C.6/104
page 19
COMMENTARY E/PC/T/C.6/104
Page 20
SECTION D - EXECUTIVE BoARD
Article 68
Membership
[First Alternative
1. The Executive Board shall consist of fifteen Members of the Oraganization
elected by the Conference.
2. Subject to the provisions of paragraph (3) one-third of the members
of the Executive Board shall be elected each year for a term of three years.
A retiring member shall be eligible for immediate re-election.
3. At the first election fifteen members of the Executive Board. shall be
chosen. The term of office of five members shall expire at the end. of one
year and off five other members at the end. of two years, in accordance with
arrangements made by the Conference. E/PC/T/C.6/104
Page 21
COMMENTARY
SECTIONT D -THE EXUCUTIVE BOARD
Article 68
Mombership
General Comments
1. The First Session of the Preparetory Committee had. instructed
the Drafting Committee to consider the question of Excecutive Board.
membership in conjtunction with the question of voting in the
Conference and. referonce is made in this respect to the
documentary to Article 64.
2. The Drafting Committee referred this matter to its
Administrative Sub-Committee, which discussed. all aspects of
Executive Board. Membership in ten sessions and. reported. on its
conclusions in the First Report of the Administrative
Sub-Committee, which forms an. annexure to the Report of the
Drafting Committee. Reference is made to this annexure and. all
appendices attached. to it.
3. The Drafting Committee felt that under its terms of
-reference it was not authorized to pass on the merits of the
conclusions of the Admnistrative Sub-Committee, since adoption
or rejection of these concluisions would have involved a
substantive matter of highest importance. The Drafting Committee
therefore decided. to attach the Report of its Administrative
Sub-Committee to its. own Report, in. order to make it available.
as a working document for the Second. Session of the Preparatory
Committee, which alone is. authorized. to deal with such substantive
issues. The Drafting Committee also decided to show., in the Charter
text the first alternative of the London Report in square brackets
and. to attach as further appendices to the Administrative Sub-
Committee's Report the - second, third and fourth alternatives of the 4. Each member of the Executive Board shall have one representative and may
appoint alternates and advisers to its representatives
Article 69
Voting
1. Each member of the Executive Board shell have one vote.
2. Decisions of the Executive Board. shall be made by a majority of members
present and voting.
Article 70
Sessions, Procedure and Officers
1. The. Executive Board shall adopt its own rules of procedure, including
rules concerning the convening of its sessions.
2. The Executive. Board shall manually elect, its Chairman and other officers,
who, shall be eligible for re-election.
3. The Chiarman of the Executive Board, as such, shall be entitled to
participate, without the right to vote, in the deliberations of the Conference.
4. Any Member of the Organization,.which is not a member of the Executive
Board, shall be invited to send a representative to any discussion by the
Board of a matter of particular and substantial concern to that Member. Such
representative shall , for the purpose, of such discussion have all the rights
of members of the Board. except the right. to vote.
Article. 71.
..w -Povers and. Duties
1. The Executivs Boarb. shall be recponsi-le for the execution of the policies
of the l Organization aid shIdeexgercise the powdrs Ieated. to it an& perform
the duties asaied& to it by the Conference. .It shall supervise the E/PC/T/C.6/104
Page 23
COMMENTARY
of the london Draft Charpter and the item Kingdom vote on
two-third majorities.
Article 70
Sensessions, Procedure and Oficers
70:2 The drafting Committee interprets this provision to mean that
the Chairman of the Executive Board is to be elected from among
the Delegates to the Executive Board and that the Member country
whose Delegate has been elected. Chairman will be entitled to send
another Dlelegate to the Executive Board to exercise its voting
over.
Article 71
Powers and Duties
71:1 The Drafting Committee is of the opinion that the last
sentence of this paragraph will be redundant if the second
Session of the Preparatory Committee should decided to include a
Commission for industrial development in the text of the Charter. Page. 24
activities of the Commssions povided. for in this charter and shall take
such action upon their recommendations as it may, deem appropriate. It shall
provide adequate machinery to review the work of the Organization relating
to industrialization and general economic development.
2. The Executive Board may make recommendations to the Conference, to the
Members of the Organization, or to other international organizations, on
any subject falling within the scope of this Charter, and shall prepare
the proliminary agenda of the Conference.
3. The Executive Board may recommemded to the Conference the admission of
new Members of the Organization.
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Page 25
COMMENTARY E/PC/T/C.6/104
Page. 26
SECTION E - COMMISSIONS
Article 72
Establishment
The Conference shall establish a Commission on Commercial Policy, a
Commission an Business Practices and. a Commodity Commission end may establish
such other Commissions as may be required. The commissions shall be
responsible to the Executive Board.
Article 73
Composition and Procedure
1. Commissos shall be composed of persons chosen by the Executive Board
and qualified by training or experience to carry out the functions of the
Commissions in accordance with the purposes of this Charter.
2. The number of members of each Commission and the conditions of service
of the members of each Commission, shall be determined. in accordance with
regulations prescribed by the Conference.
3. Each Commission shall elect its Chairman and adopt its own rules of
procedure, subject to approval by the Executive Board.
4. The Chairmen of each Commission shall be entitled to participate,
without the right to vote, in the deliberations of the Executive Board and. of
the Conference.
5. Pursuant to agreements under paragraph 2 of Article 31, the Organization
may make arrangements for representatives of other inter-governamental E/PC/T/C. 6 /104
Page 27
COMMENTARY- 0CC~tfTAp 'I.
*O- E;EIE - CWMSSIONS
Article 72
Establiament
The Fieot Session of tha Preparatory Committee had instructed
mmthe raft-kng Cmittee tono t;e sucmh actimas it deeo appropriate
vith reference to a proposal calling for the establishment of
an additional commission to deal with industrial development.
Since the establishment ofoman additional ccmission would
contain a usstantive change in the London text, the Drafting
Co-feelC1 not .ewa that it ims authorized to deal with this
quests n - refera the issmie of a comission for industrial
DeLopmaet to the Zeconll Sessimnof the Prepammatory Comittee,
directing the attention of the Second Session also to the
preceding notgrae to paraph 1 of Article 71.
kztwc3e 73
onmpod Procedurt 1ze&:roe
73:5 l The Deiegaoutn of Snt+h Africa, with the support of the
Delegate for Australia, felt that this provision was redrndent in E/PC,/T/C.6/1'04
Page 2& .
CHARTER
organizations harms a special interest in the activities of any of the
- Commissions to participate in the work of such Commissions
eb to patciae i. .th wokofLci amsf E/PC/T/C.6/104
Page 29
COMMENTARY
view of provisions of Article 81 and moved for the deletion of this
paragraph.
The Food and. Agriculture Organization Observer, stressing
the importance of close working relations between the
international Trade Organization and the Food and Agriculture
Organization suggested inclusion of the following note in the
report, and the Committee decided to record this suggestion in
its final report as an observation of the Food and Agriculture
Organization Observer:
"While this phraseology appears the most appropriate
for covering all the specialized agencies, it is clear
that there is one, namely the Food. and. Agriculture
Organization, which has specific responsibilities for
products of farms, forests, and fisheries, some of which
products may be,. or may become subject to commodity
arrangements. It is evident that the close co-operation
and reciprocal representation which this special situation
requires needs to be adequately provided. for in the:
agreement ,negotiate. between the International Trade
Organization and. the Food. and. Agriculture Organization.
"It may be noted. that the Report of the Food. and
Agriculture Organization Preparatory Commission provides
for International Trade Organization representation in the
Food. and. Agriculture Organization Annual. Programme Review
-and on the World Food. Council. ,
R .:ALMMEM iT TRTICIEC74 . TO 77NCLUSIiMIVE
1heTe FirSe sosqion of the Preparatory.mmiuoittee had
instructed the Draftinommg Cittee to prepare appropriate drafts
covtingern thune focsina of tCommuiP isss on commercircial policy,
bussseca practices ano moamodities. The Draft Commnvnittee E/PC/T/C.6/104
Page 30
Yixi-c -..
General Functions
The commissions shall. perform such functions as the Conference or the
Executive Board may assign to them, including such functions as the
Executive Board may deem appropriate in connection with the settlement of
disputes. The functions of the Commission on Commercial Policy, the
Commission on Business Practices and the Commodity Commission shall include
those specified. In Articles 75, 76 and. 77, respectively. The commissions
shall consult with each other as necessary for the exercise of their
functicns
Article 75
Functions of the Commission on Commercial Policy
The Commission of Commcercial Policy shall have the following functions:
~~~~~~~~~~~~~~~~~~~~~. ~ ~ .
(a)seto investigate aommeto advia and. 'ake reccondations to the
B.rd o. C
Exetie Bard ona. mAtters' fil L nwithin the scope of Chpter V and
re si~the commercial policy aspects of proposals involving the
exercise by the Organization' of'ta unctions under this Chartor; and E/PC/T/C.6/104
Page 31
COMMENTARY
assigned the task of drawing up such drafts to its Administrative
Sub-Committee. The Administrative Sub-Committee, after
discussing the advantages and disadvantais of spelling out in
Articles 75, 76 and 77 all functions which are assigned to the
commissions.in the respective parts of the Charter, decided
against such a. course. and drafted the text of these Articles in
a more general manner. The draft of the Admiinistrative Sub-
.Committee in the respect was unanimously approved by the
Drafting Committee..
2. The Drafting Committee desires to go on record with its
opinion that the commissions are to be considered. as purely
advisory bodies, composed of experts, without any executive
powers or functions.-
Article-74
- ^ -. -un- -General Fimctions
ommie Drafting Cr±ttee felm that the com!ssions should be
authorized to consult with each other on matters falling within
the purview ofommio or more c=Iissions and, consequently, added
a sentence to this effect in the text of Article 74. E/PC/T/C.6/104
Page 32
(b) to develop end. to recommend to the Executive Board programmes
designed to further the objectives of this Chapter in the general field
of commercial policy.
Article 76
Fun ~ actions of the CoBission on Rusiness Practices
The Co mission on Business Practices shall have the unclowing ftmCtions:
(a)m to perforathe functions and duties of the Organization set forth
in Articles 40 end 41 of Chapter VI, except the publication of reports
iand the -amng of reconmendations to Members; end.
(b). to advise aomme make recCendations to the Executive Board on all
matters filling within the scope of Chapter VI.
ricle'7
Fins of thoem Ccrm-oo Ccmmission
Thom Ccmoditymm Coission shall have the following functions:
(a) to study and. investigatem comodity problems end proposals for
dealing with them and to prepare the reviews called for in Article 55;
(b) to advise and make oreenmmadations to the Executive Board on all
matters falling within the scope of Chapter VII and arising from the
provisions of paragraph 4 Af Prticle 30. E/PT/C,6/10
Page 33
. . .
COMMENTARY
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Page 34
CHAPTER
SECTION F - THE SECRETARIAT
Article 78
Composition
1. The Secretariat shall consist of a Director-General and, such staff as
may be required.,
2. The Director-General shall have authority to appoint Deputy Directors-
General in accordance with regulations approved by the Conference.
Article 79
The Director-General
1. The Director-General shall be appointed by the Conference upon the
recommendation of the Executive Board. The powers, duties, terms end
conditions of office of the Director-General shall be in accordance with
regulations approved by the Conference. Be shall be the chief administrative
officer of the Organization, and shall be subject to the General supervision
of the Executive Board.
2. The Director-General or his representative shall be entitled to
participate, without the right to vote, in all meetings of the Conference,
of the Executive Board, of the Commissions and of the conmmittees of the
Organization. The Director-General may initiate proposals for the
consideration of any organ of the Organization. He shall present throught
the Executive Board an annual report to the Conference on the work of the
Organization and shall In consultation with the Excutive Board prepare
the budget of the organization for submission to the Conference. E/PC/T/C .6/104
Page 35.
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Page 36
Article 80
Employment of Staff
1. The Director-General shall appoint the staff of the Secretariat and fix
its duties and terms and conditions of service in accordance with regulations
approved by the Conference. The paramount consideration in the employment
of the staff and in the determination of its conditions of service shall be
the necessity of securing the highest standards of efficiency, competence
and integrity, regard being paid to the importance of recruitment on as
wide a geographical basis as possible.
2. The conditions of service, such as the provisions governing qualifications,
salary, tenure and retirement of members of the Secretariat shall be fixed, so
far as practicable, in conformity with those for members of the Secretariat
of the United Nations and of other specialized agencies. E/PC/T/C.6/104
Page 37
COMMETARY
Article 80
Employment of Staff
80:2 The First.Session of the Preparatory Committee had
instructed the Drafting Committee to consider whether this
paragraph together with Paragraph 2. of Article 81.might not.
be more suitably, placed in a separate chapter of the. Charter,
since both these provisions are of a purely -temporary character.
The Drafting Committee decided against the advisability of
writing a. new chapter for. temporary- provisions into the Charter,
but, asked, to delete the last three lines of this paragraph, in
the London .text. E/PC/T/C.6/104
Pege 3
SECTION G - MISCELIANEOUS PROVISIONS
Article 80
Relations with Other Organizations
1. The Orgrnization shall be brought into relationship with the
United Nations as soon as 'practicable as one of the specialized agencies
referred to in Article 57 of the Charter of the United Nations. This
relationship shall be effected through agreement with the United Nations
under Article 63 of the Charter of the United Nations; which agreement shall
be concluded by the Director-General and approved by the Conference. The
agreement shall provide for effective co-operation between the two
Organizations in the pursuit of their common purposes, and at the same time
shall recognize the competence of tho Organization within its jurisdiction
as defined in this Charter. The Conference may adjust the provisions of the
Charter to conform to any such agreement provided such adjustments do not
require new obligations by Members.
2. The Organization shall co-operate with the other Inter-governmental
organizations having related interests and activities. Arrangements for
co-oreration with such organizations may be made by the Executive Board.
affective working relationships with such organizations, which may include
the establishment of joint committees or provision for reciprocal representation
at meetings or such other measures as may be necessary to assure effective
co-operation, may be established by the Director-General.
3. The Organization may make suitable arrangements for consultation and.
co-operation with non-governmental organizations concerned with matters within
its competence and may invite them to undertake specific tasks.
4. Whenever the Conference of the Organization and the competent authorities
of any other international organization, whose purposes and functions lie
.within the competence of the Organization, deem it desirable to effect a
transfer of its resources and functions to the Organization, to incorporate E/PCT/C. 6/104
Page 39
R. wiBelations i-Ith Other ganization. .:
8. ,The AuEtr1ian Delegation moved to delete. the words" !by
theeDir andtpr-Genpralad in the second sentence. of this
paragraph because.it was unassumestic to cmmut that, negotiations
of this kinldwould actuaJy ba conducted. n b. checluded-y t
Directo;-Deleral. The I alcete fxprFren .eernpoositethe opi"sf 'e
view pointing out the need for clear designation which.official
or orgen ofithe InternatUonal Trade Organization would be E/PC/T/C.6/104
Page 40
it into the Organization or to bring. lt under the supervision or authority
of the organization, the Director-General, subject to the approval of the
Conference, may enter into mitually acceptable arrangements for this purpose.
The Organization may acquire such resources and assume such functions of,
or incorporate or exercise such control over, such other organizations as may
be provided by any convention or agreement appropriate to the purpose. The
Members shall, subject to their respective constitutional requirements, take
such-steps as the Conference may determine to integrate such other international
organizations into. the structure of the Organization.
Article 82
International Responsibilities of Personnel of the Organization
1. The responsibilities of the Director-General, of the Deputy Directors-
General and of the staff shall be exclusively international in character. In
the discharge of their duties they shall not seek or receive instructions from
any government, or from any authority external to the Organization. They shall
refrain from any action which might prejudice their position as international
officials.
2. The provisions of paragraph 1 of this Article shall also apply to the
Members of the Commissions provided for in Article 72.
3. The Members shall respect the international character of the
'responsibilities of these persons and shall not seek to influence them in the
discharge of their duties.
Article 83
International Legal Status of the Organization.
The Organization shall have legal personality and shall enjoy such legal
capacity as may be necessary for the exercise of its functions and for the
fulfilment of its purposes. E/PC/T/C.6/104
COMMENTARY
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Page 42
CHAPTER.
Article 84
Status of the Organization in the Territory of Members
1. The Organization shall enjoy in the territory of each of its Members
such legal capacity privileges and immunities as may be necessary for the
exercise of its functions and, for the fulfilment of its.purposes.
2. Representatives of the Members of the Organization and. its officials
shall similarly enjoy such privileges and, immunities as may be necessary for
the indpendent exercise of their functions in connection with the
Organization.
3. The Conference may make recommendations with a. view to determining the
details of the application of paragraphs 1 and. 2 of this Article and may
propose conventions to the Members for this purpose.
Article 85
Amendments to the Charter
1. Any amendment to this Charter which does not require new obligations
by Members shall become effective upon receiving the approval of the
Conference by the affirmative votes of two-thirds of the Members.
2. Eny amendment to this Charter, which requires new obligations by Members,
shall become effective for each member accepting the amendment, upon acceptance
on the part of two-thirds of the Members, and thereafter for each remaining
Member on acceptance by it. The Conference may determine that any Member
which has not accepted an amendment under this paragraph within a period
specified by the Conference, shall cease to be a Member of the Organization.
In the absence of such determination a Member not accepting an amendment
shall, notwithstanding the provisions of paragraph 1 of Article 89, be free
to withdraw from the Organization upon the expirationm of six months from the E/PC/T/C.6/104
Page 43
Article 85
Amendments to the Charter
65:1 The Delegate for France notified the Drafting Committee
that he had been advised by his Government that this paragraph
was incompatible with the provisions of the new French
Constitution. He went on record with a. reservation in this
respect and observed that this paragraph would have to be
redrafted by the Second Session of the Preparatory Committee
in such a manner as, to reconcile it with the terms of the
present French Constitution. E/PC/T/C.6/104
Page 44
day on which written notice of such withdrawal is received by the
Secretary-General of the United Nations.
3. The Conference shall, by the affirmative votes of two-thirds of the
Members, adopt rules of procedure for carrying out the provisions of this
Article.
Article 86
Interpretation and Settlement of Disputes Page 1,.
Article 86
Interpretation and Settlement of Disputes
General Comment
The Delegate for the United Kingdom, with reference to
document E/PC/T/C.6/w.63 entitled: "Suggested Redraft of
Articles 35 (2) and 86 by the Delegation of the UnitedKingdom
Article 36 -Nullification, Impairment.and Disputes", explained
the position of the United Kingdom with respect. to this .redraft
as follows: the United Kingdom holds. that it is imperative for
the Organization.to be master in its own house-and to be able
to make final determinations of a nature provided for in the
Charter. These determinations call for the exercise of
discretion and for rulings on economic. subjects on the basis of
economic reasoning. In this respect there exists a wide
difference between normal commercial treaties, whose character is
basically static, while the character of the Charter is
intrinsically dynamic. The determinations and rulings of the
Organization do not form a legitimate object for the. review of
any court of justice or of the economic chamber of such a court
Judgments of a court call necessarily. for the exercise of legal
judgment,. but .not for independent economic..evaluation. The
term "justiciable issues" .in Article 86 of .the London.Report
is quite unclear.. According to the views of the United Kingdom E/PC/T/C.6/104
1. The texts of this Charter in the official languages of the United Nations
shall be equally authoritative.
2. Any question or difference concerning the interpretation of this Charter
or arising out of its operation shall be referred to the Executive Board for
a ruling thereon.. The Executive Board may decide either to give a ruling
on the matter itself, or .to refer it, with the consent of the parties, to
arbitration upon such terms as may be agreed by the parties. Any ruling of
the Executive Board shall, upon the request of any Member directly affected-
or, if the ruling is of general application, upon the request of any Member,
be referred to the Conference.
3. Any justiciable issue arising out of a ruling of the Conference with
respect to the interpretation of sub-paragraphs (c), (d), (e), or (k) of
Article 37 or of paragraph 2 of Article 59 may be submitted by any party to
the dispute to the International Court of Justice, and any justiciable issue
arising out of any other ruling of the Conference may, in accordance with
such procedures as the Conference shall establish, be submitted, by any party
to the dispute to the International Court of Justice. The Members accept the
jurisdiction of the Court in respect of any dispute submitted to the Court
under this Article. E/PC/T/C.6/104
Page 47
the subjects of nullification and impairment and of interpretations
and settlement of disputes belong together, and for this reason
the United Kingdom draft of Article 86 has fused the provisions
of Article 35, paragraph 2, and Article 86..
The Committee decided that this was a substantive matter
of the highest importance which would have to be referred to
the Second Session of the Preparatory Committee. For this
reason it was agreed to put paragraphs 2-4 inclusive of the
London draft into square bracket.
36:3 The First Session of the Preparatory Committee had instructed
the Drafting Committee to give appropriate consideration to a
memorandam of the "Delegtions of Belgium, France and the
Netherlands on the subject of arbitiation of disputes and the
right of appeal from decisions of the Organization to the
international Court of Justice. The Drafting Committee, taking
cognizance of this Instruction, held that it was not authorized
under its terms of reference to come to any substantive decisions
in this matter and refers the issue to the Second Session of the
Preparatory Committee. E/PC/T/C.6/104
Page 48
4. The Organization mey, in accordance with 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
its activities.]
Article 87
Contributions
Each Member shall contribute promptly to the Organization its share of
the Organization's expenditures as apportioned by the Conference. A Member
of the Organization, which is in arrears in the payment of its financial
contributions to the Organization shall have no vote in the organs of the
Organization if the amount of its areas equals or exceeds the amount of the
contributions due from. it for the Preceding two full years. The Conference
may, nevertheless, permit such a Member to vote, if it is satisfied that the
failure to pay is due to conditions beyond the control of the Member.
Article 88
Entry into Force
1. The original of this Charter, as set forth in the Final Act of the
United Nations Conference on Trade and Employment, shall be deposited with
the Secretary-General of the United Nations, who will furnish certified copies
thereof to all interested governments. Page 49
86:4 The First Session of the Preptaratory Committee had
instructed the Drafting Committee to consider the desirability
of redrafting paragraphs 4 in view of the possibility that the
General Assembly of the United Nations might agree to grant
to other specialized agencies a general blank- authorization
to seek advisory opinions from the International Court. Since
paragraph 3 of Article 86 in its present- form.provides for the
possibility of review of decisions of the Internatioal Trade
Organization by the International Court, the Drafting Com-mittee
feels that a blanket authorization to seek advisory opinions
might conflict with possible later litigation before the
International Court end for this reason refers this issue for
consideration in conjuncticn with Article 86, paragraph 3, to
the Second Session of the Preparatory Committee.
Article 8ticlee 87
- CContributions
The Firstm Session-of the Preparatry Conmittee had.
instructed the Draftina Cmmittee to consider the trcnsposition
of this provisioDrinto Agticle 66 or 64. The -Mraftin'
Ccitteondecided. against any such transpositi but heldI that a
Memvber g n a rear ihouldbe excluded.frcm otinSnot'only3 In the
ganference aut in all organs of the Or-,nization end changed.
- the text approprlate.
Article 88
;ntr into Force E/PC/T/C.6/104
Page 50
Ee c, g2~-~enacpl PO.
2. Each government accepting this Chapter 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.
Employmet and all other Members of the United Nations which were not
represented at that Conference, of the day of deposit of each instrument of
acceptance and: of the day on which this Charter. enters into force under
paragraph 3 of this Article.
3. This Charter shall enter into force on the sixtienth 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 2 of. this Article shall reach twenty, and
the acceptance of each other accepting government shall take effect on the
sixtieth day following the day on which the instrument of such acceptance is
deposited, Provided that, if this Charter shall not have entered into force
by 194 , any of the governments which have made effective the
General Agreement on Tariffs and Trade dated.. .......... 194 , together
with any other governments represented at the United Nations Conference on
Trade and Employment, may agree to bring this Charter into force among
themselves in accordance with arrangement which they may agree upon. Any
Instrument of acceptance deposited. with the Secretary-General of the
United Nations shall be taken as covering both procedures for bringing this
Charter into force, unless it expressly provides to the contrary or is
withdrawn.
4. Each government accepting this Charter does so in respect of its
metropolitan territory and such other territories for which it has
international responsibility with the exception of those territories which
are self-governing in respect of matters provided for by the Charter.. Each
Member shall notify the Secretary-General of the United Nations of its
acceptance of the Charter on behalf of any such self-governing territory E/PC/T/C.6/104
Page 51
COMMENRY
88:3 The Delegate for the United. Kingdcm, proposed. the
re-insertion of the original text nal araxgof pse-ra article 3 in`Ai'tii1e. 78.4f
the Uanited: States Drft Charter in polace of the Londn text of
this pragraph.'Tmhe Dl~ ftinig Cotittee'ecided:to approve'
tetoraei~as'ghe tex t of pra~ah3in iothe foermuflatn oth
London report but to notein its report that the differences
between the two texts have been discussed: and that there
exisfted a body ro opinion fo the reinsertionxton of the te of
the UnDrite States fft Charte'.-
88:4 The Fiorst Session f the Prmeparatory Comittee had directed.
the attention of thoem Drafting Cmittee to the reservations
ntered.nresthcis pet of theo Delegaticnsof AuFrstrealia, ;,a
and thae Netherlnds. The Dommrafting Cittgee, takin due account
of these reservations, decided to ampprove teporarily the
London text of this paragaph with a minor draftinig change n
regarde oversoaterritories. B/PC/TC.6/104
Page 52
and the provisions of this Charter shall become applicable to that territory
on the sixtieth day following the day of the receipt of such notification.
5. Each accepting Government shall take such reasonable measures as may
be available to it to assure observance of the provisions of this Charter
by subsidiary Governments within its territory.
Article 89
Withdrawal and Termination
1. Without prejudice to the -provisions of paragraph 3 of Article 24 or
paragraph 2 of Article 35 any Member may withdraw from the Organization,
either on its own behalf or on behalf of a territory which is at the time
self-governing in respect of matters provided for by this Charter at any
time after the expiration of the three years from the day of the entry into
force of this Charter, by written notice addressed to the Director-General.
The Director-General shall immediately notify all other Members.
2. A withdrawal under paragraph 1 of this Article shall take effect upon
the expiration of six months from the day on which written notice af such
withdrawal is received.
3. This Charter may be terminated at any time by agreement of three-fourths
of the Members. E/PC/T/C.6/104
Page 53
COMMENTARYMMY
:. c . .1-., - |
GATT Library | wb787rz6152 | Report of the Drafting Committee of the Preparatory Committee of United Nations Conference on Trade and Employment | United Nations Economic and Social Council, February 22, 1947 | United Nations. Economic and Social Council | 22/02/1947 | official documents | E/PC/T/C.6/100 and E/PC/T/C.6/98-103 | https://exhibits.stanford.edu/gatt/catalog/wb787rz6152 | wb787rz6152_90230183.xml | GATT_151 | 254 | 1,623 | United Nations
ECONOMIC
AND
SOCIAL COUNCIL
Nations Unies
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/C.6/100
22 February 1947
ORIGINAL ENGLISHISE
. ... OFF T
FERENCE -.*.W T
DRAFTING COSMI OF
NATOM-CIuENCE
I .I.
TEP3PMMITTEE COmTam
ND EMPLOYMENTYMM
BERSHIP
., . . I . ..
. . . 11 I , " .. . . Page 2
Article 2
1. The original Members of the Organization shalI be those countries
~~~~~~.
represented. at tde Unite&. Nations- conference on T ade lnd. nEmp2oymet which
accept the provisions of this C by. .. 194..oe1 in th, event shat thi.
Charter has not entered. into f that bytbaE date, those countries which
agree -o bring this Charter into force pursuant to the proviso to
ph agpavlh 3 of Article 88.
2. Membership in the Organization shall be open to such other countries
as accept the provisions of this Charter, subject to the approval of the
Conference.
3* The Conference shall establish procedures that will open a membership
in the Organizaticon to the United Nations of behal of the trust territories
for whichi the Unted Nations is the admingsterinj authority. E/PC/T/C ./100
Page 3
COMMENTARY
Article 2
"The Drafting Committee considered transferring this article into
Chapter VIII, where it could either be inserted as the first article or
might be merged with Article 88. It was, however, ultimately decided to
retain Chapter II, Article 2, for the time being in its original place and
to leave the final decision on this matter to the Second Session of the
Preparatory Committee. |
GATT Library | sj283wh9898 | Report of the Drafting Committee of the Preparatory Committee of United Nations Conference on Trade and Employment | United Nations Economic and Social Council, February 19, 1947 | United Nations. Economic and Social Council | 19/02/1947 | official documents | E/PC/T/C.6/95/Rev.1 and E/PC/T/C.6/93-97 | https://exhibits.stanford.edu/gatt/catalog/sj283wh9898 | sj283wh9898_90230168.xml | GATT_151 | 1,128 | 7,770 | ~j a&i~A4 J141&UII3L~~Iv6~U~ ~~ RSTRICM]D
ECONOMIC CONSELL E/PC/T/C.6/95/Rev.1
AND ECONOMIQUE 19 February 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
REPORT OF THE DRAFTING COMMITTEE OF THE PREPARATORY CCMMITTEE
OF UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
CHAPTER III
EMPLOYMENT, EFECTIVE DEMAND AND ECONOMIC ACTIVITY
The text of Chapter III as redrafted by the Drafting Committee
appears in document E/PC/T/C.6 /W.25 and as redrafted by the Legal
Drafting Sub-Committee in document E/PC/T/C. 6/W. 73.
The comments given opposite to the respective Charter text specify
the changes introduced in the Charter as adopted at the First Session of
the Preparatory Committee only if these changes are of particular importance
or when it was considered desirable to indicate the reasons for the changes
made.
Delegates are requested to supply in writinig to the Secretariat by
Monday morning, 24 February, eny observations they may wish to make on
this document. E/PC/T/C, 6/ 95/Rev. 1
Page 2
CHARTER
CHAPTER III
EMPLOYMNT, EFFECTIVE DEMAND AND ECONOMIC ACTIVITY
Article 3
Importance of Employment in Relation to the Purposes of the Charter
1. The Members recognize that the 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 high and steadily rising effective demand for godds and services
is not of domestic concern alone, but is a necessary condition for the
expansion of international trade, for the well-being of other countries,
and in general for the realization of the purposes of the Charter.
2. Members agree that, while the achievement and maintenance of effective
demand and employment must depend.primarily on domestic measures, such
measures should be assisted by the regular exchange of information and.
views among Members and , so far as possible, should be supplemented by
international action sponsored by the Economic and Social Council of the
United Nations and carried out in collaboration with the appropriate
inter-governmental organizations acting within their respective spheres and
consistently with the terms and purposes of their basic instruments. E/PC/T/C.c/95/Rev.1
Page 3
COMMENTARY
EMPLOYMENT, EFFECTIVE DEMAND AND ECONOMIC ACTIVITY
GENERAL COMMENTS
It was felt that Article 5 of the Charter drafted at the First
Sessin, referring to the development of national resources and productivity,
ought more logically to appear in Chapter IV on Economic Developments.
Article 5, was, therefore, removed from Chapter III and inserted in
Chapter.IV as Article 10, With a view to expressing more adequately
the sense of Chapter III, the title was amanded to: read "Employment,
Effective Demand and Economic Activity".
SPECIFIC COMMENTS
Article 3
As it was felt that the title of Article 3 was too narrow in relatiÓn
to the contents of this, Article, it was amended to read. "Importance of
Employment, in Relation to the Purposes of the Charter".
1. The importance of the achievement and maintenance of useful employment
opportunities for those able and willing to work and of a high and steadily
rising demand for goods and services was further stressed by adding the
phrase "for the well-being of other countries" after the. words "expansion
of international trade".
2. It was felt that the last sentence of paragraph 1 as drafted at the
First Session was intended to set forth an undertaking, whereas Article 3
otherwise merely contained a recognition of principles. The sentence in
question was, therefore, deleted from Article 3 and inserted in Article 4
as paragraph 2. E/PO/t / .o/ i2/±Rev.i
Page 4
Maintenance of Domestic Employment
1. Each Member shall take action designed to achieve and maintain
full and productive employment and high and stable levels of effective
demand within its own jurisdiction through measures appropriate to its
political, economic and social institutions.
2. Measures to sustain employment and demand shall be consistent with
the other purposes and provisions of this Charter and in the choice of such
measures each Member shall seek to avoid creating balance-of-payments
difficulties for other Members.
Article 5
Fair Labour Standards
Each Each Member recognizing that all. countries have a common interest in
the maintenance of fair labour standards, related to national productivity,
shall take whetever action may be appropriate and feasible to eliminate
sub-standard conditions of Iabour in production for export and generally
throughout its jurisdiction.
Artice 6
The Removal of Maladjustments in the Balance of Payments
Members agree that, in case of a fundamental disequilibrium in their
balance of payments involving other countries in persistent balance-of-
payments difficulties, which handicap them-in maintaining employment,
they Will make their full contribution to action designed to correct the
maladjusttent.
Article 7 r
Safeguards for Members Subject to External Deflationary Pressure
The Organization shall have regard, in the exercise of its functions
as defin d. elsewhere in this Chart,rs to the ne d. of Members to take action
within the provisions of this Charter to safeguard their economies against
deflationary pressure in the event of a serious or abrupt decline in the
effective demand of other countries. E/PC/T/C .6/95/Rev.1
Page 5
Article 4
As explained above, the last sentence of paragraph 1of. Article 3
of the former text was incorporated as paragraph 2 of Article 4. In
addition to some minor drafting changes in this Article, the words
"other countries" in paregraph 2 were replaced by "other Members".
Article 5
1. It was suggested that a reference to the International Labour
Organization, whose functions include the problem of maintaining fair
labour standards, should be inserted in this Article, However, on the
understanding that the main work in this field should be carried out by
the International Labour Organization and that, most Members being also
members of that Organization they would normally co-operate closely
with it in giving effect to the undertaking set forth in Article 5, it
was agreed that such a reference was superfluous.
2. The Chinese Delegation reserved its position with regard to this
Article.
Article 7
The Delegate for France considering a serious decline in effective
demand as having effects in all respects comparable to those of a crisis
of overproduction, was of the opinion that Article 7.should establish a
procedure similar to that laid down in Chapter VI! with a view to meeting
crisis of overproduction in certain commodities (documont E/PC/T/C .6/W.24) E/PC/T/C.6/95/Rev.1
Page 6
Article 8
Consultation and Exchange of Information on Matters Relating.
to EmPloyment
The Members and the Organization shall participate in arrangements
made or sponsored by the Economic and Social Council of the United Nations,
including arrangements with appropriate inter-governmental organizations:
(a) for the systematic collection, analysis and exchange of
information on dosmestic employment problems, trends and policies,
including as far as possible information relating to national income,
demand and the balance of payments; and.
(b) for consultation with a view to concerted action on the part
of governments and inter-governmental organizations in the field
of employnent policies. |
GATT Library | ty895xv9839 | Report of the Drafting Committee of the Preparatory Committee of United Nations Conference on Trade and Employment | United Nations Economic and Social Council, February 26, 1947 | United Nations. Economic and Social Council | 26/02/1947 | official documents | E/PC/T/C.6/104/Rev.1 and E/PC/T/C.6/103-104/REV.1 | https://exhibits.stanford.edu/gatt/catalog/ty895xv9839 | ty895xv9839_90230191.xml | GATT_151 | 6,538 | 43,222 | United Nations
Nations Unies
..v 'RESTRICTED
ECONOMIC
AND
SOCIAL COUNCIL
CONSEIL
ECONOMIQUE
ET SOCIAL
E/PC/T/C .6/104/
Rev.1
26 February 1947
ORIGINAL: ENGLISH
REPORT OF THE DRAFTING COMMITTEE OF THE PREPARATORY COMMITTEE
OF UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
CHAPTR VIII
ORGANIZATION
' ' I I . . _ ' I ' I
The textDr fof Cbaommir ee .as redrafte& by the Iting Ccnittvj
appears in document E/P/T/C.6/W.83
.ite. i . Ieprt
Sub-Committee in this Report.
h L. * *
and as revised by the Legal Drafting
- . 2 : : - .% ; ., 1 E/PC/T/C. 6/104/Rev.1
Page 2
CHARTER
CHAPTER VIII
ORGANIZATION
SECTION A -FUNCTIONS AND STRUCTURE OF TEE ORANIZATION
Article 61
Functions
In addition to the functions provided for elsewhere in this
Charter, the Organization shall have the following functions:
(a) to collect, analyze 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 facilitate consultation among Members on all questions relating
to the provisions of this Charter and, to provide for the settlement of
disputes growing out of the provisions of the Charter;
(c) to make recommendations for, and promote international agreement
on measures designed. to improve the bas3s of trade and to assure just
and equitable treatment for the enterprises, skills, capital, arts and
technology brought from one country to another, including agreement on
the treatment of foreign nationals and enterprises, on the treatment
of commercial travellers, of commercial arbitration and. on the avoidance
of double taxation;
(d). generally to consult with and make recommendations and, as
necessary, furnish advice and assistance to Members regarding any
matter relating to the purposes or the operation of this Charter, and to
perform any other function appropriate to the purposes and. provisions of
this Charter;
(e) to co-operate with the United Nations and with other
inter-governmental organizations for the purpose of furthering the
attainment, with an economy of effort, of the economic and social E/PC/T/C .6/104/Rev.1
Page 3 COMMENTARY
CEAPTER VIII COMMENTARY
, _
ANIZATIOZ
SECTIONN A T UCTUR AWD SHEJCTORGANIZAaF T GA ION
Article 61 --
Functions ;
General Comments.
The First Session of the Preparatory Cclitee had
instructed the Drafting Comittee to examine Article 61 with a
view to Insurngr that the provisions of this Article are
consistent with other provisions 0o the Charter, especially
with those relating to Eployment Policy and. Industrial
Development. The Drafting Cc=ittee, after thorough discussion
of all issues entering Into the formulation of Article 61,
decided against the course of spelling out specifically all
functions of the Organization mentioned in other articles of
the Charter. E/PC /T/C.6/104/Rev.1
Page4 CHARTER
objectives of the United Nations and the restoration and maintenance of
international peace and security.
Article 62
Structure
The Organization shall have as its principal organs a Conference, an
Executive Board, Commissions as established under Article 72; and a
Secretariat. X .. .E/PC/T/C .6/104/Rev.1
Page 5
COMMENTARY
. 7 I .1 ...
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- - , , , . .. 1. .
. I ... ? .. ;, I .
. I E/PC/T/C.6/104/Rev.1
Page 6 CHARTER
SECTION B - THE CONFERENCE
Article 63
Membership
1. The Conference shall consist of the representatives of the Members of
the Organization.
2. Each Member shall have one representative and may appoint alternates
and advisers to its representative to the Conference.
3. No representative to the Conference may represent more than one Member.
Article 64*
Voting
1. Each Member shall have one vote in the Conference.
2. Except as may be otherwise provided for in this Charter, decisions of
the Conference shall be taken by a majority of the Members present and voting.
* See Annexure B E/PC/T/C.6/104/Rev.1
Page 7
COMMENTARY
Article 64
Voting
General Comments.
1. The First Session, referring to its discussions on the
subjects of Voting in the Conference and. Executive Board
membership, had instructed the Drafting Committee, "insofar
as it is able to do so within its terms of reference," to
formulate alternative schemes, taking account of the suggestions
for a system of weighted voting and for provisions for permanent
seats on the Executive Board.
2. The Drafting Committee referred the issue of Executive
Board membership and Voting in the Conference to its
Adndnistrative Sub-Committee, which discussed the issue of
weighted voting without arriving at any final conclusions.
In this respect reference' is made to the Report of the
Administrative Sub-Committee which appears as Aunexure B to this
Report. E/PC/C.6/104/Rev.1
Page 8fqQ I .
CHEC P -
. ;'. f .. -
I ? . . i I . . . . 1.
I I . . E/PC/T/C .6/104/Rev.1
Page 9
COMMENTARY
3. The Delegation of the United Kingdom submitted a formala
on weighted voting end a note on two-thirds majorities, which
are attached to the Report of the Administrative Sub-Committee
as Appendices I, II, XI and. XII.
4. The Delegate of France, pointing out that any modification
of paragraph 2 would involve a change in substance, directed,
the attention of the Drafting Committee to a discrepancy in
voting procedure under the Charter; whereas the Charter calls
for a two-third vote on procedural questions euch as in
paragraph 3 of Article 66, the most important decisions on
substance are subject to a simple majority vote. He suggested
that the attention of the Second Sescion be dawn to this
anomaly and recorded the reservation of Frence th the text
should. be chanced in such a manner as to call for a two-third
majority vote on all major substantive issues. E/PC/T/C.6/104/Rev.1
Page 10 CHARTER
Article 659- - iv:
Sedsied, erand&Ori Uan Qfficers;
1. The eonferenco shill meetlan anngal dr.!uaui ses iions andin such special
sessions as may be convoked by tohe Directr-G enerel atthe request of the
Executioe Boa d 6r of 'a majority- of the Members.
2o The Ccshallence abif adopt its own rules of pr cedure. .It shall annually
elect iets Presidnt and other officers. E/PC/T/C 6/104 /Rev.1
Page 11
COMMENTARY E /PC/T/C . 6/104 /Rev.1
Page 12
CHARTER
Article 66
Powers and Duties 3/PC/T/C. 6/104/Rev. 1
Page 13
Article 66
Powers and Duties
General Comments
The First Session had instructed the Drafting Committee
to review the text of paragraph 8 of Article 66 in the light
of observations of the French Delegation to the effect that
the Charter contained elsewhere important decisions to be
taken by the Conference, with respect to which no precise
voting requirement had been laid down. It was not found
necessary to effect this review, because the Drafting Committee
decided to delete the above mentioned paragraph, in view
of the fact that the majority provision of paragraph 7
Article 22 had been amended. E/PC/T/C .6/104 /Rev.1
Page 14. :
RTER
Article 66
Powers and Duties
1. The Conference shall have final authority to determine the policies
of the Organization. It may make recommendations to the Members and to
other international organizations regarding any matter pertaining to the
purposes of this Charter.
2. The Conference may delegate to the Executive Board authority to
exercise any of the powers or perform any of the duties of the Organization,
except such specific powers and duties as are expressly conferred or
imposed upon the Conference under this Charter.
3. The Conference may, by the affirmative votes of two-thirds of the
Members of the Organization, determine criteria and set up procedures,
including voting procedures, for waiving, in exceptional circums tances,
obligations of Members undertaken pursuant to this Charter.
4. The Conference shall establish procedures for making the determinations
provided for in Article 30 and in Article 52, whereby any such determinations
shall be made through the Organization by consultation among the Members
substantially interested in the product concerned. Page 15 E/PC/T/C.6/104/Rev.1
Powere and Duties
66:1 The Drafting Committee was of the opinion that the words
"international organizations" in this context were intended to
cover both private and public international organizations.
66:2 _ .
66:3 e Delegate of Australia, seco,ded by FranceS suggested
to include in. this paragraph a catalogue of those powers which
;ay no be delegated. by the Conference to the Executive Board. E/PC/T/C . 6/104/Rev .1
Page 16
5. The Conferences shall establish procedures for making the determinations,
decisions and recommendations provided for in paragraphs 3 (c) and (d) of
..* -, . ... . ., . . - ;. , -
Article 26, paragraph 1 (e) (i) and paragraph 2 of Article 28, paragraph 2 of
Article 34 and Article 35.
6. The Conference may prepare or sponsor agreements with respect to ang
matter within the competence of the Organization and by the affirmative
votes of two-thirds of the Members present end voting recommend such
agreements for acceptance. Each Member shall within a period specified by the
Conference notify the Director-General of its acceptance or, in the cese of
non-acceptance, shall furnish a statement of the reasons therefor.
7. The Conference shall approve tha budget of the Organization, and
shell apportion the expenditure of the Organization among the Members.
8. The Conference shall determine the site of the Crganization and shall
establish such branch offices as it may consider desirable. E/PC/T/C. 6/104/Rev.1
Page .17
66:7 The Delegate of the United States suggested to amend
paragraph 4 by adding the following sentence: "No one Member.
shall be required to pay more than one-third of the total
&zz~of the Organization for any given budgetary period,"
The Delegates of the United Kingdom, Canada and of South Africa
agreed with the principle incorporated in this amendment. The
Drafting Committee noted the reference in the report of the First
Session which suggested that apportionment of expenses should
follow the general principles adopted by the United Nations.
The Delegates of Australia, China and Cuba considered that
no rigid maximum should be laid down in the Charter for the
contribution of any Member.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ E/PC/T/C. 6/104/Rev .1
Page 18
SECTION C - TARIFF COMMITTEE
Article 67
Tariff Committee
1. There shall be a Tariff Committee which shall act on behalf of the
Organization in the making of recommendations and determinations pursuant
to paragraph 3 of Article 24.
2. The Committee shall consist originally of those Members of the
Organization which shall have made effective the General Agreement on
Tariffs and Trade dated .., 194.. Any other Member of the Organization
shall be a member of the Committee when, in the judgment of the Committee,
that member shall have completed negotiations pursuant to paragraph 1 of
Article 24 comparable in scope or effect to those completed by the original
members of the Committee.
3. Each member of the Committee shall have one-vote.*
4. Decisions of the Committee pursuant to paragraphs 1 and 2 of this
Article shall be taken by a two-thirds majority of its members and other
decisions by a simple majority..
5. The Committee shall adopt its own rules of procedure, including
provision for the election of its officers.
* The Anner' - ~c r Page 19 E/PC/T/C.6/104/Rev.1
Article 67
Tariff Committee
67 The Committee deleted The provision that the functions
of the Tariff Committee should be transferred to the Conference,
because it was of the opinion that membership of the Tariff
Committee should be confined to those Members of the Organization,
who had carried out the obligations under Article 24. Page 20 E/PC/C.6/104/Rev.1
CHARTER SECTlON D EXECUTIVE BOARD
1. The Execuitive Biard shall consist of fifteen Members of the Organization
elected by the Conference. - -" '
2. Subject gr the provisions o paraseaph (3) one-third. of tho members
of the executi e Board shall be elem ted, each year for a ter of three years.
A retiring member shall be eligible for immediate re-election.
3. At the first election fifteen membe s of the Executive Board& shell be
chosen, The tezm of office of five member shall expire at the end, of one
year and. of five other members at the end. of two years, in accordance with
arrangements made by the Conference.
Sg Annexure B Page 2 E/PC/T/C.6/104/Rev.1 '
CTITN 1l D THh EXECUTIVE BOARD
Membership
GeneraloCmmnents
1. The First Session f- the Preparatory Cmmsietoh bad instructed
thD Irafni momm ittee to consider the question of ExecutivB 3oard
membership in conncm tn wi'itthetl qseotno of vongMi In the
Conference and reference is made in this respect to the
mmcoentary to Article .4i
2. The DraftingommiCattee ferred h.si ma tter to its
mAnidistrialve Subommi ttee, which discussedlafl aspect of
Mceoutive Board Mbmlership dne reported on its conclusions
in ri the rFisR Beport of the Adm instrative Subom-cmittee, which
forms an annexure to the pRVort of the r Dafting mmomittee.
Reference imsnade to this anneruwe and all appendices attached
to it.
3. The Drafting Coimmttee, without reachingnyxv decision on
- the substance of the Report of its Adniiisarivive Sub-Committee
* . - decid d-to attach it with Appendices to its o wnReport, inroiret
* - mo=ake it available as a-ior inzig docume t-for the Soncdd Session.
ThD draftingomcimIttee also decided to swov in thehCbarter text
-he first alternati off- t e- Lond R: oepritIn squa e* brackets'
nd to attach afuThheber appendices to the AdrsistrativSus-e
mmCoitt's Rr ortt- ths aecond, thdrand fVuroith aeraznivesVof t4eh
~ ~ ~ 4 Page 2 E/PC/C.6/104/Rev.1
- X . * , - - -*.
4. Each member of the Executive Board shall have one representative and may
appoint alternates and advisers to its representative.7
Article 69
1. Each meber of the Execute Board shall have one vots.
2. Decisions of. the Executive Board shall be made a majority of members
present and voting.. . ;. ..... ..
Article 70 . . .
1rules wn rulesspr cedure .o r inc eludin
rules oonvening of i sQnv; ions. t; sess4... . .. ..B.
2. .ahually eecut its d.airman and oll. tn . elect,1 ta..Ch nother officers,
rwho ehaion.eligible. for :e-lcct4mo, -
* * .; . -< -rs .5 . -:Jo'-- @i' 't'*\"
3c - ve Board, as. hliev'uti :boj , all be itl 3suc- sh. enttled to
prtrighte-";.vote nn the -drlibera i to .,tia thhe .b.tton hof-te Conference.
.- - 1nrg.-hember o wi-+ the: oO a ~ ieater of~ch is nt ^.m*mb.-fe the Executive.
Bog&,': shd a bInvisen ativt o sanyen .&-iscusseoteto d 44.gsticnby the
ooe~4fta ulartaer sufptantial ncern toflti .conm- to that-Memer. Such
shall, tave Wi pur&L, oo such posccfa on,ohase ss i 2v3.hall the rigts
ff nemb raao the .Bo rd e rigept : ve.8ht .o-tote--
Article 71
Powers and Duties
1. The Executive Board shanl be respo"seble fuor tho electlicin the pocies
of the Organ ization an shall exercise the powers delegated to it and perform
the duties assigned to it by the Conference.. It shall supervise the E/PC/T/C . 6/104/Rev. 1
Page 23
of the London Draft Charter and the United Kingdom's Delegate's
paper on the question of two-third majorities
Article 70
Sessions, Procedure and Officers
70:1l The Drafting Committee draws the attention of the Second
Session to the poasible desirability of providing for the manner
in which the functions of the Executive Board will be exercised
while the Board is not in session.
Article 71
Powers and Duties
71:1 The Drafting Committee is of the opinion that the last
sentence of this paragraph will be redundant if the second
Session should decide to include provisions for a Commission
for industrial development in the text of the Charter. Page 24 E/PC/C.6/104/Rev.1
CHARTER
activities of the Commissions provided for in this Charter and shall take
such action upon their recommendations as it may deem appropriate. It shall
provide adequate machrery to review the work of the Organization relating
to industrialization and general economic development.
2. The Executive Board may make recommendations to the Conference, to the
members of the Organization, or to other international organizations, on
any subject falling within the scope of this Charter, and shall prepare
the prelinary agenda of the Conference.
3. The Executive Board may recommend to the Conference the admission of
new Members of the Organization.
z_
- - E/PC/T/C.6/104/Rev.1
Page 25
- - .. . .- .- '
. ..
.. . .
.. . .
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.. ..
.
..
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. .
., - . .
I. ? ?- , - , " ? I ?27 . . ,: 7. ,
. :. I
. , 7-
.1-7 -.. . .. SECTION E - COMMISSIONS
Article 72
Establishment
The Conference shall establish a Commission on Commercial Policy, a
Commission on Business Practices and a Commodity Commission and may establish
such other Commissions as may be required. The commissions shall be
responsible to the Executive Board.
Article 73
Composition and Procedure
1. Commissions shall be composed of persons chosen by the Executive Board
and qualified by training or experience to carry out the functions of the
Commissions in accordance with the purposes of this Charter.
2. The number of members of each Commission and the conditions of service
of the members of each Commission shall be determined in accordance with
regulations prescribed by the Conference.
3. Each Commission shall elect its Chairman, and shall subject to approval
by the Executive Board, adopt its own rules of procedure.
4. The Chairman of each Commission shall be entitled to participate,
without the right to vote, in the deliberations of the Executive Board and of
the Conference.
5. Pursuant to agreements under paragraph 2 of Article 81, the Organization
may make arrangements for representatives of other inter-governmental E/PC/T/C.6/104/Rev.1
Page 27
COMMENTARY
SECTION E - COMMISSIONS
Article 72
Establishment
Article 73
Composition and Procedure
The Delegation of South Africa, with the support of' the
Delegate for Australia, felt that this provision was redundant in
73:5 E/PC/T/C.6/104/Rev.1
Page28
CHARTER
organizations having a special interest in the activities of any of the
Commissions to participate in the work of such Commissions. E/PC/T/C . 6/104/Rev.1
Page 29
view of provisions of Article 81
The Food and Agriculture Organization Obsorver, stressing
the importance of close working relations between the
International Trade Organization and the Food and Agriculture
Organization suggested inclusion of the following note in the
report, as an observation on this Article and on paragraph 2 of
Article 86;
"While this pbraseology appears the most appropriate
for covering all the specialized agencies, it is clear
that there is one, namely the Food and Agriculture
Organization, which bas specific responsibilities for
products of farms, fcrests, and fisheries, some of which
products may be, or may become subject to commodity
arrangements. It is evident that the close co-operation
and reciprocal representation which this special situation
requires needs to be adequately provided for in the
agreement negotiated between the Internationl trade
Organization and the Food end Agriculture Organization.
If, however, it i8 desired to provide specifically for
this in the Charter, appropriate changes could be made
in these two Articles.
It may be noted that the Report of the Food and
Agriculture Organization Preparatory Commission provides
for International Trade Organization representation in the
Food and Agriculture Organization Annual Programme Review
and on the World Food. Council."
GENERAL COMMENT TO ARTICLES 74 TO 77, INCLUSIVE
1. The First Session of the Preparatory Committee had
instructed the. Drafting Committee to prepare appropriate drafts
covering the functions of the commissions on commercial policy,
business practices and commodities. The Drafting Committee E/PC/T/C.6/104/Rev.1 Page 30
CHARTER~~~~~~~~~~~~~~~~~~~~~~~
. ... ,t.,; ,, : s,
-.~~.
Article 74
;,.;.- , . ,,-eneral Fun:tis '
he. cc~iaoin :hal perform such f'unctons'-as the Conf'erene or the
Executive oard, mas assi to them, including such.-functiona as the
in eonnutive oard: may eem appropriate in :cc.ection'with the settlement of
idispoutes. Tl Phej _f:cton of. te CCviSB,. ommeria.t .o, he
C:±esinm onBusiness Practiceo and the Comodity Commission, sall include
thoase ecI resp in Arty. es ,com5 76And. .77, .e..ectivel. -The omissions
shall consult vith each other as necessary for the exercise of their
Art.cle 75 . -
mctns of' th Cm-s.si, o- ..
Ph6 C ,I ssioh-'on hec ercl l iolicy shall -ave tid - followIng functions:
n(ations ise ahe, ake redandelt±ae to t..
Emattersxec:tlinLew'Borin dheob .s1l -al3n vitht8f cope of' hapter V and
regalicygaspehts oh propisals ; poiya ci3- f-3~ooainvolving the
exion of its of its functions undergmizat1e:oaI- *'u-tin ~e his' Carter; and.
~ _ . \ E/PC/T/C .6/104/Rev. 1
Page 31
COMMENTARY
The Drafting Committee, after discucsing the advantages
and disadvantages of spelling out in Articles 75, 76 and
77 all functions which are assigned to the commissions
in the respective parts of the Charter, decided against
such a course and drafted the text of these Articles in
a more general manner. The draft of the Administrative
Sub-Committee in this respect was unanfmously approved
by the Drafting Committee.
Article- 74
General Functions
The Drafting Committee felt that the commissions
should be authorized to consult with each other on matters
falling within the purview of two or more commissions and,
consequently, added a sentence to this effect in the text
of Article 74. Page 32
(b) to develop and to recommend to the Executive Board progammes
designed to futther the objectives of this Charter in the general field
of commerical policy
Article 76
Functions of the Commission on Businees Pracices
The Commission on Business Practices shall have the following functions:
(a) to conduct studies in the field of Restrictive Business Practices,
as provided for in paragraph (a) of Articls 41; and
(b) to advise and make recommendations to the Executive Board on all
matters falling within the scope of Chapter VI and regarding the exercise
of the functions of the Organization under this Charter, insofar as they
relate to Restrictive Businese Practices.
Article 77
Functions of the Commodity Commission
The Commdity Commission shall have the following functions:
(a) to study commdity problems and proposals for dealing with them
and to prepare the reviews called for in Article 55; and.
(b) to advise and make recommendations to the Executive Board on all
matters falling within the scope of Chapter VII and those arising from
the provisions of paragraph 4 of Article 30. E/PC/T/C.6/104/Rev.1
Page 33
COMMENTARY E/PC/T/C.6/104/Rev.1
SECTION F - THE SECRETARIAT :
Article 78
Composition - -
1. The Socretariat shell consist of a D rector-General and. such staff as
ma be required,
2. Ihe DIrector-General shall have authority to appoint Deputy Directors-
General. in accordance with regulations approved by the Conference.
Article 79
The Director-General
1. The Director-General shall be appointed by the Conference upon the
recommendation of the Executive Board. The powers, duties, terms and
conditions of office of the Director-General shall be in accordance with
re ulations approved, by the Conference. He shall be the chief administrative
onfficer of the Orraization, and shall be subject to the general supervision
of the Executive Board.
2. The Director-General or his representative shall be entitled to
participate, without the right to vote, in all meetings of the Conference,
of the Executiomme Board, of the cdisommions and of the cwittees of the
Organization. The aDirector-General ry initiate proposals for the
consiaeration of my orgen of the Organization. He shall present through
t eaicecutive Board. en annual report to the Conference on the work of the
Organization and shall in consultation with the Executive Board. prepare
the budget of the Organization for submission to the Conference. E/PC/T /C. 6/104/Rev . 1
Page 35
COMMENTARY Page. 36
Article 80
Employment of Staff
1. The Director-General shall appoint the staff of the Secreteriat and fix
its duties and terms and conditions of service in accordance with regulations
approved by the Conference. The paramount consideration in the employment
of the staff and in the determination of its conditions of service shall be
the necessity of securing the highest standards of efficiency, competence
and integrity, due regard being paid to the importance of recruitment on as
wide a geographical basis as possible.
2. The conditions of service, such as the provisions governing qualifications,
salary, tenure and retirement of members of the Secretariat shall be fixed, so
far as practicable, in conformity with those for members of the Secretariat
of the United Nations and of other specialized agencies. E/PC/T/C .6/104/Rev.1
Page 37
COMMENTARY
Article 80
Employment of Staff E/PC/T/C.6/104/Rev.1
Page 30
SECTION G -MISCEILANEOUS PROVISIONS .
; . .7=.. sl, \ t
Relations with Other orsnization .;;---
1. The Organization shall be brought into relationship with the
United Nations as soon as practicable as one of the specialized agencies
referred to in Article 57 of the Charter of the United Nations. This
relationship shall be effected through agreement with the United Nations
under Artic, e 63 of the Charter of the United Nations which agreement shall
be concluded by the i±rector-General and approved by the Conference. The
agreement shall provide for effective co-operation between the two
OrGaaizations in the pursuit of their coon purposes, and at the same time
shall recognize the cojjmpetence of the Organization within itJurisdiction
as definej in this Charter. The Conference may adJust the provisions of this
Charter to conform to any such agreement provided such adjustments do not
involve new obligations on the pert of Members.
2. The Organization shall co-oporate with the other inter-governmental
organizations having related interests and activities. Arrangements for
co-operation with such organizations may be made by the Executive Board.
Mffective working relationships with such organizations, which may include
the establishment of Joint committees or provision for reciprocal representation
at meetings or such other measures as may be necessary to assure effective
co-operation, may be established by the Director-General.
3. The Organization may make suitable arrangements for consultation and
co-operation with nongovernmental organizations concerned with matters within
its competence and may invite them to undertake specific tasks.
4. Whenever the Conference of the Organization and the competent authorities
. ..e
of any other international organization, whose purposes and functions lie
ithin the competence of-the Organization, deem it desirable to effect a
transfer of its resources and functions to the Organization, to incorporate E/pc/T/C.6/104/Rev .1
Page39
COMMENTARY
Relations with Other Organizations
81:1 The Australian Delegation moved, supported by the
South African Delegation, to delete the words "by the
Director-General and' in the second sentence of this paragraph
because it was unrealistic to assume that negotiations of this
kind would actually be conducted and concluded by the
Director-General. The Delegate for France expressed the opposite
view pointing out the need for clear designation which official
or organ of the International Trade Organization would be
competent to represent the Organization in such proceedings. E/PC/T/C.6/104/Rev.1
Page 40
it into the Organization or to bring it under the supervision or authority
of the Organization, the Director-General, subject to the approval of the
Conference, may enter into mutually acceptable arrangements for this purpose.
The Organization may acquirs such resourocs and assume such functions of,
or incorporate or exercise such control over, such other orgaiizations as may
be provided by any convention or agreement appropriate to the purpose. The
Members shall; subject to their respective constitutional requirements, take
such steps as the Conference may determine to integrate such other international
organizations into the structure of the Organization.
Article 82
International Responsibilities of Personnel of the Organization
1. The responsibilities of the Director-General of the star shall
be exelusively international in character. In the discharge of
their duties they shall .. seek or receive instructions from
any government, or from any authority external to the Organization. They shall
refrain from any action which might prejudice their position as international
officials.
2. The provisions of paragraph 1 o_ ,,s Article shall also apply to the
member of the Commissions provided for in Article 72.
3. The Members shall respect the international character of the
responsibilities of these persons and shall not seek to influence them in the
discharge of their duties.
Article 83
International Legal Status of the Organization.
The Organization shall have legal personality and shall enjoy such legal
capacity as may be necessary for the exercise of its functions. E/PC/T/C. 6/104/Rev.1
Page 41
COMMENTARY
*" .. .. - . ,- . ;
:.r . . . . , . - , . . . , E/PC/T/C.6/104/Rev. 1
Page 42
.. . I-LI
CHARTER
Article 84
States of the Orgnization in the Territory of Members
2. The Organization shall enjoy in the territory of each of its Members
such legal capacity privileges and immunities as may be necessary for the
exercise of its functions.
2. Representatives of the Members of the Organization and its officials
shall similarly enjoy such privileges and immunities as may be necessary for
the independent exercise of their functions in connection with the
Organization.
3. The Conference may make recommendations with a view to determining the
details of the application of paragraphs 1 and 2 of this Article and may
propose conventions to the Members for this purpose.
Article 85
Amendments to the Charter
1. Any amendment to this Charter which does not involve new obligations
an the part of Members shall become effective upon receiving the approval of the
Conference by the affirmative votes of two-thirds of the Members.
2. Any amendment to this Charter which involves new obligations on the part of
Members, shall become effective for each Member accepting the amendment, upon
acceptance on the part of two-thirds of the Members, and thereafter for each
remaining Member on acceptance by it. The Conference may datermine that any
Member which has not accepted an amendment under this paragraph within a period
specified by the Conference, shall cease to be a Member of the Organization.
In the absence of such determination, a Member not accepting an amendment
shall, notwithstanding the provisions cf paragraph1 of Article 89, be free
to withdraw from the Organization upon the expiration of six months from the E/PC/T/C . 6/104/Rev.1
Page 43
COMMENTARY
~ __ _ .~ . i. ~
8.5:1 The Delegate -for Frence reserved. his position in regard
to the present Ibrasing of this paragraph. E/PC/T/C. 6/104/Rev.1
Page 44
dey on which written notice of such withdrawal is received by the
Director-Genral.
3. The Conference shall, by the affirmative votes of two-thirds of the
Members, adopt rules of procedure for carrying out the provisions of this
Article.
Article 86
Interpretation and Settlement of Disputes E/PC/T/C.6/104/Rav. 1
Page 45
COMMENTARY
Article.86
Interpretation and Settlement of Disputes
86: 2;3 & 4 The Delegate for the United Kingdom explained his view that
it was imperative for the Organization to be master in its own
house and to be able to make final determinations of a nature
provided. for in the Charter: These determinations call for the
exercise of discretion end for rulings on economic subjects on
the basis of economic reasoning. In this respect, there exists
a wide difference between normal commercial treaties, whose
character is static, and the Charter, which is dynamic and
subject to change in the light of experience. The
determinations and ruaings of the Organization do not form a
proper object for judicial review, even by an economic chamber
of the International Court of Justioe. Judicial decisions call
for the exercise of legal judgment but not for economic
evaluation. The distinction between "Justiciable" and other
issues in Article 86 of the London text is untenable and
unworkable, But in order to prevent abuse of majority power
provision should be made whereby, on the motion of one-third of
the Members, an advisory opinion of the International Court of
Justice would be sought on any isa -involving Interpretation
of the Charter, In the United Kingdom Delegate's view, the
subjects of nullification and impairment and of interpretation
and settlement of disputes belong together, and for this reason
the United Kingdom draft has combined the provisions of
Article 35; paragraph 2 and Article 86. Page 46 ''
fficial lan
shall be equallyr * . btive
J.An q.esono ifenc on2. rny iug ion ofarpdeftarenieocoof this Charter
or arising out of, td operation shall b0 referreii so tli6'E cutive eoard for
a ruling theriV I&Zecutive Boara-, -
. - ms .eid .ihi rdgv onrln
on ihe matter ,.its61f~" t&elfe or ,o withr i:'donsezi)` c~~tint art she
~~~~~~~~~~- ., .,,
argrteation -~Mn idh- . rm y r maygbe ft~e~d by thi partiese' An ulin o
the : eUh-t Bo Memb*9 directiuponf the r6iqst of layuboers'e tly aficted
. ...'.tot........s.i...-..M...mber...d.......t......affect..e. .
or, if the ruling. of general applcati upon the rebqses of any Member,
be reteired to o-e Conference.
3oo f Ail' u't iciable issue arisinGh out. o re u3d of the Cnterence with
respectote pcrtation of. sub-peragFrpa coruin
Artile 37 or of' pargap s2 bf*tile-9 may be submitted by any party to
the dispute -to the Internation Court of Jutice, and-any justiciable issue
3..Ftsg out of any other ruling of the Conference may, in accordance with
.. .. . . -
such pocedures o the Conference s2f establish,.be- submitted by any party
to the dispute to the International ourt.of JuStice- ahe nyJbers accept the
jurisdiction.rp the Court Inreancet of' cstablish,.besit to the. Cout
under this Article . Page7 E/PC/T/C.6/104/Rev.1
COMMENTARY
The Committee decided that this as well as the Memorandum,
submitted to the First Session by the Delegation of France,
Belgium and the Netherlands, on the subject of arbitration, was
a substantive matter of the highest importance which would have
to be referred to the. Second Session of the Preparatory Committee.
For this reason it was agreed to put paragraphs 2-4 inclusive of
the London draft into square brackets.
7, ? . . . E/PC/T/C.6/104/Rev.1
4. The Organization may in accordance with 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
its activities. ...
Article 7
Contributions
Each Member shall contribute promptly to the Organization its share of
the Organization's expendapures as prportioned by the Conference. A Member
of the OrGanization, which as in arre.rs in the payment of its financial
contributions to the Organization shall have no vote in the organs of the
Orgenization if the amount of itsqurrears ekuals or exceeds the amount of the
contributions due from it for the preceding two full years. The Conference
mry, nevertheless, permit sech a Membor to vote, if it is satisfied that the
failure to pay is due to conditions beyond the control of the Member.
Article 88
Entry into Force
1. The original of this Charter, as set forth in the Final Act of the
United. Nations Conference on Trade and Employment, shall be deposited with
the Secretary-General of tNa inited Irt ons,fuwho will rrnish certified copies
thereof to all interested governments. E/PC/T/C.6/104/Rev.1
Page 49
COMMENTARY
86:4 The First Session of the Preparatory Committee had
instructed the Drafting Committee to consider the desirability
of redrafting paragraph 4 in view of the possibility that the
General Assembly of the United Nations might agree to grant
.to other specialized agencies a general blanket authorization
to seek advisory opinions from the International Court. Since
paragraph 3 of Article 86 in its present form provides for the
possibility of review of decisions of the International Trade
Organization by the International Court, the Drafting Committee
feels that a blanket authorization to seek advisory opinions
might conflict with possible later litigetion before the
International Court and for this reason refers this issue for
consideration in conjunction with Article 86, paragraph 3, to
the Second Session of the Preparatory Committee.
Article 87
Contributions
Article 88
Entry into Force
. .~~~~~~~~~~~~~~~~~~ E/PC/T/C.6/104/Rev.1
Page 50
2. Each government 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
?mployment and all other Members of the United Nations which were not
represented at that Conference, of the day of deposit of each instrument of
acceptance and of the day on which this Charter enters into force under
paragraph 3 of this Article. . . .
3. nhis Charter ehall e ter izto force on the sixtieth day following the
f rz on nmech the number co' goverrunnts repressnted at the United Nationz
Conference on Trade dnd Empl yinant which have peooited. Astruments of
acceptance pursua to paragraph 2 of this Article shall reach twenty, and
the accepsing gof each ot eh.Acceat4.s Cvernment .sball tske effect on the
six tieth day follovig. heru.eay n w ich he instxmnst.of .such. acceptance is
dep ife ProvCded,.t shtl noti.a j.this Qharterlhaol pve entered into force
by g er 194, any of the Govcrents which have made effective the
GeneralaAgreement on Tariffs end Trade dated .. a ....... .. 194 . together
with any other governments represented at the United Nations Conference on
Tradagree d Employment, may iez to bring this aharger into force mon
themselves in accordance with arrangemegnts which tyey may aree upon. AnV
instrumnt of acceptance deposited with the Secretary-General of the
United Nations shall be taken as covering both procedures for bringing this
Charter into force, unless it expressly provides to the contrary or is
withdrawn.
4. Each government accepting this Charter does so in respect of its
metraopolitan territory,end such other territories for which it has
international respensibility with the cxception of those territories which
are self-goveraning inrovspect of-mtters p=,yided fEa by this Charter. rech
Member shall notify the Secretary-General of the United Nations of its
aaceptaoce of this Chzrter cn behalf of any such self-governing territory, E/PC/T/C.6/104/Rev.1
Page 51
88:3 The Delegate for the United Kingdom proposed the
re-insertion of the original text of paragraph 3 of Article 78 in
the United States Draft Charter in place of the London text of
this paragraph. The Drafting Committee decided to approve
temporarily the text of pararaph 3 in the formulation of the
London report but to note in its report that the differences
between the two texts have been discussed and that there
existed a body of opinion for the re-insertion of the text of
the United States Draft Charter. E/PC/T/C.6/104/Rev.1
Page 52
and the provisions of this Charter shall become applicable to that territory
on the sixtieth day following the day of the receipt of such notification.
5. Each accepting government shall take such reasonable measures as may
be available to it to assure observance of the provisions of this Charter
by subsidiary governments within its territory.
Article 89
Withdrawal and Termination
1. Without prejudice to the provisions of paragraph 3 of Article 24 or
paragraph 2 of Article 35 any Member may withdraw from the Organization,
either on its own behalf or on behalf of a territory which is at the time
self -governing in respect of matters provided for by this Charter at any
time after the expiration of the three years from the day of the entry into
force of this Charter, by written notice addressed to the Director General.
The Director-Genenra1 shall immediately notify all other Members.
2. A withdrawal under paragraph 1 of this Article shall take effect upon
the expiration of six months from the day on which written notice of such
withdrawal is received by the Director-General.
3. This Charter may be terminated at any time by agreement of three-fourths
of the Members. E/PC/T/C.6/104/Rev.1
Page 53
COMMIENTARY |
GATT Library | vg069pq9174 | Report of the Drafting Committee of the Preparatory Committee of United Nations Conference on Trade and Employment | United Nations Economic and Social Council, February 24, 1947 | United Nations. Economic and Social Council | 24/02/1947 | official documents | E/PC/T/C.6/99/Corr.1 and E/PC/T/C.6/98-103 | https://exhibits.stanford.edu/gatt/catalog/vg069pq9174 | vg069pq9174_90230182.xml | GATT_151 | 417 | 2,901 | United Nations
Natio Unies
ECONOMIC
AND
SOCIAL COUNCIL
CONSEIL
ECONOMIQUE
ET SOCIAL
RESSTRICTED
E/PC/T/C.6/99/
Corr. 1
24 February 1947
ORIGINAL: ENGLISH
REPORT OF THE DRAFTING COMMITTEE OF THE PREPARTORY COMMITTEE
OF UNITED NATIONS CONFERENCE CE: NR ITADEN AVDPL EMENTOYM
VH:APliB I
~MP, .
, . , ..URP(] . ' |ES
The text of Chapter I as redrafted by the Drafting Committee appears
in document E/PC/T/C.6/78 and as revised by the Legal Drafting Committee,
in this document. E/PC/T/C.6/99/Corr. 1
Page 2
R S ~~~~~PUEPOESB.
Article 1
General Purposes
In pursuance of the dnietermination of the Uted Nations to create
conditions of economic and social progress essential to world peace, the
States party to this Charter hereby establish an International Trade
Organization through which they will work for the fulfilment of the
purpoes set out hereunder:
1. To promote -national and international action
(a) designed to realize the objectives set forth in
the Charter of the United Nalyations and particula in
Article 55 (a) thereof, namely, higher standards of
living, full employment, and conditions of economic
and social progress and development;
(b) for the expansion of the production, exchange and
consumption of goods. for the achievement and maintenance
in all countries of high and steadily rising levels of
effective demand and real income, for the development
of the economic resources of the world, and for the
reduction of tariffs and other trade barriers and the
elimination of all forms of discriminatory treatment
min international coerce;
(c) to avoid excessive fluctuations in world trade and
contribute to a balanced and expanding world economy.
2. To further the enjoyment by all Member countries, -on equal terms,
of access to the markets, products and productive facilities which
are needed for their economic prosperity and development.
3. To encourage and assist the industrial and general economic
development of Member countries, particularly of those still in
the early stages of industrial development. E/PC/T/C.6/99/Corr .1
Page 3'
CMMEONTARY
URPOSES~ , -v o . .
Article 1
General Purposes
A number of Delegations favoured the term "stable"
instead of "steadily riagrsihng" in p)arap 1 (b.
'. (b)
1 ?- - : , I F/PC/T/C6/99/Corr.1
Page 4
CHARTER '
4. To facilitate the solution rof pmobles in the fiefld o
international trade, employmandent economic development through
consultataion nd collaboratimong on aMembers.
5. To enable Members, by increase the opportunities for
their trade and economic development on a mutually advantageous
basis, to avoid recourse to measures which disrupt world
commerce, reduce productive employment or retaronodi ecmc
progress.
_- |
GATT Library | sq754nq1329 | Report of the Drafting Committee of the Preparatory Committee of United Nations Conference on Trade and Employment | United Nations Economic and Social Council, February 19, 1947 | United Nations. Economic and Social Council | 19/02/1947 | official documents | E/PC/T/C.6/95 and E/PC/T/C.6/93-97 | https://exhibits.stanford.edu/gatt/catalog/sq754nq1329 | sq754nq1329_90230167.xml | GATT_151 | 1,022 | 6,995 | United Nations Nations Unies
ECONOMIC CONSEIL E/PC/T/C.6/95
AND ECONOMIQUE 19 February 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
EMPLOYMENT, EFFECTIVE DEMAND AND ECONOMIC ACTIVITY
The text of Chapter III as redrafted by the Drafting Committee
appears in document E/PC/T/C. 6/W.25 and as redrafted by the Legal
Drafting Sub-Committee in document E/PC/T/C.6./W. 73. E/PC/T/C.6/95
Page 2
CHAPTER III
EMPLOYMENT, EFFECTIVE DEMAND AND ECONOMIC ACTIVITY
Article 3
Importance of Employment
1. The Members recognize that the 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 high and steadily rising effective demand for goods and services
is not of domestic concern alone, but is a necessary condition for the
expansion of international trade, for the well-being of other countries,
and. in general for the realization of the purposes of the Organization.
2. Members agree that, while the achievement and. maintenance of effective
demand and employment must depend primarily on domestic measures, such
measures should be assisted by the regular exchange of information and
views among Members and., so far as possible, should be supplemented by
international action sponsored by the Economic and Social Council of the
United Nations and carried out in collaboration with the appropriate
inter-governmetal organizations acting within their respective spheres and
consistently with the terms and purposes of their basic instruments. E/PC/T/C.6/95
Page 3
CHAPTER III
. ..
MENT, EFFECTIVE DEMAND AND ECONOMIC ACTIVITYI"MT
ION A - GENERAL COMMENTS
The text of the Articles hapter Hof was approved with nowith
reservations. It was feht tbat cle of the Chapter drafted draat
Fie 'irst Sossian, referring to development the of National resources
and proiducivity, ought caly to appear in Chapter IV on r inEconomic
lopment. Art Articlwase 5 , therrefoe, remofrom ChapteraIII Ll and
inserted in ChaptVer I rasc Atile 10. With e View to expressing more
adequately the sense of ChapIIIter , the tiwtle as amended to read
loyment, "fEupfctive Demandnd&'conomic Activity"....
SECN B - SPECIFIC COMME
Article 3
., . -,
1. Since Arty cle 3 not onl sct relation tates the direof employment
. to the purpganization,the Ori-a defines the main objectivesin objectives
of employand points out the need for international action in l action in
d points out the need for international
this field, it was felt that the title of the Article should be changed
Organization" toEployment ta th ri;Purosqs.of the Or axization" t
p"ortance of Employmez:t":.
, * 44r . -. -
2. The impotcnbe ofthe ach:evenit ad main+.ei:ce of eful employment
opportunities for thosa able and willing to work ad of a high and steadily
rising dEt.=i for gcrods' zd services was firther..stressed by -adding
phrase "for the well-being of other countries' after the words "expansion
of international trade". - . , ,
3. It was felt that the last sentence Of paregaph I as drafted at the
First Session wa -intended to 'st forth an undertaking, whereas Article 3
otherwi er contained a 1c dgit of pTrinhee LG3 sentence .
..stion w, therefore, deeited fb Arti 3 nd. inserted in -Article 4
r:; <- ;ra:C.ap.,',,,r.f -X:. Page 4
Article, 4
Maintenance o Domestic Employment
1. Each Member shall take action designed to achieve and maintain
full and productive empolyment and high and stable levels of effective demand
wiitn its own jurisdiction through measures appropriate to its, political,
economic and social institutions.
2. Measures to sustain employment and demand shall be consistent with
the other purposes and. provisions of this Charter and in the choice of such
measures each Member shall seek to avoid creating balance-of-payments
diffficulties for other Members.
Article 5
.. . . ,. ,.,;
Fair Labour Standards
Each allMcountries gnizing tmmon t r-mmtries have a con interest in
t~; =aintenance of air labour standards,.related to national productivity,
shal) take fhatever action may be appropriate end feasible to eliminate
sub-stendard conditions of labour in production for export and generally
tin.ghout its jurisdiction.
Artcle
tment in al of Maladjustment i the Balance of Payments
~~~~. . ..
ium Memboraree that, in case of a fundamental Ie-idbi-
persistentarabalace of ayments involving other countries ine'ace-of-
maintaining employment,ies, wthem in =.-tainLng employment,
; , - - ~. . ,- ;
vill make their full contribution to action designed to correct the
maladjustment .
Article 7
Safeguards for embers Subject to External Deflationary Pressure
ons (r~ iz iat shallregaxd, in the exercise of its: tion
mbers to take actionin tfirs Cb er, tot-i neea of Members to. take action
wit in the csovisions of this Charter to safeguard their.economies against
deW3'atiomarypressure in the event of a serious or abrupt decline in the
eff activ demand of other countries. E/PC/T/C. 6/95
Page 5
Article 4
As explained above, the last-sentence of paragraph I of Article 3
of the former text was incorporated as paragraph 2 of Article 4. In
addition to some minor drafting changes in this Article, .the words
"other countries" in paragraph 2 were replaced by "other Members".
Article 5
It was suggested that a reference to the Internatiornal labour
Organization, whose functions include the problem of maintaining fair
labour standards, should be inserted in this Article. However, on the
understanding that the main work in this fiold should be carried out by
the International Labour Organization and that, most Members being also
members of the referred Organization they would normally co-operate closely
with it in giving effect to the undertaking set forth in Article 5, it
was agreed that such a reference was superfluous. Page 6
Article 8
Consultation and Exchange of Information on Matters Relating
to Employment *e* ofy e lnoml s ';ter Reaj
e or embers 9 psmirafe in merr ade ox spons
the Economic ans, ocial Cnunci: ogementsited Nationi, -includixg arranzents
organizations:0"intei-governmental'org.nizations:
(a) for th& systematic collection, analysis and exchange of
information on domestic employment problems, trends and policies,
including as far,&s possible information relating to national income,
demand and the balance of payments; and
(b) fcr consultation with a view to concerted action on the part
of governments and inter-Colernmental organizations in the fie.d
of employment policle-' :
- ~ ~ ~ ~ . |
GATT Library | sz603mj8315 | Report of the Drafting Group on Article 4 | United Nations Conference on Trade and Employment, December 13, 1947 | First Committee: Employment and Economic Activity and Sub-Committee A | 13/12/1947 | official documents | E/CONF.2/C.1/A/W.1, E/CONF.2/C.1/A/W.1, and C.1/C/W.1-11 | https://exhibits.stanford.edu/gatt/catalog/sz603mj8315 | sz603mj8315_90180287.xml | GATT_151 | 3,590 | 23,069 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.1/A/W.1
CONFERENCE CONFERENCE 13 December 1947
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
SUB-COMMITTEE A OF THE FIRST COMMITTEE
Report of the Drafting Group on Article 4
The representatives of Mexico, the Union of South Africa, and the
United States of America, constituting the Drafting Group appointed at the
third meeting, along with the Chairman of Sub-Committee A, met at 4.00 p.m.,
13 December 1947 and agreed unanimously to recommend for the consideration
of Sub-Committee A the following text for the article on "Fair Labour
Standards":
"1. The Members recognize that measures relating to employment
must take fully into account the rights of workers under international
declarations, conventions and agreements. They recognize that all
countries have a common interest in the achievement and maintenance of
fair labour standards related to productivity, and hence in the
improvement of wages and working conditions as advances in productivity
may permit. The Members recognize that unfair labour conditions in
production for export create difficulties in international trade,
and, accordingly, each Member shall take whatever action may be
appropriate and feasible to eliminate such conditions.
"2. Members which are also members of the International Labour
Organization shall co-operate with that organization in giving effect
to this undertaking.
"3. The International Labour Organization shall be consulted in
all matters relating to labour standards that may be referred to
the Executive Board or to the Conference in accordance with the
provisions of Article 90." 2. Dizeuvln of the subject c w.-t1' of rStz(!C, . 9 :/^9¢lu
The various proposed Z w~ "StZRz' rar-or_ prooH r-t, l'; u_~ fu* voig m a iton
pointe of.,tec.
(a) Oru wa.ges.4 and .;Vts '?. .4iiwtitlc.S%'So Ut lw U>
:~~~~.h Argetne cm U.. wkoul tS:oiZZ1111 4.;3 in' tha 3zhalhtx
*~~~rfrao tovtaa wel c$9 ati co,;o !Lions Q Tk text
~aswt' *would] also refer specifically to living and working
(b) Should dtihf t be tW ti;:n 09 a2u:tlO= fc01' uni.-ze specifically?
t ,<fl) _1_ t >¢- ! t. .;. i. t -,,,_,,v
// mlamm yJVSAdwor:3t ry A i ;iZon l i .9>>t
;~~~~n tb US, ost I&Somis lv, wpzI la to'i*
*~ ~~~epr in mow,
4 .*;t () .-2ofltthav2 U a r'efar'icca to th l-;:!aYlu 02 lubmarstuadar5 adL uo 0
s * .- - e smmmt or ralluZ Of Icou ccdt~ion3 or fst~n es
\~~d ,u sct) oief a ctm cu be Ztua txtEi &lainate vqb-vtmnfYd
; 1~~an :raelu to el b m i . 111. a.w,&umwt Cet v*ILU way
*r' ~~"Whmll tw gwlorn0 to ellgi all
~~~~~Mnes *a r/=rdt iong;taaotmo M
i~~~e . ;, Cu,-m 2es to rryida atabliOty cj-& w;rITL sOr
*w~ ~~i am Pv,-I Z! rlivxi e.tv '' hLppre
;;~ ~ ~~~t -Art X U 2 vlati t$1o Ipotian~ The Chm 5 of th
< 2iZ ~~Coattee bwazzpa thiai; i..kttor to SubCmtt A for Its"
..~ ~ ~~ juc I*n amr for theT Wd -- -wi oame
t t e X~7N-& at amwiv .
S~~~n - XIG m11ltewtdouaOt tNMu appasr XtoZ1 to avi
ds-~ ~ th export* or awther asib2!* -
' f\ 8 ' .to reecuent 16 &o l, .*I be to.:
i~ ~~ta -to , s a t [f sfta eq^tu mevaal toe mutr te ft
Q~~~f X Z ur otiti attrblmtae to aC-xt&u Ubw emdtl
- \ (s) -~~~am far t!irealmto ,Ir bum .
X\IVPrvilm Ic V lulout in the Amnm to lIUOG 1
5'.~~t tk U R.S. an toqu*~ 2 Haiti n YA=Ico.
' * ; /(a3 i]:o~~~~~~V U.t3
-. 4
I k (k) Should there be provision W\ be L> C?o
(i) What should be the division of function between the ITO and the nO?
Thepssai t tv e~1iR or &u n i
~~~~~~~~~~~~~To v,41 an j3S7
Mabo" of e 3D to to co-ope-rto ;,ith to Th in ear*US out the
p1oviu1m. of tbin Article.
CvyIm, 8omts Afrtas azM CaL1,al biivz otho ec~ lm
conoerA1.0 the divia 0 o. t
J)~~alsa to uXd In th ArtilYc cri CXaz -t63 to aewa
couter setion fis n~e to e~it .; :Bin3!21 o0 3t b ?'
-r to c*=t.r &-a aczt tt effet I
(see the new paragraph proposed by the delegation of Mexico). This
point may be regarded as related to point (4 above.
These points night be d4imaua~ epmztely In the .i~si' Indlosted above,
or, a8coeay, the eamftt tb Ivee -ifght be Ui cwd in the order in
*ti thev apse=irn 2 E/CONF.2/C.1/7, or thirdly, they uldht ba iiuew
on the basis of a single draft.
/-' G-f '-~~~~
c a~~~~~~~ SUB-COMMITTEE "A" OF CQ :Xr-i"& T
MEETING HELD AT CAPITOLIO, HAVANA, COMMITTEE
ROOM "K", AT 4.00 P.M. ON 9 DECEMBER, 1947
1. It was agreed that records of meetings of the sub-committee should be
limited. to the conclusions reached, di, caa&t!- from decisions taken, and such
of the reacm as were necessary to explain the basis of the decision.
2. It was agreed to use, the Agenda prepared by the Secretariat as the basis
for discussion.
3. After some discussion of points (ai) and (i) final decision was deferred,
particularly as it was felt that the representative of Coylon should be present
at the discussion of point (1), and the discussion proceod on points (b) to
(d) of the Agenda.
4 On point (b) the Delegte of Mexico having withdraw the words "for
export" included in the Mexican aenolndm.e.nt (11/add.31), it was agreed to
delete the reference to "'production for export" from the Article.
5. On point (c) It was agreed to include the notice of 'thi raising of
labour standards" without, however, determining whether it should appear in
the recognition clause or in the action clasue.
6. On point (d) it was agreed to maintain the present text: . whatever
action may be appropriate and feasible....".
1186 SUB-COMMITTEE A OF FIRST COMMITTEE
Second Meeting, Held in Conference Room K, Capitolio, Havana
at 10.30 a.m., 11 December 1947
1. The Sub-Committee discussed points (f) ard (i) Jointly and reverted
briefly to point (e) of the informal agenda.
2. Concerning the a amendment propccd by Ceylcu undew (i) providing for
annual reports to the Organization on action taken by Members against
sub-standard conditions of labour, it was observed that:
(a) if the reports were to be comprehensIve and genral, they
would duplicate the type of report which the great majority of
Members are already required to supply to the ILO and which,
through the ILO, are already available to all members of the ITO;
(b) if the reports were to cover only action on specific
complaints covering sub-standard labour conditions, auch reports
would in the ordinary course be available to Members of the
Organization - in the some way as reports would be made on
action concerning complaints under other ArtIcles.
Accordingly, the Sub-Committee agreed not to make the suggested amendment.
3. The Sub-Committee considered that, subject to final drafting, the
points raised by the Colombian, Mexican and South African amendments
mentioned under (f) and (i) should be covered by addling at the end of the
sentene begining "Members which are also ..." some such words as
and that Qrganization (the ILO) shall be consulted on all cases
relating to labour standards brought under Article 90".
4. The related Uruguayan amendment mentioned under (f) was held over
for discussion at the following meeting.
5. The Sub-Committee agreed that the deletion of the reference to
"production for export" mentioned under point (e) assumed the retention of
the words "related to productivity".
6. The Argentine representative indicated that as he experienced
difficulty in understanding the discussion when confined to the two
working languages, he must-, %i thont necessarily implying at this stage
any dissent from conclusions reached by the Sub-Committee, reserve the
right of his delegation to reopen any point when the Sub-Committee
reportt to the full Committee.
1235 COMKM.-;1-tWLYMTAND MWOMUC AonZvIT
SUB-CISMs A
~D)MMZ 9MU ni CWMUYM HOW~ r
Capitol, hmna, at J pas., 12 December 1947.
The sub-committee discussed the folloimr points listed in the
informal ecrtariwat nbted;
Point ().
several Members )obum OW89ee4 the vie': that the u4optlo of social
s-cuitY Mae. mm me aaPeot of thw wt'obloei of achivIa large and
eteadly p'wing eftatiw deinnd. Accordingly they felt that the
suggestion by the delegation of the Phillippines was already covered
by the wesent taxt'of the Chapter. It ran &S%4d that the representative
of the Philippines should be consulted before final disposition of this
proposal.
Points if) Gnd.
The reprewvsentite of Coloia ovgseuted that the clause to be added
at the and of the wataioo beglum2I I&Wbere which we also..." should
be a ~ded to rad ... and that orgmUstion (I.L.O.) shall be consulted
on all cases relating to labour standards in production for export brought
under Article 90". The r euitativo of *jziao supportthe co
of a reftcmeo to 9uotitoun for expert".
In ooentotu with the t proposed by the delegation of
Uruguay it was povisanau1y agreed that a change of the charter
vaugted In that e stnt shoul not be made . Several delegations
.u Suted that the points raised by that amendment, so far as they could
be within the Charter, were already covered by the provisions of
.wtiSce FI a3 al t ak of Artilese 40, 89 and 90. The representative
Via;. Musw reserved t~ poaitiun of hib ilatili.
There were unwv-: i U S fw In.3lalin In the -s cogal,
4ana. of the Article Om reference to the fact that the Intent of ths
Ma~nt diret.4 ap t l aoisl d=Ung.SaM rte, 1eta:;
felt that a refersu to wproduotlon for e2orbw a stod above,
would cover the point.
The representative of New Zeland suggested that the Sted. that theat4Wtij <o
tb r*Ie jmigbt be d l11e If it ve r ised. t1 -ead.:
R - 4 _ > s -2-
'%h Member mtcilaa that, I.= tia rmidames of 1n3M to
Memberr comtriea by tbh axiotezea Su othar Kamb5ru' teiritoira
of udkir oeAitims ot labor, aLU eoawtrbi hawe a : Interest
in the =siDig of vwa auz.a e iva~lwa1t Zoxw of renw~ tii OA and in
the Mmut of oking s ditti-i gweaIIly. Accordingly, each
Member shall ehal tab ubatever action x bae feaeible...".
After emeiderable dimuwuaim it va ag~reed tb&et the properstion of
a text for consideration by the iub-ca-Ittee ebould bi t by a
milar drmttingrpoop, an, In gieri1, twre tau &Ceewmt that in its
work the drafting group might xceri that:
(a) The I. T. O. should make was of the fb 21itze and esperimice of
th I.L.O. ea&dsbould not itseif Iitrie nseeawri17 Into the fele
of 3ao problem;
(b) The Article should be emfizioa to labxur cnitioe affecting
International trade;
(c) amb taking of comtor-tct in respect of any labour condition
eomim within the Artilae and czzLiai injtry to a Haubor sbould be subject
to the appval of the Organization;
(d) fth- pmeadwe for denlim vith my remeeentatioa should be
Ths uib-.omittee reaahe& no definite ao~mian~i cconn h
lropowed leLwmiru of z~famwmea to 'nondiawr~iNstiam" ud to aym
laborn9'. It vam ,-. 1'3 v'ted that in aw ide-riz6 thwe. mattarm the draftin
Svoup should take s-coowt Of the diUferenee of Opidani ezaingla in the
sub-committeee and if unabel, to prepare a single draft, night submit
alternative drafts for consideration by the sub-committee.
The CHAIRMAN indicated that the drafting group, which was requested
.to prepare a draft of the enire Article, vl4 =ceist of the
".yPMsnt~tat1eu9 On the eub-.o3uittee of MIloi, the Uniocm of South Africa
and the United States of America and that they vuM~3 eat at pu.
December 13. SUB-COMMITTEE A OF FIRST COMMITTEE
TO: Members of the Sub-Commiottee
FROM: The Secretariat
Attached is a draft prepared by the Scretarlat of the report to be
made by the Sub-committee to the First Committee. In this draft no attempt
has been made to repot the diisosicc in detail since the trend of the
discussion is already apparent from the text proposed.
As agreed at yesterday's meeting of the Sub-committee, any members who
have any corrections to make in this report should cm=nicmto then by
6.00 p.m. today (Tuesday, 16 December) to A. E. Eitebie, Roaa 2-7, telephone
'to sen 252. If no substatial chlatgoo esx eguosted the text will be
submitted immediately after 6.00 p.m. tonight for issual e tomorrow morning
as a formal document for general distribution in, order that it may be
disoussed on Thursday or Friday in the First Committee.
1500 -2-
rtST CONCI(TE: Lk';;it AIM =UMiO(C ACTV12Y
ROW Q? StB-C=TTn-2 A - *ri' IOGU STAMUDSM"
I. At tbb sizth meeting of the Firiab Ctte, R DOOOMber 1947, the
Chsairmn appointed a Sub-occidttee which aso iritructed to exdne the
text of Article J with tho nev propcnalo w3olzting to the subject matter
thereof and to prsro a text fw ubmissica to the Pall Oaittee (see
Z/sOi.2C.j/8 vith Add.l).
-L. RiopreeontatiTou of the follwiig ezl- tiots wore appointed . ors
of the Sub-ca=Ittees Ar&actina, Glcr-, C;a, Co aibla, Cuba,
CzchoslovakU, Derrk,. X-Aio3o, MothorlXds, New Zea3=d, Tarkcq, Umica
of Soath Africa, Thzitoi States of Amovica and tfreay.
J3 &. D. K. Lr (China) aertred aa Cbaiin of the Sub-camitteo.
The oe3resenativoG aO the Ooleti" cf tho PhiiPPines and Of Haiti
atteidod the zeetIngs of the Sub.-c-nttoauhen yropoua a originating with
those delogatins were under dicw-zicn. The Sub-cn.ttee also, bad the
benefit of wept advice fra the rexrs;en;ative of the Intornotica. Iabase
4,After a dlwiu elc of tho points of pubetete in tho Sub-ccmmittee a
Umftlng WUoo 'n cznstituted, cpr1esit reelozatatives cf the deleoaticans
f llao, the MioxI of Southi Africa wnI th Unitod States of Aoarica.l The
tezt prepared by this Drafting Grop uas oubsoquantly cosidered modified
by the fizl Sub-ecomittee.
n6 I thl coruo of Its' deliberations the Siib-ccmsttao esdned the
TZOPONRU aNpWi9Ing thO t Ohe lwiz docum=t:
- jk?.24/JAd3 (Argentina)
4W. 2/12/Ad/.4 (Peru)
3/COW.2/.L/Ad&.23 (Durni)
3/bW.2/l/Add.28 (Mexco)
N/CCk 2/1/Add'33l (Xsxico)
*ACV.2/U/A.33 CeYlca)
FtCM.2/C.1/3/Ad4.1 (tg)
-EkCt 2/0 -S31Mi.2. tig)
X . C ,M2/C:j/3.Ad.3 (Wtma a Soth Africa)
3/f;IW.2j/.1/3/A4d.4 (Philipples)
j tOV2 t./3/ 31CabI
7, tiM~ltica, a so ae h tho procdI etab*nlshed
XAMr.2eIt.IA/AdLl, and in a greenmt vith the delegetit of Mexico, the
Cba Sa -oaittees A and B agreed that the proposal by the
*legetien ct eco for a proviso to paragr-ph 1 (b) cf Article 6
(]J4COI.2/l/A&.31) shuld be ccmiderea by Sub-omnittee A athor than'
/Svb-ccaIttoe B -3-
Sub-commttee B to which it had been referred originally. Accordingly,
account la beoen taken of that propoeal In rodrafting Article 4.
g. M. Sub-committee held four iseeting adid reahod agreeoat on the
aecsapuying text. The representative of the deleogation of Argotim
indicated tbht while he was prepared proarisilly to agree with the text
produced by the Sub-committee, it might be necessary for his dalegatiora,
ateor It had had an opportunity to o=Ine a Sp~weh t7eaelaticm of the
text, to express certain views concerning that text in the full Committee.
The representative of the dlegmtica of a lxoo indicated that his delegation
might wish to c¢sat In the full Committee on the relation between the
present proposedd text and the aumdwnt put forward by that delegation
earlier for a provision relating to nc-discrininatory treatment of labour.
he discussions in the Sub-committee were characterized throughout by a
Wzit at .acaclliaticu andcoc-operation cm the part of all delegations
participating. The members of the Sub-committee desire to record their
special agpeiatica of the manner in which the Chairman cated the
* : C; the viw o the Sub-committee the text which it is roe u for
:cuodezratic and approval by the full Committee is in most respects
self-xplaatorf. Accordingly in this report the Sub-committee is co gial
its remarks largely to obeervatione concerning the relation between the
premat text and the st which were under consideration.
/o In the drafting of the first sentence of paragraph 1 the Sub-committee
was prcpted by the t Proposed by the delegation of Mexico to the
effect that a reference should be made in the Article to the safegnarding
of the rights aqr babr, those bodied In tl'
-catien '2.ChF' = _M_ T In the use of the
words =Intemstial declaratims" the Szb-camittee had in nind particularly
this D elaration. It Wm felt by the 8b-ommittee that this language
togetherr vith the references elsewhere in the Chapter to "large and
steadily growing....effective demand") also covered the proposl of the
delegation of the Philippines concering the IMortnOe o'f 8social security
since the declaration of Philadelphia stresses the significance of social
security measures. The language of this first sentence was, however, drafted
sufficently broadly to include not only the Philadelphia Declaration but
any other international Instruments whereby rights of workers were established.
// In the second sentence the Sub-committee has incorporated the proposal of
the delegation of Argentina that vages" should be specifically mtioned. -
By its use of the word "improvement" in this sentence the Sub-committee feels
Ab it t hot i -as
:/2a5 t ->v - <{; that it has also embodied the aubtaA, of tha smaneiwnt proposed by the
delegtliam of u±xra.
/2. I the thlrd senitene the S.,Ab- ciittwD lus em&ivyrouroi to take
accomt of nwrous proposal walich we :,-de cacernLIuZ the 'ua previously
of the words "production for export". The present language indicates that
the &c erne with aW =fir lzibcvx cc&it to=l which create
difficulties in international trade.
/3. The Sub-caositteo has not rotaiaecl thaf "thr.3aghot its territory"
which appeared in the text eubmittod th b P rhe Pr&rtor, C c-ittes. The
Suib-caIttee is of the opinicu ihtbt thosc u:crda &' inslall xy since the
sense is cler without the, buit that the qaatrel D. 1ft:.ai Cc MItttee might
ccmsidar frxm a drafting point of Yi6h! 'otLe.l ar na. they should be
retaitad. !w repreontative of tho de1-ttio of Tut8wy indicated that
his doleattA( might find it =00s0srY, dLiriuc, tI-e discuasiQ of this matter
In the First Cazittee to euxGest tbat t VOW Uro 9s
fThe Cresent text of ~xagra:?h 2 is i uSt1 ca.l with t': correspcodin3
the text abt to; by the atory .omnit ve.
/. Via text of the sew pr&Ph 3 wea prefad cu the bLsis of Vsxiau.
.UW~ticas which Vexe xae in tha original =fldwLts cooctaLig the
divisim of funetics betweea the ILD aza the ITO (e.g., tho ueedmatb
proposed by the delegations cf Caylen, Colcribia hnd the Wm -Z south
Africa). In view af the special ofata oi the 1O in the 4a]& at
~,;,abour utda de it vas casiderod dosirabl* to provide in the .ttiole
$5.3f fat oaisul;atSwo be tou the ILO an the ITO. Min Iaz& ph Vag s
.;aiso deip4 to; met the requirmwtv af those countries which ht proposed
Viul frdres for dealing with situatims in which a Xebr, it
oaw to t t industries from the coupetiticn of produota~owoed
*under cqaitimv oft labour (e.g., the amencdnte propose. by the
deleition of Colobia, Xxico ed. The rasent 1= W or Vile -
pa ipha luteded to bring tioaesbip beftwen this JrtialL cdA
the swocedure established in Artie 90 for therefror e at irttera to tsg
in t~he proposed text a*66
: larii has zot been sde for nom-discriineatioa in the treatmet of labour
as 3gpoosed by the' dleations acf 1 co and. Eaiti. Daring the d1sculsicam
of this mttwr in t he uSb-cnittoo note va taken of the vwck being doa cm
this bjmot bW the flOand by such other bodies as the Cciseiea D=
slots en its Sub- adesiaos on the Proveution of Discriminatio and th
/Protection
-4 - -5-
Protection of Minorities. The majority of aore sof tue Sub-cezctteo felt
that the ques'icaouf a- discriInation in respect of the employment of
labour could not be dsalt with appropria.tely or aiaqatao in a charter of
an izxtexzaticnal trade arganizaticu. To thi extent, have*er, that provisicwa
omosraig nu-discriminatory treatment of labour auyy hav. been, or nsy i tne
future be, incorporated in other "intervatIcnal decl.axat ,io ccuvanticas =d
ate to which mrbara mna subscribe the Proawnt laug-da& of the Articl,,
recooise that meawores ro~atisn to esloyxnabt must take ;u12y into acoomut
any msh provisions.
LocatIcu of the Article
7). he ftb-cmnttee hs learned that Sub-caagittee J3 of t-, Fixst Caitteo
Propoieu a re-arracgemet of tho Articloc in tLhe Chapte. wheroby the Article
cm "Pair Labour StAndarda" voul.l be resmofvd frce its we ent positici boetv6en
two Articles ca !aceof-pay =taq qzoaticus to a poaiti: at the and of the
Chapter in ordar to secure ccntinmity $x' thio 'orisicina r tb to bales
of parents. The Sub-ccamttoo agreea with the wggestin :.et for this
reason the Article cm fair laboux st adardo ahould appear at F-h* end cf
Chapter II.
/ARTICLE - -6-
Article-
Fair Labour Standarde
1. The Members recognize that =ISuro roleting to mployawat mist tak
fr23w 1at acoumt the rights ° vork^;zdwr iaterrattloml duclawaticns,
owV.atilt 8W TEa~bnto. Thcq rocc~i~iz tmst all ooutrida bave a
acma luterejt la tba achbove=Wt and ;,sintanace of rfair lbour standard
rotated to Sy.odativity, wa4 bamo i t2 Lzrovramt at vc u wM working
gj-iatiams ue advams ift prodctivIty "y ]?r-imt. 'ohe sembere recogize
tbat unaixr labo" oaidtiona, p.rtlculy ir.n produatice- tar oexcrt, create
dilIomaeies lu iaternatimal tradb, =;i, a;cox&izJ, aeoh lbabew.asall
-toa vbatever sat±i ao m ba aproprIatce and Etzoible to olizinato soh
on4itims.
2. )wbeoro vhich are also 3 rema of the iatornatlcml Labour Cruazatice
Oballt 00-opomte witt that orSnizmticn im 2±friZ effort to this 1dertaking.
3. 2he IntezmAticzal Labour Oripiticatico elll be ciwlted in all matters
relating to labour staz3dards that ray zyo refrefo:d to tho 3macxtivo Board cr
to the caiforeae io awoordar.i -ith the provisions at Article 90. |
GATT Library | fg116wj2068 | Report of the First Session of the Preparatory Committee of the United Nations Conference on Trade and Employment | [ca. 1947 - 1994] | NaT | official documents | E/PC/T/33 and E/PC/T/30-33 | https://exhibits.stanford.edu/gatt/catalog/fg116wj2068 | fg116wj2068_92290037.xml | GATT_151 | 81,039 | 531,360 | REPORT
OF THE FIRST SESSION
OF THE PREPARATORY COMMITTEE
OF THE
UNITED NATIONS CONFERENCE
ON TRADE AND EMPLOYMENT TABLE OF CONTENTS NTS TS7-'--- -'
Page
PART I
INTRODUCTION .. .. .. .. .. .. .. .. .. .. .. .... 3
PART II
CHAPTER I.-Achievement and Maintenance of Hlgh and Steadily Rising Levels of Effective
Demand, Employment and Economic Actlvlty.. ...... .... 4
SECTION A.-Relation ai Emplayment to the Purposea, of the Organisation....... .. 4
SECTION B.-The Maintenance of Domestic Employment.... . .. .. . .. 4
SECTION C.-The Development of Domestic Resourres and Productivity...... .... 4
SECTION D.-Fair Labour Standard .... .. .. .. .. .. .. .... 4
SECTION E.-The Removal ai Maladjustmnents ln the Bàalance oi Payments..... .... 5
SECTIoN F.-Safeguards for Cauntries Subject ta External Deflatlonary Pressure .. ......
SECTION G.-Internatlanal Action ta Maintain Emplayment .. . .. .. .. .. .. 5
SECTION H.-The Punctious ai the Ecanamnic and Sacial Council and the Speclalled Agencles ..... 6
SECTION 1,-The Faroi ai the Emplayment Provisions... ........ .... 6
CHAPTER 11.-Industrlal Development . . . . . . . . ... 6
SECTION A.-Develapment ai Econamlc Resaurces.. .. .. .......... 6
SECTION B.-Adaptation ai Ecanamies.. .. .. ....u. . . . .. 7
SECTION C.-Conditions ai Industrial Developmnent.. ........... 7
SECTION D.-Provaiain ai Capital ..... .. .. .. .. . .. : : 7
SECTION E.-Supplles . .. .. .. .. .. . ........... 7
SECTION F.-Technology and Training .. .. .. ................ . 7
SECTION G.-:-Mutual Respansibilities . . . . . .
SECTION H.-Markets and Protection .. . .. .. .. .. .. .. ..
SECTION 1.-Nature ai Protectian... .. .. .. ............ 8
SECTION J.-Allacation ai Functians.. .............8
CHAPTER 11L-OGeneral Coimmercial Policy ... .. .. .. ..g. . .
SECTION A.-General Maat-Favoured-Natlon Treatment, Tarifse and Tariff Prelerences, etc.g..
SECTION B.--General Commercial Provisions exceptt Most-Favoured-Natian Treatment)-Exceptlons. xi
SECTION C.-.-qualltitatlve Reatrictions and Exchange Contrai..n. .. .. .
SECTION.D.-Subsldies .. .... .. .. ....... .. .. .. r6
SECTION E.-State Trading ..... .. ..à. . . ... .. 17
SacriaN F.-Relatlona writh Nan-Members .... ........ .....15s
CHAPTER IV_-~Restrlctlve Business Practices... ........ 18
SECTION A.-Palcy'Tawards Restrictive Buainess Practices ... ......... ....
SECTION B.-Procedure with Respect ta, Complaints and Conferences ...... ....I
SECTION C.-Studles Relating ta, Restrctive Business Practices ... ... .. .... ... 18
SEcTION D.-Obligatians ai Membera . . . . . . . . . .. 18
SECotIO E.-Supplementary Eniarcement Arrangements . . . . . . .. 19
SECTION F.--Contlnued Effectiveness ai Domestic Measures against Restrictive Business Practices .. 9z
SECTIaN G.-Exceptlons ta the Provisions ai this Chapter ..9
SECTION H.--General Observations .. .. .. .. 199
CRAPIEER V.-Inter-governnientel CoammodIty Arrangements ... ....g. ..
SECTION A.-General Consideratians .. . . .. ..g. .. .. ..1
SECTION B.-Inter-gaverinmental Commnadlty Arrangements ln General ........19
SECTION C.-Intcr-gavernmental Commaodity Arrangements Involving the Regulatian ai Productian,
Expert, Importor Pricea.la. .. .. .. . . .. .. 2
SECTION D.-MlsceUianeous Provislans..... .. .... . . . ix
SDHAPTER VI.-Estabilshment of an International Trade Organlzatlon......... .. 22
SECTION A.-General Observations .. . ........ ..... 22
SECTION B.-Puwases ai the Organizatian... ..22
SECTION C.-Menibership and Functians...22
SECTION D.-The Canference .. .... .. .. .. .. .. .. 2
SECTION E.-Votlng and Executive Board Membership... ........ .. .. 22
SECTION F.-The Executive Board-Procedure. Powers and Duties......... .. 23
SECTION G.-The Commissons .. .. .. .. .. .. ... .. .. ..2
SECTION H.-Tbe Secretariat .. .. .. .. .. .. ... ..... .. 25
SECTION L.--Mvseflaneous Provisions......... .... ....... 23
APPENDIX
Charter ai the Internztianal Trade Organizatinn ai the United Nations ....... .. .. 27
Annexure ta, the Charter... .. .. .. .. .. .. .. .. .. .. 42
ANNEXlURUS
z. Resalutian, ai tiho Ecanamic mand Social Council Regardlng thes CaUIing ai AU International Conferenceoan
Trade and Einployxnent.42...... .. . . . .
2. List af Delegates ta, the Preparatory Committea. ai Repreentatives ai Members ai the nted Nations
not inembers af the Preparâtory Committe. and ai Inter-governmnental and Non-gavernmoental
Organis;ations ........... .. . .... .. ..... 42
3. Agenda ai the Pr paratory Comamittes... .. .. ...... .. .. 44
4. Rules ofPrccra *'... .... ...... ........... 45
5. Resolution Concernlng the Second Session ai the Preparatory Commlttee .... .. .. .. 47
6. Resolution flegardlng the Appointment af a Draiting Cammittees . . ........4 7
7. Resolution Regardlng thes Negotiation ai a Multilaternd Trade Agreement Embodylng Tarif! Concessions 47
S. Resolution. Regarding Industrial Development .... ......... 48
g. Reowlution Relatlng to Inter-governmnental Consltation and Action on C~nommdt'y Problemns Prior ta
thLe Establishument ai thes International Trade Organization. . ...... 48
Io. Multilateral Trade Agreement Negotiatlons-Procedures for Givlng Effect to Certain Provisions ai theo
Charter ai the International Tradte Organization by Means ai a General Agrement on Tarif and Trade
Among the Members of the Preparatory Committos. .. ...... .... ..~ 48
II. Unite States Draft Charter... .. .. .. .. .. .. .. .. .. .. 52 REPORT OF THE FIRST SESSION OF THE PREPARATORY
COMMITTEE OF THE UNITED NATIONS CONFERENCE
ON TRADE AND EMPLOYMENT
PART I
INTRODUCTION
I. At its First Session, held in London in February,
1946, the Economic and Social Council, on the motion of
the representative of the United States of America,
adopted a Resolution constituting the Preparatory Com-
mittee of the International Conference on Trade and
Employment. The Resolution, after stating that the
Council considered it essential that the co-operative
economic measures already taken be supplemented by
further international measures dealing directly with trade
barriers and discriminations which stood in the way of
an extension of multilateral trade and by an undertaking
on the part of nations to seek full employment, called an
International Conference on Trade and Employment for
the purpose of promoting the expansion and production,
exchange and consumption of goods. The Resolution cn-
trusted to the Preparatory Committee the task of
elaborating an annotated draft agenda, including a draft
convention for consideration by the Conference, and sug-
gested certain topics to be included in the agenda of the
Preparatory Committee.
2. At the Second Session of the Economic and Social
Council held in New York the Secretary-Generai of the
United Nations announced on 31 May, 1946, that arrange-
ments were being made for the Preparatory Committee to
meet in London on 15 October.
3. The First Session of the Committee convened in
Church House, Dean's Yard, London, on 15 October, 1946,
and concluded on 26 November, 1946. Notifications of
the convening of the Preparatory Committee had been
sent by the Secretary-General to its eighteen members and
ail members, except U.o Union of Soviet Socialist Republics,
signified their intention of attending. The Union of Soviet
Socialist Republics felt unable to participate in the work
of the Committee at this stage as it had not at that time
found it possible to devote sufficient preliminary study
to the serious and far-reaching questions which were the
subject of the Committee's discussions.
4. Certain Members of the United Nations, which are
not members of the Preparatory Committee, sent official
representatives to observe the proceedings of the First
Session Represontatives of certain inter-governmental
organizations attended the First Session and participated
in proceedings. t Some non-governmental organizations
also sent representatives to the First Session and these
representatives gave the Preparatory Committee the benefit
of these organizations' views on certain questions.:
5. Before attempting to outline the work accomplished
at the First Session, it is desirable to emphasise that this
is a " preparatory " committee the task of which is to
prepare an annotated agenda for an international con-
ference and that it is only at the final stage, that is at
the Conference, that governments will enter upon binding
commitments. However it is clear that a thorough dis-
cussion by the officials of a large number of the world's
principal trading nation in advance of the Conference will
greatly facilitate the work of the Conference itself. This
conception of the task of the Preparatory Committee is
essential for a full understanding of the nature and signifi-
cance of the Report which follows.
6. The early meetings of the Preparatory Committee
were devoted to a general consideration of the agenda and
of the organisation and conduct of the Committee's busi-
ness. The discussion of the agenda resulted in the addition
to it of first, the question of an international agreement
relating to industrial development and second, the
question of the inclusion in an appropriate international
agreement of an undertaking to promote high and
steadily rising levels of effective demand. At a
* These countries were :.-Colombia, Denmark, Poland, Peru,
Mexico and Syria.
t The organizations were:-the Food and Agriculture Organ-
ition, the International Bank for Reconstruction and Develop-
ment, the International Labour Office and the International
Monetary Fund.
t The organizations were:-the International Chamber of
Commerce, the International Co-operative Alliance, the World
Federation of Trade Unions, and the American Federation of
Labour:
56308
later stage in the work of the First Session, certain delegates
expressed the view that questions relating to services, in
addition to those relating to goods, should be discussed.
However other delegates were doubtful whether the terms
of reference of the Preparatory Committee would permit
such discussion.
7. The Committee decided that the detailed examination
of the varied items of the agenda should be ent.-usted to
a number of working committees, which are described
below, and that the. work of theso committees wuuld be
facilitated if their proceedings were tonductod in private.
On thU other hand, the Commiteo was anxious that puLlic
opinion should bo kept fully informed through thc press
and the Secretariat was, therefore, directed to make
arrangements for frequent press conferences and eventually
to publish this Report of proceedings.
8. The following working committees were established
by thU Preparatory Committee:
Committee 1: Employment and Economic Activity.
Commnites Il: General Commercial Policy.
Commit.c III: Restrictive Business Practices.
Committee IV: Inter-governmental Commodity Ar-
rangements.
Committue V: Administration and Organitation.
A sixth committee, thU Joint Committeo on Industrial
Development, was established following a joint meeting
of Committees I and II. In addition to theUs working
committees an informal committee of heads of delegations
mnet from tUme to time during the First Session and pro-
vided tic general ulidance and steering required for thU
efficie:,t conduct of the Committoe's business.
9. nIe officials of thU Preparatory Committec at its
First Session werc:
Chairman: M. Max Suetens (Belgium/Luxembourg).
Firsi Vice-Chairman: M. Z. Augenthaler (Czecho-
alovakia).
Second Vice-Chairman: H. E. Sefior Alberto Inocente
Alvarez (Cuba).
Committee I
Chairman: H. E. Dr. Wunsz King (China)
Vice-Chairman: Mr. S. D. Pierce (Canada).
Committed Il
Chairman: Dr. H. C. Coombs (Australia).
Vice-Chairman: Dr. A. B. Speekenbrink (Nether-
lands).
Joint Committea on Industrial Developfnmt--
Chairman: Mr. H. S. Malilcr (India).
Vice-Chairman: H. E. Dr. Wunsz King (China).
Vice-Chairman: Dr. H. C. Coombs (Australia).
Committee fIIl
Chairman: M. Pierre Dieterlen (France).
Vice-Chairman: Senor don Higinio Gonzélez (Chille).
Committée IV
Chairman: Mr. J. R. C. Helmore (U.K.).
Vice-Chairman: Mr. Melander (Norway).
Committee V
Chairman: Ur. Ly mn R. Ed sister (U.S.)
Vice-Chairman: henbor Helio de Burgos Cabal
(Brasil),,; . ,
IO. Tie various working committees gave detalld
consideration to the appropriate sections of thi agenda,
using as a basic document thU draft Charter for an Inter-
national Trade Organization submitted by thc delegation
oi the United States, together with documents submitted
by other delegations including, inter alla, a Draft Charter
submitted by thc delegation of Brazil, a detailed com-
mentary on tic United Statesj>$oppeals submitted by
Uic delegation of India, a memorandum on employment
policy submitted by Uc delegation cf' thU United
Kingdom and other documents. : A Ix. There einsued in the CosTuilsittecs au extensive
discussion of the viewpoints oi thse dillerent delegations
and an atteirpt wtW made to arrive ut n statement of
the points on which a general identity oa view could bc
reached. Were difleresîces of views could not bc re-
conciled, the Committees contented themselves with a
statelnent of the different viewpoints advanced. Tihe
Committees also esduavoured so far as possible to prepare
dralt text for a Charter ci or Articles of Agteement for
anu International Trade Organization, giving expression ta
the principles upon whlici a brord Identity oa view had
been reached. Part 1I of tisis Report, therefore, contains
a record ai the discussions in the working committees and
In an Appendix there appear the texte whicb resulted
from these discussions. These texts are included ir. the
Appendix as they do not form an Integral part of this
Report but a'e rather in the nature of a working docu-
ment of the Preparatory Committee which will receive
further effiting, first by a Draiting Comirsittee, which is to
mest in New York in January, and î.gain at the Second
Session of the Preparatory Conmmitteè which is at present
planned to take place in Geneva beginning on 8 April 1947.
4
i2, Reviewing the work of the First Session, it may bo
justly Uaimed that good prugress was been made. The
work wln bo carried forward and, it lu bopud, completed
at the Second Session in April 1947 whlci; will also
include multilateral negotiations between tie members
of the Preparatory Committee directed towards the reduc-
tion of tariffs and the elimination of preferences.* In
order to prepare the way for tbese tariff discussions the
Preparatory Committee elaborated a document on pro-
cedures.t It la boped that witn the completion of the
tasi ai to e Preparatory Committeo at its Second Session,
the stage will have been set for the International
Conference lu the autumn of 1947.
13. In concluding this Introductioa to the Report It li
desired first, to place on record the appreciation of tie
Preparatory Committec for the cordial welcome afforded
to it by If.M. Government li the United Kingdom, and
second, to recognize tho great contribution to the Prepara-
tory Committee oi the expensive and careful work wshlch the
experts of the United States had done and whicb wae
enibodied in the drait Charter for an International Trade
Organization.
PART Il
CHAPTER I
Achievement and Maintenance of High ani Steadlly RIslng Levels of . . .
Luective e>emand, Lmployrnent and Economic Actlvity
scTION A
Tsha Relation o! Emp.oyrnmnt to the Purposes of the
Organization
i. In order ta maintain international trade at bigh and
stable level, it i necessary to maintain a bigb and stable
level of demand for goods and services througliout the
world as well as to achieve a reduction in trade barriers.
At the same time full and productive employment and
the maintenance of bigh and stable levels of effective
demand cannot make their maximum contributions ta
raising standards of living without the reduction of
harmful trade barriers.
z. It is a main purpose of the United Nations, recog-
nised in Article 55 of the Charter of the United Nations,
ta promote " higher standards of living, full employ-
ment, and conditions of economic and social progress and
development." Some discussion took place as to the
meaning to bc attached to the phrase " full employment."
Tn the less industrialized countries whose economies are
more assentially based on primary production, a defi-
cient demand shows itself not sw much in mass unemploy-
ment (thse common form in industrialized countries), as
in under-employment or unprofitable employment among
their primary producers. For this reason the main objec-
tives of employment policy were defined to include the
avoidance of under-employment as well as of unemploy-
ment.
3. It was pointed out that if the phrase " full employ-
ment " were to b. interpreted in the literal sense, namely
that no one able and willing to work should ever be
unemployed for however short a period, governments
might be seld to be committed to types of action which
they would not in fact bé prepared to carry out. It should,
of course, bc open to any government to adopt as strict an
interpretation as it desires, but for the present purpose
it seems appropriate to interret " ful employment" as
a condition in which u employment opportunities
are available to ail those able and willing to work. It
is the maintenance of such a condition and of the high
and stable level of demand associated with it which is
of real concern from the international point of view.
-SECtON U
The Maintenansc of Domestit,-Employment
Tie Preparatory Committee considers that govern-
ments owe a responisibility not only ta their own citizens
but also to the citizens of other counties ta do all that
is within their power tu maintain full and productive
employment and hisg and stable levels of demand within
their own territories. A decline of demand in an important
country, by roducing ite imported from other countries or
by causing a burdensome surplus in world markets of
commodities, which it was previously producing for is
own consumption, in liable to lead to the spread of unem-
ptoyment or under-employment outside its borders. For
this reason governments should agree ta take action doe
signed to achieve and maintain full and productive employ-
ment of their domestic labour 'tnd high and stable levie
of effective domestic demand. 'The type of measure which
might bc taken for this purpose should, of course, bo loit
to the individual decisions of the governments concerned,
which must bh freo ta choose the measure which are appro.
priate to their own domestic institutions. This choice
should bu unfettered, although, of course, it is recognized
that the measures chosen should bc compatible with the
other purposes and provisions of the Charter of the Inter-
national rrade Organization.
sEotION C
The Development of Domestic Resources and Productivity
Fuli employment of labour in any country be not the
sole condition which, in addition' to other actors sucbi as
the level of trade barriers, determines the level ai effective
demand on the part of that country for the products of
other countries. A country, which fail4 ta develop its
resources effectively or wh ch faibe to take every oppor-
tuaity to raise the productivity of its labour, will, in effect,
bo failing to expand ta the maximum its effective demand
for gods and services. Accordingly aill governments
should recognize that they bave a common interest ln the
productive use of the world's resources,'and shouId agiee
to take action designed progrossively to develop thelr
economic resources and to rals their standards of pro-
ductivity. Here again the choice of measures should be
left ta tue government of coach individual country, pro-
vided that the measures chosen are compatible with the
other purposes and provisions of the Charter of the Inter-
national Trade Organization.
SECTION D O .
Fair Labour Standas's ;
z. It is considered that if full employmnent ls;ta make
its due contribution ta the higher. standards of living and
conditions of oconomic and social progress to which
Article 55 of the Charter of thi United Nations refers, it
is necessary that a fair share of the product should accrue
to the workers. Ail countries have a co:m on interest in
thie maintenance of fair labour standards, particulsrlj in
the case of production for expert, sinco otherwise aon
country's products may be undercut by than oa another
la which labour is unfairly exploited. Labour standards
cannot, of course, bo uniform in anl countries, but must
bc related ta national productivity. But there was wide
support for the view that governments should agre. to
take whatever action mligbt be appropriate and feaibloeto
eliminate sub-standard conditions of labour ia tiseir'pro-
duction for export and generally lraughout their
economies.
' Seo Annexure 7.
t Ses Annexure se. 2. A few delegates expressed some doubt whether an
agreement on this subject should be included in employ-
ment provisions. These doubt were based on two
grounds:
(a) It would be wrong to attempt to set too high a
standard in certain countries, mince this would seriously
handicap the expansion of production in these countries
which having plentiful supplies of labour but relatively
little capital equipment or industrial skill, must for a
time base their development on lower remuneration than
that in more developed countries.
(b) Since the International Labour Organization is the
specialized agency which has been specifically charged
with this problem, It would lead to a duplication of
functions to include an agreement on this subject in the
Charter of the International Trade Organization.
3. On point (a) the Preparatory Committee agreed that,
if any agreement on labour conditions is included in the
employment provisions, it must be made clear that there
cannot be any single comprehensive standard of fair labour
conditions appropriate to all countries, but that the
standard must in each case be related to the productivity
of the country concerned.
4. On point (b) it was generally agreed that the main
work on this question should continue to be carried out
by the International Labour Organization, and that, if
any agreement on this subject is included in the Charter*
of the International Trade Organization, those countries,
which are also members of the International Labour
Organization, should co-operate closely with that organiza-
tion in carrying out the agreement. The reason for pro-
posing that some agreement on this subject should,
nevertheless, be included is that labour standards in any
country, and in particular in its production for export,
are a matter which virtually affect the employment of
labour and the flow of international trade.
SECTION E
The Removal ot Maladjusiments in the Balance of
Payments
I. The Preparatory Committee considers that a country,
even though it is maintaining full employment at home.
developing its economic resources and raising its standard
of productivity and maintaining fair labour standards,
may, nevertheless, exercise a deflationary pressure upon
other countries. This will be so if it is persistently buying
from abroad and investing abroad too littIe l relation to
its exports. Indeed its export surplus may be the means
whereby it is maintaining its own domestic employment.
2. It was not suggested that countries, which are
experiencing difficulties through unfavourable balances of
payments. may not themselves be partly responsible for
the maladjustments. For example, countries with
adverse balances of payments, whose difficulties are being
intensified by flight of capital from their currencies, might
properly be called upon to put a stop to such capital
export. But insofar as the pressure on their balances
of payment is due to the filure of countries with exces-
sively favourable balances of payments to spend their
external purchasing power on import or to utilize it for
productive investment abroad, the main responsibility for
the necessaay re-adjustment should not fall on the
countries which are faster pressure.
3. In the Preparatory Committee there was wide sup-
port for the view that where fundamental disequilibrium
in a country's balance of payments involved other
countries in persistent balance of payment dificulties,
which affected adversely the maintenance of employment
in those countries, the country concerned should make full
contribution to action designed to correct the maladjust-
ment. The particular measures 'that should be adopted
(e.g., the stimulation of import or the removal of special
encouragements to exports, an appreciation of the
country's exchange rate, an upward revision of its internal
price and cost structure, an increase in foreign invest-
ment, etc.) should, of course, be left to the government
concerned ta detemnimne. The problem here lies in a sphere
in which tht International Monetary Fund lhas a very
special concern. and it.is mount desirable that in`this field
both the national governments concerned and the
International Trade Organization should co-aperate fully
with the Fund.
Throughout this Report and its Appeadix the terrm
"Charter" standing alone refer, to the text drafted by tht
Prparatory Committee and .ppended to this Report. When the
United States Draft Chprter or the Charter of the United Nations
are mentioned, they ar referred to by their full titles.
56308
SECTION r
Safeguards For Colintries Subject to External Deflatiollary
Pressure
I. Alter further consideration of the position of
countries whose economnies are subjected tq de0latlonary
pressure as a result of a serious or abrupt decline in the
effective demand of otber countries, the Proparatory Com-
initteo concluded that there muât bc aderjuate safeguards
to meet this contingency.
2. In this connection it ws noted that the Articles of
Agreement of the International Manetary Fund contain,
for members of the Fund, some important saioguards:
(a) The provisions relating ta exchange contrai permit
the contrai of capital export sa that no country suffer.
ing from an external deflationary pressure need lind its
troubles intensifGed by light of capital f.oOI its
currency.
(b) A country, which finds itself in a ` fundamcutal
disequilibrium " as a result of the maintenance of its own
domestic prices, costs n;nd Incomes in conditions of
external deflation, can apply for an appropriate deprecia-
tion of the exchange value of its currency and such a
depreciation could not be frustrated by competitive
depreciation on the part of other members of the Fund,
which are not in a similar " fundamoutal dis-
equilibiium." In this regard it was noted that the
Executive Directors of the Interuational Monetary-
Fund have interpreted tht Articles of Agreement of the
Fund ta mean " that steps which are necessary ta pro.
tect a member from unm ployment of a chronic or
persistent character, arising from pressure on its balance
of payments, are amang the measures necessary ta
correct a fundamental disequilibrium."
(c) If a country or group of countries bas so large an
export surplus that iAt currency becomes ` scarce " in
the Fund, other countries would be permitted ta restrict
their purchases from it ta the necessary degree without
restricting their purchases frami each other.
3. The Preparatory Committee i of '.bo opinion that
the Charter of the International Trade Organization sb .uld
also contain adequate safeguards. It was In any case
proposed that countries Ln balance of payments diffculties
should bc permitted ta impose quantitative resttictions on
their import, and it was recognized this woald constitute
an important saleguard of the type -in question. '. It Is
suggested that when these safoguards are dlscussed, ail
relevant parts of tht Charter' of the International Trade
Organization should be carefully examined to ensure that
there are adequate safeguards for a country subjected to
pressure as the result of a decline in the effective deonand
of other countries.
4. It was generally feit that-the clauses relating directly
ta employment should givo general recognition ta this need
for adequate safeguards by requiring the' International
Trade Organisation to' have regard, in the exercise of its
functions as detlned ini the ather articles of the Charter,
ta the need of countries to tate action, within the pro.
visions of the Charter, ta saélguard their economies aginnat
deflationary pressure in tht event oi a 'seipus or abrupt
decline in the effective demand of otiier countries.
secrxai' O '.' : ':.
International action to maintain employment'.
x. In present circuumstances the direct action neces.ry
ta maintain full and productive employseut and a high
and stable level of eZective d d.must, in tht main,
be the sum of individual national efforts.' Nevertheleu
there are certain. ways in whlch tht appropriate inter-'
îgovernnmental organizations night, acting witHin their
respective spheres and consistently writh the terms of their
basic instruments, nake soane direct contribution to the
maintenance oi employment and the s.hbility of world
demand.
2. It is considered that the. Econornic andl Social Counail,
in consultation with the' appropriate' inter-governiental'
organizations, might undUly study tht possibilities in this
fidld.In addition to a consideration of the effects on
employment and production 'of a lowering of barriers to
trade. such studies might' well cover sucb measuresa as
tho synchroni"ation of credit policies so as to aise terms
of borrowing' over a wide aroa in' lismes of Rwenral
deflationary pressure, arrangements tu promote stbility
in tht incomes, and ao in the buying power, of producers
of primary products, the timing of expenditure on inter-
national capital projects and the encouragement of a flow
of capital in periods of world deflationary. pressure to those
countries w e balance of payments needs témiporary
support in order ta enable them to maintain'their domestie
police fior full and productive emnFaoyment.,' , 6
SECTION H
The Functions of the Economic and Social Council
and the Specialised Agencies
s, Thi International structure, whieh may b. necessary
to achieve these employment objectives, was considered:
Effective action in tfis sphore will involve separate ;"tion
by governments and by a number of inter-governmental
organizations. Yet such action mwst b. properly con-
certed, il the national and International measures for
offsetting a general depression are to be properly timed
and of the right magnitude.
2. The' Preparatory Committee considers that there
should, accordingly, bo some international body under
wbose sponsor biip governaienta and inter-guvernmental
organizations can conxuit wtitb a view to concerted action
ta maintain employtnent, and the appropriate body for
thia purpose would seomi to be tihe conomic and Social
:ouneil of the United Nations, together with its Economic
and Employment Commission and its dub-commisuions,
to whom this task bas already been entrusted.
3. The functions, which, it is thought, the Economic
and Social Couneil should elther perform itself or sponsor
through arrangements with th. appropriate inter-
governmental organizations, cover
(i) the regular collection, analysis and exchange of
relevant information and
(il) the organisation of consultation with a view to
concerted national and international action in the field
ci employment.
In addition to thea. continuing functions. It was considered
tho Economic and Social Council might initiate those
studies of noasible direct international action, for the
maintenance aof employment to whicii reference has been
made in paragraph a of Section G.
4. The work, which it is suggested, the Economic and
Social Council and the inter-governmental organizations
concerned might undertake on this subject will b. of
great importance. The information which is to b. col-
lected should, as far as possible, cover tbe level and com-
position of th. national income and expenditure and of
the balance of payments. as well as statistics of employ-
ment, unemployment, production, etc. As far as is
appropriate. and practicable, it should cover future pro-
grammes snd probable future trends in order that the
need of employaient policy may b. intelligently antici-
pated. Close and regular consultation for concertoid action
by governments and inter-governmental organizations will
bo necessary in order to ue how far national policies (e.g.
for expenditure on public works) or any relevant inter-
national policies can b. timed so as to make their most
effective joint contribution to the- maintenance, of world
demand.
uxsow s
The Fwrm of the Employment Provisiom
s. The Preparatory Committe. hold the view that the
suggestion that tho Economic and Social Council should
continue to full tiiese general ifnctions in employment
policy need not conflct witi t.ho special link t1iat should
eut between employment and trade. Governments may
md it dhiSicult ta assume the commercial obligations of
tht. International Trade Organisation in the absence of
undertakings by then to do their boat to maintain a hlgh
and stable level' of effectivee dernand and employment
policies must ngt conflict wlth cornrrercial obligations.
It lu necessary for theso reasons to Ilnk the trude obliga-
tions and the employment obligations closely together.
Accordingly It is considered it would probably b. mout
appropriate to Include the employment undertaking in
thc Charter of th. International Trade Organization.
2. It li thought, however, that there la one aspect of
employment wbich should probably bc treated differently.
ln paragraph 2 of Section G, it la suggested that the.
Economic and Social Council and the appropriate inter-
governmental organizations should be invited by the
United Nations Conference on Trade and Employment to
consider what action might b. taken la the international
field to asist in maintaining full and productive employ-
ment and a high and stable level of world demand. It ir
thought that this invitation might best be extended in
a separate resolution. A draft of ths resolution for the
consideration of the Conference on Trade and Employaient
lu set out hn the next paragraph.
3. Text of Draft Resolution on International Action
Relating to Employment.
THIE UNIMD NATIONS CONFZRENCZ ON
TRADE AND ZUPLOYSINT
CONS5OERING that 'a signficant contribution can be
made to the rchievement and maintenance of full and
productive cmpeloyment and of bigh and stable levels cf
effective demand by international action sponsored by the
Economic and Social Co4ncil and carried out in collabora-
tion with the appropriate inter-governmental organiza-
tions, acting within their respective spheres and conaiatkntly
with the terms and purposes of their basic instruments
HEREBY ASKS the Econaimic and Social Couacil ta under.
take at an early date, in consultation with the appro-
priate Inter-governmental orgaaiaations, special studies
of th. forn which sucb international action might take
AND sUGGE5TS that, in addition to covering the effect on
employment and production of a lowering of barriers to
trade, the studies of thei Economic and Social Councll
should include a consideration of such measures as:
(x) Tii concerted timing, to the extent which may bc
appropriate and practicable i the interest of employ-
ment policy, cf national and international measares to
influence credit conditions and tbe terms of borrowing;
(2) National or international arrangements, in suitable
case., to promote due stability In the Incomes of pro-
ducers of primary products. having regard equally to
th. interests of consuming and producing countries;
(3) Thi timing, to the extent which may b. appro-
priate and practicable in the interests. of employaient
policy, ci capital expenditure on projects which are
either of an international character or are internationally
financed;
(4) Tii promotion, under appropriate safeguards, of an
international flow of capital la periods oa world defla-
tionary pressure ta tiose countries whose balance of
payments needs temporary support' in order to enable
them to maintain domestic policies for mlu and produc-
tive employment.
CHAPTER II
The Dev.lopmrnt oftEconomic Resources
t. The Preparatory Committe. feels that there should
b. a clear recognition in the Charterof th. International
Trad. OrganlUat tn tbat the progrcive development of
economic ruoaurces hi a parts of the woîld is not only
desirable in itself as a means of raiuing living standards
in particular countries, but iu also dexiable as a means
of expanding the. volume of world trade, thus benefiting all
countries interested in international commerce. Improve-
ments in standards of productlun and real income in a
country contribute to the achievement and maintenance by
that country of tigh and rising levels of effective demand
for goods and services mi general. thus enhancing the
capacity cf thàt country to participate in woMld tade.
TwsvupsusU;~~~~~ - -
Tiio develapient ai economic resources wlfl also have
desirable social conquence by exjanding the rang ci
useful employment opportunities. It lu. thsraoWre, cellr-
atle that tiier. siioaald. b. progressive development,
especially ia tuoae countries hasoe Industries at proset ae
inadequately developed relative ta, their potential
2. It is thought that oneof th. chief gains from develop-
ment is found in the resulting greater diverificatlon within
and between rimany naaufacturing and service indus-
tries. Such diversification can contribute& to ceaa.d
stability in th. economy of a country and confer upon it
at social sud cultural benefits. The development of
manufacturing industries rill b.oci particular importance
as it is through sucb devdapment that th. guauest meaure
ai diversification ai production an employment appor-
tunities can be aiev.d;
.~ . 3. It is desired also to draw attention to a matter of
interest to all countries, namely, the early economic re-
establishment and industrial restoration of those countries
whose economics have suffered from the direct impact of
war. These countries have resources so real and important
to the rest of the world that their temporary disappear-
ance or decline has been followed by difficulties in parts
of the world far removed from the theatres of war. Their
economies are in many cases those of already well-
developed countries and are ready for relatively rapid re-
establishment which will put them in a position to make
available to other countries materials, equipment and other
manufactured products, which will be needed for economic
development. In these countries there are qualified tech-
nicians and experienced artisans already accustomed to
modern industrial technology and ready to undertake the
great diversity of occupations involved. Once restored
these war-devastated countries will be in a position to
contribute to technical progress and to the raising of pro-
ductivity and living standards. It is believed, therefore,
that measures should be taken to facilitate a rapid return
in the devastated countries to the development interrupted
by the war and that this will be helpful to the rapid and
sound development of other countries.
SECTION a
Adaptation of Economies
I. As the less developed countries progressively under-
take the production of a wider range of commodities for
their domestic markets, it is likely that the more highly
developed economies, which formerly supplied the markets
of the less developed countries, will be faced with problems
of adapting their economies to tie changed circumstances.
These problems will be minimized, both in degree and
duration, if countries are careful to ensure that their
development.. programmes are soundly based and
carried out.' The Preparatory Committee suggests that
,only in this way will the developing country make its
mostefective contribution to its owa economic welfare and
to international trade, and only thus will the more highly
devdoped countries b. able to adapt their economies with
vesnable prospect of success.
2. On the other hand there will also be problems of
'adjustment facing the developin& countries. These
probleràs will be mainly associated with the transfer cf
workerss from agriculture and other primary industries, as
the productivity of labour in such industries increases, to
manufacturing and other branches of expanding economic
activity. This transfer may involve a geographical redis-
tribution of population with all its attendant problems, as
well as problems of occupational training and retraining.
SECTION C
Conditions of Industrial Deavlopment
In any country the conditions of the industrial develop-
ment of economic resources include capital, capital goods
and materials markets, an adequate technology, managerial
skill and technicians and trained artisans in sufficient num-
bers. When any of these conditions are unsuitable, inter.
national and domestic action may be taken to modify the
situation. This international action may be such as to
facilitate the supply of capital, capital goods and materials,
to provide skilled management, trained technicians and
artisans and to improve technology. Individual countries
may take action to plan and cary out development
projects, to raise standards of industrial management, and
to provide for the training of their own nationals as
technicians and artisans, and -subject' to international
obligations, they may aim by the use of protective
measures at *providing a reasonable share of the home
markets to the commodities being produced in their
own territories.
- SECTION Il
Provision of Capital
1. Capital may be needed by a country to modernize and
improve the technology of existing lindstnes, to expand
testing industries or to establish new ones. It may also
b. needed to improve or increase the supply of public
utilities such as transport and communication services,
water and powe-r supplies. While projects of the latter
character are essential to progressive development, they
may not bc immediately or directly remunerative, and
international Action may be ail the more uecessazy, Uf the
supply of capital is to bc adequate.
* 56308
'7
2. The *Preparatory Committee feels that the inter-
national supply of capital will be particularly necessary
to the less developed countries and to the countries which
have suffered from war. The channel for this supply may
be through private investors, through government agencies,
or through the International Bank for Reconstruction and
Development. in view of the importance of industrial
development to expansion of warld trade, it is fdît that aul
members of the International Trade Organization should
recognize that they have a responsibility to co-operate
within the limits of their power to do so with appropriate
international organizations in ensuring that there is a
regular flow of capital to those countries in particular which
have limited capital resources. The International Trade
Organization migbt well participate in discussions with its
own members and with other international organizations
regarding proposals to this end. In addition it is felt that
members should undertake not to place any unreasonable
impediments in the way of other members having access
to capital.
3.' A country embarking on a programme of develop-
ment involving substantial imports of capital goods may
be faced with the possibility of balance of payments diffi-
culties. It ,s considered that if at any time a country
anticipates that sucb difficulties are imminent, it should be
permitted to impose qualitative regulation of its imports
so that the appropriate 'balance may be kept between its
imports of capital and consumer goods. Naturally such a
regulation of imports will only remain necessary while the
prospect of balance of payments difficulties remains.
SECTION z
Supplies
In all countries there wi!l be a demand for capital
equipment and materials of all kinds arling from pro-
grammes of production and development. For most
countries, including those which are actively promoting
their industrial and general economic development, this
demand can only be satisfied by obtaining supplies of one
kind or another from other countries. Therefore the
Preparatory Committee is of the opinion that members
of the Organization should recognize that they have' an
obligation to other members to refrain from placing un.
reasonable obstacles in the way of supply of capital goods
and materials of all kinds needed by other members. This
obligation. of course, would b. undertaken subject to
the other provisions of the Charter. For example, where
special shortages occur in the supplying country, par-
ticularly in the early post-war transitional period, suck
countries would be free to apply restrictions il the manner
provided in Article 25 of the Charter. In crh c=mum.
stances, however, it is hoped that they would taxe into
account the needs of other countries. and hold such
restrictions to a minimum.
SECTION Y
Technology and Training
One of the most important ways in which industrial
development can be promoted throughout the world is
through the dissemination of knowledge concerning
techniques of production, particularly in countries at
present inadequately developed relative to their potential.
This can be achieved in part by national and international
action ta make available as widely as possible (subject to
considerations of national security), knowledge of new
developments in all countries: resulting from- cging
technology and scientiSic reseamh, 'and in part by lndi-
vidual action by business entities in the less industrialized
countries gaining access to patents, specifications and
technological developments. This mnaybe accomplished,
for example, by such business entities becoming associated
with more experienced ones in the more highly indus-
triaiized countries. Technology can bo improved also if
technicians and skilled artisans in the more developed
countrilssare encouraged, to go, pemanently -or tempor-
arily. to the lers developed countries. On the other band
thé less developed countries should provide for raising the
standard of'technical and technological training' cf their
own nationals and should have opportunities of sending
their own nationals'to the more developed countries for
instruction and training.
SECTION G
Mutual Responsibilities
In the carrying out of programmes of industrial and
general economic development. therefore, there will be an
interdependence between the less developed and the more
hlghly.developed-counries.:. -Inarelation to the international --'
supply of facilitie.iforeéconifi de.elopment'inclding
A 4 8
capital funds, capital goods and materials, equipment.
advanced technology and trained personnel, the Prepara-
tory Committee is of the opinion that all countries should
recognize that they have mutual responsibilities. It has
already been noted that countries in a position to supply
these facilities should impose no unreasonable impediments
that would prevent other countries from obtaining access
to such facilities. It is equally important, however, that
countries receiving such facilities should treat the supply.
ing countries, including their business enterprises and
citizens, in conformity with the provisions of any of their
relevant international obligations and, in general, that they
should take no unreasonable action injurious to the interests
of the supplying country.
SECTION 11
Markets and Protection
T. As a general rule newly established industries depend.
initially at least, upon. domestic markets for the sale of
their product. lbe Preparatory Commit"ee is of the
opinion. therefore, that where necessary members desiring
ta promote industrial development should have or should
be afforded reasonable freedom to employ protective
measures sa that an adequate portion Qf their local markets
may be assured to the commodities concerned. However,
since an unwise use of protective measures by any country
for the purpose of promoting industrial development places
an undue burden on the economy of that country and
imposes unwarranted restrictions on international trade.
it is desirable t-at countries promoting development should
not lnake immoderate use of such protective measures.
2. The use of dumping policies by other countries might
be particularly barrmful ta countries wishing ta carry out a
programme of development or reconstruction. However,
special action will bc recommended later to provide against
this continge!1cy.
3.- Since the comparative development of member
countries is uneven, and since the levels of existing tarifs
are unequal, it is considered that account should be taken
of these factors by members generally in any tariff negotia-
tions and by the Organization should it be called upon to
determine whether a -country has fuIfilled its obligations
with respect to such negotiations.
- SZCEON Z
Nature of Protection
T. Considerable attention was devoted to the question
of the kind of protective measures wbich might be used for
promoting development. It was generally recognized-that
the Charter provides a substantial measure of freedom
to use subsidies and that it also permits-the use of tariffs
in those cases where, tariff rates are not bound against
increase as a result of agreements volunt-a.ily negotiated
by prospective members as contemplated in connection
*with the Charter. Discussion of t-bis problem was, there-
fore, related principally t-e the means whereby a member
might obtain a limited release from obligations assumed iu
the course of such negotiations witb other members and
from regulations contained in the Charter governing the
ust off ormis of protection other than subsidies and un-
bound tarifEs.
2. It bas been concluded th-t such releases should bo
granted in appropriate circumstances and the procedure.
which is described in paragraph (3) of Article 13 of the
Charter,' bas been agreed. Sub-paragraph (b) of 'tbat para-
graph covers a situation in which permission is sought t-c
*ais. a tariff that had been bound as a result of negotia-
tions -with 'cther' members, or in which it is desired to
impose sorie other forte' of protection that is otherwise not
permitted by the Charter and that would impair the value
to other members of an agreement negotiated with respect
to tarifEs. The somewhat simpler procedure indicated
under sub-paragraph (c) provides .for cases in whicb release
is sought from obligations assumed by ratification of the
Charter and such release would not impair the result of
prior tariff negotiations. PartF.!ar attention was given
to tbe possible use of quantitxtivc remnlation cf imports as
a means of protection. 7le Prepaj atory Committee .s
of the opinion t-at, subje,-- to the .uggested procedure,
this means should bc enmployeu .- where it would place
- a lighter burden on t-be country giving the protection and
were it would be less restrictive of international trade
than would bo the case witb other forms of protection.
3. One- delegate felt-that quantitative restrictions should
bc recognized as a means of giving protection whicb could
be used at any time in the early stage of industrial
development by a metnber deeming it absolutely necessary,
subject only to the right of any other member to complain
to the Organization if such member felt that in any in-
stance quantitative restrictions were being used unjusti-
fiably. This delegate specifically reserved his position with
regard to paragraph (3) of Article x3 of the Charter.
4. A second delegate expressed concern at,.what ha
regarded ta be the complicated and lengthy character of
the procedure for obtaining release provided in paragraph
(3) of Article 13. He felt the suggested procedure miglit
make it difficult for under-developed countries ta obtain a
release, particularly to use quantitative restrictions. la
those cases in which quantitative restrictions are no more
restrictive than alternative forms of protection, he would
urge that the procedure adopted by the Organization
should be less cumbersome, providing for release on t-he
basis of criteria established by the Organization, without
requiring prior consultation with other members.
Although realizing th-e evils of quantitative restrictions, ho
believed their use for protection should be provided speci-
fically in the Charter. However he e;d appreciate the
compromise that had been reached in this matter and did
not at this stage propose any amendsnents, although
reserving bis position.
5. Despite the proposal, set out in paragrapb (3) of
Article 13, namely that the Organization should be 'em:
powered ta give a release in appropriate circumstances to
a member in respect of any obligations under the Charter,
onc delegate felt that there should bo more apeci&c p:o-
vision for the use of regional preferential arrangements as
a means of giving protection and reserved his position on
this point.
SECTION J
Allocation of Functions
x. Careful consideration was given ta the question of
how the international functions relating to 'industrial
development can best be carried out and to the part whicb
the International Trade Organization should play in their
performance. It is clear that th-e Internaticsnal Trade
Organization must exercise functions relating to industrial
development at least insofar as measures of commercial
policy are employed ta foster such development. From
the point of view of the purposes of the Charter and the
effective working of the International Trade Organization,
there are strong arguments for empowering tho Organisa.-
tion to perforai certain positive functions in relation' to
industrial development, particularly in the provision of
technical aid ta members in the formulation and execution
of plans for development. Accordingly thez; bas beon
included in cie Charter a tentative provision ivhich, if
adopted, would enable the International Trade Organisa-
tion within its competence and resources to provide sucb
aid.'
2. This task. because of its essentially administrative
character, would be appropriate to a specialised agency,
and its performance by the International Trade Organiza-
tion might provide a useful means of positive co-operation
with menibers. Furthermore it would provide the per-
sonnel of the Organization with continuous experience of
the positive as well as the protective aspects of national
development policies and 50 assist them in maintaining'the
balanced-point of view which wilD be essential t-a the wise
exercise cf t-e discretions wbich the' Charter entrwsts ta
tho Organization. - -
3. The Preparatory Committee is aware, however, that
this problem cannot be looked at solelv from t-he:point of
view of the purposes of thc Charter. There are a'number
of inter-governmental agencies and organizations con-
cerned with various aspects of industrial development.
These include the ;Sub-Comrission on Economic Develop-
ment of the Economic and Social Council, the International
Bank for Reconstruction and Development. the Inter-
national Labour Organization. the Food and Agricultural
Organization and. the United Nations Educational,
Scientific and Cultural Organization. The Preparatory
Committee assumes that the Economic and Social Council
will shortly be giving consideration to t-he question of the
appropriate division amOnR various agencies of responsi-
bilities not yet allocated in the field of economic
development and to the means whereby their activities can
be adequatelv co-ordinated, and that the decisions of 'tbe
Council on these questions must bo based on other and
possibly wider considerations than'those which faDl within
the competence of the Preparatory Committee. Accord-
*'Paragraph (3) of Article' sx. ingly, paragraph (3) of Article Is, by which tht
Organization is empowered te provide technical aid to
members. has been placed in square brackets as an
indication that its inclusion should be regarded as pro-
visional until the views of tho Economic and Social Council
on this question have been formulated.
4. It is suggested, therefore, that the Economic and
Social Council should bh invited, when examining the allo-
cation of functions in relation ta industrial development,
to give due weight te the considerations set forth above
and te advise whether the inclusion of paragraph (3) of
Article II is consistent with the Couacil's views.*
5. In view of the fact that there are many factors, other
than those directly relating te the International Trade
Organization, which require te bc taken into consideration
in this matter, the Preparatory Committee expresses the
hope that tIOse of its members, which arc not also
mernbers of the Economic and Social Council, may be
invited te submit their vicws at the time the Council is
considering these matters.
CHAPTER III
General Commercial Pollcy
SWCTION 4.
General Most-Favoured-Nation Treatment, Tarifls and
Tariff Preferences, etc.
z. Most-Favoured-Nation Treatmont
(a) The Preparatory Committee is in agreement with
the principles
(i) that members of the International Trade Organiza-
tion should grant each other general unconditional most-
favoured-natic.n treaSment in respect of all customs
matters; and
(ii) that existing pre-erences, which are of long stand-
ing and which have important effects on the econoMie3
of the countries concerned, should be excepted from the
most-favoured-nation clause pending their elimination
by negotiations pursuant te the provisions of Article 24.
(b) The most-favoured-nation provisions set forth in
Article 8 of the United States Draft Charter were compared
with the standard most-favoured-nation clause developed
by the League of Nations for inclusion in bilateral agree-
ments. It was concluded that there were nO important
differences of substance between the two versions and that
the version incorporated i Article 8 was preferable because
of its brevity.
(c) The most-favoured-nation clause recommended by
the Preparatory Committee incoLporates certain concepts
(for example " the like products ", ` country of origin ",
etc.) which have been customarily included in commercial
agreements in the past but which have never received a
precise definition.- The Preparatory Committee is of
tht opinion that the matter of defining sucb concepts
should be left for study by the International Trade Organ-
Izaotin after its establishment.
(d) The principal differences between tho text of Article
8 o! the United States Draft Charter and of that recom-
mended by the Preparatory Committee, and the reasons
for these differences, are as follows:
(i) Under paragraph x of Article 8 of the United States
Draft Charter the grant of most-favoured-nation treat-
mez-t extends te firstly, the awarding of governmental
contracts for public works and secondly, te the purchase
by goveranrents of supplies for governmental use (i.e.
not for, resale)t Under the revision recommended by the
Preparatory Committee .these subjects are removed from
;the scppe of the,m jt-favoured-nation clause.
-. (ir) th Preparaty Committee is of the opinion that
the av.r ding of public works contracts is more closely-
related to the question of tht treatsnent of foreign
nationals and corporations than te the treatment of the
trade in goods. It is considered that Chapter V of the
Charter should be confined to matters affecting trade
-and that questions relating to the treatment of nationals,
etc., --sheodd be the subject of future agreements
developed under the auspices of the International Trade
Organization as contemp!dted under paragraph (5) of
Article 6s of the Charter. Under this paragraph as
well as under Article 75, the International Trade Organ
ization can recommend the adoption of special agree.
ments dealing with public works contracts.
(iii) The comnmitzment regarding governmental pur-
chases of supplies for governmental use was removed
from the scope of the umost-favoured-nation clause
because a suitable clause dealing with such governmental
purchases hà recommended for inclusion in Article 3s
(Nor-discriûrinatory Administration o! State-Trading
TEnterprises).
56308
(iv) The Preparatory Committee considered the pro-
vision in Article 9 of the LJnited States Draft Charter
for national, as distinct from rmost-favoured-nation,
treatment i; respect of governmental purchases of sup-
plies for governmental use. Such provision would
require the elimination of the many "buy-national `
laws under which national governments are required to
give prefereisce to domestic products in purchasing their
administrative supplies. As it appears to the Prepara-
tory Committee that an attempt to reach agreement
on such a commitment would lead to exceptions almost
as broad as the commitment itself, the Preparatory
Committee has omitted this commitmrent.
(v) Under paragraph 2 of Article 8 ci the United
States Draft Charter certain long-standing preferences
are temporarily excepted from the most-favoured-nation
clause (i.e., they are excepted pending their elimina-
tion by negotiation under Article I8 of that Charter)
provided that they were in effect in either 1939 or 1946
(whichever date resulted in the lower preferences). Also,
under that paragraph the preferences thus excepted were
limited, roughly, te Iniperial or Commonwealth prefer-
ences and Cuban-Am2rica.n preferences.
(vi) Under the revision of paragraph 2 of Article 8
(Article 14) which is recommended by the Preparatory
Committee, the preferences excepted from tbe most-
favoured-nation clause are those remaining after the
negotiations contemplated in Article.24 rather than those
in effect on a particular date. Alse, the categories of
preferences thus excepted are broadened te include not
only Imperial and Cuban-Arnerican preferences but also
preferences in force between neighbouring countries in
1946.
(vii) The base dates in paragraph 2 of Article 8 of the
United States Draft Charter would determine in a precise
way those preferences te be eliminated under the most-
favoured-nation clause and those preferences to be sub-
ject to negotiations under Article 18 of that Charter,
Accordinglv, the removal of the base dates from this
paragraph will require that some other method bo
found of establishing a basis for negotiations with
respect te preferences. Recommendations on this point
are included in tbat part af the Report which relates
to the proposed multilateral trade-agreement negotia-
tions among members of the Preparatory Comrmnittee.
(viii) In this connection one delegate suggested that
Articles 8 and I8 of the United States Draft Charter
should be interpreted in such a way that, sa long as'a
preference remained accordable in ont part of a prefer-
ential! systeni specified in paragraph i of Article 8, tbat
part o'f the preferential system according the prefer-
ences should be-at liberty' to:extend the same, or a-lesser
measure of preference to any other part of the same
preferential system which at present did not enjoy it.
2. Reduction of Tariffs and Elimination of Preforencos
(a) Ganerai Observations
(i) The Preparatory Committee was in general agree-
ment with the basic principles that the 'meptbersm of tht
International Trade Organization should enter into' recip-
rocal and mutually advantageous negotiations with eacb
other directed te the substantial reduction of tariffs on
imparts and exports and te the elimination of iinport
tariff preferences, that these negotiations should proceed
in accordance witb certain rules and that members, Which
unjustifiably fail te fulfil their obligation regarding tarifs
and preferences, should not be entitled to receive the
benefits resulting from, the fuilmont of these obligations
by other members.
- >` ~~See Aunnexre 8; 10
(ii) One delegate while recognizing that the proposed
negotiations are to be conducted on a reciprocal and
mutually advantageous basis and that the obligations
undertaken pursuant to such negotiations would be sub-
ject to readjustment by the International Trade Organiza-
tion in accordance with the principles and procedures set
forth in Chapter IV (Economic Development), neverthe-
less questioned the application to countries in the early
stages of economic development of the principles set forth
above that tariffs should be reduced substantially.
(iii) Another delegate suggested that the rules govern-
ing the negotiations should take into account the relative
levels of the tariffs of each country in the light of the
position of those countries which are in the early stages
of industrial development. While making this suggestion,
this delegate indicated his willingness to raise with his
Government the question whether the principles and pro.
cedures recommended in Chapter IV (Economic Develop-
ment) do not adequately meet the requirements he wished
to sec satisfied.
(b) Scope of Negotiatioss
(i) Under paragraph 1 of Article 18 of the United States
Draft Charter the proposed negotiations would extend
to tariffs on imports and exports and import tarif prefer-
ences. Under the revision prepared by the Preparatory
Committee the scope of the negotiations has been broad-
ened ta clearly cover charges on imports and export other
than tariffs. The additional charges in question are in-
tended to mean charges analogous to tariffs they are not,
for example, intended to include non-discrlminatory
internal taxes which are collected at the time of importa-
tion.
(ii) The reference to negotiations regarding state-trading
margin, which appears in paragraph i of Article z8 of
tho United States Draft Charter, has been omitted from
thc revision. It was believed that undertakings to nega-
tiate with respect to such margins, in the manner speci-
fied in the case of tariffs and preferences, were adequately
provided in thU revision. (Article 32.)
(c) Rules Governing Nq!oi.ins
(i) Certain drafting changes were suggested with regard
to the uiles governing negotiations set foreh in paragraph i
of Article 18 of Uic United States Draft Charter. Firstly-
Sub-paragraph (a) provides that " Prior international
commitments shall 'not be permitted to stand in the way
of action with respect to tariff preferences." It was agreed
that the intention lying behind this provision could bc
more clearly expressed as follows: " Prior inter-
national corumitinents shall not be permitted to stand
in thU way of negotiations with respect to tariff
preferences, it being understood that action resulting raom
such negotiations shall not require the modification of
existing international obligations except by agreement
between the contracting parties or, failing that, by ter-
mination of such obligations in accordance with their
terms." Secondly-Sub-paragraph (b) provides that nogo-
tiated reductions in most-favoured-nation tariffs should
operate automatically to reduce or eliminate margins of
preferences in effect on I July I939. In view of tae im-
practicability of establishing a common base date for
negotiating preferences, the revision recommended by the
Preparatory Commrttec omits any reference to a base
date to bo used in applying this rule. Threo delegates
thought that the rule should not operate automatically,
but that members should be free to negotiate for a
reduction in thU preferential rate as well as in the most-
favoured-nation rate, provided that thU margin between
the two negotiated rates is smaller than that existing on
a (prior) date to bo agreed upon. Thirdly-An additional
rule bas been included, as sub-paragraph (c) of Article 24,
wh-ich provides that during the negotiations the binding
. consolidation of low tariffs or of taritT-free treatment
shall in principle be recognized as a concession equivalent
in value to thU substantial reduction of high tarifs or the
elimnination of tariff preferences.
(ii) The Preparatory Committee also considered the
question whcthor a rule should bo included in Article I8
of thU United States Draft Charter ta the effect that thU
elimination of quantitative restrictions (as defined in Article
29 of that Charter) on thU Onc hand, and tUi binding of
preference-free treatment on the other hand, should be
considered concessions equal in value to the reduction of
tariffs or the elimination of preferences. It was agreed
that since preference-frec treatment and quantitative
restrictions were to be dealt with under general rules in-
corporated respectively in Article 14 (Most-Favoured-
Nation Treatment) .- and. Articles .25-28 (Quantitative
:Rcstrictlaoq) of tih. revised tet, tbcy could not properly ba
included in the rules governing selective tarif negotiations.
At the saine tins. it was recognized, thàt, in accotdancc
wlth the plan for conducting tariff negotlatlons among
the members of the Preparatory Coailtittee, those countries
would not be called upon to subsctibe to the most-iavoured-
nations and quantitative restrictions provisions until
selective tariff negotiations bad been completed and vice-
versa. It was believed that tUis circumstance would assure
that due weight will bo given in the tariff negotiations to
the benefits to bo derived Irom the elimination of quanti-
tative restrictions and the general grant of most-favoured-
nation treatment.
(d) Withholding ot Tan#f BDoefliu from Members ot the
Organization Which Fail go Carry' Oui Obligations for
the Reduction of Tanif/t and P.itnination oi Preforencea.
Several changes were made In patagrapli 3 of Article il
of the United States trait Chatter.
(i) Paragraph 3 pr ovides that tihe International trade
Organizatiln may authorize a tbetbbet to withhold tariff
reductions iton atiothet metdber which failed tb
nogotiate as rquired by patagtaph S. Under the
revision the Organîzation can authorize withholding fot
fallutre to uiegotiate In accordance with the rules laid
down lIn paragraph (r)" (1.e. lni sulb-paragraphs <a), (b)
anti (c) ai paragraph (I)). Thlus, fat example, a coufitry
having low tarlls CanD0t ho accused under paragraph (3)
ai laiIure ta negotiate adequately because ai unwilling-
ness ta redore its tariffs substantially. Also, under Uic
revision, a member n bring a complaint before tle
Organization in the event ai another member £ailing
to consider reductions of high tariffs in retun for bd-
ings of low tariffs. :
(ii) Under paragrapti 3 of the United States Draft
Charter the withholding of tariff benefits bymembers is
restricted ta tariffs reductions effected pursuant to nego-
tiations under paragraph z. Under the revision members
arc authorized to withhold any tariff benefits, including
bindings, granted pursuant to negotiations. The pur-
pose of this change is to assure that low trif countries
(which may not have granted many tariff reductions)
will not bo placed in aa un£avourable bargainngaPoston
in dealing with members of the Organization which may
bo reluctant to carry out thU obligations of paragraph
(z) of Article 24.
(iii) Language bas been included ta paragraph (3) of
Article 24 to assure that the Organszation, in
determinating whether a member bas unjustifiably failed
to negQtiate adequately as required by paragraph (I),
will take into account the situation of Uic member under
the Charter as a whole, including Chapter IV ai the
Charter (Industrial Development).
3. Emergency Action in Respect ot Importis a Particulasr
Products.
(a) The Preparatory Committee considers that members
of the Organization, in the event of unforeseen develop-
ments and of injurious effects on their trade caused by or
tUreatened by reason of the obligations laid down
in Chapter V (including tarif[ or preference concessions)
should be permitted to withdraw or modify thU obligations
to the extent and for thU time necessary to prevent the in-
jurious effects. The Preparatary Cornmittee agreed that
this right should be subject to adequate safeguards and
to thU possibility of counter-action by other members in
the event of the abuse of the right.
(b) Three basic changes have beei incorporated it thei
revision of Article 29 of the United Statés Draft Charter.
(i) LangÙIge has beeni paiagrstd. (sS at
the revision (Article 34) which makes it clear that mcn-
bers invoking the Article may withdraw or modify con-
cessions in respect of proforences as well as concessions
in respect of tariffs and obligations regardlog quanti-
tative restrictions etc.
(ii) A provision bas been included under whichrmem-
bers may, in critical and exceptional circumstances,
modify or withdraw concessions under tise Article, on
a provisional basis, without prior consultation with the
other interested members of Uic Organization, Provided
that consultation is undertaken immediately following
upon the taking of such action.
(iii) Two delegates questioned the dedirability 'of per-
mitting action under tie Article without prior consulta-
tion even in emergency circumstances; One of these
delegates als5 proposed that if action without prior con-
sultation was permitted to azmember, immediate counter-'x
action by other affected niembers. shQul4`albe per. 11
mitted, without the delays involved in obtaining the
permission of the International Trade Organization to
take such action.
(c) Provision has been made to assure that, ordinarily,
counter-action taken under Article 34 will not be dis-
proportionate to the provoking action. At the same timo
the Organization is authorised to permit severe counter-
action in cases of abuse of the privileges granted by the
Article.
4. Consultation-Nullification or Impairment.
(a) The Preparatory Committee agreed that members of
the International Trade Organization should stand ready
to consult with one another regarding any matter affecting
the operation of the provisions of Chapter V of the Charter
relating to trade barriers. It was also agreed that any
member should be entitled to request the Organization to
set aside any obligations under Chapter V, and that the
Organization should be authorized to set aside such obliga-
tions, in the event of any situation arising. whether or
not caused by action by another member, which would
nullify or impair any object of the Charter. If a member
is adversely affected by obligations being set aside, it
should be entitled to withdraw from the Organization on
short notice.
(b) Under Article 30 of the United States Draft Charter
a member can be authorized by the Organization to sus-
pend the application to another member of obligations
under Chapter V only in the event of the second member
being found to have taken some action (whether or not in
confict with Chapter V) which nullified or impaired an
abject of Chapter V. Under the revision any action by a
.member or the development of any situation, which,
impaired or nullified any abject of the Charter (including
any object set forth in Chapter III (Employment)) can be
an occasion foi' the lodging of a complaint with the
Organization. Thse Organization can make recommenda,
tions ta tbe members concerned and, in serious cases,
release any member (and not merely the complaining
member as originally) from its obligations under Chap-
ter V. Members adversely r.fiected by the suspension
of obligations on the part of another momber are entitled
ta withdraw from the Organization on short n.
(c) Two types af cases will illustrate thi action
whicb may be permitted under the revisii- .cie 30)
but which is precluded under the Article . -afted iiu
Uic United States 'Draft Charter.
(i) A member may seek, and obtain from the Organiza-
tion, a release from its obligations under Chapter V on
the ground that its economy is suftrnng from deflationary
pressures caused by the !ack of effective demand for its
goods from abroad (possible impairment of the objects of
Chapter III). In such cases it is contemplated that the
Organization, before granting any such release, will con-
sult with the Economic and Social Council of thc United
Nations or with other inter-governmental organizat-ons.
ta determine whether some ailier remedial action is not
open ta the member seeking the release.
(il) A member importing a particular product may be
released from appropriate obligations under Chapter V
in order ta adjust competitive conditions between two
exporting countries (for example, in cases in which one
oI the exporting countries is deliberately exploiting sub-
standard labour contrary ta the objectives cf Chapter m.)
Also, the request for such a release may be made by
one ai the exporting countries (in the example above
the exporting country ,;aiering from unfair competition
caused by sub-standard labour in the other exporting
country) rather than by the importing country.
5. Territorial Application of' Chapter V.-Customs Unions
-Frontier Traffic.
(a) The Preparatory Committee was in agreement that
the provisions of the Charter regarding trade barriers
should apply ta each of the custOmS territories under the
jurisdiction of members, that an appropriate exception
ta these provisions should be made for advantages
accorded ta facilitate frontier traffic, for advantages in-
cident ta the formation qf a customs union and for new
preferential arrangements approved by the Organization
under paragraph (2) Article 66 and that suitable defini-
tions of customs territories and customs unions should be
included in Chapter V.
(b) In addition ta certain drafting amendments, the
following changes were made in Article 33 of thU United
States Draft Charter:
(i) That Article provides that Chapter V shall not
prevent " thU union for customs purposes of any cus-
56308
toms territory and any other customs territory." Under
the revision this exception extends ta - the ponration
of a union for customs purposes, cIc." thus permitting
measures vr'dich in fact represent a transitional stage
towards a customs union.
(ii) A new paragraph bas been added which recognises
that new preferential arrangements (for example, those
of a regional character) may, in exceptional circumn-
stances be justified and make st clear that the Organiza-
tion will be authorized ta approve such arrangements
under paragraph (2) of Article 66 of the Charter.
(c) Two delegates made reservations with regard ta
preferences of regional character. One of them stated
that sucb preferences have an intrinsic value by them-
selves and should not be subject ta the procedure pro-
vided in paragraph (2) of Article 66.
6. Subn;ission of Report on Procadures for Proposed Multi.
lateral Trade 4greeoncnt Negotiations
(a) The Preparatory Committee bas prepared a report
setting forth procedures ta be followed in connection
with the negotiations regarding tariffs and preferences
ta bo conducted among its members pursuant ta Article 24
uf the Charter and in accordance with its resolution oa
November 26, 1946,*
(b) It i9 believed that the text of this report is largely
sclf-explanatory. It may be noted, however, that the
paragraph, which points out the importance of avoiding
niew tariff measures which would tend ta prejudice the
proposed negotiations, is not, of course, a legally binding
obligation such as might prevent countries from intro-
ducing tariff changes regarded as urgent.
(c) With regard ta the proposal in the report that the
tariff agreement among the members ai the Preparatory
Committee should be unilateral in form and in legal
application, one delegate considered that bilateral tariff
agreement or agreements limited ta a small group of coan-
tries the benefits of which are generalized under the
operation cf the most-favoured-nation clause would be
preferable because they night be more eaily revised
when necessary.
SECTION B
General Commercial Provisions (except most-fr.voured.
nation treaiment)-Exceptions
z. A substantial degree of agreement among the members
uf the Preparatory Committee was reached on questions
of the principle underlying these provisions. However,
as was ta be expected, there were numerous differences
of opinion, and a number of reservations were made on
account of national variations in the practice of detailed
administration.
2. Complete reconcmation of views was not possible
ta the extent that agreed texts for insertion in the Charter
could be prepared within the time at the disposal of the
Pieparatory Committee. A greater degree af unasjpity
might have possible if more time had been available.
In addition many of the delegates' suggestions were
merely drafting points and it was felt that these should
be dealt with by the Drafting Committee.
SECTION C
Quantitative Restrictions and Exchange Control
I. General Elimination of Quantitative Restrictions
(a) There was wide agreement with the proposal for a
general rule against the use of import and export restric-
tions and prohibitions, the rule being subject ta excep-
tions permitting thse use ai restrictions in specified circuma-
stances and under specified conditions.
(b) The Preparatory Committee agreed that during a
post-war transitional period it should be permissible ta use
such restrictions ta achieve the equitable distribution
products in short supply, thse maintenance of war-time
price contrai by countries undergoing shortages as a result
of the war, and the orderly liquidation of temporary sur-
pluses of governmnent-owned stocks and of industries,
which were set up owing ta the exigencies ai war, but
which it would be uneconomic ta maintain in normal
times. These last two exceptions would be subject ta
consultation with other interested members and all thess
exceptions would be limited ta a spucifled post-war tran-
sitional period, which might, however, be subject to some
extension in particular cases.'
, See Annexure 7.
A 6 * (c) Thiere was wide agreement for anl exception to the
general rule against expert restrictions or prohibitions se
as te enable a country te take temporary action to relieve
critical shortages of foodstufls or other essential products.
Thero was aise wide agreement for an exceptional use cf
restrictions te apply standards of classification and grad-
ing of commodities in international commerce, subject
te safeguards against their ruisuse for the purpose of giving
disguised protection.
(d) Consideration was given ,o the suggestion tiat there
should be an exception permitting import iastrictions on
agricultural or fisheries products te accompany measures
restricting the doznestic production or sale of like pro-
ducts and to remove a temporary domestic surplus by
means which involved selling that surplus ut prices below
the current market price to certain groups of domestic
consumer. heree was wide agreement for the view that
a clause on these lines was desirable but two delegates
proposed that, in order to give similar protection te agri-
cultural or underdeveloped countries, the exception should
not be confined te agricultural and fisheries products. One
delegate, on the other hand, took the position that the
exception should cover only agricultural products. Thore
was wide agreement for the view that any supplies of the
product which were en route at the time at whicb public
notice was given of the restrictions should not be excluded,
though they might be counted against any quotas in the
importing country. It was generally agreed that this point
should be covered in this Article unless it were already
adequately met in Article 2z.
(e) It was suggested that restrictions insposed under this
exception should not be imposed on seasonal commodities
at a time when similar domestic products were not avail-
able and it was generally agreed that this suggestion might
usefully bh further considered at the. Second Session of the
Preparatory Committee.
(t) There wai wide agreement for the view that re-
strictions on import, imposed ta match a restriction on
domestic production, should not be such as to reduce the
proportion of imports te domestic production below the
level which might otherwise have been expected te rule,
it being necessary te judge the situation not only in the
light cf the position at a privious period but alse in the
light of any changes in conditions which might have
occurred since that date. The view was, however, ex-
pressed thal. such a rule might weigh unduly on the
doinestic producers, since the exporters in other countries
might be able more readily te find alternative ma kets.
(g) The suggestion was put forward by soma delegates
that the exception in the case of agricultural products
should bh widened by permitting restrictions on import
without restrictions on home production so as to maintain
domestic prices at a level sufficient te cover domestic
costs of production or se as te enable a domestic surplus
te bh cleared. It was suggested that thiz could bh accom-
plished by deleting the last three sentences of sub-para-
graph (2) (c) of Article 25. However, it was felt by otler
delePtes that such proposals wculd extend the Fcope of
the exceptionn to an undesirable degree.
(h) Some delegates put forward the suggestion that the
wording of the exception in the case of agricultural pro-
ducts should be changed se that the words " for instance "
would bh inserted after the words " to remove a tom-
porary surplus of the like domestic product ". Other
delegates felt that this suggestion would permit an un-
desirable expansion of the exception and, therefore,
opposed the suggestion.
(i) There was general agreement that restrictions or pro-
hibitions on private trade might bh imnosed in order te
protect the position of stata-trading entierprises operated
under other articles and that import or export quotas isn-
posed under inter-governmentai commodity agreements
concluded under the Charter might be used.
(j) The suggestion was aiso made that it should be par-
missible te use import. restrictions, under proper safe-
guards, as an antidumping m.iasure in those cases of inter-
mittent dumping in which import duties did not provide
a suitable instrument of control. After consideration it
was generally agreed that as far as the establishment of
new industries are concerned, tde position should bh suffi-
ciently covered by the provisions of Chapter IV. In re-
spect of the threat of intermittent dumping to 'i, blished
industries, tsera was wide agreement with thi v, .v tht
the petition was probably already adequately Ls-Yered
under Articl 34 but one delegate remained uncertain
whether tDis was in fact the case.
12
(le) lt was suggested that export restrictions snould be
pennitted for the preservation o£ scarce natural resources
even if thera were not restriction Oc domestic consumption,
as required under paragraph j rf Article 32 of the United
States Drait Charter. While it was recognized that there
might be cases in which such action would bu unobjec-
tionable, the view was widely expressed that such au
exception, unless subject to sufficient safeguards, might un.
duly restrict access 1o raw materials. Lt was generally
agroccl that dtc point might usefully be further examined
at the Second Session of the Pruparatory Committoe.
(1) It was suggested by one delegate that restrictions on
exports should be permissible for the safeguard of living
standards, for the facilitation of industrial development
and for the stabilization of domsnetic prices se as te achieve
a balanced development of the national economy, and that
import restrictions should be permissible for the enforce-
ment of governmental measures to regulate domestic pro-
duction, distribution and consumption so as te maintain
a dynamic equilibrium between the diverse economic acti-
vities of a nation in the process of industrialitation. After
discussion of this suggestion, tbere was wide agreement in
thie Preparatory Commnittec that it was already adequately
covered in the provisions of Chapter IV and by the pro.
posais made with regard te the use of import restrictions
under Article z6 te safeguard the balance of payments.
(tn) Some delegates announced that, because they
thought the procedure laid down in sub-paragraphs (3) (a)
and (c) of Article I3 of Chapter IV (Industrial Develop-
ment) needed further examination, they might propose an
addition te paragraph (2) of Article 25 to include another
exception in the following terms: " Import restrictions for
the purpose of economic development as a protective
measure provided that they are less restrictive in their
effect than other forms of protection and provided that
Utey are il conformity with the criteria laid down for the
purpose by the Organization." Other delegates, how-
ever, considered that the procedure laid down. wari appro-
priate.
(n) The Preparatory Committee considered the question
of the treatment of certain existing preferential arrange-
ments which were established under international agree-
ments but nut elected by the normal method of a difflr-
ence in rates of duty. In these special circumstances it
is recommended that any such arrangements remaining
after the negotiations te commene on 8 April, 1947 should
be dealt with by a provision in ., protocol to the Charter
or (pending the conclusion of the Charter) to the General
Agreement on Tariffs and Trade to the effect that the
member applying these arrangements shall be entitled to
continue them; or equivalent measures, pending either:
(i) an arrangement under Chapter V, if tbe members
concerned desire that the product should be made the
subject of such arrangement, or
ii) some other arrangement regarding the matter
between the members concerned.
(o1) t was agreed that only a very limited number of
commodities full under this heading and that the countries
concerned should establish the facts about them so that
the above recommendation could be taken into account
in the forthcoming negotiations. It was further recognized
that the concessions or lack of concessions in respect of the
items concerned would, for purposes of assessing the results
of the negotiations, stand on tie sarne footing as conces-
sions or lack of concessions in respect of particular tarif!
or preference items.
2. Restrictions te Saf¢guard the Balance of Paymnents
(a) The Preparatory Committee considers that it should
be permissible for a country te restrict imports when such
restriction is necessary to safeguard its external financial
position, particularly in view of the fact +hat in many
cases thera will be domestic employment, reconstruction,
development or social policies which result iu creases il
the demand for import. It was recognized tsat in many
cases policies of internal reconstruction and development
might bh an essential factor in restoring equilibrium, to a
country's balance of payments on a sound and lasting
basis.
(b) Consideration was given to the best method nf
cnsuring that such a safeguard should be available for tise
protection of a country's external financial position withoivt
giving freedom, for the unnecessary use of import restric-
tions. It is thought that countries should undertake to
observe certain principles in the use of such import
restrictions, and that, since thie fundamental objective
is te safeguard a country's external financial position,
these principles should be based upon movements in the 13
country's monetary reserves. Import restriction, it was
suggested, should only be newly imposed or intensified
in so far as was necessary to stop or to forestall the
imminent threat of a serious decline in monetary reserves
or, in the case of a member with very low monetary
reserves, to achieve a reasonable rate of increase in its
reserves.
(c) There are, however, many factors to which due
regard must bc paid in interpreting any such rules. There
may be special non-recurrent movements of funds affecting
a country's reserves, a country may have special credits
outside its monetary reserves which it might be expected
to use to a proper extent and at a proper rate to meet
a strain on its external position, a country which has
high reserves may, nevertheless, have high future commit-
ments or probable drains upon its resources to meet in
the near future. All such factors will have to be taken
into account in interpreting movements in a country's
reserves.
(d) It . as generally agreed that there should bc an
undertakinig to remove or to relax restrictions on the
same general principles, as a country's external financial
position improved.
(e) It was also generally agreed that, in order to avoid
unnecessary damage to the commercial interest of other
members, import restrictions imposed to safeguard a
member's external financial position should not be carried
to the point of total exclusion of any particular class of
goods.
(f) Consideration was given to the relations which
should exist between members and the Organization in
order to ensure that members should, on the one hand,
not be able to abuse the application of import restrictions
on these grounds, but sholud, on the other hand, have some
certainty that they could apply them when necessary. It
is considered that for these purposes. there will need to
be arrangements for consultation between the members
and the Organizatios, for complaint to the Organization,
and ultimately for the Organization ta recommend the
withdrawal or modification of restrictions if these are
being improperly applied.
(g) In this whole process of consultation, review and
recommendation, the Organization, it is recognized, will
have to keep in the closest contact with the International
Monetary Fund. The Fund is the specialized agency which
deals with the financial aspects of balance of payments
problems and the use of import restrictions to safeguard
the external financial position of members can onIy be
properly considered by the Organization if, at every stage,
it invites the Fund to participate in its consultations.
(h) It was widely agreed Lhat a first stage in this pro-
cess should be consultation as to the nature of a country's
balance of payments difficulties, the various corrective
measures which may be available and the possible effeeà"
of such measures on the economies of other members. Et
is thougsht fat a member, which was considering the
imposition o! restrictions for the first time, sl'culd as a
general rule undertake sudb consultations before imposing
Use restrictions and, in cases in whicb prev'ots consulta-
tion is impracticable, soul undertake surih consultations
as soon as possible after imposing the restrictions. The
Organization should, it is generally timought, bc ile to
initiate consultations witb any member which ha already
imposing restrictions on these grounds, and should, in any
case, always initiate such consultations with any member
which las found it necessary substantially ta intensify its
restrictions. It is also tUougbt that the Organization
should, within two years of its institution, review all
restrictions existing at ifs institution and subsequently
maintained on the grounds of safeguarding members' ex-
ternal financial positions.
(i) Many members, which may find it necessary to im-
pose restrictions tu safeguard their external financial
position, may wish to obtain some security fiat the
restrictions which they are applying or intend ta apply will
not be challenged or that if their external position becomes
sufficiently difficult, they will be able tf impose restrictions
which will not be challenged. For this reason it was
generally agreed, a member should have the rigbt ta
obtain the Organization's previous approval of restrictions
which it was already applying or irtending tu apply, so
that it could not be challenged by another member when
it applied fiem. It is generally considered that such
previous approval should relate ta the general extent,
degree and duration of the restrictions and siouid not
56308
prevent another member thereafter from bringing a com-
plailt to the Organization that the restrictions were being
applied in a manner wlhich unnecessarily damaged its
commercial interests.
(j) Similarly, a member may seek the previous approval
of the Organization, not in relation tu any actual restric-
tion which it is already applying or intending ta apply,
but in relation to the contingent future conditions which,
if they occur, will justify it applying restrictions. For
:xamplc, it may be agreecld bcwcen the member and
the Organization that the member cannot in any circum-
stanc#e during ani agreed period ahead be reasonably
expected to allow its monetary reserves to fall below an
agreed figure.
(le) The Preparatory Committee considers that It should
be open to any member to bring a complaint ta the
Organization that another member is applying restrictions
when they arc unnecessary to safeguard its external finan-
cial position or that it is doing su in a way which is
unnecessarily damaging thc commercial interested of the
complaining member. In this case the Orgarization, if
it is satisfied that the complaining member has made out
a prima facie case that its commercial interests 'are
adversely affected, should consider the complP.int. It
should have power after consultation with the international
Monetary Fund to recommend the withdrawal or modifica-
tion of the restrictions and if the member in question fails
tu witlldraw or modify them accordingly, such other mem-
bers of the Organization will b. released from such
obligations towards the meniber in question as the Organ-
ization may specify. The Organization should, however,
not be able to recommend he withdrawal or general
relaxation of restrictions insofar s ii had given previous
approval for them, nor should it be able tu do so on the
grounds that the member's external financial difficulty
could be avoided by a change in the member's domestic
employment, reconstruction, development or social
policies.
(I) It was generally agreed that a member imposing
restrictions on balance of payments grounds should bc
permitted ta select imports for restriction in such a way
as ta promote its domestic employment, reconstruction,
development or social policies, in accordance with its
own judgment as to the essentiality of the products cou-
cerned.
(m) The Preparatory Committee agreed that if there
were a persistent and widespread application of restric-
tions on these erouads, thero should be a procedure
whereby the Organization in consultation with the Inter-
national Monetary Fund should initiate discussions with
members to consider whether other measures might aot
be taken by the countri-s with favourable or unfavourable
balances of payments or by the Economic and Social
Council of the United Nations or any appropriate inter-
governmental organization ta remove the underlying dis-
equilibriumi.
Wn) The Preparatorv Committee is of the opinion that
thi principles and procedures for restricting imports under
private trade ta safeguard a memr'jcr's external financial
position should be applied mutatis Y autandis ta tise restric-
tion (ta a greater extent thar would otherwise be
permissible) of imports by a state-xrading organization. It
should, however, bc provided that the disclo3ure of inform-
ation, which would hamper the commercial operations
of sucL a state-trading organization, would not b. re-
quired.
(o) There was general agreement for the view that iii
the early years after the war the Organization, in ;arrying
out its functions under this Article and under Article 28,
should pay due regard ta the difficulties of nost-war adjust-
ment with which the members would be confronted in
varying degrees.
(p) It is ta bc noted that under sub-paragraph (2)(a)
of Article 26 a country can apply quantitative import
restrictions ta anticipate the imminent threat of a senous
decline in its monetary reserves. Moreover it is there sug-
gested that in interpreting this principle due regard
should be had tu any commitments or other circumstances
which may be affecting a country's needs for reserves.
It foUows that a country, which is threatened with n
serious decline in its reserves and which han heavy
external payments to meet in the near future, can protect
its external financial position by import restrictions.
(q) In paragraph (I) of Article 26 it is recognised that
members may need import restrictions as a means nf
safeguarding their external financial position . . . par.
ticularly in view of their increased demand for the imports
needed ta carry out their domestic . . . development
A 7 '4
policies " and in sub-paragraph (3)(e) of the samne Article
it la laid down that - the Organization . ., shali not
recommend the withdrawal or gencral relaxation of
restrictions on the grounds that the existing or prospective
balance oa payments difficulties ai the member in question
could be avoided by a change in the member's domestic
. . . development . . . policies ". Thus it is clear that
a member cannot bo required to modify its riomestic
development plans on the grounds that they impose a straia
on its balance oa payznents and thus make control ai
imports necessary.
(r) ln paragraph (4) of Article 26 it is expressly laid
down that " a Member may select import for restriction
on grounds of essentiality in ;uch a way as to promote its
domestic . . . development . . . policies ", so that a
member can, if necessary, restrict tihe iMport of consumer
goods without restricting the import of capital goods.
(s) This Article will, however, prevent a member from
applying restrictions if ibt foreign exchange resources are
sufficient for it to finance aU types ai import. In other
words, tise member will bc permitted under Article 26 to
restrict only to the extent necessary to safeguard its mone-
tary reserves. Up to this point it will have to admit
imported of one class or another. Members wi1l also be
under an cODgation not to apply any restrictions of a selec-
tive character in a manner which unnecessariJy damages
the commercial interests of other members.
(t) Many of the problems which have been exarnined
in coa Dection with this Article and with Articles 28 and
29 arJ necessarily of very direct concern to the Interna-
tional Monetary Fund and, to a less extent, to the Inter-
national Bank for Reconstructiou and Development. Trade
restrictions applied to safeguard external financial resources
will inevitably be of common interest to the International
Trade Organisation and to the International Monetary
Fund. In particular, since it is generally agreed that trade
restrictions should bo avoided whenever possible, the ques-
tion arises of the possibility of alternative means u ider the
procedures of the Fund and the Bank ior meeting a dis-
equilibritlîn in balances of payments.
(u) In considering these pioblcms the Preparatory Com-
mittee has been much helped by the benefit of the vic.vs
of the observers fiom the Fund and the Bank. It il
generally felt that it would bc of great assistance to the
work ai the Preparatbry Committee if the Fund and the
Bank could bh invited to btudy Articles 26, 28 and 29
with a view to putting their considered opinions on these
issues before the Second Session of the Preparatory Com-
mittee.
(v) One delegate suggested to the Preparatory Comn-
mittee that there should bh amendments providing for (a)
broadening the criteria under which restrictions could bh
imposed for balance-af-payments reasons, (b) eliminating
the pravisan for complaints by members against such
restriction maintained by other members, and (c) the use
oI quantitative restrictions as a means for creating favour-
able conditions for the industrial development of an
economically undeveaoped country. It was generally
agreed that these proposals to soane extent had been met
in Chapter V and in Chapter IV and that further changes
would expand the use oi quantitative restrictions too far.
3. Non-disçciminatory Administration oa Quantitative
Restrictions.
(a) The Preparatory Committee considers that there
should he a genera; rule for non-discrimination in the use
of quantitative restrictions, but that there are certain neces-
sary exceptions to this general rule.
(b) In applying the principle of non-discrimination to
import restrictions, it is thought that the following repre-
sent a desirable set ai principles which should also apply
to tariff quotas:
(i) Wberever possible a global quota should be fixed
in advance for the importation oi the product in ques-
tion;
(à) Wbere (i) i not practicable. restrictions might bh
applied by import licences without a global quota;
(iii) Whether issued within a global quota or without
a global quota, import licences or permits should, in
general, not tie the import to a particular source of
supply;
(iv) Where (iii) is not practicable, the restrictions
right take the form of a quota allocated among the
various sources of supply. I this case th,. general
principle should bh to alocate the quotas on comersercial
principles such as price, quality and customary aurces
of supply. These commercial principles might be applied
in principle in either of two ways-firotly, agreement
wiglht be sought between the exporter who have a sub-
stantial interest in supplying the product, and secondly,
where this course is not reasonably practicable. reference
should be made to shares i» a previous representative
period, due account being taken of special factura which
may have affected the trade ln the product. The mem-
ber should make the initial decision about the shares
of such quotas but sliould ti prepared to enter into con-
sultations about adjustments;
(v) No conditions should bc imposed such as would
prevent any member roun making full use of its share
in any quota, subject to importation being made within
any prescribed period to whsch the quota snay relate.
(c) It was generally agreed that members should under-
take to suppIy adequate information about the adminis-
tration of their import restrictions. In cases in which
import licences are used, the Preparatory Cornmittee cou-
siders information should bh supplied, at the request of
any niernbzr having a substantial interest in the trade,
about the administration of the licenceà and about the
licences granted, but there should be no obligation to reveal
the names of importing or supplying firms. Were quotas
are lixed, public notice should be given in advance of the
size of the quota and where the quota is allocated among
supplying counties all members having an interest in
supplying tIe product should be given prompt notice uo
the shares as thc various countries i the quotas.
(d) It was generally agreed that there must Le the
following exceptions fromn the general rule of non-discrim-
ination n the application ai quantitative restrictions
(i) Members should not be precluded from the im-
position of restrictions which have the equivalent effect
of the ê.change restrictions whicb a country could im-
pose under Section 3 (b)aof Article VIt of the Articles
of Agreement of the International Monetary lFund
(scarce currencies clause).
(ài) A group of territories, which have a common quota
in the International Monetary Fund, should be able to
impose restrictions agaLnst imports from other countries
in order to protect their common monetary reserves.
(iii) Memberg should bo able to assist, by measures
not involving a substantial depa-ture from the general
rule of non-discrimination, a country whose econDmy
has been disrupted by wa: but tWs freedom should
ouly extend until 31 Dcctmb-r I951.
(iv) Some element of discrimination in import and
export restrictions may bo needed in order to carry out
inter-governmental commodity agreements undor theo
commodity policy provisions o! the Charter or in order
to apply the restrictions, wbch bave been suggested for
the post-war transitional period to ensure au equitable
distribution among consuming countries of products in
short supply.'
(o) A more difEcult problem arises in the treatment of
inconvertible currencies. It is thought that the objective
is to establish multilateral trading over as wide an area
as possible and that for this purpose it is desirable that
currencies. should become convertible as soon as is safely
possible. Bat so long as some currencies remain in-
convertible there is difliculty in reconciling the full applica-
tion of the principle of non-discrimination with the courses
of action which are imposed upon members by their
external financial situations. This difficulty is oi course
fully recognized, as far as exchange restrictions are c-n-
cerned, in the provisions of Article XIV of the Articles
of Agreement of the International Monetary Fund. The
problem here is to make appropriate provision for this
difmculty ia the trade field.
(fl The nature of the difficulty may be conveueently
expressed by considering the position ai country A, whicg
bas a favourable balance of payments, with country B
which has an inconvertible oarrency. This favourabls
balance can be settled only by
(i) Accumulation by A of inconvertible balances of
B's currency or by a loan to B in A's currency; or
(li) an increase in A's imported from B; or
(iii) a reduction of A's exports to B.
(g) If A ix unable or unwilling to make the appropriate
boan under (i) and if the costs of B are too bigh to enable
A to accept B's export vrithout infringing the rule of
non-discrimination, the only possibility is a reduction in
A's export to B. It was argued that A can always
avoid this difficulty by selling the export, which would
otherwise have gone to B, to countries with convertible
* See sub-paragraphe (s) (c) and (i) oa Section C. '5
currencies and there was general agreement that were
the majority of countries had convertible currencies, t1his
would normally be the case. It was argued, on the other
hand, that countries, which normally conduct a large
proportion oa their trade with countries whose currencies
are inconvertible, might bc obliged ta restrict their trade
substantialUy because of the limited import capacity of
countries with convertible currencies, and that conse-
queutly the additional purchase of imports from country
B, even on a discriminatory basis, migbt bh less restrictive
of world trade than the full application of non-discrimina-
tion. It was furthermor' argued that any provisions
made ta deal with this general problein should also cover
thU problem, of balances of inconvertible currencies accu-
mulated before the entry into force oa the Charter.
(h) It was agreed that in any case meinbers should be
entitled tu attach such. conditions ta their exports as
would bh necessary. to ensure that an exporting country
would receive for its exports its own currency or thU
currency of any member of the International Monetary
Fund specified by the exporting country and thus avoid
the danger of being, in effect, compelled ta accumulated
balances of inconvertible currency.
(t) It is considered that thoro must bh some provision
also ta deal with the corresponding import problomas, but
it is felt that there are serious dangers i4 a wide
exception from the rule of non-discrimination even during
the post-war transitional period. If such a period is at
ail prolonged, it would permit thU establishment of
bilateral patterns of trade and discriminatory practices
generally which would effectively prevent the development
of multilateral trade, a central objective of the Charter.
It was argued that such arrangements would tend ta
become self-perpetuating and that their possibili ty would,
in effect, delay the achievement of sound and lasting
equilibrium in the balances of payments of the countries
with inconvertible currencies and would thus postpone
for an indefinite period their ability ta make their curren-
cies convertible. On the other hand it was argued that
if countries with inconvertible currencies bad ta face the
full rigour of international competition, they would bh
forced ta restrict their imports from all sources ta a
degree whicb would seriously impair their prospects of
recovery. It was further contended that the existence of
sane provision ta enable countries with convertible curren-
cies ta apply discriminatory restrictions in special circum-
stances would encourage countries with inconvertible
currencies ta take the risk of accepting convertibility
at an earlier stage than they would have otherwise been
prepared ta do.
(I) It was generally agreed that the difficulty may bu
solved by permitting discriminatory import restrictions
under the two following conditions, both of which would
have ta be fulfilled:
(i) tiat thU discrimination should increase the mem-
her's total imports above the maximum levea whicb
would be possible in the absence oi the discrimination.
The intensity of the import restrictions, which a men-
ber is per;nitted ta impose under Article 26, iS deter-
enined by the pressure upon its monetary reserves. This
fixes the amount of import which it can afford front
countries with convertible currencies. The purpose
of this condition is ta ensure that a member wiUl
purchase as miech as it can afford from these sources,
and that it will not bh permitted to discriminate unless
this would enable it ta secure additional iraporta from
countries with inconvertible currencies. It would thus
be impossible for a member ta decrease its total import"
front countries with convertible currencies by discrimi-
natory restrictions.
(il) that the discrimination should either correspond
ta exchange restrictions permissible under the Articles
of Agreement of the International Monetary Fund or
should carry with it the approval of the Organization
in agreement with the international Monetary Fund,
which is the inter-governmental organisation which is
competent in this field. The member would not be
entitled ta impose discriminatory import regulations.
which did not have equivalent effect ta exchange re-
strictions permitted ta the member under the Articles
of Agreement of the International Monetary Fund, or
under the terms of a special exchange agreement be-
tween the member and the Organizatrnn. If a member
were nat imposing exchange restrictions, it would bh
able ta impose discriminatory import restrictions in
special circumstances only with the prior approval of
t he Organization in agreement with the Fund.
* See sub-paragra.ph 4 (e) of this Section.
56308
(k) In view of the advantages, which may be expected
tu accrue ta the trade of ail countries froan the other
provisions of the Cbarter, it is gencrally considered appro-
priate that the discriminatory element in any trade restric-
tions applied under this provision (or exchange restrictions
having equivalent efIect) should, froun the outset, bo
liable to be withdrawn or rnodified if the Organization,
aiter consultation with the Internatic;nal Monetary Fund,
finds that they were being applied inconsistently with
the exceptions provided under this Article or ii a manner
which discriminated unnecessarUly against the trade of
another member. It should, however, always be possible
for a member ta seek the Organization's prior approval
for Itt action and in this case it would not be open ta
challenge ta tahe extent to whioh such approval was given.
Where the member la not imposing exchange restrictions,
this prior approval would be obligatory.
(1) It was suggested that if there were an abrupt or
serious decline in effective demand by one or more
members, the imposition of non-discrîninatory import
restrictions under Article 26 by other members might in
some cases bh more injurious to world trade than discrimi-
natory restrictions, and that provision should be made in
this Article for permitting such discriminations, if the
Organization considered that this general situation existed
and warranted thoir application. After consideradon it
was agreed that the Organization would have adequate
powers under the revised Article 35, taking into account
Article 8 of Chapter II of the Charter (Employment Pro.
visions), to meet this contingency.
(m) A main objective of the Organiz3tioo ai. ta achie
the earliest possible elimination of all discrimi, .; rns -.uuîich
restrict the expansion of world trade. Thc z aiiculties
whicli the Article is designed to meet may bo hoped to
narrow very considerably, as an increasing number of
members accept the obligations of Sections 2, 3 and 4 of
Article VIII of the Articic5 of Agreement of the Inter-
national Monetary Fund. It is, therefore, generally agreed
that the provisions of sub-paragraphs (i) (d) (iii) and (iv)
of this Article should be reviewed when three-quarters of
the members of the Organization have made their curren-
cies convertible, or in any event, not later than 3Z
December 195z.
4. Exchange Arrangements
(a) The problem of foreign exchange arrangements in
relation to the Organization is a question of great import-
ance, since commercial obligations can be fundamentally
afected by such matters as exchange contrai, exchange
depreciation, multiple exchange rates, etc. The Inter-
national Monetary Fund is the specialized agency, which
has been created ta deal with these matters, and it li
desirable as far as possible ta avoid overlapping functions
between it and the Organization. Where trade matters
and exchange matters inevitably overlap, it is desirable
that there should bh the maximum consultation and co-
operation between the Fund and Organization.
(b) The Preparatory Committee is of the opinion that
members should undertake not ta seek by exchange action
ta frustrate the purposes of this Charter, nor ta seek by
trade action ta frustrate the purposes of the Articles of
Agreement of the International Monetary Fund.
(c) The problem would be much simplified if all the
members of the Organization were also members of the
International Monetary Fund. No d cision was reached
on the question of requiring common membership, however,
as some delegations felt it may well bh necessary ta allow
freely for independent membership of thc Organization and
of the Fund.
(d) Consideration was, therefore, given ta the question
whether special provision sbould not bh made for a country
whicb wished to become a member of the Organization
without becoming a member if the Fund. It le generaIly
recognized that soane such provision may prove ta bo
necessary, but the Preparatory Committee considers that
examination of this issue can usefully wait until the
probable membership of the Organization and of the
Fund become clearer. Pending this further examination,
Article 29 has been expressed in a way which implies
that members of thU Organization would in gezgeral be
expected ta be members of the Fund, but that mearn
could bh provided fcr non-.iembers of the Fund to join
the Organization.
(e) It is thought that if the general principle were
adopted that members of the Organization should also
bo members of the Fund, opportunity must nevertheless
be leit for a member of the Organization to exercise the
A 8 right, which it has under the Articles of Agreement of the
International Monetary Fund, to withdraw at short notice
from the Fund-a right which would ho compromised if a
member of tho Organization were required to be a nemnber
of the Fund, rnd were not free to withdraw from the
Organization at short notice.
(J) It is generally considered appropriate that any
member of the Orgqnization, which is not aléo a uleuber
of the Fund, should not have full freedom ii exchange
matters, since by exchange arrangements it might Irustrate
its trade obligations. There is wide uneasure of agreement
for the suggestion that such a member should enter into
a special agreement with the Organization in exchange
matters, which would provide that the purposes common
ta the Organization and the Ftind would not be frustrated
as a result of action in exchange matters by the member
in question. In such cases the Organization would accept
the opinion of the Fund whether action by the member in
question in exchange matters were permissible under the
terms of the special exchange agreement and the member
would undertake to provide the Organization with the
information necessary for reaching such.a decision.
SECTION »
Subsidies
z. Subsidies on Pritnary Producis
(a) In general the intention of Article 25 nf the United
States Draft Charter is ta give members, whose interests
are prejudiced by subsidization, the right to a full inter-
national consideration of their case, to oblige subsidizing
members to participate in such consideration and to provide
for limiting subsidization su that its prejudjSial eflects may
be reduced.
(b) As concerns primary products, the Article recognizes
that, when trade is distorted by the special difficulties
referred ta in Chapter VI of the United States Draft
Charter. The procedures of that Chapter rather than those
>f this Article should apply.
(c) In view of thU fact that export subsidies are
recognized as being more likely to distort trade than so-
ralled " domestic " subsidies, the Article looks toward the
early elimination of the former in most cases but merely
ta the limitation of the latter. Nevertheless it is empha-
sized that the Article envisages graduaI rather than sudden
modifications of subsidies in cases where such modification
calls for substantial economic and social adjustment in the
territories of affected members.
(d) 'Me pc;nts considered by the Preparatory Committee
in preparing a revision of the text of Article 25 of the
United States Drait Charter are indicated below:
(i) Wherever the Draft Charter has words such as
injury to the trade of a member ", it was thought
advisable to say " prejudice ta the interest of a
member ". It was felt that this wording would in
practice facilitate application.
(ii) The word " limiting " in the last sentence of
paragraph (z) of the revision is used in a broad sense to
indicate maintaining the subsidization at as low a level
as possible, and the gradual reduction in subsidization
over a period of time where this is appropriate.
(iii) One delegate suggested that the Drafting Com-
mittee be requested to consider adding, after the words
" imports of such product " in the first sentence of
paragraph (z) of the revision, the words " or of closely
competitive products ". Another delegate declared
that he was not in a position to judge whether such a
request should be made.
(iv) It is suggested that the Drafting Committee
consider whether it is necessary to retain the cross
reference clauses beginning, " Except as provided " at
the beginninBg f thU same paragraph.
(v) The words added at the end of the second sentence
of paragraph (2) of the revision are designed to make
it clear that payments to producers from the proceeus
of domestic taxes from which export products are
exempted are looked upon as " domestic" rather than
export subsidies. The added words, and the sentence
to which they are attached, are essentially explanatory
of part of the first sentence of paragraph (z).
(vi) The. Substitution of the phrase " a complete
analysis of the practices in question and the facts justify-
ing them " for the words " an explanatory statement ",
in the fourth sentence of paragraph (2) of the revision
is associated with a discussion of possible resu.es of the
determination mentioned in thie following sentence. It
is feit that under certain circumstances some export
subsidies might bh justified as beinBg consistent with thU
objectives of the Charter.
(vii) It was considered whether tho words " the like
product" in thU first sentence of paragraph (2) could
be construed in such a way as ta permit escaping the
provisions of this paragraph in cases when tUe exported
product differs slightly froin a product sold in the
domestic market. It was decided, however, that thla
would be a case falling under the terms of Article 35
and thus that thU measure, whether or not in conflict
with the terms of Chapter V of the Charter, would
irnply? nullification or impairment of the Chapter. The
subsidizing member would, therefore, bc obliged ta give
sympathetic consideration to the views of other lu-
t"rested members and, assuming good faith, the
problem could probably bh solved. The implications of
qualifying words, such as " the like or siinilar pro.
duct," might bh considered by thU Drafting Committee.
(viii) Certain delegates felt that the period of three
years prescribed in thU thlrd sentence of paragraph (z)
of the revision for giving effect to the provisions oa that
paragraph was unduly long. It was agreed that the
question of shortening this period should be taken up
at a later stagg, after the countries had had the oppor-
tunity of considering the effect of such a shortening on
their domestic legislation.
(ix) One delegate made the following reservation in
regard tu paragraph (2): - The adoption or mainten-
ance of subsidies or similar measures ta promote the
production or exportation of certain sp#lcia1 commo-
dities in a member country which has suffered from a
chronic adverse balance o! payments should bh allowed
nntil such a time as its equilibrium in the balance of
payments will have been actually attained, when the
question ai mach measures may bc reconsidered through
consultation by Uic countries concerned." This dele-
gate aisa suggested Uiat paragrapli (3) of the revision
should ho amended so that "ctbe share of any such
special export in world trade, whether or not acquired
as a result of the use of subsidies or similar measures,
should not be subject to limitation by its share in world
trade during any previous representative period, exceDt
when it is rave ta ho part of a burdensome world
surplus." Certain delegates, however, advised against
these amendments because of the adverse effect which
such subsidies would have upon tUC trade oa other
countries.
(x) Paragraph (3) would render it possible for in-
terested members. in consultation with the Organiza-
tion, to operate a domestic stabilization scheme for a
primary product if the stabilized domestic price at
times exceeds the export price and if, through effective
production controls or otherwise, the scheme operated
su as not ta prejudice the interest of members. Some
delegates thought that this was implicit i paragraph
<2) and that the explicit exemption under paragraph (2)
might render it more difficult ta apply paragraph (2)
so as to cover other legitimate exceptions. Accord-
mngty empty square brackets were added at the end
of the new paragraph to indicate that suggestions
may be forthcoming to cover other exceptional cases.
(xi) One delegate raised the question of whether the
roraparison made in paragraph (3) should not bs
between the export price and the price paid to domestic
producers, and requested that a later opportunity b.
given ta consider this matter.
(xii) Sub-pazn;raph (4) (a) of the revision indicates
that thu consultative procedure ai Chapter VII witb
râtcLence to primary products in the case of which
special difficulties may arise, may be applied when sub-
sidies on such products call for determination by con-
sultation under the terms of paragraph (z) or (2). ID
thic connection and in relation ta the provisions of
paragraph 3 of the United States Drait Charter, it is
suggested that the Drafting Committee consider Article
30 in connection with Chapter VII and vith paragraph
t6) of Article 66, with a view to sixnplifying the texte
in question. They are intended to provide firstly, a
nnilorm type of consultative procedure for dealing with
primary comrodities in the case of which special dif5-
culties may arise either in the initial period of transition
or thereafter, and secondly, an adequate consultative'
procedure for dealing with non-primary products
according to the general intentions of Article 30 ex-
pressed in the opening sentence of this Section. 17
(xiii) One delegate announced that he would reserve
his position regarding the provisions of sub-paragraphs
(4) (b) and (c) of the revision.
(xiv) One delegate expressed the opinion that the
Drafting Committue should consider the provisions in
Article II of the United States Draft Charter in con-
nection with Article 30. He felt specially that Article
11 should, in the same way as sub-paragraph (z) (a) of
Article 25 does for quotas, provide for the legitimation
of subsidies, if these were accepted after consulta-
tion by interested members.
2. Subsidies on Manufactured Goods
(a) The question of subsidies on manufactured goods
was studied in the light of a document submitted by a
delegate when a proposal that the existing provisions of
the United States Draft Charter be altered so as to pro-
vide leeway for the use of measures to assist developing
industries under certain circumstances was being dis-
cussed.
(b) It is pointed out in thie document that Article 25
of the United States Draft charter " would permit, with-
out serious qualification, the use of governmental sub-
sidies for the purpose of establishing and expanding a
manufacturing industry." The following requirements
laid down in Article 25 in respect of such subsidies, it lu
stated, are moderate and few:
(i) If the subsidy does not reduce imports, no require-
mente are made.
(ià) If the subsidy does reduce imports, the only re-
quirement (subject to what is said below) is that it is
te be reported to the International Trade Organization
together with an indication concerning the probable
effect of ile subsidy and the reason why it is necessary.
(iii) Even if the subsidy should cause serious injury
to international trade, the only requirement lu that the
members granting it discuss with members, whose in-
terest is seriously prejudiced, the possibility of limit-
ing the subsidy.
In view oa these facts no change in the text of the
Article on Subsidies on Manufactured Goods as it appears
in the United States Draft Charter was considered neces-
sary.
(c) One delegate drew attention to the fact that ouly
the richer countries were able adequately to support their
industries by means of subsidies.
SEcTION Z
State Trading
r. Non-discrintinaaory Administration ot State-Trading
Enterprises.
(a) The provisions of Article 26 of the United States
Draft Charter are, on the whole, acceptable to the Pre-
paratory Committee, subject to the following modifica-
tions:
(i) It was considered that this Article, in conformity
with certain others in that Charter, should be modified
so as to refer to goods only. Hence the words " or
services " were deleted in the first paragraph.
(il) In paragraph (z) of Article 31 the words " dis-
tribute or produce " in the first sentence have been
placed in square brackets because certain delegates con-
sidered that it should be possible for a member govern-
ment to confer exclusive or special privileges upon cer-
tain types of enterprise (e.g. for carrying on certain types
of manufacture), without at the same tirne exercising
effective contrai over the trading operations of such
enterprises. In order to make their point of view clear
these delegates wished to add in square brackets the
words " and exercises effective control over the trading
operations of such enterprise,". Other delegates, how-
ever, considered that in such circumstances it wt.ald be
proper that the government conferring the exclusive or
special privileges should assume the responsibility of
exercising effective control over operations affecting the
external trade of such enterprise.
(iii) The illustrative examples of " commercial con-
siderations " by which the state-trading enterprises of
a member should be guided in fulfilling their obligation
of non-discriminatory administration. were supple-
mented to include " differential customs treatment ".
(iv) Attention was paid to the nature of the " specific
and detailed information " which the member maintain-
ing a state enterpris- was required to provide by the
terms of the Charter in order to make possible a deter-
. mination whether the trading operationss of the enter-
56308
prise fulfilled the requirements of paragraph (z). It was
argued that such an enterprise should not bu calleil
upon to provide more information thau a private enter-
prise trading under the sarne or similar conditions.
Accordingly, the last sentence of paragraph (i) was
amended sa as to faul in line with the provisions of
Article 35 of the Charter.
(v) Since paragraph i of Article 8 of the United States
Draft Charter had been atuended by deletion of the pro-
vision relating to governm ntal contracts, it was fait
necessary to ilsert a new paragraph in Article 3I deal-
itig with the subject. A distinction was made as between
governmental purchases for resale, which are covered
by this paragraph, and purchases for governmental use
and not for resale. The discussion on this latter point
was prom ted by the consideration that in soma coun-
tries purrcases of industrial and other equipment of
various types from abroad might well bc effected through
the medium of state enterprise and that, while it might
be difllcult in certain circumstances to observe the rule
of ` commercial considerations" for sucb purchases,
it was at least necessary to provide that the rule of
` fair and equitable treatment " should apply but that
in applying it full regard should br given to all rele-
vant circumstances. The question was raised whether
purchases on the basis of the so-called " tied loans "
would be considered to conforni with this rule. The
view was generally held that a country receiving a loan
would bu free to take this loan into account as a
"commercial consideration " wheu purchasing its ro-
quirements abroad. The position oi countries making
such " tied loans" was another question.
(vi) Two changes were made in the definition of a
state enterprise in the last paragraph of this Article.
For greater clarity, the word " directly or indirectly "
were deleted and the words " effective control " were
substituted for the terni " a substantial measure of
control
(vii) It was agreed that when marketing boards buy
or sell they would come under the provisions relating
to state-trading; where they lay down regulations
governing private trade, their activities would be
covered by the relevant Articles of the Charter. It
was understood that the tornm " marketing boards "
is confined to boards established by express govern-
mental action.
2. Expansion of Trade by Étale Monopolios of Individual
Products.
(a) The principle underlying Article 27 of the United
States Draft Charter, beang the counterpart of para-
graph I of Article i8 of that Charter, is generally accept-
able to the Preparatory Committee. The principal changes,
which are recommended and which are listed below, serve
mainly two purposes-firstly, to provide a more accurate
basis for the determination of the " negotiable margins ",
and secondly, to take into account the special nature of
fiscal monopolies.
(b) The references to Article 33 of the Charter in the
first sentence was provisionally removed.
(c) The terni " landed coFe, before payment of any
duty, of such products purchased by the monopoly from
suppliers in member states " was substituted for the words
"the prire at which such product is offered for sale to
the monopoly by foreign suppliers," since it la considered
that a mere offer doas not provide a firm basis for the
calculation of the margin. A similar change was made
in respect of exports. Moreover, since in certain coun-
tries imports by state monopolies are subject to custom
duty, it was considered appropriate to choose a definition
which, while taking Into account all costs up to the
moment of entry, excluded duties and other charges (e.g.
internal taxes, transportation and distribution). The Pre-
paratory Committee agreed, however, that it would be
open to countries to negotiate, if they wished, a margin
representing tbe difference between the total cost of a
product (i.e. including internaI taxes, coits of distribu-
ion and transportation etc. and, wbeze appropriate, pro-
fit) and the xrr-apoly's first-hand selling price in the home
market.
(d) It li considered that, when calculaing the marein
under (b) of Article 27 of the United States Draft Charter.
allowance should be made for a margin of profit. That
margin, however, should not be so excessive as to restrict
the volume of trade in the product concerned. Accord-
ingly the word " a reasonable margin of profit" were
added.
Ag 18
(e) lt was considered appropriate that, in applying the
inargin detorminod by negotiation, landed costs and soli-
lng prices might be averaged over a recent period of years,
and a sentence to that eHect was added.
(f) The roferonce ta Section C (Quantitative Restric-
tions) was deleted and the words " subject to the other
provisions of this Charter " substituted. A further modi-
fication was made no nsa to permit of account being taken,
in the casm of import, of rationing of the product to
consumer, and in the case ai exports, of the quantities
available for export.
(g) Attention was paid ta the special position oa mono-
palies operated for revenue purposes. It was contended
that their profit (and consequently the mnargins Lbetween
eir " landed casts" snd seliJng prices), had ta be re-
garded as a form of internal taxation. A new paragraph
was added to cover the case of sucb monopolles.
(h) Ote delegate wished ta reserve bis position generally
upon this Article.
3. Expansion of Trado by Complet. State Monopolies of
Import Trade.
Although the substance oa Article g8 of the United States
Draft Charter was not discussed, the Preparatory Com-
snittee bas decided that Jt should remain provisionally
as it appears.
SltCTION P
RelaSions with Non-Members
l'ho Preparatory Committeo considered Article 31 of the
United States Draft Charter which is concerned with this
subject but decided to leave the question for consideration
at a later stage.
CHAPTER IV
Rlestrlctive Business Pructices
SECTION A
Policy towards Restrictive Businoss Practices
z. The Preparatory Committoe bas not attempted tu
define precisely what is meant by restrictive business
practices but has taken thu phrase to mean broadly those
practices in international trade which restrain competition,
limit access to markets, or fostdr mouopollstic control
and thus substitute the decisions of single enterprises or
groups of enterprises acting in concert and exercising mono.
polistic power for the forces of the market in the determina-
tion of price levels, volume of production and distribution
of products. It was found convenient to refer to the list
of such practices 'n paragraph 2 of Article 34 of the
United States Draft Charter, which, though not exhaustive,
includes the mont common types of such practices.
2. In preliminary exchanges of views it was found on
the one hand that soue delegates regarded these practices
as invariable and autouiatic barriers to a free and expand-
ing system of international trade and in conflict with the
obligations wbich it w.s1 proposed members of the
Organization would assume under other chapters of the
Charter. On the other hand some delegates pr .eived
considerable advantages in their wise use, particularly in
introducing stability in industries requiring large invest-
ment and depending mainly on external markets. It was
also urged that restrictive agreements were frequently
accompanied by exchanges of technical information which
facilitated establishment of new industries in îie less
industrialized countries.
3. It was found, however, that, despite this wide
divergence of view on the significance of these practices,
there was a unanimous belief that they vere capable of
having harmful effects on the expansion of production and
trade and the maintenance in ail countries of high levels
ot real income and on the other purposes of the Organiza-
tion, whether, as some felt, by their very nature, or as
others maintained. only in their wrongful use. Accord-
ingly it was agreed that ail members oa the Organization
should undertake to take aU poasibre steps within their
jurisdiction to prevent restrictive practices having barmifui
effects on the purposes of the Organization.
4. It was clear tu aUl delegates of thu Preparatory Com-
mittee that governments would be unlikely ta agree il
their judgment of the effect of particular practices and
that an undertaking of thu kind just referred to would
leave open the possibility of one member allowing or
approving a monopolistic arrangement or practice, which
would be felt by another member to injure the purposes
of the Organization. Accordingly it was agreed that the
Organization should be empowered tu receive complaints
aud to investigate them. It was fedt that this was thi
most important function which the Organization could
discharge in this field.
5. It was agreed that thu procedure of complaint and
investigation should apply equally whether tie practices
were pursued by private or by public (i.a. government-
owned or controlled) enterprises or by a mixture of the
two, so far as agreements are concerned, but thu procedure
should apply to the practices of single monopolistic enter-
prises only when these are privately owed. The problem
of the public enterprise acting independently should, it is
thought, bo dealt with under the provisions governing
state-trading. Care will have ta bo taken ln any event that
ultinaLtly the provisions regarding restrictive business
practices and regarding state-trading are in harmony.
SECTION B
Procedure with Respect to Complaints and Confevences
r. The Preparatory Committeo considers that complaints
ebho'ld be received and examined by the Organization
whether tley come from members or from affected por-
sons, organizations or business enterprises, provided in
the latter cases that the responsible government approves
tce consideration of the complaint by the Orgamzation.
The ste s, which the Organization should take, should bu
on the rouowing lines:
(a) At the request of a member it should. at its dis-
cretion, bu free ta arrange conferences between members
to consider a specific practice whichr the member fuels
bas or is about tc have a barmful effect on the purpose
of the Organization.
(b) It should consider written complaints, obtain
minimum information both from the complainant and
fromn other inembers concerned and then determine
whether a further investigation il necessary.
(c) If it is satisfied that thero i a prima face case
for further consideration, then it should obtain informa-
tion from ail members which wisb ta subinit sucb
information, and it should aford opportunity for any
member and for the commercial enterprises alleged to
have been zngaged in the pract'f e to bu heard by it if
they so wisb.
(d) The Organization should then determine whether
the practice complained of ias the harmful effect feared
and, if so, it should report to all members !ts findings,
requesting theem ta take action; to prevent the coû-
tinuance or recurrence of the practice and at iLs dis-
cretion recommend specific remedial measures. Each
member would, of coure, take action in accordance
with its own laws and procedures.
(e) The Organisation should then prepare a report
on the case.
SECTION C
-tudies relating to Restrictive Business Practices
z. It was fait that it was necessary that the Organizsa-
tion should give further study ta the subject, as it- was
clear that it was one of extreme difficulty on which other.
was no unanimity of opinion among the various countries.
It is considered, therefore, that the Organization should
study types of restrictive practices, and conventions, laws
and procedures relevant ta these practices. It should
obtain information from members to assist It in its studies,
and it should bu at liberty to maie recommendations con-
cerning conventions, laws and procedures so far as these
are relevant to the obligations which members will undor-
take.
2. The Organization shouJd also be empowered to
arrange conferences at the request of members fer general
consultation on thu problem.
SETIaON D
Obligations of Members
Tire Preparatory Committec agreed that mumbera
should take ail possible steps to prevent commercial enter-
prises within their jurisdiction from engaging in practices having harmful effects on the purposes of the Organiza-
tion. Members should also conduct investigations in order
to be able to furnish information requested by the Organ-
ization in connection witb complaints, though thcy should
be free to withhold confidential information affecting
national security or production techniques. It vas felt,
however, that in the obligation reimiring members to
furnish this information, there should be some provision
whereby the legitimate business interests of particular
enterprises should be safegua;dcd as far as feasible from
possible injury, which might arise if detailed information
were to fall into the hands of their competitors or other
private persons. In considering the initiation of action
appopriate to their system of law and econonlic organize.
tion memberss should also talce the fullest account of any
recommendations made by the Organtization following on
its investigation of a particular complaint. They should
report to the Organization what actions have bueen taken.
SECTION E
Supplemnentary Enforcament Arrangements
The Preparatory Committee recognizes that members
may co-operate with each other in assisting the enforce-
ment of any provision made by other members in further-
ance of the general objectives. There should be no specific
obligation on member to take such action, but it should
be made clear that they are free to adopt this course
if they wish, provided that they notify the Organization.
SECTION F
Continued Eftectivciiess of Domestic Jfeasures against
Restrictive Business Practices
It was recognized that the responsibilities of the Organi-
zation in this field should not affect the national laws
I9
under which some countries have made general provision
for the prevention of monopoly or restraint of trade.
SrCTION O
Exceptions to Provisions of this Chapter
The Preparatory Committee considers that the procedure
previou:ily described should not apply to inter-govern-
rmental conmmodity agreements made under t;he arrange-
ments specified in Chapter VU1 of the Charter or inter-
national agreements of the kind described in Article 59
of the Charter, though tihe Organization should, at its
discretion, be empowered to maIke recommendations to
*members and to appropriate international organizations
concerning any features of such agreements which may
have harinful effects on the purpose of the Organization.
SECTION l
Geterail Observations
I. Three delegates suggested that the provisions of
Chapter VI (Restrictive Business Practices) should be
extended to cover services. One delegate stated that the
Chapter would have no meaning, if the question of re-
strictive business practices relating to se-vices such as
shipping, insurance and banking were excluded.
2. Two delegates suggested that consideration should be
given to the possibility of establishing some form of pro-
cedure for the registration with the International Trade
Organization of international combinations, agreements
or other arrangements as defined in sub-paragraph (2) (a)
of Article 39. One delegate felt, moreover, that some
degree of publicity should be given to the results of such
a procedure.
CHAPTER V
Inter-Governmental Commodity Arrangements
SECTION A
General Considerations
s. The Preparatory Committee recognizes that the con-
ditions of production and consumption of certain primary
commodities are such that international trade in these
coamnodities is subject to special difficulties not generally
associated with manufactured goods. These difficulties
arise fiomn inelasticities of supply and demand, often in-
volving the accumulation of surpluses, which cause serious
hardship particularly to small producers. Experience has
shown that such difficulties have been greatly accentuated
by booms and slumps. To the extent, therefore, that a
policy of high and stable employment is successful on an
international scale, the fluctuations in primary production
and consumption are likely to be reduced, and the special
difficulties of primary commodities correspondingly eased.
On the other hand the achievement of greater stability
in the real income of primasry psc'ducers will in its turn
assist in the general maintenance of high and stable levels
of employment. Nevertheless, in the case of particular
commodities, the root causes of difficuLies will remain,
and it is necessary, in the interests of producers and
consumers alike, to provide methods for dealing with themx
in a manner consistent with the mainte-ance of a light
level of worîd trade.
2. It was agreed that, in the absence of provisions for
broad international action, countries might bu driven, as
in the past, to resort to action restrictive of world trade
and production. The Preparatory Committee therefore
recognizes the need, in certain circumstances, for inter-
governmental commodity arrangements and for agreement
on the general principles-to govern their use. It is con-
sidered unwise to deal with the great variety of special
difficulties peculiar to individual commodities and wita.
particular methods appropriate to each and, therefore,
tae Preparatory Committee's app vach to the problem
was rather one of developing broad general principles to
cover as many types of circumstances as possible.
3. In connection with the scope of the provisions re-
garding special commodity problems that should be in-
cluded in the Charter of the International Trade Organiza-
tion, it was agreed that, subject to certain limited
exceptions, they should apply solely to primary
commodities. A primary commodity is taken to be any
mineral or agricultura.l product, including foodstuffs and
forestry products. It is suggested that the Drafting Com-
mittee might «amine the use of the teris, " primary
56308
" agricultural ", " mineral ", " commodity " and " pro-
duct" throughout the Charter in order to ensure uni-
formity and consistency in their application. One dele-
gate made a reservation that the term " agricultural
products' in this context should not include fish or
fisheries products.
4. It was considered that a statement covering inter-
governmental commodity arrangements should include the
objectives of such arrangements, the procedure for initiat-
ing and establishing them. -nd the broad principles which
should apply to them. This statement should also cover
the special circumstances in which agreements might be
used for regulating production, trade or prices and the
special principles that should apply to those operation and
administration of such regulatory agreements.
5. There was general agreement that the objective of
intr-governmental commodity arrangements should be to,
alleviate the difficulties which arise, where. adjustments in
production or consumption cannot be effected as rapidly.
as the circumstances require, by the free play of market
forces alone. Such arrangements may aix to facilitate
economic adjustments designed to promote the expansion
of consumption or a shift of resources aud manpower out
of over-expanded industries into new and productive occu-
pations. They mnay aso aim to moderate pronounced
fluctuations in prices, to provide for increased production
to muet serious shortages and to maintain and develop
the natural resources of the world and protect them from
unnecessary exhaustion.
6. With regard to this last objective. the attention of
the Drafting Committee is called to tthe fact that the
wording may requiro further examination. It is not in-
tended, for instance, that the arrangements envisaged by
Chapter VII should apply to international fisheries conven-
tions.
SECTION a
Inter-Governmental Commodity Arrangenments in General
s. The Preparatory Committec considers that inter-gov-
erumental commodity arrangements should not bc made
until there s been full study and discussion of the prob-
lems relating to the conumodity ia question. It was, there-
fore, agreed that, where a commodity is experiencing, or
is expected to experience, special difficulties, a study
group =&ay bu formed to examine the problem. If the
A zo 20
study group concludes that an inter-governmental com-
modity arrangement would be desirable, it should be fol-
lowcd by a Commodity Conference to discuss the appro-
priate measures to meet the special difficulties Where it
is agreed that adequate information is already available
about a coinniodity, a Conference mnay bc convened by the
Organization without the prior formatioa of a study group.
2. The general procedure unvisager by '!Ie Preparatory
Committee is that the lirst stcp in the developnicnit of a
commodity arrangement wouid be th_ calling of a study
group, the second, the convening of an International Comu-
modity Conference, and finally the formation of a govern-
ing body to administer the arrangement agreed upoil. The
study group frun thse outset should consist oa countries
substantially interested in the production, consumption
or trade of the crmmnodity concerned. Alter this stage
there would be increasing participation by interested coun-
tries. Finally, when the commodity arrangement has been
agreed upon, it should be open initially to participation by
any member. It should also be open to such iion-menmbers
as may be invited by the Organization, since, if the
arrangement is to ne both comprehensive and effective, it
must, of necessity, include substantially interested non-
member countries. Attention was drawn to paragraph 2 of
Article 3I of the United States Draft Charter, which
appears to be inconsistent with the participation of non-
member countries in the benefits of commodity arrange-
ments. It is recomn;euded that the Dra'ing Committee
should specify arrangements under Chapter VI as an ex-
ception ta the operation of paragraph 2 of Article 3I.
3. The question of the relationships between the Organ-
ization and specialized agencies in:erested in particular
commodities was discussed. The Preparatory Coinmittee
agreerl that the competent specialized agencies, such as
the l'uod and Agriculture Organization, should be entitled
to submit commodity studies to the Organization or ask
that a otudy of a primary commodity be made. They may
also be requested by the Organization to attend or takre
part in the work of a study group or a Commodity Con-
ference. It was further agreed t,;at when a commodity
arrangement is eventually agreed upon, any competent
specialized agency may be invited by the Organization to
nominate a non-voting member to the governing body.
4. There was agreement on certain general principles
which should apply to all inter-goveramental commodity
arrangements in order that they may conform with the
purposes of the Organization. In particular the Prepara-
tory Committee considers that there should be adequate
representation of importing and consuming countries as
well as of exporting and producing countries. It was
agreed, however, to ask the Drafting Committee to give
further consideration to the text of this provision in the
light of the Preparatory Committee's desire to give appro-
priate voice to:
(a) countries substantially interested in the produc-
tioir and consumption of a commodity but not in its
import or export; and
(b) countries which are both large exporters and im-
porters of the commodity.
5. In regard to voting on substantive matters almost
unanimous agreement was reached. The Preparatory
Committee is of the opinion that without prejudice to the
right of the countries referred to in the preceding sentence
ta an appropriate voice, the voice of importers and ex-
porters should be equal. It is felt that this was the only
way in which the interests of both importers and expor-
ters could be adequately protected. One delegation was
strongly of the opinion, however, thbet equality of voice
between importers and exporters should not be required,
but that importera should have - a number of votes
equitably proportionate ta the number of votes of the ex-
parting countries, in order that the interests of exportera
and importers shall be duly protected."
6. The Preparatory Committee stresses that cormmodity
arrangements should provide, where practicable, for
measures designed to expand world consumption. This is
particularly desirable when the need for a commodity
arrangement arises from the existence of a burdensome sur-
plus, or where increased consumptiaio would result il an
improvement in general well-being, as, for example, in
higher standards ai nutrition.
7. It was agreed that aU inter-governmental commodity
arrangements, proposed or concluded, should be given full
publicity, so that ail interested parties may bh fully in-
formed of the measures taken and of the progress achieved
in the correction of the underlying difficulties.
* Soe Article 36 of the Charter.
SECTION C
Iu er-Governzmanitai Coininodity Arrangents involving
tha Reguiation of Production, Expori, Import or Prices.
: . A distinction is drawn between those inter-govern-
miiental coramiodity arranggements, which involve the regu-
lation of export, import, production or prices, and those
which do not. The former are referred to as regulatory
agreements. It was feit that regulatory agreements should
bu used only in certain defined circumstances arising out
of difficulties which would not be corrected by normal
market forces alone, when a burdensome surplus exists
or is expected to develop, causing hardship to producers,
many of whom are srnall producers, or where special diffi-
culties have given rise, or are expected to give rise, to
widespread unemployment. In this connection it is desired
that - unem ployment - be taken in a wide sense to include
" under-employment ". It was agreed that in exceptional
circumstances regulatory agreements might also be applied
to manufactured goods. The Preparatory Committee in-
tends that one effect of this provision should be to permit
the inclusion of appropriate synthetic products within the
scope of particular commodity agreements.
2. The Preparatory Committee discussed whether regu-
latory agreements miglit bu used to deal with shortages.
It was generally agreed that such agreements, which were
made in those cases in which a burdensome surplus was
" expected to develop ", could appropriately take into
account shortage difficulties. The history of some com-
modities shows that there may bh recurring periods of
burdensome surplus and shortage which need to be con-
sidered. Some delegates would have preferred to men-
tion this specifically in the circumstances governing the use
of regulatory agreements, but it was generally felt that this
was unnecessary. It was furthermore agreed that arrange-
ments relating exclusively to the distribution of commodi-
tics in short supply should be exempted from the provi-
sions governing commodity arrangements, and, therefore,
could be concluded outside their framework. In this con-
nection, the attention of the Draiting Committee is drawn
to the discussion of the Preparatory Committee on this
subject.
3. Agreement was reached that in addition to the
general principles applicable to all inter-governmental com-
modity arrangements, regulatory agreements should bc
subject to certain additional principles. The Preparatory
Committee wishes to ensure that restrictive measures in
regulatory agreements should be used only when essential
to prevent or remedy serious dislocation or hardship, that
they should not lead to unreasonable prices and that they
should not afford permanent shelter to thc less effective and
economic sources of supply. The additional principles
for regulatory agreements concern such matters as pro-
cedure, relations between countries participating in agree-
ments and countries not participating, the assurance of
adequate supplies to meet world demand at reasonable
prices and the provision of increasing opportunities to
mnet world needs from the most effective and economic
sources of supply. In relation to the phrase " reasonable
prices" it was felt that this term should not be rigidly
defined for all agreements, as the individual Commodity
Councils would wish to decide this matter according to
the conditions relating to the particular commodity.
Certain delegates asked for further clarification of thU
term, and it is suggested that the Drafting Committee
should consider this matter. One delegate suggested
that the question of the attaLinment af a " reasonable " or
- just" price should be included among the objectives
of inter-governmental commodity arrangements. Another
delegate thought that, in determining tUe " most
effective and economic sources of supply," due considera-
tion should bh given " to tUe historian position of the
supply areas which are members of the Organization."
4. The Preparatory Committee considers that every
regulatory agreement should provide for a governing body
(Zommodity Council) and each participating country
shoula-be entitled to be represented thereon and to vote.
Subject to--ihe Principles referred to in paragrapS 4 of
Section B, vutng power may be distributed among coun-
tries according to the nat'.re and extent of their individual
interests. It was understood that regulatory agreements
might if desired provide for qualified majorities on specific
matters. Each Commodity Council should work within
the framework of the International Trade Organization,
which may appoint son-voting members of the Council
* Sec Verbatim Record of the Eighth Meeting of Com-
mittee IV. and, if so requested, a non-voting chairman. The rules
and regulations of the Councils should bc subject to the
approval of the Organization.
5. The Preparatory Committee agreed that regulatory
agreements should be subject to periodic review. They
should be effective for not more than five years subject
to renewal. Where the operation of an agreement has
failed to conform to the agreed principles, it should be
revised accordingly. If this is not possible, it should be
terminated.
6. It was agreed that there should be provision for the
settlement of disputes, and it was thought desirable that
this should be uniform through the Charter. The Prepara-
tory Committee, therefore, is of the opinion that disputes
arising out of inter-governmental commodity agreements
and not settled in the Commodity Council should be sub-
ject to Article 86 of the Charter.
SECTION D
Miscellaneous Provisions
I. In order to bring existing arrangements as far as
possible into line with the general provisions, the Prepara-
tory Commîttee agreed that members should inform the
Organization about their participation in commodity
arrangements existing at the time their obligations under
the Charter come into force, and that they should accept
the decision of the Organization on whether their con-
tinued participation is consistent with those obligations.
A similar principle should apply to commodity arrange-
ments which are in process of negotiation at the time
obligations under the Charter come into force. One dele-
gate proposed that any member should be free to with-
draw from the Organization if it considers it impossible
to be guided by the decision adopted by the Organization
in these matters and if, on appeal, the Organization does
not modify the decision in question.
2I
2. The Preparatory Committee considers that all mem-
bers of the Organization, whether party to a particular
agreement or not, should undertake to give the most
favourable possible consideration to any recommendation
by a Commodity Council for expanding the consumption
of the primary commodity concerned.
3. Agreement was reached on certain categories of inLer-
governmental commodity arrangements which would not
be subject to the provisions agreed for general applica-
tion. In particular this applies to inter-governmental com-
modity arrangements previously mentioned which relate
solely to the equitable distribution of commodities in short
supply. This would not, of course, preclude other inter-
governmental arrangements from dealing with shortages
as part of their operations.
4. The Preparatory Committee discussed the general
question of escape clauses. It is though that, where
there is unreasonable delay in the proceedings of a study
group or Commodity Conference, members miy proceed
by direct negotiations to the Conclusion of an agreement,
provided that it otherwise conforms to the agreed provi-
sions. One delegate wished to go further and felt that
there should be specific permission for vitally interested
members to proceed, where the Commodity Conference
fails to make a recommendation in favour of an agree-
ment.
5. The Preparatory Ccmmittee also discussed the way
in which the various functions outlined in the previous
paragraphs should .be allocated to the various organs of
the Internalional Trade Organization, and agreed on sug-
gestions for the consideration of the Draiting Committee,
which is requested to prepare the appropriate text.
6. Appearing hereunder are certain suggestions for the
assignment of functions and organizational relationships
as regards inter-governmental commodity arrangements,
which have been prepared by the Preparatory Committee.
Chapter VII Function
Chapter VII
Article 48,. Invitation to certain members and non-members
Paragraph (2). ta appoint representatives to a study group.
Article 48, The study group makes recommendations to
Paragraph (3). the Organization as to how best to deal with
difficulties.
Article 49, Convening of Commodity Conference ... ...
Paragraph (I).
Article 49,
Paragraph (2).
Article 50,
Paragraph (r).
Article 50,
Paragraph (2).
Article 51,
Paragraph (z).
Article 51,
Paragraph (2).
Article 52,
Paragraph (3).
Article 54,
Paragraph (3).
Article 54,
Paragraph (4).
Article 54,
Paragraph (5).
Article 54,
Paragraph (6).
Article 54,
Paragraph (7).
Article 55 ...
Article 57,
Paragraph (I).
Article 57,
Invitation to non-members ta participate in
Commodity Conference.
Receipt of studies, or of request for studies,
from specialized agencies.
Requests to specialized agencies to take part in
the work of the Commodity Conference.
Determination of whether terms are " no less
favourable ". Approval of terms of subse-
quent participation.
Invitation to non-members to participate in
arrangements.
Decision whether exceptional circumstances
exist which would justify a regulatory agree-
ment for a non-primary commodity.
Appointment of non-voting members to Com-
modity Council.
Nomination of non-voting Chairman at request
of Commodity Council.
Consultation regarding Secretariat ... ...
Approval of rules of procedure ... ... . ...
Receipt of reports from Commodity Council,
and requests to latter for special reports.
Preparation and publication of a.. review of
operations of an agreement.
Disposal of archives, etc., on termination of an
agreement.
Receipt of information regarding existing com-
modity arrangements; review and decision
regarding continued participation.
Similar function in connection with negotiations
Suggested Authority within Organization
Executive Board on the recommendation of the
Commodity Commission; the latter will
carry out actual administrative arrangements
for the study group.
Recommendations received by Commodity Com-
mission and transmitted to members of the
Organization through Executive Board.
Executive Board.
ditto
Commodity Commission.
Executive Board on the recommendation of the
Commodity Commission.
Executive Board on the recommendation of the
Commodity Commission.
ditto
ditto
Executive Board advised by the Commodity
Commission, subject to procedures established
by the Conference.
Executive Board on the recommendation of the
Commodity Commission.
Commodity Commission (Ref. paragraph 8 of
Article 66, of U.S. Draft Charter).
ditto ditto
Commodity Commission (Ref. paragraph 7 of
Article 66, of U.S. Draft Charter).
Commodity Commission (Ref. paragraph 9 of
Article 66, of U.S. Draft Charter).
Preparation by the Commodity Commission;
publication by authority- of the Executive
Board.
Documents in charge of Director-General.
Executive Board (subject to approval of the
Conference) upon recommendation of the
Commodity Commission.
Executive Board (subject to approval of the
Paragraph (2). Conference) upon recommendation of the
Commodity Commission.
General matters not specifically referred to in the Charter which involve the Organization will normally fall
within the province of the Commodity Commission in its advisory capacity to the Executive Board.
* With reference to paragraphs (z) and (2) of Article 52 it would appear that the determination whether the
circumstances in fact exist in which a regulatory agreement may be used will be made - by consultation among the
members having an important interest in the trade in the product concerned ". See paragraph (6) of Article 66 of the
Charter, read together with paragraph (3) of Article 66 and sub-paragraph 2 (b) of Article 45 of the United States Drat
...Charter. 22
CHAPTER VI
Establishment of an International Trade Organization
SECTION A
General Observations
It will be appreciated that this part of the work of the
Preparatory Committee depended very largely on the out-
corne of other work which was being done simultaneously.
For this reason it was impossible to carry many matters
concerning administration and organisation to an advanced
stage of discussion.
SECTION B
Purposes of the Organization
The Preparatory Committee considers that any discus-
siou on this subject should be postponed until the struc-
ture of the Organization cani be seen as a whole.
SECTION C
Membership and Functions
J. The provisions of the United States Draft Charter
relating to membership of the Organizstion were generally
approved. It was agreed that the original members of
the Organization should be those countries represented
at the United Nations Conference on Trade and Employ-
ment which accept the Charter by a given date or, in
the event of the Charter not being brought into force by
that date, the countries which agree to bring the Charter
into force among themselves. With reference to the ad-
mission of new members, however, the Preparatory Com-
mittee considers that the authority of the Conference to
act in this matter on its own initiative should be made
clear and that while such admission might be sponsored
by the Executive Board, the prior recommendation of
the Board should not, as in the case of the Security
Council of the United Nations, be a pre-requisite to
approval by the Conference.
2. In considering the functions of the Organization the
point was made that it might prove necessary to amplify
or expand the provisions of the relevant Article of the
United States Draft Charter to correspond with possible
new chapters of the Charter dealing respectively with em-
ployment policy and industrial development. One dele-
gate considered that the implications of the provision con-
cerning technical advice and assistance to members and
to other international organizations were not sufficiently
clear and entered a reservation that, at the appropriate
time, the responsibilities to be undertaken by the Inter-
national Trade Organization in this respect would need to
be more precisely determined. It would have to be de-
cided, for example, whether the intention was that the
International Trade Organization should employ a large
staff of technical experts or whether it should act merely
as a clearing house to which governments could turn for
assistance and advice.
3. There was general agreement to a proposal that the
International Trade Organization should not only
endeavour to bring about international agreements on
matters within its competence, but should actively pro-
mote their acceptance by members.
4. It was explained that the term arts " in the Charter
was intended to be interpreted broadly and to include
copyright for designs of many kinds. Bilateral agree-
ments under this provision would certainly not be barred
but for the most part the widest possible application was
desirable. It was emphasized that the provision concern-
ing co-operation with the United Nations in the restora-
tion and maintenance of international peace and security
was specifically intended to ensure that the Organization
would possess all the constitutional authority necessary
to enable it to assist the Security Council, if called upon
to do so. Emphasis was given also to the desirable
of co-operating closely with the United Nations and other
specialized agencies in achieving an economy of effort in
the carrying out cf the functions of the Organization.
SECTION D
The Conference
I. The provisions of the United States Draft Charter
relating to membership of the Conference, sessions, pro-
cedure and officers were approved without change. Con-
sideration was given to the question whether the Presi-
dent of the Conference should be elected annually or for
each session, the majority opinion favouring the former
arrangement on the grounds that procedural delays would
thereby be avoided in the event of special sessions being
convened. The Preparatory Committee recommnds that
when the rules of procedure of the Conference aie being
drafted, consideration should be given to the possibility
of including some appropriate provision which would en-
able a special session to be called at the request if less
than a majority of the numbers. Such a provision might
apply, for example, in connection with appeals against
decisions of the Executive Board.
2. In discussing the powers of the Conference to sus-
pend, in exceptional circumstances, obligations under-
taken by members under the general commercial policy
provisions of the Charter, it was suggested that this power
right be extended to cover all obligations under the
Charter. It was stressed that the waiving of such obliga-
tions was intended to apply only in cases of au excep-
tional nature, involving hardship to a particular member,
which were not covered by specific escape clauses. It was
finally agreed that all the obligations undertaken by mem-
bers, pursuant to the Charter, should come within the pur-
view of this general provision.
3. As regards the apportionment of expenses some dele-
gates urged the adoption of the same relative scale of con-
tributions as used in the c-se of the United Nations, on
the grounds that the difficulties attendant upon the work-
ing out of a new scale would this be avoided. How-
ever, as the decision on the United Nations scale of con-
tributions has not yet been made known and tie ques-
tion of voting in the Organization and of membership
of the Executive Board has then still to be decided, the
Preparatory Committee considers it impossible to do more
at this stage than recommend that, in the absence of
any other agreed arrangement, apportionment of expenses
should follow the general principles adopted by the United
Nations.
4. In discussing the powers of the Conference to esta'
lish the procedures required for making the determin
tions and recommendations provided in the Charter, else
delegate desired that a two-thirds majority should bc
required in important matters. However it was agreed
that it would be best to adhere to the broad principle
that all decisions, except possibly those of a very im-
portant nature, should be voted by a simple majority.
5. Since it was agreed that one of the functions of the
Organization should be to make recommendations for
international conventions and agreements on matters
within its competence, it seemed desirable that a provision
to this effect should be included among the powers and
duties expressly conferred upon the Conference. To this
end agreement was reached on a provision (based on the
corresponding article of the Constitution of the World
Health Organization) authorizing the Conference to
develop and recommend conventions and agreements for
members' acceptance, and requiring members to give much
recommendations due consideration and to decide, within
a reasonable time, e-ther to accept or to reject them.
SECTIONE
Voting and Executive Board Membership.
r. In the discussion on voting divergent schools of thought
emerged as to whether some formal provision should be
made in the Charter whereby differences in importance in
international trade of individual members would be re-
flected in the measure of control they would exercise over
the affairs of the internationall Trade Organization. One
school maintained that the democratic approach to the
problem was to allow an equal voice and vote to all
members and that the successful functioning of the Confer-
ence would depend in large measure upon a feeling of
equality. Certain delegates, however, contended that
because the International Trade Organization will be a
functional rather than a political body, it would not be
democratic to permit those with a smaller proportionate
share of international trade to overrule those whose share
was much larger, merely by virtue of their larger number
of separate votes.
2. It was also suggested that it would be anomalous to
have only one vote for countries having responsibility
for dependent territories, th e economies of which differed
radically from their own and some of which had an effec-
tive measure of autonomy in matters covered by the
Organization. The majority of delegates favoured in'
principle the system of one country-one vote, but several who did so, expressed willingness to consider alternatives.
In the course of discussion many shades of opinion were
discernible, but it is was generally agreed that at this
stage a full exchange of views was more desirable than any
attempt to reach final agreement.
3. Two broad alternatives to the United States Draft
Charter were advanced-a system of weighted voting in the
Conference and permanent seats on the Executive Board.
The interdependence of these two possibilities was
recognized by discussing them in conjunction.
Weighted Voting
4.-(a) Several delegates declared their difficulty in ex-
pressing any definite views on the subject of weighted vot-
ing without considering concrete schemnes. A paper was
subsequently circulated suggesting that consideration
should be given to a weighted system of voting both in
the Conference and Executive Board, chased on a formula
which provided for
(i) a basic number of votes for each country, and
(ii) a number of votes based on total external trade,
plus perhaps
(iii) a number of votes based on national income.
(b) It was also suggested that the incidence of voting
should be revised periodically to take account of the
changing relative position of members-a factor which
some delegates thought might be provided for by
criteria measuring potential development. A ceiling for
the number of votes which any one country might have
was subsequehtly proposed. In advancing these proposals
the arrangements made in connection with the Inter-
national Labour Organization, the International Monetary
Fund, the International Bank for Reconstruction and
Development and thc Provisional International Civil
Aviation Organization were quoted as precedents for a
differential system in connection with membership of the
Governing Body. The arrangements of the International
Labour Organization were explained by a representative
of that organization. Certain delegates thought that some
of these precedents were irrelevant and stressed the diffi-
culty of reaching any kind of formulae which would b.
acceptable ta all potential members, together with the
protection afforded to members by the requirement of an
affirmative vote of two-thirds of the Conference for decisions
on crucial issues.
(c) Otber delegates only discussed the proposaIs on the
hypothesis of a weighted system being adopted, without
prejudice to their preference for the one nation-one vote
principle. The criteria put forward were criticized on the
following grounds:
(i) Undue weight would b. given to small countries
with a large external trade at the expense of countries
with a large population whose external, as compared
with internal, trade is relatively small.
(ii) From the democratic point of view population
should be given the greatest weight.
(iii) National wealth would be a preferable criterion
to national income.
(iv) Count-ries, relatively more dependent on inter-
national trade than others, should have extra voting
strength accordingly.
(v) National income would weigh voting in favour
of members whose international trade was relatively
less important to themselves.
(vi) The interests of less developed countries would be
insufficiently safeguarded.
(vii) The methods of estimating the figures on which
the criteria depended differed considerably from country
to country.
(viii) The proposals were not clear as far as voting
on the Executive Board was concerned.
(d) This question is referred to the Drafting Committee
for the formulation and exposition of alternative schemes
of weighted voting which governments might consider
(although there in some doubt whether this function falls
within the Commitee's terms of reference).
Executive Board- Membership.
5.-(a) Many members of the Preparatory Committee.
including among their number both the sponsors and oppo-
nents of weighted voting, felt that there should be pro-
vision for permanent seats on the Executive Board for
members of chief economic importance. Several delegates,
though favouring equality of voting in the Couference,
were ready to support the principle of permanent seats
on the Board, largely on the grounds that the continuous
56308
23
support and participation of these countries was essential
to the success of the International Trade Organization.
It was suggested on the other hand that any special pro-
vision was superfluous because the re-election of these
countries was always virtually certain.
(b) A variation of the idea of permanent seats was
proposed by which membership of the Executive Board
would rotate, but with a certain number of countries
eligible for immediate re-election. This would avoid any
necessity for formal mention of permanent seats in the
Charter.
(c) It was suggested that it would bc better to establish
criteria for selecting permanent members rather than ta
name them in the Charter, though the latter procedure
was mentioned as a possibility. Various alternatives were
advanced. While some delegates thought that tests of
economic importance such as external trade and popula-
tion should be applied, others maintained that wider con-
siderations than purely economic ones should be taken
into account. Some delegates thought that geographical
criteria should be applied in conjunction with economic.
A scheme was submitted by which the seats would be
allotted for five year terms with eligibility for immediate
re-election, to the most important trading countries within
the geographical areas of Europe (2), North America (2),
Latin America (z), Asia (2), Oceania (r) and America (I)
This was opposed on the grounds that the only justification
for permanent seats was the difference in importance of
*members in international trade, a factor which was in-
depeudent of location. It was suggested, however, that
geographical considerations might be applied to non-
permanent seats.
(d) The number of permanent and non-permanent seats
was also considered. An increase of the total from fifteen,
as proposed in the United States Draft Charter, to twenty
was advocated by some delegates, though others thought
a membership of twenty too large for the smooth working
of an executive organ.
(e) The opinion was also expressed, however, that the
Board would need to work largely tbrough sub-committees
in any case. Importance was attached to the need for
relating the number of seats on the Board to the number
of members of the Organization. Some thought that the
position should be left elastic until this was known.
Various proportions of permanent to non-permanent seats
were tentatively mentioned without any particular pro-
position receiving detailed consideration or wide
acceptance.
6. The conclusions which emerged from the Preparatory
Committee's deliberations on the subject of Voting and
Executive Board Membership may be briefly stated as
follows:
(a) The majority of delegates favoured the principle
of one country-one vote in the Conference and in the
Executive Board.
(b) A minority desired detailed examination of pos-
sible schemes for weighted voting, but not necessarily
at this stage.
(c) The principle of permanent seats on the Executive
Board in some form is acceptable to most delegates.
(d) The three-year period of membership of the Board
set out in the United States Draft Charter was largely
unquestioned.
(e) No useful purpose would be served by attempting
to produce a definitive draft covering these particular
provisions, until such time as the substantive issues
involved bave been more completely resolved.
7. No firm conclusions ware reached on the following
matters:
(a) The number of seats on the Executive Board.
(b) The relative number of permanent seats (if any)
and non-permanent.
(c) Rotational membership of Executive Board.
(d) The criteria for electing members of the Executive
Board, either for permanent or non-permanent seats.
SECTION f
The Executive Board-Procedure, Powers and Duties
J. The text of the United States Draft Charter, insofar
as it concerns the powers and duties of the Executive
Board. was accepted with only two amendmnents both of
which, however, were indicative of two basic concepts,
shared by the majority of delegates, as to the general
A 12 24
statue and authority of the Executive Board vis-à-vis the
Conference on the one hand, and the Commissions, on
the other. The first amendment was to make permissive
rather than mandatory, the power of the Board to recom-
mend to the Conference the admission of new members,
thus emphasizing what most delegates felt should be the
clearly subordinate position of the former. Similarly it
was thought that the Commissions, in turn, should be
definitely subordinate to the Board and to give added
emphasis to this principle it was decided that the latter
should " supervise " and note merely " review " the
activities of the former.
2. There was a disposition, however, to allow a maxi-
mum of latitude to the Board in d-awing up its own
rules of procedure and electing its officers, though certain
specific suggestions were made in this regard to which
it was hoped due consideration would be given. These
included proposals that in certain circumstances it should
be possible for a minority of members of the Board or for a
specified number of members of the Organization not
represented on the Board, to convene a session. In
discussing the term of office of the Chairman, the desir-
ability of providing for a reasonable measure of continuity
was stressed by several delegates. Whilst, on the whole,
the advantages of annual election were deemed to out-
weigh the disadvantages, a satisfactory compromise was
found by specifically providing that the Chairmnan and
other officer should be eligible for immediate re-election.
A reservation concerning the reference to " other officers "
was withdrawn on the understanding that the term re-
ferred only to members of the Board themselves and not
to officials of the Secretariat. A proposal that the
Chairman of the Board should be able te participate in
the deliberation. of the Conference in his capacity of
Chairman, though without the right to vote, found gener-1
acceptance. It was, of course, recognized that the Chair-
mau of the Executive Board would probably attend the
Conference as a representative of his government. Never-
theless it was thought desirable to cover the contingency
of his not attending in such representative capacity and
that in any case, he should be entitled, under the Charter,
to at least the same rights with respect to participation
in tihe Conference as are accorded chairmen of commissions.
3. Agreement was reached alse on the desirability of
including in the Charter a provision under which any
member of the Organization would have the right to
appear and effectively present its case before the Execu-
tive Board, when a matter of particular and substantial
concern to that member was under consideration. The
provision, as accepted, is based on Article 3 1 of the
Charter of the United Nations but is somewhat more
precisely drawn in that it grants to the member con-
cerned, all the rights of members of the Board excep'
the right to vote. At least one delegate, however, ex-
pressed serious misgivings lest this arrangement should
hamper and embarrass the Board by precluding it from
holding confidential discussions on any subject or from
dealing effectively with matters of general application.
Another delegate suggested that the Board should not be
under any firm, obligation to invite members te attend its
sessions but should do so at its discretion.
SECTION G
The Commissions
z. The Preparatory Committee discussed the Commis-
sions in general terms, particular attention being paid to
their composition and procedure. The desirability of estab-
lishing commissions as an essential part of the structure
of an International Trade Organization to perform certain
specialized tasks was in no way questioned. There was
a tendency to treat the matter rather tentatively, largely
because most delegates felt that the structure, functions and
status of commissions and the manner in which they would
operate, could net at present be foreseen in much detail.
Various views were expressed however, as to the more
important considerations to be borne in mind.
2. The Prepartory Committee is of the opinion that
the Commissions should be subordinate te the Executive
Board. The extent to which they should operate other
than in a strictly advisory capacity is, however, a ques-
tion which it is felt cannot be fully resolved at present.
Some delegates expressed the opinion that the Commis-
sions should not be called upon te undertake responsibilities
of a semi -judicial nature and considered that, this
respect, the wording of Articles 64, 65 and 66 of the
United States Draft Charter raised certain doubts as to
the functions it is intended the Commissions should
perform. It was argued in support of this view that only
representatives of governments, not experts in their own
right, should be directly responsible for important execu-
tive and judicial decisions.
3. There was general agreement with the proposal that
the Commissions should consist of outstanding experts of
high prestige in their own fields who would operate in-
dependently of their governments. One delegate, though
agreeing in principle with this proposal, was of the opinion
that the governments concerned should in all cases be
consulted regarding appointments to commissions aad that
it should be expressly provided that not more than one
national from any country should serve on any one Com-
mission. The majority of delegates. however, felt that in
general these conditions would, in fact, be complied with
and that it was unnecessary and undesirable, therefore,
to write them inter the Charter itself.
4. The Preparatory Committee considers that in appoint-
ing members of commissions due regard should be paid
to the importance of selecting personnel on as wide a
geographical basis as possible. In this connection it was
agreed that the desirability of having different types of
economies represented, particularly in the case of the less
developed countries, should also be borne in mind. Various
opinions were expressed as to whether some or all the mem-
bers of Commission:; should serve on a part time or full
time basis. While certain delegates anticipated that the
work of at least some of the Commissions would be so
heavy and continuous that full time service might be
essential, others thought that, by becoming permanent in-
ternational officials, the individuals concerned would tend
to lose much of their intimate contact with current affairs
in their own countries and that this would greatly lessen
their value to the Organization. In this respect no nced
was felt for changing the text of the United States Draft
Charter which did, in fact, leave the matter to be decided
by the Conference. There was considerable support for
the idea that the Chairman of eacb Commission might serve
on a full time basis, and it is, therefore, recommended
that provision be made accordingly in the rules of pro-
cedure to be drawn np by each Commission.
S. The question of relationship between the personnel
of Commissions on the one band, and the Director-General
and the personnel of the secretariat on the other, gave rise
to a certain amount of concern. While it was acknow-
ledged that the secretariat should serve the Commissions,
it was suggested by a number of delegates that the respec-
tive functions, responsibilities and status of the Director-
General and of members of commissions would need to be
more carefully defined, particularly in cases where the latter
were to become permanent officials of the Organization.
The desirability of the Commissions having access to the
Executive Board directly rather than through the Director-
General is particularly stressed. At the same time, how-
ever, serious misgiving was expressed lest two separate
bodies of officials of differing status should be created within
the one Organization thus opening up the possibility of
divided authority with attendant friction and confusion.
The difficulty of attracting, on a permanent basis, persons
of the calibre required and the possible expense which this
would involve were also pointed out.
6. The Preparatory Committee is of the opinion that
these questions cannot profitably be pursued further until
the structure of the Organization as a whole begins to take
shape. Moreover the number and nature of the Commis-
sions, which might ultimately be required, cannot now be
foreseen. Agreement was reached, however, on certain
minor amendments to the relevant provisions of the United
States Draft Charter, the general purpose cf which is to
give to those provisions a somewhat greater measure of
elasticity, having regard to the uncertain requirements of
the future. Subject to the views expressed being given
proper consideration when appropriate action is taken, the
Committee regards the amended provisions as incorporated
in the agreed text as satisfactory.
7. These provisions of the United States Draft Charter
dealing with the functions of the Commissions on Commer-
cial Policy, Business Practices and Commodities respec-
tively were discussed in general terms. These particular
provisions will be examined more fully at the Second Ses-
sion of the Preparatory Committee. A proposal was sub-
mitted calling for the establishment of an additional com-
mission to deal with the " Expansion of Production,
* of. Article 76 of the Charter. 25
Industrialization and Employment." In view of the resolu-
tion regarding international action in the field of employ-
ment drafted bv the Preparatory Committee for the con-
sideration of the United Nations Conference on Trade and
Employment,* consideration of this matter is deferred
until a later date.
SECTION 11
The Secretariat
I. The Preparatory Committee feels that the struc-
ture of the International Trade Organization includ-
ing the secretariat, should be brought into the closest
possible relationship with the United Nations, for reasons
which include economy, the shortage of skilled personnel,
co-ordination of policy, prevention of overlapping, and
the avoidance of any possible separatist tendency. The
necessity of ensuring proper co-ordination with the
Economic and Social Council itself, in order to avoid need-
less duplication of work on identical or closely related
problems, was particularly stressed. Common services
and staff conditions for the various international economic
secretariats now being built up or in contemplation were
advocated wherever possible.
2. Some delegates thought that, with respect ta certain
phases of its work , the International Trade Organiza-
tion might make appropriate use of the economic secre-
tariat of the United Nations, and that it would be an
advantage from this viewpoint if the International Trade
Organization were located in the same place. Most dele-
gates, however, were not prepared to offer any definite
views on the question of the site at this stage.
3. In general it was agreed that detailed considera-
tion of this question of interlocking stafI arrangements
would be premature and that the Secretariat of the
United Nations should be asked to furnish relevant infor-
mation and suggestions for consideration at the appro.
priate time. Certain preliminary observations and pro-
posais concerning the co-ordination and integration of
services and activities of secretariats were subsequently
circulatedd in response to this request. Several delegates
indicated that the cost ai maintaining a multiplicity of
separate international organizations was already showing
signs of assuming considerable proportions and that the
expenses of the International Trade Organization should,
therefore, be kept to the minimum consistent with
efficiency.
4. The principle was generally accepted that provisions
relating to the organization of the secretariat should be
as flexible as possible, particularly with reference to the
number, status and powers of Deputy Directors-General,
and that, as a corollary, the Director-General should be
given all the authority and freedom of action necessary
for carrying out his responsibilities. Most delegates agreed
that the position of the Director-General should be made
as strong as possible in relation ta that of other officials
of the secretariat, and that any specific reference in the
Charter to either the number or functions of Deputy
Directors-General should consequently be omitted. This
decision was felt to be justified on the grounds, firstly, that
if their status and powers were to be derived directly from
the Charter, the relative authority of the Director-General
would be lessened, and secondly, that it should be left
ta the Director-General to appoint only such number
of deputies as are in fact needed. Appointments should
in any case be in accordance with regulations approved
by the Conference. A proposal that the Director-General
be ex-officie non-voting Chairman of the Executive Board
did not win favour.
5. While delegates agreed that efficiency, competence
and integrity should be the paramount considerations in
recruiting personnel for the secretariat, many thought that
adequate geographical representation and familiarity with
different kinds of economic conditions and interests,
should also be taken substantially into account. The
Preparatory Committee drafted a provision which is
intended to give effect to this principle, and to
conform to the corresponding provision in the Charter
of the United Nations. Some delegates suggested that
personnel of the secretariat and Commissions should be
recruited only from members of the International Trade
Organization. Others considered that such a provision
would be unduly restrictive, and that employment should
be open to nationals of all members of the United Nations
subject, perhaps, to some measure of preference being
given to nationals of the members of tl Organization.
* See Chapter 1. Section L
56308
The Preparatory Committce also considers that specific
provisions regarding nationality should not be included
in the Charter, thus leaving the way open for the occa-
sional recruitment of exceptionally qualified persons, who
otherwise would not be eligible, if, in the Director-
General's opinion and subject to such consultation as he
may deem advisable, the services of such persons would
be of special value to the Organization.
SECTION
Miscellaneous provisions
r. Relations with other Organisations
(a) Those provisions of the United States Draft Charter,
which deal with questions of relationship between the
International Trade Organization and other international
organizations found ready acceptance. The useful part
which these organizations, both inter-governmental and
non-governmental, might play is helping to promote the
objectives of the International Trade Organization is
generally recognized.
(b) Although many delegates were willing to leave to the
Director-General the negotiation of a formal agreement
with the United Nations according to the precedent set
by other specialized agencies, the opinion was also ex-
pressed that the provisions of such an agreement should
be worked out in detail beforehand, with a view to their
becoming operative as soon as the International Trade
Organization comes legally into existence. All delegates
agreed, however, with the general proposition that in
the interests of economical and efficient administration,
and for the purpose of avoiding inconsistent and even
conflicting policies, it was of the greatest importance that
the closest relationship with the United nations, and
particularly with the Economic and Social Council, should
be specially developed.
(c) There was general agreement, to, with the view
that it would be undesirable to refer specifically to any
particular organisation in the provision of the Charter
dealing with relations with other inter-governmental
organizations in view of the fact that the activities and
responsibilities of a number of these organizations will
be of special importance from the point of view of the
International Trade Organization. The importance of the
Food and Agricultural Organization, of the International
Monetary Fund, of the International Bank for Recon-
struction and Development and of the International
Labour Organization in relation to the work of the Inter-
national Trade organization is particularly stressed.
2. Legal Capacity, Privildges and Immunities
The provisions of the United States Draft Charter deal-
ing with the legal capacity, privileges and immunities of
the Organization were approved without change. In view
of the fact that the Secretary-General of the United
Nations is under instructions from the General Assembly
to consult with specialized agencies on the subject of privi-
leges and immunities with a view to ensuring a reason-
able degree of uniformity in the arrangements made for
all inter-governmental organizations, the Preparatory Com-
mittee feels that the provisions of the Charter relating
to these matters sbould be expressed in general rather
than specific terms, leaving the formulation of their
detailed application to the Conterence.
3. Payment of Contributions
The Preparatory Committee considers that a penalty
clause with reference to non-payment of contributions
should be incorporated in the Charter. Some discussion
took place, however, as to the appropriate place in the
Charter for a provision of this nature, the natter being
finally left to the decision of the Draiting Committee. In
order to bring the procedure of the International Trade
Organization into line with that adopted by the United
Nations, a suggestion that the wording of this particular
provision should conform to that used in the Charter of
the United Nations met with general support.
4. Amendments
(a) While it was generally recognized that the Organiza-
tion should be 50 constituted as to allow it to meet cou-
stitutional changes of a minor kind without undue diffi-
culty, severa! delegates thought that a member not accept-
ing amendments, which involve new obligations would
be in an anomalous position in its relationship to the
Organization, if it were not permissible for the member
to withdraw.
(b) It was, therefore, felt that provision should be
made whereby the Conference might decide that a non-
accepting member would be compelled to withdraw or, in
A 13 26
the absence of such a decision, whereby such a member
might be enabled voluntarily to withdrawn, notwithstand-
ing any general provisions contained of where in the
Charter limiting the right of withdrawal.
5. Withdrawal
In considering withdrawal and termination account was
taken of the necessity of giving the Organization a fair
chance at its inception to become finally established. It
was felt, nevertheless, in view of the fact that the trade
agreements legislation of the United States would not
permit that country to enter into tariff commitments of
more than three year' duration, that the period imme-
diately following the adoption of the Charter, within
which now ithdrawals should take place, should likewise
be three years, instead of five as proposed in the United
States Draft Charter. It was also felt that six months'
notice of intention to withdraw, rainer than one year
(as in the United States Draft Charter), would be adequate.
Thus, a member would be able to withdraw at the end of
three years, by giving notice- at the end of two and a half
years. Special provision was also made to caver certain
overseas territories of members.
6, Interpretation and Settlement of Disputes
(a) It was agreed to make the English. Chinese, French
and Spanish texts of the Charter equally authoritative,
The question cf providing also a Russian text did not
present itself at the First Session.
(b) Attention was called to the possibility of a specia'.
chamber for commercial cases being established under
Article 26 of tbe Statute of the International Court of
justice. There was some doubt, however, as to whether
its existence might not detract from the prestige of the
International Trade Organization. Several delegates
thought that the jurisdiction of the Organization should
be final in administrative matters coming within its pro-
vince and that only legal issues should be referred to
courts. politico-econc mic decisions being recognized as the
Organization's own responsibility. Although it was
generally agreed that the Executive Board, where appro-
priate, could refer disputes to the Commissions for pre-
liminary report, some disapproval was voiced at the idea
of Commissions being formally regarded as courts of first
instance.
(c) Considerable discussion took place on whether
appeals to the International Court. of Justice from rulings
of the Conference on justiciable issues should be subject
to the consent of the Conference. It was argued that same
limitation was necessary both ta keep the prestige of the
International Trade Organization high and to avoid over-
loading the International Court. The contrary view was
that only justiciable matters were involved in which the
International Trade Organization was not expert, and that,
in practice, countries would only appeal on issues which
they regarded as rerally important. Some compulsory
delay was also suggested.
(d) The Praparatory Committee eventually agreed that
the right of appeal should be subject to procedures estab-
lisbed by the Conference, and that in determining these
procdures consideration should be given to incorporating
as a pre-requisite an affirmative vote of at least one-third
of the members of the Conference. The absolute right
of appeal to the International Court of Justice in security
matters, as set out in the United States Draft Charter,
was not called into question.
(e) All delegates thought that the authority of the
International Trade Organization to seek advisory opinions
from the International Court of Justice should be continu.
ing and not subject to reference to the General Assembly
af the United Nations on each occasion. The Article
concerned was redrafted te accord with the language of
the Charter of the United Nations. Although the inter-
pretation of this wording was open to question, it was
thought that the matter could bc clarified in the agree-
ment to be concluded under Article 57 of the Charter
of the United Nations.
(1) It was agreed to refer to the Registrar of the Inter-
national Court of Justice the question whether complica-
tions would be likely to arise from asking the Court
for an advisory opinion on a matter which might sub-
sequently become the subject of a case before it.
(g) It was agreed also that in view of paragraph 2 of
Article 34 of the Statute of the International Court of
Justice, the rules of the Conference should enable the
Director-Genesal to represent the Organization before the
Court.
(h) The introduction of detailed discussion on arbitration
raised considerable difficulty because delegates were by nu
means clear as to what kind of issues were appropriate for
arbitration. A Iengthy discussion took place whether ad-
ministrative as well as legal questions should be referred
to arbitration, whether the Executive Board should await
the consent of the parties concerned and whether the
arhitrators' decision should be final (most delegates agreed
that it should). An amendment was agreed upon which
would permit the Executive Board. witn the condent of
parties concerned, to refer to arbitration for final decision
any matter arising out of the operation of the Charter.
(i) Certain delegates wished the provisions in regard to
arbitration and the International Court of Justice to be
expanded and made more specific and they undertook to
prepare a memorandum setting out their views. The
Drafting Committee is asked to consider these views in
conjunction with the verbatini report of Committee V's
discussion . of this subject.
7. Entry into Force
:a) One delegate suggested that, instead of requiring a
membership of twe nty to bring the Charter into force,
an alternative method might be to provide for its taking
effect when a certain proportion of would trade was
covered by countries accepting its provisions, so that the
entry of the Charter into force should not be delayed
alter in acaceptance by the most important trading coun-
tries. Various objections to this procedure were voiced
by other delegates.
(b) In general the procdures suggested in the United
State- Draft Charter for bringing the Charter into force
are regarded as satisfactory by the Preparatory Committee
subject to the amendment that any instrumen. of accept-
once deposited with the Secretary-General of the United
Nations is to be taken as covering both procedures, unless
it expressly provides to the contrary or is withdrawn.
(c) This was intended to cver the sit ation that might
arise when one or more governments, having deposited
their acceptances before a given date (pursuant to para-
graph (2) of Article 88) might not feel inclined to join
the Organization should it subsequently come into exist-
ence as a result of agreement on the part of a relatively
limited number of Governmenis (pursuant te the proviso
to paragraph (3) of Article 88), but might nevertheless
wish their acceptance to take effect when the member-
ship reaches twenty or more.
(d) With reference to the suggested provision under
which each government accepting the Charter would do
so in respect of all dependent territories, attention was
drawn to the fact that certain overseas territories were in
saying degrees of development and, in sooure cases, were
self-governing in matters provided for in the Charter. To
meet this situation a less rigid provision was agreed upon,
the purpose of which is ta permit a measure oi discretion
ta the governments concerned with respect to their accept-
ance of the Charter on behave of territories for which they
have international responsibility. Reservations regarding
this provision were entered by there delegates.
8. Interim Tariff Committed
(a) At its Second Session at which tariff concessions will
be discussed, the Preparatory Committee hopes that certain
reductions of tariffs or other concessions will be agreed. If
so, the Committee considers that it might be desirable
to bring these reductions or concessions into effect as soon
as possible, without necessarily waiting upon the entry
into force of the Charter. It would be for the negotiating
countries themselves to decide the tire. When the
Organization is set up it is hoped that the countries,
which have reduced their tarifs, will join it. These
countries would then become the nucleus of the Interim
Tariff Committee, w'hich would be supplemented by other
countries joining the Organization, and which themselves
have made equivalent tariff concessions to the satisfaction
of the Committee. When two-thirds of the members of
the Organization become members of the Committee, the
functions of the latter will vést in the Conference.
(b) The Preparatory Committee is of the opinion that
for countries making reductions membership of the
Interim Tariff Committee should be compulsory.
(c) A reservation was made regarding the position of
members which did not desire to join the Committee.
(d) A suggestion was made that if weighted voting were
introduced, it might be applied in the case of the Interim
Tariff Committee.
(e) A provisional view was expressed that the imple-
mentation of tariff agreements and of the Charter should
bo interdependent. 27
APPENDIX
Charter of the International Trade Organization of the United Nations
ESTABLISHMENT
The International Trade Organization of the United
Nations is hereby established and shall operate in accord-
ance with the provisions which follow.
CHAPTER I
PURPOSES
ARTICLE I
General Purposes of the Organization.
To be considered and drafted at a later stage.*
CHAPTER II
MEMBERSHIP
ARTICLE 2
(I) The original Members of the Organization shall be
those countries represented at the United Nations Con-
ference on Trade and Employment which accept the
provisions of this Charter by 3I December, I94, .. or,
iii the event that this Charter has not entered into force
by that date, those countries which agree to bring this
Charter into force pursuant to the proviso to paragraph (3)
of Article 88.
(2) Membership in the Organization shall be open to
such oilier countries as accept the provisions of this
Charter, subject to the approval of the Conference.
(3) The Conference shall establish procedures that will
open a membership in the Organization to the United
Nations on behalf of the trust territories for which the
United Nations is the administering authority.
CHAPTER III
EMPLOYMENT
ARTICLE 3
Relation of Employmnent to the Purposes of the Organisa-
tion.
(I) Members recognize that the avoidance of unemploy-
ment or under-employment through the achievement and
maintenance of each country of useful employment
opportunities for those able and willing to work and of high
and steadily rising effective demand for goods and services
is not of domestic concern alone, but is a necessary con-
dition for the expansion of international trade and, in
general, for the realization of the purposes of the Organiza-
tion. They also recognize that measures ta sustain demand
and employment should be consistent with the other pur-
poses and provisions of the Organization, and that in the
choice of such measures, each country should seek to avoid
creating balance of payments difficulties for other
countries.
(2) They agree that, while the achievement and main-
tenance of effective demand and employment must defend
primarily on domestic measures, such measures should be
assisted by the regular exchange of information and views
among members and, so far as possible, be supplemented
by international action sponsored by the Economic and
Social Council of the United Nations and carriedd out in
collaboration with the appropriate inter-governmental
organizations, acting within their respective spheres and
consistently with the terms and purposes of their basic
instruments.
ARTICLE 4
The Maintenance of Domestic Employment
Members shall talk, action designed to achieve and
Maintain full and productive employment and high and
stable levels of effective demand within their own juris-
diction through measures appropriate to their political and
economic institutions and compatible with the other pur-
poses of the Organization.
- ARTICLE 5
The Developmeut of Domestic Resources and Productivity
Members, recognizing that all countries have a common
Interest in the productive use of the world's resources,
agree to take action designed progressively to develop
economic resources and to raise standards of productivity
within their jurisdiction through measures compatible with
the other purposes of the Organization.
* See Part II, Chapter VI, Section B.
56308
ARTICLE 6
Fair Labour Standards
Members, recognizing that all countries have a common
interest in the maintenance of fair labour standards related
to national productivity, agree to take whatever action
may be appropriate and feasible to eliminate sub-standard
conditions of labour in production for export and generally
throughout their jurisdiction.
ARTICLE 7
The Removal of Maladjustments in the Balance of Pay-
"ments
Members agree that, in case of a fundamental dis-
equilibrium in their balance of payments involving other
countries in persistent balance of payments difficulties,
which handicap them in maintaining employment, they
will make their full contribution to action designed to
correct the maladjustmrent.
ARTICLE 8
Safeguards for Countries subject ta External Deflationary
Pressure
The Organization shall have regard, in the exercise of
its functions as defined in the other articles of this Charter,
to the need of Members to take action within the provisions
of the Charter to safeguard their economies against de-
flationary pressure in the event of a serious or abrupt
decline in the effective demand of other countries.
ARTICLE 9
Consultation and Exchange of Information on Matters
Relating to Employment
Members agree ta participate in arrangements under-
taken or sponsored by the Economic and Social Council
of the United Nations, including arrangements with the
appropriate inter-governmental organizations
(a) for the regular collection, analysis and exchange
of information on domestic employment problems,
trends and policies, including as far as possible in-
formation relating ta national income, demand, and the
balance of payments; and
(b) for consultation with a view ta concerted action
on the part of governments and inter-governmental
organizations in the field of employment policies.
CHAPTER IV
ECONOMIC DEVELOPMENT
ARTICLE 10
Importance of Economic Develodpment
Members recognize that the industrial and general
economic development of aIl countries and in particular
of those countries whose resources are as yet relatively
undeveloped will improve opportunities for employment,
enhance the productivity of labour, increase the demand
for goods and services. conutribute to economic stability.
expand international trade and raise levels of real income.
thus strengthening the ties of international understanding
and accord.
ARTICLE s
Plans for Economic Development
(x) Members undertake to promote the continuing Indus-
trial an general economic development of their respective
countries and territories in order to assist in relizing
the purposes of the Organization.
(2) Members agree that they will co-operate through the
Economic and Social Council of the United Nations and
the appropriate inter-governmental organizations in pro-
moting industrial and general economic development.
(3) [The Organisation, at the request of any Member,
shall advise such Member concerning its plans for
economicc development and, within its competence and
resources, shall provide such Member with technical
assitance in completing its plan and carrying out its
programmes.]*
See Part II. Chapter II, Section T, paragraph 5.
A 14 28
ARTICLE I2
Means of Econonmic Development
(I) Members recognize that progressive economic
development is dependent upon the availability ol
adequate supplies of
(.2) capital funds; and
(b) materials, equipment, advanced technology,
trained workers and managerial skill.
(2) Members agree to impose no unreasonable impedi.
ments that would prevent other Members from obtaining
access to facilities required for their economic development.
(3) Members agree to co-operate within the limits of
their power to dose, with the appropriate international
organizations of which' they are members in the provision
of such facilities.
(4) Members agree that, in their treatment of other
Members, business entities or persons supplying then with
facilities for their industrial and general economic develop-
ment not only will they conform to the provisions of
their relevant international obligations now in effect or
which they may undertake pursuant to Paragraph (5) of
Article i56 or otherwise, but also that in general they will
take no unreasonable action injurious to the interests of
such other Members, business entities or persons.
(S) The Organization shall receive from any affected
Member or with the permission of that Member from
business entities or persons within its jurisdiction, com-
plaints that action by another Member is inconsistent with
its obligations under paragraphs (2), (3) or (4). In the
event of such complaint, the Organization may, at its
discretion, request the Members concerned te énter into
consultation with a view to reaching a mutually satisfac-
tory settlement and may lend its good offices to this end.
ARTICLE 13
Governmental Assistance to Economic Development
(i) Members recognize that special governmental assist-
ance may be required in order to promote the establish-
ment or reconstructior. of particular industries and that
such asistance may take the form of protective measures.
(2) Members recognize that an unwise use of such pro-
tection would impose undue burdens on their own
economies and unwarranted restrictions on international
trade and might increase unnecessarily the difficulties of
adjustment for the economies of other countries.
(3) (a) If a Member, in the interest of its programme
of development, proposes to employ any protective
measures- which would conflict with any of its obligations
under or pursuant to the provisions of the Charter. it shall
inform the Organization, and shall transmit to the Organiza-
tion any finding in support of this proposal. The Organiza-
tion shall promptly inform those Members, whose trade
would be substantially affected by the proposal and afford
them an opportunity to present their views. The Organiza-
tion shall then promptly examine the proposal in the light
of the provisions of this Chapter, the findings presented by
the applicant Member, the views presented by Members
substantially affected and of such criteria as to produc-
tivity and other factors as it may establish, taking into
account the stage of economic development or reconstruc-
tion of the Member.
(b) If. as a result of its investigations pursuant to sub-
paragraph (a), the Organization determines upon any
measure, which would be inconsistent with any obligation
that the applicant Member has assumed through negotia-
tion with other Members pursuant to Chapter V or which
would reduce the benefit to such other Members of any
such obligation, the Organization shall sponsor and assist
in negotiations between the applicant Member and the
other Members substantially affected, with a view to
obtaining substantial agreement. Upon such agreement
beings reached, the Organization may release the applicant
Member from the obligation in question or from any other
relevant obligation under the Charter, subject to such
limitations as the Organization may impose.
* (c) If. as a result of its investigations pursuant to sub-
paragraph (a), the Organization concurs in any measure
other than those covered in sub-paragraph (b), which
would be inconsistent with any obligation assumed under
this Charter, the Organisation may, in its discretion,
release the applica it Member from the obligation in ques-
tion, subject to such limitations as the Organisation may
impose.
CHAPTER V
GENERAL COMMERCIAL POLICY
Section A.-General Commercial Provisions, Most-
Favoured-Nation Treaiment. Tariffs and Tariff
Preferences etc.
ARTICLE 14
General Most-Favoured-Nation Treatment
(I) With respect to customs duties and charges of any
kind imposed on or in connection with importation or
exportation or imposed on the international transfer of
payments for imports or exports and with respect ta the
method of levying such duties and charges and with
respect to all rules and formalities in connection with
importation or exportation and with respect to all matters
affected by the provisions relating to national treatment
in Article I5, any advantage, favour, privilege or immunity
granted by any Member to any product originating in or
destined for any other country, shall be accorded immm-
diately and unconditionally to the like product originating
in or destined for all other Members.
(2) The provisions of paragraph (r) shall not be construed
to require the elmination of any preferences iu respect
of customs duties and other charges imposed on importa-
tion, which do not exceed the preferences remaining alter
the negotiations contemplated in Article 24 and which
fall within the following descriptions:
(a) Preferences in force exclusively-
(i) between territories in respect of which there
existed on 1 July 1939, common sovereignty or
relations of protection or suzerainty, or
(ii) between the territories comprised in Annexure A
to this Charter. Each Member to which provision (i)
applies shall provide a list of sub territories, which
lists shall be incorporated in a further annexure.
(b) Preferences in force exclusively between the United
States of America and the Republic of Cuba.
(c) Preferences in force on 1 JuIy 1946, exclusively
between neighboring countries.
ARTICLE 15
*National Treatment on lnternal Taxation and Regula-
tion,
ARTICLE 16
*Freedom of Transist
ARTICLE 17
'Antidumping and Countervaing Duties.
ARTICLE :8
'Tariff Valuation.
ARTICLE 19
Customs Formalities.
ARTICLE 20
*Marks of Origin.
ARTICLE 2;
*Publication and Administration of Trade Regulations-
Advance Notice of Restrictive Regulations.
ARTICLE 22
information , Statistics and Trade Terminology.
Boycotts.
ARTICLE 23
Section B-Tariff and Tariff Preferences
ARTICLE 24
Reduction of Tariffs and Elimination of Prefereces
(z) Each Member, other than a Member subject to the
provisions of Article 33, shall, upon the request of any
other Member or Members, enter into reciprocal and
mutually advantageous negotiations with such other Mem-
ber or Members directed to the substantial reduction of
tarifs and other charges on imports and exports and
to the elimination of import tariff preferences. These
negotiations shal proceed in accordance with the following
rules:
(a) Prior international commitments shall not be per-.
mitted to stand in the way of negotiations with respect
to tariff preferences, it being understood that action
To b. considered further and drafted at a later stage-see
Part Il, Chapter III, Section B. 29
resulting from such negotiations shall not require the
modification of existing international obligations, except
by agreement between the contracting parties or, failing
that, by termination of such obligations in accordance
with their terms.
(b) All negotiated reductions in most-favoured-nation
import tariffs shall operate automatically to reduce or
eliminate margins of preference.
(c) The binding or consolidation of low tariffs or of
tariff-free treatment hall in principle be recognized as a
concession equivalent' in value to the substantial re-
duction of high tariffs or the elimination of tariff
preferences.
(2) Each Member participating in negotiations pursuant
to paragraph (r) shall keep the Organization informed of
the progress thereof and shall transmit to the Orgaznization
a copy of the agreement or agreements incorporating the
results of such negotiations.
(3) If any Member considers that any other Member
has failed, within a reasonable period of time, to fulfil
its obligations under paragraph (t), such Member may
refer the matter to the Organization, which shall make
an investigation and make appropriate recommendations
to the Members concerned. The Organization, if it finds
that a Member has, without sufficient justification, having
regard to the provisions of the Charter as a whole, failed
to negotiate with such complaining Member in accordance
with the requirements of paragraph (z), may determine
that the complaining Member, or Ln exceptional cases the
Members of the Organization generally, shall, notwith-
standing the provisions of Article I4, be entitled to with-
hold from the trade of the other Member any of the
tariff benefits which the complaining Member, or the Mem-
bers of the Organization generally as the case may bu,
may have negotiated pursuant to paragraph (I). If such
benefits are in fact withheld so as to result in the applica-
tion to the trade of the other Member of tariffs higher
than would otherwise have been applicable, such other
Member shall then be free, within sixty days after such
action is taken, to withdraw from the Organization upon
the expiration of sixty days from the date on which
written notice of such withdrawal is received by the
Organization. The provisions of this paragraph shall
operate in accordance with the provisions of Article 67.
Section C-Quantitative Restrictions and Exchange
Control
ARTICLE 25
General Elimination of Quantitative Restrictions
(i) Except as otherwise provided in this Charter, no
prohibition or restriction, other than duties, taxes or other
charges, whether made effective through quotas, import
licenses or other measures, shall be imposed or maintained
by any Member on the importation of any product of
any other Member or on the exportation or sale for
export, of any product destined for any other Member.
(2) The provisions of paragraph (s) shall not extend
to the following:
(a) Prohibitions or restrictions on imports or exports
imposed or maintained during-the early post-war tran-
sitional period, which are essential to
(i) the equitable distribution among the several
consuming countries of products in short supply,
whether such products are owned by private interests
or by the government of any Member: or
(il) the maintenance of war-time price control by
a country undergoing shortages subsequent to the
war; or
(iii) the orderly liquidation of temporary surpluses
of stocks owned or controlled by the government of
any Member or of industries developed in the territory
of any Member owing to tho exigencies of the war,
which it would be uneconomic to maintain in normal
conditions:
Provided that restrictions- under (iii) of this sub-
paragraph may be imposed by any Member only after
consultation with other interested Members with a view
to appropriate international action. Import and export
prohibitions and restrictions imposed or maintained
under this sub-paragraph shall be removed as soon as
the conditions giving rise to them. have ceased, and
in any event, not later than I July 1949
Provided that this period may, with the concurrence
of the Organization, be extended in respect of any
product for further periods not ta exceed six months
each.
,56308
(b) Export prohibitions or restrictions temporarily
imposed to relieve critical shortages of food-stuffs or
other essential products in the exporting country.
(c) import and export prohibitions or restrictions
necessary to the application of standards for the classi-
fication and grading of commodities in international
commerce. If, in the opinion of the Organization, the
standards adopted by a Member under this sub-para-
graph are likely to have an unduly restrictive effect on
trade, the Organization mav request the Member to
revise the standards.
Provided that it shall not request the revision of
standards internationally agreed under paragraph (6)
of Article 22.
(d) Export or import quotas imposed under inter-
governnental commodity agreements concluded in
accordance with the provisions of Chapter VII.
(e) Import restrictions on any agricultural or fisheries
product, imported in any form, necessary to the en-
forcement of governmental measures which operate
(i) to restrict the quantities of the like domestic
product permitted to be marketed or produced; or
(i) to remove a temporary surplus of the like
domestic product by making the surplus available to
certain groups of domestic consumers free of charge
or at prices below the current market level.
(f Any Member imposing restrictions on the impor-
tation many product pursuant to sub-paragraph (e)
shall give public notice of the total quantity or value
of the product permitted to be imported during d
specified period and of any change in such quantity or
value Provided that any supplies of the product in
question, which were en route at the time at which
public notice was given, shall not be excluded but may
be counted, so far as practicable, against the quantity
permitted to be imported in the period in question].'
Moreover any restrictions imposed under (i) of sub-para-
graph (e) shall not be such as will reduce the total of
import relative to the total of domestic production,
as compared with the proportion which might reason-
ably be expected to rule between the two in the absence
of the restrictions. In determining this proportion the
Member shall pay due regard to the proportion pre-
vailing during a previous representative period and to
any special factors which may have affected or may
be affecting the trade in the product concerned. The
Member shall consult with any other Members which
are interested in the trade in question and which wish
to initiate such consultations.
(g) Import and export prohibitions or restrictions im-
posed on private trade for the purpose of establishing
a new or maintaining an existing monopoly of trade
for a state-trading enterprise operated under Articles
31, 32 and 33.
ARTICLE 26
Restrictions to Safeguard the Balance of Payments
(z) Members may need ta use import restrictions as a
means of safeguarding their external financial position and
as a step towards the restoration of equilibrium on a
sound and lasting basis, particularly in view of increased
demand for the import needed to carry out their domestic
employment, reconstruction. development of social
policies. Accordingly, notwithstanding the provisions of
Article 25, Members may restrict the quantity or value
of merchandise permitted to be imported insofar as this
is necessary to safeguard their balance of payments and
monetary reserves. The use of import restrictions under
this paragraph shall conform to the conditions and re-
quirements set out in paragraphs (2), (3) and (4).
(2) Members undertake to observe the following prin-
ciples in the use of such restrictions:
(a) To refrain froms imposing new or intensifying
existing restrictions except to the extent necessary
(having due regard to any special factors which may be
affecting the level of the Member's reserves, to any
commitments or other circumstances, which may be
affecting its need for reserves, or to any special credits
or other resources which may be available to protect
its reserves
) to stop or to forestall the Imminent threat of
a serious decline in the level of monetary reserves; or
* The words in square brackets should be retained only if the
matter is not fully covered in Article 22.
A 15 30
(ii) in the case of a Member with very low mone-
tary reserves to achieve a reasonable rate of increase
in its reserves.
(b) To eliminate the restrictions when conditions
would no longer justify the imposition of new restric-
tions under sub-paragraph (a), and to relax them pro-
gressively as such conditions are approached.
(c) Not to carry the imposition of new import re-
strictions or the intensification of existing restrictions
under sub-paragraph (a) to the point at which it in-
volves the complote exclusion of imports of any class
of goods.
(3; (a) Any Member which, wbile not imposing restric-
tions under paragraphs (I) a-d (2), is considering the need
for the imposition of restrictions, before imposing such
restrictions (or, in conditions in which previous consulta-
tion is impracticable, as soon as possible after imposing
such restrictions) shall consult with the Organization as
to the nature of its balance of payments difficulties, the
various corrective measures which may be available and
the possible effects of such measures on the economies of
other Members. The Organization shall invite the Inter-
national Monetary Fund to participate in such consulta-
tions. No Member shall be required during these discus-
sions te indicate in advance the choice or timing of any
particular measures which it may ultimately determine te
adopt.
(b) The Organization may at any time invite any Mem-
ber which is .imposing import restrictions under paragraphs
(I) and (z), to consult with it about the form and extent
of the restrictions and shall invite a Member substantially
intensifying such restrictions to consult accordingly within
thirty days. Members agree to participate in such discus-
sioni when so invited. In the conduct of such discussions
the Organization shall consult the International Monetary
Fund and any other appropriate inter-govenmental
organizations, in particular in regard to the alternative
methods available to the Member in question of meeting
its balance of payments difficulties. The Organization
under this sub-paragraph shall, within two years of its
institution, review all restrictions existing at its institution
and subsequently maintained under paragraphs (I) and (2).
(c) Any Member applying or intending to apply restric-
tions on imports under paragraphs (i) and (2) may, if it
se desires, consult with the Organization with a view to
obtaining the previous approval of the Organization for
restrictions which it intends to maintain or to impose or
for the maintenance or imposition in the future of restric-
tions under specified conditions. The Organization shall
invite the internationall Monetary Fund to participate in
the consultations. As a result of such consultations the
Organization may approve in advance the maintenance,
imposition or intensifcation of import restrictions by the
Member in question insofar as tthe general extent, degree
and duration of the restrictions are concerned. To the
extent to which such approval has been given, the action
of the Member imposing restrictions shall not be open to
challenge under subparagraph (d) insofar as it relates to
action taken in conformity with paragraphs (r) and (2).
(d) Any Member, which considers that any other Mcm-
ber in applying import restrictions under paragraphs (z)
and (2) in a manner inconsistent with the provisions of
those paragraphs or of Articles 27 or 28, or in a manner
which unnecessarily damages its commercial interests, may
bring the matter for discussion to the Organization. The
Member imposing the restrictions shall then participate in
discussion of the reasons for its action. The Organiza-
tion shall, if it is satisfied that there is prima facie case
that the complaining Members interest are adversely
affected, consider the complaint. It may then, after con-
sultation with the -International Monetary Fund on any
matter falling within the competence of the Fund, recom-
mend the withdrawal or modification of restrictions which
it determines are being applied in a manner inconsistent
with the provisions of paragraphs (I) and (2) or of Articles
27 or 28 or ' a manner which unnecessarily damages the
commercial terests of another Member. If restrictions
are not with drawn or modified in accordance with the re-
commendation of the Organization within sixty days,
such other Members shall be released from such obligations
Incurred under this Charter towards the Member apply-
ing the restrictions as the Organization may specify.
(e) The Organization in reaching its decision under sub-
paragraph (d), shall not recommend the withdrawal or
general relaxation of restrictions on the ground that the
existing or prospective balance of payments difficulties of
the Member in question could be avoided by a change in
that Member's domestic employment. reconstruction, de
velopmeut or social policies. Members agree,, however,
that in carrying out such domestic policies they will pay
due regard to the need to restore sound and lasting equili-
brium in their balances of payments.
(4) In giving effect to the restrictions on imports im-
posed under this Article, a Member may select imports
for restriction on the grounds of essentiality in such a
way as to promote its domestic employment, reconstruc-
tion, development or social policies. ln so doing the Mem-
ber shall avoid all unnecessary damage to the commer-
cial interest of other Members and will accept an invita-
tion to consult with any other Member which considers its
interests to be so damaged.
(t) If there is persistent and widespread application of
quantitative import restrictions under this Article, indi-
cating the existence of a general disequilibrium which is
restricting international trade, the Organization shall seek
consultation with the International Monetary Fund. The
Organisation may then, in collaboration throughout with
the International Monetary Fund, initiate discussion te
consider whether other measures might not be taken, either
by those countries whose balances of payments are under
pressure or by those countries whose balances of payments
are tending to be exceptionally favourable, or by aty
appropriate inter-governmental agency or organization
to remove the, underlying causes of the disequilubrium.
Members agree that they will take part in such discussions.
(6) Throughout this Section the phrase " quantitative
import restrictions" includes the restriction of imports
by state-trading organizations to an extent greater than
that which would be permissible under Article 32 [pro-
vided that no Member shall be required to disclose infor-
mation which would harper the commercial operations
of such a state-trading orgarnization].
(7) Members recognize that in the early years of the
Organization all of then will be confronted, in varying
degrees, by problems of economic adjustment resulting
from the war. During this period the Organization shall,
when required to take decisions under this Article or
under Article 28, take full account of the difficulties of
post-war adjustment.
ARTICLE 27
No Discriminatory Administration of Quantitative Restric-
tions
(z) Subject to the provisions of Article 28, no prohibi-
tion or restriction shall be applied by any Member pur-
suart to this Section on the importation of any product of
any other Member or on the exportation of any pro-
duct destined for any other Member unless the importation
of the like product of all third countries or the exporta-
tion of the like product to all third countries, is similarly
probibited or restricted.
(2) Pursuant to the principle set forth in paragraph (z),
Members undertake in applying import restrictions te
observe the following provisions:
(a) Wherever practicable global quotas (whether
allocated among supplying countries or not) should be
fixed, and notice given of their amount in accordance
with sub-paragraph (3) (b).
(b) Where global quotas are not practicable, import
restrictions may be applied by means of import licences
without a global quota.
(c) Import licences or permits which may be issued
in connection with import restrictions (whether or not
within the limits of global quotas) shall not, save for
purposes of operating quotas allocated in accordance
with subparagraph (d), require or provide that the
licence or permit utilized for the importation of the
product concerned from a particular country or source.
(d) In cases where these methods of licensing are found
impracticable or unsuitable, the Member conce.-ned may
apply the restrictions in the form of a quota allocated
among supplying countries. In that event the shares of
the various supplying Members should in principle bo
determined in accordance with commercial considera-
tions such as, e.g., price, quality and customarv sources
of supply. For the purpose of appraising such commer-
cial considerations, tie Member applying the: restric-
tions may seek agreement with respect to the alloca-
tion of shares in the quota with all other Members
having a substantial interest in supplying the product
* The phrase inter-governmental agency or organizations
intended to include the Economic and Social Council of the
United Nations.
t The words in square brackets should only be remained in the
matter is considered not to be adequately covered in the Articles
dealing with state-trading organizations. 31
concerned, In cases where this method is not reason-
ably practical, the Member concerned should allot to
Members having a substantial interest in supplying the
product shares b4sed upon the proportions of the total
quantity or value of the product supplied by such Men-
bers during a previous representative period, due account
being taken of any special factors which may have
affected or bc affecting the trade in the product.
(e) No conditions or formalities shall be imposed,
which would prevent any Nember from utilizing fully
the share of any such total quantity or value which has
been allotted to it, subject to importation being made
within any prescribed period to which the quota may
relate.
(3) (a) In cases where import licences are issued in
connection with import restrictions, the Member applying
the restriction shall provide, upon the request of any
Member having an interest in the trade in the product
concerned, all relevant information as to the administra-
tion of the restriction, the import licences granted over a
past recent period and as to the distribution of such
licences among supplying countries Provided, however,
that there shall be no obligation to supply information as
to the names of importing or supplying enterprises.
(b) In the case of import restrictions involving the fixing
of quotas (whether or not allocated among supplying
countries), the Member applying the restrictions shall give
public notice of the total quantity or value of the product
or products, which will be permitted to be imported during
a specified future period and of any charge in such quan-
tity or value.
(c) In the case of quotas allocated among supplying
countries, the Member applying the restriction shall
promptly inform all other Members having an interest in
supplying the product concerned of the shares in the quota,
by quantity or value, currently allocated to the various
supplying countries.
(4) With regard to restrictions imposed in accordance
with sub-paragraph (2) (d) or under sub-paragraph 2 (e)
of Article :5, the selection of a representative period for
any product and the appraisal of any special factors affect-
ing the trade in the product shall be made initially by
the Member imposing the restriction Provided that such
Member shall, upon the request of any other Member
having a substantial interest in supplying that product or
upon the request of the Organization, consult promptly
with the other Member or with the Organization regarding
the need for an adjustment of the base period selected or
for the re-appraisal of the special factors involved.
(5) The provisions of this Artilce shall apply to any
tariff quota established or maintained by any Member.
ARTICLE 28
Exceptions from the Rule of Non -Discrimination
(Q) The provisions of this Section hall not preclude
(a) restrictions with equivalent effect to exchange
restrictions authorized under Section 3 (b) of Article VII
of the Articles of Agreement of the International Mone-
tary Fund;
(b) prohibitions or restrictions in accordance with sub-
paragraphs (2) (a) (i) or (2) (d) of Article 25
(c) conditions attaching to exports which arc necessary
to ensure that an exporting country receives for its
exports its own currency or the currency of any member
of the International Monetary Fund specified by the ex-
porting country;
(d) restrictions in accordance with Article 26 which
. either
(i) are applied otherwise consistently with Article 27
against import from other countries by a group of
territories with common quota in the International
Monetary Fund or
(ii) assist in the period until 31 December 1951,
by measures not involving substantial departure from,
the provisions of Article 27, a county whose economy
has been disrupted by war.or both
(ii) provide a Member with additional imports
above the maximum total of import which it could
afford in the light of the conditions in paragraph (2)
of Article 26, if its restrictions were consistent with
Article 27, and
(iv) have equivalent effect to exchange restrictions,
which are permitted to that Member under the Articles
of Agreement of the 'International Monctary Fund
or under the terms of any special exchange agree-
ment, which may have been made between the Mem-
ber and the Organization under Article 29.
Provided that a Member, which is not imposing restric-
tions on payments and transfers for current international
transactions, may apply import restrictions under (iii)
of this sub-paragraph in special circumstances and only
with the prior approval of the Organization in agree-
ment with the International Monetary Fund.
(2) If the Organization finds, after consultation with
the Internationai Monetary Fund on matters within the
competence of the Fund, that import restrictions or ex-
change restrictions on payments and transfers in reconec-
tion with imports are being applied by a Member in a
discriminatory manner inconsistent with the exceptions
provided under this Article or in a manner which discrim-
inates unnecessarily against the trade of another Mem-
ber, the Member shall within sixty days remove the dis-
criminations or modify them as specified by the Organiza-
tion
Provided that a Member may, if it so desires, consult
with the Organization to obtain its previous approval for
discriminations, under the procedure set forth in para-
graph (3) (c) of Article 26 and to the extent that such
approval is given, the discriminations shall not be open
to challenge under this paragraph.
(3) When three-quarters of the Members of the Organ-
ization have accepted the obligations of Article VIII of
the Articles of Agreement of the International Monetary
Fund, but in any event before 31 December 1951, the
Organization shall review tne provisions of this Article,
in consultation with the International Monetary Fund,
with a view to the earliest possible elimination of dis-
criminations, under sub-paragraphs (z) (d) (iii) and (iv)
of this Article, which restrict the expansion of world trade.
ARTICLE 29
Exchange Arrangements
(r) The Organization shall seek co-operation with the
International Monetary Fund to the end that the Organ-
ization and the Fund may pursue a co-ordinated policy
with regard to exchange questions within the com-
petence of the Fund and questions of quantitative restric-
tions or other trade measures within the competence of
the Organization.
(2) Members agree that they will not seek by exchange
action to frustrate the purposes of this Charter and that
they will not seek by trade action to frustrate the purposes
of the Articles of Agreement of the International Mone-
tary Fund.
(3) In order to avoid the imposition of trade restric-
tions and discriminations through exchange techniques
and in order to avoid the danger of conflicting jurisdiction
between the Organization and the International Monetary
Fund in exchange matters, Members of the Organization
shall also undertake membership of the International Mone-
tary Fund Provided (that any country, which is willing
to join the Organization but unwilling to join the Inter-
national Monetary Fund, may become a Member of the
Organization if it enters into a special exchange agreement
with the Organization, which would become part of ibt
obligations under this Charter, and Provided further] that
a-Member of the Organization, which ceases to be a mem-
ber of the International Monetary Fund, shall forthwith
enter into a special exchange agreement with the Organisa-
tion, which shall then become part of its obligations under
this Charter.
(4) A special exchange agreement between a Member
and the Organisation under paragraph (3) must provide
to the satisfaction of the Organization, in collaboration
throughout with the International Monetary Fund, that
the purposes common to the Organization and tho Fond
will not be frustrated as a result of action in 'exchange
matters by the Member in question.
(5) A Member, which has made a special exchange agree
ment under paragraph (3) of this Article, undertakes to
furnish the Organisation with such information as it may
require, within the general scope of Section 5 of Article
VIII of the Articles of Agreement of the International
Monetary Fund, in order to carry out its functions relating
to this special exchange agreement.
(6) The Organization shall seek and accept the opinion
of the International Monetary Fund whether action by
the Member in exchange matters is permissible under the
terms of the special exchange agreement and shal act,
in collaboration with the International Monetary Fund on
all questions which may arise in the working of a special
exchange agreement under this Articie.
* See Part II, Chapter III Section sub-paragraph 4 (d).
A s4 32
Section D.-Subsidies
ARTICLE 30
General Undertaking regarding Subsidies-Elimination of
Export Subsidies-Exceptions
(I) Except as provided in paragraphs (2) and (4 ) of this
Article, if any Member establishes or mai stains any sub-
sidy, including any form of income or price support, to
that domestic producers of any product, which operates to
increase the experts of auch product from or to reduce
the import of such product into, its territory, such
Member shall notify the Orgaznization in writing as to the
extent and nature of the subsidization, as to the anticipated
effect of the subsidization on the quantity of the product
imported into and exported from the territory of the Mem-
ber and as to the conditions making the subsidization
necessary. In may case in which it is determined that
serious prejudice to the interest of any Member is caused
or threatened by the operation of any such subsidization,
the Member granting the subsidization shall undertake
to discuss with th. other Member or Members concerned
or with the Organization the possibility of limiting the
subsidization.
(2) Except as provided in paragrapb (4). no Member shall
grant, directly or directly, any subsidy on the exporta-
tion of any product or established or maintain any other
system, which results in the sale of such product for expert
at a price lower than the comparable price charged for the
like product to buyers in the domestic market, due allow.
ance being made for differences in conditions and terms of
sale, for differences in taxation and for other differences
affecting price comparability. The preceding sentence
shall not be construed to prevent any Member from
exempting exported products from duties or taxes imposed
in respect of like products when consumed domestically or
from remitting such duties or taxes which have accrued.
The use of the proceeds of such duties or taxes to make
payments to domestic producers would b. considered as a
case under paragraph (i). Members shall give effect to
the provisions of this paragraph at the earliest practicable
date, but-in any event not later than three years from the
day on which this Charter enters into force. If any
Member considers itself unable to make the provisions of
this paragraph effective in respect of any specified product
or products upon the expiration of that period, such Mem-
ber shall, at least tree months before the expiration
of that period, give to the Organization a notice in writing
to that effect, accompanied by a complete analysis of the
practices in question and the feets justifying them and an
indication as to the extension of the period desired. It
shall then be determined whether the extension requested
should be made.
(3) A system for the stabilization of the domestic price
of a primary product, which sometimes results in the sale
of the product for export at a price lower than the com-
parable price charged for tht like product to buyers in the
domestic market, may be determined by the Organization
not to be a subsidy on exportation under the terms of
paragraph (2). if it has at times resulted in the sale of the
product for export at a price higher than the comparable
price changed for the lilke product to domestic buyers and
if the system is so onerated, either because of the effec-
tive limitation of production or otherwise. as not to unduly
stimulate exports or otherwise seriously prejudice the
interest of other members. [.**
(4) (a) In.any case of subsidization of a primary com-
-moditv. whether falling under paragraph(I) or paragraph
(2). If a Member considers that its interest is seriously
preduced by the subsidy or if the Member granting the
subsidy considers itself unable to comply with the rro-
visions of paragraph (2) within the time limit laid down
therein. the difficulty mav be deemed to be a special
difficult of the kind referred to in Chapter VIT. and in
that event. the procedure laid down in that Chapter shall
b. followed.
(b) If it is determined that the measures mentioned in
sub-paragraph (a) have not much suceeds or do not promise
to succeed. within a reasonable period of time. in removing,
or preventing the development of a burdensome world
surplus of the primary product concerned. the requirements
of paragraps (i) and (2)shall cease to appIy in respectof
such product as from the effective date of such determina-
tion. and shall not be re-applied in respect of such product
unitl a date determing in accordance with procedures
approved by the Organization.
(c) Notwithstanding the provisions of paragraph (2) and
sub-pragraph (4) (b), no Member scuh grant any subsidy
on the exportation of any primary product, which bas the
effect of acquiring for that Member a share of world
trade in that product in excess of the share which it bad
during a previous representative period, account being
taken in so far as practicable of any special factors which
may have affected or may be affecting the trade in that
product. The selection of a representative period for any
product and the appraisal of any special factors affecting
the trade in the product shall be made initially by the
Member granting the subsidy Provided that such Member
shall, upon the request of any other Member having an
important interest an the trade in that product. or upon
the request of the Organization, consult promptly with the
other member or with the Organization regarding the need
for an adjustment of the base period selected or for the
re-appraisal of the special factors involved,
(5) Any determination required by or appropriate to
the operation of this Article shall be made under procedures
established by the Organization in accordance with para-
graph (6) of Article 66.
Section E. State Trading
ARTICLE 31
Non-discriminaatory Administration ot State-Trading
Enterprises
(z) If any Member establishes or maintains a state enter-
prise, wherever located, which imports, exports, purchases,
sells or distributes any product or if any Member grants
exclusive or special privileges, formally or in effect. to any
enterprise to import, export, purchase, sell. [distribute,
or produce]* any product. [and exercises effective control
over the trading operations of such enterprise],* the com-
merce of other Members shall be accorded treatment no
less favourable than that accorded to the commerce of any
country, other than that in which the enterprise is located,
ini respect of the purchase or sale by such enterprises of
any product. To this end such enterprise shall in making
its external purchases or sales of any product. be in-
fluenced solely by commercial considerations. such as
price. quality, market-ability. transportation and other
terms of purchase or sale and also differential custom
treatment. The Member maintaining such state enterprise
or granting exclusive or special privileges to an enterprise
shall make available such information as may b. appro-
priate in connection with the consultation provided in
Article 35.
(2) The foregoing provisions of this Article relate to
purchases by state enterprises for re-rale. With respect to
purchases by state enterprises for governmental use and
not for re-sale, Members agree ta accord ta the commerce
of other Members fair and equitable treatment having full
regard to all relevant circumstances.
(3) For the purposes of the Article a state en' enterprise shall
be understood to be any enterprise over whose operations
tho government of a Member exercises effective contol-
ARTICLE32
Expansion of Trade by State Monopolies of Indidudivual
Products
(z) If any Member [other than a Member subject to the
provisions of Article 331 t establishes. maintains or
authorizes, formally or in effect, a complete or substantiaIly
complete monopoly of the importation of any product,
such Member shall, upon the request of any other Member
or Members having an interest in trade with that Member
in the product concerned. enter into negotiations with scuh
Member or Membrs, -in the manner provided for in
respect of tarifs under Article 24. with regard to-
(a) in the case of an import monopoly, the maximum
margin by which the prnce for an imported product
charged by the monopoly in tbe home market may
exceed the landed cost, before payment of any duty,
of such product purchased by the monopoly from sup-
pliers in the territories of Members; or
(b) in the case of an export monopoly, t-e maximum
margin by which the price for a product charged by the
monopoly to purchasers in the territories of such Mem-
bers may exceed the price for such product charged
by the monopoly in the home market
after due allowance in either case for internal taxes, trans-
portation, distribution and other expenses incident to pur-
chase. sale or further processing and a reasonable margin
* See Part I. Chapter. III. Section E, paragraph (ii) of sub-
paragraph X (a). *.
t See Pat II, Chapter II. Section B. sub-paragraph2 (b).
* See Part II. Chapter III. Section D, paragraph (x)of sub-
paragraph z (d). ' ,
-. 33
of profit. For the purpose of applying these margins
regard may be had, in respect of imports, to average
landed costs and selling prices of the monopoly and, in
respect of exports, to average prices charged by the mono-
poly for exports and sales in the hume market respectively,
over recent periods.
(2) Members newly establishing any such monopoly in
respect of any product shall not create a margin as defined
above greater than that represented by the maximum
rate of import or export duty which may have been
negotiated in regard ta that product pursuant to Article 24.
With regard to any monopolized product in respect -if
which a maximum martin has been established pursuant
to this Article, the monopoly shall as far as practicable end
subject to the other provisions of this Charter
(i) import from Members and older for sale at prices
charged within such maximum margins such quantities
of the product as will be sufficient to satisfy the full
domestic demand for the imported product, account
being taken of any rationing of the product to con-
sumers which may be in force at that time: and
(ii) in the case of an export monopoly, offer for sale
to purchasers in the territories of Members at prices
charged within such maximum margins quantities of
the product to the fullest extent that they can be made
available for exportation.
(3) In applying the provisions of this Article, due regard
shall be had for the fact that some monopolies are estab-
lished and operated solely for revenue purposes.
ARTICLE 33
{Expansion of Trade by Complete State Monopolies of
Import Trade*
Any Member establishing or maintaining a complete or
substantially complete monopoly of its import trade shall
promote the expansion of its foreign trade with the other
Members in consonance with the purposes of this Charter.
To this end sucb Member shall negotiate with the other
Members an arrangement under which, in conjunction with
the granting of tariff concessions by such other Members,
and in consideration of the other benefits of this Chapter,
it shall undertake to import in the aggregate over a period
products of the other Members valued at not less than an
amount to be agreed upon. This purchase arrangement
shall be subject to periodic adjustmentt]
Section F. Emergency Provisions-Consultation
ARTICLE 34
Emergency Action on Imports of Particular Products
(i) If, as a result of unforeseen developments and of the
effect of the obligations incurred under or pursuant to this
Chapter. any product is being imported into the territory
of any Member in such increased quantities and under
such conditions as to cause or threaten serious injury to
domestic producers of like or similar products (or, in the
case of a product, which is the subject of a concession
with respect to the preference, to producers in a territory
which receives or received such preference), the Mem-
ber shall be free to withdraw the concession, or suspend
the obligation, in respect of such product, in whole or
I part, or to modify the concession to the extent and for
such time as may be necessary to prevent such injury.
(2) Before any Member shall take action pursuant to
the provisions of paragraph (f), it shall give notice in
writing to the Organization as far in advance as may
be practicable and shall afford the Organization and
the other Members having a substantial interest as ex-
porters of the product concerned, a i opportunity to con-
sult with it in respect of the proposed action. In critical
and exceptional circumstances such action may be taken
provisionally without prior consultation
Provided that consultation shall be effected immedi-
ately following upon the taking of such action. If agree-
ment 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 other
affected Members shall then be free, not later than sixty
days after such action is taken, to suspend. upon the
expiration of sixty days from the date on whicb written
notice of such suspension is received by the Organization,
tbe application to the trade of the Member taking such
action, of such substantially equivalent obligations or
concessions under this Chapter the suspension of which
the Organization does not. oppose. In serious cases the
Organization may authorize an affected Member to suspend
concessions or obligations in addition to those which may
be substantially equivalent to the action originally taken.
* See Part II, Chapter III, Section E, paragraph 3.
56308
ARTICLE 35
Consultation-Nullification or Impairment
(z) Each Member will accord sympathetic consideration
to, and will 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, quantitative and exchange
regulations, state-otrading operations, sanitary laws and
regulations for the protection of human, animal or plant
life or health, and generally all matters affecting the opera-
tion of the Chapter.
(2) If any Member should consider that any other
Member has adopted any measure, whether or not it
conflicts with L.e term of this Charter, or that any situa-
tion has arisen, which has the effect of nullifying or impair-
ing auy object of this Charter, the Members concerned
shall give sympathetic consideration to such written repre-
sentations or proposals as may be made with a view to
effecting a satisfactory adjustment of the matter. If
no such adjustment can be effected, the matter may be
referred to the Organization, which shall, after investi-
gation, and, if necessary, after consultation with the
Economic and Social Council of the United Nations and
any other appropriate inter-governmental organizations,
make appropriate recommendations to the Members con-
cerned. The Organization, i' it considers the case serious
enough to justify such action, may authorize a Membe;
or Members to suspend the application to any other Mem-
ber or Members of such specified obligations or conces-
sions under tais Chapter as may be appropriate in the
circumstances, If such obligations or concessions are in
fact suspended, any affected Member shall then be free, not
later than sixty days after such action is taken, to with-
draw from the Organization upon the expiration of sixty
days from the date on which written notice by the
Organization of such withdrawal is received,
Section G. Relations with Non-Members
ARTICLE 36
Contractual Relations with Non-Members-Treatment of
the Trade of Non-Members
This subject will be further considered at a later stage
Section H. General Exceptions
ARTICLE 37
To be considered and drafted at a later stage
Section I Terrtorial Application
ARTICLE 38
Territorial Application of Chapter V-Customs Unions-
Frontier Traffic
(z) The provisions of Chapter V shall apply to thi cus-
toms territories of Members. If there are two or more
customs territories under the jurisdiction of any Member,
each such customs territory. shall be considered as a
separate Member for the purpose of interpreting the pro-
visions of Chapter V.
(2) The provisions of Chapter V shall not b. construed to
prevent
(a) advantages accorded by any Member to adjacent
countries in order to facilitate frontier traffic; or
(b) the formation of a union for customs purposes
of any customs territory of any Member and any other
customs territory
Provided that the duties an other regulations of com-
merce imposed by any such union in respect of trade
with other Members shall not on the whole be higher or
more stringent than the average leved of the duties and
regulations of commerce applicable in the constituent
territories prior to the formation of such union.
(3) Any Member proposing to enter into any union
described in sub-paragraph (2) (b) shall consult with the
Organization and shall make available to the Organization
such information regarding the proposed union as will
enable the Organization to make such reports and recom-
mendations to Members as it may- deem appropriate.
(4) The Members recognize that there' may in ex-
ceptional circumstances be justification for new preferential
arrangements requiring an exception to the provisions of
Chapter V. Any such exception shall be subject to
approval by the Organization pursuant to paragraph (2) of
Article 66.
* See Part Il. Chapter ITI. Section F.
f See Part II, Chapter III, Section B.
A 17 34
(5) For the purpose of this Article a customs territory
shall be understood to mean any area within which separate
tariffs or other regulations of commerce are maintained
with respect to a substantial part of the trade of such
area. A union of customs territories for customs purposes
shall be understood to mean the substitution of a single
customs territory for two or more customs territories, so
that all tariffs and other restrictive regulations of com-
merce as between the territories of members of the union
are substantially eliminated and substantially the same
tarifs and other regulations of commerce are applied by
each of the members of the union to the trade of territories
not included in the union.
CHAPTER VI
RESTRICTIVE BUSINESS PRACTICES
ARTICLE 39
Policy Toward Restrictive Business Practices
(r) Members agree to take appropriate measures, indivi-
dually and through the Organzation, to prevent in inter.
national trade, business practices which restrain com-
petition, limit access to markets or foster monopolistic con-
trol whenever such practices have harmful effects on the
expansion of production and trade and the maintenance
in all countries of high levels of real income, or on any
of the purposes of the Organization set forth in Article r.
(2) Without limiting the generality of paragraph (x),
Members agree that the practices listed in paragraph (3)
below, when they and engaged in or are made effec ive by
(a) an international combination, agreement or other
arrangement among commercial enterprises, including
such an arrangement among private commercial enter-
prises, among public commercial enterprises (i.e., trad-
ing agencies of governments or enterprises in which there
is effective government control), or between private and
public commercial enterprises;
(b) one or more private commercial enterprises
and when such commercial enterprises, individually or
collectively, possess effective control of international
trade, among a number of countries or generally in one or
more products, shall be subject te investigation, in accord-
ance with the procedure provided by the subsequent
Articles of this Chapter, if the Organization considers
them to have or to be about to have such harmful effect
as are described in paragraph (I).
(3j The practices referred to in paragraph (z) are as
follows:
(a) fixing prices or terms or conditions to be observed
in dealing with others in the purchase, sale or lease of
any product;
(b) excluding enterprises from any territorial market
or field of business activity, allocating or dividing any
territorial markets or field of business activity, allocating
customers, or fixing sales or purchase quotas;
(c) boycotting or discriminating against particular
enterprises;
(d) limiting production or fixing production quotas;
(e) suppressing technology or invention, whether
patented or unpatented; *
(t) extending the use of rights under patents, trade
marks or copyrights to matters not properly within tis
scope, or to products or conditions of production, use
or sale which are not the immediate subjects of the
authorized grant.
ARTICLE 40
Procedure With respect to Compiaints and Conferences
Members agree that the Organization shall:
(a) Arrange, if it considers such action to be justified,
for particular Members to take part, in a conference
requested by any -Member :which considers that any
specific practices exist which have or are about to have
the effect described is paragraph (r) of Article 39.
(b) Consider each written complaint submitted by any
Member or, with the permission of a Member, sub-
mitted by any affected person, organisation or business
entity within that Member's jurisdiction, claiming that
specific practices exist which have or are about to have
the effect described in paragraph (r) of Article 39, and
prescribe the minium information to be included in
such complaints.
(c) Request each-Member concerned to obtain such
information as the Organization may deem necessary,
including for example, statements from commercial
enterprises within its jurisdiction and then determine
whether further investigation is justified.
(d) If it is considered that further investigation is
justified, notify all Members of each such complaint,
request the complainant or any Member to provide such
information relevant to the complaint as it may deem
necessary and conduct or arrange for bearings at which
any Member and the iparties alleged to have been
engaged in the practice will have opportunity to be
heard.
(e) Review all information and come to its findings
whether the practices in question have the effect
described in paragraph (r) of Article 39.
(t) Report to all Members the findings reached and
the information on which such findings are based. If
it finds that the practices have had the effect described in
paragraph (r) of Article 39, request each Member con-
cerned the take every possible action to prevent the con-
tinuance or recurrence of the practices, and at its dis-
cretion recommend to the Members concerned remedial
measures to be carried out in accordance with their
respective laws and procedures.
(g) Request all Members concerned to report fully
the action they have taken to achieve these results.
(h) Prepare and publish, as expeditiously as possible
after enquiries have been completed, reports on all com-
plaints dealt with under sub-paragraph (d), showing
fully the findings reached, the information on which
such fings are based and the action which Members
concerned have been recommended to take Provided
that publication of such reports or of any portion
thereof may be withheld if it deems this course justified
Provided also that the Organization shall not, if a
Member so request, disclose to any person confidential
information furnished by that Member which would
materially damage the legitimate business interests of a
commercial enterprise.
(i) Report to all Members and make public if it is
deemed desirable, the action which has been taken by
the Members concerned to achieve the results described.
in sub-paragraph (j).
ARTICLE 41
Studies Relating to Restrictive Business Practices
The Organizatian shall be authorised to
(a) Conduct studies, either on its own initiative or
at the request of any Member, or of the United Nations
or of any specialized agency relating to
(i) types of restrictive business practices in inter-
national trade;
(ii) conventions, laws and procedures such as those
concerning incorporation, company registraion,' in-
vestments, securities, prices, markets, fair trade prac-
tices, trade marks, copyrights,, patents and the ex
change and development of technology, in so far as
they are relevant to restrictive business practices, and
to request information from Members = connection
with such studies;
(b) Make recommendations to Members concerning
such conventions, laws and procedures as are relevant
to their obligations under this Charter;,
(c) Arrange conferences, when requested by Mem-
bers, for purposes of general consultation on any matters
relating to restrictive business practices.
ARTICLE 42
Obligations of Members
(y) In order to implement she preceding .Articles of
this Chapter, each Member undertakes to
(a) Taie all possible steps by legislation or otherwise
to ensure that private and public commercial enter-
prises within its jurisdiction do not engage in prac-
tices which have the effect described in paragraph (I)
of Article 39; and
(b) to take the fullest account of his Organization's
findings, requests and recommendations made under
sub-paragraph (f) of Article 40, in the light of its obliga-
tions under Article. 39, in considering thd initiation of
action in accordance with its system of law and economic
organization to prevent within its jurisdiction the con-
tinuance or recurrence of any practices. which the
Organization finds to have had the.effect described. in
paragraph (r) of Article 39 35
(2) Establish procedures to deal with complaints, con-
duct investigations, prepare information and reports
requested by the Organization and generally assist in
preventing practices which have the effect described in
paragraph (z) of Article 39. these measures to be taken
in accordance with the particular system of law and
economic organization of the Member concerned.
(3) Conduct such investigations as may be necessary and
pIacticable to secure information requested by the Organi-
zation or to prevent practices which have the effect
described in paragraph (z) of Article 39.
(4) Purnish to the Organization, as promptly as possible
and to the fullest extent feasible, such information as is
requested by the Organization under sub-paragraphs (c),
(d) and (g) of Article 40 and under sub-paragraph (a)
of Article 4i, provided that confidential information affect-
ing national security or production technique may be with-
held,
(5) Report as requested by the Organisation under sub-
paragraph.(g) of Article 40, the action taken, indepen-
dently or in concert with other Members, to implement
recommendations made by the Organization under sub-
paragraph!.() of Article 40, and, in cases in which no
action is taken, to explain to the Organization the reasons
therefor and discuss the matter further with the Organiza-
tion if requested to do so.
(6) Take part in conferences upon the request of the
Organisation in accordance with sub-paragraph (c) of
Article 4 .
ARTICLE 43
Supplementary Enforcement Arrangments
(z) Members may, by mutual accord, co-operate with
each other in prohibitive, preventative or other
measures for tho purpose of making more effective any
* remedial order issued by a duly authorized agency of any
Member in furtherance of the objectives of this Chapter.
(2) Members participating in such co-operative actions
shall notify the Organization.
ARTICLE 44
Continued Effectiveness of Domestic Measures against
Restrictive Business Practices
* Any act or failure to act on the part of the Organization
shall not preclude any Member from enforcing any
national statute or decree directed towards preventing
monopoly or restraint of trade.
ARTICLE 45
Exceptions to the Provisions of the Chapter
(z) The undertakings expressed in this Chapter shall
not apply to
(a) inter-governmental commodity agreements meet-
ing the requirements of Chapter VII;
(b) the international agreements excepted in Article
59.
(2) Notwitbstanding the foregoing the Organization may
in its discretion make recommendations to Members and
to appropriate inter-governmental organizations concern-
ing any features of the agreements referred to in sub-
paragraph (z) (b) which may have the effect described
in paragraph (z) of Article 39.
CHAPTER VII
INTER-GOVERNMENTAL COMMODITY ARRANGEMENTS
Section A. General Considerations
ARTICLE46
General Statement on Difficulties Relating to Primary
Commodities
Members recognize that thre relationship between produc-
tion and consumption of some primary commodities may
present special difficulties. These special difficulties are
different on character from those which manufactured good
present generally. They ariseout of such conditions as the
disequilibrium between production and consumption, the
accumulation of burdensome stocks and pronounced fluc-
tuations in prices. They may have a seriously adverse
effect on the interest. of both producers and consumers.
Moreover they may have widespread repercusions which
would jeopardize the general policy of economic expansion.
ARTICLE 47
Objectives of Inter-governmental Commodity
Arrangements
Members agree that inter-govermmental commodity
arrangements may be employed to achieve the following
objectives:
(I) To enable countries to find solutions to the special
commodity difficulties referred to in Article 46 without
resorting to action inconsistent with the purposes of the
Charter.
(2) To prevent or alleviate the serious economic
problems which may arise when production adjustments
cannot be effected by the free play of market forces as
rapidly as the circumstances require.
(3) To provide, during the period which may he
necessary, a framework for the consideration and
development of measures which will have as their pur-
pose economic adjustments designed to promote the
expansion of consumption or a shift of resources and
manpower out of over-expanded industries into new and
productive occupations.
(4) To moderato pronounced fluctuations in the price
of a primary commodity above and below the level which
expresses the long term equilibrium between the forces
of supply and demand.
(5) To maintain and develop the natural resources
of the world and protect them from unnecessary
exhaustion.
(6) To provide for expansion in the production of a
primary commodity which is in such short supply as
seriously to prejudice the interests of consumers.
Section B. Inter-governmental Commodity Arrangements
in General
ARTICLE 48
Special Commodity Studies
(z) A Member or Members substantially interested in the
production, consumption or trade of a particular
primary commodity shall be entitled, if they consider that
special difficulties exist or are expected to arise regarding
the commodity, to ask that a study of that commodity
be made.
(2) Unless it resolves that a prima facie case has not
been established, the Organization shall promptly invite
the Members substantially interested in the production,
consumption or trade of the commodity to appoint repre-
sentatives to a Study Group to make a study of the
commodity. Non-Members having a similar interest may
also be invited.
(3) The Study Group shall, in the light of an investiga-
tion of the root causes of the problem, promptly report
its findings regarding the production, consumption and
trade situation for the commodity. If the Study Group
finds that special difficulties exist or are expected to arise,
it shall make recommendations to the Organization as to
how best to deal with such difficulties. The Organisation
shall transmit promptly to Member any such findings and
recommendations.
ARTICLE 49
Commodity Conferences
(z) On the basis of the recommendations of the Study
Group or on the '. ,is of information about the root
causes of the problem agreed to be adequate by the
Members sabstantially interested in the 'production, con-
sumption or trade if a particular primary commodity,
the Organisation shall promptly at the request of a
Member having a substantial interest, or may, on its own
initiative, convene an inter-governmental conference -for
the purpose of discussing measure designed to meet the
special difficulties which have been found to exist or are
expected to arise.
* (z) Any Member having a substantial interest in the
production, consumption or trade of the commodity shall
*be entitled to participate in the Conference, and non-
Members having a similar interest may be invited be the
Organization to participate.
(3) If the Conference recommends to Members the adop-
tion of any type of inter-governmental commodity
arrangement, such arrangement shall conform to the
principles stated in Article 51.. 36
ARTICLE 50
Relations with Specialised Agencies
(z) Competent specialized agencies, such as the Food
and Agriculture Organization, shall be entitled-
(a) to submit to the Organization any relevant study
of a primary commodity:
(b) to ask, that a study of a primary commodity be
made.
(2) The Organization may request any specialized
agency, which it deems to be competent, to attend or take
part in the work of a Study Group or of a Commodity
Conference.
ARTICLE 51
General Principles of Inter-governinental Commodity
Arrangements
Members undertake to adhere to the following principles
governing the operation of all types of inter-governmental
commodity arrangements:
(z) Such arrangements shall be open initially to par-
ticipation by any Member on terms no less favourable
than those accorded to any other country party thereto
and thereafter upon such terms as may be approved
by the Organization.
(2) Non-Members may be invited by the Organiza-
tion to participate in such arrangements, and the provi-
sions of paragraph (x) shall apply to any non-Members
so invited. 1
(3) Such, arrangements shah] include provision for
adequatte participation of countries substantially
interested. in.the importation or consumption of the
commodity as well as those substantially interested in its
exportation or production.
(4) ln such arrangements participating countries,
which are largely dependent for consumption on imports
of the commodity involved shall, in determinations
made relating to substantive matters, have together a
voice equal to that of those largely: interested in
obtaining export markets for the commodity, provided
that those countries, which are largely interested in the
commodity but which do not fail precisely under either
of the above classes, shall have an appropriate voice.
(5) Such arrangements shah provide, where practic-
able, for measures designed to expand world consump-
tion of the commodity.
(6) Members agree that full publicity shah be given
ta any inter-governmental commodity, arrangement pro-
posed or concluded, to the statements of considerations
and objectives advanced by the proposing Members, to
the operation of the arrangements and to the nature
and development of measures adopted to correct the
the underlying situation which gave rise to the arrange-
ment.
Section C.-Inter-Govermental Commodity Agreements
involving the Regulation of Production, Trade or Prices
ARTICLE 52
Circumstances Governing the Use of Regulatory Agree-
ments
Members agree that regulatory agreements may bo em-
ployed only when
(x) A burdensome surplus of a primary commodity has
developed or is expected to develop, which, because a
substantial reduction in. price does not readily lead to
a significant-increase in consumption nor to .a signifi-
cant decrease. in the production of that commodity,
would not, in the absence of specific governmental
action, be corrected by normal marketing forces alone
in time to prevent serious hardship to. producers among
whom are small producers who account for a substan-
- tial portion of the totjl output; or
(2) Widespread unemployment i connection with a
particular primary commodity, arising out of difficulties
of the kind referred to in Article 46, has developed or
is expected to develop, which, in the absence of specifc
governmental action, would not be corrected by normal
marketing forces alone in time to prevent widespread
and undue hardship to workers because, in the case of
the industry concerned, a substantial reduction of price
does not lead to a significant increase in consumption
- but to the reduction of emploment, and because areas
in which the commodity is produced in substantial quan-
tity do not afford alternative employment opportunities
for the workers involved; or
(3) The Organization finds that, for a commodity other
than a primary commodity, exceptional circumstances
justify such action.
Such agreements shall be subject not only to the pri-
cipls set forth in this Cbapter but also to any other
requirements which the Organization may establish.
ARTICLE 53
Additional Principles Governing Regulatory Agreements
Members undertake to adhere to the following principles
governing regulatory agreements in addition to those stated
in Article 5I:
(x) Members agree not to enter into any new regula-
tory agreement unless it bas been recommended by a
Conference called in accordance with Article 49. Never-
theless Members substantially interested in the produc-
tion, consumption or trade of a particular primary com-
modity may proceed by direct negotiation td the con-
clusion of an agreement, provided that it conforms to
the other provisions of this Chapter, if there bas been
unreasonable delay in the proceedings of the Study
Group or of the Commodity Conference.
(2) Under such agreements participating countries
shah afford equitable treatment as between non-partici-
pating Members and participating countries, giving
equitable advantages in return for the observance of
equitable obligations.
(3) Participating countries shah. in matters the sub-
ject of such agreements, alford non-participating Mem-
ber countries treatment no less favourable than that
accorded to any non-Member country which does not
participate in the agreement.
(4) Such agreements shall be designed to assure the
availability of supplies adequate at all times' for world
demand at reasonable prices.
(5) Such agreements shall, with due regard to the need
during a period of change for preventing serious econo-
mic and social dislocation and to the position of pro.
ducing areas which may be suffering from abnormal
and temporary disabilities, make appropriate provision
to afford increasing opportunities for satisfying world
requirements from sources from which such requirements
can b. supplied most effectively and economically.
(6) Participating countries shah formulate and adopt
a programme of economic adjustment believed to b.
adequate to unsure substantial progress toward solution
of the problem within the time limits of the agreement.
ARTICLE 54
Administration of Regulatory Agreements.
(r) Each regulatory agreement shafl provide for, a
governing body, hereinafter referred to as a Commodity
Council.
(2) Each of the countries participating in an agreement
shall be entitled to b. represented by a.member on the
Commodity Council. These m-mbers alone shah bave the
right to vote. Their voting power shahl be determined in
such a way Rs to conformn with the provisions of paragraph
(4) of Article s -.
(3) The Organization shall b. entitled to appoint-a non-
voting member to eacb Commodity Council and'may 'i-
vite any competent specialized agency to nominate a
non-voting member for appointment to a Commodity
Couneil.
(4) Each Commodity Council shal have a non-voting
chairman who, if the Council so reqùestsi shaU] be noml-
nated by the Organisation.
(S) The secretariat of each Commodity Counaci shall b.
appointed by the Council after. consultation with the
Organization.
(6) Each Commodity Council shaU adopt appropriate
rules of procedure and regulations regarding its activities.
These rules and regulations shall be subject to the ap-
proval of the Organization.
(7) Each . Commodity Council shah] make peiodic re-
ports to the Organization on the operation of.the agre.
ment which it administers. In addition it shaU make such
special reports as thie Organization may specify or as
the Council itself considers to be qi value to the,.Ogania.
tion. -
(8) The expenses of a Commodity'Ctincilaban bo boni
by th. participating countries. 37
ARTICLE 55
Provision for Initial Terms, Review, and Rsnewal of
Regulatory Agreements
Regulatory agreements shall remain in effect for not
more than fivo years. Their renewal shall be subject
to th. principles stated elsewhere in this Chapter. Periodi-
cally, at intervals no greater than three years, the Organi-
zation shall prepare and publisb a review of the operation
cf each agreement in the light of the principles set forth
in this Chapter. Moreover each commodity agreement
shall provide that if its operations have failed substantially
to conforna to the principles laid down in this Chapter,
participating countries shall revise ';he agreement to con-
form to tue principles or shall t6rminate -t. Wben an
agreement is terminated, thU Organization shall take charge
over archives, statistical material and other possessions
of the Commodity Council.
ARTicL r6
Settlement 'f Disputes
Any question or difference concerning the interpretation
cf the provisions cf a regulatory agreement or arising out
cf its operation shal bo discussed originally by the Com-
modity Caunci, In Uie absence of agreement, the que-
tien shall be referred ta tb Commodity Commission for
examination and recommendation to the Executive Board.
The Executtive Board shall then issue a ruling subject to
thi provisions of Article 71.
Miscllaneous Provisions
ARTICLE 57
Obligations of Members regarding Existing and Proposed
Commodity Arrangements
(x) Menmbers undertake to transmit to the Organization
the full text of each inter-governmental commodity
arrangement in which they are participating at the tine
of the coming into force of their obligations under this
Charter. Members also agree to transmit to thc Organi-
zatizn appropriate information regarding the formulation,
provisions and operation cf such arrangements. Members
agree to conforma with thc decisions made by the Organi-
sation regarding their continued participation in any such
later-governmental commodity arrangement which, after
review by the Organization, shall have been found te be
inconsistent witho te intentions cf tuis Chapter.
() Members undertake ta transmit ta the Organization
appropriate information regarding any negotiations,
looking ta tue'conclusion cf an inter-governmental com-
modity arrangement, in whici ttey are participating at
tue tiee cf the coming into force cf tueir obligations under
this Charter. Members also agree ta conform with de-
cicions made by tue Organisation regarding tucir continufn
participation in any sscu negotiations. The Organization
may declare that such negotiations conform to the require-
ments for a Study Group or a Comanodity Conference as
tue case may be.
ARTICLE .58
Gosnral UndertaMng by Members
Membomb not parties to a particular commodity
arrangement undertake e ta give tue mos t favourable pas-
sible consideration ta any recommendation by a Com -
modity Councci for expanding consumption of tho com-
modity in question.
- ~~~~ARTICLE 59
ExcePtions to .Prot. 'ns Relating g te nter-governm tai
Commodity Arrangements
(z) Tii. provisions of Chapter VVI are nnt designed ta
rover iater-goveramental commodity arrangements, which
relate solely ta'tue equitable distribution cf commodities
la short supply, or ta rover' tuao provisions of inter-
govenrnnental commodity arrangements wiichi appro-
priately relate to the protection of public marais or tue
protection cf iuMa.n, animal or plant life or bealtu
Provided tuat sncc arrangements are nnt used ta aacom-
ppisi results inconsistent with tue objectives cf Chapter
VI or Chapter VII. Members ageeo net ta participate la
sscb arrangements if they involve tue regulation cf pro-
duction, trade or prices, unless they are authorized or
provided i1c by a muftilateral convention subscribed ta by
a majority> of th'e nations affi or unless oprnie erated under
tue Orgainistion.
(.) NOne Of tue foregoing provisions of Chapter VII are
ta be interpreted as applying ta arrangements relating to
isasionable materials, to th e trai c in ann s, ammunitiann
and implemeots 'f wwr and ta such tsairc in other gpods
and materials as is carried on for the purpose of supplying
a military establishment or, in time of war or other
emergency in international relations, to the protection of
thi essential security interests of a Member.
ARTICLE 60
Definitions
(T) For the purposes of this Chapter a primary com-
modity is auy agricultural product or mineral which enter
world trade in substantial volume in a form customarily
called primary. The tern " primary commodity " mnay
include a primary co:nmodity on which minor processing
bas been performed in preparation for export. It may
alei issclude a group of primary commodities which are soa
closely rela-.ad te, onc another that they can conveniently
be dealt with in a single arrangement. Such a group may,
subject to paragraph (3) of Article 52, include appropriate
non-primary commodities.
(2) For the purposes of this Chapter the term
Member " or " non-Member " shall, where it is appro-
priate, be taken to mean a Member or non-Member with
its dependent territories. If a Member or non-Member
and its dependent territories form a group. of which one
or more units are mainly interested in the export of a
commodity and one or more in the import of the com-
modity, there may be either joint representation for al)
the associated territories or, where it is so desired, separate
representation for the territories mainly interested in ex-
port and separate representation for the territories mainly
interested in import.
(3) An inter-governmental commodity arrangement it
any accord between two or more governments relating to
a commoodity other than an accord relating to the purchase
and sale of a commodity falling under Section E of
Chapter V.
(4) A reçulatory agreement is an inter-governmental
commodity arrangement involving regulation of the pro.
duction, export or import of a commodity or regulation
of prices.
CHAPTER Vm
ORGANIZATION
Section A.-Functions and Structure of the Organisation
ARTSCLE 61
Functions
(z) It shall b. the function of th. Organization to
collect, analyse and publish information relating to inter-
national trade, including information relating tc com-
mercial policy, business practices and commodity problems
and to industrial and general economic development.
(2) To provide technical assistance and advice to
Members and to the United Nations and other international
organizadôns, including g such assistance and advice as may
be appropriate in connection with specific projects of in-
dustrialization or other o conomie development.
(3) To consult with, and ta make recommendations and
reports to Members regarding any matter relating ta tth
purposes cf the Organization or the operation cf tbis
Charter, including tii following:
(a) Recommondations or determinations relating te
the discharge o f the responsibilities cf the Organization,
or cf tho Members, under Chapter V.
(b) Reco mmendations as ta measures for lmplementlng
t-hh objectives witii regard t t- restrictive business
practice e set forth in Chapter VI.
(c) Recommendations regarding tii application nt
commodity arrangements under consideration by
Members cf the principles governing commodity arrange-
ments set forth in Chapter. VII and recommendations
initiating proposals for new commodity arrangements,
or proposing suci modifications, including termination
` cf commodity arrangements already concluded, as may
b. deemed appropriate under the commoodty principles
and in tho general interest.-
(d) Recommendations as ta measures for implenienting
Ui objectives cf the Organizatatn in encouraging and
assisting th e industrial and general economic de velop-
menten of Mmbesbsrs
(4) To co nsult witb Members regarding diputeo s grww.
ing out cf tih provisions cf this Charter:and to provide for
tii e tem e nt cf such disputes. - :es.
(( ) To maike recommendations for, and promoet tiio
acceptance by Members of, international agreementJ
designed ta mroeh ipre.iebases cf trade and to assure just
and equitable treabnent for tiio enterprises; skinus, capital, 3&
arts and technology brought from one country to another.
including agreements on the treatment of foreign nationals
and enterprises, on the treatment of commercial travellers,
on commercial arbitration and on the avoidance of double
taxation.
(6) To achieve an economy of effort in the performance
of the functions set out in this Article and to co-operate
with the United Nations and with other inter-governmental
organizations enerally in the attainment of the economic
and social objectives of the United Nations and in the
restoration and maintenance of international peace and
security.
(7) Generally to advise and to make recommendations
to Members and other international organizations and to
perform any other function appropriate to the purposes
of the Organization.
ARTICLE 62
Structure
The Organization shall havoc as its principal organs a
Conference, an Executive Board, Commissions as estab-
lished under Article 72, and a Secretariat.
Section B-The Conference
ARTICLI 63
Membership
(z) The Conférence shall consist of the representatives of
the Members of the Organization.
(2) Each Member shal1 have one representative and may
appoint alternates and advisers to its representative on
the Conference.
(3) No representative on the Conference may represent
more than one Member.
s
ARTICLE 64
voting
(z) Each Member shall have one vote in thie Conference.
(z) Except as may b. othenvise provided in this
Charer, decisions of the Conference shall bo taken by a
majority of the Mejnbers present and voting.
ARTICLE 65
Sessions, Procedure and Officers
(z) The Conferente shaU meet i regular annual sessions
and in such special sessions as occasion may require.
Special sessions shall bo convoked by the Director-General
at the request of the Executive Board or of a rnajority
of the Members.
(2) The Conference shall adopt its own ruies of proce-
dure. It sshall annually elect its President and other
officers.
ARTICLE 66
Powers and Duties
(z) The Conference shall have final authority to deter-
mine the policies of the Organisation. It may make recom-
mendations to the Members of the Organization and to
other international organizations rgarding any matter
pertaining to the purposes of the Organization.
(2) Th. Conference may, by the affirmative votes of
two-thirds of its Members, determine criteria and set up
procedures, for waiving, in exceptional circumstances,
obligations of Members undertaken pursuant to this
Charter.
(3) The Conference may delegate, to the Executive
Board authority to exercise or perform any of the powers
and duties of the Conference, except such specific powers
and duties as are expressly conferred or imposed upon the.
Conference:
(4) The Conférence shal1 approve the budget of the
Organization, and shall' apOrtion the expenses of th.
Organization among the Members.
(5) The Conference may develop and, by the airmative
votes of two-thirds of its Members, recommend for their
acceptance", conventions and agreements with -respect to
any matter within the comp ce of tihe Organization.
Bach Member undertakes that it will, within eighteen
months after snch recommendation, by tha Conference,
make a decision upnt. FLac Momber shall notify the
Director-General of tho action taken and, in th. event of
rejection of such recommendation, shah furnish a state-
ment of th. reasons therefor...
(6) The Confeorence shall establish, procedures for making
tho determinations provided for in Article 30 and in para-
grapi (3) of Article 52, whereby any such determinations
sha be made through the Organizsation by consultation
among thu Mombers having an important interest in the
trade in the product concerned.
(7) The Conference shall establish procedures for making
the determinations and recommendations provided for in
sub-paragraph (3) (d) of Article 26, paragraph (z) of
Article 34 and Articl" 35.
(8) Thi Conference may, by the affirmative votes of
two-thirds of its Members present and voting, adopt th.
standards, nomenclature, terms and forms described in
paragraph (7) of Article 22.
(9) The Conference shall determine the site of the
Organization and rhall establish such branch offices as it
may consider de!,rrable.
Section C-Intrim Tarif Committ -
ARTICLE 67
(I) Tlere shall be an Interim Tarff Committee which
shall act temporarily on behalf of the Organisation la the
making of recommendations and determinations pursuant
to paragraph (3) of Article 2s.
(2) The Committee shall consist originally of those
Members of tho Organization which shall have made effec-
tive the General Agreement on Tariffs and Trade dated
................... .i,194 . Any other Member of the
Organization shal b. a member of the Committee when,
in the judgrnent of the Committee, that Member shall
Lave completed negotiations pursuant to paragraph (Z) of'
Article 24 comparable la scope or effect to those completed
by the crigil members cf tho Committee. When the
nuzaber cf Members cf the Organisation, which are
members of the Committee, shal constitute two-thirds of
the total number of Members of the Organization, thie
Commnittee shall terminate and its functions shall be trans-
ferred to the Conferenc.
(3) Eaeh member of the Commiittee shall have one
vote.
(4) Decisions of the Committee shall be taken by a
majority of th. members present and voting.
(5) The Committeo shal adopt its own rules of pro-
cedure, including provision regarding the election of Ità
* officers.
Section D.-The Ex#cutive Board
ARTICLE 68
Membership
First Alternative
(i) The Executive Board shall consist cf fifteen Memzbers
of th. Organisation elected by the Conference.
(2) Subject to the provisions of paragraph (3) ono-third
of thie members of te Executive Board shall be elected
eacb year for a term of three years. A retiring member
shall be eligible for immediate re-elction..
(3) At the first election fifteen members of the Executive
Board shall) be chosen. The term of office of five members
shall expire at the end of one year' and of five other
members at the end of two years, la accordance with
arrangementsr made by the Conference.
(4) Each member of the Executive Board shal have one
representative and may appoint alternates and advisers
to its representative.
Second Alternative
(z) The Executive Board shala consist cf fifteen menàbem
of the Organisation elected by the Conference, five of wihom
shall b. eligible for immediate re-election.
(2) Subject to the provisions of paragraph (3) on-third
of the members of the Executive Board shah be dlectod
ochi year fora term of three yeass.
(3) Same as first alternative.
(4) Same as first alternative.
Ihird alternative.
(I) The Executive Board shal1 consist of ffteen Members
of the Organization elected by the Conference. :,.By virtue
of their economic importance, six Members.? shal be
appointed as permanent members; nine' otle1r.Members
shall be granted non-permanent seats. The toal'number
of seats may b. increased by a'decision of the'Confereace
taaen with a two-thirds majority of its. mmbers. 59
(2) The non-permanent members of the Executive Board
shall be chosen for a period of three years. At the first
election of the non-permanent members, three members
shall bc elected for a term of one year and three others for
a term of two years. A retiring member shall not be
eligible for immediate re-election.
(3) These elections shall take place in accordance with
arrangements to be approved by the Conference by a two-
thirds majority of its members.
(4) Each member of the Executive Board shall have
one representative who may appoint alternates and
advisers.
Fourth Alternative
(I) The Executive Board shall consist of twenty Members
of the Organization.
(2) Subject to the provisions of paragraph (3), one-half
of the members of the Executive Board shall serve for a
term of five years and shall be appointed by the Members
of the Organization having the largest share in the world
trade and, belonging to the following trade groups: Europe
(two Directors), North America (two Directors), Latin
America (two Directors), Asia (two Directors), Oceania (One
Director) and Africa (one Director). Any change in the
relative position in world trade of members shall be taken
into consideration at the end of each term of five years.
(3) One-half of the members of the Executive Board shall
be elected annually by members of the Conference other
than those entitled to appoint a member of the Board in
accordance with the provisions of paragraph (2). A retir-
ing member shall b. eligible for immediate re-election.
(4) The Conference, upon the recommendation of the
Executive Board, shall establish procedures for the purpose
of carrying out the provisions of this Article.
(5) Each member of the Executive Board shall have one
representative and may appoint alternates and advisers te
its representatives.
ARTICLE 69
Voting
(I) Each member of the Executive Board shall have one
vote.
(2) Decisions of the Executive Board shall b. made by
a majority of members present and voting.
ARTICLE 70
Sessions, Procedures and Oficers
(z) The Executive Board shall adopt its own rules of
procedure, including rules concerning the convening of its
sessions.
(2) The Executive Board shall annually elect its Chair-
map and other officers, who shall bo eligible for re-election.
(3) The Chairman of the Executive Board. as such, shall
be entitled to partiçipate, without the right to vote, in the
deliberations of the Conference.
(4) Any Member of the Organization, which is not a
member of the Executive Board, shall b. invited to send a
representative to any discussion by the Board of a matter
of particular and substantial concern to that Member.
Such representative shall, for the purpose of such discus-
sion, have all the rights of members of the Board except
the right to vote.
ARTICLE 71
Power and Duties
(z) The Executive Board shall be responsible for the
execution of the policies of the Organization and shall exer-
cise the powers delegated to it by the Conference. It shall
supervise the activities of the Commissions provided for in
this Charter and shall take such action upon their recoin-
mendations as it may deem appropriate. It shall provide
adequate machinery to review the work of the Organization
relating to industrialization and general economic develop-
ment.
(2) The Executive Board may make recommendations
to the Conference, to the Members of th. Organization, or
to other international organizations, on any subject falling
within the scope of the Organization, and shall approve the
preliminary agenda of the Conference.
'.3) The Executive Board may recommend to the Confer-
ence the admission of new Members of the Organization.
(4) The Executive Board may refer to the Commissions
such questions as it may deem appropriate.
Section E.-The Commissions
ARTICLE 72
Establishment
The Conference shall establish a Commission on Commer-
cial Policy, a Commission on Business Practices and a
Commodity Commission and may establish such other
commissions as may be required. Commissions shall be
responsible to the Executive Board.
ARTICLE 73
Composition and Procedure
(z) Commissions shall bo composed of persons invited
by the Executive Board and qualified by training
or experience to carry out the functions of the Com-
missions in accordance with the purposes of the
Organisation.
(2) The number of members of each Commission aud
the conditions of service of the members of each Com-
mission shall b. determined in accordance with regulations
prescribed by the Conference.
(3) Each Commission shall elect its Chairman and shall
adopt its own rules of procedure, subject to approval by
the Executive Board.
(4) The Chairmen cf Commissions shah bc entitled to
participate, without the right. to vote, in the deliberations
of the Executive Board and of the Conference.
(5) As set forth more fully in paragraph (2) of
Article 8 , the Organization may make arrangements for
representatives of other inter-governmental organizations
having a special interest la the activities of any of the
Commissions to participate in the work of such Com-
missions, pursuant te agreements with these organizations.
ARTICLE 74
General Functions
The Commissions shall have the functions set forth in
Articles 75, 76, and 77, and shall perform such other
functions as the Conference or the Executive Board may
assign to then, including such functions as the Executive
Board may deem appropriate in connection with the
settlement of disputes.
ARTICLE 75
Functions of the Commission on Commercial Policy
To be considered and drafted at a later stage.
ARTICLE 76
Functions ot the Commission on Business Practices
The Commission on Business Practices shall have the
following functions:
(z) In accordance with Article 4. to
(a) Arrange, at the request of a Member, consul-
tative conferences with other Members and make
appropriate reports- for communication at the dis-
cretion of the Executive Board to all Members;
(b) Receive and consider written complaints con-
cerning restrictive business practices in international
trade;
(c) Prescribe minimum information required la such
complaints
(d) Notify Members of complaints received and
request information relative to such complaints;
(e) Request further data from Members and con-
duct or arrange for hearings;
(1) Report to the Executive Board-Its findings and
its recommendations of remedial measures;
(g) Request reports from Members on the action
taken as a result cf recommendations made to them
by the Executive Board; and -
(k) Prepare report for publication by the
Executive Board.
(2) In accordance with Article 41, and subject to the
approval of the Executive Board, to conduct studies
relating to business practices which restrain competi-
tion, restrict access to markets or foster monopolistic
control in international trade, or relating to inter-
national conventions or national laws and procedures
designed to carry out the objectives of Article 40 or to
those which may effect .such objectives, and to make
recommendations when appropriate to the Executive
Board for action by Members. 40
(3) To advise the Executive Board as ta information
and other materials ta be obtained from Members or
other sources in the discharge of the duties and
responsibilities of the Commission.
(4) To perform such other functions, pursuant to the
objectives of Chapter VI as may be assigned to it from
time to time by the Executive Board.
ARTICLE 77
Functions of the Commodity Commission
To be considered and drafted by the Drafting Com-
mittee.
Section F.-The Secretariat
ARTICLE 78
Composition
(I) The Secretariat shall consist of a Director-General
and such staff as may bo required.
(2) The Director-General shall have authority to
appoint such Deputy Directors-General as he deems
necessary. Such appointments shall be made in
accordance with regulations approved by the Conference.
ARTICLE 79
The Direçtor-General 7
(e) The Director-General shall be appointed by the
Conference upon the recommendation of the Executive
Board. His powers, duties. terms and conditions of office
shall be in accordance with regulations approved by the
Conference. He shall be the chief administrative officer
of the Organization, subject to the general supervision
of the Executive Board.
'(2) The Director-General or a deputy designated by him
shall participate, without the right to vote, in all meetings
'of the Conference, of the Executive Board, of the Com-
missions and of the committees of the Organization. The
Director-General shall have authority to initiate proposals
for the consideration of any organ of the Organization.
He shall make an annual report to the Conference and
to the Executive Board on the work of the Organization
and shall prepare the annual budget for submission to
the Conference.
ARTICLE 80
Employment of Staff
(x) The Director-General shall appoint the staff of the
Secretariat and fix its duties and terms and conditions of
service in accordance with regulations approved by the
Conference. The paramount consideration in the employ-
ment of the staff and in the determination of its con-
ditions of service shall be the necessity of securing
the highest standards of efficiency, competence and
integrity, due regard being paid to the importance of
recruitment on as wide a geographical basis as possible.
(2) The conditions of service, such as the provisions
governing qualifications, salary, tenure and retirement of
members of the Secretariat shall be fixed, so far as prac-
ticable, in conformity with those for members of the
Secretariat of the United Nations and of other specialized
agencies which have been or may be brought into relation-
ship with the United Nations as provided in Article 57 of
the Charter of the United Nations.
Section G.-Miscellaneous Provisions
ARTICLE 81
Relations with other Organizations
(I) The Organization shall be brought into relationship
with the United Nations, as soon as practicable as one
of the specialized agencies referred to in Article 57 of the
Charter of the United Nations. This relationship shall be
-effected through an agreement with the, United Nations
:nder Article 63 of the Charter of the United Nations
which agreement shall be concluded by the Director-
General and approved by the Conference. The agreement
shall provide for effective co-operation between the two
Organizations in the pursuit of their common purposes.
and at the same time shall recognize the competence of
the Organization within its jurisdiction as defined in this
Charter. Notwithstanding the provisions of Article 85, any
changes in this Charter required under the agreement
which do not involve new obligations by Members, shall
be effective on approval of the agreement by the
Conference.
* See Part Il, Chapter V, Section V, Paragraph 6.
(2) The Organization shall co-operate with other inter-
goveramental organizations whose interests and activities
are related to its purposes. Effective working relation-
ships with such organizations, which may include the
establishment of joint committees or provision for re-
ciprocal representation at meetings or such other
measures as may be necessary ta assure effective co-
operation, may be established by the Director-General.
Formal arrangements for co-operation with such
organizations may be made by the Executive Board.
(3) The Organization may make suitable arrangements
for consultation and co-operation with non-governmental
organizations concerned with matters within its com-
petence and may invite there to undertakre specific tasks.
() Whenever the Conference of the Organization and
the competent authorities of any other international
organisation, whose purposes and functions lie within the
competence of the Organisation, deem it desirable to
effect a transfer of its resources and functions to the
Organization, to incorporate it into the Organization or
to bring it under the supervision or authority of the
Organization, the Director-General, subject to the
approval of the Conference, may enter into mutually
acceptable arrangements for this purpose. This
Organization may acquire such resources and assume
such functions of, or incorporate or exercise such control
over, such other organizations as may be provided by
any convention or agreement appropriate to the purpose.
In accordance with their respective constitutional pro-
cedures, the Members shall take such step as the Con-
ference may determine to integrate such other inter-
national organizations into the structure of the
Organization.
ARTICLE 82
International Responsibilities of Personnel of the
Organization
(e) The responsibilities of the members of the Com-
missions provided for in Article 72, of the Director-
General, of the Deputy Directors-General and of the staff
shall be exclusively international in character. In the
discharge of their duties they shall not seek or receive
instructions from any government or from any authority
external ta the Organaization. They shall refrain from
any action which knight prejudice their position as
international officials.
(2) Each Member of the Organisation undertakes to
respect the international character of the responsibilities
of these persons and not to seek to influence them. in the
discharge of their duties.
- ARTICLE 83
Legal Capacity of the Organization
The Organization shall enjoy in the territory of each
of its Members such legal capacity as may be necessary for
the exercise of its functions' and for the fulfilment of its
purposes.
ARTICLE 84
Privileges and Immunities of the Organisation
(I) The Organisation shall enjoy in the territory of each
of its Members such privileges and immnunities as are ncces-
sary for the fulfilment of its purposes.
(2) Representatives of the Members of the Organization
and its officials shall similarly enjoy such privileges and
immunities as are necessary for tha independent exercise
of their functions in connection with the Organization.
(3) The Conference may make recommendations with
a view to determining the details of the application of
paragraphs (e) and (2) and may propose conventions ta
the Members for this purpose.
- ' ARTICLE 85
Amendments to the Charter'
(r) Amenments to this 'Charter shall become effective
upon receiving the approval of the Conference by the
athrmative votes of two-thirds of its members.
(2) Notwithstarding the provisions of paragraph (x)
those amendments, which involve new obligations on the
part of the Members of the Organization, shall take effect
upon acceptance on the part of two-thirds of the Members
for each Member accepting the amendments and there-
after for each remaining Member on acceptance by it. ln
such cases the Conference may determine that any
Member, which was not accepted the amendment, within a period specified by the Conference, shall thereupon be
obliged to withdraw from the Organization. In the absence
of a determination that a Member shall be obliged to with
draw, a Member shah, notwithstanding the provisions a
paragraph (z) of Article 89, have the right to withdraw,
on due notice, as provided in paragraph (2) of tUii
Article.
(3) The Conference shall, by the affirmative votes ci
two-thirds of its Members, adopt raies of procedure foi
carrying out the provisions of this Article.
ARTICLE 86
Interpretation and Settlement of Disputes
(i) The Chinese, Englisa, French and Spanish texts of
this Charter shall be regarded as equally authoritative.
(2) Any question or difference concerning thU inter-
pretation of this Charter or arising out of its operation
shall bh referred to the Executive Board for a ruling
thereon. "The Executive Board may decide either to give
a ruling on the matter itself or to refer it, with the con-
sent of the parties, to arbitration upon such terms as
may be agreedbythe parties. Any ruling of the Executive
Board shall, upon the request of any Member directly
affected or, if the ruling is of general application, upon
the request of any Member, be referred to the Conference.
(3) Aay justiciable issue arising out of a ruling of the
Conference with respect to the interpretation of sub-
paragraphs (c), (d), (e), or (h) of Article 37 or of paragraph
(z) of Article S9 may be submitted by any party to tui
dispute to the International Court of Justice, and any
justiciable issue arising. out of any other ruling of the
Conference may, in accordance with such procedures at the
Conference shallestablish, be submitted by any party to
the dispute to the International Court of Justice. The
Members accept the jurisdiction of the Court in respect of
any dispute submitted to' the Court under this Article.
(4) The Organization may, in accordance with para-
graph 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 its
activities.
ARTICLE 87
Payment of Contributions
Each Member undertakes to contribute promptly to the
Organization its share of the Oganization's expenses as
apportioned by the Conference. A Member of the
Organization, which is in arrears in the payment of its
*financial contributions to the Organization, shall nave no
vote in the Conference, if the amount of its arrears equals
or exceeds the amournt of the contributions due from it
for the preceding two full years. The Conference may,
nevertheless, permit such a Member to vote, if it is satisfied
that the failure to pay is due to conditions beyond the
control of the Member.
..ARTCLE 88
Entry into Force
(M) The original of this Charter, as set forth in the Final
Act of the United Nations Conference on Trade and
Employment.' shall be deposited with the Secretary-
General of thc United Nations, who will furnish certified
copies thereof to all interested governments.
41
(2) Each government accepting this Charter shall deposit
oan instrument of acceptance with the Secretary-General
of the Unitcd Nations, who will inform all governments
represented at the United Nations Conference on Trade
and Employment and ail other Members of the United
Nations which were not represented at that Conference,
of the date of deposit of each instrument of acceptance
and of the date on which this Charter enters into force
under paragraph (3).
(3) This Charter shallenter into force of the sixtieth
day following the day on which the number of govern-
ments represented at the United Nations Conference on
Trade and Employment, which have deposited acceptance
pursuant to paragaph (2), shall reach twenty, and the
acceptance of each other accepting government shall take
effect on the siutieth day following the day on which the
instrument of such acceptance is deposited Provided that,
if this Charter shall not have entered into force by
3i December 194 , any of the governments which have
made effective the General agreement on Tariffs and
Trade dated ....... ..... .. , together
with any other governments represented at the United
Nations Conference on Trade and Employment, may agree
to bring this Charter into force among themselves in
accordance with managements which they may agreo upon.
Any instrument of acceptance deposited witb the
Secretary-General of thc United Nations shall be taken as
covering both procedures for bringing this Charter into
force, unless it expressly provides to the contrary or is
withdrawn.
(4) Each government accepting this Charter does so in
respect of its metropolitan territory and the oversea
territories for which it has international responsibility with
the exception of those territories which are self-governing
in respect of matters provided for by thc Charter. Each
Member shall notify the Secretary-General of the United
Nations of its acceptance of the Charter on behalf of any
such self-governing territory willing to undertake - the
obligations of the Charter, and upon such notification the
provisions of the Charter shall become applicable to that
territory.
ARTICLE 89
Withdrawal and Termination
(I) AJy Member of the Organization inay withdraw
from the Organization, either on its own behalf or on behalf
of an oversea territory, which Is self-governing in the
respect mentioned in paragraph (4) of Article 88, at any
time after the expiration of threo years from the date of
the entry into force of this Charter under the provisions
of Article 88, by written notification addressetl to the
Secretary-Gentral of the United Nations in accordance
with the provisions of paragraph (2). The' Secretary-
General will immediately inform all other Members of the
Organization.
(z) The withdrawal shall take effect six months from
the date of the receipt of the notification by the Sccretary-
General Provided that the notification may be withdrawn
at any tirne during that period.
(3) This Charter may bo terminated at any tiine by
agreement of three-fourths of the Members of the'
Organisation.
- ' WANNEXURE A
* Lists of Territorles referred to in sub-paragraph (2) (a) (ii) of Article 14.
s. Countries qf t'he Bitiss Commonwealth of Nations.
The United Kingdom of Great Britain and Northern
Ireland and its dependent territories,
Canada;
The Commonwealth of Australa and its dependent
territories,
New Zealand and its dependent territories,
The Union of South- Africa and South West Airica,
Ireland,
Newfoundland,
Southern Ehodesia,
Burma, -'
Ceylon. 42
ANNEXURE 1
ECONOMIC AND SOCIAL COUNCIL
Resolution Regarding the Calling of an International Conference on Trade and Employment.
The Economic and Social Council, considering it
essential that the co-operative economic measures already
taken bo supplemented by further international measures
dealing directly with trade barriers and discrimination
which stand in the way of an expansion of multilateral
trade and by an undertaking on the part of nations to
reek full employment
z. DECIDES to call an Interrational Conference on
Trade and Emplnyment, in the latter part of x946, for
the purpose of promoting the expansion of production,
exchange and consumption of goods;
2. CONSTITUTES a Preparatory Committee to elaborate
an annotated draft agenda, including a draft convention,
for consideration by the Conference, taking into account
suggestions which may be submitted to it by the
Economic ana Social Council or by any Member of the
United Nations;
3. SUGGESTS, as a basis of discussion for the Prepara-
tory Committee, that the agenda include the following
topics:
(a) International agreement relating to the achieve-
ment and maintenance of high and stable levels of
,employment and economic activity.
- (b) International agreement relating to regulations,
restrictions, and discriminations affecting international
trade.
(c) International agreement relating to restrictive
business practices.
(d) International agreement relating. to inter-
governmental commodity arrangements.
(e) Establishment of an international trade organiza-
tion, as a specialized agency of the United Nations,
having responsibilities ia the fields of (b), (c) and (d)
above;
4. REQUESTS the Preparatory Committee, when na-
sidering the foregcing items, to take into account the
special conditions which prevail in countries whose manu-
facturing industry is still lu its initial stages of develop-
ment, and the questions that arise in connection with
commodities which are subject to special problems of
adjustment in international markets;
S. REQUESTS the Preparatory Committee to report to
a subsequent session of the Council recommendations re-
garding the date and place of the Conference and the
agenda including a draft convention) and also what
States, if any, not Members of the United Nations, should
be invited to the Conference on Trade and Employment;
6. APPOINTS as Members of thc Preparatory Commit-
tee the representatives of the Governments of the following
countries: Australia, Belgium, Luxembourg, Brazil,
Canada, Chile, China, Cuba, Czechoslovakia, France,
lndia, Lebanon, Netherlands, New Zealand, Norway,
South Africa, USSR, the United States of America and
the United Kingdom.
ANNEXURE 2
List of Delegates to the Preparatory Commltee and of Representatives of Members of the Unlted
Nations not members of the Preparatory Committee, of Inter-goveramental and
Non-governmental Organizatlons.
AUSTRALIA
Dr. H. C. Coombs (Head of Del gation), Director-
General, Dept. of Post-War Reco;struction.
Mr. E. McCarthy, Secretary, Department of Commerce
and Agriculture.
Mr. C. E. Morton, Assistant Comptroher-General
' (Tariffs), Departnent of Trade and Customs.
Mr. J. Fletcher, Chief, Trade Relations and Trade
Treaties Branch, Departainent of Trade and Customs.
BELGIU M -LUXEEMBU RG
Belgium
Mr. Van de Kerckhove d'Hallebast, Minister Plenipotea-
tiary (Head of Delegation).
Mr. A. Le Boii. Director-General of Customs.
Vicomte du Parc, Principal Inspector, Minktry of
Economics.
Mr. G. Mostin, Director, Ministry of Agriculture.
Mr. C. Roger, Belgian Economia Mission in London.
Luxembourg
Mr. P. Bastian, Delegate accredited to Uie Belgo-
Luxembourg institute.
Mr. C. Calmès, Attaché, Ministry of Foreign Afairs.
H. E. Senhor Maxio Moreira da Silva, Head of Delega-
tion, Envoy Extraordinary and Minister Pleaipoten-
tiary of Brazil in Berne.
CANADA
Mr. H. B. McKinnon, Head of Delegatien, Chainran of
Tariff Board.
Mr. D. Sim, Deputy Minister of Customs and Excise.
Mr. L. E. Couillprd, Department o! Trade and Commerce.
Mr. J. J. Deutsch, Director cf Economic Relations, Dew
partmnent of Finance,
Mr. H. R. Kemp, Director, Commercial Relations and
Foreign Tariffs Division, Department of Trade and
Commerce.
Mr. F. A McGregor, Commissioner of Combines, Depart-
ment of Justice.
Mr. S. D. Pierce, Head of Economic Division of Depart-
ment of External Affairs.
CHILS
H. E. Senor don Manuel Bianchi, Head of Delegation,
Chilean Ambassador in London.
Senor don Higinio Goazales, Commercial Counseèlor,
Chilean Embassy.
Senor don Humberto Videla,, Consul-General of Chie.
Senor don Manuel Merino, Director of tih Agricultural
Senor don Manuel Fredes, Secretary-Genczal cf the
Chilear Development Corporation.
Senor don Raul Fernandez.
Senor don Harold Biggs. 43
CHINA
H. E. Dr. Wunsz King, Ambassador to Belgium.
Mr. T. T. Chang, Director, Department of Foreign
Trade, Ministry of Economic Amairs.
Mr. How Ben, Member, Economic Planning Committeo,
Ministry of Economnic Affairs.
Mr. C. L. Tung, Counsellor, Ministry of Finance.
Mr. K. S. Ma, Member, Tariff Commission, Ministry
cf Finance.
CUBA
H. E. Senor Alberto Inocente Alvarez, Minister of State
for Foreign Affairs.
H. E. Sanor G. de Blanck, Cuban Minister in London.
Senor Rufo Lopéz Fresquet, Representative of the
Treasury in the National Economic Board, Technical
Adviser to the Ministry of Finance.
Senor Jose Antonio Guerra, Representative of the
Treasury in the National Economic Board and
Statistical Adviser to the Finance Ministry.
CZECOSLOVAKIA
H. E. Zdenek Augenthaler, Envoy Extraordinary and
Minister Plenipotentiary Czechoslovak Ministry of
Foreign Affairs, Chief of Economic Department.
Mr. Max Bitterman, Czechoslovak Ministry of Foreign
Trade, Chief of Planning Department.
Mr. Lucian Benda, Secretpry of Legation, Czechoslovak
Ministry of Foreign Affairs, Economie Department.
(Acting also as Secretary te the Delegation.)
Mr. Otto Benes, Counsellor, Czechoslovak: Ministry of
Finance, Tariff Departrnent.
Mr. Augustin Sobol, Counsellor, Czechoslovalk Ministr1.
of Industry, foreign Trade Department.
Mr. Zdenko Blazej, Czechoslovak National Bank, Chie!
of Research Departmnent.
Mr. Jaroslav Kopec, Counsellor, Czechoslovak Ministry
of Agriculture, Foreign Trade Departaent.
MUr. Karel Ba1a, Managing Director, Czechoslovak
Supply Company in London.
Mr. Otakar Vojta, First Secretary to the Czechoslovak
Embassy in London.
Mr. Bohumil Bayer, Counsellor, Czechoslovak Ministry
of Foreign Trade Planning Dept.
Mr. Eugen Gaser, Counsellor, Slovak National Council.
Mr. Peter Zatko, Counsellor, Slovak National Council,
Mr. Mikulas Viest, Czechoslovak Supply Company,
Agricultural Adviser.
FR.ANCE
M. Hervé Alphand, Head of Delegation, Director-
General, Ministry for Foreign Affairs.
M. Roger Nathan, Direetor of Foreign Economie Rela-
tions, Ministry of National Economy.
M. Pierre Baraduc, Chief of Service, Ministry for
Foreign Af airs.
M. Robert Marjolin, Assistant Commissioner for
Economic Planning.
M. Roger Joffet, Director of Eceonomie Affairs, Ministry
cf Agriculture.
M. Peter, Director of Economie Affairs, Ministry of
Agriculture.
M. Jean Richard. Deputy Director, Ministry of National
Economy.
M. Jean de S ailly, Commercial Adviser, French
Embassy, London.
M. Pierre Calvet, Financial Attache, French Embassy,
London.
M. Olivier Woramser, First Secretary, Fsench Embassy,
London.
M. Pioure Escoube, Technical Adviser. Ministry of
National Economy.
M. Ernest Lecuyer, Ministry of Foreign Affairs.
M. Charles Igonet, Chie. of Service, Ministry for Indus-
trial Production.
M.Theodule Bossuat. Director-General of Customs.
M. Louis Roux, Administrator of Customs.
M. Pierre Dieteren. Ministry of National Economy.
M. Emile Royer, Ministry cf National Economy.
M. Alexandre Kojeve, Ministry of National Economy.
M. Gaston Donne,. Ministry of National Economy.
M. P. Demondion. Ministry of Labour.
- rs'n
Mr. (R. K. Nehru, I.C.S.. Joint Secretary to Government
of India.
Mx. B. N. Adarkar, M.B.E., Deputy Economic Adviser
to Government of India.
Mr. P. S. Lokanthan, Editor cf Eastern Economist.
Mr. B. N. Ganguli, Professor of Economics, DeUli
University .
Dr. A. I. Qureshi, Economic Adviser to the Government
of Hyderabad.
Mr. H. S. Malik, C.I.E., I.C.S., Prime Minister of
Patiala State.
Mr. D. G. Mulherkar, Sccretary ci the Federation of
Indian Chambers of Commerce and Industry.
L.EBANON
Mr. George Hakim, Alternate Delogate te Economic and
Social Council.
Mr. Nadim Dimechkie, Commrercial Counsellor to
Lebanese Legation, London.
NETHERLANDS
Dr. A. B. Speekenbrink, Head of Delegation, Ministry
of Economic Affairs, The Hague.
Dr. L. J. Gotzen, Ministry of Overseas Territories, The
Hague.
Mr. W. H. van den Berge, Ministry of Finance.
Mr. A. Van Kleffens, Ministry of Economie Affairs.
Mr. Phoa Liong Gie, Ministry of Overseas Territories.
Mr. C. N. Pool, Ministry of Agriculture, Fisheries and
Food.
Professor Dr. J. Tinbergen, University ci Rotterdam,
Director of Central Planning Board.
Baron S. J. van Tuy van Serooskerken, Ministry of
Foreign Affairs.
Professor Dr. E. de Vries, Ministry ci Overseas Terri-
tories.
Mr. J. de Waarx, Ministry of Overseas Territories.
Baron C. A. B'"tinck, Administrator, Ministry of
Overseas Territories.
Mr. W. G. F. Jongejan, Chairman of the Council for
Commercial'Enterprise, Netherlands East Indies.
Mr. E. D. M . Koning, Director for Commercial and
Industrial Policy of the Ministry of Economic Affairs.
Dr. S. Korteweg, Administrator, Directorate-General
for Foreign Economic Relations.
Dr, C. C. L. J. M. Eygenraam, Agriculâtral Counsellor,
Aetherlands Embassy, London.
Mr. D. M. de Smit, Commercial Counsellor, Netherlands
Embassy, London.
Dr. A. Treep, Financial Counsellot, Netherlands
Embassy, London.
Mr. P. H. Westermann, Trade Commissioner for the
Netherlands East Indies, c/o Netherlands Embassy,
London.
NEW ZEALAND
Mr. J. P. D. Johnsen. Assistant Comptroller of Customs.
Mr. G. W. Clinkard, Secretary of Industry and
Commerce.
Mr. H. E. Davis, New Ze3land Marketing Department.
Mr. F. W. Lawrence. O2icial Representative in London
of the N.Z. Customs Department.
Mr. G. Laurence (Secretary to Delegation), Departrent
of Industry and Commerce.
NORWÂY
H. E, M. Erik Colban, Head of Delegation, Norwegian
Ambassador in London.
Mr. J. Melander, Commercial Counsellor to the Royal
Norwegian Emnbassy in London:
Mr. Johannes Brunaes, President of the Federation of
Norwegian Industries.
Mr. Ering Steen, Former President of the Norwegian
federation for Trado and Comerce.
Mr. Bjarne Boerde, Director of the Norwegian Export
Council.
Mr. Johannes Dannevig, Directer of Customs and Excise.
Mr. Bjarne iRobberstad, Chief f Division in the
Norwegian Ministry cf Supply.
Mr. Thor Skrindo. Chief cf Division in the Directorate
of Employment.
Mr. Harald Elstad, Chief of Division in the Directorate
of Price Control.
bir. Arne Jebsen.
UNION OF SOUTH AFRICA
Mr. A. T. Brennan, Head of Delegation, Head of Union
Supply Mission in Washington.
Mr. A. P. van der Po*t, alternate Head of Delegation,
Trade Commissioner in the United Kingdom.
MIr. G. J. F. Steyn, Departmnent of Commerce and
Industries.
Dr. A. J. Beyleveld, Department of Agriculture.
Mr. J. G. Cherry, Department of Customs and Excise.
Mr. W. C. Naudé, Economic Adviser to the High Com-
missioner in the United Kingdom. UNITED STATES
Mr. Clair Wilcox, Head of Delegation, Director, Office
International Trade Policy, Dcpartment of State.
Mir. Harry C. Hawkins, Alternate lead of Delegation,
Counsellor for Econornic Affairs, American Embassy,
London.
Mr. Ly~nç R. Edminister, Vice-Chairman U.S. Tariff
Comm.zcon.
Mr. Frank M. Shields, Chief, Commercial Policy Staff
Office International Trade, Department of Commerce.
Mr. Robert B. Schwenger, Chief, Division International
Econornic Studies, Office Forcign Agricultural
Relations, Department of Agriculture.
Mr. John Pierson, Consultant, Division Post-War
Employment Problems, Department of Labour.
Mr. John W. Gunter, U.S. Treasury Representative,
American Embassy, London.
Mr. William R. Johnson, Commissioner cf Customs
Dept. of Treasury.
UNITED CIGDOM
Mr. H. A. Marquand, M.P.
Mr. J. R. C. Helmaore, C.M.G.
Mr. E. L. Hall-Patch, C.M.G.
Mr. J. E. Meade.
Sir Gerard Clauson, K.C.M.G., O.B.E.
REPRESENTATIVES OF COUNTRIES MEMBERS OF riE
UNITED NATIONS
Colombia
Dr. José Enrique Gaviria, Commercial Counsellor,
Colombian Embassy.
Senor Don José Medina.
Denmark
Mr. Anton Vestbirk, Danish Consul General in London.
Mr. Hoelgard, Vice Consul and Commercial Secretary in
London.
Poland
Dr. Lychowski, Chief Polish Observer.
Dr. Alexandrovitch, Financial Counsellor, Polish
Embassy.
.r. Tusrkiewicz, Commercial Attaché, Polish Embassy.
44
Peru
Senor Don Alberto Pérez Saez, Consul General for Peru.
41 exico
Dr. F. Cuevas Cancino, Attaché, Mexican Embassy.
Syria
M. Said Raid.
REPRESENTATIVES OF INTER-GOVERNEMENTAL ORGANIZATIONS
Food and.Agriculture Organization
Dr. S. L. Louwes, Special Adviser to the Director.
General, F.A.O.
International Bank
Mr. Ansel Luxford, Assistant General Counsel.
Mr. Walter Hill, Assistant Director of Research.
International Labour Office
Mr. D. C. Tait.
International Monctary Fund
Mr. George Luthringer, Alternate Execv'tive Director for
the United States.
Mr. Walter Gardner, Chief of Balance of Paymenth
Division.
Mr. Ernest Sturc, Chief of the Central and Easteru
Europeian Division.
Professor A. C. B. Fisher.
REPRESENTATIVES OF NON-GOVERNMENTAL ORGANIZATIONS
International Chamber of Commerce a
Mt. Wallace B. Phillips, President, American Chamber
of Commerce, London.
International Co-operative Alliance
Lord Rusholme, President, International Co-operative
Alliance.
World Federation of Trade Unions
M. Jean Duret, Director Economic Bureau C.G.T.
American Federation of Labour
bIr. Thomas J. Kennedy.
ANNEXURE 3
Agenda of the Preparatory Committee
r. Opening of the Session by the 1.emporary President.
2. Remarks by the representative of the host Governrnent.
Adoption of Uic provisional rules of procedure.
Election of the Chairman.
Election of the First Vice-Chairman.
Election of the Second Vice-Chairman.
7. Adoption of the Provisional Agenda.
e.
9-
General discussion of the scope of the work of the
Preparatory Committee.
Establishment of Committees.
so.-(a) International agreement relating to tic achieve-
ment and maint-eancc of high and steadily rising
levels of effective demnand, employment and
economic activity.
(b) International agreement relating to industrial develop-
ment
(c) International agreement relating to regulations, re-
strictions and discriminatfons affecting international
trade.
(d) International agreement relating to restrictive business
practices.
(e) International agreement relating to inter-governmental
commodity arrangements.
(J) Establishment of an international trade organization,
as a specialized agency of the United Nations, having
appropriate responsibilities in the above fields.
(Article 3 of the Council Resolution;)
zI. Elaboration of annotated draft agenda, including a
draft Convention, for consideration by tho Inter-
national Conference on Trade and Enaployment.
(Article 2 of'the Council Resolution.)
z2. Date and place of the International Conference on
Trade and Employment. (Article 5 of the Cou:ncil
Resolution.)
I3. Determination of what States. if any, not Mermbers of
the United Nations, should be invited to the Con-
ference on Trade and Employment. (Article 5 of
the Council Resolution.)
x4. Final consideration and adoption of reports of
Committees.
zs. Adoption of the report of the Preparatory Committee
for submission to the Economic and Social Council
on agenda items 10, 1I, I2 and 13 in accordance
with the Economic and Social Council's Résolution
of I8 February 1946, setting up the Preparatory
Committee.
I6. Other iteem.
3.
4.
5-
6. 45
ANNEXURE 4
Rules on Procedure
CHAPTER .-AGENDA
Rule s
The provisional agenda for each meeting shall be drawn
up by the Executive Secretary in consultation with the
Chairman and shah be -rommunîcated to the representatives
as soon as possible aster its preparation.
Rule a
The first item upon the provisional agenda of any
meeting shallbe the adoption of the agenda.
Rule 3
The Preparatory Committee may decido to review, add
to or delete front the agenda.
CHAPTER II-REPRESENTATION AND CREDENTIALS
Ruls 4
Each member of thePreparatory Committee shall be
represented by an accredited representative.
Rule 5
Each representative may be accompanied by such
alternate representatives and advisers as he may require.
Rule 6 t
The credentails of representatives and the names of
alternate representatives and advisers shallbe submitted
to the Executive Secretary within one week of the opening
meeting of the Preparatory Committee. The Chairman
and the Vice-Chairman shall examine the credentials of
representatives without delay and submit a report thereon
to the Preparatory Committee for apprc'. al.
CHAPTER III CHAIRMAN AND VIC -CHAIRMAN
Rule 7
Tho Preparatory Committee shallelect from its repre-
sentatives a Chairman, a First Vice-Chairman and a
Second Vice-Chairman, who shallall hold office for the
duration of the present session of the Preparatory
Committee.
Rule 8
If the Chairman is absent from a meeting, or any part
thereof, the First Vice-Chairman, or in the latter's absence,
the Second Vice-Chairman, shaU preside.
Rule g
If the Chairman ceases to represent a member of the
Preparatory Committee, or is so incapacitated that he can
no longer hold office, the First Vice-Chairman shaU become
Chairman. If the First Vice-Chairman ceases to represent
z member of the Preparatory Committee, or is so in-
capacitated that he can no longer hold office, the Second
Vice-Chairman shall take his place.
RuIe 10
A Vice-Chairman acting as Chairman shall have the same
powers and duties as the Chairman.
Rule IX
The Chairman or a Vice-Chairman acting as Chairman
shall participate in the meetings of the ?reparatory Com-
mittee as such and not as tie representative of the member
by whom he was accredited The Preparatory Committeo
shaU permit an alternate representative to represent that
member in thc meetings of the Preparatory Committee and
to exercise its right to vote.
CHAPTERIV.-SECRTARIAT
Rule 12
The Executive Secretary shallact in that capacity at all
meetings of the Preparatory Committee and its committees.
He may appoint another member of the staff to take his
place at any meeting of the Preparatory Committee or of
its committees.
Rule 13
The Executive Secretary shah provide and direct such
staff as is required by the Preparatory Committee or by
any of its committees or sub-commnittees,
Rule 14
The Executive Secretary, or his deputy acting on his
behalf, may at any time upon the invitation of the Chair-
man of the Preparatory Committee or of the chairman of
a committee or sub-committee. make either oral or written
statement coeng any question under consideration.
Rule 15
The Executive Secretary shail bo responsible for making
alh necessary arrangements for meetings of the Preparatory
Committee and of its committees and sub-committees.
CRAPTER V.-CONDUCT OF BUSINESS
Rule 16
A majority of the members of the Prtparatory Com-
mittee shall constitute a quo.um.
Rule 17
In addition to exercising the powers conferred upon him
elsewhere by these rules, the Chainman shall declare the
opening and closing of each meeting of the Preparatory
Committee, shall direct the discussion, ensure the
observance of these Rules, and shall accord the right to
speak, put questions to the vote and announce decisions.
The Chairman may aiso cali a speaker te order if bis
remarks are not relevant to the subject under discussion.
Rule 18
The chairman of a committee or a rapporteur appointed
by a comrmittee to present its report may be accorded
precedence for the purpose of explaining the report.
Rule 19
During the discussion of any matter a representative
may aise a point of order. In this case the chairman shall
immediately state his ruling. If it is challenged, the
chairman shah forthwith submit his ruling to the Pre-
paratory Comrittee for decision and it shall stand unless
overruled.
Rule 20
During the discussion of any rnatter a representative
may move the adjournment of the debate. Any such
motion shall have prior.ty. In addition to the proposer
of the motion, one representative may be allowed to speak
in favour of, and one representative against the motion.
Rule 21
A representative may at any time move the closure of
the debate whether or not any other representative has
signified his wish to speak. Not more than two representa-
tives may be granted permission to speak against the
closure.
RuIe 22
The Chairman shall take the sense of the Preparatory
Committee on a motion for closure. If the Preparatory
Committee is in favour of the closure, the Chairman shah
declare the debate closed.
Rule 23
The Preparatory Committee may limit the time allowed
to each speaker.
Rule 24
Proposed resolutions, amendments and substantive
motions shall be introduced in writing and banded to the
Executive Secretary who shall circulate copies to the
representatives. Unless the Preparatory Comittee
decides otherwise, no such proposal shll be discussed or
put te he vote at any meeting of the Prepartory Com-
mittce unless copies of it have been dishe' .ed to the
representatives at least twenty-four houià before lie
meeting concerned.
Rule 25
Proposed principal motions and draft resolutions shall
have precedence in the order of thear submission.
Rule z6
Parts of a proposed motion or of a draft resolution shall
be voted on separately at the request of any representative,
unless the mover of the motion or resolution objects.
Rute 27
When an amendment revises, adds to or deletes from
a proposal, the armendment shall be put to the vote
first, and if it : adopted, the asnended proposal shal.
then be put to the vote. Ruls 28
If two or more amendments are moved to a proposal,
the Preparatory Committee shall vote first on the amend-
ment furthest removed in substance from the original
proposal, then on the amendment next furthest removed
and so on, until all the amendments have been put to
the vote.
Rule 29
It shall not be necessary for any proposed motion or
draft resolution submitted by a representative on the
Preparatory Committee to b. seconded before being put
to a vote.
CHAPTER VI-VOTING
Rule 30
Each member of the Preparatery Committee shall have
one vote.
Rule 3I
Decisions of the Preparatory Committee shall be made
by a majority of the members present and voting.
Rule 32
The Preparatory Committee shall normally vote by
show o' bands except when any representative requests a
roll call which shall then be taken in the English alpha-
betical order of the names of the members.
Rule 33
The vote of each i ,mber pa-tic pating in any roll call
and any abstentions shall be inserted in the record.
Rule 34
When the Preparatory Committee is deciding a
question relating to individuals, a secret ballot shall be
taken.
Rule 35
If, when only one member or person is to be elected,
no candidate obtains in the first ballot the majority re-
quired, a second ballot shall be taken confined to the two
candidates obtaining the largest number of votes. If,
in the second ballot, the votes are equally divided, the
chairman sLall decide between the candidates by drawing
lots.
Rule 36
If the Preparatory Committeo is equally divided when
a vote is taken on a question other than an election,
a second vote shall be taken at the next meeting. If
the Preparatory Cournmittee is then again equally divided,
the proposal shall b. regarded as rejected.
CHAPTERVII -LANGUAGS
Rule37
Chinese, English, French, Russian and Spanish shail
b. the official languages of the Preparatory Committee,
and English and French the working languages.
Ruie 38
Speeches made in dither of the working languages shall
be interpreted into the other working language.
Rule 39
Speeches made in any of the other three official
languages shall be interpreted into both working
languages.
Rule 40
Any representative May make a speech in a language
other than an official language. In this case he hinIself
must provide for interpretation into one of the working
lang-ages. Interpretation into the other working
language by an inte; preter of the Secretariat may be
based on the interpretation given in the first working
language.
Ruie 41
Verbatim records shallbe drawn up in the working
languages. A translation of the wholl or any part of
any verbatim record into any of the other official
languages saali be 'furnished if requested by any repre-
sentative
Rule 42
Summary records shall be drawn up in the working
languages. A translation of the whole or any part of
any summary record into any of the other official
languages shall be furnished if requested by any repre-
sentative.
Rule 43
The Journal of the Preparatory Commlttee shall bc
issued in the working languages.
Rule 44
All resolutions, recomnmendations and other formal
decisions of the Preparatory Committee shall be made
available in the official languages. Upon ihe request of
any representative, any other document of the Prepara-
tory Commit-tee shall bo made available in any or ail
of the official larnguages.
CHAPTER VIII-REPRESENTATION OF MEMBERS OF THE
UNITED NATIONS NOT MEMBERS OF THE PREPARATORY
COMMITTEE AND OF SPECIALIZED INTER-GOVERNMENTAL
AGENCIES AND NON-GOVERNMENTAL ORGANIZATIONS
Rule 45
Representatives of the International Labour Organiza-
tion, the Food and Agricultural Organization, the Inter-
national Monetary Fund and the International Bank for
Reconstruction and Development may attend meetings
of the Preparatory Committee and of its committees- and
participate without vote in their deliberations with
respect to items on their agenda relating to matters
within the scope of their respective activities.
Rule 46
The provisions of the Report of the Committee of the
Economic and Social Council on Arrangements for Com-
sultation with Non-Governmental Organizations,
approved by the Cauncil on 21 June I946, shall pply
to the meetings of the Proparatory Committee as
appropriate. The committees of the Preparatory Com-
mittee may consult with the World Federation of Trp.de
Unions, the international Co-operative Alliance, the
American Federatiorn of Labour and the International
Chamber of Commerce either directly or through com-
nittees established for the purpose. Such consultations
rnay be arranged on the invitation of the working com-
mitteeor on the request of the organization.
Rule 47
The representatives of governments, who arc not
members of the Preparatory Committee but who are
Members of the limited Nations, can take part as
observers at all meetings of the Preparatory Committee
and of its committees and sub-committees.
CHAPTER IX-RECORDS
Rule 48
Summary records of the meetings of the Preparatory
Committee and its committees shall bc kept by the
Secretariat. They shall be sent as soon as possible to all
representatives who shall inform the Secretariat not
later than twenty-four hours after the circulation of the.
summary records of any changes they wish to have
made.
Rule 49
Verbatim records of the meetings of the Preparatory
Committee and its ccnmnittees shall be kept by the
Secretariat. One copy of the record of each meeting shall
bo sent as soon as possible to ail representatives.
Rule 50
The verbatim records of public meetings shah b. avail-
able to the public. The verbatim records of private
meetings shall be avaiable to Members of the United
Nations and to specialized inter-governmental agencies.
CHAPTER X-PUBLICITY OF MEETINGS
Rule 51
The meetings of the Preparatory Committeo shall be
held in public unless the Preparatory Committee decides
that a meeting shall be held in private.
Rule 52
The meetings of the committees of the Preparatory
Committee shall ordinarily b. held in private. Each
committee may decide that a particular meeting -r meet-
ings shall be held in public. 47
Rule 53 Rule 58
The meetings of sub-committees shall bo held in The provisions of rules 17 and 40 inclusive shall be
private. applied in the proceedings of committees and sub-
Rule 54
After a private meeting has been held, the Executive-
Secretary, with the approval of the body concerned,
may issue a communiqué to the Press.
CAPTER XI-.COMMMITEES AND SUB-COMMMITEES
Rule 55
The Preparatory Committee may set up such com-
mittees and sub-committees as it deems necessary for
the performance of its functions.
Rule 56
Each committee and sub-committee shall elert its own
ofEicers.
Rule 57
A chairman of a committee or a vice-chairman acting
as chairman shall participate in the meetings of the com-
mittee as such and not as the representative of a member.
The committee shall permit another representative to
represent that member in the meetings of the committee
and to exercise the member's right of vote.
Rule 59
A majority of the members of a committee or sub-
committee shah constitute a quorum.
Rule 6o
A committee or sub-committee may appoint a
rapporteur to present its report or for any other purpose
it deems fit and necessary.
Rule 6I
Committees and sub-committees may, by agreement
decide to adopt rules of procedure regarding in.erpreta-
tions or translations of a moe simple character than
those laid down in these Rules.
Rule 62
Sub-committees shall decide, in consultation with the
Secretariat, upon the former of their records and the pro-
cedure to be followed with them.
ANNEXURE 5
Resolution concerning the Second Session of the Preparatory Committee
Wheroas the Economic and Social Council on i8'Febru-
ary 1946, decided to cahl an International Conference on
Trade and Employment and constituted a Preparatory
Committee to draw up an annotated draft agenda including
a draft convention for consideration by the Conference
And whereas it has not been found practicable to com-
plete the work of the Preparatory Committee at its First
Session
The Preparatory' Committee of the International Cozq-
ference on Trade and Employment
Hereby resolves to convene a Second Session at Geneva
on 8 April 1947, which shall consider, inter alia, Item,
11, 12, 13 and 15 of the Agenda of the Preparatory Com-
mittee
And instruts the Executive Secretary to communicate
with the member Governments to make the necessary
arrangements foo. such Second Session to commence on
8 April 1947.
ANNEXURE 6
Resolution regarding the appointment of a Drafting Committee
Whereas the Preoaratory Comnmittee has decided to con-
vene a Second Session at Geneva on 8 April 1947.
And whereas it is desirable that further drafting be done
on the basis of the work carried out at the First Session
before the Commencement of the Seccnd Session
The Preparatory Committee of the international Con-
ference on Trade and Employment
Hereby appoints a Drafting Committeo consisting of
representatives of members of the Preparatory Committee
to meet in New .York beginning 20 January 1947, for the
purpose of preparing a Draft Charter based upon the
report and other documents of the First Session of the
Preparatory Committee,
It is resolved that
s. It will be the function of the Drafting Committee to
prepare a Drait Charter or Articles of Agreement, editing
for clarity and consistency the portions of the text on
which the Preparatory Committee has come to a substan-
tial identity of views, preparing alternative drafts of those
portions on which there reman a division of general
views and preparing suggested drafts covering such
uLncompleted portions as are referred te it by the Pre-
paratory Committee, together with sncb explanatory notes
and commentaries as theo Drafting Commnittee may consider
desirablA and useful..
2. The Drafting Comrittee should prepare a report for
consideration by the Preparatory Committee at Its Seonc.
Session.
3. The Drafting Comittee should complete its work
with all possible despatch and in any case not hater than
28 February 1947, in order that its report may be for-
warded to governments for consideration in advance of the
Second Session of the Preparatory Commnittee.
It is suggested that members appoint to the Drafting
Committee not more than two or three technical experts
drawn as far as possible from the.delegation which have
participated in the work of the First Session of the Pre-
paratory Committee.
ANNEXURE 7
Resolution Regajding the Negotlation of a Multilateral Trade Agreement
Embodying Tarif Concessions
Whereas the Resolution of the Economic and Social
Council on I8 February I945, decided to call an Inter-
national Conference on Trade and Employment for the
purpose of promoting the expansion of production,
exchange and consumption of goods, constituted this Com-
mittee to elaborate an annotated draft agenda, including
a drait convention, for consideration by the Conference,
and suggested that the Agenda of this Committee include
among its topics " International Agreement relating to
regulations, restrictions and discrimination affecting inter-
national trade ", and "Establishment of an Internatioial
Trade Organization " and
Whereas the United States Govemrnent had invited the
governments appointed by the Economic and Social Council
as members of this Committee to meet to negotiate con-
crete arrangements for the relaxation ôf tarifs'and trade
barriers of all kinds and the invitation lias been accepted
by the governments attending 'he present session of the.
Preparatory Committee and 48
Whereas the task of the Conference will be facilitated
if concrete action is taken by the principal trading nations
to enter into reciprocal and mutually advantageous nego-
tiations directed to the substantial reduction of tariffs and
to the elimination of preferences
The Preparatory Committee of the International Con-
ference on Trade and Employment
Hereby recommends to the governments concerned that
the meeting of members of the Preparatory Committee
envisaged by the invitations sent out by the United States
Government should be held under the sponsorship of the
Preparatory Committee in connection with, and as a part
of, the Second Session of the Committee, conducted in
accordance with the procedures recommended in the
Memorandum on Procedures approved by the Preparatory
Committee at its current Session
And invites the member governments to communicate
to the Executive Secretary their views on this recom-
mendation.
ANNEXURE 8
Resolution Regardlng Indust:lal Development
Whereas it is anticipated that -the Economic and Social
Council will shortly consider the question of dividing
responsibilities not yet allocated in the field of economic
development among the various agencies concerned and
of co-ordinating these activities.
And whereas the Preparatory Committee at its First
Session bas discussed the positive functions in relation to
industrial development which might be exercised by the
International Trade Organization, particularly the furnish-
ing of advice to members concerning their plans and,
within its competence and resources, the provision of tech-
nical aid in the formulation and execution of such plans.
And whereas so that the Preparatory Committee rnay
further carry out its terms of reference as regards indus-
trial development, it is desirable for it to have the guidance
of the Economic and Social Council upon the views which
were exchanged at the First Session.
The Preparatory Committee of the International Con-
ference on Trade and Employaient
Hereby requests the. Executive Secretary to draw the
attention of the Economic and Social Council to those
portions of the Report of the Preparatory Committee
which are concerned with the possible performance by the
International Trade Organization of functions in relation
to industrial development and to ask the Economic and
Social Council to state, before the commencement of the
Second Session of the Committee, whether paragraph (3)
of Article Il of the Charter included provisionally in the
Chapter on Economic Development is in accordance with
the Council's views on the appropriate allocation of func-
tions relating to economic development.
ANNEXURE 9
Resolution Relating to Inter-Governmental Consultation and Action on Commodity Problems Prior
to Establishment of the International Trade Organlzation
Whereas certain difficulties of the kind referred to in
the Chapter on Inter-governmental Commodity Arrange-
ments of the Charter appended to the Report of the Pre-
paratory Committee have already occurred in respect of
certain primay commodities and the Government con-
cerned are already taking action on the general lines
proposed in that Chapter and
Whereas similar di-Sculties may occur in respect of other
primary commodities and
Whereas the Preparatory Committee is agreed that it
is desirable that action taken in respect of such comn-
modities should. proceed on the general lines proposed in
the Chapter abovementioned
The Preparatory Committee of the International Con-
ference on Trade and Employment
Recommends that, insofar as inter-governrnental con-
sultation or action in respect of particular commodities
is necessary before the International Trade Organization
is established, the Governments concerned should adopt
as a guide the Chapter on Inter-governmental Commodity
Arrangements of the Charter appended to the Report of
the Committee and
Requests the Secretary-General of thi United Nations,
pending thd establishment of ths. International Trade
Organization, to appoint au Interimr Co-ordinating Commit-
tee for International Commodity Arrangements, to consist
of the Executive Secretary of the Proparatory Cormitteo
for an International Conference on Trade and Employment
as Chairman, a representative from thd Food and Agricul-
ture Organisation to bo concerned with agricultural
primary commodities, and a person ta bo selected at the
discretion of thd Secretary-General to bo concerned with
non-agricultural primary commodities, this Cogunittee ta
keep informed cf inter-governmnental consultatidaor action
la dntis fied and ta facilitate by apprapriato means sucb
consultation or action.
ANNEXURE 10
MULTILATERAL TRADE-AGREEMENT NEGOTIATIONS
Procedures for Giving Effect to Certain Provisions of the Charter of the Internati onal
Trade Organization by Means of a General Agreement on Tariffs and Trade Among the
Members of the Preparatory Commlttee
- .;Section A.-Intioduction
The Preparatory Committee has resolved to recommend
to the governments conceded that the Committee sponsor
traffic and preference negotiations among its members to be
held in Geneva commencing 8 April, x947.* Upon the comn-
pletion of these negotiations the Preparatory Committee
would be in a position to complete its formulation of the
Charter and approve and recommend. it for the considera-
tion of the International Conference on Trade and Employ-
ment which would be in a position to consider the Charter
i3 the light of the assurance afforded as to the implementa-
tion of the tariff provisions.
* See Anuexuàre
Section B.-Propose4 Negotiations among M embers of
Preparatory Committee
General
Tme results of thd negotiations among the members of the
Preparatory Committec will need ta be fitted intoa the
framework of the International Trade Organization after
die Charter bas been adopted. The negotiations must,
therefore, proceed in accordance with the rele-rant provi-
sions of die Charter as already provisionally formulated
by the Preparatory:Committee. In the Iight of these
provisions, the comments and explanations which follow
may be useful as a guide to the negotiations. General Objectives
An ultimate objective of the Charter, elaborated
Article 24, is to bring about the substantia1 reducti
of tarifs and tha elimination of tariff preferences. The
negotiations among the members of the Preparatory Com-
mittee should, therefore. be directed to this end and eve
effort should be made to achieve as much prcgress towa
that goal as may be practicable in the circumstances, have
regard to tae provisions of the Charter as a whole.
Section C.-General Nature of Negotiations
a. Article 24 of the Charter provides that tar
negotiations shall be on a " reciprocal" and " mutual
advantageous " basis. This means that no country wou
be expected to grant concessions unilaterally, without
action by others, or .o grant concessions to others which
are not adequately counterbalanced by concessions
return.
2. The proposed negotiations are also to be conducted
on a selective, product-by-product basis which will afford
an adequate opportunity for taking into account the
circumstances surrounding each product on which a co.
cession may be considered. Under this selective procedure
a particular product may or may not be made the subje,
of a tarifE concession by a particular country. If it
decided to grant a concession on the product, the conce.
sion may either take the form of a binding of the tari
against increase or a reduction of the tariff. If the tari
on the product is reduced, the reduction may be mad
in greater or lesser amount. Thus, in seeking to obtai
the substantial reduction of tariffs as a general objective
there is ample flexibility under the selective procedure fc
taking into account the needs of individual countries an
individual industries.
3. The same considerations and procedures would apple:
in the case of import tariff preferences, it being under
stood that, in accordance with the principles set forth i
Article 14 of the Charter (Most-Favoured-Nation Treat
ment) any preferences remaining after the negotiations mas
not be increased.
4. The various observations in this report regarding the
negotiation of tariffs and tariff preferences should be read
as applying (mutatis mutandis) to the negotiation o.
state-trading margins under Article 31 of the Charter.
Section D.-Gen-ral Rules to be observed in
Negotiations
Paragraph (I) of Article 24 of the Charter sets forth the
following self-explanatory rules to be observed during the
negotiations:-
" (a) Prior International commitments shall not be
permitted to stand in the way of negotiations with
respect to tariff preferences, it being understood that
action resulting from such negotiations shall not require
ta. modification of existing international . obligations
except by agreement bet been the contracting parties or.
facing thant by termination ai such obligations in accord-
ance with their terms.
(b) Ai negotiated reductions in most-favoured-nation
import tarifs shall operate autonatically to reduce or
eliminate margins of preference.
(c) The binding or consolidation of low tarifs or of
tariff-free treatment shall in principle be recognized as a
concession equivalent in value ta ta. substantial reduc-
tion of high tfs or tae elimination of tariff prefer-
ences."
Section E.-MiscellaniousRules for Guidance
Thero are a number of additional questions which should
be borne in mind in preparing for the proposed tariff nego-
tintions among tae members of the Preparatory Committee.
Base Date for Nogoliat ions
z. Paragraph (i) of Article 14 of the Charter would
except from the most-faveured-nation provisions prefer-
ences " which do not exceed the preference remaining
after . . . negotiations." This means that all margins of
prefbrencc remaining. after negotiations woul- be bound
against increase. Alio, as explained above, Article 14 re-
quires tint reductions, ai most-favoured-nation rates of
duties shah operate autosatically to reduce or eliminate
marginal cf prcferenco.
2. In order to determine what residual preferences shal
be bound against increase under Article 14. and in order to
determine what preferences shal be reduced or eliminated
automatically' under Article 24, it is necessary to establish
a date which will fix the height of the preferences in effect
prior to the negotiations.
49
3. It would be desirable for such purposes to fix a single
in date, common to all the countries participating in thr.
on negotiations. However, the discussions during the First
he Session of the Proparatory Committee indicate that the
n- establishment of ai common date presents certain difficul-
ties and may not be practicable. It is. therefore, suggested
rd that immediately following the close of tie First Session
* each member of the Committee concerned should inforrn
the Secretariat of the United Nations as to the date which
it proposes to use as the base date for negotiations with
respect to preferences. The Secretariat will promptly
inform, the other members. The base date for negotiations
iff established by any country granting preferences should
'Y hold good for its negotiations on ail products with all
id other members of the Preparatory Committee, and should
It not vary from member to member or from product to
ch product.
in
Avoidance of Now Tarif or other Restrictive Measures
ed It is important that members do not effect new tariff
'd measures prior to the negotiations which would tend to
he prejudice the success of the negotiations in achieving pro-
gress toward the objectives set forth in Article 24, and
they should not seek to improve their bargaining position
,t by tariff or other restrictive measures in preparation for
is the negotiations. Changes in the form of tariffs, or changes
in tariffs owing to the depreciation or devaluation of the
currency of the country maintaining the tariffs, which do
if not result in an increase of the protective incidence of tha
tariff, should not be considered as new tariff increases under
this paragraph.
Principal Supplier Rule
. It is generally agreed that the negotiations should
proceed on the basis of the" principal supplier " rule, as
I defined in this paragraph. This means that each country
- would be expected to consider the granting of tariff or
i preference concessions only on products of which the other
- members of the Preparatory Committee, are, or are likely
, to be, principal suppliers.
2. In determining whether, on the basis of the " principal
supplier " rule, a product is to be included in tha negotia-
I tions, reference should be had not merely to whether a
f particular member of the Preparatory Committee is, or,
may become, a principal supplier, but to whether the mem-
bers of the Comuilttee, talien as a whole, supply, or are
likely to supply, a principal part of the product in question.
3. Iu other words, if a principal part of total imports
of a particular product into the territory of a particular
member is supplied by the other members of the Prepara-
tory Committee taken together, then tha importing member
e should, as a general rule, be willing to include that product
h in the negotiations, even though no single other member
of tha Committee, taken by itself, supplies a principal
part of tha total import of the product.
4. In estimating the future prospects of a member, or
the members taken together, to become a principal
supplier of a product, consideration should be given to the
probable disappearance of e-enemy coun trie s as supplier
0 f certain products and af tac the. chLanges in the, current
r of trade created by tii. war.
Form of Tarif Sch.dules
z. It is contemplated that the tarif negotiations among
the members ai the Preparatory Committee will be multi-
lateral, both ir. scope and in legal application. Thus, there
would result from the negotiations a total of sixteea
schedules of tariff -rcessions, each schedule setting forth
a description of t., products and of the maimum (con-
cession) rates ai ('t'y tabreon which would be applicable
in respect of the imports into a particular country. In this
way each meirber of the Committee would be contractu-
ally entitled, in its own right and independently ci tha
most-favoured-nation clause, to each of tha concessions in
each of the schedules of the other members.
2. The multilateral form of the tarif schedules ia designed
to provide more stability than haæ exasted in the past under
bilateral tarifE agreements, to assure certainty of broad
action for tha reduction of tarifs and to give to countries
a right to tarif concessions on particular products wnhich
such countries might wish to obtain, but could not obtain
under bilateral agreements, because of-their relatively lesu
important position as a supplier of the product concerned.
* If thc principles indicated in Article 33 of ta. Drait Charter
should provo acceptable to th. Soviet Union, these nay in
addition. be a schedule relating to an undertaking by the Soviet
Union to purchase annually products valued at not less than an
aggregate amount to b. agreed upon. 50
The multilateral fors also gives expression to the fact that
each country stands to gain when another country grants
tariff reductions on any product, even though primarily
supplied by a third country. This point can be finally
settled when the negotiations have proceeded sufficiently
to enable all the varying factors to be taken into account.
Status of Proferential Raies of Duty
z. Th. formulation by each member of the Preparatorr
Committee of a schedule of tariff concessions, which would
apply to all other members, raises a question as to the
method of relating to such schedules preferential rates of
duty, which have been negotiated, as well as preferential
rates on products for which most-favoured-nation rates
have been negotiated. There appear to be two methods
which might b. followed:
(a) Such preferential rates might be incorporated in
th. multilateral schedules, qualified by the requirement
that they apply only to the products of the countries
receiving prc.,Led treatment.
(b) Such preferential rates might b. incorporated in
separate schedules which would apply only to the pre-
ferred countries.
2. It should b. left to the country concerned to deter-
mine which of the two methods indicated above it desires
to follow. However a single schedule containing both
most-favoured-nation and preferential rates would seen to
faclitate the work of both traders ard governments.
Section F.-Procedures for Conducting Negotiations among
the Members of the Prepcratory Committec
z. It is believe that the tariff negotiations arnong 'the
members of the Preparatory Cornmittee can best bh con-
ductel in four stages:
First Stage. (a) Each member should transmit t0 each
other member, from which it desires to obtain tariff con-
cessions, as soon as possible an d preferably not later than
3I December 1946, a preliciinary list of concessions
which it proposes to request o:. such father member. This
list should set forth for each product concerned
(i) an indication of the existing rate of duty (where
known) and
(ii) an indication of the requested rate of duty.
Thîrty copies of this list shi uld be sent simultaneously
to the Secretariat of the Vanited Nations, which will
transmit onc copy ta each af the other members of the
Preparatory Com;nittee.
(b) In order to facilitate th. negotiations, each mernber
of the Preparatory Committee should transmit ta the
Secretariat of the United Nal ions, as soon as possible and
preferably not later than 3I December 1946, .thirty
copies of its' customs tariff showing the rates of duty
currently applicable. The Secretariat will promptly
transmit ane copy to each of the other members of the
Committee.
Second Stage. At the opting of th. Second Session
of the Preparatory Com'nittte each member should sub-
mit a schedule of the proposed concessions which it
would be prepared to grant ta all other members in the
light of the concessions it would have requested from
each of them.
Third Stage. (a) Notwithstanding the multilateral
,haracter of the negotiatiors., it willusually be fund
What only two or three countries will be directly and
primarily concerned in the'concession on a particular
product, and that the interest: of other countries, although
inaterici, will be secondary.
(b) It is, therefore, propoa4sd that the third stage of th,
negotiations will ordinarily consist of discussions on par-
ticula;r products between two, or possibly three or four
countries. Accordingly for the purpose of engaging in
such negotiations, cadi camtry should to thie extent
practicable bave separate groups ai persons competent to
negotiate withi ccci cf the' ather countries with whiid
important negotiations are .ukly to bh conducted.
(c) The number of negotiating groups required by
each country will, of course, tend te vary with the
scope of its trade relations. In the case of large trading
countries having important trade relations with most
or all of the other members of the Committee, a large
number of negotiating groups will be required.- Ia the
case of countries having less extensive trade relations,
a smaller number of negotiating group will be sufficient.
(d) In any event the timing of negotiations between
particular groups will need to be scheduled, and in
order that the United Nations Secretariat may have
adequate notice to prepare for such scheduling, It would
be desirable for each member of the Commi- ee ta notify
thc Secretariat, as far in advance as may be practicable,
of the number of negotiating groups. which the member
proposes to send ta the negotiating meeting, and of the
country or countries to which each negotiating group
relates.
Fourth stage. (a) The progress of the negotiations
should be subject ta general review by the Committee
as a whole periodically during the negotiations and also
in the final stage. General review by the Committeo as
a whole will enable cach member ta assess the benefits
which it is likely to receive from th. series of negotia.
tiens in the light of its total contributions, and will
offset the tendency toward limiting concessions which
results from a comparison of benefits exchanged
between two countries alone.
(b) It is clear that the general review by the Cam-
mittee as a whole cannot take the form of a detailed
examination of each concession. Rather the Com-
mittce would review the general level of tariff reduction
achieved as indicated in summary reports. At the same
tims each member should be entitled to receive, on
request, detailed information as to the status of nego-
tiations on particular products between other members
in order that it may be in a position to assert an
interest hn such negotiations.
2. In order that the negotiations may proceed in an
orderly fashion, it is desirable that a Steering Committeo
be established as soon as the various delegations have
assembled at the Second Session.
Section G.-Result of the Negotiations
If the tariff negotiatioans proceed successfully along the
lines set forth above, there should emerge from the nego-
tiations a tariff schedule for each member, each schedule
containing concessions granted to all of the other members
in their own right. These schedules might be identified
as follows:
*Names of Country.
Australia ... ...
Belga - Luxembourg - Netierlands
Customs Union, Belgian Congo
and Netherlands Overseas Terri-
tories ... ... ... ...
Brazil ... ...
Canada ... ...
Chile ... ...
China. ... ...
Cuba.
Czechoslovakia ... ... ...
France and French Union ...
India ...
New Zealand
Norway ... ... ...
Syro-Lebanese Customs Union ...
Union of South Africa
tUnion of Soviet SociaList Republics
United. Kingdom and the overseas
territories for which it has inter-
national responsibility ...
United States
Schedule.
Sciiedule I
Schedule II
Schedule m
Schedule IV
Schedule V
Schedule VI
Schedule VII
Schedule VIII
Schedule IX
Schedule X
Schedule XI,
Schedule XII
Schedule XM
Schedule XIV
Schedule XV
Schedule XVI
Schedule XVII
Section H.-Gevzral Agreement on Tariffs and, Trade
i. Once agreed upon the tariff schedules resulting from.
.the negotiations among the members of the Prepariatory
Committee cannot easily b. held in abeyance pen*ig
action by the International Conference on Trade and
Employment and the adoption of the Charter by national
legislature.
2. It is, therefore, proposed thatthe tariffschedules b.e
incorporated in an agreement among the members of
thc. PIreparatoy Committeu which worold also contain,
*Separate. or possibly sub-divided, schedules may be noces-
sary in the case of certain countries in order to provide adequately
for certain overseas territories.;
t If the principles indicated in Article 33 of the Charter.
should prove acceptable to the Soviet Union. this schedule would
relate, not to tariff concessions, but to anundertaking to purchase
annually products valued at not less than an aggregate amount
to be agreed upon. 51
either by reference or by reproduction, those general
provisions of Chapter V of the Charter considered essen-
tial to safeguard the value of the tariff concessions and
such other provisions as may be appropriate. The Agree-
ment should contain a provision under which the signatory
governments could make any adjustments in the Agree-
ment which niay be desirable or necessary in the light of
the action talren by the International Conference on Trade
and Employnient on the Charter. A draft outline of a
General Agreement on Tarifa and Trade appears ln
Section I. The Drafting Committee should consider bis
oulin. and prepare a more complete draft for the con-
sideration of the Preparatory Committee at its Second
Session.
3. The General Agreement on Tariffs and Trade should
be signed and made public at the close of th. tariff nego-
tiations. The Agreement should be legally independent of
th. Charter and should. be brought into force as soon
as possible after its signature and publication. Countries
should be free to withdraw from the agreement at the
end of tree years or thereafter on giving six months' prior
notice. This will provide an opportunity for a review
of the Agreement and any adjustment of the tariff
schedules which may bc considered desirable.
4. Ti. Agreement should conform in every way to the
principles laid down in the Charter and should not contain
any provision which would prevent the operation of any,
provision of th. Charter.
5. The tariff concessions granted under the Agreement
should be provisionally generalized to th. trade of other
countries pending the consideration by the International
Conference on Trade and Employment of the question
whether benefits granted under the Charter should be
extended to countries which do not join the International
Trade Organization and which, therefore, do not accept
th. obligations of Article 24.
Section I.-Creation of a Provisional Agency pending the
Establishment of the International Trade Organiza-
tion
Certain of the provisions of the General Agreement on
Tarifs and Trade, for example, those incorporating
Article 34 of thi Charter (Emergency Action on Imports
of Particular Products) and Article 35 of the Charter
(Nullification or Impairment), will require for their
successful operation the existence of an international body.
It is proposed, therefore, that the members of the Prt-
paratory Comrnittee, which make effective the General
Agreement on Tariffs and Trade, should create a pro-
visional international agency for this purpose. Titis
provisional agency would go out of existence upon the
establishment of the International Trade Organization.
Section J.-Relation of the General Agreement on Tariffs
and Trade to the International Trade Organization
after its Establishment
Interim Tariff Committec
z. The Charter as now formulated provides in Article
67 that the countries which make effective the General
Agreement on Tarifs and Trade shall constitute the
original members of the Interim Tariff Committee to be
set up within the International Trade Organization after
the International Conference on Trade and Employment
bas met and the Organization has been established.
z. The Interim Tariff Committee wlll have the func-
tion of determining whether (with respect to any nego-
tiations subsequent to those culminating in the General
Agreement on Tarifs sud Trade) any member of the
Organization bas failed to live up to its obligations regard-
ing tariff negotiations and, under paragraph (3) of Article
24 of the Charter, of authorizing compElining members
to withhold tariff benefits from offending members. The
following points should be' noted with regard to ths
function:
(a) A member of the Organisation may be admitted
to membership in the Committee when the member bas
completed tarif negotiations " comparable la scope or
effect " to the negotiations already completed by the
original members of the Committee. Thus, what is
achieved by way of tariff action in the General Agree-
ment on Tarifs and Trade will become the standard
-'to which members of the Organization will be expected
to conform in order to obtain membership of the-
Interim TarifE Committee. In applying itis standard
the- Committee should have regard to the provisions of
the Charter as a whole.
(b) Since it is agreed that the original members of
the Interini Tariff Committee will have taken adequate
steps toward fulfilment cf the tariff obligations of tie
Charter in respect of negotiations among themselves (se.
Article III of tho draft General Agreement on Tarif
and Trade), the Committee may not authorize one
original member of the Committee to withhold tariff
concessions from another original member of the Come-
mittee.0 This would bc without prejudice, of course,
to any decisions reached, under the auspices of th.
Organization, regarding a second series of tariff nego-
tiations among the members of the Committee.
(c) Members of the Interim Tariff Committee must,
in negotiations with members of the Organization which
are not members of the Committee, be prepared to
consider concessions on products of apterest to the
latter wbich were not dealt with in tho original
negotiations. Refuse to negotiate on such products
might warrant a legitimate complaint. Accordingly
the Committee could in such cases authorize a member
of the Organization, which is not a member of the
Committee, to withhold, tariff benefits from a member
of the Committee. However, the extent to which a
member of the Organization, which is not a member
of the Committee, might withhold tariff benefits from
a member of the Cominittee would be limited only to
tariff concessions which the former had already made
pursuant to Article 24 and general tariff! penalties
could not bo applied.
(d) The authority of the Committee would ia ael
cases be limited to granting permission to a member
of the Organization to withhold tariff benefits from
another member. In no event could the Committeo
compel a member to withhold benefits.
Procedure for Broadening Membership in the Interim
Tariff Committec through Additiono Tariff
Negotiations.
z. Procedures must be developed for assuring, by
negotiation, action for the reduction of tarifs and the
elimination of preferences by members of the Organiza-
tion, which are not parties to the General Agreement
on Tarifs and Trade and hence would not be original
members of the Interinm Tariff Comnittee. The following
alternative procedures are suggested for consideration:
(a) The original members of the Interim Tariff Com-
mittee would negotiate separate bilateral agreements
with members of the Organization, which are not mom-
bers of the Committee, and the latter would negotiate
such agreements between themselves. Th. Committee
would judge as to when a particular county had com-
pleted enough such agreements. to entitle it to member-
ship in the. Committee.
(b) A member of the Organization, which is not an
original member cf the Committeo, might offer to nego-
tiate with the Conunittee a multilateral schedule of con-
cessions similar ir scope and legal application to the
schedules appende i to the General Agreement on Tariffs
and Trade concluded among the original members of
the Interim Tariff Committee and the original members
of the Committee would agree to amend the multilateral
schedules appended to the General Agreement on Tarifs
and Trade to the extent necessary to assure appropriate
-concessions on products of which the country, not a
member of the Committee, was a principal supplier.
z. Whatever procedure is adopted, due weight should
be given in the negotiating process te concessions already
made as a result of prior negotiations.
Section K-Tentative and Partial Draft Outline of Geieral
Agreement on Taiiffs and Trade
The governments in respect of which this Agreement is
signed:
Having been named by th. 'Economic and Social Council
of the United Nations to prepare, for the consideration of
the Internatinal Conference on Trade and Employmentl
a Charter for an International Trade Organisation cf tho
United Nations;
Having, as the Prepasatory Com-iittee for the
Conference, recommended to the Conference the provisions
of such a Charter, the test of which is set forth in the
Report cf tho. Preparatry Committee; and - .
Being desirious of furtring the, objectives of the Con-
ference by providing an example of concrete achievement
capable cf generalization to all countries on .quitable
terms;
Have,,through their respective Plenipotentiaries, agreed
as follows:
'It should be neted that the Organization, as distinct Iom thio
Committee, could authorize an original m ember of the Committee
to withhold benefits from another original member of the
Committee under certain other provisions of the Charter. 52
ARTICLE 1
z. During the life of the Agreement each signatory
government shall make effective in respect of each other
signatory government the provisions described below of
the Charter for an International Trade Organization of
the United Nations recommended in the report of the
Preparatory Committee.
[There would follow a list of the articles to be included
in the Agreement.]
2. Functions entrusted to the proposed International
Trade Organization under any of the provisions of the
Charter incorporated in this Agreement by virtue of
paragraph of thisArticle shall, pending the establishment
of theOrganization, be carried out by a provisional inter-
national agency consisting ai delegates appointed by the
cignatory governments.
ARTICLSE II
With regard to Articles 24, 32 and 33 of the Charter,
which relate to negotiations for
i. The reduction of tariffs and the elimination of tariff
preferences, and
2. Parallel action by state-trading enterprises,
the signatory governments declare that they have, by
virtue of Article m of this Agreement, taken this step
towards fulfilment of the obligations of these Articles in
respect af themselves and that they stand ready, in con-
farmity witii the spirit of these Articles, to undertake
similar negotiations with such other governments as may
desire ta become members iof the International Trade
Organization.
ARTICLE III
Each signatory government shall accord to th. com-
merce of the customs territories of the other signatory
governments tho treatment provided for in the appropriate
Schedule annexed to thus Agreement and made an integral
part thereof.
ARTICLE IV
(This Article would set forth the general exceptions
provided for in Article 37 of the Charttr.)
ARTICLE V
(This Article would reproduce the provisions of
Article 38 of the Charter relating to territorial application.)
ARTICLE VI
(This article would permit revision of the Agreement, by
agreement among the signatories, if necessary or desirable
in order to take account of changes in the Charter effected
by the International Conerence on Trade and Employ-
ment.)
ARTICLE VIl
(This Article would provide for the entry into force of
this Agreement, its duration, and its termination. The
Agreement would remain initially in force for three years.
If not terminated at the end of the three-year period
(which would require six months' prior notice), it would
remain in force thereafter, subject to termination on six
months' notice.
There would be a number of purdly technical and oa
purely legal provisions.)
ANNEXURE 11
United States Draft Charter
FOREWORD
In December I945 the Government of the Unired States
published and transmitted to other governments for their
consideration a document entitled Proposals for Expansion
of Word Trade and Employment.
These Proposals put forward the idea that there should
be established an International Trade Organization of the
United Nations, the members of which would agree to
conduct their commercial relations in accordance with riles
to be set forth in the Charter of the Organization. The
Proposals contained suggestions for rules to govern trade
barriers, restrictive business practices, intergovernmental
commodity arrangements, and the international aspects of
domestic employment policies and outlined a suggested
structure for the International Trade Organization itself.
Tie governments of several other countries have expressed
their general agreement with these suggestions.
In February 1945 the Economic and Social Council of the
United Nations, at its first meeting, adopted a resolution
calling for an international conference on trade and em-
ployment to consider the creation of an International Trade
Organization. It also established a Preparatory Committee
of Ig countries to arrange for the conference and to prepare
a draft Charter for such an Organization. The Preparatory
Committee is to meet in London in the fall of 1946.
In preparation for the conference, the Governceat of the
United States has prepared an elaboration of its Proposals
in the form of a suggested Charter for the International
Trade Organization. Copies of the suggested Charter have
been transmitted to the Secretary-General of the United
Nations and to the other governments named by the
Economic and Social Council to serve on the Preparatory
Committee.
The suggested Charter is the work of many persons of
competence and experience in the departments and agencies
of the United States Government. It is put forward, how-
ever, as a basis for discussion and not as a document-
expressing the isxed or fnal views of this Government. Th.
draft should clarify possible obscurities and remove any
misunderstandings to which the condensed language oa the
Proposals may have given rise.
W. L. CLAYTON,
Under Secretary of State
for Econoenic Affairs.
CONTENTS
Establishment provisions ... ... ... ...
.CHAPTER I. PURPOSES
Article z. General purposes e& the Organization.
CHAPTER II. MEMBERSHIP
Article 2. Membership . ... ... ... ...
'CHAPTER m. EMPLOYMENT PROVISIONS
Article 3. Relation of employment to purposes
Organization ... ...
Article 4. General undertaking to promote full employnu
Article 5. Avoidance of certain employment measures
Article 6. Consultation and excbangc of information
matters relating to employment ...
Article 7.Assignament of functions to Economic and Soc
Council ... ... ... ... ...
Pagc- Page
53 CHAPTER IV. GENERAL COMMERCIAL POLICY
SECTION A. GENERAL COMMERCIALPROVISIONS
Article 8. General most-favoured-nation treatment -5
-53 Article 9. National treatment on internal ta.xationand
regulation ...4
Article 10. Freedom of transit . . 54
53 Article ri. Antidumping and countervailing-duties *54
Article i2. Tarif valuation ....
Article 13. Customs formalities ... . ...
Article 14. Marks of ongi a .-...... .
of Article 15. Publication and administrtion of trade regula-.
.. 53 tions-advance notice of restrictive regulations 5
e 5t S4 Article 16. Information, statistics and trade terminology ... 56
54 Article 17. Boycotts ... .. - - . . ... 56
on
SCTION B. TARSPFS AND TARIFF PREFERENCE
Article 18. Reduction of tariffs and elimination of
54 preferences .... 53
SECTION C. QUANTITATIVE RESTRICTIONS
Article 2g Generâl elimination of quantitative restrictions
Article 2o. Restrictions to restore equilibrium in the balance
ai payment ... ... ...
Article ai. Nondiscriminatory adnmInistration oa quantitative
restrictions ... ... ... ... ...
Article a2. Exceptions from rule of nondiscrimination ...
Article 23.
Article 24.
Pagc
57
57
58
5 8
.58
. 58
SECTIOND. EXCHANGE CONTROL
Elimination of exchange restrictions in relation
to current commodity transactions ... ...
Nondiscrimntry administration of exchange
restrict ons ... ... ... ... ...
SECTION E. SUBSIDIES
Article 25. General undertaking regarding subsidies-elim-
ination of export subsidies-exceptions ... 58
SECTION F. STATE TRADING
Article 26. Nondiscriminatory administration of state-
trading enterprises *-. *-- . .- .-- S9
Article 27. Expansion of trade by sta'e monapolies of
individual products ... ... ... ... 59
Article a8. Expansion oa trade by complete state monopolies
of import trade ... ... ... ... ... 59
SECTION G. EMERGENCY PROVISIONS-CONSULTATION-
NULLIFICATION OR IMPAIRMENT
Article 29. Emergency action on imports of particular
product ..- ... ... ... ... 59
Article 30. Consultation-nullification or impairment ... 60
SECTIONH. RELATIONS WITH NON-MEMBERS
Article 31. Contractual relations with non-Members-
treatment of trade of non-members ... ... 60
SECTION I. GENERAL EXCEPTIONS
Article 32. General exceptions to Chapter IV. ... ...
SECTION J. TERKITORIAL APPLICATION
Article 33. Territory application of Chapter IV-eustoms
unioans-frontier trailc ... ... ... ...
60
60
CHAPTER V. RESTRICTIVE BUSINESS PRACTICES
Article 34. Policy toward restrictive business practices ... 6o
Article 35. Procedure with respect to complaints ... ... 61
Article 36. Studies and conferences relating to restrictive
business practices ... ... ... ... 6i
Article 37. Obligations of Members ... ... ... ... 6r
Article 38. Supplementary enforcement arrangements ... 6r
Article 39. Continued effectiveness of domestic measures
against restrictive business practices ... ... 62
Article 40. Exceptions to provisions of Chapter V ... ... 62
CHAPTER VL INTERGOVERNMENTAL COMMODITY
ARRANGEMENTS
Article 41. General statement regarding intergovernmental
.commodity arrangements ... ... 6z
Article 42. Special commodity studies .62
Article 43. Commodity conferences ... 62
Article 44.
Article 45-
Article 46.
Article 47.
Article 48.
Article 49.
Page
Objectives of intergovernmental commodity
agreements ... ... ... ... ... 62
Principles gove.ning the institution of inter-
goveramental commodity agreements ... 6«
Principles and requirements of intergovern-
mental commodity agreements ... ... 62
Commodity Councils ... ... ... ... 63
Additional obligations of Menmbers in respect of
intergovernmental commodity agreements ... 63
Exceptions to provisions relating to intergovern-
mental commodity agreements ... ... 63
CHAPTER VII. ORGANIZATION
SECTION A. FUNCTIONS
Article 5o. Functiosis of the Organization ... ... ... 63
SECTION B. STRUCTURE
Article S-. Structure of the Organizatioa ... ... ... 64
Article 52.
Article 53.
Article 54.
Article 5S-
Article 56.
Article 57.
Article 58.
Article 59.
Article 6o.
Article 6r.
Article 62.
Article 63.
Article 64.
Article 65.
Article 66.
Article 67.
Article 68.
Article 69.
Article 70.
Article 71.
Article 72.
Article 73.
Article 74.
articlee 75.
Article 76.
Article 77.
Article 78.
Article 79.
SECTION C. THE CONFERENCE
Conferenco-membership ... ...
Conference-voting ... ... ...
Confereace-sessions, procedure and officers
Conference-powers and duties ... ...
Interim Tariff Committee ... ...
SECTION D. THE EXECUTIVE BOARD
Executive Board-membership... ...
Executive Board-voting ... ...
Executive Board-sessions, procedure
olficers ... ... ...
Executive Board-powers aîîd duties ...
64
04
G4
64
64
... 64
... 64
and
... 6S
... 6S5
SECTION E. TaE COMMIssIONS
Establishment of commissions. ...
Composition and procedure of commissions ...
General functions of commissions ... ...
Functions of Commission on Commercial Policy
Functions of Commission on Business Practices
Functions of Commodity Commission ...
SECTION F. TuE SECRETARIAT
Composition of Secretariat ... ...
Director General ... ... ... ...
Deputy Directors General ... ...
Secretariat staff ... ... ... ...
6s
65
65
6s5
6s
65
... 66
... 66
... 66
... 66
SECTION G. MISCELLANEOUS PROVISIONS
Relations with other organizations ... ... 66
International responsibilities of personnel of
Organization ... ... ... ... ... 66
Legal capacity of Organization ... ... .. 66
Privileges and immunities of Organization ... 66
Amendments to Charter ... ... ... ... 67
Interpretation and settlement of legal questions 67
Contributions of Members. 67
Entry into force .61
Withdrawal and termination ... ... 6;
SUGGESTED CHARTER FOR AN INTERNATIONAL TRADE ORGANIZATION
OF THE UNITED NATIONS
ESTABLISHMENT
The International Trade Organization of the United
Nations is hereby established and shal operate in accord-
ance with the following provisions:
CKAPTER I.-PURPOSES
ARTICLE I
General Purposes of the Organization
The purposes of the Organization shall be:
- (I) To promote the solution of problems in the field of
international commercial policies and relations through
consultation and collaboration among Members.
(2) To enable Members to avoid recourse to measures
destructive of world commerce by providing, on a re-
ciprocal and, mutuafly advantageous basis expanding
opportunities for their trade and economic development.
* (3) To encourage and assist the industrial and general
economic development of Member countries, particularly
of those still in the early agess of industrial development.
(4) In general, to promote national and international
-action for the expansion of the production, exchange and
consumption of goods, for the reduction of tariffs and
other trade barriers, and for the elimintion of all forms
- of discriminatory treatment international commerce;
thus contributing to an expanding world economy, to the
establishment an maintenance la all countries af hio h
levels of employment and real income, and to the
creation.of economic conditions conducive to the main-
tenance of world peace..
(t) To provide a centralized agency for the coordina-
.tion of the work of MIembers to fthe above ends.
CRAPTER II.-MEMBERSHIP
ARTICLE 2
Mlernbership
z. The original Members of the Orgamization shall be
those countries '.represented at the United Nations Con.
ference on Trade and Employment which accept the provi.
sions of this Charter by 31st December, sg.4, or, in tht
event that this Charter has not entered into force by that
date, the countries which have agreed to bring this Charter
into force pursuant to the proviso to paragraph 3 oi
Article 78.-
2. Membership in the Organization shail be open to sncb
other countries as accept the provions of this Charter,
subject to the approval of the Conference on recommenda
tion of the Executive Board. . :
3. The Conference shal establish procedures that wM
open a membership in the Organization to the United
Nations on behalf of the. trust territories for which the
United Nations is the administering authority.
CERaa Im.-E UPLOaYUr PROVISIOaS
ARTICLE3
Relation of Bmpioyment to Purposes of Organiszation
The Members recognize that the attainnent and main-
tenance of useful employment opportunities for those able
wlfllng,; and seeking ta work are essential to the full realize.
tion of the purposes af the Organiatian. .They also recog-
nize that damec prgram ta maintain or expand
employment should b`e conuistènt wit these purposes.
1 54
ARTICLE 4
General Undertaking to Promote Full Employment
Each Member shall take action designed to achieve and
maintain fuil employment within its own jurisdiction
through measures appropriate to its political and economic
institutions.
ARTICLS 5
Avoidance of Certain Employment Measures
In seeking to maintain or expand employment, no
Member shall adopt measures which would have the effect
of creating employment in other countries or which are
incompatible with undertakings designed to promote an
expanding volume of international trade and investment.
ARTICLE 6
Consultation and Exchange ut Information or Matters
Relating to Employment
The Members agree that they will: (I) make arrange-
ments for the collection, analysis, and exchange of informa-
tion on employment problems, trends, and policies and for
the submission at regular intervals of reports on the
measures adopted to give effect to Article 4; (2) consult
regularly on employment problems; and (3) hold special
conferences in case of threat of widespread unemployment.
ARTICLE 7
Assignment of Functions to Economic and Social Council
In accordance with the Charter of the United Nations,
the Economic and Social Council will be responsible for
furthering the objectives of Chapter III and supervising
the fulfilment of the obligations assumed under Article 6.
CEAPTER IV.-GENR.AL COMMERCIAL POLICY
Section ;4.-General Commercial -Provisions
ARTICLE 8
Gentrai ltost-Favored-Nation Treatmont
I. With respect to customs duties nnd charges of any
kind imposed on or in connection with importation or
exportation or imposed on the international transfer of
payments for imports or exports, and with respect to the
method of levying such duties and charges, and with
respect to ail rules and formalities i connection witb
importation or exportation, and with respect to all matters
relating to internal taxation or* regulation referred to in
Article g, i ny advantage, favor, privilege or immunity
granted by any Member. country to any product
originating in or destined for any other country, shall be
accorded immediately and unconditionally to tue like
product originating in or destined for ail other Member
countries. The principle underlying this paragraph shall
also extend- to 'the awarding by Members of govern-
mental contract for public works, in respect of which
each Member shall accord fair and equitable treatment
te the commerce of the other Members.
2. The provisions of-paraçraph I of this Article shall
not be construed to require. the eimintion of any
preference in the rate of ordinary import customs duty
which does not exceed the preference i force in any
Member country on I Joly, :939, and which falls within
the descriptions set forth in (a) or (b), below, but such
preferences shall in no event be increased above their
level on I July, I9g46, and shall be subject to processes
of elimination pursnant to the provisions of Article s8:
(a) Preferences in force exclusively between territories
in respect -of which there existed on 1 July. I939,
common sovereignty or relations of protection or
suzerainty. ' Each Member toe which this provision
applies shall provide a list of snch territories in respect
of which preferences were in force on that date, which
lists shall be incorporated in an annex to this Charter.
(b) Preferences in force exclusively between the
United States of Armerica- and the Republic of Cuba.
ARTICLE 9
National Treatm"st on Intea Taxation and Regulation
- . The products of any Member country imported into
any other Member country shaU be exempt from, internal
taxes and other internal charges higher than those im-
posed on like products of national crigin, and shall be
accorded treatment no less favorable than that accorded
like products of national origin lin respect of ahl internal
laws, regulations or requirements affecting their sale,
trasrtation or distribution or aifecting their mixing,
processing, exhibition or other use, including laws and
regulations governing the procurement by governmental
agencies of supplies for publie use other than by or for
the military csta bishment. The provisions of this para-
graph shall b. u 2derstoOd to precude the application of
intornai requments restricting the amount or proportion
of an importubd product permitted to bo mixed, processed,.
exhibited or useod.
z. The Members recognize that the imposition of in-
ternal taxes on the products of other Member countries,
for the purpose of affording protection to the domestic
production of competitive products, would bo contrary
to the spirit of this Article, and they agreo to taire such
measures as may b. open to thera to prevent in the
future the adoption of new or higher taxes of this kind
within their territories.
ARTICLE 10
Freedom of Transit
r. There shall b. freedom, of transit through the
Member countries via the routes. mort convenient for
international transit for traffic in transit to or from other
Member countries.
2. Any Member may require that traffic in transit
through its territory be entered at the proper custom-
house, but, except in cases of failure to comply with
applicable customs laws and regulations, such tragic
coming from or going to other Member countries shall
be exempt frora the payment of any transit duty, customs
duty, or similar charge, and shal not be subject to any
unnecessary delays or restrictions.
3. All charges and regulations imposed by Members on
traffic in transit to or from other Member countries shall
be reasonable, having regard to the conditions of the
traffic.
4. With respect to ai! charges, rules, and formalities in
connection with transit, each Member shall accord 'to
traffic in transit to or from. any other Member country-
treatment no less favorable than the treatment accorded
to traffic in transit to or from any other country.
5. Each Member shall accord to products which have
been in transit through any other Member country treat-
ment no less favorable than that which would have. been
accorded to such products had they been transported from
their origin to their destination without going through
such other Member country.
6. Persons, baggage and goods, and also vessels,
coaching and goods stock, and other means of transport,
shall be deemed to be in transit across the territory of a
Member wben the passage across such territory, with or
without transshipment, warehousing, breaking bulk, or
change in the mode of transport, is only a portion of a
Complete journey, beginning and terminating beyond the
frontier of the Member across whose territory the transit
takes place. Traffic of this nature is termed in this
Article " traffic in transit."
ARTICLE II
Antidumping and Countevailing Duties-
r. No antidumping duty shall be imposed on any
product of any Member country imported into any other
Member country in. excess of an amount equa; to the
margin of dumping under which such product is being
imported. For the purposes of this Article, the margin
of dumping shal be understood to mean the amount by
which the price of a product exported from one country
to anote.er la less than (a) the comparable price charged
for the like or similar product tobuyers in the domestic
market of tho exporting country, or, (b) in th. absence
of such domestic price, the highest comparable price' at
which the like or similar product is sold for export to any
third country, or (c) in the absence of (a) and (b), the.
cost of production of the product ln the country of origin;
with due allowance in'each case for differences la con-
ditions and terrs of sale, for differences in taxation; and
for other differences affecting price comparability.-
2. No countervailing duty shahl be imposed on any
product of any Member country imported idite any other
Member country in excess of an amount equal to the
estimated bounty or subsidy ascertained to have been
granted, directly or indirectly, on the production or export
of such product in the country of origin or exportation.
3. No product of any Member country imported into
any other Member country sha1l' be subject to anti-
dumping or comntervailing duty by reason'cf the exemp-
tion of such product from duties or taxes imposed i the
country of origin or exportation upon the like product
when ronsumned domestically. 55
4. .N o produc t of any Member country imported into
aaay other Member country shall be subject ta bath anti-
dumping and countervailing duty ta compensate for the
same situation of dumping or export subsidization.
5. Each Member undertakes that as a general rule it
wwil not impose any antidumping duty or countervailing
duty on the importation cf any product of oth er Member
couatries unless it determines that the dumping or sub-
sidization, as the case may bb, under which such product
is imported, is such as te injure or threaten to injure a
domestic industry, or is sucb as to prevent the establish-
ment cf a domestic. industry.
ARTICLE 12
Tarif Valuation
I. Members undertake to work toward the standardiza-
tion, in so far as practicable, of definitions of value and of
procedures for determining the value of products subject
te customm duties or other restrictions based upon or
regulated in any manner by value. With a view to
furthering such cooperation, the Organization is authorized
to investigate and recommend to Members such bases and
methods for determining the value of products as would
appear to be best suited to the needs cf commerce and
most capable of widespread adoption.
2. The Members recognize the validity of the following
general principles of tariff valuation, and they undertake
to give effect to sucb principles, in respect of all products
subject to duty based upon or regulated by value, at the
earliest practicable date:
(a) The value for duty purposes of imported products
should be based on the actual value cf the kind of
imported merchandise on which duty is assessed, or the
nearest ascertainable equivalent of such value, and
should not b. based on the value cf products of national
origin or on arbitrary or Sctitious valuations.
(b) The value for duty purposes of any imported
product should net include the amount cf any internal
tax, applicable within the country cf origin or expert,
from which the imported product bas been made exempt.
(c) In converting the value of any imported product
from one currency ta another, for the purpose of assess-
ing duty, the rate of exchange to be used should be
fixed in accordance with prescribed standards to reflect
effectively the current value of each currency in com-
mercial transactions, and until the elimination of dua
or multiple rates of exchange either one or more than
one rate for each dual- or multiple-rate currency may
be so fixed.
(d) The bases and methods for determining the value
of products subject to duties regulated by value should
b. stable and should b. pubished in full detail, in order
that traders may be enabled to estimate, with a reason-
able degree of certainty, the amount of duty likely to
be imposed..
ARTICLE 13
Customs Formalities
z. The Members recognize the principle that subsidiary
fees and charges imposed on or in connection with
Importation or exportation should be limited in amount te
the approximate cost of services rendered and should not
represent an indirect protection to domestic products or
a taxation of imports or exports for fiscal purposes. They
also recognize the need for reducing the number and
diversity cf such subsidiary fees and charges, for mini-
mizing the incidence and complexity cf import and export
formalites, and for decreasing and simplifying import and
export documentation requirements.
2. Members undertake ta review their customs laws and
regulations with a view to giving effect to the principles
and objectives of paragraph I of this Article at the earliest
practicable date and shal report to the Organization from
timo. te tire on the progress made. The Organization is
authorized to request such reports of Members and to assist
and cooperate with then in carrying ont the provisions of
this paragraph.
3. Greater than nominal penalties shall net b. imposed
by any Member la connection with the importation of any
product cf any other Member country because of errors la
documentation which are obviously clerical in origin or
with regard to which good faite can be established. More-
over. Members shall remit any penalty imposed on or in
connection with the importation of any product of any
other e er country if it is officially found teat the
penalty mas been imposed. because of actions which resulted
from errors-or advice of responsible customs officials.
4. The provisions cf this Article shall extend t'O fees,
charges, ffrmaities and requirements relating ta aal
customs matters, including
(a) Consular transactions;
(b) Quantitative restrictions;
(c) Licensing;
(d) Exchangg regulations
(e) Statistical services;
(f) Dcuments, documentation and certnction;ton
(g) Analysis and inspection; and
(k) Quarantine, sanitation and fumigation (plant
animal and humann.
ARTfICL 14
Mark of Origin
x. The Members agree that in adopting and implementing
laws and regulations relating ta marks of origin, the
difflculties and inconveniences which such measures nay
cause ta the commerce and industry of exporting countries
slxoud bc reduced ta a -inimum.
2. Each Member shall accord to the products of each
other Member country treatment with regard ta mrkinng
requirements no less favorable than the treatment c ccorded
like products of any third country.
3. Whenever administratively possible, Members shaU
permit required marks cf origin ta be imposed at the time
of importation.
4. The laws and regulations of tho Members relating ta
the marking cf imported products shall be such as ta
permit ccompiance without seriously damaging the pro-
ducts, or material reducing their value, or unreasonably
increaslng their cost.
5. Members shall exempt from their marking require.
ments the following products:
(a) Products incapable of being marked;
(b) Products which cannot be rnarked except at un-
reasonable expense;
(c) Products in transit and their containers;
(d) Products in bond and their containers;
(e) Samples and products without commercial value
and their containers;
(t) Containers of properly marked products of a type
not ordinarily imported and sold at retail in scaleri
containers;
(g) Products of a type ordinarily imported and sold
at retail in sealed containers, provided such containers
are properly marked;
(h) Products over 20 years old and their containers;
(i) Products intended for the personal use of the im-
porter or his family or for use in his factory or place of
business, and not intended for sale, and the containers
of such products;
(j) Crude substances and raw materials; and also the
containers of such products if the products are intended
for use by the person for whom the importation is made,
or for his account in manufacturing new and different
products.
6. No special duty or penalty shall be imposed by aiy
Member for failure to comply with the parking require-
ments prior to importation unless corrective marking bas
been unreasonably delayed or faise marks have been
intentionally afiixed or the required marking bas bees
intentionally omitted.
ARTICLE 15
Publication and Administration of 'Tade Regtdations-
Advance Notice of Restndcive Regulations
i. Laws, regulations, decision of judicial authorities
and administrative rulings of general application made
effective by any Member, pertaining to the classification
or valuation of.products for customs purposes, orto rates
of duty, taxes- or other charges, or to requirements,
restrictions or prohibitions on imports or exports or on the
transfer of payments therefcr, or affecting their sale or
distribution, or affecting their. warehousing, inspection,
exhibition, processing, fixing or other use, shal be pub-
lished promptly in such a manner as to enable traders
and governments to become acquainted with them.
Agreements in force between the government or a
governmental agency of.:any Member country and the
government or a governmental agency of any other country.
affecting international trade policy shal also be published.
Copies of such laws. regulations, decisions, rulings and' 56
agreements shall be communicated promptly to tho
Organization. This paragraph shall not require any
Member to publish administrative rulings which would
disclose confidential information, impede law enforcement,
or otherwise be inimical to the public interest.
2. Members shall administer in a uniform, impartial and
reasonable manner all laws, regulations, decisions and
rulings of the kind described in paragraph I of this Article.
Moreover, they undertake to raaintain, or to establish as
soon as practicable, for the review and correction of ad-
ministrative action relating to customs matters. judicial or
administrative tribunnas which arc in fact independent of
the agencies entrusted with administrative enforcement.
Finally, each Member will enforce all measures necessary
to suppress and prevent the exaction of charges and the
prescription of requirements in respect of international
trade which are not provided for in its published laws or
regulations.
3. No law, regulation, decision or ruling of any Member
effecting an adv-ance in a rate of import or export duty or
other charge under au established and uniform practice. or
imposing a new or more burdensome requirement, restric-
tion or prohibition on imports or exports or on the transfer
ai payments therefore, sh*all, as a general rule, be applied
ta products af any other Member already en route at the
tisne af publication thereof ia accordance with paragraph I
ai this Article: Provided, That if arny Membcr customarily
exempts from such new or increased obligations products
entered or withdrawn from warehouse for consumption, or
cleared for export, during a period of thirty days after the
date of such publication, such practice shall be considered
full compliance with tais paragraph. The provisions of
this paragraph shall not apply to antidumnping or
countervailing duties.
ARTICLE I6
Information, Statistics and Trade Terminology
I. Members agree to make available promptly to the
Organisation, in as detailed and accurate a manner as
practicable, such statistics relating to their foreign trade
as the Organization deems necessary in connection with
the fulfilment of its functions, including as the minimum
essential to the effective discharge of its duties data on
the following subjects:
(a) Exports and imports of merchandise, distinguishing
in so far as possible the movement of transit trade, and
taking into acco rce desirability of uniformity in
international trade a.
(b) Governmental revenue from import and export
duties and from other taxes imposed on products moving
in international trade, and subsidy payments affecting
such trade.
2. Statistics of exports and imports of merchandise
furnished to the Organizationashall so far as practicable be
related ta tariff classifications and shall be in such form as
to reveal the operation of any restrictions on importation
or exportation which are based upon or regulated in any
matter by quantity or value, or by amounts of exchange
made available.
3. Members agree to make available to the Organization,
in as detailed and accurate a manner as practicable. such
statistics on other economic subjects as the Organization
deems necessary in connection with the fulfillment of its
functions, and in particular statistics relating to balances
of payments and prices, so far as the statistics are not being
furnished to any other international organization having
functions to which the statistics are more particularly
related and from, which the Organization can obtain the
required information.
4. The Organisation shal act as a center for the collec-
tion and exchange of statisfical and other information
relating ta intemnaffoanal trade, thus facilitating thU pre-
paratian ai studio designed -to assist Yembers in
deveaping policies which further the purposes of this
Charter. The Organizatian shall make such data available
ta thc Economic and Social Council of the United Nations
and to other interested international organizations and
shall, in cooperation with these organizations, seek to
bring about improvements in the methods of collecting,
analyzing and publishing economic statistics, particularly
those relating to international trade, and to promote the
international comparability of such statistics, including the
international adoption of standard commodity classifica-
tions. The Organization shall also, in cooperation with
such other org nations, compile and publish summary
comparative statistics rating ta Uhe subjects specified in
paragraph of this Article. -
5. Members agree to publish the statistics referred to in
paragraph i of this Article promptly and in as much detail
as practicable and to cooperate with the Organization in
carrying out the objectives of parag-aph I of this Article.
6. Members undertake to co-operate with the Organiza-
tion in promoting the international adoption of standard
definitions of terms customarily used in commercial
practice, and in developing standards to which goods may
be manufactured or graded. Members undertake to
cooperate in introducing such standards as are found to be
desirable and practicable to encourage the freer movement
of goods in international trade.
7. The Organisation, in cooperation with the other
organizations referred to in paragraph 4 of this Article,'
may adopt standards, nomenclature, terms and forms to be
used in official documents and statistics of Members in the
field of international trade. Such standards, nomenclature,
terms or forms shall automatically become effective as to
all Members of the Organization after notice has been
given of their adoption by the Organization, except for such
Members as may notify tUc Director General of rejection
or reservations within the period stated in the notice,
which period shall be not less thai six months.
ARTICLE 17
Boycotts
No Member shall encourage, support or participate in
boycotts or other campaigns which are designed to dis.
courage, directly or indirectly, the consumption within its
territory of products ai other Member countries on grounds
ai origin, or the sale ai products for consumption within
other Member countries an ground iof destination. More-
over, cai Member shall discourage, by such means as may
bc available to it, such campaigns by political entities
within its jurisdiction.
Section B.-Tariffs and Tariff Preferences
ARTICLE 18
Reduction of Tariffs and Elimination of Preferences
Each Member, other than a Memnber subject to the
provisions of Article 28, shall, upon the request of any
other Member or Members, enter into reciprocal and
mutually advantageous negotiations with such other
Member or Members directed to the substantial reduction
ai tarifac (or ai marginal ai protection afforded bly state
trading) on imports and exports, and to the elimination
i airport tarif preferences. These negotiations shall pro-
ceed in accordance with Uie following rules:
(a) Prior international commitments shal not be per-
mitted to stand in the way of action with respect to
tariff preferences.
(b) AUl negotiated reductions in most-favored-nation
import tariffs shall operate automatically to reduce or
eliminate marginal of preference. so that, in respect of any
product on which Ui most-favored-nation rate of duty is
reduced or bound against increase pursuant to the nego-
tiations, the margin of preference which may apply to
such product may not exceed the margin by which the
most-favored-nation rate, as rtduced or bound against
increase, exceeds the preferential rate in force on
I July, 1939.
2. Each Member' participating in negotiations pursuant
ta paragraphs aif thia Article shall keep the Organisation
informed ai Uic progress t'sereof and shall transit to-She
Organisation a copy ai Uie agreement or agreements incor-
porating Uic résulta ai such negotiations. --
3. If any Member considers that any other Member las
failed, within. a reasonable period of. time, to fulfill its
obligations under paragraph i of this Article, such Member
may refer Uie matter to the Organization, which shal
investigate the matter and niale appropriate recommenda-
tions to Utic Members concerned. The Organization, if it
finds that a Member bas, without sufficient justification,
failed to negotiate with suchcomplaining Member as .re-
quired by paragraph I of this Article, may determine that
the complaining Member, or in exceptional cases the
Members of the Organisation generally, shall, notwithstand-
ing the provisions af Article 8, be entitled to withhold from
the trade of the other Member any of the tariff reductions
which the complaining Member, or the Members of the
Organization generally, as the case .may be, may have
negotiated pursuant to paragraph. i of this Article. and if
such reductions are in. fact withheld, such other Member
shalh then be free, within sixty days after such action is
taken, to withdraw from the.Organisation. on sixty days'
written notice to the Organization. The provisions of this
paragraph shall operate in accordance with the provisions
of Article 56. 57
Section C.-Quantitative Restrictions
ARTICLE 19
General Elimination of Quantitative Restrictions
s. Except as otherwise provided elsewhere in this
Chapter,* no prohibition or restriction other than duties,
taxes or other charges, whether made effective through
quotas, licenses or other measures, shall be imposed or
maintained by any Member country on the importation
of any product of any other Member country, or on the
exportation, or sale for export, of any product destined for
any other Member country.
2. The provisions of paragrapb I of this Article shall not
extend to the following:
(a) Prohibitions or restrictions on imports or exports,
imposed or maintained during tho early post-war transi-
tional period, which are essential to (i) the equitable
distribution among the several consuming countries of
products in short supply, whether such products are
owned by private interests or by the government of ans
Member country or (ii) the orderly liquidation of tem-
porary surpluses of stocks owned or controlled by the
government of any Member country: Provided, That
retrictions under (ii) of this subparagraph may bc im-
posed by aay Member only after consultation with other
interested Members with a view to appropriate inter-
national action. Import and export prohibitions and
restrictions imposed or maintained under this sub-
paragraph shall be removed as soon as the conditions
giving rise to them have ceased to exist and, in any
event, not later than z July, 1949: Provided, That this
period snay, in extraordinary and abnormal circum-
stances, and with thb concurrence of tho Organization.
be extended in respect of any product for. further
periods not to exceed six months each.
(b) Export prohibitions or restrictions temporarily
imposed to rehieve conditions of distress which are local
to the exporting country and which are caused by severe
shortages of foodstuffs or other essential products.
(c) Import and export prohibitions or restrictions
necessary to the application of standards for the classifi-
cation and grading of commodities in international
commerce.
(d) Export or import quotas imposed under inttr-
govermnental comnrodity agreements concluded in
accordance with the provisions of Chapter VI.
(c) Import restrictions on any agricultural product,
imported in any form. necessary to the enforcement of
governmental measures which operate (Î) to restrict the
quantities of the lilke domestic product permitted to be
marketed or produced, or (ii) to restricta temporary
surplus of the like domestic product by making the sur.
plus available to certain groups of domestic consumers
free of charge or at prices below the current market level.
Any Member imposing restrictions on the importation
of any product pursuant to this subparagraph shall give
public notice of the total quantity or value of the product
permitted to be imported during a specified future period
and of any change in such quantity or value. Moreover,
any restrictions isnposod under (i) of this subparagraph
ha not be such -as will reduce the total of imports
relative to the total of domestic production, as compared
with the proportion between the two prevailing during
a previous representative period, account being taken
in so far as practicable of any special factors which may
have affected or may be affecting the trade la the pro-
duct concerned.
ARTICLE 20
Restrictions to Restore Equilibriurt in the Balance of
Paymenas -
1.Notwithstanding the provisions of Article I9, any.
Member confronted with an adverse balance of inter-
national payments may, as an aid to the restoration of
equilibrium therein, impose or maintain restrictions on the
quantity or value of merchandise permitted to be imported.
The imnpositon or rain te na nce of restrictions under this
paragraph shal conform to the conditions and requirements
set forth in paragraphs 2 or 3 of this Article, as the case
may ho.
2. Any Member which considers such action necessary
to restore equi llbrium la its balance of international pay-
ments shallbe entitled to impose or maintainquantitative
See parapaph 2 of Article19; Article 20; .paragraph 10
Article 22- and Article 29.
import restrictions under paragraph i of this Article until
31December, 1949: Provided, That any Mcmber availing
itself of the privileges of this paragraph shall consult,
through the Organisation, with the other Members affected
with a view to assuring that the effects of such restrictions
on their commercial interests are minimized to the fullest
possible extent compatible with the safeguarding of the
balance of payments of the Mcmber inmposing the restric-
tions. Any Mcmber still maintaining such restrictions on
3I December, I949, shall complete arrangements so that
no such restrictions shall remain in force on or after the
expiration of six months from that date.
3. Notwithstanding the provisions of paragraph 2 of this
Article, any Member shall be entitled to impose balance-of-
payments restrictions, whether during or after the transi-
tional period provided for in paragraph 2 of this Article,
subject to the following conditions:
(a) No Member shall impose such restrictions under
this paragraph unless such action is necessary (i) to arrest
a long continuing or large deficit in the Member's balance
of payments, or (i) la the case of a Member with very
low monetary reserves, to forestall a large deficit in the
Member's balance of payments. Such restrictions under
(i) shall be progressively relaxed -.;th the reduction of
the deficit la the Member's balance e of payments and shaJ
be completely removed upon the elimina tion of the
deficit in the Member's balance of payments. Such
restrictions under (il) shall be progressively relaxed with
improvement in the Member's monetary reserves, and
shal hc completely removed with the attainment by the
Member of adequate monetary reserves. The deficit
or surplus in a Member's balance of payments shall be
understood to mean its deficit or surplus on current
account, as defined in Article XIX (i) of the Articles of
Agreement of tho International Monetary Fund. A
Members monetary reserves shall bo understood to
mean its reserves as defined in Article XIX(e) of the
Articles of Agreement of the International Monetary
Fund.
(b) Any Member imposing new restrictions, or con-
tinuing beyond the transitional period restrictions im-
posed pursuant to paragraph 2 of this Article, sha1 enter
mnto consultation with the Organization within thirty
days after the imposition of new restrictions, or after
the expiration of the transitional period, as the case
may be. The Organization shall seek consultation with
the International Monetary Fund in reviewing, in the
light of the criteria set forth in (a) above, the balance
of payments or monetary reserves of any Member avail-
ing itself of the privileges of this paragraph.
(c) Any Member which considers that any other
Member is applying import restrictions under this para-
graph contrary to the letter or spirit of the undertakings
in this Charter with respect to such restrictions, or in
a manner tending to impair the commercial relations
between the two Members, shall be entitled to brnng
the matter before the Organization for discussion, and
the Memnber imposing the restrictions shall undertakie
in these circumstances to enter into discussions with a
view to a mutually satisfactnry settlement of the matter.
The Orgarization may determine that such restrictions
are not in harmony with the principles set forth in this
paragraph and in the event appropriate action fs not
taken within tL*irty days after such determination
any Member which considers that such restrictions have
impaired its commercial relations with the Member im-
posing the restrictions shal be freo, within sixty days
after the date cf such determination, to suspend on
sixty days' written notice to the Organization the appli-
cation to the trade of such Member of any of the
obligations or concessions under this Chapter the suspen-
sion of which the Organisation does not recommend
against.
4. Restrictions maintained or imposed imder this Article
by any Member shall be so administered asæ to avoid
unnecessary dislocation to the. trade of other Members
having an interest in the exportation o£ particular pro-
ducts. To this end the Member maintaining or imposing
such restrictions shaU apply thur to aU important products
in a manner as nearly uniform as practicable and shall
in no event apply them in such- a manner as would pre-
vent the continuous importation in minimum commercial
quantities of any product (a) if imports of the product
are supplied principally or in important part by any other
Member or Members, or (b) if.imports o! the product are
important to the maintenance of the economy of any other
feraber engaged in exporting the .product th tee Member
maintaining or imposing such restrictions: 58
ARTICLE 21
Nondiscriminatory Administration of Quantitative
Restrictions
1. No prohibition or restriction shall be imposed by
any Member pursuant to this Section on the importation
of any product of any other Member country, or on the
exportation of any product destined for any other Member
country, unless the importation of the like product of all
third countries, or the exportation of the lilo product to
all third countries, respectively, is similrly prohibited or
restricted. In order to facilitate observation of the opera-
tion of the provisions of this paragraph in so far as they
relate to import restrictions, Members undertake that in
the application of such restrictions they will employ the
use of quotas, and will avoid the use of licensing or other
non-quota methods of restriction, to the fullest practicable
extent.
2. In the case of import restrictions imposed in the form
of quotas, the Member imposing such restrictions shall
give public notice of the total quantity or value of the
product or products permitted to be imported during a
specified future period, and of any change il such quantity
or value. If any Member imposing such quotas allots a
share of the total quantity or value to any other country,
it shall allot to the other Member countries having
an important interest in the trade in the product with
respect to which an allotment has been made, shares based
upon the proportions of the total quantity or value supplied
by such Member countries during a previous representa-
tive period, account being taken in so far as practicable
of any special factors which may have affect or which
may be affecting the trade in that product. No conditions
or formalities shall be imposed which would prevent any
Member country from fully utilizing the share of any such
total quantity or value which has been allotted to it. The
provisions of this paragraph shall also apply to any tariff
quota established or maintained by.any Member.
-3. In the case of import restrictions for which quota
determinations have not been made, the Member imposing
the restrictions shall provide, upon the request of any other
Member having an interest in the trade in the product
concerned, aUl relevant information as to the administra-
tion of the restriction, including information as to the
import licenses granted over a past recent period and the
distribution of such licenses. Restrictions under this para-
graph shall in no event be applied by sources of supply
and no import license or permit utilized in connection with
such restrictions shal require or provide that the license
or permit be utilized for the importation of the product
concerned from a particular country.
4. With regard to restrictions imposed in accordance
with paragraph 2 of this Article or under paragraph 2(e)
of Article ig, the selection of a representative period for
any poduct and the appraisal of any special factors affect-
ingth trade in the product shall bh made initially by the
Member imposing the restriction: Provided, That such
Member shall, upon the request of any other Member
having an important interest in the trade in that product,
or upon the request of the Organization, consult promptly
with the other Member or with the Organization reg
the need for an adjustment of the base period selected or
for the reappraisal of the special factors involved.
AICLE 22
Exceptions From Rule of Nondiscrimination
.. Members which are members of the International
Monetary Fund shall not be precluded by this Section from
applying quantitative . import restrictions (a) having
equivalent effect to any exchange restrictions which the
Member is authorized to impose in conformity with Article
VII of the Articles of Agreement of the International
Monetary Fund, or (b) essential to the maintenance, under
Article XX, Section 4(g) of that Agreement, of the common
par value of the currencies of territories having a common
quota in the Fund.
2. The provisions of paragraphs 1, 2 and 3 of Article 21
shallnot apply (a) in cases in which their application
would have the effect of preventing the Member imposing
the restrictions referred to in those paragraphs from utiliz-
ing, for the purchase of needed imports, inconvertible
currencies accumulated up to 31 December, 1948, which
are inconvertible at the time of their use, or (b) to pro-
hibitions or restiction imposed- under subparagraphs
za() (s) or (d) ai Article 19.
Section D.-Exchange Control
ARTICLE 23
Elimination of Exchange Restrictions in Relation to
Current Commodity Transactions
t. In order to avoid the imposition of trade restrictions
and discriminations through exchange techniques, the
Members agree that they will impose no restrictions on the
making of payments and transfers for such current inter-
national transactions as consist of payments due in
connection with the importation of any product:
Provided, That this obligation shall not prevent any
Member .'- imposing such restrictions on transactions
with non-M embers unless the Organization finds that such
restrictions prejudice the interests of other Members.
2. The obligations of paragraph r of this Article shall
not prevent any Member which is a member of the Inter-
national Monetary Fund from imposing restrictions in
conformity with the Articles of Agreemeont of the Inter-
national Monetary Fund: Provided, That no Member of
the Organization shall invoke or continue to invoke the
provisions of Article XIV, Section 2, of the Articles of
Agreement of the International Monetary Fund for the
purpose of imposing restrictions on the making of pay-
ments and transfers in connection with the importation
of any product of any other Member, except such exchange
restrictions as complement and correspond to quantita-
tive restrictions authorized by, and meeting the require-
ments set forth in, Articles 20, 21 and 22 of this Charter:
And provided further, That the provisions of this para-
graph shall not be construed to authorize any Member
of the Organization to impose restrictions on transactions
with any other Member by virtue of Article XI, Section 2,
of the Articles of Agreement of the International Monetary
Fond.
3. The Organization shall respect the authority and juris-
diction in respect of exchange matters assigned to the
International Monetary Fund by the Articles of Agree-
ment of the International Monetary Fund and shall seek
to cooperate with the Fund to the end that the Fund
and the Organization may pursue a common policy with
regard to exchange questions within the competence of
the Fund and questions of quantitative restrictions or
other trade measures within the competence of the
Organization.
4. This Article shall become effective upon the expira-
tion of six months from the day on which this Charter
enters into force.
,ARTILE 24
Nondiscriminatory Administration of Exchange Restric-
tions
Members maintaining or establishing exchange restric-
tions shall accord to the trade of other Members the
equality of treatment with respect to allaspects of such
restrictions required of members of the Fund under the
provisions of the Articles of Agreement of the Inter-
.ational Monetary Fund, or, in cases in which the approval
of the Fund is required, the equality of treatment pre-
scribed by the Fund after consultation with the Organisa-
tion.
Section E.-Subsidies
ARTICLE 25
General Undertaking Regarding Subsidies--Elimiiation of
Export Subsidies-Exceptions.. -
z. Except as provided in paragraph 2 and 3 of this
Article, if any Member establishes or maintains any
subsidy. including any form of income or price support, to
the domestic producers of any product, which operates to
increase the exports of such product from, or to reduce
the imports of such product into, the territory of the Mom-
ber, such Member shal notify the Organisation in g
as to the extent and nature of the suidization, as ta the
anticipated effect of the subsidization an the quantity of
the product imported into and exported from the te.rrtry
of the Membor, and as to the conditions making the sub-
sidization necessary. In any case in àhich it is deter-
mined that serious injury ta the trade of any Member is
caused or threatened by the operation of any such subsi-
dization, the Member granting such subsidiation shall
undertake to discusswith the other Me«ber or Members
concerned, or with the Organiation, the. possibilty of
limiting the subsidization. 59
2. Except as provided in paragraph 3 of this Article, no
Member shall grant, directly or indirectly, any subsidy on
the exportation do any product, or establish or maintain
any other system which results in the sale of such product
for export at a Price lower than the comparable price
charged for the like product to buyers in the. domestic
market, due allowance being made for differences in con-
ditions and ternis of sale, for differences in taxation, and
for other differences affecting price comparability. The
preceding sentence shall not b. construed ta prevent any
Member from exempting exported products from duties or
taxes imposed in respectt of like products when consumed
domestically or froma remitting such duties or taxes which
hive accrued. Members shall give effect te the provisions
of tus paragraph at th. earliest practicable date, but in
any event not later than Shree years from th. day un
which tis Charter enters into force. If any Member con-
ulders Itself unable to make the provisions of this paragraph
effective In respect of any specfied product or products
upor the expiration of such period, such Member'shall, at
lsist three months before tie expiration of such;'period,
give to the Organisation a notice in writingto that effect,
accompanied by an explanatory statement and an indica-
tion as ta the extension of the period desired. It shall
then be determined whether such period should be extended
for'the. Member desiring an extension in respect of the
product or products concerned.
3. (a) In any case in which it is determined that a speci-
fied product is, or is likely ta become, in burdensome world
surplus, tthe Members which are substantially interested in
the production, trade or consumption of such product shall,
upon thi invitation of the Organization or of any such
Member, consult with each other with a view to the adop-
tion of measures to increase consumption and to reduce
production through the diversion of resources from
uneconomic production, or with a view te seeking, if neces-
sary, th. conclusion of an intergovernmental commodity
agreement in accordance with the provisions of Chapter VI
of this'Charter.
(b) If zt is determined that the measures provided for in
subparagraph (a) of this paragraph have not succeeded, or
do not promise to succeed, within a reasonable period of
time, in removing, orpreventing the development of, a
burdensome world surplus of the product concerned, thi
requirements of paragraphs 1 and 2 of this Article shall
cease to apply in respect of such product as of the effective
date of suh determination and shall not be reapplied in
respect of such product until a date determined un accord-
anco with procedures approved by the Organization.
(c) Notwithstanding the provisions of paragraphs 2 and
3 (b) of this Article, no Member shall grant any subsidy
on the exportation of any product which has the effect of
acquiring or that Member a share of world trade in that
product inexcess of the sharewhich it had during a previous
representative period, account being taken in se far as
practicable of any special factors which may have affected
tion may b. affecting the trade in that product. The selec-
tion of a representative period for any product and the
appraisal of any special factors affecting the trade in the
product shall b made initially by tho Member granting
the subsidy: Provided, That such Member shall, upon the
request of any other Member having an important interest
in the trade in that .product,. or upon the request of the
Organization, consultpromptly with the other Member or
with the Organigation regarding the need for an adjust-
ment cf thc liase period elected or for the reappraisal
cf the~ upeclâl ftôi i-olved.
.4. Any determlnation requiré-oror appropiat to the
opration of this Article shall be made under procedures
established by the Organization in accordance with para.
graph 6 ocf Article 5-
- Section F.-State Trading
ARTICLE 26
N ondiscriminarory Administration of State.Trading
s. If any Member estabishes or maintains a state enter-
prse, wherever located, which imports, exports, purchases,
sells, distributes or produces any product or service, or if
any Memier grants exclusive or special privileges,.formally
or in effect, to aey enterprise te import. exports purchase
sell, distribute or produce any product or service.tie com-
merce of each of the, otherMembers shall be ac corded
noudiscminatory treatment, as compared with thie treat-'
ment accorded to tie. commerce of any country other than
that lu which ti, enterprs. is located iu respect of the
ase oK silo vfybsu'c.i.ost cf. anr product or
service. To this ,nd such enterprise gjafl, in makg
its external purchases"or sales of any product or service
be influenced solely by commercial considerations, sucl
as price, quality, marketability, transportation and ten a
of purchase or sale. The Member maintaining such state
enterprise, or granting exclusive or special privileges te an
enterprise, shail, upon the request of any other M-mber
having an interest in the trade in the product or service
concerned, or upen tho request cf tho O)rganization, pro-
vide sucii speciSc and detalod information as will make
possible a doternination as te whether the operations of
th. enterprise are being conducted in accordance with the
requirements cf this paragraphs.
2. For the purposes of this Article, a s.ate enterprise
shall b. understood to bo any enterprise over whose
operations a Member' government exercises, directly or
indirectly, a substantial measure of control.
ARTICLE 27
Expansion of Trade by State Monopolies of Indiir.dua2
Products
If any Member, other than a Member subject.ta the
provisions of Article 28, establishes, maintain or
autiiorises, formally or in effect, a complete. or sub-
stantially complete monopoly of the importation or
exportation of any product, such Member shall enter into
negotiations with otier Members, in the manner provided
for in respect of tarils under Article I8, with regard te
(a) in the case of an import monopoly, th. maximum
margin by which th. price for an imported product
charged by the monopoly in ethoe ome market may ex-
ceed the'price at wwhicb suci''product is offered for sale
to the monopoly by foreign supplier, or (b) in thi case
f an expert monopoly, t maximum margin by which
tho efor a product offered for sale by th. monopoly
te foreign purchasera may exceed thi price for mucis
product charged in tii. home manrkot; after due allow-
ance in eitier case for internal taxes andfor transportation,
distribution and other expenses incident te purchase, sale
or further processing. Members newly establishing any
suci monopoly mi respect of any product aiall not create
a margin as defined above greater than the maximum rate
of import duty (or, in the case of an expert rnonopolyv
greater than the maximum rate of export duty) which
may have been negotiated in regard to that product
pursuant to Article s8. With regard to any monopolized
product in respect of whici a maximum marWin has been
established pursuant to this Article, th. monopoly shahl
subject to tu, provisions cf Section C of this Chapter,
import and offer for sale (or, in:the case of an export
monopoly, effer for sale ta foreign purchasers) sucb
quantities of tue product as will be sufficient ta satisfy the
full domestic demand for tue imported product (or, in the
case of an expert monopoly, tue full foreign demand for
the product) at the prices charged under such maximum
margins.
ARTCLE z8
Expansion tf lrade by Complte State MJlopolies of
Import Trade
Any Member estabUsising or' nialtalning a complete or
substantiadly complet. monopoly cf its import frade sha
promote tute exasion cf ita foreign fad^e witha tue other
Members nu consonance with tue purposes cf tua Charter.
To this end sucb Member -al negtiate with the other
Mesnbers an arrangement unter whicn, lu conjunction
with thie granting of tarif concessions by such other
Members, and in consideration of tiiether benefits of this
Chapter, 'it 'hall undertake to import in the aggregate
over a pod-- products' f th. other Membeas valued at
net less than an amount te be agreed. upon. This purciiaio
arrangement shall be subject to pedlodic adjustment. -
Section G. Emergency Pros C statiosNt Uitpc-
tien or Imparm-et
: .: . ~ARziOL 29 .
Emergescy Action on Imporis or Partkcular Prodisct
x. If, as a result of unforeseen developments and of the
effect of the obligations incurred under 1his Chapter, in-
cluding the tarif concessions granted pursuant te Article
sô, any product is being imported into the' territory of any
Member in su ciincreased quantifies aad under such con-
ditions as te cause or threaten serious injury to domestic
producers of like or simUar products, the Member sabl be
free ta withdraw the concession, or suspend th. obligation,
in respect of such product, lin whole or in part, or 0
modify the concession to tke extent and -for suchi time s*
may b. necessary tqcpreveht sch injury..:. 60
2. Before any Member shall take a action pursuant ta the
provisions of paragraph I 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
the other Members having a substantial interest as ex-
porters ai the product concerned, an opportunity ta consult
with it in respect of the proposed action. If agreement
among the interested Members with respect ta the pro-
posed action s snot reached, the Member, which proposes ta
take the action shall, nevertheless, be free to do so, and
if succ action is taken the other affected Mombers shall
then bo free, within sixty days after such action is taken,
ta suspend on uixty days' written notice ta the Organiza-
tion the application ta the trade ai the Member taking
such action, ai any ai the obligations or concessions under
this Chapter the suspension af which the Organization does
nat recommend against.
ARTICLE 30
Consultation-Nullifcation or Impairment
Each Member wil l accord sympathetic consideration to
and will afford adequate oportunity for consultation
regarding, such representations as may b. made by any
other Member with respect to the operation ai customs
regulations and formalities, quantitative and exchange
regulations, state-trading operations, sanitary laws and
regulations for the protection of human, animal or plant
life or health, and generally ail matters affecting the opera-
tion of this Chapter. Moreover, if any Member should
consider that any measure adopted by any other Member,
whether or not it conflicts with the term s of this Chapter,
bas the effect of nullifying or impairing any abject
ai this Chapter, such other Member shall give sym-
pathetic consideration to such written representations
or proposals as may be made with a view to effecting a
mutually satisfactory adjustment of the matter. If no
such adjutstment to be effected. either Member shall l be
freeto torfer the master to the Organization, which shall
investigate the master and make apprapritte recrm-
mendations ta the Members concerned. The Organiza-
tion, if it considers the case serious enough to justify
such action. may determine. that the complaining
Member is entitled to suspend the application to the other
Member ai specified obligations or concessions under this
Chapter, and if such obligations or concessions are la
fact suspended, such other Member shall then be free,
within sixty days after such action is taken, to withdraw
from he. Organization on sixty days' written notice to
the Organization.
Section H.-Relations with Non-Members
ARTICLE 31
Contractual Relations with Non-Members-Treatment of
Trade of Non-Members
z. No Member shallbe seek exclusive or preferential
advantages for its trade in the territory of any non-
Member which would result. directly or indirectly, in
discrimination, in that territory against the trade of any
other Member.
2. No Member shallbe a party to any agreement or
other arrangement with any non-Member under which
such non-Member shallbe contractually entitled to any
of the benefits under this Charter.
3. With regard.to countries which. althnugh eligible for
membership. have not become Members or have with-
drawn from the Organization, no Member shall. except
with the concurrence of the Orzanization. apply to the
trade of such -countries the tariff reductions effected by
such Member pursuant to Article 18. This paragraph
shall become effective upon the expiration of one year
from the date on which the Organization is established:
Provided, That this period may be extended by the
Organization for further-periods not to exceed six months
each.
4. Members undertake to review any international
obligations they may have whicb would prevent them
from giving. full effectto paragraphs r and 2 of this
Article and, if necessary for that purpose. to terminate
such obligations either by agreement or in accordance
with their terns.
Section I. .-General Exceptions
. ARTICLE 32
General Ercextions to'. Chapter ly
Nothing in Chapter IV of this Charter shallbe con-
strued, to prevent the adoption or enforcement by any
Member of measures
(a) necessary to protect public morals
(b) necessary to protect human, animal or plant lif e
or health;
(c) relating to fissionable materials:
(d) relating to the traffic in arms, ammunition and
implements of war and to such traffic in other goods
and materials as is carried on for the purpose of
supplying a military establisbment;
(e) in time of war or other emergency in inter-
national relations, relating to the protection of the
essential security interests of a Member;
(f) relating to the importation or exportation of
gold or silver;
(g) necessary to induce compliance with laws or
regulations which are not inconsistent with the pro-
visions of Chapter IV, such as those relating to
customs enforcement, deceptive practices, and tho
protection of patents, trade-marks and copyrights;
(h) relating to prison-made goods;
(() imposed for the protection of national treasures
of artistic, historic or archaeological value;
(j) relating to the conservation of exhaustible natural
resources if such meazwes are taken pursuant to inter-
national agreements or are mode effective in conjunc-
tion with restrictions on domestic production or con
gumption;
(k) undertaken il pursuance of obligations under the
United Nations Charter for' the maintenance or
restoration of international peace and security; or
(1) imposed in accordance with a determination or
recommendation of the Organization formulated under
paragraphs 2, 6 or 7 oa Article 55.
Section J.-Tenritorii Application
ARTICLE 33
Territorial Applicaîion oa Chapter IV-Customs U nions-
Frontier Traffic
s. The provisions of Chapter IV shallapply to the
customs territories of the Member countries. If there an
two or more customs territories under the jurisdiction of
any Member, each such c ustom s teritory shall be con-
sidered as a separate Membercountry for the purpose of
interpreting the provisions. of Chapter IV.
2. The provisions of Chapter IV shall not be construed
to prevent,
(a) advantages accorded by any Member country to
adjacent countries in order to facilitate frontier traffic;
or
(b) the union for'customs purposes of any customs
territory of any Member country and any.. other
customs territory: Provided,. That the duties and other
regulations of commerce imposed by any such -union
in respect of trade with other Member countries shall
not on the whole be higher or more stringent than the
average level of the duties- and regulations of com-
mere applicable in the constituent territories pri or to
the formation of such union.
3. Any Member proposing to enter into any union
described in paragraph 2 ;(b) of this Article shall consult
with the Organization and shall .avilabIe available 'to the'
Organization such iujormation -regarding the proposed
union a, wliU enn.hie the Organization"to make suçb ra-
oorts and rcaommedations 'to* Me es as . itr may
<eem. appropriate..
. For' the'prpuses of ;this Artile'-i',. pFriton
sh1lie understoo'dd'tomëa.a :aY area& twbin c
separate tariffs' other regulationss of commerce are
maintained with respect to a substantial part of the
trade of such area. A union of customs territories for
customs purposes shall be understood to mean the sub-
stitution of a single customs territory for two or more
customs territories, so that all tarifb andd other. re-
strictive regulations of 'commerce as between th'e
territories of members of the union are substantiaUy
eliminated and the same tariffs and other regulitions of
commerce are applied by each of the members.of the
union to the trade of territories nat included ,in- the
union. -
CHAPTER V.-RESTRICTIVE BUSINESSPRACTICES
ARTICAL34
Policy Toward- Restrictie Business' Practices
z. 'Membet agree to-take` appropriate individual and
collective measures to prevent business practices among 6z
commercial enterprises which restrain competition, re-
strict access to markets or foster monopolistic control in
international trade, and which thus have the effect of
frustrating the purpose of the Organization to promote
expansion of production and trade and the maintenance
in al countries of high levels of real income. The term
" commercial enterprises " as used in this Chapter shall
mean all persons and entities conducting business. in-
cluding such entities in which there is a government
interest as well as agencies of government conducting
trade.
2. Without limiting the generality of paragraph s.
Members agree that among the practices which shal:
be presumed, unless shown to the contrary in a specific
case, to have the effect specified in that paragraph are
combinations, agreements or other arrangements which
(a) fix prices or terms or conditions to be observed
in dealing with others in the purchase or sale of any
product or service;
(b) exclude enterprises from any territorial market
or field of business activity, allocate or divide any
territorial market or field of business activity, allocate
customers, or fix sales or purchase quotas, except
as such arrangements are only a part of regular
marketing arrangements between a particular enter-
prise and its distributors with respect to its own pro-
ducts and are not designed to reduce competition
between that enterprise and its competitors:
(c) boycott or discriminate against particular enter-
pnses;
(d) limit production or fix production quotas;
(e) suppress technology or invention, whether
patented or unpatented;
(J) extend the use of rights under patents. trade-
marks or copyrights to matters not properly within
tho scope, or to products or services which are not
the immediate subjects, of the authorized grant.
ARTICAL35
'Procedure With Respect to Complaints
In order to implement Article 34, the Organization
shall:
(s) Receive and consider written complaints from
any Member that a particular practice or group of
practices has the effect described in paragraph I of
Article 34.
(2) Receive and consider similar complaints from
i- persons or business entities or organizations represent-
ing them: Provided, That if any Member bas estab-
- lished procedures for- the filing of complaints by
persons, business entities or organizations under its
jurisdiction, such complaints shall have conformed to
such procedures.
(3) Presecribe minimum information to bo included
in complaints received under paragraph s and 2 of
t:is Article; notify Members of complaints received;
and in its discretion call upon the complainant or any
Member to provide further information relevant to
such complaints.
(4) When it deems that a complaint deserves further
examination, receive pertinent testimony and request
other data, conduct appropriate hearings, review all in-
.,formation and determine whether thet questioned
practices odst 'and whether they have tht effect
"e. !nb. paragrapli s ai Article 34.
(sj) Wen it finds that a particularpractice or group
of practices exists and has the effect, described in para-
grapb s of Article 34, make. recommendations to the
,-Members concerned for appropriate remedial measures,
including but not limited to abrogation and termina-
tion of. agreements and arrangements; dissolutions.
reorganizations, business divestitures, and licensing of
patents. to be implemented in accordance with their
respetive- laws'and procedures.
(6) Request reports from Members as te their actions
in implementing its recommendations.
(7) Prepare and publish reports concerning com-
plaints, findings therein. recommendations, aid actions
taken on such recommendations.
(8) Arrange special consultative conferences among
particular Members relative to particular coplaints,
wb.i deemed: necessary,.,and participate in such con-
ferences..
(g) Assist in arranging consultations, as requested by
Members, as provided in paragraph l of Article 37, and
participate in such consultations.
ARTICLE 36
Studios and Conferences Relating to Restrictive Business
Practices
s. The Organiz ition is authorized to request information
from Members and to conduct studies, father on its own
initiative or at the request of any Member, the United
Nations or sr-ecialized agency of the United Nations.
relating to business practices which may restrain com -ti
tion, restrict access to markets or foster monopolistic
control in international trade; or relating to international
conventions or national laws and procedures designed to
carry out the objectives of Article 34 or to those which
may affect such objectives, such as conventions, laws or
procedures concerning incorporation, company registration,
investments, securities, prices, markets, fair trade practices,
trade-marks, copyrights, patents and the exchange and
developments of technology; and, where appropriate, to
make recommendation for action by tht Members.
2;. The Organization is authorized to call general con-
sultative conferences of Members and to carry out such
additional functions, within the scope of this Chapter, as
may from time to time be assigned to it.
ARTICL. 37
Oflieaions of Members
in order to imnplement tht preceding Articles in this
Chapter, each Member undertakes to:
(I) Transmit to the Organiation, upon its request
and as promptly as possible, information caIle4 for by
the Organization pursuant to paragraph 3 of Article 35
and such other information as the Member may deem
pertinent. To this en1, each Member shall carry on such
investigations within its own judiseietion as may b.
necessary for tht collection and compilation of such
information.
(2) Furnisb sucli information and data as may be
necessary in accordance with paragraph 4. of Article 35.
(3) Consult, Upon the request of the Organization in
accordance with paragraphs 8 of Article 5, with respect
to activities which are tht subject of complain;tsiled
with the Organisation. ;.
(4) Notify the Organization of consultations to be held
with another Member for tht purpose of dealing with
particular restrictive business practices, in order that
the Oarganization may assist in arranging such consulta-
tions and participate in them, pursuant to paragraph g
of Article 35.
(S) Take action, after recommendation by the
Organisation, to terminate and prevent the recurrence
ofai a particular restrictive business practice or group of
practices which hasbeen the fou nd Organization
to havetheeffct describe inpargrph I of Article 34..
These measures will be taken in accordance with the
particular system of law` and economic organisation of
tht Member concerned.;
(6) Report as requested by the Organisation under
A paragraph 6 of Article 35 upon any action taken i-a
dependently or in concert with other Members in
implementing the recommendations made by: thé
Organisation pursuant to paragraph S of -Article 35.
(7) Furnish, to tht extent feasibl,. information re-
quested by the Organization in its conduct oi studies
authorized by paragraph s of Article 36.-
(8) Participate in conferences sponsored by the
Organization in furtherance of tht purposes oa this.
Chapter.
â.TcLK 38
Supplementasy Enforcement Arrangements: *.. .
-s. Members may, by mutual accord, cooperate with each
other in prohibitive, preventive or other measures for tht
purpose of making more effective any remedial order,
issued by a duly authorized agency oa.any- Member in
furtherance of tht objectives of this Chapter. ; *
'2. Members participating in such ca-operatve actions
shall notify tht Organization. 62
ARTICLE 39
Continued Effectiveness of Domestic Measures Agaisst
Restrictive Business Pactices
Any act or failure to act on the part of the Organiza-
tion shall not preclude any Member from enforcing any
national statute or decree directed toward preventing
monopoly or restraint of trade.
ARTICLE 40
Exceptions to Provisions of Chapter V
s. The undertakings expressed in Chapter V shal not
àpply to.
(a) inter-goveramental commo. y agreements meut-
* ing the requirements of Chapter vI;
(b) the international agreements excepted in
Article 49; or
(c) agreements or understandings concerning railway
transportation, aviation, shipping and telecommunica-
tions services.
2.- Notwithstanding the foregoing, the Organigation may
la its discretion make recommendations to Members and
to appropriate international agencies concerning any
features of the agreements referred to in (b) and (c) of
paragraph s which may interfere with the achievement
of the purposes of the Organization.
CHAPTER VI.-INTER-GOVERNMENTAL COMMODITY
ARRtNIExxLNTs
ARTICLE 4z
Gentral Statement Regarding Inter-govermmental
Commodity Arrangements.
The Members recognize that in the relationsbip between
production and consumption of some primary commodities
the.- may arise special dificulties different in character
from those which generally exist in the case of manufac-
tured goods and that these special difficulties, if serious,
may have such widespread repercussions as to jeopardise
the effectuation of the general policy of economic
expansion.
ARTICLE 42
Special Commodity Studies
x. Members' substantially interested in the production,
consumption or trade of a particular commodity shallbe
entitled, if they consider that special difficulties exist or
are expected to arise regarding a commodity, to ask that
a study of that commodity be made, and the Organization,
if it finds that these representations are well founded, shall
'invite the Members principally interested in the produc-
tior, consumption or trade of that commodity, and may
invite non-Members having a similar interest, to appoint
representatives to a Study Group to make a study of the
commodity.
2. The Study Group shall, in the light of an investiga-
tion of the root causes of the problem, promptly report
its ndtings regarding -the production, consumption and
trade situation for the'commodity. If the Study Group
£inds that special difficulties exist or are expected to anse,
it shall make recommendations to the Organization as to
how best to deal with sùcb difficulties.
ARTIcLE 43
Commodity Conf erences
If the Organization concludes that measures not invol-
ving thq regulation of production, trade or prices are
unikely to operate quickly enough in solving the problem,
It may convene au inter-govermental conference for the
purpose. of naming an inter-'govenmental commodity
agreement for the commodity concerned, in conformity
with the principles set forth ila Article 45
ARTICLE 44
Objectives of Inter-governmental Commodity Agreements
'The Members agree that the regulation of production,
trade or prices' through 'inter-governmental cor.'aodity
agreements' is justified in the circumstances' stated in
Article 3'te' aciievé the following objectives:
(r) To enable countries to find solutions to special
commodity difficulties without resorting to unilateral
cation that.tends -to shiftthe burden of. their problem
te> teg cou tries. '; :
(2) To prevent or alleviate the serious economic
problems which may arise when, owing to the difficulties
of finding alternative employment, production adjust-
ments cannot bc effected by the freo play of market
Fiorccs as rapidly as the circumstances require.
(3) To provide, during a transitional period, a frame-
work for the development and consideration of measures
which will have as their purpose economic adjustments
designed to promote the expansion of consumption or
a shift of resources and manpower out of over expanded
industries into new and 'productive occupations.
ARTICLE 45
Prmncses Governing the Institution of Irtegovement4l
Commodity Agreements
Members undertake to adhere to the following principles
governing the institution of intergovernsental commodity
agreesaçts involving the regulation of production. trade
ar pric:
(z) ,Any Member having a substantial interest in the
production, consumption or trade of any commodity for
which an intergovernmental commodity agreement is
proposed shal be entitled to participate in the considera-
tion of the proposed agreement. The Organization may'
invite the participation of non-Member countries having
a similar interest.
(z) Members agree not to enter into intergovernmental
.commodity agreements involving the regulation of pro-
duction, trade or prices. except after
(a) investigation by the Study Group of the root
causes of the problem which gave riso to tth proposal;
(b) determination. usrder procedures established by
the Organization in accordance with paragraph 6 of
Article 55, either
(z) that a burdensome surplus of the product con-
cerned - has developed or is developing in inter-
national trade and such burdensome surplus would,
in the absence of specific governmental action to
prevent it, be accompanied by widespread disixes
to small producers accounting for a substantial
portion of the total output and that these conditions
cannot be corrected by the normal play of competi-
tive forces because, in the case of i product con-
cerncd, a substantial reduction of pricu leads nether
to a significant increase in consucnption uor to a
significant decrease in production; or
(2) that widespread unemployment. unrelated to
general business conditions, has developed or. is
developing in respect of the industry-concerned, and
that suci unemploymentL: nmot be corrected by the
normal play of competit. forcess rapidly enough to
prevent widespread and undue hardship to workers
Mause, in the case of .be industry concerned, (i)
a substantial reduction of price does not lead to a
significant increase in consumption but leads, 'in-
stead, to the reduction of employment, and (i) the.
resulting unemployment cannot boe rreedied by
normal reemployment processes;
(c) formulation and adoption by Members of a pro-
gram of economic`adjustment believed to be adequate
to insure Substantial progress toward solution of the
prolilem ithin the rime limit of the'agreement.
(3) Intergovernmental commodity agreements inv.olv-
ing the regulation. of production, trade or prices in aspect
of other than primay products shah not bl resortod to
unless the Organization finds'that. exceptioial circum-
stances' justify such action. Such agreements shall be
subject to the principles set forth'in this Chapter 'and,
in addition, to any other requirements which the Orgaii-
zation may estabilsh.
ARTICLE 4
Pràtdples and Requirements of Intergovemmetod Com-
modity Ageenet, U .
Members undertake te adhere to'ie foflowing principles
and- requirements governing the operation cf intergovemq-
mental commodity agreements: -
(z) Such agreemnt's dabll be open initiaUly to participa-.
tion..by any Member on terms no lesifavorable'tho
tfiose accorded to any other country party thereto and
thereafter upon such terms as may be approved by the
Organi-ation.
(s) Such agreements shal piovide for adequate repre-
sentation of-Menmbers substantially :interested. ian'theo
importation or consumption.of the commodity . - 63
(3) In such agreements countries which are largely
dependent for consumption on imports of the commodity
involved shaLI, ln determinations made relating to the
regulation of prices, trade, stocks, production or other
substantive matters, have together a voice equal to that
of those largely interested in obtaining export markets
for the product.
(4) In order to minimize the need for production re-
striction such agreements shall provide, where practice.
able, for measures designed to expand world consump-
tion of the conmodity, consideration being given to the
possible effect onD competing products.
(S) Such agreements sha1, with due regard to tho
transitional need for preventing serious economic and
social dislocation, maake approprate provision to afford
increasing opportunities for satisfying world requirements
from sources from which such requirements can be sup-
plied most effoetiveiy.
(6) Under such agreements the treatment with respect
to the imports or export of the commodity acc6*ded by
anypartieipating country to any Member sixl 'not,
ulsagreedby the Organization. :be less
favorable than that accosted o any other country.
(7) Such agreements shall be designed to assure the
availability of supplies adequate at ail times for world
consumption requirements at reasonable prices.
(8) Such agreements shall contain provision for
administration by Commodity Councils set up in
accordance with the provisions of Article 47, except
that in the case of existing agreements this require-
ment may be waived by the Organization.
'(g) Such agreements shall not remain initially in defect
for more than five years. The renewal of an agree-
ment. shall be subject to the principles governing new
agreements set forth in Article .45. At the end of each
ive years of the continuancee of such an agreement
te Organisation shall prepare and publish a review
of the operation of the agreement in. the light of the
principles set forth in Article 45. If the operation is
found to have failed substantially ta conform to these
principles,. and particularly if it is found not to have
rnade substantial progress toward a solution of the
underlying commodity problem, the Organization shall
provide for termination of the agreement or for re-
vision believed adequate to make it effective for that
purpose.
(xo) Members agree that full publicity shall be given
to any inter-governmental commodity agreement pro-
posed or concluded, to the statements of considerations
and objectives advanced by the proposing Members,
to the operation of the agreement, and to the nature
aud development of measures adopted to correct the
underlying situation which gave rise to the agreement.
ARTICLE 47
Commodity Counc*s
z. A Commodity Council shall be established under each
inter-governmental commodity agreement involving the
regulation of production, trade or prices of that commo-
dity. . - . ..-
z.- The voting membership of each Commodity Council
aa consist of the representatives of the countries par-
ticipating: in the inter-governmental commodity agre.-
ment concerned, and voting power shal be determined
in such'a way that the participating countries which are
largely dependent for consumption on import of the com-
modity involved sball, in' determztnations'.made relating
to the regulation of prices, .trade, stocks, production or
other- substantive matters, have together a voice equal to
.that of those. largely ..interested in obtaining export
markets for the product. -
E. ah Commodity. Council sha,. subject to thi
approval of the' Commodity Commission, adopt such
rules of procedure and regulations regarding its activities
as it'mnay deem appropriate..
4. Each Commodity Council shal have a non-voting
Chairman provided by theCommodity Commission.
5 Each Commodity Council slmake periodic reports to
the CommodityCommission as to the operation of the inter-
governmental.commodity agreement which it administers,
-and shall makre such other special reports as the Com-
mission. may specify or as the Council considers to bo of
valus te the Commission., . :
.6. The Secietarat of each Commodity Council shall be'
provided by the Commodity Commission from tie Secre.
taiat of the Organi2ation.
ARTIdJZ48
Additional Obligations of Members in Respect o Inter-
governmental Commodity Agreements
Members uxriertake to transmit to the Organization the
full text of each intergovernmental commodity agree-
ment in which they are participating at the time-of the
coming into force cf their obligations under thio Charter.
MIemabers niso agreo ta transit to the Organization appro-
priate information regarding the formulation; provisions
snd operation cf such agreements. Members agree ta
conform w;th the decisions made by the Conference, upon
theorecommendation of the Commodity Commission, regard-
ing their continued participation in any sucr intergovern-
mental commodity agreement which, aiter review.by the
Organization, shall have been found to be inconsistent with
the principles of this Charter.
ARTICLE 49
Exceptions to Provisions Relating to Intergovernmental
Commodity Agreements
z. The provisions of Chapter VI are not designed to
cover those provisions of iatergovernmental commodity
agreements which appropriately relate to the protection.
of public morals; the protection of human, animal or plant:
life or health; the conserve in of reserves of exhaustible
natural resources; the equitable distribution of coramodi-
ties in short supply; or ia general to intergovernmental
commodity agreements not regulating production, trade
or prices: Provided, That such agreements are not used
to accomplish. results inconsistent with the objectives of
Chapter V or Chapter VI. Members agree not to partici-
pate in such agreements if they involve the regulation of
production, trade or prices unless tiey are authorized or
provided for by a multilateral convention subscribed to by
a majority of the nation . fected, or unless operated under.
the Oranisation,
2. None of the foregoing provisions ot Uiapter VI
is to be interpreted as applying to agreements relating
to fissionable materials; to the trafc in arma, ammunition
and implements of war and to such traffic in other goods
and materials as is carried on for tie purpose of supply-
ing a military establishment; or, in time of war or other
emergency in international relations, to the protection of
the essential security interests of a Momber.
CHAPTEi VII.-ORGsAiZArON
Section A.-Functions.
ARTICLE 50
Functions of the Organirati . . .. ..
It sall be the function of the Organization:
(z) To collect, analyze and publish information relat-
ing to international trade, including information relating
to commercial policy, business practices and commodity
problems, . and to industrial: and general' economic
development. - -
(z) To provide technical assistance and advice to
Members and to other international organiations, in-.
cluding such assistance and advice us may be appropriate
in connection with specific projectN of industrialisatio
or other economic development.
.() To consult rith, snd to make recommendations
sudn reports to, Membera -regarding any matter relating
ta tlte purposes cf tho Organisation or tie operation cf
this Charter, lacludlag the followving:-.: --
(a) Recommendations or déterm ationsridating ta
the discharge of .the responsibilitiés of,.ho Orianz-
* tion under: C4apter IV . - :--
(b>:Recommendations as to measures for . imple-
menting the objectives with regard to restrictive .busi-
ness practices, set forthin Chapter, V.
(c) Recommendations regarding the application te
commodity arrangements :under consideration by
*Member of the principles governing commodity
arrangements set forth in Ciapter VI; and rt»in-
mendations initiating proposals. for new commiodity
arrangements, or proposing sucb modifications, in-
cluding termination, cf commodity arrangements
aL-eady concluded, as may ho deemed appràpriateo
under tLte commodity principles .or: in te general in
terest. 64
(d) Recommendations as to measures for imple.
menting the objectives of the Orginization in
encouraging and asusting the industrial and general
economic development cf Mombers countries.
(4) To consult with Mombers regarding disputes
growing out of the provisions of this Charter and to
provide a mcisanis for the setUlement of sicii disputes.
(S) To make recommendations for international agree-
mcats designed ta improve the basis of trade and to
assure just and equitalile treatment for the enterprises,
skills, capital, arts and technology brought from one
country to another, including agreements on the treat-
ment of foreign nationals and enterprises, on th.
treatment of commercial travellers, on commercial
arbitration, and on the avoidance of double taxation.
(6) Te cooperate with the United Nations and witi
other pecialzedd international oraations in the
attainment of the economic and social objectives of the
United Nations and in the maintenance or restoration
df international peace and security.
(7) GeneraUy te adviz. and to make recommendations
to Members and other international organizations, and
to perform any other function appropriate to the pur-
poses of the Organization.
.Section B.-Structure
ARTICLE 5r
Structure of the .Organization
T.he Organization shall have as its principal organs: a
Conference, an. Executive Board, a Commission on
Commercial Policy, a Commission on Business Practices,
a Commodity Commission and a Secretariat.
Section C.-The Conftrence
ARTICLE 52
Conference-lembership
-r. The Conference shabl consist of thei representatives
of tho Mcmbers of the Organization.
2. Each Member ihall have one representative and may
appoint alternates and advisers to its representative on
the Conference.
3. No representative On the Conference may represent
more than one Member.
ARTICLE 53
Ccnferenc-oting -
z. Eacli Member shall have one vote in .the Conference.
2. EXcept as may b. otherwise provided for in tuIs
Charter, decisions of the Confererce shall be taken by a
majority of the. Members present and voting.
ARTICLE 54.
Confsrence-SessionS. Procedure and Officers.
r. The Conference shal! meet in regular annual sessions
and in such special' sessions as occasion may require.
Special sessions shall b. convoked by the Director General
of the Organization at the request cf th. Executive Board
or of a majorityaof the Members.
2. The Conference shall adopt its own rules of procedure.
It shall annually dlect its President- and other officers.
ARTICLE 55
Conference-Powes antd Duties
z. T.he Coanference shall have Sinal authority tu deteraine
the. policies of th. Organization. It may raake recom-
mondations to Members of the Organization and te other
international organizations r.gardg any matter pertain-
ing ta the purposes of the Orgaization.
2. e. Conference my, by a vote of taro thirds cf its
Members, determine critein and set uF procedures, for
waiving, in exceptional circumstances, obaigations-of Mesu-
bers undertaken pursuant to Chapter rt of this Charter.
3; The Conference may delegate to the Executive Board
authority to exercise or perfonn any of the powers and
duties of the- Conference, except such specific powers and
duties as are expressly conferred or impose upon th.
Conference under the provisions of Chaptess II ai VII.
'4. The Confereace shah! pprove the budget of the
Organizaffon-andshah apportion tite expenses of the Organ.
izabioz among the. Members.
5. The Conference shall eloct t!; members of tihe
Executive Board, and on the recommendation of the
Executive Board, shall appoint the Director.General of
the Organization.
6. The Conference shall establish procedures for making
tho determinations provided for in Article 25 and in para.
graph 2(b) of Article 45 whereby any such determinations
shal! bc made through the Organization by consultation
amonq thoe Members having an important interest in the
trade m the product coucernod.
7. Thi Conference shal establish procedures for making
tho determinations and recommendatipas provided for in
paragraph 3(c) of Article 2o; paragraph 2 of Article 29; and
Article 3o.
8. Tie Conference may, by two-thirds majority of the
votes cast, adopt the standards, nomenclature, terms and
forms described in paragraph 7 of Article i6.
9. The Conference shall determine the site ^f the Organ.
itation "and shaUl establish such branch offices as it may
considâ'desirable.
ARTICLE 56
Intenm Tariff ComMittge
z. There shaUl be an Interim Tariff Commitf-e which
shall act temporarily on behalf of th. Organization in the
making of recommendations and determinations pursuant
to paragraph 3 of Article x8.
2. The Committeo shah consist originally of those Mom-
bers of the Organ0zation which sball have made effective
the General Agreement on Tarifs and Trade dated . . .
..... 1 194 . * Any other Member of the Oganizatinn
shaU be entitled to b, a member of the Committee when, in
the judgment of the Committe., that MemberbshlU have
completed negotiations pursuant to pragraph x of Article
r8 comparable in scopos or .fect te those completed by the
original members cf the Committoe. When the number
cf Members cf the Organization which are members qf
the Committee siall constitute two tiiirds of the, total
number of Members of the Organimation, the Committee.
shall terminate and its functions shall b. transferred to
the Conference.
3. Each member of the.Committee'shall have one vote.
4. Decisions of the Committee shall be taken by a
majority of the members present and voting..
T. Th. Committee shall adopt its own rulesof procedure,
including provision for the election of its oficers.
Section D.-The Executive Board
ARTICLE. 57
Executive Board-Membership
r. The Executive Board shall consist of fifteen Membero
of the Organization elected by the Conference. . -
2. Subject. to the provisions cf paragraph 3 of this
Article, one third of the membersip of the Executive
Board abl be elected each year for a tern of thrve years;
A retiring member sha,, b. eligible for imnediat. re-
election.
3. At the first election, fifteen members of the Executive
Board shall be chosen. TIbe telm c office of fivo members
shal expire at th. end of one year; and of five bther memn.
bers at the end of two years, in accordance'w-ith aminge
ments mad. by the Conference.
4. Eraci member of the Executive Board shall have one
representative and may appoint alternates and advi5eru
te its representative.
. ,
58 , 2utIcL
exocutiva Board-Voting --
s. Eah member of tie Execmtive Board shall bave one
vote. -
2. Decisions of the Executive Board shal b smade by
a majority of the members present and voting.-
This Agreement -f«rs te the proposed angement for the
concerted reduction-ao tarifs and trude briers among the
countries invited b the United States to enter into negotiations
for this purpose. It s contemplated that the agreement would
contain schedule of tariff concesiionsa-nd'would incorporate
certain of the- provisions of 'Chapter IV of the Charter
(e.g.'tie'provislons'relating to most-favored;nation treatment,
to national treatment on interrl taxes an'd regulations, to
quantitative restrictions, ete.). 65
ARTICAL 59
Executive Board-Sessions, Procedure and Officers
s. Tho Executive Board shall meet as required ln
accordance wlth its rules, which shall include provision for
convening on the request of a majority of its members.
2. The Executive Board shabl adopt its own rules of
procedure. It shall annually elect its Chairman and other
oficers.
- . ARTICLE 60
Exceutivé Board-Powers and Duties
s. The Executive Board shall be responsible for the
execution of tho policies of the Organization and shall
exercise the powers delegated to it by the Conference.
It shaU review the activities cf the Commissions provided
for in this Charter, and shall take such action upon their
recommendations as it may deem appropriate. It shall
provide adequate machinery to review the work of the
Organization as it relates to industrialization anq general
economic development.
2. The Executive 'Board may make recommendations
to tlie Conference, to Members of the Organization, or tu
other international organizations, on any subject falling
within the scope cf the Organization, and shall approve
the preliminary agenda of the Conference.
3. The Executive Board shah recommend to the Confor-
ence the admission of new Menrbers of the Organization.
4. The Executive Board may refer to the Commissions
such questions as it may; deem appropriate.
: Section E-The Cimnmissions
ARTICAL 61
Establishment of Commissions
The Conference shall establish a Commission on Com-
mercial Policy, -a Commission of Business Practices, and
a Commodity Commission, and may establish sucb other
commissions as may be required. These Commissions
shall be responsible to the Executive Board.
ARTICLE 62
Composition and Procedure cf Commissions
x. The Commissions shall be composed of persons
appointed by the Executive Board who are qualified by
training or experience to carry out the functions of the
Commissions i accordance with the purposes of the
Organisation.
2. Mie number of members of each Commission and the
conditions of office of the members of each Commission
shall be determined in accordance wite regulations pro-
scribed by the Conference.
".Each Commission shall lect its Chairman and adopt t
its own rules of prnxedure, subject to approval hythe
Executive Bsard.
4. The Chairmsan of tlee Commissions shall ho ontstled te
participate, without tee right cf vote, la tee deliberations
cf tee Excecutive Board and cf tee Conference.
5. As set forth more fully in Article 71, the Organization
may malce arrangements for representatives cf other public
international organizations having a special interest in
tee activities of any of the Commissions to participate in
tee work of such Commi;csions, pursuant to agreements
with these organizations.
ARTICAL63
General Functions of Commissiows
The Commissions shal1 have the functions set forth
in Articles 64, 65 and 66, and shal perform sucb other
Innctions as the Conference or the Executive Board may
assiga to thom, including such functions as the Executive
Board may- deem«appropriate -in connection wite the
settlement of disputes.
.ARTICAL 64
Functiomns cf Commissio on Commercial Policy
The Commissionr Comt Po'icy shall have Comm
oflowing fonactions: d c
(s) To islv gate and tg advise the Executive Board
regarding the operation of treaties, agreements, prac-
tices and policies aflécting international trade.
:(2) To investigate and to advise the Executive Board
regarding the economic `aspectsof specific proposals
involving tho exorcise by tho Organization of the func-
tions described in paragraph 3 ,a) of Article Se and
paragraph 2 of Article SS.
(3) To investigate and to advise tho Executive Board
regarding tho economic aspects of proposed customs
unions.
(4) Te develop and to recommend to the Executive
Board' prograsis designed te further the objectives cf
the Organization in the geners field of commercial
policy, including cooperative projects of a technical
rsature in the fidd cf commercial policy.
ARTICLE 65
Functions of Commission on Business Practices
The Commission on Business Practices shall have the
following functions:
(s) To receive and consider written complaints ceon-
cerning restrictive business practices in international
trade, as provided in paragraphs s and 2 of Article 35;
to prescribe and calls for information relative to such
complaints and to notify Members of complaints
received, in accordance with paragraph 3 of Article 35;
to request data, conduct heanngs and mako determina-
tions in accordance with paragraph 4 of Article 35 and
on thé basis thereof to refer to the Executive Board
its recommendations for appropriate remedial measures,
pursuant to paragraph S Of Article 35; and to request
reports from Members, and to prepare reports for pub-
lication by the Executive Board, ain acordance with
paragraphs 6 and 7 of Article 35-
(2) To arrange special consultative conferences between
particular Members and to assist in arranging consulta-
tions as requested by Members relative to particular
complaints, as provided in paragraphs 8 and 9 of
Article 35, and to make appropriate reports or recom-
mendations to the Executive Board with reference to
the results thereof.
(3) To conduct studies relating te business practices
which restrain competition., restrict access to markets
or foster monopolistic control in international trade, or
relating to international conventions or national laws
and procedures designed. to cury out the objectives of,
Article 34 or to those which may affect such 'objectives,
pursuant to paragraph s of Article 36; and to make
recommendations, when appropriate, to the Executive
Board for action by Members.
(4) To advise the Executive Board as to information,:
data, and other materials te be obtained from Members
or other sources, required in the discharge cf thc ties,
and responsibilities of the Commission.
(5) To. facilitate intergovernrmentaI arrangements for
the international exchange, on a non-discrlminatory
basis, of technological information not involving national
security.
ARTICAL66
Functions of Commodity Commission
The Commodity Commission shall have. the fIolowin'g
functions:
(s) To investigate commodity problem- and arrange-
monts proposed for solving them.
(2) To recommend to the Executive Board appse
priate courses of action relating to commodity problems,
including recommendations for the establishment of':
Study Groupe fer particular commodities. Such Study
Group shall be established, pursuant to paragraph" z -
cf Article 42, by the Executive Board, upon the recom-
mendation cf the Commodity Commission, fer fth
purpose of investigating problems with respect to par-
ticular commodities. The Study Grops daclude,
in addition te representatives cf interested counfes,.
one or more memhessof.the Commodity Commision or
oteerpcaons designated by thepComission.:
(3) To advise the Executive Board whether a particu-
lar commodity is -in burdensome surplus; suhjoct eto.
such procedures as rnay be established under paragraph
6 of Article-. 5-;
(4) To recommend to the Executive Board whether
an ntergoverrmental conference should be convened
purssant to Artile` 43.
(S)To. designate members cf tho Commission, or.
others. te-partidipate la an advisory c apaeity- in tho
-formulation cf intergoverumeatal commodity agre.-:
ments.-: (6) To advise the Executivc-Board whether or not
intergovernmental commodity agreement under con-
sideration by Members conformn to tha principles set
forth in Chapter VI and to make recommendations to
the Executive Board thereon.
(7) To approve the rules of procedure governing the
activities of each Caommodity Council.
(8) To Jesignate the Chairman and provide the Sec-
retary for any Commodity Council established to
administer an instergovernmental commodity agreement.
(g) To receive reports from Cominodity Councils to
maintain continuous review of the operation oi inter-
governmental commodity agreements in the light of the
terms of the agreements, the commodity principles in
Chapter VI of this Charter, and the general welfare;
to investigate such matters in tnis conectian as it may
deem appropriate; and to make recommendations to tnie
Executive Board with. regard thereto.
Section F-The Secretariat
ARTICLE 67
Composition of Sccretariat
The Secretariat shall consist of a Director General, there
*.--or more Deputy Directors General, and such staff as =my
be required.
ARTICLE 68
Director General
i. The Director General shall be appointed by the Con-
ference upon the recommendation of tae Executive Board.
His powers, duties, terms and conditions of office shall
be in accordance with regulations approved by tha Con-
ference. Re shall be eligible for reappointment. He shail
be tha chief administrative officer of the Organization.
subject to the general supervision of the Executive Board.
z. The Director General or a Deputy Director General
designated by hiun shall participate, without tha right to
vote, in all meetings of the Conference and of the Execu-
tive Board. TMe Director General shall have authority
to inititè proposals for the consideration ai any organ
of tce Oiganization. He shall make an annua; report to
tac Conference and to the Executive Board on tae work
of tha Organization and shall prepare the annual budget
for submission to the Conference.
ARTICLE 69
Deputy Directors General
s. Deputy Directors General shall be appointed by tha
Director General in accordance with regulations approved
by the Conference. They shall be eligible for reappoint-
ment.
2. Deputy Directors General shall be ex officio
members, without tae right to vote, respectively of the
Commission on Commercial Policy, tie Commission on
Business Practices, and the Commodity Commission,
and shall, respectively, have charge of the work of the
Secretariat related to the activities of these Commissions.
ARTCLE70
Secretariat Staff
z. The Director General shall appoint the staff of the
Secretariat and fix its duties and terms and conditions
of service. The paramount consideration in the employ-
ment iof tha staff and in the determination of its con-
ditions of service shall be the necessity of securing the
highest standards of efficiency, competence and integrity.
2. The conditions. of service, such as the provisions
governing, qualifcations, salary.- tenure and retirement
of members of tae staff of the Secretariat shah! be fixed,
so far as practicable, in conformity with those for
members of the SecretaTiat of. the United Nitions and
of other specialized agencies which may be brought into
relationship with the United `Nations, as provided. in
Article 57 of the Charter of the. United Nations.
- . S . Section G.-MiscellneousProvisions
ARTICLE 71
Relations With Other Organizations
z. The rgistion shall be-brought into relationship
with the Unitod Nations, as soon as practicable. as one
of tha spclized agencies referred to in Article. 57 cf
the Charter of the United Nations. This relationship
66
shall be effected through an agreement with the United
Nations under Article 63 of the Charter of the United
Nations, which agreement shall be concluded by the
Director General and approved by the Conference. Trhe
agreement shall provide for ellective cooperation between
the two organizations ia the pursuit oi their common
purposes, and at the same time shall recognize the com-
petence of the Organization within its jurisdiction as
declined in this ChartIr. Notwithstanding tho provisions
of Article 75, any changes in this Charter required under
the agreement which do not involve new obligations by
Members shall be effective on approval of the agreement
by the Conference.
2. The Organization shall cooperate with other inter-
national organizations whose interests and activities are
related to its purposes, with particular reLerence to the
importance oa food and agriculture in relation to the
subjects dealt with in Chapter VI. Effective working
relationship 'with such organizations, which may include
the establishment of joint committees or provisions for
reciprocal representation at meetings, or such other
measures as may be necessary to assure effective co-
operation, nay be established by the Director General.
Formal arrangements for cooperation with such organiza-
tions may be entered into by the Executive Board.
3. The Organization may make suitable arrangements
for consultation and cooperation with nongovernmental
organizations concerned with matters within its com-
petence, and may invite them to undertake 'specific
tasks.
4. Whenever the Conference of this Organization and
the competent authorities of any other international
organization whose purposes and functions lie within the
competence of this Organization, deem it desirable to
effect a transfer of its resources and functions to this
Organization, to incorporate it into this Organization, or
to bring it under the supervision or authority of this
Organization,' the Director General,. subject to the
approval of the Conference, may enter into mutually
acceptable arrangements for tais purpose. This Organi-
zation may . acquire such resources and assume such
functions of, or incorporate or exercise such control over,
the other organization as may be provided by any con-
vention or agreement appropriate to tha purpose. In
accordance with their respective constitutional pro-
cedures the Members shall take such steps as the Con-
ference may determine to integrate such other inter-
national organizations into the structure of this
Organization.
ARTICAL 72
Intenationl Respoibilities of Persosnel of Organisation
The responsibilities of the Members of the Com-
missions provided for in Article 6r of this Charter, of
the Director General, of the Deputy Directors General
and of the staff shall be exclusively international in'
character. These persons may be appointed without
regard to their- nationaUity.' In tha discharge' of 'their
duties they shall not seek or receive instructions from
any government or from any authority -external to the
Organisation. They shall rcErain irom any action which
might prejudice their position as international officials .
Each Member oi the Organisation undertakes the repect
tac international character of the responsibilities of these
persons. and not to seek to influence them in the dis-
charge of their duties.
ARTICLE 73
Legal Capacity of. Organization
The Organization shall enjoy a m.c territory ai'each
of its Members' such legal capacity as may be necessary
£or the exercise of its fuanctions and. the fulfillment,o£ its
purposes.
ARTICLE 74
Prnilaeges and Immunities of Organisation
-. The Organization shail enjoy in the territory of eah
of its Memnbers snuch privileges and immunities as arc
necessary fôr. the fulfilment of its purposes.-
2. Representatives of the Members cif the: Oiganization
and its officials shal im;larly enjoy such privileges and
immunities as are necesary for the independent exercise
of their functions in connection, with the Organiation. 3. The Conference may make recommendations with a
view to determining the details of the application of para-
graphs x and 2 of this Article and may propose conven-
tions to the Members for this purpose.
ARTICLE 75
Amendments to Charter
z. Amendments to this Charter shall become effective
upon receiving the approval of the Conference by a vote
of a two-thirds majority of its Members: Provided, That
those amendments which involve fundamental alterations
in the objectives of the Organization or new obligations
by the Members shall take effect upon acceptance on the
part of two thirds of the Members for each Member accept-
irg the amendment and thereafter for each remaining
Member on acceptance by it.
2. The Conference shall, by a two-thirds majority of the
Members, adopt rules of procedure for carrying out the
provisions of this Article.
ARTICLE 76 -
Interpretation and Settlement of Legal Questions
s. The English and French texts of this Charter shal be
regarded as equally authoritative.
2. Any question or difference concerning the interpreta-
tion of this Charter shall be referred to the Executive
Board for a ruling thereon. The Executive Board may
require a preliminary report from any of the Commissions
in such cases as it deems appropriate. Any ruling of
the Executive board shaU, upon the request of any mem-
ber directly affected or, if the ruling is of general applica-
tion, upon the request of any Member, be referred to the
Conference. Any justiciable issue arising out of a ruling
of the Conference with respect to the interpretation of sub-
paragraphs (c) Id), (o) or (k) of Article 32 or of Para-
graph 2 of Article 49 may be submitted by any Party to
the dispute to the International Court of Justice. and any
justiciable issue arising out of any other ruling of the
Conference may, if the Conference consents. be submitted
by any Party to the dispute to the International Court
of Justice. The Members accept the jurisdiction of the
Court in respect of any dispute submitted to the Court
under tuis Article.
3. The Organisation may, with the authorization of the
General Assembly of the United Nations, refer any ques-
tion concerning the interpretation of this Charter to the
International Court of Justice with a request for an
advisory opinion thereon.
4. The iDirector General, or his representative, may
appear before the Court on behalf of the Organization
in connection with any proceeding before that Court.
ARTICLE 77
Contributions of Members
acih Member undertakes to contribute promptly to the
Organization its share of the Organization's expenses ac
apportioned by the Conference. The right of a Member to
vote in the Conference shalt automatically be suspended
if such Member £ails for two successive year to meet its
financial obligations to the Organization: Provided. That
the Conference may, in exceptional circumstances, waive
such suspension.
ARTICLE 78
Entry Into Force.
i. The original of this Charter. as set forth in the Final
Act of the United Nations Conference on Trade and Em-
ployment, shall be deposited with the Secretary General
of the United Nations, who will furnish certified copies
thereof to all interested governments.
2. Each government accepting this Charter shall deposit
an instrument of acceptance with the Socretary Generad of
the United Nations, who will inform ail governments repre-
sented at the United Nations Conference on Trade and
Employment and ail Members of the United Nations of
the date of deposit of each instrument of acceptance and
of the date on which this Charter enters into force under
paragraph 3 of this Article.
3. This Charter shail enter into force on the sixtietb
day following the day on which the number of govern-
ments represented at the United Nations Conference on
Trade and Employment which have deposited acceptances
pursuant to paragraph 2 of this Article shall equal twenty,
and the acceptance of each other accepting government
shall take effect on the sixtieth day following the day on
which the instrument of such acceptance is depo-ited: Pro-
vided, That if this Charter shaU not have entered into
force by December 3I, 194 , any of the governments
which have made effective the General Agreement on
Tariffs and Trade dated , s94 ,* together
with any other governments which have already deposited
their acceptances, may agree to bring this Charter into
force among themselves in accordance with arrangemente
which they may agree upon.
4. Each government accepting this Charter does so in
respect of all territory in which it bas authority to make
the provisions of this Charter effective.
ARTICLE 79
Withdrawal and Termination
I. Any Member of the Organization may give notice
of withdrawal from the Organization at any time after
the expiration of five years from the date of the entry into
*force of this Charter under the provisions of Article 78
by wi' ten notification addressed to the Secretary General
of the United Nations, who will immediately inform all
other Members of the Organization.
2. The withdrawal shall take effect one year from the
date of the receipt of the notification by the Secretary
General: Provided, Tbat the notification may be with-
drawn at any time during that period.
3. This Charter may be terminated at any time by
agreement of three fourths of' the Members of the
Organization.
* See footnote to the reference to thisAgreement in paragraph
2 of Article 56.
'oSrl Wt P. 2743-
DJ-- C. 344 |
|
GATT Library | tn971dt3576 | Report of the First Session of the Preparatory Committee of the United Nations Conference on Trade and Employment | [ca. 1947 - 1994] | NaT | official documents | E/PC/T/33 and E/PC/T/30-33 | https://exhibits.stanford.edu/gatt/catalog/tn971dt3576 | tn971dt3576_92290037.xml | GATT_151 | 0 | 0 | ||
GATT Library | tn452ht0320 | Report of the Group on Anti-Dumping Policies | General Agreement on Tariffs and Trade, [ca. 1947 - 1994] | General Agreement on Tariffs and Trade (Organization) and Trade Negotiations Committee | NaT | official documents | TN.64/NTB/ and TN.64/NTB/W/16-TN.64/NTB/W/21 | https://exhibits.stanford.edu/gatt/catalog/tn452ht0320 | tn452ht0320_91890178.xml | GATT_151 | 4,910 | 31,338 | GENERAL AGREEMENT ON TN. 64/NTB/
TARIFFS AND TRADE Special Distribution
Trade Negotiations Committee
REPORT OF THE GROUP ON ANTI-DUMPING
POLICIES
The Group on Anti-Dumping Policies has prepared the attached Agreement
on Implementation of Article VI of the General Agreement on Tariffs and Trade
and recommends that this instrument be included among the annexes to the
Final Act, which will be drawn up for authentification of the results of the
trade negotiations. The Agreement will be open for acceptance by contracting
parties and the European Economic Community.
It will govern the application of Article VI in so far as action is taken
under anti-dumping legislation or regulations by the parties to the Agreement.
Some members of the Group have recommended that rules should be established
to govern the imposition of countervailing duties, pursuant to the provisions
of Article VI, and at a meeting in February 1967 one of the members suggested
incorporating such rules in the Anti-Dumping Code. The Group agreed that the
question of countervailing duties was important but found that, at that 'late
stage in its work, it was not possible to discuss the matter thoroughly in the
context of the 1964 Trade Negotiations. Therefore the Group considers that it
might be appropriate for the Comimittee to. refer the matter of countervailing
duties to the CONTRACTING PARTIES, suggesting that they should explore the
possibility of making arrangements for a body to be appointed to study the
question some time in the latter part of 1967.
Representatives of the developing countries in the Group expressed
reservations on the Code because, although a substantial effort was made, it
was not possible to roach agreement on the inclusion of special provisions to
meet some of.the specific problems of the developing countries. TN 64/NTB/
Page 2
Agreement on Implementation of Article VI of
the General Agreement on Tariffs and Trade
The parties to this Agreement,
Considering that Ministers on 21 May 1963 agreed that' ''significant
liberalization of world trade was desirable . and that the comprehensive -trade
negotiations, the 1964 Trade Negotiations, should deal not only with tariffs but
also with non-tariff barriers;
Recognizing that anti-dumping practices should not constitute an unjustifiable
impediment to international trade and that anti-dumping duties may be applied
against dumping only if such'dumping causes or:threatens material injury to an
established industry or materially retards the establishment of an industry;
Considering that it is desirable to provide for equitable and open procedures
as the basis for a full examination of dumping cases; and
Desiring-to interpret the provisions of Article VI of the'General Agreement'
and to elaborate rules for their application in order to provide greater uniformity
and certainty in their implementation;
Hereby a-ree as follows:
PART I - ANTI-DUMPING CODE
Article 1
The imposition of an anti-dumping duty is a measure to-be taken only under
the circumstances provided for in Article VI of the General Agreement. The
following provisions govern the.application of this Article, in so far as action
is taken under anti-dumping legislation or regulations.
A. DETERMINATION OF DUMING
Article 2
(a) For the purpose of this Code a product is to be considered as being
dumped, i.e. introduced into the commerce of another country at less than its
normal value, if the export price of. the product exported from one. country to
another is less than the comparable price, in the ordinary course of trade- for
the like product when, destined for. consumption in the exporting country.'
(b) Throughout this Code the term "like product" ("produit similaire") shall
be interpreted to mean a product which is identical, i.e. alike in all respects
to the product under consideration, or in the absence of such a product, another
product which, although not alike in all respects, has characteristics closely
resembling those of the product under consideration. TN.64/NTB/
Page 3
(c) In the case where products are not imported directly from the country
of origin but are exported to the country of importation from an intermediate
country, the price at which the products are sold from the country of export to
the country of importation shall normally be compared with the comparable price
in the country of export. However, ,comparison may be made with the price in the
country of origin, if, for example, the products are merely trans-shipped through
the country of export, or such products are not produced in the country of export,
or there is no comparable price for them in the country of export.
(d) When there are no sales of the like product in the ordinary course of
trade in the domestic market of the exporting country or when, because of the
particular market situation, such sales do not parmit a proper comparison, the
margin of dumping shall be determined by comparison with a comparable price of the
like product when exported to any third country which may be the highest such
export price but should be a representative price, or with the cost of production
in the country of origin plus a reasonable amount for administrative, selling and
any other costs and for profits. As a general rule, the addition for profit shall
not exceed the profit normally realized on sales of products of the same general
category in the domestic market of the country of origin.
(e) In cases where there is no export price or where it appears to the
authorities concerned that the export price is unreliable because of association
or a compensatory arrangement between the exporter and the importer or a third
party, the export price may be constructed on the basis of the price at which the
imported products are first resold to an independent buyer, or if the products are
not resold to an independent buyer, or not resold in the condition as imported, on
such reasonable basis as the authorities may determine.
(f) In order to effect a fair comparison between the export price and the
domestic price in the exporting country (or the country of origin) or, if
applicable, the price established pursuant to the provisions of Article VI:1(b)
of the General Agreement, the two prices shall be compared at the same level of
trade, normally at the ex factory level, and in respect of sales made at as nearly
as possible the same time. Due allowance shall be made in each case, on its
merits, for the differences in conditions and terms of sale, for the differences
in taxation, and for the other differences affecting price comparability. In the
cases referred to in Article 2(e) allowance for costs, including duties and taxes,
incurred between importation and resale, and for profits accruing, should also be
made.
(G) This Article is without prejudice to the second Supplementary Provision
to paragraph 1 of Article VI in Annex I of the General Agreement.
1When in this Code the term "authorities" is used, it shall be interpreted
as meaning authorities at an appropriate, senior level. TN.64/NTB/
Page 4
B. DETERMINATION OF MATERIAL INJURY, THREAT OF MATERIAL
INJURY AND MATERIAL RETARDATION
Article 3
Determination of Injury
(a) A determination of injury shall be made only when the authorities
concerned are satisfied that the dumped imports are demonstrably the principal
cause of material injury or of threat of material injury to a domestic industry
or the principal cause of material retardation of the establishment of such an
industry. In reaching their decision the authorities shall weigh, on one hand,
the effect of the dumping and, on the other hand, all other factors taken
together which may be adversely affecting the industry. The determination shall
in all cases be based on positive findings and not on mere allegations or
hypothetical possibilities. In the case of retarding the establishment of a
new industry in the country of importation, convincing evidence of the forthcoming
establishment of an industry must be shown, for example that the plans for a
new industry have reached a fairly advanced stage, a factory is being constructed
or machinery has been ordered.
(b) The evaluation of injury - that is the evaluation of the effects of
the dumped imports on the industry in question - shall be based on examination
of all factors having a bearing on the state of the industry in question, such
as: development and prospects with regard to turnover, market share, profits,
prices (including the extent to which the delivered, duty-paid price is lower
or higher than the comparable price for the like product prevailing in the course
of normal commercial transactions in the importing country), export performance,
employment, volume of dumped and other imports, utilization of capacity of
domestic industry, and productivity; and restrictive trade practices. No one
or several of these factors can necessarily give decisive guidance.
(c) In order to establish whether dumped imports have caused injury, all
other factors which, individually or in combination, may be adversely affecting
the industry shall be examined, for example: the volume and prices of undumped
imports of the product in question, competition between the domestic producers
themselves, contraction in demand due to substitution of other products or to
changes in consumer testes.
1When in this Code the term "injury" is used, it shall, unless otherwise
specified, be interpreted as covering cause of material injury to a domestic
industry, threat of material injury to a domestic industry and material
retardation of the establishment of such an industry. TN. 64/NTB,
Page 5
(d) The effect of the dumped imports shall be assessed in relation to the
domestic production of the like product when available data permit the separate
identification of production in terms of such criteria as: the production
process, the producers' realizations, profits. When the domestic production of
the like product has no separate identity in these termas the effect of the dumped
imports shall be assessed by the examination of the production of the narrowest
group or range of products, which includes the like product, for which the
necessary information can be provided.
(c) A determination of threat of material injury shill be based on facts and
not merely on allegation, conjecture or remote possibility. The change in
circumstances which would create a situation in which the dumping would cause
material. injury must be clearly foreseen and immiment.1
(f) with respect to cases where material. injury is threatened by dumped
imports, the application of anti-dumping measures shall be studied and decided
with special care. .
Article 4
Definition of Industry
(a) In determining injury the term "domestic industry" shall be interpreted
as referring to the domestic producers as a whole of the like products or to
those of them whose collective output of the products constitutes a major
proportion of the total domestic production of those products concept that
(i) when producers are importers of the allegedly dumped product the
industry may be interpreted as referring to the rest of the producers
(ii) in exceptional circumstances a country may, for the production in
question, be divided into two or more competitive markets and the
producers within each market regarded as a separate industry,
if, because of transport costs, all the producers within such a
market sell all or almost all of their production of the product
in question in that market, and none, or almost none, of the
product in question produced elsewhere inthecountry is sold
in that market, or if there exist special regiona.l marketing
conditions (for example, traditional patterns of distribution or
consumer tastes) which result in an equal degree of isolation
One example, though not an exclusive one, is that there is convincing
reason to believe that there will be, in the immediate future, substantially
increased importations of the product at dumped prices. TN.64/NTB/
Page 6
of the producers in such a market from the rest of the industry,
provided, however, that injury may be found in such circumstances
only if there is injury to all or almost all of the total production
of the product in the market as defined.
(b) Where two or more countries have reached such a level of integration
that they have the characteristics of a single, unified market, the industry
in the entire area of integration shall be taken to be the. industry referred to
in Article 4(a).
(c) The provisions of Article 3(d) shall be applicable to this Article.
C. INVESTIGATION AND ADMINISTRATION PROCEDURES
Article 5
Initiation and Subsequent Investigation
(a) Investigations shall normally be initiated upon a request on behalf of
the industry affected, supported by evidence both of dumping and of injury
resulting therefrom for this industry. If in special circumstances the authorities
concerned decide to initiate an investigation without having received such a request,
they shall proceed only if they have evidence both on dumping and on injury
resulting therefrom.
(b) Upon initiation of an investigation and thereafter, the evidence of
both dumping and injury should be considered simultaneously. In any event the
evidence of both dumping and injury shall be considered simultaneously in the
decision whether or not to initiate an investigation, and thereafter, during the
course of the investigation, starting on a date not later than the earliest date
on which provisional measures may be applied, except in the cases provided for in
Article 10(d) in which the authorities accept the request of the exporter and the
importer.
(c) An application shall be rejected and an investigation shall be
terminated promptly as soon as the authorities concerned are satisfied that
there is not sufficient evidence of either dumping or of injury to justify
proceeding with the case. There should be immediate termination in cases where
the margin of dumping or the volume of dumped imports, actual or potential,
or the injury is negligible.
(d) An anti-dumping proceeding shall not hinder the procedures of customs
clearance.
1As defined in Article 4, TN. 64/NTB/
Page 7
Article 6
Evidence
(a) The foreign suppliers and all other interested parties shall be
given ample opportunity to present in writing all evidence that they
consider useful in respect to the anti-dumping investigation in question.
They shall also have the right, on justification, to present evidence orally.
(b) The authorities concerned shall provide opportunities for the
complainant and the importers and exporters known to be concerned and the
governments of the exporting countries, to see all information that is relevant
to the presentation of their cases, that is not confidential as defined in
paragraph (c) below, and that is used by the authorities in an anti-dumping
investigation, and to prepare presentations on the basis of this information.
(c) All information which is by nature confidential (for example, because
its disclosure would be of significant competitive advantage to a competitor or
because its disclosure would have a significantly adverse effect upon a person
supplying the information or upon a pers on from whom he acquired the information)
or which is provided on a confidential basis by parties to an anti-dumping
investigation shall be treated as strictly confidential by the authorities
concerned who shall not reveal it, without specific permission of the party
submitting such information.
(d) However, if the authorities concerned find that a request for
confidentiality is not warranted and if the supplier is either unwilling to
make the information public or to authorize its disclosure in generalized or
summary form, the authorities would be free to disregard such information unless
it can be demonstrated to their satisfaction from appropriate sources that the
information is correct.
(e) In order to verify information provided or to obtain further details
the authorities may carry out investigation's in other countries as required,
provided they obtain the agreement of the firms concerned and provided they
notify the representatives of the government of the country in question and
unless the latter object to the investigation.
(f) Once the competent authorities are satisfied that there is sufficient
evidence to justify initiating an anti-dumping investigation pursuant to
Article 5 representatives of the exporting country and the exporters and
importers known to be concerned shall be notified and a public notice may be
published.
(g) Throughout the anti-dumping investigation all parties shall have a
full opportunity for the defence of their interests. To this end, the
authorities concerned shall, on request, provide opportunities for all
directly interested parties to meet those parties with adverse interests, so TN.64/NTB/
Page 8
that opposing views may be presented and rebuttal arguments offered. Provision
of such opportunities must take account of the need to preserve confidentiality
and of the convenience to the parties. There shall be no obligation on any
party to attend a meeting and failure to do so shall not be prejudicial to that
party's case.
(h) The authorities concerned shall notify representatives of the
exporting country and the directly interested parties of their decisions
regarding imposition or non-imposition of anti-dumping duties, indicating the
reasons for such decisions and the criteria applied, and shall, unless there
are special reasons against doing so, make public the decisions.
(i) The provisions of this Article shall not preclude the authorities
from reaching preliminary determinations, affirmative or negative, or from
applying provisional measures expeditiously. In cases in which any interested
party withholds the necessary information, a final finding, affirmative or
negative, may be made on the basis of the facts available.
Article 7
Price Undortakings,
(a) Anti-dumping proceedings may be terminated without imposition of anti-
dumping duties or provisional measures upon receipt of a voluntary undertaking
by the exporters to revise their prices so that the margin of dumping is
eliminated or to cease to export to the area in question at dumped prices if the
authorities concerned consider this practicable, e.g. if the number of exporters
or potential exporters of the product. in question is not too grout and/or if the
trading practices are suitable.
(b) If the exporters concerned undertake during the examination of a case,
to revise prices or to cease to export the product in question, and the
authorities concerned accept the undertaking, the investigation of injury shall
nevertheless be completed if the exporters so desire or the authorities concerned
so decide. If a determination of no injury is made, the undertaking given by
the exporters shell auomatically lepse unless exporters State that it shall
not lapse. The fact that exporters do not offer to give such undertakings
during the period of investigation,.or do not accept an invitation made by the
investigating authorities to do so, shall in no way be prejudicial to the
consideration of the case. However, the authorities are of course free to
determine that a threat of injury is more likely to be realized if the dumped
imports continue. TN. 64/NTB/
Page 9
D. ANTI-DUMPING DUTIES AND PROVISIONAL MEASURES
Article 8
Imposition and Collaction. of Anti-Dumping Duties
(a) The decision whether or not. to impose an anti-dumping duty in cases
where all requirements for thi imposition have been fulfilled and the decision
whether the amount of the anti-dumping duty to be imposed shall be the full.
margin of dumping or less, are decisions to be made by the authorities of the
importing country or customs territory. It is desirable that the imposition be
permissive in all countries or customs territories parties to this agreement,
and that the duty be loss than the margin; if such lesser duty would be adequate
to remove the injury to the domestic industry.
(b) When an anti-dumping duty is imposed in respect of any product, such
anti-dumping duty shall be levied, in the appropriate amounts in each case,
on a non-discriminatory basis on imports of such product from all sources
found to be dumped and causing injury. Thu authorities shall nams the supplier
or suppliers of the product concerned. If, however, several suppliers from
the same country are involved, and it is impracticable to name all these
suppliers, the authorities may name the supplying country concerned. If several
suppliers from more than one country are involved, the authorities may name
either all the suppliers involved, or, if this is impracticable, all the
supplying countries involved.
(c) The amount of the anti-dumping duty must not exceed the margin of
dumping as established under article 2. Therefore, if subsequent to the
application of the anti-damping duty it is found that the duty so collected
exceeds the actual dumping margin, the amount in excess of the margin shall be
reimbursed as quickly as possible.
(d) Within a basic price system the following rules shall apply provided
that their application is consistent with the other provisions of this Code:
If several suppliers from one or more countries are involved, anti-
dumping duties may be imposed on imports of the product in question found to
have been dumped and to be causing injury from the country or countries
concerned, the duty being equivalent to the amount by which the export
price is less than the basic price established for this purpose, not
exceeding the lowest normal price in the supplying country or countries
where normal conditions of competition are prevailing. It is understood
that for products which are sold below this already established basic
price a new anti-dumping investigation shall be carried out in each
particular case, when so demanded by the interested parties and the demand
is supported by relevant evidence. In cases where no dumping is found,
anti-dumping duties collected shall be reimbursed as quickly as possible.
Furthermore, if it can be found that the duty so collected exceeds the
actual dumping margin, the amount in excess of the margin shall be
reimbursed as quickly as possible. TN. 64/NTB/
Page 10
(e) When the industry has been interpreted as referring to the producers in
a certain area, i.e.. a. market as defined in Article 4(a)(ii), anti-dumping
duties shall only be definitively collected on the products in question con-
signed for final consumption to that area, except in cases where the exporter
shall, prior to the imposition of anti-dumping duties, be given an opportunity
to cease dumping in the area concerned. In such cases, if an adequate assurance
to this effect is promptly given, anti-dumping duties shall not be imposed,
provided, however, that if the assurance is not given or is not fulfilled, the
duties may be imposed without limitation to an area.
Article 9
Duration of Anti-Dumping Duties
(a) An anti-dumping duty shall remain in force only as long as it is
necessary in order to counteract dumping which is causing injury.
(b) The authorities concerned shall review the need for the continued
imposition of the duty, where warranted, on their own initiative or if interested
suppliers or importers of the product so request and submit information sub-
stantiating the need for review.
Article 10
Provisional Measures
(a) Provisional measures may be taken only when a preliminary decision has
been taken that there is dumping and when there is sufficient evidence of injury.
(b) Provisional measures may take the form of a provisional duty or,
preferably, a security - by deposit or bond - equal to the amount of the anti-
dumping duty provisionally estimated, being not greater than the provisionally
estimated margin of dumping. Withholding of appraisement is an appropriate
provisional measure provided that the normal duty and the estimated amount of
the anti-dumping duty be indicated and as long as the withholding of appraisement
is subject to the same conditions as other provisional measures.
(c) The authorities concerned shall inform representatives of the exporting
country and the directly interested parties of their decisions regarding
imposition of provisional measures indicating the reasons for such decisions and
the criteria applied, and shall, unless there are special reasons against doing
so, make public such decisions.
(d) The imposition of provisional measures shall be limited to as short a
period as possible. More specifically, provisional measures shall not be
imposed for a period longer than three months or, on decision of the authorities
concerned upon request by the exporter and the importer, six months.
(e) The relevant provisions of Article 8 shall be followed in the
application of provisional measures. TN. 64/NTB/
Page 11
Article 11
Retroactivity
Anti-dumping duties and provisional measures shall only be applied to
products which enter for consumption after the time when the decision taken
under Articles 8(a) and 10(a), respectively, enters into force, except that
in cases:
(i) Where a determination of material injury (but not of a threat of
material injury, or of a material retardation of the establishment of
an industry) is made or where the provisional measures consist of provisional
duties and the dumped imports carried out during the period of their
application would, in the absence of these provisional measures, have caused
material injury, anti-dumping duties may be levied retroactively for the
period for which provisional measures, if any, have been applied.
If the anti-dumping duty fixed in the final decision is higher than
the provisionally paid duty, the difference shall not be collected. If the
duty fixed in the final decision is lower than the provisionally paid duty
or the amount estimated for the purpose of the security, the difference
shall be reimbursed or the duty recalculated, as the case may be.
(ii) Where appraisement is suspended for the product in question for
reasons which arose before the initiation off the dumping case and which
are unrelated to the question of. dumping, retroactive assessment of
anti-dumping duties may extend-back to a period not more than 120 days
before the submission of the complaint.
(ii.) Where for the dumped product in question the authorities determine
(a) either that there is a history of dumping which caused
material injury or that the importer was, or should have
been, aware that the exporter practices dumping and that
such dumping would cause material injury, and
(b) that the material injury is caused by sporadic dumping
(massive dumped imports of a product.. in a relatively short
period) to such an extent that, in order to preclude it
recurring, it appears necessary to assess an anti-dumping
duty retroactively on those imports,
the duty may be assessed on products which were entered for consumption
not more than 90 days prior to the date of application of provisional
measures. TN. 64/NTB/
Page 12
E. ANTI-DUMPING ACTION ON BEHALF OF A THIRD COUNTRY
Article 12
(a) An application for anti-dumping action on behalf of a third country
shall be made by the authorities of the third country requesting action.
(b) Such in application shall be supported by price information to show
that the imports are being dumped and by detailed information to show that the
alleged dumping is causing injury to the domestic industry concerned in the
third country. The government of the third country shall afford all assistance
to the authorities of the importing country to obtain any further information
which the latter may require.
(c) The authorities of the importing country in considering such an
application shall consider the effects of the alleged dumping on the industry
concerned as a whole in the third country; that is to say the injury shall not
be assessed in relation only to the effect of the alleged dumping on the
industry's exports to the importing country or even on the industry's total
exports.
(d) The decision whether or not to proceed with a case shall rest with
the importing country. If the importing country decides that it is prepared
to take action, the initiation of the approach to the CONTRACTING PARTIES
seeking their approval for such action shall rest with the importing country.
PART II - FINAL PROVISIONS
Article 13
This Agreement shall be open for acceptance, by signature or otherwise,
by contracting parties to the General Agreement and by the European Economic
Community. The Agreement shall enter into force on 1 July 1968 for each
party which has accepted it by that date. For each party accepting the
Agreement after that date, it shall enter into force upon acceptance.
Article 14
Each party to this Agreement shall take all necessary steps, of a general
or particular character, to ensure, not later than the date of the entry into
force of the Agreement for it, the conformity of its laws, regulations and
administrative procedures with the provisions of the Anti-Dumping Code. TN. 64/NTB/
Page 13
Article 15
Each party to this Agreement shall inform the CONTRACTING PARTIES to the
General Agreement of any changes in its anti-dumping laws and regulations and
in the administration of such laws and regulations.
Article 16
Each party to this Agreement shall report to the CONTRACTING PARTIES
annually on the administration of its anti-dumping laws and regulations, giving
summaries of the cases in which anti-dumping duties have been assessed
definitively.
Article 17
The parties to this Agreement shall request the CONTRACTING PARTIES to
establish a Committee on Anti-Dumping Practices composed of representatives of
the parties to this Agreement. The Committee shall normally meet once each
year for the purpose of affordin- parties to this Agreement the opportunity of
consulting on matters relating to the administration of anti-dupmping systems in
any participating country or customs territory as it might affect the operation
of the Anti-Dumping Code or the furtherance of its objectives. Such consultations
shall be without prejudice to Articles XXII and XXIII of the General Agreement.
This Agreement shall be deposited with the Director-General to the
CONTRACTING PARTIES who shall promptly furnish a certified copy thereof and a
notification of each acceptance thereof to each contractiing party to the
General Agreement.
This Agreement shall be registered in accordance with the provisions of
Article 102 of the Charter of the United Nations.
DONE at Geneva this ................ day of ....................
one thousand nine hundred and sixty-seven, in a single copy, in the English and
French languages, both texts being authentic. |
GATT Library | zw199hs0835 | Report of the joint working group on import restrictions : Revision | General Agreement on Tariffs and Trade, [ca. 1947 - 1994] | General Agreement on Tariffs and Trade (Organization) | NaT | official documents | L/3391/Rev.1 and L/3391/Rev. 1 | https://exhibits.stanford.edu/gatt/catalog/zw199hs0835 | zw199hs0835_90830236.xml | GATT_151 | 23,568 | 230,870 | RESTRICTED
GENERAL AGREEMENT ON L/3391/Rev.l
TARIFFS AND TRADE Limited Distribution
REPORT OF THE JOINT WORKING GROUP
ON IMPORT RESTRICTIONS
Revision
1. The Joint Working Group was established by the Council, at its meeting of
23 January, as a temporary ad hoc body .to conduct consultations without commitments
with contracting parties, along the lines suggested by- the Director-General in
Section III of his proposal contained in L/3260, concerning quantitative import
restrictions maintained taking into account the debates of the Council in the
matter. Members of the Group were the contracting parties comprising the membership
of the three main Committees of GATT, the Committee on Trade in Industrial Products,
the Committee on Agriculture, and the Committee on Trade and Development. The Group
met from 13 to 24 April under the chairmanship of Mr. S.R. Pasin (Turkey)-1
2. For practical purposes, consultations were limited at this stage to the eighteen
countries whose restrictions were partially listed in an illustrative table annexed
to L/32602 and to the territories on whose behalf those contracting parties apply
the GATT. This selection did not cover the restrictions of those countries
consulting regularly on balance-of-payments difficulties or countries with centrally-
plsnned economies. The question of extending the examination to other contracting
parties remained open.
3. The Council instructed the Group to take into account its debates on the matter,
in which it had been emphasized that the Group would, in effect, act-as agent for
the three main Committees. This implied that the Group's work should be arranged,
both as to timing and as to content, so as to contribute to the work of those
Committees and the results should be made available to them. It was also emphasized
in the Council that particular attention should be given to restrictions affecting
the trade of developing countries. The Group was instructed to report at an early
date.
4. One speaker recalled that his delegation had agreed to the establishment of
the Joint Working Group on the understanding that they were not prepared to discuss
the potential removal or relaxation of their agricultural import restrictions in-
The Group also met on 7 December 1970 for the purpose of finalizing the
annexes to this Report.
The countries were:. Australia, Austria,. Canada, Denmark, the EEC countries,
Ireland, Japan, Norway, Portugal, Sweden, Switzerland, the United Kingdom and the
United States. L/3391/Rev.1
Page 2
the Joint Working Group unless other participants were prepared" similarly to
discuss action with regard to their system of protection having effects similar
to import restrictions (C/M/60). He stated, however, that his delegation would be
prepared to discuss again the reasons for the maintenance of its restrictions
(described in L/3302) in the Joint. Group on the understanding that the Joint Group
was doing preparatory work to be used by Working Group 2 of the Agriculture
Committee when seeking solutions.
5. Documentation before the Group, contained in L/3377 and addenda (revision of
the table annexed to L/3260), was based on notifications -by-maintaining countries
conceding residual restrictions, notifications by trade partners both in the
Inventory of Non-Tariff Barriers (as regards industrial products) and as presented
to this Group; similar notifications, to the Agriculture Committee were also used
for agricultural products. The exchange of views on individual notifications
during the meeting also contributed to fuller understanding 'of restrictions
employed.
6. Since only two weeks were available -for the work of the Group, covering some
2,000 notifications, including some applied to only a few countries, the Group
concluded that its contribution should include.advancing to-the maximum the work
of Group 4 of the Industrial Committee, the parallel work of Group 2 of the
Agriculture Committee (Measures Affecting Imports),, and the work of the Group on
Residual Restrictions. This was.done through an item-by-item revi-ew of the
notifications made concerning the eighteen countries directed towards ascertaining,
so far as available time Permitted and the members of the Group considered it useful
and practicable, the purpose of the measures, their economic importance, other
protectionn afforded, plans and possibilities for relaxation and removal. The
review was necessarily rapid and in many instances the information obtained did not
cover all the points.. Part of -the results ofthis work is reflected in an
attached revised consolidated table and its annexes. The table has also.been
amended so ás to facilitate integration ..of new material into the work-of the main
Committees, through a system of annotation explained in notes preceding the
table. These notes offer some general explanation of the system of restriction
in force in the various countries covered, as an aid to the interpretation of the
symbols. Reports annexed to the table record more fully the significant
information on individual items brought forward during the discussion by both
the notifying and the maintaining countries.
'The representative of one developing country stated that his' country reserved
its position on the documents because they did not take into account the total
embargo that one- developed contracting party illegally imposed against his country s
trade.
iNotes on the individual items have been reproduced in documents in the
COM.AG/W/ and COM.IND/W/ series and are being kept up to date by periodic
issue of revisions. For' agriculture, the documents are: C0M.AG/W/57 and
COM.AG/W/68/Add.l Part II. For industry the documents are: COM.IND/W/28/Add.l
and Add.l/Corr.l. L/3391/Rev.1
Page 3
7. This table also includes an identification of restrictions, showing (1) those
with respect to which governments have indicated target time-limits within 'which
they intend to remove restrictions (marked.A in the table);-(2) those with respect
to which the maintaining countries indicated that there might be a possibility of
relaxation or removal (marked B in the table a'id listed in Annex III); (3) those
with respect to which developing countries indicated specific interest in the
course of the meeting (marked C and listed in Annex IV) as well as the twenty-one
items selected by the Group on Residual Restrictions for priority attention
'(marked D and also listed in Annex IV). The table also ,gives the necessary cross
references to such detailed documentation as has been established by that Group.
8. In view of the existence of a separate body in which the cotton textiles
problem was subject to continuing review, the.Group did not discuss this problem;
these restrictions and restrictions maintained on health and sanitary grounds
which had been notified have been deleted' from the table.
9.. In documentation submitted to the Group just before it convened, certain
notifications by Poland drew attention to cases of discriminatory restrictions.
maintained against it by certain other contracting parties. The Group was
unable to discuss these notifications in detail for lack of appropriate preparation.
Further, . some countries expressed the view that such questions would more
appropriately be dealt with during the annual consultation with Poland. . However,
others supported the Polish view that these restrictions fell within the purview
of the Group. It was agreed to retain the items in the table.
10. During its work, certain differences of view emerged concerning the proper
scope of -the import restrictions to be considored. In such cases it was agreed to
indicate the existence of these measures and to note clearly the differences of
opinion. Some countries considered that notifications relating to licensing
requirements of a purely formal and automatic nature should be deleted from the
table. Others felt that only such licensing requirements should be included as
covered cases where the administratioL had discretion to refuse or delay certain
applications for licences. It was further pointed out that in this respect
notifications had not been made in a unifonm manner and wore thus incomplete as
many countries had proceeded under the presumption that automatic licensing
procedures did not fall within the scope of the present examination of import
restrictions. In this connexion it was noted that a list. of items under the
automatic import quota system in Japan shown in Annex II is considered by
notifying countries to be a case of liberal licensing although Japan disagreed
both on the effct of the automatic import quota system and its inclusion
1The twenty-one items do not exhaust the list of products which the Grouap
intends to examine; see note on proceedings of the Groupts meeting held in
November 1969 (COM.TD/70, paragraph 8) and Report of the Comnmittee on Trade
and Development to the Contracting Parties (L/3487, paragraph 19, dated
'29 January 1971).
For practical reasons the items are not shown in the consolidated table. L/`391/Rev.l
Page 4
Still others were of the view that all licensing requirements involved some
impediment to trade development, if only through the uncertainty resulting for
traders from the existence of a mechanism which could quickly be converted to use
for restriction.
11. The Group took cognizance of a view expressed that certain problems, are
encountered due to particular economic and social factors common to many countries.
Certain delegations stated that, in agricultural trade, different countries were
more or less favoured or hampered by certain of these factor s, such as irregular
growing seasons, distance from markets, or small landholdings. It was noted that
many governments wished to provide farmers with the opportunity to obtain income
comparable with that in the industrial sector of their economies.. It was also
noted that agriculture was of relatively greater importance in the economies -of
some countries than others. Some delegations said that little justification had
been advanced during the discussions for many restrictions apart from statements
which amounted to saying that protection was required. These delegations did not
accept that appeals to social problems justified the use of restrictions inconsis-
tent with the GATT and pointed out that alternative methods of attaining such
objectives could be used. Some delegations said that the burden of these problems
should not be shifted onto exporting countries, particularly developing exporting
countries, which already had growth and balance-of-payments problems.
12. It was the view of some delegations that, in particular, all illegal quantita-
tive restrictions should be removed promptly. Other delegations considered that to
draw a distinction between legal and illegal quantitative restrictions was
inappropriate having regard to the mandate of the Group, and unlikely to be
productive. Still other delegations felt that when collecting information the
Group should not make a distinction, but pointed out that it was a fact that in
the past some quantitative restrictions had been legalized, through, for example,
the provisions of the General Agreement, protocols of provisional application,
certain accession protocols or waivers, and some had not.
13. Some delegations suggested that cases in which illegal quantitative restrictions
bore particularly on the trade of developing countries should receive the highest
priority and, where feasible, that time-tables for their elimination or for the
enlargement of quotas, possibly in relation to the growth of the market, should be
set without reciprocity being required. When any quantitative restriction signifi-
cantly affected both developing and developed countries' exports, special
consideration should be given to the product on a most-favoured-nation basis in
the light. of the-interest of the developing countries themselves.
14. Some delegations while agreeing with the view that quantitative restrictions
which were illegal should be removed promptly, referred to the provisions of
Article XXXVII:l(a) and suggested that no distinction need be made between quanti-
tative restrictions that were legal and those that were illegal, especially
where they affected the trade of developing countries. These delegations pointed
out that considerable exploratory work on identification of restrictions which
adversely affected trade of developing countries had been done by the Group on L/3391/Rev I
Page 5
Residual Restrictions; That Group had selected twenty-one items from the list of
quantitative restrictions aifecting trade of developing countries. The Joint
Working Group should recommend that restrictions on those items. as well as those
in respect-of which developing, countriess. indicated specific interest in the course
of the discussions should be removed on a priority basis without expecting.
reciprocity from them..
15. Some -delegations pointed out that the work of the present meeting had, been
narroi'in scope: and .had not dealt with many measures which had. effects ve'y
similar to, those.of quantitative restrictions. Other delegations pointed oout
that such measures were applied in both the. agricultural and industrial fields.
Several delegations pointed out that there was a link between the maintenance of
quantitative restrictions and other types of measures applied by contracting parties
having similar effects.
16. Certain delegations recommended that the Council might wish to give attention
to possible further procedures to bring restrictions under more effective inter-
national scrutiny with a view to facilitating their relaxation or elimination, and
as a minimum, to ensure a complete and orderly description of measures in force.
In particular it was suggested that it might be wise to take steps to ensure the
updating and progressive improvement of the table of import restrictions and its
annexes which had been drawn up. These delegations considered that a more
effective system of written notifications, including notifications by affected
countries, would be one possible means to this end. Another possibility which
was suggested would be for the Council to instruct the secretariat to avail
itself of published sources of information in revising and improving the coverage
of the consolidated table on a continuing basis. The Council might also wish to
consider a further exchange of views on restrictions along the lines of that just
concluded by the Group, or, possibly, the establishment of consultations at.
suitable interyals.
17. Some delegations suggested that quantitative restrictions for which there
was only slight substantive justification should be eliminated at an early date,
that any discriminatory element in existing restrictions should be eliminated and
that a set of guiding principles Thuld be adopted for the administration and
future elimination of remaining quantitative restrictions particularly total
prohibitions of imports from selected countries. Among these principles might be
the opening of some trade opportunities for products at present completely
prohibited and the provision for annual increases in quotas to allow imports a
greater share of the domestic iuarket.
18. A question was also raised by certain members of the Group as to the manner
in which the CONTRACTING PARTIES may wish to deal with the regularization of those
restrictions which cannot be expected to be removed in the foreseeable future but
which do not fall within the limits of existing exceptions permitting maintenance
of quantitative restri c cons . L/3391/Rev. 1
Page 6
19. Some delegations were impressed by the lack of symmetry which existed
between the detailed notification and consultation procedures provided in the
case of balance-of-payments restrictions and restrictions maintained under
decisions by the CONTRACTING PARTIES and the examination that had been.possible
in the present meeting. These delegations suggested that there was a need for
continuing machinery for improving regular consultations on the administration and
eventual elimination of remaining quantitative restrictions. Other delegations
said that in their view the consultation held in the present meeting was no
different in form from certain other consultations referred to and had been useful.
List of Annexes
Page No.
I. Revised Consolidated Table1
10/11
II. Japan Automatic Import Quota List
III. Classification of Restrictions Reviewed
IV. Indicative List of Items of Particular Interest to Developing
Countries
V. Notified Restrictions or Restraints Imposed or Maintained
Pursuant to the Long-Term Arrangement Regarding International
Trade in Cotton Te;-ctiles
57
65
69
76
1See footnote 2, page 2. L1,3391/Rev. 1
Page 7
INTRODUCTORY NOTE TO ANNEXES I-V
The consolidated table in Annex I, sets out details of restrictions in force1
to the extent that restrictions maintained by the specified countries have been
notified to the contracting parties in one context or another.
(a) Country. coverage
The table contains the restrictions notified for the eighteen countries
consulted by the Joint Working Group as well as, to some extent, the restrictions
of dependent territories of these contracting parties. It covers not only those
restrictions which are operated on a global basis but also discriminatory restric-
tions applied to one or a few countries. While every effort has been made to
ensure the accuracy of the data, the table should not be considered as a compre-
hensive and exhaustive list of all restrictions maintained by the countries
concerned.
(b) Tyes of restrictions included
Annexes I, II and V include all of the types of measures considered by some
members of the Group to constitute import restrictions (see paragraphs 8 and 10
of report), except restrictions maintained on health and sanitary grounds as well
as restrictions on products of a purely military character. Annex IV contains a
list of items subject to import restriction in which developing countries have
expressed specific interest.
(c) Symbols - the symbols2 used are as follows for Chapters 25-99:
(i) Restriction type
BQ: Bilateral quota - where an individual quota of a fixed amount has
been agreed with the supplier country.
GQ: Global quota - where restriction applies to goods of most, if not all
countries and where the amount of the quota is published.
P: Denotes that imports are generally prohibited or embargoed, 'with
the possible exception of purchases for government (e.g. defenc)o
use.
ST: State trading - an additional symbol indicates the degree of
restriction involved, where attention was given to this question.
1For Chapters 25-99 of Annex I and Annexes II to V the position is up to date
as of 1 February 1971. For Chapter's 1-24 of Annex I, the table is the same as that
already issued in COMAG/W/68/Add.2/Part I, except that it has been modified in the
column for Japan to reflect recent liberalizations and decisions concerning future
liberalization, and except that indications of developing country interest have
been added, to correspond to Annex IV. Apart from the changes made by Japan, the
data for Chapters 1-24 are up-to-date as of 31 October 1970.
2 For Chapters 1-24 see the explanatory notes at the beginning of
COM.AG/W/68/Add .2/Part \ I. W./3391/Rev.l
Page 8
AL: Automatic licensing.
LL: Liiberal licensing Trhere maintaining countries consider their
licensing regime to be a pure-21 formal requirement involving no
restriction.
DL: Discretionary licensing - includes cases where global q.uotas may
have been established, but not published (see definition oL GQ).
L: Licensing (method unspecified)
SUSP: (followed by country abbreviation) - where an import restriction
has been suspended pending application of an export restraint by
the country named in parenthesis.
XR: (followed by country abbreviation) - the country in parenthesis
operates an export restraint vis-a-vis the country shown as main-
taining the restriction.
MP: Minimum price system.
Certain other restrictions (esg. mixing regulations and screen
quotas) are mentioned in individual boxes..
(ii) Country- symbols
The following country or area symbols are used:
ATA Australia NET Netherlands
BE Belgium PAK Pakistan
CAN Canada POL Poland
CZ Czechoslovakia SUND Sweden
HK Hong Kong SWz Switzerland
IND India UK United Kingdom
JAP Japan US United States
KOR Korea YUG Yugo-slavia
LUX Luxembourg
CPA Commonwealth Preference Area
DA Dollar Area
EEC European Economic Communities
STA Sterling Area L/3391/Rev.1
Page 9
Country or area symbols preceded by a dash (e.g. -UiK) means that the
restriction is applied to imports from countries or areas other than the
one(s) named. On the notes pertaining to the Benelux the abbreviation for
one or more of the constituent countries indicates that the restriction is
applied there alone.
(iii) Category syrabols
Symbols in the lowerright-hand corner indicate:
(a) Future liberalization
A - Restrictions with respect to which governments have indicated
target time-limits for removal.1
B - The debate on Chapters 25-i9 indicated, in the secretariat
view, that consideration. of joint action looking towards
removal or relaxation of restrictions might be fruitful (see
also Annex III).
(b) Developing countries
C - Products in which developing countries, in the Joint Working
Group, expressed specific interest in regard to relaxation
or elimination of restrictions by consulting countries.
D - Denotes that a restriction applies -to one of the twenty-one 2
product groups selected by the Group on Residual Restrictions
at its meeting in April 1969 for priority attention.
Other symbols
INumbers in the lower left-hand corner of boxes refer to NTB Inventory Cards
on products in Chapters 25-99.
As regards Japan, the significance of the symbols A and A is as follows:
A - Japan will endeavour to complete the liberalization by the elld of
April 1971 as the target date.
A - Japan will liberalize these items by the end of September 1971.
2
2Those marked D relate to the twenty-one product groups discussed in that
Group in November 1969 and October 1970. Information supplied by governments and
other relevant background data and statistics compiled by the secretariat on
restrictions related to these items are included in CMS.TD/70, COM.TD/W/05,
COM.TD/W/107, COM.TD/W/ll8/Rev.l, COY.TD/W,/125, COM.TD/79 and their addenda and
corrigenda. 1/339/Rev .1
Page 10/11
REVISED. CONSOLIDATED TABLE IMPORT RESTRICTIONS
Commodity
Australia
Austria
Canada
Denmark
Benelux
France
FermaO..
F.R ..
Italy
Ireland
Japan
CA i
. Norway
Portugal
Live horses, asses,
mules and hinnies
DL
Horses.
for
butcher-.
ing
Horses
except
thorough-
l hred-
| breeding
arlals
C
DL
Horses
A
GQ '
Horses not
for food
DL
Other
horses
Swedeni 0&Switzerèand
aQ
For horses
for slaughter
and work-
horses
LLZI
Donkeys,
ponies and
race horses c
United
Kingdom
Live animals of
bovine species
the
DL
Except
breeding
animals
DL
Except
buffaloes
CA1
DL GQ
For slaughter
DL
For breeding
and Stock-
raising
CQ
Live swine
DL
f,
DL
DL
DL GQ
For slaughter
DL
por breeding
and stock-
raisinaS .
DL GQ . . _
01.04 Live sheep and L, MP DL
goats varieties slaughter For breeding
other than raising
pure bred, raisndgtg
b r dinor g
Lives poultry, that
is to say, fowls,
ducks, geese,
turkeys and guinea
fowls
DL
Except
breeding
animals
01.06 Other live animals DL GQ Reindeer J
GQ; ST
Of sheep
r
DL
Chickens
and
turkeys
DL GQ
Meat and edible offals
of the animals falling
within heading l
Ne. 01.01, 01.02,
01.03 or 01.04, fresh,
chilled or frozen --
DL:'
Of 01.01
to 01.03
I'
GQ
Of
to
DL
01.02
01.04
MP
Of .04
except
frozen
. -
Of horses
and . 04
frozen
P '
Of sheep,
frozen
C
DL
(-UK)
c!
DL
Of animals
falling-
within head.
ings 01. 02
except
Ioge ind
organs
C.
*DL MP
BQ: Sheep
meat from
Iceland
under EFTA
--agreement
R
Of 01. 02
and
n.e.s.
ST'
C
LL 'I ,
Of horses,
pork
C
1Applicable only to imports from North, Central and South
2According to the Swedish and Swiss delegations, their LL
sentence In paragraph 10.
America
systems represent
licence requirements of a purely formal nature, and the licenses are
R ; GQ
of sheep
and lamb
C
United
states
1
4
L i
granted automatically. See L/3391.page 3, third
3Thi.s is a conditional import regime..
4Contingency quotas (not so far applied) and restraints by some supplying countries. See CO!4AG/W/4/Add.3.
Of pigs, fresh, chilled or frozen.
This table replaces -earlir--ersions-distributed as COM.AG/W/68/Add.2/Part 1, COM.AG/W/57, COM.IND/W/28 and revisions, 1/3377 and 4/3260.
BTK
01.01
01.02
01.03
PQ.05
02.01 L/3391/Rev.1
Page 12
Commodity .
Australia
Austria
Canada
Denmark
Benelux
Prance
Germany,
F.R.
Italy
Ireland
Japan
a - - - i -- -- . I I
Dead poultry (that
is to say, fwls,
ducks, geese, :
turkeys and guinea
fowls )and 'edible
offals thereof
(except liver),
fresh, chilled. or
frozen ,
DL
, I ' Ii . . - I . I I 1- Il-
Poultry liver,
fresh, chilled,
frozen, salted
or in brine
DL
DL
(-UK)
DL
(--UK)
I 17 _
Other meat and
edible meat offals,
fresh, ohfilled or
frozen . :
Unxendered pig fat
free of lean meat
and unrendered :
poultry fat, fresh,
ohilled, frozen,
salted, in brine,
dried, or smoked
DL
Unrrendered
pig fat
DL
Bacon, ham, and,
other pigmeat offals,
salted, in brine,
dried, or smoked
DL
I Dr
.
Other meat and: edible
meat offals (excer-
poultry liver),
salted, in brine,
dried, or smoked
DL
DL
Of
..animals
under
Items
*,01.02 ar
01..05
nd
I.
GQ
Of
sheep
-C
DL
Nojrwag
DL M?
I. I
D_
. DL
Of
r-.Ln.deer
DL
DL jDLM
.DL I D, MP
DL DL
Of bovine
animals
and pigs
. I C
Portugal Sweden
Lhl t 2
111,2
L.1'I2
Except
goose
liver
&jStzerland U . - nited United
Kingdom States
D.L
Unrendered
pig fat
I - w ~l 2 - GQ
R
P (-STA)
Whole
otber
than
±n air-
t.t.ght
,containerss
-. - - C )
I i - &§ -- I t
BQ
C
- , - .
Applleable only to imports from North, Central and South Amerioa.
2.
See footnote under item 01.01.
02002
02.03
02. i
02.05
02. 06A
02. 06B
.
. .
I
I
L-
F-
.
I
I --.- - -
.1
. I L/3391/Rev.1
Page 13
BTN Commodity Australia Austria Canada Denmark Benelux France Germany, Italy Ireland Japan Norway Sweden Switzerland United
L(bell) Portugal
Eles and herrings except herrings Carps (JAP) herri n g except Cod herring,
mackerel)Ithe Trrodep whole
|salt water fish except fish, all and tuna el roes,w deep- whole, cleandil
Isprats and smelts. In illets tail h|illetz |lets of herring
sole, halibut~ skate, frozen Iorse DIP
sole, halibut, skate, frozen hosar e- , | except frozen;
pocheteau and chévre except mackers o co
(and fillets thereor) tuna) anand ao ck,
.or industrial use frnsauries fro
Eels herrings and chilled or
frozen
United
States
. ..
brine, dried or Herrings and fillets,
except dried (except
for industrial use in
l - 3.oa1Crstaceans, and n.no-~-'-- 01 -- 1'-L BQ --
sc, w-hether inf
s ishel or no.,, fresh, -
, (l:'ie or dead),
c !:lled,.; ozen,
s jtlc,4 in inre or ij
dried; crustaseans,
SJi- shel7, simply
t bcil ,A in ater!
0.01 no concentrated or
sweetened it i r a ;
04.02 Milk and cream, DL p1
preserved, concen-
trated or sweetened
w a t n a
04.03 Butter DL p2 DL
04.04 Cheete. and curd,
R BQ
Cod Herring
R(JAP) and
Certain herring
fish fillets,
salted or
in brine
in brine
DL Pro-t
ducts
with 6% or
less by
weight of
butter fat
1
DL
DL except
natural
C cheese
DL
Chee se
Chee set
DL
natural C
Restriction not intended to-control importation of products labelled and sold as powdered cream, baby food, etc. Certain other exceptions. Cl
2EXePt impcrtts for personal use, of a Malue not exceeding $5.
3Butter and goods containing 50 per cent or more by weight of butterfat, other than ghee, cheese or cream.
4Hard roes of ood (including Alaska pollack) and of herring; cod, herring, yellow tal mackerel, sardines, hor-e-mackerel;and sauries, "Niboshi" (small, boiled dried tiurposes)
applicable only to imports from North, Central and South America.
See footnct2 under item 01.01.
kee footnote under item 02.01.
These apply to certain types.
japan considers that Portugal restricted Japanese import of these products. Portugal invokes Article X V in the case of Japan.
Q Q L
Dried Certain salted
cod erring;
spillanga
DL
Scallops,
cuttlefish
and adduc-
tors of
shellfish
C
C
Dt .
DL (-UK) S
Milk, IDL
dried or
Powdered I
., . 1
I
9 -
Shr'mps and
prawns, in shell
boiled in water
DL
DL
LL ml
in co
tain
read;
fo Irsunp
R
cI
i
Cl
C
R ilk
ZL°cream
milk (except| LI-StAjf
on; |lried);
Lers . ski t~d mi lk
powder I
con IR7 wmiole .
C G ButterC BQ ,
C, .
s QQ 8
| C C B
C I
II
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
I
I -- __c I
-I I
I "
- - ----
i - I -
-- I _
_I _
. . ^. *
_ t.-n-
L I ___ ...... -_
. ~~ ~ .. . i
. - {- I
. ,,
I
- f --I i
-i i f -:!
I - - I
-
Q
I I _I_
i
I
j
I
I
I
I
I DL
11 -
R
. I -
I
I
I
I I
ll
c -11
I.
|ST
GI
DLt
I
I
I
GQ
DL
i
I
I
i I
I
I
I
I I I Commodity Australia Austria Canada Denmark
Birds' eggs and egg yolks, fresh, dried or
otherwise preserved, sweetened or not
05.04 Guts, bladders: and stomaches of animaIs (other
than fish), whole, and pieces thereof
05.05 Fish waste
05.07 Skins and other parts of birds, with their
feathers or down, feathers and parts of fearhers
(whether or not with trimmed edges) and down,
not further. worked Ithan cleaned, disinfec e or
treated for preservation powder and waste of
feathers or parts of feathers
05.15 Animal products not elsewhere specified or
incIuded; dead anjmal of Chapter 1 or
Chapter 3, unfit for human consumption
06.01 Bulbs, tubers, tuberous roots, corms, crowns
and rhizomes, dormant, in growth or in flower
06.02 Other live plants, including tees, shrubs,
! ~ ~~~ t - __
I
06,.,04, Folia&, branchess and other parts (otn
flowers or buds of trees, shrubs, bushes and I
S
other plants, and MoOses, lichens and grasse F
being kind suitable for bouquets r
rnamental purposes fresh, dried-, dyed.; bleached
impregnated or otherwise prepared
ápPlicable only to imports from North, Central and South America.
I
3,3t)- :/RE!lr . I
.mage 1
.............. .
..........:.......................................... .................................................... I..
?T.#ant, Norway For tugal Sweden?'Swjtzerlanc
B&ielux Franoel Germany., jtajy?, Ireland
F. R.
F?04*06 I Natural honey
" -;,.- -- ? - Z. --- -- , --- -
busheso roots, cuttings and slips
vv. -
I
Cu? flowers and flower buds of a k;.nd suitable
for bouquets or for ornamental purposes, fresh,
dried, dyed, bleached, impregnated or otherwise
prepared
oé. o3
2SC-c footnote -under illem O:L..Ol.
3s(,-e footnote under item 02-01- 1/3391/Rev. 1
Page 15
BTN" Commodity ~ Australia Austria Canada Denmark Benelux France, Germany., Itai rln igo
07.01 Vegetables, fresh or DL,SR DL, SR SR (BEL). Early SR except BQ, GIQ except I PD
chilled ware except potatoes seed potatoes for' seed
potatoes for' seedDL(BEL)I Other potatoes the production potatoes
A.' Potatoes epotate ofstarch, sMption~
except flakesconsump-tio
potatoes tions for
B. Tomatoes -SR D1DLS --S (BEL) S B*Draw;S SR,MP,DL SR
C. Other fSR DL, SR ~R Onions SR Salads BQ or GO, SR SRs.,oois; muQ(POms
onions certain, including SR onions muhosmsros
and vage endives lettuce DL MP SR.
certain ables, and land j capers,
vegetables inojlu- chicory, others shallots
DL ding certain. and gar-
certain onions beans lic
other (except Iand arti-
vegetables onions chokes smal
Lorx I onions
planting
with maxi- onon or
mum cross- planting
section.1 .
of 21 mm.) . CCD
CD ~~C,D1 D C,DCCCDCD
_______________________________ _________(onions) (onions;____________ (onions) ___________ _____ __________(onions) ________ onions) ______
07.02 Vegetable's (whether or GQ DL DL ZDL
not cooked), preserved beans, except
by freezing peas and olives
07.03 Vegetables provisionally DL DL .
preserved in brine., in r coveraged except
sulphur water or in other as under olvs n
* preservative solutions., item 07.01 capers
but not specially prepared
for immediate consumption - ____
07.04! Dried, dehydrated or R SR D L
evaporated vegetables, except onions except Idried
whole, cut, sliced, truffles dried ~garlic ,beans
broken or in powder, but and1
not further -prepared 1 olives ben
shelled -whether or not and peas except green
skinned or split for beans adse
sowing ~~~~~f or growing
sowing l~~~~!egumninous
Vegetables other
than small red
_________j f___ __ __ _____ _____ ~~~~~~~~~~~~ ~ ~~beans __ _
Manioc, arrowroot, salep,
Jerusalem artichokes, sweet
potatoes and other similar
roots and tubers with high
starch or inulin content,
fresh or dried, whole or
DL
except Lresh
sweet pota-
toes and manioc
for feeding A
DL
except
mnani oc
and
arrowroot
United
States
sliced: sago with
07.061
3See footnote under item 02.01
-- --- -See footnote under item 01.01.
1Aplicable only In the BLEU.
- - --- -- - 4I
i
-1 L/3391/Rev. 1
Page 16
I BII . - ., I
Commodity
Australia
Dates.,bananas,'1
coconuts, B.atl nuts,
cashew nuts ,: pineapples,
aveccados,. maM goes,
uavas and 0margo-
,.steens., fresh or dried,
shelled or not
Austria~
aranada
! Demrk I
gene lux
France
R
Bananas
and..
pine-
apples
C
Germany,
P .R.
- 8.o - Citrili fruit ,- fresh
or dried, r K.
Figs, fresh or dricd
Grapesd fresh .or. dried
Itlaly1
Bananas
DL
Dates in
packages
of more
than
500 grammes
C
DL
Dried figs
in
packages of
more than
500 grammes
cl
.4 - -i i i I . - _ ------1
SR DL
Dessert
grapes
in con-
tainers
up to.
15k-kgs.
gross
weight
C
_ - 1 -- - i i I - - I i
Apples', pears and
quince S, fresh
Stone fruit, fresh
n_ - - _-___-_____ _ _ -_ I.
Barries. fresh
DL
Apples
SR
Pears
_ C,D
SR
Apricots,
Peaches,
cherries,
plums and
quetsches
C
SR
Straw-
berries
DL
Currants
UL SR
Apples,
pears
'CD
$L SR
Cherries
and plums
of a12
kinds
LL SR
Rasp-
berries,
straw-
berries
nd
currants
SR
Table
grapes
I ..
R (other
than
cider
apples)
D
SR
Apricots
DL
resh.
grapes for
ine
roducti.o;
dried
raisins in
ackagaS of
ore than
500 grames
Ireland
SE
(-UK)
Apples
c
Japan Norway
DL
oranges.,
grapefruit,
tangerines,
fresh --
.A
I ..~
Apples
DL SR
Apples and
Pears '
A. MP
C,D . C,D
~~~~~~~~~~- I
DL SR
Cherries
SR
plums
_ _ L 4 -I _ _ _
Portugal
, ..
cL- -
DL SR .
Raspberries,
straw-
berries,
currants and
gooseberries
Sweden -Switzerland
_ ~ ~~ I
I I ....
P I
I For
I pressing
SR SR
Apples, Apples
pears and
i pears I
I ->s
; SR
Apricots,
plums,
prunes and
cherries
SR
Strawberries
raspberries,
currants;
and black-
berrie s
C
2 0 .~~~~~~~~~~~~~~~~~~
1Licensing of fruit (COM.IND/12/'Rev.2 )
2Grapefruit only
3Applicable only in the BLEU.
United
States
I . I
08.03.
I 08.04
08.06
United.-
Kingdom
GQ(DA)
Bananas
BQ (Cuba)
Grape-
fruit,
fresh
GQ(-STA)
Apples
and
pears
C.D
08.07
_________________ _ '-.-------------------- i
08.08
- 1. I
;? , j; ? ?- . , d-,:7 - - I I - I I
I I - I i i ..!- , I .11 ? I ! - I
...... -- . -
I ..!
i . i ? .!, - i i i
. ' - : - .g:
I- - - 1-
-T- ---
_, . --------.
x , _ _~~~~~~~~~
__ _.} _ _.___ _
F-- - 1--
r
_ L
: -'..
I
. . .
??' , , "":1
I ? I
. ? ?? 08 017
' S '
I
I
I
C
i
i
i
i rage 17
Australia Austria
Canada
Ia
Denmark
Benelux
France
*08.09 Other fruit, LL SR SR DL SR'
fresh j netted melons melons me lons j
other than
honeydew
and ogan
or not cooked), coverage as Pineapples Irape-
freezing, not item 20.031 A D ottled
containing D (apples. Dr canned
added sugar (apples, pears (apples, pear A pears and
___________________ ~~~and peaches) ____ and peaches) p___ ________ieaches)
*08.11 Fruit provisionally- DL. R, DL(K) LL
preserved (for coverage as Oranges, except
example, by sulphur. under . grape- citrus
dioxide gas, in items 08.06, fruit, fruits,
brine, in sulphur 08.07 and limes, apricots
water or in other 08.08 grapes, and
preservative apples,, peaches
solutions), but tangerines
unsuitable in that
state for immediate D D A3 D
consumption (pears) (apples, pears D (apples
___________ and.-peaches)_____________ (apples) and pears_____
08.12 Fruit, dried, other R LL
than that falling Prunes~ for except
within heading retail;. apricots,
No-08.01, 08.02, fruit salad peaches,
08.03, 08.04 or with. over prunes and
08.05 20% prunes blueberries
* 09.01 Coffee, whether or
not roasted or freod
of caffeine coffee
husks- and skins;
coffee substitutes
containing coffee in.
any proportion 4
DL
*09.02 Tea 6 P-1hck-ta
(other than
waste exclu-
ding those
--- I'C~~~ for
*10.01 Wheat and meslin DL, ST Z; ST DL DL ST ST ~ R, ST EL5 LL5, Bread wheat; qB
(mixed wheat and chat Wheat eat GQ denaturede-t
ry) . ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~DL for. planting
_ _ _ _ ~~C C C _ _ _ _ _ _ _ _ _ _ _C _ _ _ _ C C C
10.02 Rye ~~~~~DL, SDL DLI ST jR LL5 - Bread rye;
C ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~DL for plantinZ
_ _ C
Germany Italy
Ireland
Japan
norway
Portugal Sweden1
Switznrland
.United
United,
classified as
fit for human
consumption
c
~Applicable to all areas, subject to the following exceptions: _________
(i) Certain imports from Northern Ireland solely for -use of importers'I own livestock; (ii) Certain imports from countries outside Continental Europe; (iii) ertain :imports from the United Xigo
2Apples, pears, plums, cherries, strawberries, raspberries, loganberries, o~arrants and gooseberries preserved in water without added sweetener. 3Lms rpes and apples only.
4Coffee imports of all countries listed except Ireland, Japan and Portugal are subject to the International Coffee Agreement. 5èee footnote under item 01.01.
6Legislation provides that tea and, instant tea (except instant tea of UK origin) must be Imported direct from the country -in which the tea was grown. The 1rish dea~egation considered this as mandatoz
. ,, '1 .- t r ' 1 to ' - - k of I ~J' -tWor' oGrI
y
BTN
Commodity
- - - 7, 1
I
I I
i
T-
I
I . i
-1
:1
I
? I L/5391/Rev. 1
Page. 18.
Commodity
10.03 Barley
10.05
Maize
Australia
Austria
DL, ST
c
DL
I j I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ _ _I
Canada Denmark Benelux Prance Gprma.,iy,'. .
F.R ..
I I - . . ..1
. iI
L -, ST - DL
I
c !
c
L, ST
V. '
Itlay-,
Ireland
DL
CI
Japan
I-Norwa-y. Portugal..
I IK
'Sweden Switzerland
United
kingdom
I I I f - , I I~____________________________ ____________I__________
i I I ________________ it
(I.
ST
except for
I . 4 I -
1 1 . I I t~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.
DL
ST
r. I
B;R2
For planting
GQ; R2
For planting
C
C
C
-; i -
4 II I c ! -1 - Cl- -
- r i i
if Q , ?i I . --
I I
I'
DL , STI
V.
L: for
-animal
feeding
I.'
DL(-UK)
ST
R
For planting
United
states
C _ _ _ C!IU I_ _ __ U'
10.06 Rice S L ~ RS
I ~~~~~~~~~~~~~~~~~~~~~~excep For aia
___ _ I _ _ _~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~,p __ _a
husked feeding
and un- .LL3
- ~~~husked
B For human
__ __ __ _ __ __ __ _ __ __ __ _ __ I________________________ __________________________ _ __ __ _ __ __ __ _ __ __ __ _ __ ________________________ _ __ _ __ __ __ _ __ __ __ _ __ __ _ __ __ __ _ __ __ __ _ _ ______________________
consumption
10.07 Buck-wheat, millet , canary DL, ST DL RK-liang
seead and grain sorghum; ~ FHillet, Ra-iang ST-
Grain, and qther Except For animal
other cereals grains ~~~~~~~~~~~~~~~~~~~~~~sorghm,= ghums, ex ~canary feeding
Orghum ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ec~o P luding seeds
chases and
materials,
ound
- ...j ______ j~~~~~~~~~~~~~~~~~~~~~~~~~~~~eeds At____
Wheat Except ~~~~~~~Of rve Bread k
Cereal ~~~~~~~ ~~~~~flour, rice and wheat packaged florsfl
Barley flour for
I_________________ _____________ _____flour retail
_____ _____~~~~~~~~~~~~C! I c c Sale a __ _C _ _ _
11.02 Gereal greats d cereal DL ST DL
L DL DL ST R. G
meal; other, worked cereal Exccept Oats Except of maize, Hadwetèa23s
grains (for example cat ground, maize barley j I
rolled , flaked, polished, flakes crimped,oatmeal
pearled or kibbled, but crushed, buckwheatan
not further prepared), o old n ~h~. 1
polished or broken rice; barle
germ or cereals., whole, barley, or
gr und~~~~~~~~~Jgont r
rolled, naked or ground Ic~~~r ieaed CC__
l~~~~9 _____________~~~~~~~~~~~CC
1Applicable to all areas, subject to the following exceptions:.
* (i) - Certain imports from Northern Ireland solely for use of Importers own
(i)Certain imports from countries cutside Continental Europe
(iii) Certain imports from, the United Kingdom.
2See footnote under item' 02.01.
3See footnote under item 01.01.
at
Ur
1?
Ldma
Coin
livestock
I I I
7-
I I I ? I
I I F -
I i i L I i
I
I
I
I
I
R
r
I
f, I
- I
I
: . I
11 L/3341/Rev. 1
Page 19
Australia
Austria
1 1 1~~~~ I __ _ __ _ I_ . I 1- -7. -
Canada
Denmark Benelux
France
Gemany.,
F.R.
Italy
Ireland
Japan
Norway
Portugal
Sweden
Switzerland
11.03 Flours of the leguminous L ST-
vegetables falling within
______heading No. 07.05
11.04 Flours of the fruits
falling within any
heading in Chapter 8
11.05 Flour, meal and flakes DL DI Fo hma
of potato Flours and Frh n
* _________ ___________ _________ ________ I ~~~~~~ ~~ ~~ ~~~~~~consumP tion
11.06 Flour and meal of sago LL DL DL &2
and of manioc, arrowroot, . Except for fof.naocOfmn*
salep and other roots and animal sago,
tubers falling within. fee ding arrowroot
heading No. 07.06 .and salep and salep
ST
of tapioca
and manioc
for animal
feeding
________________ _______________~~~~~~~~~~~~~~~~~~~~~
11.07 Malt, roasted or not DL DI, flou
_______ ______________________I._______ _________ _______ _________ _______ - _________ _____ BarlByaalty niald
11.08 starches; inulin GQ LL. DL DL DL LL
Potato, Nheat E xc ep t W heat Potato Starches
wheat and starch salep starch starch except
maize I 1L' I
starches c ____
11.09 Gluten and gluten flour. LL DL DL DL
roasted or net From
wheat
12.01 Oilseeds and oleaginous GR DL
whole or seeds turnip seed nuts,
broken rapeseed
and
seed A3
Flours or meaks of cil-
seeds or oleaginous fruit,
non-defatted (excluding
mustard flour)
ST
I 'S ______I I -I I I....J_ __ _ _ _ _ _ _ I. I__ _ _ I _ __ __ __ __ __ __ __ __ _
Seeds, fruit and spores,
of a kind used for
sowing
Seeds of
beets
turnips ,
lolium,
phleum
pratense,
festuca
I_______________________ I _________ I.I I V i- I --- I
1Applicable only to imports from North, Central and South America.
DL(-UK) .
Certain
grasses,
sugar beet
DL
Seeds of
tobacco, of
fodder beet,
kale, mangel,
-turnips and
Tomato I
LL2
In containers
of over
5 kgs.
GQ
Vetch and
lupin seeds
for
Vetch and
,, seeds
SowingI
United-.
K~ingdom
United
States
Peanuts
2See footnote under item 01.01.
3Except groundnuts for roasting.
BTN
Commodilty
12.02
12.03
I I f I - -
I - -- -- i I
k-
i I I -1 -
.
I
i
I
I
I
- T T
T-- - - i
I
. . 1
I , -,c, - 3391/r!ev. 1
Page 20
Commodity
Sugar beet, whole or sliced,
fresh, : dried or powdered;
rtgaze cane . .-
I F ,.
Cicory roots, fresh or dried,
whole or cut, roasted
I Hop cones and lu-pulin
Plants and parts (including
seeds and fruit) of trees,
bushes, shrubs or-other
plants, being goods of a kind
used primarily in perfumery,
in pharmacy, or for iisecti-
cidal, fungicidal or similar
purposes" fresh or dried,
I whole, cut, crushed, ground
or powdered
Locust beans, fresh or dried,
whether cr not kibbled or
ground, but not further pre-
pared; fruit kernels and
other vegetable products of a
kind used primarily for human
food, not falling within any
other heading
Cereal straw and husks.,
|unprepared, or chopped but
not otherwise prepared
Australia| Aistrij Canad-a
I I I _ _ _I
_ -I - T -
|Denmarkc|
DL - - - - --- -
1 1 -- e France
I ,- -- . - I
DL (BEL)' Lor
internal '
consump ton
LL (BEL)- for
transforma-
tion and re-
ex-port
BR-~
C
I I
DL
..I.. . - -e -- i .t . --
.
Germar4w
F ¢R
Ital-., Ireland Japan Norway| Portugè1 Swe-den| SWitzerland United t
LL' Sugarom Sats
_ (J P j . .... _eets_ ___ _.s
Dried or j sliced d|re or
powdered and drdo
sugar beets dried : thinly
except ~~~~~~~~or . ~~~~sliced for
those for .anial . fimnl
producing feeding feeding
substitutes . .____
--l -----t-r- -
M _ _.t _ _b
C~aroo5 i'or Edible secept
- o ----b rio -s
feedin-, .
DL ..I:
ttraw 1- ttct
1 ' l~Strawz I I 1 ";--ed 1
2See footnote under item 0l01l.
. BT
12.04
Xz. ;0
12.oé
12 .0?
I 2.0
12.09
_ _ __ q :
I - I I I
.......
. _
I
3èenelrux
DL
DL
I
L.
. 1
SR (BM,)
E2=-
I
I
. . I
-.- - .- - --. - -,.. i Page 21
BTN Commodity Australia Autria Canada Denmark Bmelux Prance Germnany, Italy Ireland Xapan Nra otg~ Sweden Swteland United United
F.R. Kingdom States
12.10 Mangolds, swedes, fodder BQ o DL(-K)L Hay
roots; hay, lucerne, clover, 'Lucerne, Hay
sainfoin, forage kale, dried and
lupines, vetches and grud
similar forage products (List A)
13.03 Vegetable zaps and extracts; L M
pectic sub-stances, pectin Saps Apple
ates and pectates; agar. extracts of Pectin
agar and other mucilages an~d hops, mixed
thickeners, derived from vegetable
vegetable products exports for,
the prepara-
tion of bev-
erages or
foodstuffs,
pectin
14&.05 Vegetable -products' DL
n.e~s.. Tubers of Algae
amorphophallus flour
including those
cut, dried or
powdered;
Dates-
denatured;
inedible..
seaweed
Lard and other rendered pig'-
fat, rendered poultry- fat
Unrendered fats of bovine
cattle!, sheep or goats;
'tallow (including "premier
Jus") produced from those
fats
GQ
Lard and
other ren-
dered pig-
fat
Except
Itallow,
fancy
tallow,
yellow
grease, and
tallow of
sheep and
goats 1
DL
Except for
technical
purposes
Except for
technical
purposes
C
R
Lard for
industrial
use
- -~ ~~- --I - -- ________- - -
Lard stearin, olestearin
and tallow stearin; lard
oil, oleo-oil -and tallow,
Cil, not emulsified ot
mixed, or prepared in an7
way
Way
Except for
Technical
purposes
ri i i --------- II - -t.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1
DL
4 ~~~~~- --- II .- 1.- & ________ - -.-I
DL
Other than
for
industrial
LL2
Other than-
for
industrial
useI
1See footnote under item 01.01.
15,01
15,02
15.03
-L-
- 4- i- - t. i - i i
c
0
L
I L/3 /5,"Rev. 1
Page 22
:: 0 . g Commodi$ty
Australia
AuS
*triaj Canada - Denmarkj Beri.ux
Pr ne
Germany
F.R.
Italy
__I_ ____-_;_ I i-. i -i
Other animal oils and fats
(including neatIs-fect oil
and fats from bones.or waste
Pixed vegetable oils i fluid
mr solid, crude, refined or
purified
Iatty acids
refining;
alcohols
;, acid oils from
ratty
| Glycerol and glyycrol lyes
Ireland| Japan
Norway
Portugal|Sweden
. I I I
L _ i . I --- I - - A I - - - - - _____ _ i-- --
p
Acids other
than stearic
and éleic
acids; fatty
industrial
alcohols
Glycerine
UDi
Acid
oils
from
I refining
Of soyabeans,
rapeseed,
goundputs,
;nustardseed,
corn, saf-
flower and
srLmf lower;
of Cotton- A
seedè _ f
I'D
Olive
Toil s
ground-
nut oil
_1 - --i i __- -- I I - -_ __1- I_ I_ - I --5
Animal or vegetable oils
and fats, wholly or partly.
hydroenated, o.- solidified
or hardened by any father
I process, whether or not
refined, but not further
prepared
IMargarine, imitation lard
and other prepared, edible
fats
P
Oleo-I
margarine,
butterine or
other similax
substitutes
for butter o
processed
Ibutter: with I
exceptions
(e.g. per-
sonal use)
|DL
Except
rgarine
.-_______I____..______.__________. _________-____,__________-_ I I____ I II .------ -- -- I
., ,U .i
Switzerland J~nite'd
11L 1
'for animal
feeding
C_
LID
IC
C,
___.
LID
ILL .
Other than
for
industrial
Use
L1
Kingdom
1See footnote undqr item 01.01.
2See footnote under item 04.02.
3Except for the nmanufacturing of mayonnaise.
BTIN
15.oé
15.07
* 15.10
15 1
15.12
5 .13
United
States
I
i- i - I
.4-.. _-
i ? -
I
i _
I i - i
i i ---4- ' f
i -~~~-4- i _ _
-I- - . I ---- i
I
? i - .
---I I - 1- --- - I i i - I - -- 1 -
I. i i
I.-;
I
.....
I.. C.- I
1G42 L/3391/Rev. 1 Page 23
BTN Commodity Australia Autra anada Denmark Benelux France Gray Itlay Ireland Japan Norway~ Potuga~l Sweden Sizrad United EUnited
16.01 Sausages and the GQ GQ LD
like, of meat, OT~ animals
meat offal or : in 01.01
animal blood I _ __ _ _ _ _o_ _ _
16.02 Other prepared GQGQDL ~,DL (-UK) D DL; GQ LL 19 (-STA)
or preserved .Except ~ Except pate' Of sheep Of animnal-r, Corned beef, Turkey Pigmeat and jPreparations Whole
meat or meat poulr. de foie gras in 01.01 preparations rolls poultry of pork; hams
offal or meat poultry, and products I I o 01.04 ~of beef or- meat, GQnls
sheep frm nias pokad rpred or. Qorned beef preserved
and w ithin - other prp-preserved in air-
goats headings t rations iartgttight
01.01-1, 01.04, mainly con- containers containers
and 01.06~~taining beefL
C~ an 1.éor pork Othrc L11
___________ C 1 - _________ _____________ ham-s ______
16.03 Meat extracts DL Ote h.
and meat juices Except
meat
extracts
:16.04 Prepared or and BQ BQ(JAP
preserved fish, Sardines, Exce)
and caviar tuna adcanned
substaitute bonito salmon,
substitutes ~~~~~~~~~~~~~~~~~caviar,
and caviar
I ~~~~~~substi-
tutes
____ ____ _____ ______ ____ ______ _____~~~~~~~~~~~
16.05
Crustaceans
and molluses,
prepared or
preserved
EQ (JAP)
1
Applicable only to imports from North, Central and South America.
2
See footnote under item 01.01.
I - - - I f - - - I . ~ ~I I. I_ _ _ _ _ _ __. I I &
I
I
ii
-1 -- -i BTN~~ Commodity
17.01 Beet sugar and ea
sugar, solid4
17.01
I I 1-. j9--------.I I I i I
Australia
.Austria
Canada
Denmark-
PInc
Germany,I
F.R..
Italy
Ireland
Japan
Norway, I Portugal
Swedeni
Switzerland
.0- , . 1 . ," 1 ..i. .1 Ai. - . . - 4 i - - 1 4 _______
ane
Other. sugars; sugar
syrups; artificial
honey. whetherr or not
mixed ,with' natural
honey) '. caramel
P
GQ
Except:
beet sugar
and cane
sugar crude
land sugar.
candy
DL
DL (JAP)
DL
DL
Roak candy,
cube sugar,
loaf sugar and
other similar
sugars of
beet and cane
LL1,2
* 114
GQ.
.Starch sugar
(grape sugar
Glucose,
dextrose)
with a
degree of
purity of
~less-than
98% K
LL DL
Except
lactose
DL (JAP
Sacoha-
roc se
syrup
D L,
Grape, malt
and -milk
sugar without
added-sugar;
other sugars,
ets.
DLC.
.Glucose
C
1
Table
syrup
and
other
sugar
syrups
17.03 Molasses, whether or LL DL DL (JAP) DL ST: for L
not decolourized Except for for Edible
animal coffee sub- feed olasse
"feeding stitute or feed
forage
_______ ~D production _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
17.04 Sugar, confectionery, LL DL R DL
not- containing cocoa Fondant, (BEL, Liquorice Chewing gum
pastes, NTET) extract and other
creams and sugar con-
sirdlar fe etione ry,
-intermediate excluding
products, in ~~~~~~~~~~~cough drops
bulk, with
an added I
sweetening
matter
content of
80% or more .A3
17.05
18.-02
Flavoured .or
coloured sugars,
syrups and molasses-,
but not including
fruit juices
- containing. added -
sugar in any
proportion
Cocoa shells, husks
skins 'and waste
LL DL
Except
vanilla
sugar and
Vanillin
sugar
D(molasses )
DL (JAP)
Aromatic Or
Coloured
molasses
Except for
coffee sub-
stitute or
formage
production
D(molasses)1
D(
1
A
D(molasses)
IL
Firl1
1See footnote under item 01.01.
2When imported from members of the International Sugar Agreement.
3Chewing gum only.
4
Imports into Canada, Ireland, Japan, Portugal, Sweden and the United Kingdom are slUbject to the International Sugar Agreement.
Other sugar confectionery
United
Kingdom
United
States
I(BQ)
i i - I - i i i .11 -i -- - I ,
i i ,
- - --- . ii i i i i I
I - I I I
............... I I I
L/3391/Rev.1
Page 24
I .? . m, , w,
. . , :. .. . I- 7 : . I
I
P L/3391/Rev. 1
Page 25
Commodity
Australia
Austria
Canada
r , , 1 R ~ ~ ~ ~ ~~~r .- r___ , t I
Denmark
Benelux
France
Germany.
F.R. .
Italy
I ,. I
Ireland
Japan
Norway
Portugal
Sweden
Switzerland
I - -- - ----t . + - I - - I - I -1 -- i - I - - I - - -- -F- i
Chocolate and other food
preparations containing
cocoa
Preparations of flour,
starch or malt extract,
of a kind used as
infant food or for
dietetic or culinary
purposes, containing
less than 50 per cent
by weight of cocoa
R
(BEL,
NET)
BQ
Ice-cream and
ice-cream.
powder.
DL
1
A
i , I
United
Kingdom
GQ1
DL -(-UK
Dried or
powdered
milk
preparations)
c
poadq
potatoes
_ _ _ _9- F _-- I I- - --
Macaroni, spaghetti
and similar products
BQ
19.04 Tapioca and sago: DL DL
tapioca and sago Except
substitutes obtained salep
from potato or other [ grain
t f ~starches | 7.and t8 7|!
flakes
19-05 Prepared foods ST
obtained by the swelling Popcorn,
or roastir,- of cereals, cornflakes,
or cereal products etc.
(puffed rice, corn-
flakes and similar
products)
_ . . . . . , . I .___ _ __ __ __ __ _ __ _ ._ __ __ _ _ ._ __ __ ___._ __._ ___._ __I_ _ __.._ _ _ _.___._ ___,__ _ ._
Bread, ships' biscuits
and other ordinary
backers' wares not
containing sugar, honey,
eggs, fats, cheese 'or
fruit
Pastry, -biscuits, cakes
and other fine bakers't
wares, whether or not
containing cocoa in any
proportion
See footnote under Item 04.02.
IDL
I _. - ---- - - ---tI - i- - - I - ; - - - - -I *1
DL
1
United
States
BQ
Chocolate
S ilk
crumb
BTN
18.06
19.02
19. 3
19.07
J 5;. IOo
1 1 ___________ ____5 __ ______ 1*-E- -----L.- __. I _ . I _ _ _ _ .I - II1
I . 1 I I
II i i i -- i i t
. .
r
I -
I I
.f Austria. Canada
Denmark
Benelux
- ~ ~ ~ v I - 1 t--- I - ,---
Germany, .
. Italy .
Ireland*
Japan
!ingdomr
20.01 Veogetables- and fruit, ad
by Vinegar or acetic jika, nar olicaer nd
acid, with or: without P o it cn,
sugar, whether or not in -o
containing salt, p u
I _____________ _______ ~~~~~~~~~~~~(tomatoeS 1 , ~d P i1C 2. e. C DLD
20.02 Vegetables prepared or LIT GQ'c m i DLta DL~(4K
than by vinegar or 1p Cotat ,(no., wi~dZ s' ls t h,,'r, and Tratoapr~:
acetic acidj red c~~~~~~~~abbage, topat , 5 kg. puee a-.d -~ives,
peas, asparagus paste ardtochPkt!
mixture s Csr.- ECe ri omt
training an.y Chinosc ptaS~ puree
of' thezc food ~~~~~~~~~~~~~~~~~~~~~~~~~~and pc-tatc -Gq
vofetal pec flakes 3l* -%n.ojnf
vegetables spe ~ ~ ~~~~~~~~~~~~A *fri---d
K ~ ~~~~~~ ~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~~~~C li-cD (tomatoe-s C______
2,,:. 03 Fruiit preserved by DPi-I DL GQI (Os
fre-ez:.-.g, containing 'fmruapls itae
added s-ugar wiith added fut
~~~~ugar.- ~ ~ ~ ~ ~ ~ ~ ~ bottled
frozen o
A ~~~~~~~~~~~~carned
20.04 Fruit, fruit peel and BDLxap
parts- of PIants Ecp ri
preserved by ~~~~~~~~~~~~~~~~~~~ ~Preserved pels 'uDi Far
(drained, glace or fruitsè -D pe5CDgne
(crystallized) (apples, (apples, rears
crystallized) ~pears and pc~aches)
_________ ~~~~~~~~peachooj
2 S,.05 Jams , fruit Jellies, DL DL (-UK) DL ED:ep
purém aades fruitpats Containing c;Ve~r Date, drieda C er t ain -PruWitEcp
bei-a ngcrkd prutPastes, ~3 sugpar, f ig or fruit pure;: and thr, se inad&.
tions, Whethel' or nst I e~~~~~~~~~~~~~~~~~~~~~~~~~~~~-xcept quince ra~isin pulp, nasta from,
tionsai n added srunat Jelly~ and: ilrma- P at wih'utfruit and
lad~s prepar~:2 whothe~r or chury pi
C T sr;% bitter wi th :if xher (appI, .-s filling
(appl.--s nr,!zs; i bitt _ with mxe A:
saur¾ P~ -- s ac,
p..ars a i pars an'l pastees
__________ _______ ______________ _______ p,:I a nk j~achc'l.-v.S) _ _
ts rrspetie f te izeoi te pci~~ns; -e -n4 wn~ -
1Pears, cherries, ra.-pbèrriC32 and strawberries, and
urr,~~ndz~iture obtaining any of these fruits In
mixtures containing at least 30) per cent by weight- Of a-ny )f these fruit
packingg: with a grosr, weirht of -moro than. 2 e~ ach.
United
2Except tomatoes, mushrooms, truffles, olives, capers, curtich-kèas, asparagus without tips-:, frnzun spinach, vir.n jeavc:; or tropical vQegetables.
èseaae utsare established for imports from. Hong Kong.
Mashed potatoes ayv~ pot'abo flakc~s.
L/ 39eI tV. i
Commodity.
Australia
I I : -- - - . I
I
I . -.- -- i
I 'hl A C-Ir
I
Switzerland
Portugall
Sweden
Japan-,,r
L
fruits irrespective of the size of the packings; red and white currants and black L/3391/Rev.1
Page 27
Commodity Australia Austria Canada Denmark :Benelux France Germany, Italy Ireland laa ~ wyP~tglSwede Switzerl~and United
F *j~~~~~~~~~~~~~~~~~, ~~~~~~Kingq,~
20.06 Fruit otherwise GQ BQMor GQ DL DL ~ DL G(A
prepared or pre- The same. Other than In containers (-UK) Except the Grapefruit
served, whether or product- grapefruit of less than ~ Canned -following in. canned
not containing coverage and nut s 4.5 kgs. airtight con-
added sugar or as in BQ Chinese tainers: Pine-
spirit 2001 foIod apples, citrus
,Pecia fruit, apricots,
C,D litiesè ~~~~~~~~~~~~~peaches, nuts,
CD ~ ~~'aple,D ginger, sour
(pears) (apples, ~~~~~~~~~~cherries, mixad
pears and ~~~~~~~~~~fruit (including
peaches) c)
fruit cocktail)
20.07 Fruit Jui-ces, (Inc- C; Q LLJ LL L BQor GQ DL DL FIltDL , OQ, DL G(A
luding grape must) Concen- ~~~~(BEL.) Of certain Juice 'of' Excep t (-K 1ie 'tEcp irsApple juice, Grapefruit
and vegetable treated Cran d sie;aplsnd grape- Certain added auga .Zruit juices, pear juice juice and
Juices, whether or apple Juice; fruit of tomatoes pears; mix- fruit fruit excluding unsweetened orange
not containing concen- Juices tures, except and juices, lemon VI Pineapple juice *RJuice
added sugar, but trated of citrus and pine- -without other and all Grape juice (other than.
unfermente4.-and--not grape Juice; pineapple apple sugar xesui~ vegetable unpast-.
containing spirit DL Juice xcudn
containing spirit DL jui~~~~~~~ce Juld'e lemon juice Juices eurized
Other juice and sloe
of apple or ases. oruice cn
grape a~~~~~~~~~~~~~~~~~~~uc ecuae-on
grape C.D C.D ~~~~~~~~~~~~~~~~~~omato~~ 80 centrate s)
total solids
less than
________ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ DC,D CC.,D__ _ _ _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ C.DC
Roasted chicory and
other roasted
coffee substitutes;
extracts, essences
and concentrate s
thereof
Extracts,- essOences
or concentrates, of
coffee, tea or
mate; preparations
with a basis of
those extracts,
essences or I
concentrates .
~DL
Roasted
chicory
i I
--
.---
1Pears cherries, raspbhorries and strawberries, and mixtures containg at least 30 per cent by weight of any of these frr
currants, and Mixtures containing any off these fruits in. packing with a gross weight. of more
cen b W.ej oht. o~f. flVV
than 2 kgs. each.
6
ofteefruits irrespective of the size of the Packings;
2 apepas hris
The following fruit Juices whether or not containing added sugar, but unfermented and not containing added spirit: apepas hris
currants and black currants, and mixtures containing Juices$ of' these fruits.,
_ red
I.
and whiLte currants and black
rapbere, elderberries, strawberries, red and white
See footnote under item 20.02.
Except apricots, ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~lonsan iilrpodcs
Excet arictspeaches, tropical fruit, fruit cocktails, fruit salads, cocktail and maraschino cherries in glasses up to 8 ozs; roasted peanuts, nuts, lod n iia rdcs
Pineapples with, added sugar or spirit, fruit Pulps with added sugar or spirit, other' Pineapples, other fruit pu~lps and roasted groundriuts.
bSee footnote under item 09,02.
United
States
21.*01
- --- I , I - I . I . I . I I I I I 1 1 I - I I
-- - -- I - -- - - -- - -
I -- -- I i
I L/3391/Rev. 1
Commodity ,
Sauces; Mixed co")-
diments and mixed
seasonings,
Australia
Austria Canada
Denmark
Germany, Italy Ireland Japan Norway
Portugal Sweden Switzerland
Benelux:
France
Germany.
F.R.
i ; w I / I | I I - 2 1- - - I . :t _ I _ ~~~~~~~~L
DL
Tomato ketchup
and sauce,
mixed season-
ings contain-
ing mainly
sodium
glutemate
United
Kingdom
. . .
United
States
.1
I . . 4 I I I I . g i II f I-. _II II I I ,,LL
yeasts ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~For animal
(active or inactive); .' . . Foedan
prepared baking feeding
powders. ...
_~~~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~~ ~~ ~ ~~~~~~ . '____.__._._.__'__ .. ._,I
Food preparations
n.e.s. :
DL
Sweet fat
(sugar/.
fat
mixtures)
L
Edible
saccharine and
certain food
preparations
BQ Chinese
food 1
spe cialities
BQ
Ice-cream
specialities1
powder"
and
DL -(JAP)
Sweetened
butter
-____ _ t I I - I i . r-
Lemonade, flavoured
spa waters and
flavoured aerated
waters, and other
non-alcoholic
beverages, not inc-
luding fruit .and
vegetable Juices
falling within
heading No. 20.07
Beer made from malt
in fer---
in fer-
or with
otherwise
alcohol
22.04 Grape must,
. .mentation or
fermentation
.arrested otherwise
than by the
addition of
.~~ ~~~ .......
l~~~~~~~~ . _- - --
i . _ . .T
BQ. With added
sugar, '.exclud-
ing rav'ions
and peanut
butter and
Korean ginseng
tea
DL Ice-cream
powder, pre-
pared milk pow-
der for infants
and other ,6
preparations A1
, A.,t~
OL
wit h added
fruit Juices
7
DL GQ .
Certain 2
products
C
ST
I I I I _
- I I~~ ~ i i I
_ I_ _ I 1 i
_ . . _I I . __ _ _ II I
Ie footnote under item 20.02.
2 Ice-cream containing fat, not containing cocoa.
taining flavouring additives or frIits.
Fat emulsions and similar preparations used in manufacturing bakers wares, other than those with less than 10 per cent
Apples only to export beer" (alcohol content 3.6 per cent or greater).
"See footnote under item 01.01.
5see footnote under item 04.02.
6Bas Dfor beverages, nonaalooholic
7Bcept for nectar
Canned sweetcorrn
**
Nectar
21.04
21.07-
-2
22.02
22.03
_ _
---------
I
Sweden
Portugal
Italy
Switzerland
Ire land
Japan
Norway
. ...
,GQ5
A, 1, *
A-
ST
ST
R
fat by weight Youghurt, con- L/3391/Rev.1
Page 29
Commodity
Wine of fresh grapes; grape
must with fermentation
arrested by the addition of
alcohol
Vermouths, and other wines
of fresh grapes lavoured
with aromatic extracts
Other
( .g.
mead)
fermented beverages
cider, perry and
; Ethyl alcohol or neutral
spirits, undenatured, of a
strength of 800 or higher;
denatured spirits (inc-
Iuding ethyl alcohol and
I neutral spirits) of any
i strength
Spirits (other than those of
heading No. 22.08); liqueurs
and other spirituous bever-
ages; compound alcoholic pre-
parations (known as 'concen-
trated extracts") for the manu
facture of beverages
Australia
_ ''I !_ _ - ,_ I
Austria
GQ
Except sparkling
wine in bottles
C,D
GQ
And other wines
of fresh grapes
f'lavoured with
aromatic extracts
except: such of
heading
No.22 .06-A with
an alcoholic con-
tent of 18,% or
less in bottles
ST1
Industrially
produced
raw spirits
C
ST1
Except French
cognac, arak,
overseas rum,
and liqueurs
C
Canada
ST
C,D
ST
ST
ST
C
ST
C
Denmark
DL
C,D
DL
Ethyl alcohol
of a strength of
under 800
C
Benelux
France
R
Sparkling wines,
wines other than
liqueur wines and
those assimilated
to the system of
controlled names
of origin C,D
C,D
R
Run and tafia,
vodka, other
spirits beve-
rages which are
not in conformity
with internal
laws, ethyl alco-
hol of less than
800 C
1P, ST
C
ST, BQ GQ
Ethyl alcohols,
eaux de vie, and
Spirits beverages
except rum, arak,
cognac, and
liqueurs
1The Government of Austria does not consider these measures
2See footnote under item 01.01.
as having restrictive effects.
BTN
22.05
22 .06
22. 07
22.08
22 .09
I I
,.-- i -, i i - i i . i -, i
i i i i - - - i - i i , -
i -4 i
-- I ? i , i i
. . i --4-
i
.- I . ---.i
i i -4---- ---+-
-- L-- I
I - ..--
- - - J_ Ll551/FRev. 1
Page 30
: DenmarkV 'Benelux
ii
I I
France ;
Germany j
F.R. I
Italy1
Ireland
* Japan i Norway
i '
Portugal
Sweden I
Switzerland
.;~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~D j j1 j___-__!-- -_
22.10 :Vinegar and substi- R DL
itutes for vinegar
F ! r I _i , ,~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~ I 1 . !II
23.01 'Flours and meals, j DL (-UK) DL ST LL
iof meat, offals, . . of fish
'fish, crustaceans , !except
'or molluscs, un- : ' .hale !
f ift for human con- !
;sumptlon.; greaves . C, A',CD c I C, DI _ _
23.02 |Bran, sharps and !DL:ST| LL DL . ST G 1.
other residues Bri.n j
derived ?rom the . . I .
sifting, milling , I I
or working of
cereals or of
lagumino s i j*
vegetables . C,D CDj jCD
23.03 Beet pulp, bagasse i . FLL DL ST GQ
and other waste of Maize
sugar manufacture; ginten j jdanimal
i brewing and dis- ' feed
til:-ing drts and
1 ;waste; residues i
Iof starch manufac- . i
;ture and similar . |
residues | , 1 | t i , |
1ST 1GQ
23'04 Oil-cake and other ! I DL I
residues (except j iOr soybea n
Idregs) resulting oil rapeSe_ I
from the extraction !| seed oiLpr
of vegetable oils !Cl C. ! t i
23 .06 p o u t 1 ee l LL 1
|Vegetable products a. r
Iof a kind used for I Marc of seed
Animal food, not ! fruits for
elsewhere specified . . ' animal
or Included -. i feeding
- ee foatnate under item 01-.01.
|- B.TN - Comm-
odity
Australia
i
I~~~~~,
Austria
' Canada
United
Kingdom
United
. States
I I I
_
I L/3391/Rev. 1
Page 31
- _ _ _ _ _ _ _ _ _ _ - N~~~~~~~~~~~~~~-- - I . . I I I Y I
Australia
Austria
Canada
De nmark
Benelux
France
Germany,
P .R.
italy
Ireland
Japan
Norway
Portugal Sweden
Switzer land
United
Kingdom
23.07 Sweetened S DL DL STAnimal
forage; Forage, LLialLe(a-nfeei)
23T other pre- in so foods .x epedtuff
parations fra(-K tions contain-
of a kind ~it Con- whenor
US2.sad tains contain- ..or
%an 80
ln~~.n cerelc~~er .ingbyeih
feeding products ..dried.
and solids
powdered
milk)
1
ST~
C
RST
cI
ST
C
UL (-tC)
Cl
C.-
ST
Tobacco
unmixed
C
1 4 __~~~~~~~~~~~~~~~~~~~~~__j . I I . I- - -7--4 i I. ...i
ST3
C
R
ST
ga(ci~rrs;
and I
ST
CI
DL (-UK)
ST
I___ -- __ __ I i___ __ ___1~cigarillosir.LJI I___ 4 ____..... I~~~~. I ___ _I_
rts may be made, maconcessionalional rates of duty subject to provisions regarding use of domestically.-produced leaf.
NO ffects is being given to State-trading provisions.
èee footnote under items 22.C8 and 22.09.
4See footnote under 0tem O1,01.
G' (DA)
Bq (Cuba)
cigars
D) (cigars
and
United
States
Conmodity-
24 ~. 0.
24.02
-Unmianufac -
tured
tobacco;
tobacco
refuse
ufacfa
tured
t-obalcco;
tobacco
extracts
and.
essence's Australia Austria Canada Denmark Benelux ermany, Italy Ireland Japan Norway Portugal. Swedenitzerland United
Commodity p.R. Sweden ~~~~~~Benl raneKingdom
UIN= ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ I
25.01 Common salt .... ~~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ST ST.
25.02 Unroasted iron pyrites D
ex 25.03~3 Cf ..* . f ~~~~~~~~~~~~~~~~~~~~~~DL(JAP) DL
I I ~~~~~~~~~~~~~~~~~~~~~~~~~~~other Slhr
unrefined sulphur excluding insoluble
sulphur, sulphur
other sulphur sulphur
2 5 9 B, _ _ _ _ _ _ _ _ _ _ _
ex26.01 Tungsten ores -L
________ ~~~~~259 AC __________ _ _
ex 26-01 Gold are and metal ores o
______ radio-active elements .-- . -
ex 26.03 Slag of gold
- ~~~~~~~~~~DL STP -T
ex 27.01 Coal, briquettes 27.01: LS
.C2 Lignite DL (BEL-NIET)
221 49
__ ~~~~~~~~~~~222 3681 _ __
27.04 Coke and semi-coke of coal, DL (BEL) DL ST S T P(-STA)
than for than for
~nanufao- manufac-
tu:re of tue. o~f
;electrodes electrodes
27.0 Coal gas, water gas ST~ fr~
bis ~~~~~~~~~~~~~~~~~~54
ex 27.07 Toluol--- xylols... ID S
I O.
- - - I - . -' * 1
United
States
L/3390/Rev.1
Page 32
I
I
II-
I
I
- - - - - - - - - --
i L/3391/Rev.1
Page 33
Commodity Astria Autria Canada Denmark Benelux France Germany Italy Ireland Japan Norway Portugal Swaden Switzerland United
_________ F.R. Kingdom
27.09 Petroleum.oils crude DL ST -DL
54 B __
27.10 Petroleum oils ...other than DL ST DL DL
crude Fuel oil (medium
and heavy)
Diesel fuel oil,
light fuel oil
.ex 27.11 Petroleum gases and other
gaseous hydrocarbons other
than pure me thane ____ ____54, _______
27.12 Petroleum JellyDLS
ex 27.13{ Paraffin wax . other DL ST
than ozokerite, lignite
54
27.14 Petroleum bitumen ~~DL ST
54
ex 27.16 Cut-backc emulsions D)L ST
DL _ _ _~~~~~5
27.17 Electric current
Chaps Various products in New Cale
28-.431 donia
28.02 Sulphur~~~~~~~~~~~~~~~~~~~w M ~~~ILJAP
I I 254~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 4
United
states
307
307
1The following TSUS numbers are included In the quotas which correspond to appr'nx~.::iately 12 per cent of domestic pr-~duction. All are heading ' .5 0,.0 2,.0 3,.5 5,.0ad.5
All are sub-heading'--' ,I-?f 47 5:
.05, .10, .25, .30, .35, 45, .55, .60 and .65. L/3391/Rev.1
Commodity .
Australia
Austria-
canada
Denmark
Benelux
France
Germany,
Italy
Ireland
aa Nowa Iotua Sweden I. ... ... t~el~l
ex 28.7 Oxy salt AL (BET7LUI1X1
ox 2B.32 Perchlorate of summonia /
28.42 Soda-ash ~nyrus DL
sodium carbonate
28.44i- Thiocyanates____ _____ _________ _________
28.50 Pis-sile- chezdcal>- ...Mr
a,. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~products
Owgmnic of thorlim or -of
uzaniu depleted In Uié235,
exChs -29.'0 Pharmacuticsal products ________ ___ __ _ - -
ex 29.lA F1thol actt B(U)25 'O ___
*ex 29~,14 Citkc acidat ... D(JP)
_______ ~~256 B _ _ _ _ _ _ _ _ _
-P
.ex 29.23 Sodium glutamate DL
*~~~~~~29.26 - - . -- ~~~~~~~~~~~~~~~~~~~~~~~~~~~~259 A* *iP
Ox 29m ...m..L...L I26_____L..N.......L..~...a.. __________I_______
United
states
F -
I .
I. - .--
I
I .
w
I
. -I
---I
United
Kingdom
United
States
Switzerland
I
Portugal
Norway
Sweden.
Japan L/3391/Rev. 1 Page 3
Commodity
Australia
Austria
Canada A
Benelux
France-
Germany,
.P.R.
Italy
Ireland
Japan
Norway.
Portugal
Sweden
Switzerland- United
_____________________ - u~~~~~ . -AL -a a4a r I I --.~ .--. ..--t--- .ig
ex 29.341 (Tetraethyi lead
BQ(US,UK)
DL r- .
254 B
29.44 Antibiotics. Dr, __________ ____
Penicillin,
216 C
ex 30.02 (a) Microbial vaccines ... .P
(b) Imaune serum..
30èveterinary medicaments)21.-
Medicaments (including16 tiblreortioeso
~~ ~Gauze bandages, not impreg- BQ(JAP)
ex 30.04 nated with pharmaceutical
j_______ substances in retail packs ____ ____ _____ ____ ____ _____ ____1_____ 294 ______ -
ex 31.01 Compost ____
~ c 31.02 Fertilizers, nitrogenous
ex 33, Ae ~~~~~~~~~~~~~~~LL
nitrate 222. ___
Superphosphates
- - .- - - -1 I --- - I - --- - I - I - -- -- I I - - - I I - -- I -- - - . .~~~~~~~I I .1
GQ( -UK)
1252
United .
States
1
BTN
ex.31A
I II r - , : - , n - I . i - w4m T - -, . . - . . . 1. 41 I-,
I - -- - --
. -.1 I
I
- . I
.q
I
I I . .
. ......., .-
:L/3391/Rev.1 Page 36
i 1
Commodity
. I I : , I . :
31.04 Mineral or chemical
fertilizers, potassic
_- - - - - -
ex Ch.. 32 Coal-tar dyes
7;. -, ' . ' '
I.
32.05 Synthetic organic
dyestuffs .*. . '
Australia
Austria
Canada
Denmark
Benelux
race
1.PR.
* Italy Lz}?eland
.1 1 _____ I I -
.I.I
Dl=
20 (CZ)
'220
.1
=--- --- L _
(POL)
Others)
242
211
POL)
ex 32.03 Liquid gold (gold paint) . . . .caledonia e--
33.01 Essential oils . .. .. BQ(US)
1 . . .. : . . . . . . . . other than
terpeneless,
of citrus
. . . . . . ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~254
ex 34.03
ex 34.04
'5,
.01
Lubricating prepara-
tions of petroleum or
bituminous materials
ArtificialIwaxes, not
emulsified . . .
(other than o-olkerite
Bligtite wax or peat
~ Wax)
CaseiA, caseinates
and other casein
derivative;- pasen
glues
DL
54
ST
C
I , , . . I - t * I T - *
DL ST
54 C.
.1 - t -- ! -- - -- 7I _ _ --
DL
Animal
Icasein and
deriva
ties
-- - -- | A
es 350
35.05
Egg albumen
...I - - - I I- ',-1I _ ____ ______ _ 4 -_ _ 1
De.ctI~ifl~e soluble
Dextrins,, . -soluble i
BQ(-Lis't A)
Oasein, not
hardened for
use in the
manufacture
of human or
animal-
foodstuffs
244 C
- v fi ' ' K ' ' # - - - - --I - ' I I I I -f -- 11 b b I ' i - I
Norwa
(Portugal
Sweden
Switzerland
United
kingdom
States
I .1 - *. -- **. * AL . _
- 260 DL 1 ,1 1 -I
DL . I
Peppermint
oil excluding
peppermint I
oil of
mitcham type,
crude pepper-
mint oil 1
P50 -_, ACL
4. 1. - - i - - I r - -
I . i - i I _ - J
Casein
I I - I 9 1 -' 9
A1
DL
straches, starch glues- 1 U I | I _
ra I _- I I_ _ 1 .- Ed. -
............-~~~~~~~~~~~~~~~~~~~~~~A
1other than forme OREC countries
*71
i. ., I
I IL -t
4-------
I -1
-- .
i I _ |: 1 - 1
i. . - iI
i - - I .- i .- - - -i 11 - i
Japan
7
I.
I
L
I
I
. I I-- - .. I - --i - I I - - .?
t -- -- 7-
I
I
I
. I .--A
I---- I I
..
I I ---- -I
. I
?l
L
[DI)
L
I -
I
I I
1-?- ---
sl
A
-- I
I
. . 1- /331g/ev.7
Xg 37
I.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BTN ~Comodlty Aiistralla Austria Canada Denmiark Benelux France IGermany i Ita.]. ~Xrdan Jaa ow otgl den $itzerland 'United U
F.-R. . jKingdcrn
and ecXplosives
! I II
r i I
ST
ST
* 54
DID (CZ)
!2Y.
., ,.
ik ST
i 6 v
.B
C
iL
I . f;,
:,:[t
.. .- - -- - - ---__ -- 1- -[-- ' --..
ex 36407 Flints . | j- |_ |L.-| .....-.i I___ 1:__ 1
I__________ I ____ _______ ___ ____ ____ __ ___ __ ...
tFilm in rolls....
7I
BQ(JAP)
I5
4 * 4-.-.-..~~~~~~~~~ _____ . ______________ I _________~~~~~Ii r.,Fv I- II
_ * § _ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- -I- - - -- I; - - - * - - I l -)vri-I_} T
i . i i - i , I i - i I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
37.06) Cinematoraph
37.07) f fil .
DL
except film
for
children s
!cinormato-
graph -
i216
Screen-time
quota
343.10
B
A
- . i - I 4 I 4 '- I -
Wood tar oils
Prepared dressigs
for starchings
Anti-knoc'r
jpreparaetions ...-
IT
|DL
i 1i .. 4 - 4,I- - - i - - . - i -4 I I .
IDL ST
jCbidizing
Inhibitor s,
I addl -
tives . .
154
( BQ(tJS,UK)
DL
|.. based on
tetraethyl
lead
254
B
A1
S i. ''
I1 .
LL
'DL ST
38 .19 Chemical Ifixed DL .
products a...,*|.l Z4ya~lenes | .|||.|iRockat
. , , :. - ._ . t _ . 1 _ - . _ t .. . ' ' % - - - -54
Screen"
time and
tele-
visicfl
screen-
time qwta
j234.13 B .
States
II
l- - I
. . I
Powder
ex Chap.
36
36.06
i Matches
37. 02
n
'outh
B
- - -- -S-cr-e-er
quota
Ilew So
Wales
343.1
Ox 38.09
ex 38.12
38.14
I I -i - i- -, , -? +`
-- - -i i
. . . . ,
I.
!! 4- 1 - - - .-- I- .- -- I . --- - - -1 - . i , - - ---i i , - -
- - t
II
I
f
:
I , .,
I
-
B
f
I
I
I
i
I
i
4
Me I i
. . . . . iI ex 39.01 Adhesive
i
I
Adhesives-
i.
Austria Canada
Denmark Benelux
France Italy
Germany,
P. Ri.
-Italy ..
Ireland
Japan
Norwavy
Portugal Sweden
Switzerland
- *1~ . I _ _ _ _ _ _ _ _ _ _ _ _ _ 'II
.1- IT.
'United
Kingdom ,
Polymerization .... pro- 'JP DL -
ducts P ol.yvinyl Adhe g.ves
chloride
275 B
39.03 Regenerated cellulose . . . . F~svsMtra o
cotton
cellulose).
ex 39:04 Adhesives . _ _ _ _ _ _ __ _ _ _ _ _ __ _ _ _ _ _ _
ex 39.05 Adhersives " dhsie
____________. . . . . . i ~~~~starch .
ex_39.Y P.stic clrtthinrLrZc~
a x~~~a. 08 Ache SI vl:~ ~ ~ ~ ~ ~~~~,B2 DA
40.201
Transmission, conveyor
or elevator belts or
belting of vulcanized
rubber
q I ~~~~~~~~~~~Ii.
40.11! Rubber tyres, tyr'e casec,,
interchangeable tyrean
tyre flaps for wheels of
all Icinds
38.,9238a 1
7
11
I
I
I
I
-L
40.12
Hygienic and Pharma-
ceutical, artiacles
BQ(JTAP)
Inner tubes
tyres, flaps
arid tubular
256 - 1
B- I(JAP) ,
EQ(JAP) B
G 2'I
Rubber tyres
and tubes
for metor-
coycles, bi-
cycles and
tricycles
j 1252
B
Rubber
tyres and
inner
tubes ex-
cept for
aircraft
275 Bi
i i ~~~~~i i 1' I
40.1;? IArticles 6±f apparel ...BQ
rubber vulcanizedd B
I f_______________________ I______________________ ______________
I
Applicable to areas other' than Austria, Belgium, Canada., Denmark, France,
Turkey, Uni±ted Kingdcm, Unrited States * The quota is supplemented by' substantial
Federal Republic of Germany, GreeceP Iceland, Italy,
import l~icensing.
'*A restriction, maintained by South Africa has been nv-tified nn this and other itDms carrying~ the ,am ; sybol, blit South Africa
might appropriate for joint action Category B). e ~
Luxembourg, Netherla.nds, Norway, Portugal, Spain, Sweden, Switzerland,
h-as not been included In She secretariat designations of items which
I
'United
States
t
I f I . o I - ; I - I I
I
i . i i
11 I i i f
-L---
i I I --
i , i 11 - i I i I
I I
I I -1
I
I i
I
i
I
II
I
'I
1II
I
L/3391/Rev.1
i0 li., I - I..
. II
I
- .:. . i 1.
I
?- --T- --
I . I f- ....
I
I
I
I
I
I
i
I
I
I
I
I
If
i
II
-L-
I
i--- L/3391/Rev. 1
BTN Commiodity Australia Austria Canada Denmark Benelux France Germany, Italy Ireland Japan Norway Portugal wdnSizradU
40.14~ Other atce oI' unhardened vulcanized - ~B{
4 HideS and skins I 'ferseew
territories
41.02 Sovine, cattle leather . . . . f ik'7r Ntew DL CFo
ca;edonia ___J____25 9 erec'D
41 0Q0 Sheep' and lamb sicin leather . DL f,:'r netr DL
Caledonia 5 , ____
41.04 Goat and kid skin leather .. D
259 *,
DL
41.08 Patent leather ,.259 A ,C,
42. 02 Leather travel r~"ds DL f -i New
4.3 Articles of apparel and clothing {DL 1
accessories, of leather or of .,I. 29,,
___co-miosition leather 259______ ______ ]--
~~~ ~~Articls f xel ffft.j.r __ ___
ex Ch,1IL Articles of woéd., splintex..board CJfZ. DL(fXzr Tahitii B(vC7.)
wnxd; plywood, blockboard j I I POI L~i ele s
~~217 j ~~~~~~b1~cckboar'd 2
exC 441.0O2 Wood charcoal .- - - -.. *.*{.. ....
__ _ _ _ 259 A
45'.01 Natural cork ,... DTT J AP)
___________ _____________ 256 B _______ _________~~~~~~~~~~~~~~~~~~~~~~~~~~~2 6
45.02 Natural cork in blocks .f DL
_________________________ _______________ ________________________ --~1. 1 ~ .54
46.03 Basketwork, wickerwork .
ex 48,01
JAP.
BQ (YUG)
Articles of'
a kind manu-
,factured by
the blind
cl
I - - ~~~~~~~~~~fI- ____
Newsprint and paper for Periodicals
"Sast zlote to Item 39.07 .
DL
ST
54
CI
United United
Kingdom States
~~~±1~~~-
1- - - - - - 1 .-~ - - - - - I - - I .- i - ~ II & - 1 - - -- II
I
.1
I
I
I i ; -;48.10 Cigarette paper
ex 48.15 Adhesives
ex 49.01 01-04 Books and periodicals, other printed
. -(also:.-. ;.ter, in Ve Eglish language
49.110 - t'1
. 97003) ; ; 0
ex 49.02 .
z 62
I
Newspapers,-Joournals and periodicals,
: other than daily, in Prench
Textiles
-cotton
and' textile articles,
not
50.01 SOlk-wol cocoons . e
50.02 Raw silk..*.
50.03 wSlk vaste.
5c-05_07 Silk yarn .X..
50.09 Woven fabrics of s ...sil
Aprplicable to Ieuloar.i, China (Nationalist), Czechoslovakia, East Germany,
For piece goods the quota is supplemented by substantial import licensing.
CD
/
I I Ir - - i . --7 d-r-.-- - n - E t I
i)' . V)
DL Other
. ems) ,
IM q(. JA? Y -
for56 0
50.04,501
2560 -1
Yarns,
except
woollen
'yarns
Xnade-up
textiles
and
wearing
apparel;
piece-
goods
other tha
woven
woollcn
Fpiec e -
goods
252
09,
an
I . 1i i - I I ,, - iI -
Hong Kong, Hungary, India, Japan, Maeao, Malaysia, Pakistan, Peoples' Rep, off China, Poland, Romania, Yugoslavia and the USSR-
2Hong Kong, Korea and others
*See note to item 39.07 and seet forrelevant BTN numbers.
_ _ ___
.__
- I ; , , I , 4 1 . . .4 - -- I -- I i . -- T i
I . ; . i I I I
r-
i
i
1 4
I
. 209
1 1.242
t
I ..I
I L/3391/Rev.1
BTN - Commodity . Australia Austria Canada Derm ar Benelu Prance =.Q r any, Italy Ireland
] ~ O t'.z1 7) . AP p r
51.04 W oven -fabrics, of man-made fibres .x(A)(PoL) D1L~~t
(continuous) in ding fabrics of Nylon ex. L~L~
monofi. -or strip of heading 51.01 fabrics u~liee except
or .51.02 t r cc e e
17~~~'* ~fabrics .
,Eo 242 211211 22l;
3éo 242 24 24-4. C fl 256
52.01 M4etallized yarn ..
5.3.07 w..orsted yarn ... LL-.ListA) ~BQ(JAP).
sheep's 'wool
for retail sale~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~fr eti
. .. . - . exc~~~~~~~~~~~~~~~l. of horse air
- . . . I . . ~~~~~~~~~~ ani~r n of coarse
53.11 Woven fabrics of sheep's or lambs' -R 1Cji4LiSt A) TQAP
I - fexc~~~~~~~~~~~~~~~~l.. fa'rnishir g
53.12 Wovmen. f'a1br.. n-.- -
.hair -
53.1i3 Woven fabrics of horsehair
54.03 'Flax or'rmI~e Crarn,' Hot: pu± up for
retail sale
54.o4 Flax or ramle yarn, put up for retail
sale
54.05 'Woven fabrics of flax or of ramle
55.01 Cotton, not carded or combed
Separate' quotas are established for IHong Kong.
-i I I i
*1 II
t.
t - I I- . . I -
Japan INorway jPortugal Sweden'ISwitzerland United United
BQ(JAP)
?- i
BQ(POL)
XR( JAP)
i I i - - i - , i i- ~~~21
3560
IXR( JAP)
i I- 4 - - - - . --.. I Ii~~ _____
I~~~~~~~~JRJP
i - i I i I- - - - ,-- -~ 360
i - , , I - - I I - - - - I '- __ ___I
I - - I I I __ _ ___I_
BQ(JAP)
294
.1
- I JII - I
~3Q('AP )
f- .1 p11 ~ ~ 7' --~ i
?? -,AP N,
. . I
1
4-'- -- --- P-
"V.)
tIP 0 Lt . . I
I .? f7
"'1-
7AFJJ
I I A I
I
L i I I I j I
I. V I~~~~~~~~~~~ I .i---------------- ---- .- I I___
I I I .1~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I 'I- - ~
I I I~~- I I0
BQ( POL)
I --- - - I- - _ I - - --Lr-1211 - -I
I ~~~ I I I I I.- t I I ~~~~~~~IBQ(POL-
BQ(POL)
I B
-9. 1 I I I '~~~-i II I_ __ _
I2No discrimination against Poland, in view 'of Federal Republic of Germany,
- -- -- ml v
I - - - - F : F -- I
i
I.
-L-
J-
I -
L-
7-
I'T
I
II
I'
.i
360 B
I
?L
I
A
i
I
A
I
T
I
I
".A
-- I
I
..I
-I-
I
I
I
I
I
I
I . I
I
I
I I
. 1.
I
rt I
I
-1
I
I
I
DL
hn
I
- L- ---
-1
I BQ-(-POL)
1 211
1)
I
I
I
I
I
I
I'
I
I
I
DL
19PI
I
I
I-I -- - 11
II L/3391/Rev. 1
Page 42
'- i ' - ~ ' I1 i I I . I I I ' .IIIII
. f Australia
Austria
Canada
De mark
Beneluxc
France
~ermany,,,
Italy
Ireland, Japan-
Norway
. .1 : I I ~~~~ :~. ~~~ 1~_ _ _ _ _ -- 1
Portugal
DL
8Swedeni~
SwitzerlandI1
United
55.014 'Cotton, DL
carded or combed ____ ____ _ __ ______ ____
__________ ~~~~~~~~~~~~~~~~~~~~~~281 ____ ______
United
States
Restrictions on 55.05 - 55.09 omitted - see Cotton Textile List
ex 56.05 Yarni of. man-made textile fibtre s of (JAP) XR (JAP)
fibres s oh~~~~~~~~~~n. polyesterr inixe~ wItvL
uous or Waste).., J~ol or fine animal
jnIr and arti iicial J275 6
textile fibres
56.06 Yarn of man-made 2 TQ~P
fibres (disconttin-
uous Or-w-aste') i
BQ(JAP)
56,07. Woven fabrics of XRLJAT.t X0R) ) BQ(JAP) _LBQ~ LL(List A) B Jq ) (JAP)y except XR(JTAP)
'man-made fibres, ;lyl on DL2 4of artificial
(discontinuous or fabric xetfbrcfbe unbleacl~ed
waste) fo paddinig BQ(POL) -fabrics
-. ~~~~36(c% D 224 242 C,D 244 10D 5 21124 6
5-x 5~04.. Sisal and.'othei' DL
agave. fibres
57.05 yarm Of true hemp .1fDL
_____ 1~~~~~~~281 B_ _ _
57,06 y-W of .lute j~ecp
, - -II I - - I I I --I~ - j - -I .
'Bilateral quotas for. imports from Hiong Kong, k'oland
2LIoehsing said to be liberal except f Or market disruption 'avoidance
3x4. Raste-m,
European~ countries
- jm N
55-- .0
I COm I dity.
~-Cotton linters
iI
X
34 ;
i
-I
? -.WV a
F 777
I
I
7
I
I
I
- Lp
I L/3391/Rev. 1
Page 43
ff ~~~~~~~~~~~~United
_______ Ial TrladIaGermNowaanyta fswitEeriand
B3TN Commnodity Australia Austria Canada Denmark Benelux ~ France GItal NorwaydenKingdom
57.10 Woven fabrics of Jute XR '~3 ?O Q RV)3 R~f)
210 J',J ,D 2~~~~~~~~-2 ~~ 244 B~~~~~c,:~~ fl, a ~~~304 B,C,D
anc Or d 3'Q(POL CZ)
ex 58.02 Ot-her' carpets ...not
of cotton Lspc'c
________ ~~~~242 C D 244- D
ex 58.-04 W,5ven pile fabrics .. ' . J? XR(JAPI
not of cotton
26 B.294 B 360
ex 5&05 Narrow woven fabrics B~iJAP? BQ(JAP) 7j J.AP XR(JAP')
not of cotton ~~~~~~~~except of
silk
____2:24 2 56 275 294 360
ex 56.06 Woven labels ... not of BQ (jAP BQ ( JAP)
silk
.224 294
ex 58.0.7 Chenille yarn .... 3JAP~
not of cotton or of
silk ~~~~~~~~~~~~~224
e:. 58.09 Tulle and other net EQIJAP~
'-Vt MI; X~~~~~~~~~~~~~~~~~~~~~~~~~VAP'
294
2ueco1i xedn ~ri itecuigcrio~scigadhsinu o4'i itwegigntls hné12'z.adntmr hn914os e qaeyr.Seilcniin
United
State s'
apply to Eastern. area countries, Ireland, anld EPTA c-u-tries (in the case of yarn). ...
Separate qiuot~as are established on this item fnr imports from Hong Kong.
3Fabrics exceeding 150 cn. in, width,
40ther fabrics.
I L/3391/Rev. 1
I~~~~~~~~~~~~~~~~~~~n Unite United
BTN Commodity Australia Austria Canada 'Denmark Benelux éej F.R.. TtalyP l'elAd jap an Norway Portugal Sweden Switzerlandl KgdmSae
ex 59.05 Nets and netting of twine DL fo BQ A
not of cotton fji1 .ng 281p
nets
294
ex:59.07 Textile fabrics, coated, BQ ( JAP)
not of cotton -gum
substances!) 294
ex 59.08 Textile'fabrics,.
inidpregnated, coated,
__ _ _ __ _ _ _ __ _ _ _ __ _ _ __ _ _ __no t_ __ _ _ __ _ _ _ _ _ __o f_ _ ___ _ _ __ _ __co t t o n_ _ _ _ _ _ _ __ _ _ ___ _ _ __ _ _ _ __ _ __ _ _ _ __ _ _ _ __ _ _ ___l __ _ _ _ __ _ __ _ _ _ __ _ _ _ __ _ __e_ _ _ __ _ _ _
derivative preparations) 2-84
ex 59.09 'Text-le fabrics, coated B Q(JAP)_________
or impregnated, not of
_______ cotton(oil~preparations) 294___
ex 59.11 Rubberized textile fabrics jBQ(JAP)
..not of cotton 294
ex 59.12 Textile fabr.Las, otherwise BQ( JAP)
impregnated or coated, not
of cotton ____z94
ex 59.1,3 Elastic fabrics and trimmings XR(JAP, BQ(JAP) BQ(JAP) BQ(JAP) XR(JTAP)-
not of cotton KOR) Ribbons
except of
silk
360 B 224 B 275 B 294 B 360 B
ex 59.15 Textile hosepiping ..not -~BQ(JAP)
of cotton 294________
ex' 59.16 Transmission ,... belts L(KOR JAP) BQ( Jkr)
not of cotton 238,,238. I294
ex 59.17 Machine felt __ _ __ _ 9JAP) _ _ _ _ _ _ _ _ _
ex 60.01 Knitted or crocheted fabric BQ(JAP) BQ(JAP):
..not of cotton not pure
silk
275 294
ex 60.062 Gloves, mittens etc. not -t K)BQ( JP
_____ ~of cotton 2420 __ ___ 294
03___ Stckns oksBQ(JAP) BQ(JAP)' XR(JAP') of
ex 60.03~o~~ Stookings~~~~~~socks..,.not1 I ~ ~ ~ ~ ~~~~~~c- other ~~~other man-made
elastic, n~ot of cotton IcI
than ~~~~than of fibres
hose, 21 ~~pure silk or of wool
whll eo
mainly of
silk or man-f
made fibre,'
in width ~~~~~~~~~value B 294 B 360
-6
I
I
i
i
- 11 L/3391/Rev.1
Page 45
Conanodity
IAustr'ala
Undergarments, 1citted. GQ Q
or crocheted,... Certain
not of cotton r knItted
shirts
_ _214. CC
Aus tria
Canada i
DenmarI
BeneluxI
France Ge many, I
I-- I i - - -. .I I - . J., 1 --c- I 1 ---
: .R. tz;erII) K
I I .1 . I~Bnelx
Italy 'reland.
J~apan
Norway
;Portugal Sweden
;.. . I
XR (JAP)
of spun
rayon or
synthetic
fibres
360
|IDL(P OL)
II
I .,
ex 60.05 Outergarments,... LL BQ(JAP 7OR} LLIBQ IBQ(JAP) Q JAP!LL( LiSt A)IBQ(JAP) | BQ(JAP) ;|B(JAP) I (P) ;
,not of cotton ~ ~ ~~~~~~~~f sJpun (JAP,B of wol .& spec. DLKAttd
knitted cr crcheted Coats, fIbr spun I (JAPt ;S * DL of m miadtted,e
..",not of cotton tJumpers, rayon or KOR) or of cts.) Knitted, ofn, other i man-made
and, similar synthetic fine DL (other a of than fibre or of |
articles fibres t syneic I of pure wool
238.1 Ihair teti . I silkr
238, clO-lmaterials
I l i [ |~~~~~ ~ ~~~~~~~~~~~2381 B ti~ c!Q(POL) tiiij}|
CD D 124 1 211 244 (T D,256
242 CD' ___
t~ ex bO.Ob |nittted. . . I BQ (JATP)
fabPICand
articles, II
elastie- not29
of cotton _ ________________|_|_i____4 ____I
ex 61.01 Men's and boys' j XR(JAPKOR) BQ(HKJAP C BQ(JAP) ! BQ (JAP) IRIJAP)
outergarments, not of ~~~~~~~ ~~spec. cts.)
of cotton synthetic D L (Qther 1 except of man-made
of cotton synth~~~fibesi ats.) other kimonos of fibre
^ l l fibres 0 than Judo Inatural
_________ _______ ________ Outfits __ _ _ _ _ _ _ _ _275 294 3 0_ __ _ _
ex 61.02 Women's, girls and | IA|XR(JAPKOR| IBJA?) S (HK,JAP LL(-L1st A)4BQ(jAP) B|(JA'P) BQ(JAP) XR (JAP)
infants' outergar- of except of & sP. IDL except ofm Ia I
ments not of I synthetic silk, Twoo jDls their excluding | kimonos of man-made
cotton fibres or flax |ets. articles of I of natural. ibre
and exolwexcept 'man-made . 1silk
ding Ikimonos fibres and
kimonos but in- !kimonos
and other Zeluding
typically kimono- I
jJapanese shaped
________[ products garinents 1 I 6 1______
360 D '224 242 C,D 1244 CW256 275 294 360
r ex 61.03|Men-s and boys' under- I BQ(AP) 13q B(HK)! I I3IQ (JAP) |BQ(JAPJ ;--T
garments, ... not of of i an-
cotton Imads fibre
- ~~~~~ ~~~~~~~~~~~~ ~ ~~~~~~~~~~224 24~2 E~ 275 1294 .
'43x 61.04 Women's, girls and B .JA.. BQ(JAP |
infants' undergarments, I . |
not of cotton 27 1294 !_II _. _, ____I _I _I _j94 ____
ex 61.05 Handkerchiefs, not of | I (AP) -BQ(JAP) | IXR)JAP)
cotton rof man- | not of
Made fibre I | ! F sill.k or
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ t224 B I256 B |360 B
B, (HK andt(POL)
specifiedil
Countries)
i
i
II
CID 1 211
1
BQ (POL) i
BQ(JAP)
Knitted, i
other
than
pure silly
275
I BQ(JAP)
1 294
i
".i
i
I
I
? i
I
BQ(POL)
.X(JAP)
of man-made
fibre or of
wool
211
360
_ - "),I
ex ou. 0d
1United
I - !
I I I I I
I . . - - I I I ? -
i
I
I
I
. I
i
I
1
I
2 411
I
i
I
2"12
I I-
Switzerland - United
I .- I.-.... lu
; I'o nadom Page 46
I'--
r.&., '?.
ex 61.06 shawis, scarves., ~~~~of synthetic BQ (fand
nof cotton discortinous linen
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~materials fibres 360
ex 61.09 Corsets ... not of BQ(JAP)
cotton 275
~~~ ~~61.10~~~~Gloves ... not of~~~~~~~ -. - .. ~~BQ(JAP)
cotton 294
ex 62.01 Travelling ragg :.. . 294
ex 62 02 Bed linen, table JAP(POL) BQ(JAP) (POL)
linen .... not of BQ (JK,POL)
cotton 242 255 275 B
ex 62.03 Sacks and bags for BQ (spec. new sacks
packing, not of bags other
cotton.common
other than wool packs
filled
___________ ~~~~242 __ __ _ __ _ __ __ _ __304 _ _ _ __ _
ex 62.04. Tarpaulins, sails BQ (POL)BQ(POL)
- .-..... ...~~~~ . . - ~pneumatic
mattresses
pillows and
- . . ~~~~~~ cushions not __ _ _ _ _ _ _ _ _ _ __ _ _ __ _ _ _ _ _ _ _ _ _ _ _
ex either made-up BQ (JAP)
textile articles Braided lates and
not of cottorn fasterners other
64.01 Footwear with outer BQ(POL) BQ(JAP) BQ(JAP)OLQ(AP
soles and uppers of . o f rubbe , ex-. B (POL)
ubberslasticjhstjc cluding beach,
material sandlasMas 294
2 1, B Z224 5 27 281. 1 21 B 1 .21
6Foo2 Ioa wear. with outer Teatile uppers, BQ (POL) Q (JLBQ V( (AOp)P)BQL
soles of leather... . rubber~ruer excluding Upper of BQ (JAP)
plastic material hose for textile
:~Aeboboots and sports and
~~~~ ~~~~~ ~~~slippers 211
_________ ______ ~~~~ __________________ 211, B ~~~~ ~ 252 BD 259 C D 275 B. 29, 294 B
64.03 Footwear with soles B_______
of wood or cork _________B
64.04 Footwear with soles CQ___________________
of other material B
~U~'Ik weighing not less than 6 1/2 ozs per square yard. Special
Bastern Area countre, the Irish Republic, and EPTA countries. (In the case of yarn).
United United
States-
B
B
pl to
in - . I I .
. . . - I I - - - I - - - -I
I
I -?.?
T
., rm"fflm-f+lv
-I I
.--AIIAI
'12 -- - I , , -
. T" -.-
-
A- 4--a I -f -- I
r- .
F, - ?-, - -?,
? 1/3391/Rev. 1
Page 47
BTN C Yp~~~n i Australia Austria Canada Denmark Benelux France Germany, Ireland Portugal Sweden United
64.05 Parts of footwear DL
ex 65.05, Caps, made up from textile B___ -..--------____(JAP) _______________
fabrics in the piece 294
66.01 Umbrellas and sunshades ... BQ .cts.) BQ(JAP) ._ _ _ _ 294
~~~~~~~~~~~~~~~~~~~~~DL(other cts.) __ __ __ __ ________
66.03 Parts . of articles DL .
failing within 66.01 and _____ __ BQ(JAP) __
67.01 Skins ... from protected -
birds _ _
68014 Friction material ...- BQ JAP,
69.02 Refractory bricks DL(CZ) BQ, _____ ____
69.02 ~~~~~~~~ ~~~~209
69.07 Unglazed setts ... tiles DL(CZ) (other ets.) BQ(JAP) .------- _______________
~~~~ ~~~~~209 excluding BQ/JAP & spec BQ (CZ)
237 common terra cts.) according
cotta 209 to the
242 nature of
~~~~~~~~the 1209
__________________________ _____________________ ~~~ ~ ~~224 product2 256 295
69.08 Glazed setts .. tiles DL (CZ) BQ (JAP) DL (otjer ets:) BQ(JAP)
excluing BQ(JAP& spec.
~~~common ets.) other
~~~~~~~~~~~~~~~~~~~~~~~~~~~terra than common
cotta pottery
~~~~~~~~~~~~~~~~~~~~~~~~~~~~209 209 209
__________________ ~~~~~~~~~~~~ ~~~~~237 B 224 B 242 ____ 256 B 295 __
Tableware ... of
porcelain
Tableware ... of other
kinds of pottery
- - ~~~~~~~~~~~~- - - -
Statuettes ...
1of earthenware or fine pottery.
2Setts, dies and cubes
30ther than articles of common pottery and toilet articles of
BQ (JAP)
DL(CZ)
209
223
224
BQ (JAP)
of earth
ware or
pottery
224
BQ JAP & spec.
cts.
DL (other cts.)
209
242
BQ(JAP) & spec.
cts.)
fine DL (other cts.1)
(-List A)
exept, .rticles
frtoilet
purposes
BQ(POL)BQ(CZ)
209
211
C:244 C,
BQ(-List p.)3
209
BQ(JAP)
256
BQ(JAP)
C 256
GQ (List A)
other than
articles of
common pottery
or stoneware
209
244
BQ(JAP)
275
BQ (JAP)
275
209
294
295
- - - ~~~~~~~~~~~~~~~~~~
294
BQ
294
BQ(POL)
XR (JAP)
not including
articles of
traditional
Japanese
design
369
XR (JAP) not
;including
articles of
japanese
design
211
BQ(POL)
XR(JAP) not
including
articles of
traditional
Japanese
United
States
XR (JAP)
360 B
design
having the longest side of not more than 5 cm, length, of stone
stoneware or fine pottery. *See note to item No. 39.07
69.11
-- -
DL (CZ)
69.12
DL(CZ)
209
217
69.13
209
237
DL(CZ)
209
237 L/339l/Rev.1
Commodity
Classware
Unworked cast or rolled
glass ...
Unworked drawn or blown
glass ...
Australia Austria Canada
DL(CZ)
209,217
Denmark Benelux
DL(CZ)
209,237
France
Germany
F.R.
Italy
DL(CZ)
209, 225
- - . _ _ ___ _
BQ (POL)
211
DL (CZ)1
209,. 227
BQ(CZ)
209, 244
BQ (POL)
211
Ireland Japan
-- -- -
Carboys, bottles, jars ...
of glass
DL(CZ)
209, 223
_ ___-_-_- _
Glassware .. for
table .. purposes
BQ(POL)
BQ(CZ)
209, 211, 224B
- - --
Glass beads. ....
Other articles of
glass
_ ---
BQ(CZ)
209,244B
___________ ___ - - - - - - - - -
Syathetic or re -
constructed precious or
semi-precious stones
LL
220
Norway Portugal Sweden Switzerland United United
Kigdom States
DL
Ca boys
Ca
bottles
n. e. s.
DL
DL
glass
cubes
and
chips
mosaic
281 B
DL
281, B
XR(JAP)
not including
articles of
traditional
Japanese design
360
1Excluding certain types of athermanous glass and of glass for
BTN
ex
Ch: 70
70.04
70.35
70.10
70.13
70.19
70.21
71.03
I
. .
i i I
- - - . - - -
- .. .
.
-
.
. - .-- - - .
diapositives . Commodity
Australia
Austria
Canada
Denmark
Germany Italy
F.R. _
71.07 Gold, unwrought DL DL(JAP)
_________ _____ ~~~~~~~~~~235 C 256 B
71.08
71.11
71.12
71.13
71.14
72.01
Ch.73
chs.73-89
73.01
73.02
_ _
73.12
13,15
73.17
Rolled gold on base metal .. .
Goldsmiths' ... waste or
scrap of gold
Articles of jewellery ...
precious metel
Articles of precious
metal ...
Other articles
precious metal
of
Gold coin
Iron and steel and articles
thereof
Metals and manufactures
Pig iron, cast iron
Ferro-alloys
Galvanized sheet steel -
Alloy steel ..
Tubes and pipes
of cast
DL
235
BQ (POL)
211 B
LL
Tube ,pipe
of gold or
jewellery
220 0
DL1
243
BQ (spec.
cts.)
DL (other
cts.) B
DL
Certain
ferro-2
alloys
DL(JAP)
256 B
DL
DL(JAP)
256 B
256 B
_--
. ._ _
___ __ ._
Ireland Japan Norway |Portugal Sweden
260
DL
DL
260
DL
260 B
DL
260 B
DL
260
B
Restrictive licensing in New Caledonia.
2Ferro-manganese other than carbonized, ferro-silicum, ferro-silico-manganese, ferro-chroile, ferro-silico-chrome, ferro-vanadium
**See note to item 39.07
P
333.1 B
L/339l/Rev.1.
Page 49
- Switzerland United United
.. . Kingdom States
- - ___ .
BTN
ex
ex
_ _ _ _ _ _ _ _ . _ . _
- - .
- - - 4
- -
- - _ _ _-_ _ ____
.
. . .- -
____ ______ ~~~~~~~~~~~~~~~~~~~~~~~~~~-
______
-- - - -
Benelux Franceanoe
I L/3391/Rev.1
Page 50
COMMO ~ Australia Austria. Canada Italy Irrland Japan Norway United
Caad Denmark Benelux France Germany Italy Ireland Japan Norway Portugal Sweden Switzerland United
F.R. Kingdom
73.32 Bolts and nuts BQ(POL) BQ (JAP)
their leaves ____ _____
________________ ~252 B ____
ex 73.40 Trips of iron
76.01 Unwrought DL
and scrap 213 A
79.03 Wrought plates, P(YUG) SQ(POL)
sheet and strip Square or
of zinc re ctangular
220,222
B,C B _ _ _ _ _ _ _ _ _ _
ex Ch.82 Hand tools DL for
Caledonia
243
ex 82.04 -Hand tools
82.09 ,Knives with BQ(JAP) BQ(JAP) BQ (JAP BQ(JAP) BQ(JAP) BQ(JAP)
cutting blades KOR) of stainless & spec. Fixed Table and Table ware
steel cts.) blade kitchen. knives of stain-
DL (other knives less steel
238 B 224 B cts.) B 256 B 275 B 294
82.10 Knife blades L (JAP,
KOR)
82.14 spoons, forks... BQ(JAP, BQ(JAP) BQ (JAP) (JAP) BQ(JAP)
KOR) of stainless except cake Table ware
steel spades, fish of stain-
knives less steel
224 B294
238 B B 256 B 275 B 294 B
ex Ch.83 Various hardware 83.01,02
15
DL for
Caledonia
ex 84.05 ~Certain steam
power ... units _____ . _ _ _ _ 259 A1 ____
ex 84.06
Internal
combustion
piston engines
ex 84.08 Aircraft _ __
parts _____ _____
ex 84.22,
33, 40
Conveyors,
guillotines,
Dresses, etc.
rolls,
256
DL
certain
engines
259 A
~~~~~~~~~~~~~~
DL
B
~~~~~
- -
** See note on item 39.07
United
States
.
256 L/3391/Rev.1
Page 51
BTN Commodity Australia Austria Canada Denmark Benelux France Germany Italy Ireland Japan Nra otgl Sweden Switzerland
Germany ~ ~ ~ ~ ~ Japan Norway Portugal Swotzerland United
____________________________________ ~ ~ ~ ~ ~ ~ ~ ~ ~ F.R Kingdom
ex 84.23 Earth-moving DL -
equipment,
second-hand 213
ex 84.35 Printing machines AL
for newspapers __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _254 B
ex 8438 Healds and heald L
lifters 281
ex 84.40 Machinery and AL
apparatus for
printing wall
___ paper and wrapping
paper 254 B
84.41 Sewing machines BQ & DL(JAP) BQ(JAP)
AL (other for domestic
countries) use and parts
except
furniture and
__________________ ~~~~ ~~~~~~ ~~~~~~~256 B 294 B
ex 84.52 Calclulating machines DL
for computers DL
ex 84.53 Certain statistical DL
machines ...
~~~. _______ ~~~~~~~~~~~~~~~~~~~~~~~259 B
Certain other office
machines
DL
for
ex 84.55 Parts and accessories DL
for the machines for computers
covered by the above
ex-items 84.51-54 _____ ____ 259 B
computers
United
States
p
Dredges
338
ex 84.54 L/3391/Rev.1
Page 52
BTN Commodity Australia Austria Canada Denmark Benelux France Germany Italy Ireland Japan Norway Portugal Sweden Switzrland United Kingdom United States
85.03 Primary cells and BQ(HK) BQ (JAP)
primary batteries
___________________ ________ _______ 242 B,C 256
ex 85.08 Sparking plugs and
metal components
_____________________________ _____________ __________ 252 B
85.10 Portable electric BQ(HK)
battery and magneto
lamps 242 B,C
ex 85.13 Telephone switch- DL
boards (electronic) 5
85.15 Radiotelegraphic BQ(JAP)
and telephonic DL (other cts.) Radiotele- Radar for air-
transmission and phonic and
reception apparatus navigational
transmitters aids for
and televisonn and aircraft
receivers1 receivers ...
242 C 256
ex Electric apparatus DL
25.19 for electric
circuits ... of5 frlctric ... of
certain materials _ _ _ _ _ _ _ _ _ _ _ __ __ _ _ _ _ __281 _ _ _ _ _ _ _ _ _ _ _ _
es ori antennaed 90ai~ Pai'ts includved~n- cabinets and ~s atna
United
Stat~es.
lases ?,r arAte-.=e L/3391/Rev.1
Page 53
BTN Commodity
Australia
Austria
Canada
Denmark
Benelux
France
_ _ _ - - I _ _ _ _ _ _ _ _i_ _ _ _ _ _ _ _ _ _
K Crtain lecric
fl~ament 1Larips
ITermionia.
nid tubes
, valves
.1
Controllers for
electric cputers
d.... ele-etric
- -I wire .
Carbon brushes, arc
amp carbons .
X~SAP I
i360
I
I II
-1.1
I.
..i
I
1I
Spec.
iD v i~-thcrI
It',rs a-i~d
e ce&;eaes
wih semi-
-vdrs
242, )3,(
I ~~~~~~~~ i 1 ~~~~~~ 1
G ernany,
Ital~y
:.Ireland Japaxi
2 B
2Q D AP I I. D
Tube and 'GIertain
'cspiezo-4 ~ or cvit tS
Ie tri~
stals.
259
IDL
~259
A
Norwa t
portal
ISw.eden
-
- - - - - - -- - - I i I I - -- i -- .- .4- . - i - -.W
I-,- ----
--- -1
- - i - - i
I . I I -------T
-1 I I- -'- I i - I I
25 6 ---
I I-
Electrodes I
ifr~ etrmtrid
NQJ ,AP)
Graphite,
trodes
65 25 Insulaators 5.I o sC ezami
bt ~~ecetmaterial eai
h-la hardle; inuatr
¶ $~~~~~~~~~~~~~~~~e'd r obbe r for 28
.1 Tract ~~~DL
Second- DI for New
87.02tio~~iiisLo Di. IFscn..~A~ G o IGtAi of d AL
-transport ofpersons, SAon-UsdorCaeon . Snoqur - emixin
4~~~whee1 ~ ~ han ir agriacuN
213 BI 3-1 1 3 B B 283 .3~___ 1293 B
1 8 c -
switzerland
I -
I
II
I
II
II
4
1 -
I
i
I
1licorsing is a purely formal requirement Involving no restriction.
ox
85.20
85C.21L
.C-x 85.22
85. 2 4 1
Tri tead. TUnyited
Kingdom Statos
...........--
¶ I~~~~~~~~~.. ...
. . I . - - i -- - i
I
I
i- - - . . N - - - - I - -- ---
-- -- - --- 1 4
i I I i I I I
- - --I- I
- I- - i i T- --- 1 4
I
I
I j i I
I -1
4- i i 11
- I
I
I .
-- - -1I
- -1 i i . . - i
4 - . --- I
I
i -
--l - - L - - - I i
----
BTN
i
II
. ,I
I -. - i
i
.i
II
I
.II
I
Ii
T
II
I
-7
I
I
I
I
1I
1
If
7r-
I
i
I
I
I i
i I
i, -
. I
i
I 87.03 Special purpose
motor lorries and
87.04 Chassis fitted with
engines for motor
vehicles
Bodies ... for motor
vehicles ...
87.06
87.07
Parts .. vehicles
falling within
87.01, 87.02 or 87.03
Work trucks ..
Italy
AL (CAN, JAP, SWD,UK,
DL (Others)
254
AL(ATA, SWZ)
for agricultural
vehicles;
AL(CAN,SWD,UK, US);
DL(JAP);
DL(others).
254
256
B
B
AL(ATA,SWZ)
for agricultural
vehicles
AL(CAN,SWD,UK,US)
DL(JAP)
Coachwork for vehi-
cles falling within
87.02 and 87.03
DL(others)
254 B
BQ(JAP)
256 B
t. I
87.10 Cycle.s .. not
motorized
87.12r Pats accnssod-aserie
rof aticlesling fal
within head8n.097oU
Ch.88 Aircraft and
par....
88.02 F Plying machines ...
ZThe United StatMarcerehant MariAe fct 1920 prohibits foreign-built vessels from taking part in tce eoastwise trade of the United States.
-
I
I
, 4 ", ", ??, ", ! ?, ? ,, ?-
?,
,?FTWP7,441%td-
-- .1,
L.. - -.1. 6 1 o 51 .:.
I
- -. !-V
"' 1.
1. L/3391/Rev.1
Page 55
BTN Commodity
AustraIia
Austria
Denmark
Benelux
Fc Prance
Germany,
F.R.
Italy Ireland
Japan
Norway
Portugal
Sweden
Switzerland
I . I , . i- _ _ I I I . .I 1- . I -- i
1 Ships, boats
- ..-other than
arship
___ _ I
- i ! 4 $ .
89.02 [T2ugs-
..
9.03
Light vessels
fire-floats, ..
dredgers ...
i I I i 4 i-
BQ -DL
Pleasure and
spdrtA boats:
Of a gross .
tonage not
exceeding
50 trains
242 B
p....
of° more than
700 metric
h p.
242
DL
Fishing
vessels
more than
10 'years
old
74
C
United
Kingdom
United
States
i
ncluding
air-cushion
vehicles
338 B
redgers
-:8
1 1 ~ ~ ~ ~ ~ ~ ~ ~~~t~~~~~& ~~~speca
90.05 Refracting sect
telescopes a...... J _ LI 0 _ _ __ _ _ _ts._ __:|| : |_
ex 90.08 Cinematographic
cameras 1 1 DL(other cts.,
_ __ _ ___ 2.2 . ._ _ , _______ , _ _ _ _ .___ : _ _ , _ _ _ -_._ - _ _____
90.12 '
I.. _. . -
Omound
optical
microsceIpe 5
Im(HKJA4P A
aIec. etsf) I
4C, Ctr
(other ats,8!
.1 2 ' 1.- C
'O.2e Electrical DL [ |_
measuring etc. other tannf
instruments thermostats,. alpha, beta,
. . ~~~~~~~soutnders, .gammna, X-rays..
navigation (containing
detectors J nuclear iPuel
and - |materials)
regulators
______________________ _____________ ~~ ~ ~~B B
1
T!he tnted States 1erohant Martn~e Act 1920 parohibits or~ei.irbii. vesels 4ro towg part ±fl tha astwise;5 Vrtadx o the United States.
- . I - - . . i I
§ 4 - l -S -~~~~~~~~~
- w-~~~~~~~~~~~~
- -
- - i - i
I --I- - I I I
i i i I - I ---
- . i i i i i -
. . . i
,I "
.I I.: .
Pi
I 8B
F
I
I
I
I
L- L/3391/Rev.1
Page 56
BTN Commodity Australia Austria Canada Denmark Benelux France Germany, Italy Ireland Japan Norway Portugal Sweden Switzeland United Kingdom United States
Ch.93 Arms and ammunition ... _____Jwtea
ex 9 V~Cert~ tnype f rvolver _____
andptos.I.
94.01 ChairBQazOL certain other (PM)
andA 94.03 fundt=w
96.oi Brooms and brushes ... GO"-
ex %* Cartain other brooms and
brushes
97.03 Other toys 7,F;á
Ct.3)
97.05 Car-nival- artiples.._ _ _ __~ _ _ _ _ _ _ _
cx97.08 Horses for rouxibou~t ILi
for Swiss
L i ~~~~~~~~~~~~~~~~~~~~~~~~b (JAP) J
ex 98.01 BUttons ... __ _ _ ____ _ _ _275___
98.15 Vacuum flasic ... B(QL I
_ _ _ _ _ _ _ I _ _ _ _ _ _ _ _ _ _ _ _ __"a l ,
WIkited
a states
-1. L/3391/Rev. 1
Page 57
ANNEX II
Japan - Automatic Import Quota List
(As of 1 January 1971)
Tariff item No. Item of goods
ex 04.05-2
04.06
ex 07.05-2
07.05-4
08-05-2
0.011-(1)
08.31
11.05
13.02-3
ex 16.04-2
ex 16.05-1
ex 17.02-3
ex 19.02
19.04
ex 23.03
ex 23.07-2
ex 26.01-4
27.04
Other birds eggs and egg yolks
Natural honey
Broad beans and peas, for vegetable growing seeds
Other dried beans, for vegetable growing seeds
Fresh bananas
Walnuts
Bananas, provisionally preserved by sulphur dioxide gas or
other preservative gases
Flour, meal and flakes of potato
Shellac and other refined lacs
Preparations of roes of cod (including Alaska pollack) and
of herring, excluding those sterilized by heating in airtight
containers
Scallops, adductors of shellfish and cuttlefish, smoked
Milk sugar (not containing added sugar), containing more
than 90 per cent pure milk sugar
Cake mixes
Tapioca and sago; tapioca and sago substitutes obtained
from potato or other starches
Residues of starch manufacture from maniac, arrowroot, salep,
Jerusalem artichokes, sweet potatoes and other similar roots
and tubers or sago
Compound feeds of more than ¥70 per kilogramme in c.i.f.
value (put up for sale by retail, in containers of a capacity
not more than 25 kg. in net weight) (excluding those
containing not less than 10 per cent by weight of lactose or
not less than 35 per cent by weight of crude protein)
Manganese ore
Coke and semi-coke of coal, of lignite or of peat L/3391/Rev.1
Page 58
Tariff item No.
Item of goods
ex 28.50
28.51-1
ex 28.52-4
ex Chs 29-30
29.43-1
29.43-2
ex 29.43-3
ex 29.44-2
31.04-1
31.04-2
ex 31.05
33.06-1
33.06-2
ex 33.06-3
ex 33.06-5
34.01-1-(2)
37.02-1-(1)
ex 38.19-5-(3)
ex 46.03-2
Radio-active chemical elements (excluding fissile chemical
elements) and radio-active isotopes (excluding fissile
isotopes); compounds, inorganic or organic, of such elements
or isotopes, whether or not chemically defined; alloys,
dispersions and cermets, containing any of these elements,
isotopes or compounds
Heavy hydrogen water
Other compounds, inorganic or organic, of rare earth metals
and compounds, inorganic or organic, of yttrium or of scandium
(nuclear materials or nuclear fuels)
Pharmaceutical products for clinical test
Malt sugar
Sorbose
Other sugars (hexoses and disaccharides)
Antibiotics, other (chloramphenicol, tetracycline and
cycloserine, excluding derivatives of chloramphenicol and
tetracycline)
Potassium chloride
Potassium sulphate
Other fertilizers, composite and complex (excluding Hyponex)
Perfume water including eau de cologne and the like
Toilet powder (including those in cake, paste or liquid form)
Perfumed hair oil, cream, pomade, rouge, and other
preparations of oil, fat or wax (excluding pharmaceutical
products)
Other toilet preparations (excluding pharmaceutical products)
Other toilet soaps
Colour plates and colour film
Cinematographic colour film (excluding those of not less than
35 mm. in width)
Uranium catalysts
"Wara kamasu" (a kind of straw sack used for packing of goods) L/3391/Rev.1
Page 59
Tariff item No. Item of goods
. A _ _ .__ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
ex 51.01-1
53.11
ex 58.09
58.10
ex 71-03-2
ex 73.02-5
74.01-2-(1)
ex 74.01-2-(2)
74.05-2
ex 84.06-1- (1)
84.06-1-(2)
84.06-1-(3)
84.06-1-(4)
ex 84.06-2
84.12
Yarn of man-made fibres (continuous) containing more than
50 per cent by weight of synthetic fibres (excluding
polyvinyl alcohol fibres, polyvinyl chloride fibres and
vinylidene chloride fibres), or acetate fibres
Woven fabrics of sheep's or lambs' wool or of fine animal
hair, containing not less than 30 per cent by weight of sheep's
or lambs' wool or fine animal hair, excluding those used
for piano
Tulle and other net fabrics (but not including woven, knitted
or crocheted fabrics), figured; hand or mechanically made
lace, in the piece, in strips or in motifs: all the foregoing
are wholly of cotton, wool, flax, ramie, synthetic fibres
(excluding polyvinyl alcohol fibres, polyvinyl chloride fibres
and vinylidene chloride fibres) or acetate fibres, or
consisting of a combination of two or more of those fibres,
with or without other fibres
Embroidery, in the piece, in strips or in motifs
Other synthetic precious or semi--precious stones other (other
than polished perforated or similarly worked)
Other ferro-alloys (nuclear materials)
Unwrought copper, containing not more than 99.8 per cent by
weight of copper and used for smelting or refining
Other unwrought copper excluding copper alloy
Other copper foil (excluding those plated with precious
metals and for stamp)
Internal combustion piston engines for motor vehicles,
excluding those for motor vehicles (excluding three-wheeled
motor vehicles) falling within heading No. 87.02 and
No. 87.03 of Customs Tariff Schedules
Internal combustion piston engines for aircraft
Outboard motors
Other internal combustion piston engines
Parts of internal combustion piston engines (excluding pistons,
connecting rods and cylinder blocks)
Air conditioning machines, self-contained, comprising a
motor-driven fan and elements for changing the temperature
and humidity of air L/3391/Rev.1
Page 60
Tariff item No.
84.13
84.14
84.23-1
84.23-2
ex 84.23-3
ex 84.35-1
84.35-2
84.41-1-(2 )
84.41-3
84.43
84.45-1
84.45-2-(2)
84.45-2-(3)
84.45-2-(4)
84.45-2-(5)
84.51-1-(1)
ex 84.51-1-(2)
ex 84.52-1-(1)
84.52-1-(2)
Item of goods
Furnace burners for liquid fuel atomisers), for pulverised
solid fuel or for gas; mechanical stokers, mechanical grates,
mechanical ash dischargers and similar appliances
Industrial and laboratory furnaces and ovens, non-electric
Coal-cutters and parts thereof
Excavators, dredging machines and parts thereof
Excavating, levelling, tamping, boring and extracting machinery,
stationary or mobile, for earth, minerals or ores (for example,
mechanical shovels, scrapers, levellers and bulldozers);
snow-ploughs, not self-propelled (including snow-plough
attachments) and pneumatic pile drivers (excluding rock drills
other than pneumatic)
Printing machines and parts thereof
Machines for uses ancillary to printing
Other sewing machines
Parts of sewing machines; furniture specially designed for
sewing machines and parts thereof
Converters, ladles, -ingot moulds and casting machines, of a
kind used in metallurgy and in metal foundries
Machine-tools
Presses
Shearing machines
Forging machines (including forging rolls)
Other machine-tools for working metal or metallic carbides
(excluding nail making machines and flanging machines)
Typewriters designed to work in electrical connexion with
digital type electronic computers
Other typewriters, western type
Digital type electronic computers and the machines of following
descriptions, if imported with digital type electronic computers,
input units, output units, designed to work in electrical
connexion with the computers above, and controllers belonging
to the machines of all the foregoing (electronic calculating
machines of table type with memory capacity of less than 2,000
bits, excluding those of self-contained printing mechanism and
designed to work in electrical connexion with printing devices)
Other electronic calculating apparatus L/3391/Rev.1
Page 61
Tariff item No. Item of goods
ex 84.53-1
ex 84.53-3
84.54-2
ex 84.56
ex 84.59-7-(1)
ex 84.59-7-(2)
ex 84.61
ex 84.63-2
Digital type electronic computers and the machines of
following descriptions, if imported with digital type
electronic computers, excluding electronic calculating
punches with self-contained mechanism for reading and
punching cards; input units, output units, input-output
units and memory units, designed to work in electrical
connexion with the computers above, and controllers belonging
to the machines of all the foregoing (electronic calculating
machines of table type with memory capacity less than 2,000
bits, excluding those of self-contained printing mechanism
and designed to work in electrical connexion with printing
devices)
Other statistical machines of a kind operated in conjunction
with punched cards (for example, sorting, calculating and
tabulating machines); accounting machines operated in
conjunction with similar punched cards: auxiliary machines
for use with such machines (for example, punching and checking
machines)
Other office machines
Machinery for sorting, screening, separating, washing,
crushing, grinding or mixing earth, stone, ores or other
mineral substances, in solid (including powder and paste)
form; machinery for agglomerating, moulding or shaping solid
mineral fuels, ceramic paste, unhardened cements, plastering
materials or other mineral products in powder or paste form;
machines for forming foundry moulds of sand (excluding brick-
making machines, float type and heavy media type separators
for coal or ore)
Other machinery and mechanical appliances (excluding pelled
feed making machines, automatic coil winding machines, tea
making machines, diving apparatus and dolomite throwing
machines)
Parts of other machinery and mechanical appliances
Valves and similar appliances, for pipes, boiler shells, tanks,
vats and the like, including pressure reducing valves and
thermostatically controlled valves
Transmission shafts, cranks, bearing housings, plain shaft
bearings, gears and gearing (including friction gears and
gear-boxes and other variable speed gears), flywheels, pulleys
and pulley blocks, clutches and shaft couplings (excluding
gears with maximum diameter less than 3,000 mm.) L/3391/Rev.1
Page 62
Tariff item No. Item of goods
ex 85.01-1
85.11
ex 85.13
ex 85.15-3
ex 85.15-4
85.15-5
85.19
ex 85.21-1
ex 85.21-2
85.21-3
ex 85.22-2
Electric generators, with a rating of more than 400,000
kilowatts
Industrial and laboratory electric furnaces, ovens and
induction and dielectric heating equipment; electric welding,
brazing and soldering machines and apparatus and similar
electric machines and apparatus for cutting
Electrical line telephonic and telegraphic apparatus
(including such apparatus for carrier-current line systems),
(excluding electronic telephone switchboards and exchanges)
Radar apparatus (excluding for aircraft)
Radio-telegraphic and radio-telephonic transmission and
reception apparatus; radio-broadcasting and television
transmission and reception apparatus; television cameras;
radio navigational aid apparatus (excluding for aircraft)
and radio remote control apparatus (excluding for aircraft)
Parts of machinery specified in 1,2,3 or 4 of heading No.85.15
of the Customs Tariff Schedules
Electrical apparatus for making and breaking electrical
circuits, for the protection of electrical circuits, or for
making connexions to or in electrical circuits (for example,
switches, relays, fuses, lightning arresters, surge suppressors,
plugs, lampholders, terminals, terminal strips and junction
boxes); resistors, fixed or variable (including potentiometers),
other than heating resistors; switchboards (other than
telephone switchboards) and control panels
Thermionic valves and tubes (excluding cathode-ray tubes for
monochrome television receiver with maximum length of image
face not more than 35.6 cm.)
Transistors and similar mounted devices incorporating semi-
conductors (excluding germanium transistors with a frequency
no more than 30 MH and with a rating no more than l-W, and
integrated circuit with not less than 100 elements in circuit)
[cf. (8) of sub-item 9, item 3 below]
Cold cathode valves and tubes, photo-cathode valves and tubes,
photocells and mounted piezo-electric crystals and parts
thereof; parts of devices incorporating thermionic valves and
tubes, transistors and similar semi-conductors
Electrical goods and apparatus, excluding those suitable for
use solely or principally as parts of machines or apparatus
falling within No. 85.22-1 of the Customs Tariff Schedules L/3391/Rev.1
Page 63
Tariff item No.
Item of goods
87.01
ex 87.02-1
87.02-2
87.02-3
87.02-4-(1)
87.02-4-(2)
87.02-4-(3)
87.02-4-(4)
87.04
ex 87.05
87.06
ex 90.17
Tractors (other than those falling within heading No. 87.07
of the Customs Tariff Schedules), whether or not fitted with
power take-offs, winches or pulleys
Motor vehicles for the transport of persons (including racing
cars, passenger jeeps and combined passenger-cargo cars, but
not including buses falling within heading No. 87.02-2 of the
Customs Tariff Schedules, special transport vehicles such as
ambulances and motor vehicles of track-laying type) (excluding
three-wheeled passenger motor vehicles)
Motor buses or trolleybuses, other than those of track-laying
type
Trucks, vans or lorries, other than those of track-laying
type and shuttle cars (excluding stradle carriers and three-
wheeled passenger motor vehicles
Passenger or cargo motor vehicles of track-laying type
Shuttle cars
Chassis fitted with an engine and cab
Special transport vehicles such as ambulances and motor
vehicles of wheel system
Chassis fitted with engines, for the motor vehicles falling
within heading No. 87.01, 87.02 or 87.03 of the Customs
Tariff Schedules
Bodies (including cabs) for the motor vehicles falling within
heading No. 87.01 or 87.02 of the Customs Tariff Schedules
Parts and accessories of the motor vehicles falling within
heading No. 87.01, 87.02 or 87.03 of the Customs Tariff
Schedules
Medical, dental, surgical and veterinary instruments and
appliances (including electromedical apparatus and ophthalmic
instruments) (excluding blood-vascular suture instruments,
uterotubal ligature instruments, surgical shear, surgical
plaster cutters, bone saw, cathetre for anaethesia, heart
cathetre, breast pump, dental cone, carbide dental bar,
centrifugal moulding machines for dental use, dental units
and lamp for medical use) L/3391/Rev.1
Page 64
Tariff item No. Item of goods
90.20 Apparatus based on the use of X-ray or of the radiations
from radio-active substances (including radiography and
radiotherapy apparatus); X-ray generators; X-ray tubes;
X-ray screens; X-ray high tension generators; X-ray
control panels and desks, X-ray examination or treatment
tables, chairs and the like
90.28-1 Instruments and apparatus, for measuring or checking electrical
quantities
90.28-2 Machines, appliances, instruments or apparatus of a kind
described in heading No. 90.14, 90.15, 90.16, 90.22, 90.23,
90.24, 90.25 or 90.27 of the Customs. Tariff Schedules (other
than stroboscopes), the operation of which depends on
electrical phenomenon which varies according to the factor to
be ascertained or automatically controlled
ex 90.28-3 Instruments or apparatus for measuring or detecting alpha,
beta, gamma, X-ray, cosmic or similar radiations (excluding
those containing nuclear-fuel materials)
90.28-4 Automatic regulators of electrical quantities and instruments
or apparatus for automatically controlling non-electrical
quantities the operation of which depends on an electrical
phenomenon varying according to the factor to be controlled
91.01 Pocket watches, wrist-watches and other watches, including
stop-watches
91.07 Watch movements (including stop-watch movements), assembled L/3391/Rev.1
Page 65
ANNEX III
The following is a list of the restrictions denoted B in the table in Annex I.
These are the products for which, on the basis of information available to the
Joint Working Group, consideration of joint action looking towards removal or
relaxation of restrictions might be fruitful. L/3391/Rev.1
Page 66
X X X X X X X X X X X X XX
X X X X X X X X X X X XX X X X Lr% r,
.1 -i -q
07% "o C) 0 0 C C) -j H N, N
co '_,) " ;? 4-1
",I C\j r?j N CIJ ,?j N tN rN C. L(',tr% "X? U?L-,\D l_') ?,01,0 1,C
all r.) O (1) 0
/3391/:-',e-7. I
, I
.L -.3. cr C -o., BTN No. Australia Austria Canada Denmark Benelux France Germany F.R. Italy Ireland Japan Norway Portugal Sweden Switzerland US UKenu,-,ar!c Bent.elul-tllralnc?
~--r~I I-.-- -
-x
x
.A
x
x
x
X
I Germany.
F.R.
X
X
X
x
x
Y.rcland
Japan INo ra P.-rtugal
x
x
X
x
x
I ~~-- - - ___-7
x
x
x
x
x
X
"X --11
3.SaCdenl ISwitzerland
X
x
X
Us
UK
X
Au!ètra.-Lia
__--
X
x
x
BTU
N'D .
68 .14
69 .08
ex Ch.70
70.0
70,3
70.19
70.21
71,07
71.12
71 .1'
71.14
Oh .73
73.01
73 .15
7317
ex 7(3 .35
79 .03
82. 09
82 ,14
ex84.o8
ex 84.,3 5
ex 84.8
ex 84.ipo-
41
84152-
01
.03
85 .o8
ex 85.20
21
25
,02
7.o0
87 ,04-
n5
87.- ^.6
:-87 0a7
* 87.09
£- nld 12
* Ch.88
88. C,2
I'd t-4
0)
I >
-.r
q -
I I [ f
I L/3391/Rev.1
Page 68
BTN No. Australia Austria Norway Portugal Sweden Switzerland UK US
X X X X X X
X X X X X L/3391/Rev.1
Page 69
ANNEX IV
Indicative List of Items of Particular Export Interest
to Developing Countries
Included in the attached list are twenty-one products or product groups
relating to some forty BTN headings in the inventory, selected by the Group on
Residual Restrictions at its meeting in April 1969 for priority attention. These
products were selected from a more comprehensive list of products of export
interest to developing countries contained in document COM.TD/67 and Corrigenda.
In addition, the list includes certain other items with respect to which
developing countries indicated specific interest in the course of the meeting of
the Joint Working Group. The notations used in the third column are the same as
those used in the consolidated tables in Annex I.1 The list should not be
considered as exhausting the range of products of export interest to developing
countries that could receive priority attention.
Indications in
BTN Product description Indications in table in Annex I
01.01 Live horses, asses, hinnies and mules C
01.02 Live animals of the bovine species C
01.03 Live swine C
02.01 Meat and edible meat offals of headings 01.01,
01.02, 01.03, 01.04, fresh, chilled or frozen C
02.06 A Bacon, ham and other pigmeat offals C
02.06 B Other meat and edible meat offals (except poultry
liver), salted, in brine, dried or smoked C
03.01 Fish, fresh, chilled or frozen C
03.02 Fish, salted in brine, dried or smoked C
03.03 Crustaceans and molluscs including shrimps C
04.02 Milk and cream, preserved, concentrated or sweetened C
1The symbol "C" indicates products in which developing countries in the
Joint Working Group expressed specific interest in regard to the relaxation or
elimination of restrictions maintained by consulting countries.
Products marked "D" relate to the twenty-one product groups discussed in the
Group on Residual Restrictions, in November 1969 and October 1970. Infermation
supplied by governments and other relevant background data and statistics compiled
by the secretariat on restrictions related to these items are included in COM.TD/70,
COM.TD/W/105, COM.TD/W/107, COM.TD/W/118/Rev.1, COM.TD/W/125, COM.TD/79 and their
Addenda and Corrigenda. L/3391/Rev.1
Page 70
BTN Product description Indications in
table in Annex I
04.03 Butter C
04.04 Cheese and curd C
04.06 Natural honey C,D
05.04 Guts, bladders and stomachs of animals (other than
fish), whole and pieces thereof C
05.15 Dried inedible shrimps C
06.01 Bulbs, tubers, etc. C
ex 06.03 Cut flowers C,D
07.01 A Potatoes C,D
07.01 B Tomatoes C,D
07.01 C Other vegetables C
- ex 07.01 C Onions C,D
07.04 Dried, dehydrated or evaporated vegetables C
07.05 Dried leguminous vegetables, shelled C
08.01 Bananas and pineapples C
08.02 Citrus fruits D
08.03 Figs, fresh or dried C
08.04 Grapes, fresh or dried C
08.06 Apples and pears C,D
08.07 Peaches C,D
08.08 Berries, fresh C
08.10 Apples, pears and peaches preserved by freezing D
08.11 Apples. Dears and peaches provisionally preserved D
08.12 Fruit, dried (other than within items 08.01-08.05) C
09.02 Tea C
10.01 Wheat and meslin C
10.02 Rye . C
10.03 Barley C
10.04 Oats C
10.05 Maize C
10.06 Rice C L/3391/Rev.1
Page 71
Indications in
BTN Product description
n ~~~~~~~~~~~~~table in Amnex I
10,07 Buckwheat, millet, etc. C
11.01 Cereal flours C
11.02 Cereal goats and meal, etc. C
11.08 StaroCes, meslin. 0
12.01 Oilseeds and oleaginous fruits C
12.06 Hop cones and lupulin C
12.08 Edible seaweed C
15.02 Unrendered fats of bovine cattle, sheep or goats;
tallow (including"premier jus") produced from those
fats C
15.06 Other animal oils and fats (including neat's foot oil
and fats from bones or waste) C
15.07 Fixed vegetable oils etc. C
15.11 Glycerol and glycerol lyes C
16.01 Sausages and the like, of meat, meat offal or animal
blood C
16.02 Other prepared or preserved meat, or meat offal C
16.03 Meat extracts and meat juices C
16.04 Prepared or preserved fish C
17.01 Beet sugar and cane sugar, solid C
17.;2 Other sugars; sugar syrups, artificial honey ...
caramel C
17.03 Mblasses D
17.05 MolassDs, flavoured or coloured f
19.02 Preparations ... used as infant food or for dietetic
or culinary purposes C
19.04 Tapioca and sago ... and substitutes C
19.08 Biscuits etc. C
20.01 Vegetables and fruits, prepared or preserved by
vinegar or acetic acids C
- ex 20.01 Tomatoes D L/3391/Rev.1
Page 72
Indications in
BTN Product description table in Annex I
20.02 Vegetables prepared or preserved otherwise
than by vinegar or acetic acid C
- ex 20.02 Tomatoes C,D
20.04 Fruit, fruit peel and parts of plants preserved
by sugar C
- ex 20.04 Apples, pears and peaches C,D
20.05 Jams, fruit jellies, marmalades; fruit puree
and fruit paste C
ex 20.05 Apples, pears and peaches C,D
20.06 Fruit otherwise prepared or preserved C
ex 20.06 Apples, pears and peaches D
20.07 Fruit juices (citrus juices etc.) C,D
21.07 Food preparations n.e.s. C
22.05 Wine C,D
22.08 Ethyl alcohol C,D
22.09 Other spirits, liqueurs and other spirituous
beverages C
23.01 Fishmeal C,D
23.02 Bran D
23.04 Oilcake and other residue C
24.01 Unmanufactured tobacco C
24.02 Cigars and cigarillos C,D
25.01 Common salt C
25.02 Unroasted iron pyrites C
25.04 Natural graphite
26.01 Tungsten ores C
26.03 Slag of gold C
28.42 Sodium anhydride C
29.05 Menthol C,D
29.14 Ethylacetate C
29.44 Penicillin, tyrothricin C L/3391/Rev.1
Page 73
Indications in
BTN Product description in
table in Annex I
30.03 Medicaments (including veterinary products) C
ex 33.01 Peppermint oil excluding peppermint oil of
mitcharn type, crude peppermint oil C
34.03 Lubricating preparations of petroleum or
bituminous materials C
34.04 Artificial waxes, not emulsified ... (other than
ozokerite, lignite wax or peat wax) C
35.01 Casein, not hardened, for use in the manufacture
of human or animal feedstuffs C
36.06 Matches C
36.07 Flints C
41.02 Bovine cattle leather and equine leather C,D
41.03 Sheep and lambskin leather C,D
41.04 Goat and goatskin leather C,D
41.08 Patent leather and metallized leather C,D
42.03 Articles of apparel and clothing accessories
of leather C,D
48.01 Newsprint and paper for periodicals C
48.10 Cigarette paper C
50.04/
07 Silk yarns D
51.04 Woven fabrics of man-made fibres C,D
53.07 Worsted yarn C,D
53.10 Woollen yarn for weaving put up for retail sale C,D
53.11 Woven fabrics of sheep's or lambs' wool, cashmere
fabrics C,D
56.07 Rayon woven fabrics; fabrics of synthetic fibre
and spun glass C,D
57.06 Jute yarn C,D
57.10 Woven fabrics of jute C,D
58.02 Other carpets and carpeting; coir mats and matting C,D
60.02 Gloves, mittens etc. ... not of cotton C L/3391/Rev.1
Page 74
BTN Product description Indications in
table in Annex I
60.03 Hose, other than half hose, made wholly or
mainly of silk or man-made fibres, of certain values C
60.04 Certain knitted shirts ... not of cotton C
60.04 Undergarments, knitted or crocheted ... not of cotton C,D
60.05 Outergarments ... not of cotton C,D
61.01 Men's and boys' outergarments ... not of cotton C,D
61.02 Women's, girls' and infants' outergarments ... not
of cotton C,D
61.03 Men's and boys' undergarments ... not of cotton C,D
61.06 Shawls, scarves, mufflers ... not of cotton C
62.02 Bed linen, table linen ... not of cotton C
62.03 Sacks and bags of packing, not of cotton, other
than filled C
62.03 New sacks and bags (other than common sacking),
heavy bags and wool-packs C
64.02 Footwear with outer soles of leather C,D
64.05 Parts of leather footwear C,D
66.01 Umbrellas and sunshades C
69.11 Tableware and household articles of porcelain or china C
69.12 Tableware ... of other kinds of pottery ... C
71.03 Synthetic or reconstructed precious or semi-precious
stones C
71.07 Gold, unwrought except gold foil C
71.12 Tube, pipe of gold or jewellery C
79.03 Wrought plates, sheets and strips of zinc (square
or rectangular) C
85.03 Electric batteries C
85.10 Portable electric battery and magnets, lamps C
85.15 Radio and television reception apparatus, other than
antennae, micro-assemblies C
85.21 Transistors and similar elements with semi-conductors C L/3391/Rev.1
Page 75
BTN Product description Indications in
table in Annex I
85.25 Insulators, of other than hardened rubber C
85.25 Insulators ... of ceramic material C
89.01 Pleasure and sports boats for marine use C
90.05 Refracting telescopes C
ex 90.08 Cinematographic cameras C
90.12 Compound optical microscopes C
97.03 Other toys C L/3391/Rev.1
Page 76
ANNEX V
Notified Restrictions or Restraints Imposed
or Maintained Pursuant to the Long-Term
Arrangement Regarding International Trade
in Cotton Textiles
The following is a list of those items notified to the Joint Working Party
on Import Restrictions which were not discussed in view of the existence of a
special forum to deal with the cotton textile problem. The list comprises only
notified import restrictions and export restraints; hence, additional restrictions
may exist on some or all imports of listed products into the countries shown.
These notifications have also been deleted from the consolidated table. To the
extent that the original notifications included non-cotton items, they remain on
the list of restrictions in annex I.
In general, apart from cases where products are further described in country
boxes, the expression "ex" before the BTN number denotes only that non-cotton
products are excluded from consideration here; all or substantially all the
products in listed BTN sub-headings are subject to restriction in so far as they
relate to cotton goods imported from the indicated sources. For the status of
notifications on non-cotton articles of the same classes, see Annex I.
The symbol "XR" should be taken as an export restraint applied by Japan in
all cases. The symbol "Susp(JAP)" denotes suspension of a restriction against
Japan subject to that country operating an export restraint at an agreed level.
"DL" followed by a country abbreviation also denotes a restraint applied to the
goods of one country only, but "DL" alone refers to a restriction applicable, in
form at least, to all countries or a group of countries.
1List includes only notifications concerning countries parties to the
Long-Term Arrangement. See also note at end of following table. Restrictions on Cotton Textiles1
BTN Australia Canada Benelux France Germany F.R. Italy Denmark Sweden Norway Portugal United States United Kingdom
ex 52.01
ex 52.02
55.05
55 .06
ux Face
_ - I '-
. .'
Italy
marJ?
-F---
Sweden
DL(J;A F)
Norway
7 _
. _ _L
Dt'(LAP)
xcep' for
i series
DL(JAP)
xcept f;r
fisheries
55.07 XR XR XR XR XR DL(JAP) XR -X
55.08 XR Susp(JAP) XR XR Susp(JAP) DL(JAP)- DL(JAP) XR XR
xcluding
grey
.__________ ._______ fabrics
-55.09 XR _usp(JAP) DL DL Susp(JAP) DL(JAP) DL(JAP) XR XR
DL Excoluding
.__________ .___________ _______ fabrics
e 58.01 XR XR XRI XR
ex 58.02 XR DL BQ(POL) XR . - DL(JAP) XR :
Prtal
ited
States
United
Kingdom
XR:
etallized
yarn
Tcottoil)
XR
o$ven fabrics,
Koata1 tfiread
o~f .Cct-toil
MI ^;t I
ex )O, tx
ex 58, 04
ex 58;05
ex 58.06
XR
XR
- if __ . -!i 1 I I L. I . . -
Susp(JAP)
sp(JAP)
Susp(JAP)
XR
XR
XR
Susp(JAP)
Susp(JAP)
L(JAP)
L(JAP)
XR
X.x
.T4
. I
( JAP)
DL(3TJP )
Ii - - --- -- - - - - - -
IXR
Susp(JAP) XR XR XR
x 58.08 XR XR XR | XR
ex 58.09 Susp(JAP) jI XR XIR
58.10 o XXR XIR Xn XR
I ex 59.01 XR XR XR XI
See E: ld jI '1e.
DL(JAP)
DL(JAP)
_ I I . . .I
XR
-I I __ . - i A
DLtJAP)
DL(JAP)
XR
XiR
XR
:I=
0 -.,
CD W)
CD1
H_ _
XR
_
,
. . .
_ .
_
_
Denmar~
- - - - -.- ? ? . . . . . . . . . . .
XR
I
XR
XR
I I
I
I
I BTN Australia Canada Benelux France Germany, Italy Denmark Sweden Norway Portugal United States
F.R. United Kingdom
ex 59.02 XR XR XR
ex 59.03 XR XR XR DL(JAP) DL
Adhesives
ex 59.04 XR XR XR XR DL(JAP)
ex 59.05 XR XR XR XR DL(JAP) DL XR
Excluding Adhesives
fishing
nets
ex 59.06 XR XR XR XR
ex.59.07 XR XR XR DL(JAP) XR
ex 59.08 XR XR XR DL(JAP) XR
ex 59.09. XR XR XR DL(JAP) XR
ex 59.11 _____ XR R Xli DL(JAP) X
ex 59.12 XR R XR X AP) XR DL(JP)X
ex 59.13 XR SRsp(JAP) Xl R XR Xl DL(JAP) L(JAP) R R X9 Xl
ex 59.14 RXR Xl XR R X
ex 59.15 ____ ____ _______ R DL(JA) Xli
~~~~~ ~ ~ (,iP) - -XR
ex L(JAP R Dxep m)X
machihc
felt _ _ _ _ _ ___ _ _ _
ex 60.01 XR XR LJFD(TP
ex 60.02 Xl XR Xl XR DL(JAP) XR
XR 60.03 R XR XR XR Xl DL(JAP) DL(JAP) ZR Xl
ex 60.04DL Xli DL IL( JAP) DL(JAP)Xl i
Certain JDL(POL) BQ(POL) BX(PXR-(PoL
shirts .1_ _ _ _ _ _ _ _ _ _ _ _ _
4
A z ?-
(D W
%O
-4 p
co '
;-1 BTN Australia Canada Benelux France Germany Italy Denmark Sweden Norway Portugal Unted United
F.R States Kingdom
ex 60.05 DL DL Susp(JAP) DL(JAP) DL(JAP) XR XR
Coats, ~Q~~~~~~~~~~~~~~~~~~~~~Bq(POL)
jumpers,
etc.
ex 60.06 X XR KR XR XR DL(JAP) XR
ex 61.01 XR XR DL DL XR DL(JAP) DL(JAP) X XR KR
ex 61.02 XR Susp(JAP) DL DL Susp(JAP) DL(JAP) DL(JAP) XR XR
ex 61.03 P Susp(JAI) DL DL XR DL(JAP) DL(JAP) XR XR
ex 6.04~ XR XR DL XR DL(JAP) DL(JAP) X XR KR
ex 61.05 Susp(JAP) DL DL Susp(JAP) X KR XR
ex 61.oé XR XR XR DL(JAP) XR XR
ex 61.07 XR XR XR X XR KR
ex 610 XR XR XR XR XR XR
ex éi09 X R XR XR DL(JAP) XR XR
ex 61.io XR XR XR DL(JAP) X XR KR K
ex 61.11 R X XI KR X XR KR XR RK
ex.62.01 X XR X KR KR XR DL(JAP) DL(JAP)X KR XR
ex 62.02 PR Susp(JAE) DL s DL P SuSp(JAr) DL(JAP) DL(JAP) X XR KR
___DL(POL) I Q(POL)
ex 62,03 X XR X DL 1R KR
ex 62.04 X X 1R X KRXR B R Q(PQL) X KR
I-, BTN Australia Canada
Benelux
France
Germany,
F.R.
Italy
Denmark
Sweden
Norway
Portugal
T ~ ~ 1 1 F I -- iI - -i I _ I _ i
Susp(JAP)I XR
XR
R.
I - 1 I I - I.
XR
E
XR
1 - I - -- i- - I - - I I
X
XR
- -- I - - --- I I I
i~~~ I _ _ I. | 1 '-
XR Xe
X1R
R
XE R
XR
XE
.XE
f i _ _ _ _ _ _ _ _ _ _ _ .
XR
XR
DL(JAP)
DL(JAP)
: I : - - t- . IE I 1 1 I - -- I
XR
.XR
. . ,_ - I.I I I - - I .- - - _
'The followinS limitations to the coverage of this table should be :ncied:
United
State
XR
- . I XR
XE
XE
XR
XR
XR
XR
Xe.
Articles
cf
bedding
of Cotton
Only restrictions of countries parties to the Lon-Torm Arrigement are S'W1.
For these countries, onJl restrictions included in the Jci.nit Wtorking Groutp exercise are covered, even though
others may be included in the Inventory or may nos have notified at all.
Only restrictions notified as pertaining to particular BT.J classes are $how-;. whilst thoSe relating to the
whole or parts of several chapters are not shown; I.e., this table does not necessarily cover the cotton
textile restrictions covered by the line in Annex I labelled "Chapters 5O.42". except as such items may also
appear under individual BTN four-digit headings.
Australia
BTN
.ex 62.05
ex 65.01
65.03
4
ex 65.05
ex 65.oé
ex 65.07
ex 94.04
ex 97.06
p-iD
HA
0;~
.i
United
Kingdom
_. I Yu
I _____________
t8)
(b)
- (a)
l
- * - .
.
s
.-
i
I |
GATT Library | cr996mp7359 | Report of the Second Session note by the Secretariat | United Nations Economic and Social Council, June 18, 1947 | United Nations. Economic and Social Council and Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment | 18/06/1947 | official documents | E/PC/T/DEL/43 and E/PC/T/DEL/18-46 | https://exhibits.stanford.edu/gatt/catalog/cr996mp7359 | cr996mp7359_90210131.xml | GATT_151 | 319 | 2,354 | UNITED NATIONS ECONOMIC NATIONS UNIES CONSEIL RESTRICTED
AND ECONOMIQUE E/PC/T/DEL/43.
18 June 1947.
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
Report of the SECOND SESSION
Note by the Secretariat
As soon as the Charter discussions have progressed
sufficiently, it is proposed to put in hand the preparation
of a report of the Second Session of the Preparatory Committee.
The Secretariat therefore submit for approval by Heads
of Delegations, the following proposal regarding the form
which this report should take.
It is suggested that the report should follow the form
of the report of the Drafting Committee, rather than that
of the report of the First Session. In the report of the
First Session, considerable prominence was given to the
discussion of principles, which resulted in the evolving of
the text of the draft Charter which was included in the annex
to the report. This was a logical arrangement having regard
to the nature of the discussionsat the First Session. The
Second Session, however, has been concerned with the recon-
sideration and the refining of the text resulting from the
work of the First Session and of the Drafting Committee. It
would therefore seem appropriate that the report should
consist essentially in the presentation of the new draft as it
emerges from the discussions at Geneva.
In so far as it may be desirable to include some summary
of the discussions themselves by way of explanation of the
principal changes made in the Draft Charter at the Second
Session, it is suggested that these explanatory notes be
relegated to an appendix, in order that attention may be con-
centrated on the vital part of the report, i.e., the revised
text of the Draft Charter.
If these proposals are adopted, the report would consist
of :-
(a) a brief introduction;
(b) a draft Charter;
(c) explanatory notes. |
GATT Library | dd767tv3411 | Report of the Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment | United Nations Economic and Social Council, August 20, 1947 | United Nations. Economic and Social Council | 20/08/1947 | official documents | E/PC/T/180. Corr. 1 and E/PC/T/180-186 | https://exhibits.stanford.edu/gatt/catalog/dd767tv3411 | dd767tv3411_92290228.xml | GATT_151 | 310 | 1,948 | UNITED NATIONS
RESTRICTED
ECONOMIC CONSEIL E/PC/T/180, Corr. 1
20 August, 1947
AND ECONOMIQUE ENGLISH ONLY
SOCIAL COUNCIL ET SOCIAL
REPORT OF THE SECOND SESSION OF THE PREPARATORY COMMITTEE
OF THE UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
The following corrections should be made on the pages of
E/PC/T/180 indicated below:
Page 21 - In paragraph 1 of the footnote "proposed amendment
to Article 25 and on Article 25 itself" should read:
"proposed amendment to Article 20 and on Article 20
itself".
Page 25 - The following heading should be added at the top
of the page:
"CHAPTER IV
Section A - Tariffs, Preferences and Internal
Taxation and Regulation"
Page 27 - The text now appearing on page 27 should appear at
the end of page 134 as the concluding part of
Annex A.
35 - in the concluding clause of paragraph 2(b) the
words "under paragraph 6 of Article 22" should read:
"under paragraph 7 of Article 38".
Page 7P - In thè second paragraph of the footnote "Article
34(2)(a)" should read: "Article 31+(3)(b)".
Page 91 - The following heading should be added at the top of
the page:
"Section F - Special Provisions"
Page-95 - In the title of Article 12 the words "of Chapter V"
should read: "of Chapter IV".
Page 96 - In the footnote the word "sub-paragraph" should read:
"paragraph".
Page 107 - In the fourth line of paragraph 1 the word "effected"
should read: "effect".
Page 114 - In the title of the Chapter the word "Agrements"
should read: "Agreements'.'
Page 124 - In the footnote to Article 60(b) the word "that"
should be deleted before the words "the principles
in the second line of sub-paragraph (i) of that note.
In the last paragraph of the same note "(67)" in
the third line from the bottom of the page should be
deleted.
NATI ONS UNlES |
GATT Library | yn284cx1637 | Report of the Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment | United Nations Economic and Social Council, August 19, 1947 | United Nations. Economic and Social Council | 19/08/1947 | official documents | E/PC/T/180 and E/PC/T/178-180 | https://exhibits.stanford.edu/gatt/catalog/yn284cx1637 | yn284cx1637_92290227.xml | GATT_151 | 42,762 | 279,571 | UNITED NATIONS
ECONOMIC
AND
SOCIAL COUNCIL
NATIONS UNIES
CONSEIL
ECONOMIQUE
ET SOCIAL
UNRESTRICTED
E/PC/T/180
19 August, 1947.
REPORT OF THE SECOND SESSION
OF THE PREPARATORY COMMITTEE
OF THE UNITED NATIONS CONFERENCE
ON TRADE AND EMPLOYMENT.
___________
The attached text of the Report has been
prepared by the Secretariat on the basis of
the action taken by Commissions and is sub-
mitted for approval by the Preparatory
Committee.
The remainder of this report will be issued on
Thursday 21 August. E/PC/T/180
page (i)
R E P O R T
OF THE SECOND SESSION OF THE PREPARATORY COMMITTEE OF
THE UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
PART I - INTRODUCTION
1. Establishment of the Preparatory Committee
The Economic and Social Council at its First Session re-
solved on 18 February, 1946 to call an International Conference
on Trade and Employment for the purpose of promoting the
expansion of production, exchange and consumption of good. At
the same time the Council constituted a Preparatory Committee
to elaborate for the Conference an annotated draft agenda,
including a draft convention, taking into account suggestions
which might be submitted by the Council itself or by any
Member of the United Nations.
The Council also charged the Preparatory Committes with
presenting recommendations regarding the date and place of the
Conference on Trade and Employment and which states, if any,
non-Members of the United Nations, should be invited to the
Conference.
2. Stages in the Work of the Preparatory Committee
The First Session of the Preparatory Committee was held
in London from 15 October to 26 November, 1946. In the course
of this Session a draft Charter for an International Trade
Organization was prepared and embodied in a report which was
distributed as Document E/PC/T/33 and published.
The First Session appointed a Dafting Committee to meet
as soon as possible after the First Session for the purpose of
editing the draft Charter produced in London. The Drafting E/PC/T/180
page (ii)
Committec met in New York from 20 January to 25 February, 1947
and recorded the results of its work in a report which was
distributed as Document E/PC/T/34 and later published.
The Second Session of the Preparatory Committee was con-
vened at the European Office of the United Nations in Geneva
on 10 April, 1947. During the course of this Session the
Preparatory Committee transmitted to the Fifth Session of the
Economic and Social Council an interim report indicating the
proposed outlines of the annotated draft agenda and convention
which were being prepared for the full conference and presenting
recommendations concerning the date and place of the Conference
and the Non-Members of United Nations which might be invited to
the Conference. The relevant sections of this interim report
are reproduced in Appendix B to the present report. The reso-
lutions adopted by the Economic and Social Council relating to
the recommendations in the interim report are reproduced in
Appendix C. In accordance with those resolutions the United
Nations Conference on Trade and Employment is to be convened on
21 November, 1947 at Havana, Cuba. Invitations to attend the
Conference are being extended to all Members of the United
Nations and to Albania, Austria, Bulgaria, Eire, Finland,
Hungary, Italy, Pakistan, Portugal, Roumania, Switzerland,
Transjordania, the Yemen, the Indonesian Republic and, through
the Government of the United Kingdom, to Burma, Ceylon and
Southern Rhodesia. In addition, the Allied Control Authorities
in Germany, Japan and Korea have been invited to send qualified
representatives to the Conference in a consultative capacity.
The Specialized Agencies, other appropriate inter-governmental
organizations and certain Non-Governmental Organizations
possessing consultative status in relation to the Economic and
Social Council, have also been invited to be represented at the
Conference. E/PC/T/180
page (iii)
The Second Session of the Preparatory Committee continued
the preparation of the draft Charter or convention. The
draft adopted by the Preparatory Committee at the Second
Session as a basis for discussion at the World Conference
appears as Part II of the present report. Although the
Preparatory Committee has reached a large measure of agreement
on the text to be recommended to the full Conference, it will
be noted that the text is accompanied by a number of notes
indicating the reservations which have been made and the inter-
pretations of the text which are thought necessary in order
to make the exact intention clear. Some of those enabled
reservations to be withdrawn.
In view of the fact that changes have been made in the
text of the draft Charter as it has progressed through the
Preparatory Committee, and particularly in view of the fact
that the order of the articles has been rearranged, the present
report contains in Appendix A a table setting forth in
parallel columns the identifying numbers of comparable provis-
ions in the three versions of the draft Charter which have
been published by the Preparatory Committee in order to
facilitate a determination of the relationship between the
present text and the earlier versions.
In its present report the Preparatory Committee has
refrained from enunciating in detail the principles underlying
the draft Charter. It was felt by the Preparatory Committee
that the observations presented in Part Il of the Report of the
First Session represented a generally satisfactory statement
of the principles which have guided the discussions not only at
the First Session but also, in large measure, at the Drafting
Committee and at the Second Session. Although the Report of
the Second Session will constitute the agenda and basic
"working paper" at the World Conference, the two earlier reports E/PC/T/180
page (iv)
will be regarded as essential parts of the annotation thereto.
It has seemed unnecessary to restate in the two later reports
the principles set forth in the Report of the First Session or
to indicate at length the alterations which were made during
the Drafting Committee stage or during the Second Session, in
order to take account of new considerations and to reconcile
conflicting points of view.
Considering that the objectives underlying the endeavour
to set up the I.T.O. would be promoted if concrete action were
taken by the Members of the Preparatory Committee (who account
for approximately 70% of world trade) to enter into reciprocal
negotiations directed to the substantial reduction of tariffs
and other barriers to trade and to the elimination of preferences
on a mutually advantageous basis, the Governments represented on
the Preparatory Committee adopted a resolution at its First
Session regarding the carrying out of such negotiations under its
sponsorship in connection with, and as a part of, the Second
Session. The governments represented at the Second Session of
the Preparatory Committee are, at the time of the issue of this
report, in the final stages of the negotiations foreseen in the
above mentioned resolution. It is expected that the concessions
resulting from these negotiations, together with such other
provisions as may be appropriate, will shortly be incorporated in
a General Agreement on Tariffs and Trade (1)
3. Participants in the work of the Preparatory Committee.
All members of the Preparatory Committee (2) with the
exception of the Union of Soviet Socialist Republics took part
in the work of the First and Second Sessions and of the Drafting
Committee. The Union of Soviet Socialist Republics indicated
(1) In view of the existence of a Customs Union between Syria and
Lebanon, a Syrian delegation has taken part in the tariff negot-
iations and has been regarded as a contracting party in the
General Agreement on Tariffs and Trade.
(2) The members are:-
Australia, Belgium-Luxembourg, Brazil, Canada, Chile China,
Cuba, Czechoslovakia, France, India, Lebanon, Netherlands,
New Zealand, Norway, Union of South Africa, Union of Soviet
Socialist Republics, United States, United Kingdom. E/PC/T/180
page (v)
that it did not feel able to participate in the work of the
Preparatory Committee as it had not found it possible to devote
sufficient preliminary study to the important questions which
were the subject of the Committee's discussion.
Two specialized agencies (1) and two other inter-
governmental organizations (2) were actively associated with
all the proceedings and many Members of the United Nations non-
Members of the Preparatory Committee (3) and some non-
governmental organizations in Category "A" (4) sent observers
who from time to time gave the Committee the benefit of their
views.
4. Elected Officers of the Second Session
Preparatory Committee:
Chairman - H.E.M. Suetens (Belgium)
Vice-Chairmen:
First Vice-
Chairman - H.E.M. Erik Colban (Norway)
Second Vice-
Chairman - Sir Raghavan Pillai (India)
The Food and Agriculture Organization and the International
Labour Office
(2) The International Bank for Reconstruction and Development
and the International Monetary Fund.
(3) Colombia, Denmark, Mexico, Peru, Poland and Syria sent ob-
servers to the First Session: Colombia and Mexico to the
Drafting Committee, and the following countries to the
Second Session, in addition to those represented at the
First Session:
Afghanistan, Argentina, Ecuador, Egypt, Greece, Iran
Saudi-Arabia, Siam, Sweden, Turkey, Uruguay, Venezuela,
Yugoslavia.
(4) The organizations were:
American Federation of Labor, International Chamber of
Commerce, International Co-operative Alliance, World
Federation of Trade Unions, The International Federation
of Agricultural Producers also submitted its views on
certain points to the Second Session of the Preparatory
Committee. The International Federation of Christian
Trade Unions and the Interparliamentary Union were also
invited to be represented. E/PC/T/180
page (vi)
Elected Officers of the Second Session (cont)
(1)
Commission A:-
Chairman
Vice-Chairman
H.E. Dr. Zdenek Augenthaler
(Czechoslovakia)
Mr. Sergio I. Clark (Cuba)
Hon. L.D. Wilgress
H.E.M. Suetens (Belgium)
H.E.M. Erik Colban (Norway)
H.E. Antonio de Vilhena Ferreira
Braga (Brazil)
(1)
Commission B:-
Chairman
Vice-Chairman
Hon. L.D. Wilgress (Canada)
- M.J. Royer (France)
(l) In order to facilitate simultaneous discussion the Prepar-
atory Committee at the Second Session was divided into two
commissions, each of which consisted of representatives of
all Delegations. Commission A, and its sub-committees,
prepared texts for consideration by the Preparatory Committee
relating to the chapters on Employment and Economic Activity,
Economic Development and General Commercial Policy (with the
exception of the articles relating to Subsidies). Similarly,
Commission B prepared draft texts relating to the chapters
on Purposes, Organization, Restrictive Business Practices
and Inter-governmental Commodity Agreements, as well as the
articles on Subsidies. All drafts were reviewed at the
final plenary meetings of the Preparatory Committee. D R A F T C H A R T E R
E/PC/T/180
page (vii )
I n d e x
CHAPTER I
Article
CHAPTER Il.
Article
Article
Article
Article
Article
Article
PURPOSE AND OBJECTIVES
1.
2 .
3.
4.
5.
6.
7.
EMPLOYMENT AND ECONOMIC ACTIVITY
Importance of Employment, Production and
Demand in Relation to the Purposes of this
Charter.
Maintenance of Domestic Employment.
Fair Labour Standards.
Removal of Maladjustments within the Balance
of Payments.
Exchange of Information and Consultation.
Safeguards for Members subject to External
Deflationary Pressure.
CHAPTER III.
ECONOMIC DEVELOPMENT
Article 8.
Article 9.
Article
Article
Article
10.
11.
12.
Article 13.
Article
Article
14.
15.
Importance of Economic Development in
Relation to the Purpose of this Charter.
Development of Domestic Resources and
Productivity.
Co-operation for Economic Development.
Moans of Promoting Economic Development.
International Investment for Economic
Development.
Governmental Assistance to Economic
Development.
Transitional Measures.
Preferential Arrangements for Economic
Development.
CHAPTER IV.
Section A.
Article
Article
16.
17.
Article 18.
Article 19.
COMMERCIAL POLICY
Tariffs, Preferences, and Internal Taxation
and Regulation.
General Most-Favored-Nation Treatment.
Reduction of Tariffs and Elimination of
Preferences.
National Treatment on Internal Taxation
and Regulation.
Special provisions relating to cinematograph
Films. E/PC/T/180
page ( viii).
Section B.
Article
Article
Article
20.
21.
22.
Article 23.
Article 24.
Section C.
Article 25.
Article 26.
Article 27.
Article 28..
Article 29.
Section D.
Article 30.
Article 31.
Section E.
Article 32.
Article 33.
Article 34.
Article 35.
Article
Article
Article
Article
Section F.
Article
Article
Article
36.
37.
38.
39.
40.
41.
42.
Article 43.
Quantitative Restrictions and Exchange Controls
General Elimination of Quantitative Restrictions.
Restrictions to safeguard the Balance of Payments.
Non-Discriminatory Administrations of Quantitative
Restrictions.
Exceptions to the Rule of Non-Discrimination.
Exchange Arrangements.
Subsidies
Subsidies in General.
Additional Provisions on Export Subsidies.
Special Treatment of Primary Commodities.
Undertaking regarding Stimulation of Experts.
Procedure.
State Trading
Non-Discriminatory Treatment.
Expansion of Trade.
General Commercial Provisions
Freedom of Transit.
Anti-Dumping and Countervailing Duties.
Valuation for Customs Purposes.
Formalities connected with Importation and
Exportation.
Marks of Origin.
Publication and Administration of Trade Regulations.
Information Statistics and Trade Terminology.
Boycotts.
Special Provisions
Emergency Action on Imports of Particular Products.
Consultation.
Territorial Application of Chapter IV - Frontier
Traffic - Customs Union.
General Exceptions to Chapter IV. E/PC/T/180
page (ix)
CHAPTER V.
Article 44.
Article 45..
Article
Article
Article
Article
Article
Article
CHAPTER VI.
Section A.
46.
47.
48.
49.
50.
51.
Article 52.
Article
Article
Section B.
Article
Article
Article
Article
Section C.
Article
53.
54.
55.
56.
57.
58.
59.
Article 60.
Article
Article
61.
62.
Article 63.
Section D.
Article 64.
Article 65.
Article 66.
RESTRICTIVE BUSINESS PRACTICES
General Policy Towards Restrictive Business
Practices.
Procedure with Respect to investigations and
consultations,
Studies Relating to Restrictive Business Practices.
Obligations of Members.
Supplementary Enforcement Arrangements.
Domestic Measures Against Restrictive Business
Practices.
Procedure with Respect to Services,
Exceptions to Provisions of this Chaptor.
INTER-GOVERNMENTAL COMMODITY AGREEMENTS
Introductory Considerations
Difficulties Relating to Primary Commodities.
Primary and Related Commodities.
Objectives of Inter-Governmental Commodity
Agreements.
Inter-governmental Commodity Agreements in General
Commodity Studies.
Commodity Conferences.
General Principles governing Inter-governmental
Commodity Agreements.
Types of Agreements.
Inter-governnental Commodity Control Agreements
Circumstances Governing the Use of Commodity
Control Agreements.
Additional Principles Governing Commodity Control
Agreements .
Administration of Commodity Control Agreements.
Initial Term, Review and Renewal of Commodity
Control Agreements.
Settlement of Disputes.
Miscellaneous Provisions
Relations with Inter-governmental Organizations.
Obligations of Members Regarding Existing and
Proposed Commodity Agreements.
Territorial Application, E/PC/T/180
page (x)
Article 67.
CHAPTER VII.
Section A.
Article
Article
Article
Section B.
Article
Article
Article
Article
Section C.
Article
Article
Article
Article
68
69
70
71.
72.
73.
74.
75.
76.
77.
78.
Section D.
Article 79.
Article 80.
Section E.
Article 81.
Section F.
Article 82.
Article 83.
Section G.
Article
Article
84.
85.
Article 86.
Exceptions to Provisions Relating to Inter-
governmental Commodity Agreements.
ORGANIZATION AND FUNCTIONS
Structure and Functions
Membership.
Functions.
Structure.
The Conference
Composition.
Voting.
Sessions, procedure and officers.
Powers and duties.
The Executive Board
Composition of the Executive Board.
Voting.
Sessions, procedure and officers.
Powers and duties.
The Commissions
establishment and Functions.
Composition and procedure.
The Tariff Committee
The Tariff Committee.
The Director-General and Staff
The Director-General.
The Staff.
Other Organizational Provisions
Relations with other Organizations.
International responsibilities of the Director-
General, Staff, and Members of Commissions.
International Legal Status of the Organiza-
tion. E/PC/T/180
page (xi)
Article 87.
Article 88.
CHAPTER VIII.
Article 89.
Article 90.
Article 91
Article 92.
CHAPTER IX.
Article
Article
Article
Article
Article
Article
Article
Article
93.
94.
95.
96.
97.
98.
99.
100.
Status of the Organization in the territory
of Members.
Contributions.
SETTLEMENTS OF DIFFERENCES - INTERPRETATION
Consultation between Members.
Reference to the Organization.
Reference to the International Court of Justice
Miscellaneous Provisions.
GENERAL PROVISIONS
Relations with Non-Members.
General Exceptions.
Amendments.
Review of the Charter.
Wïthdrawal and Termination.
Entry into Force and Registration.
Territorial Application.
Deposit of Texts. E/PC/T/180
Page (xii)
REPORT OF THE SECOND SESSION
Reference List to aid in Locating the Provisions in
the New York Draft Charter which are comparable with
Provisions in the Draft Charter prepared by the
Second Session.
Number in Geneva Draft
Article 1
Article 2
Paragraph
Paragraph
Article
1
2 )
3 )
Number in New York Draft
CHAPTER 1
Article 1
CHAPTER 111
Article 3
" , paragraph 1
" paragraph 2
Article 4
Paragraph 1
Paragraph 2
Article 4
Paragraph 1
Paragraph 2
Article 6
Paragraph 1
Sub-paragraph 1 (a)
Sub-paragraph 1 (b)
Paragraph 2
Article 2
CHAPTER IIl
Article 8
First sentence
Remainder of the Article
Article 9
Article 10
Paragraph 1
Paragraph 2
Article 11
Paragraph 1
Paragraph 2
Paragraph 3
Paragraph 4
Article 12
", paragraph 1
" , paragraph 2
Article 5
Article 6
" , paragraph 1
No corresponding text
Article 8
" ,paragraph 1
" ,sub-paragraph 1(a)
" , sub-paragraph 1(b)
No corresponding text
Article 7
CHAPTER IV
First sentence of Article 10
Article 9
Article 10
Article 11, paragraph 1
" , paragraph 2
Article 12, paragraph 1
" , paragraph 2
No corresponding text
No corresponding text
No corresponding text E/PC/T/180
Page (xiii)
Number in Geneva Draft
CHAPTER III (cont'd.)
Article 13 a c
Paragraph 1
Paragraph 2(a)
Paragraph 3(a)
Paragraph 4(a)
Paragraph 4(b)
Paragraph 4(c)
Paragraph 5(a)
Article 14
Artïcle 15
CHAPTER IV
Article 16
Paragraph 1
Paragraph 2
Paragraph 2(a)
Paragraph 2(b)
Paragraph 2(c)
Paragraph 2(d)
Paragraph 3
Article 17
Paragraph 1
Paragraph 1(a)
Paragraph 1(b)
Paragraph 1(c)
Paragraph 1(d)
Paragraph 2
Paragraph 3
(b) and (c)
(b) and (c)
and (b)
Article 18
Paragraph 1
Paragraph 2
Paragraph 3
Paragraph 4 (a)
Paragraph 4 (b)
Paragraph 5
Article 19
Article 20
Paragraph 1
Paragraph 2 (preamble)
Sub-paragraph (a)
Sub-paragraph (b)
Sub-paragraph (c)
Sub-paragraph (c)(i)
Sub-paragraph (c)(ii)
Sub-paragraph (c)(iii)
Paragraph 3
Number in New York Draft
Article 13, paragraph 1
paragraph 2(a)
paragraph 2(b)
paragraph 2(c)
No corresponding text
No corresponding text
No corresponding text
No corresponding text
No corresponding text
CHAPTER V
Article 14
paragraph 1
paragraph 2
, paragraph 2(a)(ii)
paragraph 2(a)(i)
paragraph 2(b)
, paragraph 2(c)
No corresponding text
Article 24
paragraph 1
paragraph 1(b)
paragraph 1(c)
No corresponding text
No corres ponding text
Article 24, paragraph 3
paragraph 3, last
sentence.
Article 15
, paragraph 2
paragraph 3, first
sentence.
paragraph 3, second
sentence.
No corresponding text
Article 15, paragraph 3, Proviso
" paragraph 5
Article 15, paragraph 4
Article 25, paragraph 1
paragraph 2 (preamble)
sub--paragraph 2(b)
sub-paragraph 2(c)
, sub-paragraph 2(e)
sub-paragra.ph 2(e)(i)
sub-paragraph 2(eXii)
No corresponding provision
Article 26, paragraph 7 Number in Geneva Draft
CHAPTER IV (Cont 'd.)
Article 21
Paragraph 1
Paragraph 2(a)
Paragraph 2(b)
Paragraph 33(a)
Paragraph 3(b)
Paragraph 3(c)(i)
Paragraph 3(c) (ii)
Paragraph 3(c) (iii)
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 22
4 (a)
4 (b)
4 (c)
4 (d)
4(e)
5
., , ,..,
page (xiv)
Number in New York Draft
Article 26, paragraph 1
paragraph 2(a)
paragraph 2(b)
paragraph 6
paragraph 3(e) and
paragraph 4
paragraph 3(e),
last sentence
paragraph 2(c)
paragraph 4, last
sentence
paragraph 3(a)
paragraph 3(b)
paragraph 3(c)
paragraph 3(d)
No corresponding text
Article 26, paragraph 5
Paragraph 1
Paragraph 2 (preamble)
Sub-paragraph
Sub-paragraph
Sub-paragraph
Sub-paragra.ph
Pararar-ph 3(c.)
Paragraph 3(b)
Paragraph 3(c)
Paragraph 5
Paragraph 5
Article 23
(a)
(b)
(c)
(d)
Article 27,
"
amble and
Article 27,
"
"
"
"
paragraph 1
paragraph 2, pre-
sub-paragraph 2(a)
sub-paragraph 2(b)
sub-paragraph 2(c)
sub-paragraph 2(d)
sub-paragraph 2(e)
paragraph 3(a)
paragraph 3 (b)
paragraph 3(c)
paragraph 4
paragraph 5
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
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Article 24
1(a)
1(b)
1(c)
2
3(a)
3(b)
4(a)
4(b)
5(a)
5(b)
and (d)
and (c)
Paragraph 1
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Paragraph 4
Paragraph 5
Paragraph 6(a)
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Article 25
Article 26
Paragraphs 1 and 2
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Article 28, paragraph 1(e)
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Article 28, paragraph 1(e)
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paragraph 1(d)(ii)
paragraph 1(a)
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paragraph 3
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Article 30, paragraph 1
Article 30, paragraph 2(a),
part
in Number in Geneva Draft
CHAPTER IV (cont'd.)
Article 26 (cont'd.)
Paragraph 3
Paragraph 4
Article 27
Paragraph 1
Paragraph 2
Paragraph 3
Article 28
Article 29
E/PC/T/180
page (xv)
Number in New York Draft
Article 30, paragraph 2(b), in
part
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Article 30, paragraph 3
, paragraph 4(a)
" , paragraph 4(b)
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Article 30, paragraph 6
Paragraph 1(a), (b)
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Article 31
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" , paragraph 4
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Article 16
paragraph 1
paragraph 2
paragraph 3
" , paragraph 4
' paragraph 5
, paragraph 6
paragraph 1, ast
sentence
Article 17
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paragraph 2
paragraph 3
paragraph 4
paragraph 5
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Article 18
1
2
5
6
1
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5(a),
5(c),
6
(b)
(d)
2
5
last
paragraph 1
paragraph 2
paragraph 2(a)
paragraph 2(b)
paragraph 2(c)
No corresponding text
Article 18, paragraph 2(d)
Article 19
paragraph 1
paragraph 2
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Article 19, paragraph
, paragraph 4 E/PC/T/180
page (xvi )
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CHAPTER IV (cont'd.)
Article 36
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Article 37
Article 20
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Article 21
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Article 38
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(b)
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part
" , paragraph 2
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Article 22
"
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"
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Paragraph 3
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Article 39
Article 40
Paragraph 1
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Article 41
Article 42
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Article 4
Introduction
Part 1, sub-paragraph
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Part
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Last
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Article 23
Article 34
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first
, paragraph 1(a),
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second part
, paragraph 2
, paragraph 3
, paragraph 4
, paragraph 5
, paragraph 6
(b)
paragraph-1
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paragraph 3
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Article 38
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Article 38, paragraph 4
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Article 37, introduction
sub-paragraph (a)
, sub-paragraph (b)
sub-paragraph (f)
" , sub-paragraph (g),
Article 25, 2(f)
sub-paragraph (h)
sub-paragraph (i)
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Article 25, paragraph 2(d)
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Article 25, paragraph 2(a)(i)
" , paragraph 2(a)(ii)
paragraph 2(a)(iii)
Paragraph 2 (a)
(a)
(b)
(c)
(d)
(e)
(h)
(a)
(b)
(c)
, paragraph
, paragraph
paragrraph
paragraph
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1
2
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page ( xvii)
Number in Geneva Draft
CHAPTER V
Article 44
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CHAPTER VI
Article 39
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1(a)
1 (b)
1(b)
1(d)
1(e)
2( a)
2(a)
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2(c)
2(d)
Article 46
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Article 41
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Article 42
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paragraph
paragraph
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paragraph
paragraph
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1(a)
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2(c)
1(b)
2(d)
2(e)
Article 43
Paragraph 1
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Article 48
Article 50
Article 51
" , paragraph 1
" , paragraph 2
Article 44
No corresponding text
Article 45
Paragraph 1
Paragraph 2
CHAPTER VI
Article 52
Article 53
" paragraph 1
" paragraph 2
CHAPTER VII
Article 46
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Paragraph
Paragraph
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2
2
3
)
Article 54
Sub-paragraph (a)
Sub-paragraph (b)
Sub-paragraph (c)
Article 60, paragraph 1
Article 52(c)
Article 47
"
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' sub-paragraph (c)
,
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,
,
,
,
,
,
,
,
,
,
, E/PC/T/180
page (xviii)
Number in Geneva Draft
CHAPTER VI (cont'd.)
Article54 (cont'd.)
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Article 55
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Article 16
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(a)
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(c)
(d)
(e)
1(a)
1(b)
2(a)
2(b)
4 (a)
4 (b)
6
1 (a)
1(b)
2
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(b)
(c)
(d)
(d)
(e)
(f)
Number in New York Draft
Article 47, sub-paragraph
" , sub-paragraph
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Article 48
"
"
(d)
(e)
, paragraph 1
, paragraph 2
, paragraph 3
Article 49
"
, paragraph 1
, paragraph 2
Article 51, paragraph 1(a)
" paragraph 1(b)
, paragraph 1(c)
1(d)
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" , paragraph 1(g)
Article 58
and
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Article 60, paragraph 3
)
)
)
)
)
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Article 53(a)
Article 52
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Article 53
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"1 ~~~~~
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Article 55,
(a)
(b)
(b)
(c)
(d)
(e)
paragraph 2
paragraph 3
paragraph 5
paragraph 6
paragraph 7
last sentence Number in Geneva Draft
CHAPTER VI (cont'd.)
Article 62
Paragraph 1
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Article 63
)
Sub-paragraph (a)
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Article 64
Sub-paragraph (a)
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Article 65
Paragraph 1
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Article 66
Article 67
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CHAPTER VII
Article 68
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Paragraph 5
Article 69
Article 70
Article 71
Article 72
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Paragraph 1
Paragraph 2
)
E/PC/T/180
page (xix)
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Article 55, all but last
sentence
Article 56
Article 50
"
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, paragraph 2
, sub-paragraph 1(b)
, sub-paragraph 1(a)
Article 57
, paragraph 1
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Article 60, paragraph 2
Article 59
sub-paragraph
in part
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Article 59, sub-paragraph
in part
sub-paragraph
in part
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in part
(b)
(a),
(a),
(b),
CHAPTER VIII
Article 2
" , paragraph 1
" , paragraph 2
"
, paragraph 3
Article 61
Article 62
Article 63
Article 64
Article 65
" , paragraph 1
" , paragraph 2 E/PC/T/180
Page (xx)
Number in Geneva Draft
CHAPTER VII (Cont'd).
Number in New York Draft
Article 74
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Article 76
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Article 68
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Article 70
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Articles 72 and 74
Article 73
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Article 67
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Article 80
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paragraph
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2 page (xxi)
CHAPTER VII (cont'd.)
Article 84
Paragraph 1
Paragraph 2
Paragraph 3
Paragraph 4
Article 85
Paragraph
Paragraph
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Article 86
Paragraph
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Article 88
CHAPTER VIII
Article 89
Article 90
Article 91
Article 92
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CHAPTER IX
Article 94
1
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Article 81
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Article 82
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Article 84
1
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Article 87
paragraph 1
paragraph 2
paragraph 3
paragraph 4
paragraph 1
paragraph 2
paragraph 3
paragraph 1
paragraph 2
paragraph 3
Article 35(2)
Article 86
Article 86
1
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Article 98
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Article 99
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Article 100
(new paragraph)
(new paragraph)
(new paragraph)
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(new paragraph)
Article 86(1)
Article 36
Article 37 (c)(d)(o)(k)
Article 85
No corresponding text
Article 89
" , paragraph 1
" , paragraph 2
" , paragraph 3
Article 88
" , paragraph 2
" , paragraph 3
Article 88 (4)
Article 88 (5)
No corresponding text. E/PC/T/180
Page 1.
CHAPTER I
PURPOSE AND OBJECTIVES
ARTICLE 1
RECOGNIZING the determination of the United Nations to
promote peaceful and friendly relations among nations
THE STATES parties to this Charter undertake in the fields
of trade and employment to co-operate with one another and with
the United Nations
F o r T h e P u r p o s e o f
REALIZING the aims set forth in the Charter of the United
Nations, particularly the attainment of the higher standards of
living, full employment and conditions of economic and social
progress and development, envisaged in Article 55(a)of that Charter.
TO THIS END they pledge themselves, individually and collectively,
to promote national and international action designed to attain
the following objectives:
1. To assure a large and steadily growing volume of real
income and effective demand, to increase the production, consump-
tion and exchange of goods, and thus to contribute to a balanced
and expanding world economy.
2. To foster and assist industrial and general economic
development, particularly of those countries which are still in
the early stages of industrial development, and to encourage the
international flow of capital for productive investment.
3. To further the enjoyment by all countries, on equal terms,
of access to the markets, products and productive facilities,
which are needed for their economic prosperity and development.
4. To reduce tariffs and other barriers to trade and to
eliminate discriminatory treatment in international commerce. E/PC/T/180
Page 2.
5. To enable countries, by increasing the opportunities for
their trade and economic development on a mutually advantageous
basis, to abstain from measures which would disrupt world commerce,
reduce productive employment or retard economic progress.
6. To facilitate through the promotion of mutual understanding,
consultation and co-operation the solution of problems relating
to international trade in the fields of employment, economic
development, commercial policy, business practices and commodity
policy.
ACCORDINGLY they hereby establish the INTERNATIONAL TRADE
ORGANIZATION through which, they shall co-operate as Members to
achieve the purpose and the objectives set forth in this Article. E/PC/T/180
Page 3.
CHAPTER Il
EMPLOYMENT AND ECONOMIC ACTIVITY.
ARTICLE 2.
Importance of Employment, Production and Demand in
relation to the Purpose of this Charter.
1. The Members recognise that the 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 of domestic concern alone, but is also a
necessary condition for the realisation of the general
purpose and the objectives set forth in Article 1 of this
Charter, including the expansion of international trade,
and thus for the well-being of all other countries.
2. The Members recognise that, while the avoidance of
unemployment or under-employment must depend primarily on
domestic 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 intergovernmental organizations, each of
these bodies acting within its respective sphere and
consistently with the terms and purposes of its basic
instrument.
3. The Members recognise that the regular exchange of
information and views among Members is indispensable for
successful co-operation in the field of employment and
economic activity and should be facilitated by the Organization. E/PC/T/180
Page 4.
ARTICLE 3
Maintenance of Domestic Employment.
1. Each Member shall take action designed to achieve and
maintain full and productive employment and large and steadily
growing demand within its own territory through measures
appropriate to its political, economic and social institutions.
2. Measures to sustain employment, production and demand
shall be consistent with the other objectives and provisions
of this Charter. Members shall seek to avoid measures
which would have the effect of creating balance-of-payments
difficulties for other countries. E/PC/T/180
Page 5.
ARTICLE 4.
Fair Labour Standards.
Each Member, recognising that all countries have a
common interest in the achievement and maintenance of fair
labour standards related to productivity, shall take
whatever action may be appropriate and feasible to
eliminate sub-standard conditions of labour in production
for export and generally throughout its territory. Members
which are also members of the international Labour Organiza-
tion shall co-operate with that organisation in giving
affect to this undertaking. E/PC/T/180
Page 6.
ARTICLES.
Removal of Maladjustments within the Balance of Payments.
1. In the event that a persistent maladjustment within a
Member's balance of payments is a major factor in a situation
in which other Members are involved in balance-of-payments
difficulties which handicap them in carrying out the provisions
of Article 3 without resort to trade restrictions, the
Member shall make its full contribution, while appropriate
action shall be taken by the other Members concerned, towards
correcting the situation.
2. Action in accordance with this Article shall be taken
with due regard to the desirability of employing methods
which expand rather than contract international trade. E/PC/T/180
Page 7.
ARTICLE 6
Exchange of Information and Consultation.
1. The Members and the Organization shall participate in
arrangements made or sponsored by the Economic and Social
Council of the United Nations, including arrangements with
appropriate inter-governmental organizations:
(a) for the systematic collection, analysis and
exchange of information on domestic employment
problems, trends and policies, including as
far as possible information relating to
national income, demand and the balance of
payments.
(b) for consultation with a view to concortod
action on the part of governments and inter-
governmental organizations in the field of
employment policies.
2. The Organization shall, if it considers that the
urgency of the situation so requires, initiate consultations
among Members with a view to their taking appropriate
measures against the international spread of a decline in
employment, production or demand. E/PC/T/180
Page 8.
ARTICLE 7.
Safeguards for members Subject to External Deflationary
Pressure.
The Organization shall have regard, in the exercise
of its functions under other provisions of this Charter, to
the need of Members to take action within the provisions of
this Charter to safeguard thoir economics against deflationary
pressure in the event of a serious or abrupt decline in the
effective demand of other countries. E/PC/T/180
Page 9.
CHAPTER III
ECONOMIC DEVELOPMENT
Article 8
Importance of Economic Development
in Relation to the Purpose of this
Charter
The Members recognize that all countries have a
common interest in the productive use of the world's
human and material resources, and that the industrial
and general economic development of all countries, and
particularly of those in which resources are as yet
relatively undeveloped, will improve opportunities for
employment, enhance the productivity of labour, increase
the demand for goods and services, contribute to economic
balance, expend international trade and raise levels of
real income.
Article 9
Development of Domestic Resources
and Productivity
Members shall within their respective territories
take action designed progressively to develop, and where
necessary to reconstruct, industrial and other economic
resources and to raise standards of productivity through
measures consistent with the other provisions of this
Charter.
Article 8
Wherever the term "industrial and general economic
development" or the term economic development" is
used in this Chapter, it is intended also to include
"reconstruction". E/PC/T/180
Page 10.
Article 10
Co-operation for Economic Development
1. Members shall co-operate with one another, with the
Economic and Social Council of the United Nations, with
the Organization and with other appropriate inter-governmental
organizations in promoting industrial and general economic
development.
2. Subject to any arrangements entered into between the
Organization and the Economic and Social Council and
appropriate inter-governmental organizations, the
Organization shall, within its powers and resources, furnish
any Menber which so requests with appropriate advice
concerning its plans and the financing and the carrying
out of its programs for economic development, or shall
assist it to procure such advice. Such advice or
assistance shall be furnished upon terms to be agreed
and in such collaboration with other appropriate inter-
governmental organizations as will use fully the special
competence of each of them. The Organization shall,
upon the same conditions, likewise and Members in
procuring appropriate technical assistance. E/PC/T/180
Page 11.
Article 11
Means of Promoting Economic
Development
1. Progressive industrial and general economic development
requires among other things adequate supplies of capital
funds, materials, modern equipment and technology, and
technical and managerial skills. Accordingly, no Member
shall impose unreasonable or unjustifiable impediments
that would prevent other Members from obtaining on equitable
terms any such facilities for their Economic development,
and the Members shall co-operate in accordance with
Article 10, in providing or arranging for the provision
of such facilities, within the limits of their power.
2. In order to stimulate and assure the provision and
exchange of facilities for industrial and general economic
development, no Member shall take unreasonable or
unjustifiable action within its territories injurious to
the rights or interests of national of other Members in
the enterprise, skills, capital, arts or technology which
thcy have supplied.
3. The Organization may make recommendations for and
promote international agreement on measures designed to
assure just and equitable treatment for the enterprise,
skills, capital, arts and technology brought from one
Member country to another, including the elaboration and
adoption of a general agreement or statement of principles
as to the conduct, practices and treatment of foreign
investment.
Article 11
The Delegation of Cuba reserved its position regarding
Article 11. E/PC/T/180
Page 12.
4. The term "nationals" as used in Articles 11 and 12
comprises natural and legal persons.
Article 12
International Investment for Economic
Development
1. The Members recognize that, with appropriate safeguards,
including measures adequate to ensure that foreign investment
is not used as a basis for interference in the internal
affairs or national policies of Members, international
investment, both public and private, can be of great value
in promoting economic development and consequent social
progress. They recognize that such development would be
facilitated if Members were to afford, for international
investments acceptable to them, reasonable opportunities
upon equitable terms to the nationals of other Members and
security for existing and future investments. Accordingly
thoy agree to provide, consistent with the limitations
rccognized as necessary in this Article, the widest
opportunities for investment and the greatest security for
existing and future investments.
Paragraph 3 of Article 12 (Drafting Committe Report,
New York) was deleted on the ground that this subject was
already covered by the provisions of Article 89. In this
connection, without prejudice to the usual practice and
procedure under the general principles of international law,
it was agreed that deletion of paragraph 3 would carry no
implication that a Member could not, as under other parts
of the Charter, present a complaint to the Organization
arising out of a violation of Articles 11 or 12 and
affecting the interests of a national of such Member.
Article 12
The Delegation of Australia reserved its position on
Article 12. E/PC/T/180
Page 13.
2. Subject to restrictions imposed in accordance with
the Articles of Agreement of the lnternational Monetary
Fund or with a special exchange agreement entered into
between the Member and the Organization under paragraph 6
of Article 24 of this Charter.
(a) with respect to existing investments or
to future investments after they have been made,
no Member shell impose, directly or indirectly,
requirements on the investments of nationals of
other Members which are appreciably more onerous
than those which the Member imposes in similar
circumstances upon its own nationals or upon the
nationals of third countries, Nevertheless
the following shall not be deemed to be in
conflict with this obligation:
(i) requirements in force at the
time of making the investment
The Delegation of Cuba reserved its position regarding
Article 12.
The Delegation of Czechoslovakia reserved its position
on Article 13.
The Delegation of New Zealand entered a formal reservation
on Article 12 subject to further consultation with its
Government.
The Delegation of Norway deferred for the time being its
decision as to whether or not it could accept Article 12
on the ground that it had not had sufficient time to study this
Article.
Paragraph 2
The word "just" in paragraphs 2(a)(iv) and 2(b) of
Article 12 covers all aspects of the payment of consideration
or compensation, including adequacy and time of payment, from
the point of view both of the payer and of the receiver, and
makes it clear that compensation would not be payable where,
because of a violation of a law in force, property has been
forfeited or taken under public management or occupation
whether by executive action in accordance with pre-existing
law or as a penalty under judicial procedure. Page 14.
or at the time that the Charter
shall have come into force with
respect to the Member, whichever
is later;
(ii) requirements in force at the time
of any substantial addition to the
investment or change in the nature
of the business based upon the
investment, in respect of such
addition or such change;
(iii) reasonable measures to ensure
participation under (iv) below,
by the nationals of the Member
in the future expansion of any
branch of industry within its
territories through increased
investment; Provided that, if
It has been recognized that the provisions of paragraphs
2(a)(iv) and 2(b) are not applicable when the measures of
transfer of ownership have been affected pursuant to the
terms of a treaty of peace or in commodity with other
International agreements related to the conclusion of the war.
The Belgian Delegation wishes to have it recorded that,
even though the word "prior" has not been included in the
text, its interpretation of just consideration or
compensation would include the idea that the amount of
consideration or compensation to be paid should be fixed
"prior" to the property being taken into public ownership
or placed under public management or occupation.
A Member's obligation to ensure the payment of just
consideration or just compensatin to a foreign national
(insofar as it is an obligation to make payment in currency)
is essentially an obligation to make payment in the local
currency of that Member. The extent to which transfers of
such payment into other currencies are to be allowed is for
determination by the Member government in accordance with
its general foreign exchange policy maintained consistently
with the Articles of Agreement of the International Monetary
Fund or with a special exchange agreement executed by that
Member pursuant to Article 24 of the Charter. This shall E/PC/T/180
Page 15.
the nationals of other Members whose
interests are materially affected
believe that the measure taken is
inconsistent with the provisions of
this paragraph, the Member taking the
measure will provide adequate
opportunity for consultation with a
view to reaching a satisfactory
(iv) reasonable measure taken to ensure the
transfer or ownership, in whole or in
part, of any investment within its
other Member to its own nationals, it
being understood that such measure will
provide for the payment of just consider-
ation for the ownership transferred and
that if the nationals of any other Member
believe such provision has not been made,
the Members will provide adequate opportunity
for consultation in the manner described
in (iii) aboe.
(b) Members shall make just compensation if the property,
in which a national of another Member has an interest,
is taken into public ownership or placed under public
management or occupation.
not prevent a country taking action to give effect to any
greater obligations in respect of such transfers as it may have
aceepted in an international agreement , provided that such
action is consistent with its obligations under the Charter and
under the Articles of Agreement of the International Monetary
Fund. A Membe would not however, be fulfilling its
obligation to ensure the payment of just consideration or just
compensation if it restricted the transferebility of such
payments to a greater extent than required by its general
foreign exchange policy as conditioned by the preceding sentence,
In this connection, attention is invited to paragraph (i) of
Article XIX of the Articles of Agreement of the International
Monetary Fund. E/PC/T/180
Page 16.
3. Members shall promote co-operation between national
and foreign enterprises or investors for the purpose of
fostering economic development in cases where such
co-operation appears to thc Members concerned to be
appropriate.
Article 13
Governmental Assistance to
Economic Development
1. The Members recognize that special governmental
assistance may be required to promote the establishment,
development or reconstruction of particular industries,
or particular branches of agriculture, and that in
appropriate circumstances the grant of such assistance
in the form of protective measures is justified. At the
same time they recognize that an unwise use of such measures
would impose undue burdens on their own economics,
unwarranted restrictions on international trade and might
increase unnecessarily the difficulties of adjustment for
the economies of other countries.
2. (a) If a Member in the interest of its programme of
economic development or reconstruction considers it
desirable to adopt any non-discriminatory measure which
would conflict with any provision of Chaptcr IV or with
any obligation which the Member has assumed through
negotiations with any other Member or Members pursuant to
Article 13
The Delegation of Chile reserved its position rogarding
Article 13 pending the Preparatory Committee's action on its
proposed amendment to Article 20 and on Article e itself. E/PC/T/180
Page 17.
Chapter IV, such appIicant Member shall so notify the
Organization and shall transmit to the Organization a
written statement of the considerations in support of
the adoption of the proposed measure.
(b) The Organization shall promptly transmit such
statement to all other Members, and any MEmber which
consider that its trade would be substantially affected
by the proposed measure shall transmit its views to the
Organization within such period as shall be prescribed
by the Organization.
(c) The Organization shall then promptly examine the
proposod measure to determine whether it concurs in it,
with or without modification, and shall in its examination
have regard to the provisions of this Charter, to the
considerations presented by the applicant Member and its
stage of economic development or reconstruction, to the
views presented by Members who may be substantially
affected, and to the effect which the proposed measure,
with or without modification, is likely to have on
international trade.
3. (a) If as a result of its examination pursuant to
paragraph 2(c) of this Article the Organization concurs
in principle in any proposed measure, with or without
modification, which would be inconsistent with any
obligation that the applicant Member has assumed through
negotiations with any other Member or Members pursuant to
The Delegation of China reserved its position on
Article 13 but indicated that it was prepared to recommend
the text of this Article to its Government for further
consideration without committing its Government and while
reserving the right to request re-examination of this
Article at the World Conference. E/PC/T/130
Page 18.
Chapter IV or which would tend to nullify or impair the
benefit to such other Member or Member of any such
obligation, the Organization shall sponsor and assist in
negotiations between the applicant Member and the other
Member or Members which would be substantially affected
with a view to obtaining, substantial agreement. The
Organizaion shall establish and communicate to the
Members concerned a time schedule for such negotiations.
(b) Members shall commence the negotiations
provided for in sub-paragraph (a) of this paragraph
within such period as the Organization may prescribe
and shall thereafter, unless the Organization decides
otherwise, proceed continuously with such negotiations
with a view to reaching substantial agreement in
accordancc with the time schedule laid down by the
Organization.
(c) Upon substantial agreement being reached, the
Organization may release the applicant Member from the
obligation referred to in sub-paragraph (a) of this
paragraph or from any other relevant obligation under
this Charter, subject to such limitations as may have
been agreed upon in the negotiations between the
Memkbers concerned.
4. (a) If, as a result of its examination pursuant to
paragraph 2(c) of this Article, the Organization concurs
The Delegation of India reserved its position on
Article 13 and the whole subject of quantitative
restrictions for protective purposes while stating that
it had reported the text of this Article to its Government
and would make a further statement in this connection upon
receipt of instructions from its Government. E/PC/T/180
Page 19.
in any proposed measure, with or without notification,
Other thon those provided for in paregraph 3(a) of this
Article which would bE. inconsistent with any provision
of Chapter lV, the Organization mey release the applicant
Mer.ber frora any obligation under such provision subject
te such limitations as tho Organization may impose.
(b) If, heving regard to the provisions of
paragraph 2(c), it is established in the course of suoh
examinotion that suoh measure is unlikely to be more
restrictive of international trade then any other
practicable and reasonable measure permitted under this
Charter which could be imposed without undue difficulty
and that it is thc. and most suitabl for the purpose
having regard to the economics of the industry or the
branch of agriculture conerned and to the current
economic condition of the applicant Member, the
Organization shall concur in such measure and grant
such release as may be required to make such measure
(c) If in anticipation of thc conourrenes of the
Organization in the edoption of a measure concerning which
notice has been given under paragraph 2 of this Article,
other then a measure provided for in paragraph 3(a) of
this Article, thcro should be an increse or threatened
inorease in the imoportations of the product or products
concerned, including products which can be directly
The Delegation of Lebanon rescrved its petition on
Article 13 pending the World Conference.
Tho Delegation of New Zealand reserved its position
on Article 13 pending rceipt of instructions from- its
Government. E/PC/T/180
Page 20.
substituted therefo're so substantial as to jeopardize
the plans of the applicant Meber for the establishment,
development or reconstruction of tho industry or
industries concerned, or branches of agriculture
ooncerned, and if no proventive measures consistent with
this Charter can be found which seem likely to prove
effective, the applicant Mem ber may, after informing,
and whichpracticable consultining with, the Organization,
adopt such other measures as the situation may require
pending a determina.tion by the Organization, provided
that such measures do not reduce. imports below the
level obtaining in the mest recent representative period
preceding the date on which the Members original
notification was made under peragraph 2 of this Article.
5. (a) In the casa of measures referred to in
paragraph 3 of this Article, the Organization shall, at
the earliest opportunity but ordinarily within fifteen
days after receipt of the stattment referred to in
paragraph 2(a) of this Article , advise the applicant
Member of the date. by which the Orginization will notify
it whether or not it concurs in principle in the
proposed measure, with or without modfïcation.
(b) In the case .of measures referred to in
paragraph 4 or this ,ArtIcle, the Organization shall, as
provided for in paregraph 5(a), advise the applicant
Member of the date by which it till notify it whether or
not it is released trom such obligation or obligations
as may bo re1event; Provided that, if the applicant
Member does not recive a final reply by the date set by
the Organization, it may, after communicating with the
Organization, institute th, proposed measure after the
Expiration of a further thirty days from such date. E/PC/T/180
Page 210
Article 14
Transitional measures
1, Any Member may maintain any.non-discriminatory
protective measure which iias been imposed for the
establishment, development or record -t:.en of
particular industries and which is not otherwise
pErraitted by this Charterr: Provided that
(a) any such Member who is a signatory
of the General Agreement on Tariïffs and
Trade shall have notified the other
signatory governments not later than
thirty days prior to the day of the
signature of the Agreement of each
product on which any such existing
measure is to be maintained end of the
natur and purpose of such measure, and
Article 14
The Delegation of Chile reserved its position regarding
Article 14 pending the Prcparatory Committee' s action on its
proposed amedment to Article 25 and on Article 25 itself.
The Dalegation of China reserved its position on
Article 14 but indicated that it was prepared to recommend
the text of this Article to its Goverment for further
consideration without committing is Govrnment and while
reserving the right to request re-examination of this
Article at the World Conference,
The Delegation. of India reserved its position on
Article 14 and the whole subject of quantitativerestrictions
for protective purposes while stating, that it had reported
the text of this .Article to its Government and would make a
further statment in this cnnection upon receipt of
instructions fror its Government.
The Delegation of Lebanon reserved its position on
Article 14 pending tje World Confere nce .
The Delegation of New Zealand reservedits position on
Article 14 pending reciept of instructions from its Goverment. E/PC/T/180 -
Page 22.
(b) any such Men.bor not being a signatory of the
Ge.neral Agreement but having signed this Charter
on the day of its general signature, shall have
notified the othar governments signing this
Charter on that day, prior to their signature,
of each product on which any such existing measure
is to be maintained and of tho nature and purpose
of such measure, and
(c) any other such Meber shall, prior to the
day of its signatureof this Charter have notified
the existing, measures that it wishes to maintain
to all governments which signed the Charte.r on
the dy of its gcn..ral signature,, or If this
Charter has lready entered into force, to the
Members of the Organization. Any Member
maintaining any such mea.sure shall within one
month of assuming Membership in the Organization
notify it of themeasure concernd, the
considerations in support of its maintenance
and the period for which it wishes to mainta in
the measure. Thc Organization shall, as soon
as possible, but in any case within twelve months
of such Member assuming Membership in the
Organization, examiniend give a decision
concerning the measure as if it had been
Paragraph 1
The general signature referred to in sub-paragraphs (b)
and (c) abovc, is the signature contemplated at the
conclusion or the World Conference.
The United States Delegation wishes to have it recorded
th t it assumes th-t sub-pragraph (c) is to be interpreted
as permitting Members so notified offectively to question
the nature and extent of such measures before the adherence
of tht Member proposing to maintain them becomes effective. E/PC/T/180
Page 23.
submitted to the Org nization for its concurrance
under article 13.
2. Tho Orgrnization, in making a decision under this Article
specifying a date by which any modification in or withdrawal
of the measure is to be made shall have regard to the
possible need of a mamber for a suitable period of time
in which to make such modifïcation or withdrawal.
3. This Article shell not be construed to apply to
a measure which would be inconsistant with any
obligation that the Member concerned has assured
through negotiations with any other Member or Members
pursuent to Chapter IV or which would tend to nullify
or impair the benefit to such other Member or Members
of any such obligation. E/PC/T/1"0
Page 24.
article 16
Proferential Arrangements for
Eocnomic Development
1. The Members recognize that special circumstances may
justify new preforential arrangments between two or more
countries, not cotemplating a customs union, in the
interest of the prograamms of a ecnomic development or
reconstruction cf one or mora such oountrios. Subject
to such li!itntions as it r.may iiuposo, the Ortanization
nay grant Lby an affirrjotivo vote of two-thirds of
Members voting? aen oxccption to the provisions of
ChaptcrIV to pariait sucli irr.ixi1rnm-nts ta be made.
2. i.ny Member or Members contemplating such an
arrangment shall notify the Organization thereof and
shall transmit to it written statement of the
considerations in support of the adoption of the
arrengment. The Organization shall then examine and
give a decision concerning, the proposal as if it had
been submitted for its concurrence under Article 13.
Any country which would be accorded preferential
treatrment by another country under the proposed arrange
ment shall be rega.rded as an applicant Member for the
purpose of that Article.
The Delegation of Brazil entered reservation on
Articlo 15 pendin. a decision on the question of voting
requirenaents under this Artiolc.
The Delegation of Chilo rcs..rvcd its position on
Article 15 both with respect to the principle of prior
approval end with respect to the voting recuiremcnts of
a two-third majority if the latter is decided upon. E/PC/T/180
page 25
ARTICLE 16
General Most-Favoured Nation .Treatment
1. With respect to customs duties and charges of any kind
il:iposed on or in connection with importation or exportation
or imposed on the international transfer of payments for
imports or experts and with respect to the method of levying
such duties and charges, and with respect to all rulos and
forme.litios in connection with importation and exportation,
and with respect to all matters referred to in paragraphs
1 ar.d 2 of Article 18, any advantage, favour, privilege or
immunity granted by any Member to any product originating in
or dostinicd for any other country, shall bc accorded immediately
aind unconditionally to the'like product originating in or
destined for all other Member countries respectively.
2. The provisions of paragraph 1 of this article shall not
require the alimination, except as provided in Article 179
of any proferences in respect of import dutios or charges which
do not exceed the levels provided for in paragraph 3 of this
Article and which fall within the following decriptions;
Article 16:
The Delegates of Chilo and Lobanon-Syria reserved theïr
position on this Articlo.
Paragraph 2:
The Delegate for Cuba reserved his position in
r' tion to proferonces accorded by differential intornal taxes,
The Delegate of tho Netherlands, reserved his position
on t'lis paragraph provisionally. E./PC/i/180
pt;gc 26
(a) preferences in force exclusively between two
or moro of the territories listed in Annex A
to this Charter, subject to the conditions
set forth therein;
(b) preferences in force exclusively between two
or more territories which on 1 July 1939 were
connected by common sovereignty or relations
of protection or suzerainty and which are
listcd in Annexes B, C, D and ...... of this
Charter, subject te the conditions set forth
therein;
(c) preferences in force exclusively between tho
United Statos of America and the Republic of
Cuba;
(d) preferences in force exclusively between neigh-
bouring countries listod in Annoxos, E, F and ..,.,
of this Charter.
3, Tho margin of preference on any product in respect of
which a preference is plrziàitted under paragraph 2 of this
Article shall not exceed (a) the maximum margin provided for
undc-r the General Agreement on Tariffs and Trado or any
subsequent operative agreement resulting from negotiations
under Article 17, or (b) if not provided for under such
agreements, the margin existing either on 10 April 1947? or
on such earlier date as may have been established for a
Member as a basis for negotiating the Goneral Agreement on
Tariffs and Trade, at the option of such Member. E/PC/T/180
page 27
paragraph shall not be deemed to constitute an increase in a
margin of tariff preference.
The preferential arrangements referred to in paragraph
5(b) bf Article 23 are those existing in the United ICingdom
on 10 Aprïl 1947, under contractual agreements with the Govern-
ments of Canada Australia and New Zealand, in respect of chilled
and frozen beef and veal, frozen mutton and lamb, chilled and
frozen pork, and bacon[and hams]. It is the intention,
without prejudice to any action taken under sub-paragraph (h)
of Part I of Article 1.3, that these arrangements shall be
eliminated or replaced by tariff preferences, and that negotia-
tions to this end shall take place as soon as practicable among
the countries substantially concerned or involved.
The film hire tax in force in New Zealand on 10 April 1947
shall, for the purpose of this Charter, be treated as a customs
duty falling within Articles 16 and 170 The renters' film quota
ln force in New Zealand on 10 April 191+7, shall for the purposes
of this Charter be treated as a screen quota falling within
Article 19. E/ PC/T/J.SO
Page 28ARTICLE 17
Reduction of Tarilfs and Elimination of Preferences
1. Each Mtembar shall, upon the reqest0f the Organization,
enter into and carry out with such other Member or Members as the
Organization may specify, negotiations directed to the substantial
rcduction of tariffs and other chergss on iniports and exports and
to thu elimination of tha preference referred to in paragraph 2 of
Artic1i 16 on a raciprocl zand mutuall. - advantageous basis. Those
negotiations shall proceed in accordance with the following rules
(a) In the negotiations relatingto any specific product
(i) when a reduction is negotiated only in the iost-
favoured-nition rate, such reduction ;hall op;7rate
automatically to reduce or eliminate the margin of
reference applicable tc that product;
(ii) whcsn a reduction is negotiated only in the
preferential rata, the most-favoured-nation rate shall
automatically be reduced to the cxtent of such
reduction;
ARTICLE 17
The provisions of this article do not prevent members from conclu-
dine. now, or maintaining existing, bi-luteral tariff agreements which are
not incorporated in tha Gneral Agreement on tariffss and Trade, provided
that such agreements are consistent with the relevant principles of
Article 17 and that the concessions arising out of such agreements are
generalized to all members in accordance with Article 16.
Paragraph 1
The undertaking to negotiate regarding pref'erences necessarily
implies that prior international commitments to grant particular
Preferances will not bc permitted to frustrate the undertaking to
n.otiate. For this reason thu provisions of sub-paragrawh 1(a) of the
New York draft have becn omitted from the Charter as beinbliziplicit.
Obviously any agreement reached affecting preferences provided for -.
in any prior commitment would require, in order to be implemented, such
change in tha latter as miiht be necessary to give eff ct ta the
agreement, This change would either have to be agreed between the
parties to the prior commitment or, if they could not agree, the party
wishing to make the change, in order to proceed, would have to
terminate the prior commitment in accordance with its terms. E/PC/T/13O
page 29
(iii) when it it agreed that reductions will be
nnegotiated in both the most-f'avoured-natiori rate and
thù preferentia1 rate, the reduction in cach shall be
that agreed by the parties to the negotiations;
(iv) no rnargin of preferencu shall be increased.
(b) The binding of low tariffs or of tariff-free treatment
shall in principle be~ recognized as a concession equivalent
in valua to the substantial reduction of high tariffs or
the elimination of tariff preferences.
(c) Account shall be taken of any concessions which either
Meber is already extending to the other Member by virtue of
previous negotiations regarding tariffs and preferences
pursuant to this Article,.
(d) The results of such negotiations shall be incorporated
in the General Agreement on Tariff's and Trade, signed at
....... ....on .,. y 1947, by agrier,1ent with
the parties to that Agreerant, and thereupon the parties to
such negotiation shall bacoiae contracting parties to the
General Acreement on Tariff Trade if they are not so already.
2. If any Mearber considers that any other Member has failed to
fulfil its obligations under paragraph 1 of this Article, such
Member may refer the matter to the Organization which, after
investigation, shall mçalc appropriate recommendations to the Membars
concerned. If the Organization finds that a Member has failed
without sufficient justification, having regard to its economic
position and the provisions of the Charter as a whole, to carry
out negotiations within a reasonable period oe time in accordance
with the requirements of para-raph 1 of this Article, the Organi-
zation may determine that any Member or Members shall, notwithstand-
ing the provisions of Article 16, be entitled to withhold from the E/P'C/T/180)
Page 30
trade. of the other Member any of the tariff benefits which may
have been negotiated pursuant to paragraph 1 of this Article, and
embodied in Part I of the General Agreementon Tariffs and Trade.
If such benefits are in fact withhold, so. as to result in the
application to the trada of the other Members of' tariffs higher
than would otherwise have been applicable, such other member shall
then be f ree, within sixty days after such action is taken, to
withdraw from. the Organization upon tha expiration of sixty days
from the date on which written notice of mach withdrawal is
recivedby thae Organization.
3. The, provisions of this Article shall oparate in accordance
with the provisions of Article 81. E/PC/T/180
page 31
ARTICLE 18
National Treatment on Internal
Taxation and Regulation
1. The products of any Member country imported into any
other Member country shall, be exempt frotm internal taxes and
other internal charges of any kind in excess of those applied
directly or indirectly to li'c products of national oriLin.
Moreover, in casas in which there is no substantial domestic
production of like products of national origin, no Member
shall apply new or increased internal taxes on the products
of other Member countries for the purpose of affording pro-
tection to the production of directly competitive or substi-
tutable products which are not siLiilarly taxed; existing
interna, taxes of this kinri shall bc subject to negotiation
for thoir reduction or ehinination in the :-..anher provided
for in respect of tariffs and preferences under Article 17.
2. Thc products of any Member country imported into any
other Member country shall be accorded treatment no less
favourable than that accorded to like products of national
origin in respect of -1l laws, regulations and requirements
affecting their internal sale, offering for sale, purchase,
transportation, distribution, or use. This paragraph shall
not prevent the application of differential transportation
Article 18,
The Delegate of 'Norway rcsorvcd his position on
this Article.
Paragrnrph 1,
The Delegate for China reserved his position
provisionally and proposed the deletion of the
second and third sentences.
Tho Delegate for Chile reserved his position
on the second nid third sentences,
The Delegate for Cuba resorvcd his position
and proposed' a new para-raph pcriittinG the
exception of domestic products frorn internal
taxes for development purposes. E/PC/T/180
page 32
charges which ere based exclusively on the economic operation of
the means of transport and not on the nationality of the product,.
3. In applying" tho principles of paragraph 2 of this Article
to internal quantitative regulations relating to the mixture,
processing or use of products in specif ied amounts.or proportions,
the Members shall observe the following provisions:
(a) no regulations shall be made which, formally or
in effect, requires that any specified amount or
proportion of the product in respect of which such
regulations are applied must be supplied from
domestic sources;
(b) no MeLnber shall, formally or in effect, restrict
the mixing, processing or use of a product of which
there is no subtantial domestic production with a
view to affording protection to the domestic
'production of a directly competitive or substitutable
product.
4'. The provisions of paragraph 3 of this Article shall not
apply to:
(a) any internal quantitative regulation relating to
cinematograph films and meeting the requirements of
Article 19;
Paragraph 3
The Delegate of Chile reserved his position on this
paragraph.
Paragraph 4.
The Delegate for New Zealand proposed the deletion
of the words ''shall not be modified to the detriment of airports
and" and the addition of the following sentence:
"Subject to any modification which may have been made as the
result of negotiation prier to the entry into force of this
Charter, no action shall be taken to modify any such ricasure to
the detriment of inports unless the principal suppliers of the
goods concerned have been notified of the proposed action and given
full opportunity to negotiate thereon."
lie reservod his position on sub-paraCraph (b) pending
further consideration. E/PC/T/180
pa ge 33
(b) any other measures of Internal quantitative control
in force in any Member country on 1 July 1939 or
10 April 19'47 at th.a option oi' that Member Pro-
vided that any such measure which would be in
conflict with the provisions of paragraph 3 of
this Articla shall not be modiifid to the detriment
of iï-ports and shall be subject to negotiations
for its limitation, liberalization or climination
in the manner provided for In respect of tariffs
and preferences under Article 17.
5* 'The provisions of this Article shall not apply to the
procurement by govornmental acncies of products purchased
for govermental purposed; and not for resale or use in tho
production of goods for sale, nor shall ther prevent the
payment to domestic producers only of subsidies provided
,f or undcr Article 25, inclduing payments to domestic pro-
ducors ctorivocl fro.i. the proceeds of internal t.xyos or charges
and subsidies effected throu!'h -Joverriaental purchases of
domestic products.
The De:legate for China reservodc his position pro-
visîonally and proposed to delote the words "or
use in the production of goods for sale". E/PC/T/180 ,.RTICLE 19
page 34
Special Provisions Relatint, to Ciner.latok:raph Films
1. If any Lember establishes or iLraintains iritcrnal quanti-
tative regulations reltinQ, to exposed uinematoLrai)h f'lnms, such
reSulations shill takc the formii of serteil quotas which shall
conform to the following , conditions an(d rwquirceL'fnts:
(a) Soreen quotas 1n~y require thc exhibition of cinc±atoGraph
fiLus of national origin durinQ a spicif'ied .iniifl
proportion of the total scruen timG actually utilized
over a speoificd period of not less than one year in
tho commercial exhibition of all films of whatever origin,
and shall be computed on thf, basis of screen time per
theatre per year or the n qui.ralcnt therofa.
(b) 'With tho exception of scree:i timie reservcid ior film of
national origin under a scrcon quota, no screen time,
including scrcon timG released by administrative action
froia minimruLÂ timct rGsurv;,d for filLs oai national orIE;in,
shall forànally or in effuct bc allocated aLong sources
of surnply.
(o) Notwithstanding. the provisions of sub-paragraph (b)
above, Membes may maintain screen quotas conforming to
thc conditions of sub-para:rah (a) which reserve a min-
imum proportion of screen time for films of a national
oriin othor than that of the meber imposing such screen -
quotas; provided, that no such minimum proportion of
sorcen time shall be increased above the. level in effect
on April 10, 1947.
(d) Screen quotas shall be subject to negotiation for their
limitation, liberalization or elimination in the, manner
provided for in respect of tariffs and preferences under
Article 17.
Tne Delegates of Czechoslovakia., the Netherlands end the
United. Kingdom re.served their position provisionaily. The Delegate
for France also ressrved his position, espocially on the duration.
of the, quote system. E/PC/T/180
Page 35
Section B. Qauantitative Restrictions andExchange Controls
ARTICLE 20
General Elimination of Quantitative Restrictions
1.. No prohibitions or restriction other than duties, taxes or
other charges, whether rnade effective through quotas, import or
export licenses or other measures, shall bu instituted or main-
tained ',y any Member on tho importation of any product of any
other Member country or on the exportation or sale for export of
any product destined for an.y other Member country.
2. The provisions of paragraph 1 of this Article shall not
extend to the following:
(a) export prohibitions or restrictions temporarily apDlied
to prevent or relieve critical shortages of foodstuffs or
other products essrm-tial to the exDortinc Member country;
(b) import and export prohibitions or restrictions necessary
to the application of standards or regulations for the
classification, grading or marketing of commodities in inter-
national trade; if, in the opinion of the Organization, the
standards or regulations adopted by a Member under this sutb-
paragraph have an unduly restrictive effect on trade, the
Organization may request the Member to revise the standards
or regulations; Provided that it shall not request the ro-
vision of standards internationally agreed under paragraph 6
of Article 22;
Article 20
The Cuban Delegation reserved its position on the Article in
view of the rejection of its , for excepting restrictions
up to 50% of domestic cosumption for promoting' the maintenance,
development or reconstruction of an industry
The Chinese Delegation reserved its position in respect of
its proposal to add a sub-paragraph 2(d) providing a procedure
for releasing a Member, without thc prior approval of the
Organization, from the obligation to refrain from im.Dort restric-
tions when the, industry in question is of vital :im.portance S/PC/T/18 0
Page 36
(c) import restrictions on any agricultural or fis{ories product,
imported in any form, necessary to the enforcement of govermental
measures which operate:
(i) to restrict the quantities permitted to bc iiark;otod
or produced of the li'.e diicmstic product, or, if thero is
no substantial doricstic production of the like product, of
a domestic product for which the imported product can bc
directly substituted; or
(iî) to remove a temporary surplus of the like domestic
product, or, if there is no substantial domestic production
of the like product, of a domestic product for which the
imported products can bc directly substituted, by making
tho surplus available to certain groups if domestïc consumers
free of charge or at prices blow the current .market level; or
(iii) to restrict the quantitios permltted to bo produced
of any aniL:al product the production of w'hich is directly
dependent, wholly or mainly, on the imported commodity,
if the domestic production of that commidity is relativly
negligible.
Any Member applying restrictions on the importation of any product
pursuant to this sub-paragraph shall give public notice of the total
quantity or value of the product pormitted to be imported during a
specified future period and of any change in such quantity or value.
Moreover, any restrictions applied under (i) above shall net be such
as will reduce the total of imports relative to the total of domestic
Production, as compared with the proportion which might reasonably bc
Paraeraph 2(c)
The Chilean Delegation reserve-d its position in view of the
exclusion of "industrial products".
The term "in any form" in this paragraph covers the samzc products
when in an early sta.ze of processing and still perishable, which
compete directly with the frosh product and if freely imported would
tend to take the restriction on the fresh product ineffective. E/PC/T/18 0
Page 37.
expccted to rule between. the two i.n the absence of restrictions.
In dotarmining this proportion, the Member shall pay due regard
to tho proportion prevailing during a provios. representative
period, and to any special facters which may have affacted or may
be affecting the trade ln the product concerned.
3. Throughout this Section -the terms lmport restrictions"
of ex[psrt restrocttion ;" include restrictions ;made effectiva
through stato- trading operations.
Paragraph 2: last sub-paragraph
The term "special factors" includes chances in relative
productive efficiency as between domestic and foreign producers,
or as between different foreign producers, but not chances
artificially brought.-about. by means not permitted under the
Charter. Page 38
ARTICLE 2)1
Restrictions to Safeguard the Balance of Payments
1, Notwithstanding the provisions of paragraph 1 of Article
20, any Mamber, in order to safeguard its external financial
position and balance of payrnents, may restrict the quantity
of value of marchandise permitted to be imported, subject to
the Provisions of the following paragraphs of this Article.
2. (a) No Member shall institute, maintain or intensify
import restrictions under this Article except to the extent
necessary
(i) to forestall thc imminent threat of, or to
stop, a serious declinc in its monetary
reserves, or
(ii) in thc case of a Mamber with very low monetary
reserves, to achieve a reasonable rate of
increase in its reserves; due regard being
paid in either casa to any spacial factors
which may be affecting tha Members reserves
or need for reserves, including, whare special
axternal credits or other resources are
available to it, the need to provide for the
appropriate use of such credits or resources,
(b) Members applying restrictions under sub-paragraph (a)
shall progressively relax them as such conditions inprove,
maintaining them only to the extent that the conditions
specified in that sub-para-raph still justify their application.
They shall eliminate the restrictions when conditions would no
longer justify their institution or maintenance under that
sub-paragraph.
The Australian Delegation has racorded a reservation
against the text of Article 21, paragraph 2(b). ' E/PC/T/180
Page 39
3. (a) The Members recognize that in the early years of the
Organization ail of then will bc confronted in varying degrees
with problems of cconomric adjustment resulting from the war.
During this period thc Organization shall, whon requircd to
take decisions under this Article or mudor Article 23, take
fuli account of tho difficulties of post-war adjustment and of
the need which a Mar-bar may have to use import restrictions as
a step towards thc restoration of cquilibriun in its balance
of payments on a sound and lasting basis.
(b) Tho Members recognize that, as a result of domestic
policies diroctcid toward thc fulfilment of a Mernbers
obligations under Article 3 relating to the achievement and
maintenance of full and productive employment and largo and
steadily growing demand or its obligations under Article 9
relating to the reconstruction or developncnt of industrial
and other economic resources and to the raising of standards
of productivity, such a Member nay experience a high level of
demand for imports. Accordingly:
(i) notwithstanding the provisions of paragraph 2
of this Article no Member shall be required to
withdraw or modify restrictions on the ground
that a change in such policies would render
unnecessary the restrictions which it is applying
under this Article.
The phrase "notwithstanding the provisions of
paragraph 2 of this Article" has been included in the
text to mako it quite clear that a Member's import
restrictions otherwise "necessary" within the meaning
of sub-paragraph 2(a) shall net bc considered unnecessary
on the ground that a change in domestic policies as
referred to in the text could improve a Moliberts monctary
reserve position. The phrase is not intended to suggest
that the provisions of pararaph 2 arc affected in any
other way. E/PC/T/I F30
P 72- !*0
(ii) any Member applying import restrictions undor
this Article may determine thc incidence of tho
restrictions on imports of different products
or classes of products in such a way as to give
priority to the importation of those products
which arc more essential in tho liht of such
policies.
(c) Members undertake, in carryin- out their domestic
policies:
(i) to pay duc regard to the neod for restoringr
equilibrium in their balance of payments on
a sound and lasting basis and to the desirability
of assuring an economic employment of productive
resources;
(ii) not to apply restrictions so as to prevent
unreasonably the importation of any description
of Goods in mninimum commercial quantities, the
exclusion of which would impair regular channels
of trade, or restrictions which would prevent
the importation of commercial samples, or prevent
compliance with patent, trademark, copyright, or
similar procedures; and
(iii). to apply restrictions under this Article in such
a way as to avoid unnecessary damage to the
commercial or cconor.ic interests of any other
Member.
14.. (a) Any Membor which is net applying restrictions under
this Article, but is considering th need to do so, shall,
before instituting such restrictions (or, in cïrcumstances in
which prior consultation is impracticable, immediately after
doing so), consult with the Organization as to the nature of E/PC/T/180
page41
its balance of payments difficulties, alternative corrective
measures which may be available and the possible effect of
such measures on that economies of other Members. No Member
shall be required in the course of consultations under this
sub-paragra.ph to indicate in advance the choice or timing of
any particular measure which it may ultimately determine to
ade pt .
(b) The Organization may at any time invite any member
which is applying import restrictions under this Article to
enter into such consultations with it, and shall invite any
Member substantially intonsifying such restrictions to consult
within thirty days. A Mernber thus invited shall palticiato
in such discussions. Tho Organization may invite any other
Member to take part in those discussions. Not later then
two years from: the day on which this Charter enters into
£orea, the Organization shall review .all restrictions existing
on th-.t day and sti.ll applied under this Article at the time
OL the review.
(c) Any Member may consult with the Organizntion with
a v-iew te obtininng tho prior approval. of the Orgonization
for restrictions which the llomber proposes, under this
Article, to maintain, intensify or institute, or fcr tho
maintenance, intensification or institution of restrictions
under specified future conditions. As a result of such
consultations, the Organization may approve in advance the
maintenance, intensification or institution of restrictions
by the Member in question insofar as thc general extent,
degree of intensity and duration of the restrictions arc
concerned. To the extentt to wrhich such approval has been
given, the requirements of sub-paragraph (a) of this
paragrarh shall bho dcemod te hava bcn fulfilled, and the
action of 'hc Member applying the restrictions shall not be E/PC/T/180
Page 42
open to challenge under sub-parag raph (d) of this paragraph on
the ground that such action is inconsistent with the
provisions of paragraph 2 of this Articlc.
(d) Any Member which considers that another Member is
applying restrictions under this Articlc inconsistently with
paragraph 2 or 3 of this Article or with Article 22 subjectt
ta the provisions of Articlc 23) ma.y bring the matter for
discussion to the Organizatiorn; and the Member applying, the
restrictions shall participate in the discussion. The
Organization, if it is satisfied that thera is a prima facio
case that tho trade of the Membor initiating; the procedure is
adverselyy affected, shall submit its views to thc parties
with the ain of .achieving, a settlement of the natter in
question which is satisfactory to the parties and to the
Organization. If no such settlement is reached and if the
Organization determines that the restrictions arc being
applied inconsistently with paragra.ph 2 or 3 of this Article
or with Article 22 subject to the provisions of Article 23)
the Organization shall recommend the withdrawal or modifica-
tion of the restrictions. If the restrictions are not
withdrawn or modified in accordance with the racommendation
cf thc Organization within sixty dayr, thc Organization may
release any Member from specified obligations undor this
Charter, towards the Member appl.ying the restrictions.
(o) it is recognised that premature disclosure of the
prospective application, withdrawal or modification of any
restriction under this Article right stimulate speculative
trade and financial movements which would tond to defeat tho
purposes of this Articlc.. Accordingly, the Organization shall
nalko provision for the observance of the utmost secrecy in
the conduct oa any consultation. E/PC/T/ 180
Page 43
5. If there is a persistent :.nd widespread application of
import restrictions under this Article, indicating the
existence of a general disoquilibrium which is restricting,
international trade, the Organizatïon shall initiate
discussions to consider whether other measures might be taken,
either by those Members whose balances of payrments are under
pressure or by those Members whose balances of payments .are
tending to be exceptionally favourable, or by any approprïate
intor-governmental organization, to remove tho underlyïng:
cause of the disquilibrium. On the invitation of the
Organization, Members shall participate in such discussions. E/PC/T/l1O ARTICLE 22
page 44
N n-DizcrimainatDry ..driiinistr2tijn if ,uoantitt!tivo Rostrictions
1. Nv prchibiti.,,n z, rs;stricti-,n shbll bu nppli.,.d by sn'Jbr:)n
tho iil;urtzitiv,nj f tjny piuduILct -,I` -iny uthur Mluliib._:r cJ)untry '.r :n) thu
; rthti.n .;f ûny pzI..>duct 'J; tin. f- r nny uthur Mwaber omntry,
unless thçi i1ujx;rt2tiQn Jf thu liku pr .Dxuet uf rll third countris :.r
th3 expurtatiïn Jf tlhu li1Io prcDCuct tJ nill third c Duntrios is
simif.lrly przhibitud r restrictuU.
2. II1 opplyiiig irmlxjrt restrictions t. cny product, Mimbors hall
E-im st L &istributi4..n _f tr cX- in sucil prDciuct qppruaching ns
cl,1sQly us pussibl; t thb a:r.:: .,hich th. vFriîus lMi.mbar countries
might bcu xpctü%OC ti "bt; in in thu zabsùnoc of such rustricti.ns, anl
tj this ,nj shpill -,bsfirvu thu ..lwil I;r-.visins:
.(aF') swhurv,xr rc,_b "q.uJ)t»i ru,-rjsùnting thu total -,,m:un t
Jf ,;rL:i.ttud ir.irts (wh, tn c lr alracotd orong supplying
cz)untrisz _r n st) s' bil j fiY3iJ, E1"nd nDtico givon ,f thu--r
ïn.JZ1 iI cjttnubttLklg:" 3(b) Ef this Article;
(b) in ce..ss in which qut t e. rc; n.t procticable, tho ro-
stricti.,iis n.ry b. ul;ic by r<.u:nS .1 irmpurt liconsis ..r
.ptimits with.Dut 51 quet5;
(c) L~ilburs sh&il n., t, jxcu ,t f., ^ .,urposas f cpearnting quDteCs
allçceto ini coeu2dernco vdith sub-pcir^groph (a) of this pare-
graj:h, r.:quiru. thLt ir." rt hicc!nLs ur :;czrmits bü utilized fI'
th; 1ixrt:ti tho pr1a uct cncurn.,C frrzm c particular
cCoun try ;,r scurco;
(&) in cesoa; i:. ->;hich a cu.utt is ailloctjd cnrng supplying
cjuntriis, thD Li;x;bur c j.2yinÉ: th;± restrictions mIay sook agrao-
mort with ruspuct t. thu colf.otiun e sherrs in tho queta with
all sither i;x£bors hcviné; a subjtenitial intorist in supplying
Peragra7)h 2; sub prarera2h (C)
Thu Prcparetsry C.)i=îttae zmittd tho phrasu establishing "coim-
murcil csnsi aratins" as a rulc f,,r tho eU11ocatiîn of quotas, be-
Qeuso izc was censid-rcd thct its a:.phiontin by govornnontal auf. cri-
tics migàt nt elviays be prct-ic!blo. Meror, in cases Vhorj it
was practiceblcs, u Lzribur c.sld ap,,y this cnsidoration in tha
prsCOss ef seoking agrxncor.t, consistontly with the gonçral rulo laid
duwn in thb z)ponninnc sontenon -Erecre;-,h 2. E/PC/'lll18O
page 45
thc.i j,'r;'uet; ': lOW1VUJd. In cÇrsuu lii whi.vh thif n±uth;- io n'.' t
.rt.Ls-ne-ibly j)r-çetiesb1c), thv sJb. c-)nezDrrnd sh^11 i..11jt t:)
blQluab.r CuUiitri-s lie1vini:, i, substi;ntirEl inte'r.,st in suz,,;lyini,
thiu ,r<uot, shLvrus bsu.lK ui; rr thiJ ".r.pT:rti iris, sui :11wtd by
such I .iàb<;r ointriis 'urin.: ' r:iruvi.,us re;irJsU1tr.tivu ;
thQ t-t:l quF;ntity -vr vta1uu; -f ïmp-- rts *,f th., ,>,r.:4uct, duc;
aocxurit b.AinS tukçàn ..' :iny spcieii:l J. crrt: rs which r.y h,.vo çf-
fuctuu -r rkmiy bo uffuctine. thj tre. u in tho 1r,'ut. ND cOn-
(.litiins ;r firmalitijs sh ,-ll b,. vi;u' hieh iv,.)ulcl -.revrant
* ny lm.bur frvrn utilizing fully thu shnrD *rf rny sach t2tùl
que.ntity cr vr;lum -whieh his, bin bllrottdvi tfD it, subject tD
tro F fit!:' ; ~rbeinuc, mdu vrithr n S i, y ,,;rseribr i d cDnotr>whieh
th;; quç;t- iacy e.t
3,(J) In crsus in vihich t. r lictnsh;s h .rt issue rd in cu1jnnecti Qn
with iqisrt rbstrictl.ns, thD rv;,1bjr cyglyin; th:r3 rtstricti.v n sh^ ll
ztviduc uiton th.i rt?qunst if firiy a1umb r ho f r..un int r-.rt in th
trz'u in thJ prVyduct c11 1n .', ll r l nt int r ,rnv-.ti .n cornyOr 1ing
th,â c uinistrfitin _f thio r wstricnti n. thc i rt licnonsts ireonth.
,jvjr u recent eniJu thu 'istributi.-n fr such licinscos aimonr,
subpp1yin;t c w;untr~ivs; Phevi n th b.t oru shnll br nur :nb1ir tiyMic t? )
suttply thi s ty thy nbuous tus inj. 'jrrinn ,tiab i r su,. flying ontur'-
, is~oesss . enttoqcttcs;raitdt oinxU h
(bJ In tbui Ccsu ri im,: - -rt ris stricti ns inv rtlvin-z thtJ fixin,,
Moi qu-b.r os, tho Liy 3ur n,1tp1yinL7 th. r;stricti:;ns shrIl ucïv tublrC
notice sf tho totrl quantity h jr valuo r tho use or uct os)r u rpoduots
whlch, wlll bc i)jzr;ittl,à t;~ bo imj.vrtj lurini n . cti; future
krzriw;d f!nâ .f vnly chan î- in such qu,7ntity _~r v^.luc. Any su;,Dlitjs vrf
thu; -,rwduet in quostiun which viurE; n r;,~ut3) c.t thz tirao s:t wJhich
public natica wes t~ivun. sholl n,-;t bo axclu',od fr:Dr -,ntry; Pr . vïd.
th£it thcy zicy b,. co-untc>--, s,. f-5r .s ;rcecticabl-, ai.ninst thc1 quantity
pzrmittod ts~ bu; im:jurtcd in thç cr: in quasti-,n, and C1s j. whor;.-
nuccssery, ceeinst thc qu--ntitiQs :,>rmittiad to bo mrc in th.3
ncxt f_.ll;,wing i;orio:) :,r piori)dZs, end PrDviCoid furtht3r that if any
k&umbQr cust.)mr;-rily jxumibts froD:l such r_-stricti,:ns pro-lucts ontu3rr'1
for consumption or withdrawn. from ware house for consumption durinF, E/PC/T/l10
page 46
; ,t thirty Jcys aftcr th.; ûoy .V sueh public nitica, such
. raotioa shall bo efJISi dr u tull C 1innco with this sub-poragre. h.
(c) In tha ceso z±f quotes 1llc:tcd rxnIriç supllyins: cuntrios
tho wiembar e plyinG thù rGstriotiDn sh^.l rr;m tly inf;>rm c11 ,thor
D!,'bors hevinc en, nt;r _st In suyJ;lyin; thj iS;r-Cuct coneorn.d 'f tho
shlcros in tho quwtu currently ;.llbo;t,, by qu.!rt tity zDr velue, t.D
thu various su,;X:l1yin,; c;,untriju r.niù iiti,,l rivo ,ul n.:t;1oo thor.f.A.
4. ïgith rogcrd t.' rostricti,;ns c;pliocl in cicoirdanco with pcra'rar.h
2(d) S' this Artiolo sr undor 1'a;rh 2(c) *S' Artiolo 20, "ha
solGcti.n fia roprusQnttitivv c ri f iX>r any :r;-.:uCt rn' tha aI;lr.rasal
s:f any s,,joial fe ctL)rs sffoctiii.-. thc ,, t.co in tha ;-ruduct sholl bc
mal-Ce lnltielly by thâ ilre,*yi thCx r jstricti._,n; Prszvi;u^sd th, t
such biüLLWr shell, u.-on thu iccuvt r. -ny ithor ilvuimb.L'r having a
subst-,ntial intirjs~t in sui;-.lyiiit thl::!t srr cti u,.n tha r. jquost
_f thoe 0rCnizeiti-n, consult prmj;+ty và th thu ;thor ÂliDormb-r .r tht
0rEganize.tizn r e;rciinj thQ noGd ftr on u.Cjuitracnt tr the rrpcrti r
dutorriined Jr çf1' thu 'I':3o i: lt .. .w1 >tn t;i ' r fl) thi ru-a,, `r-isal of
th6 spoalNactirs inov> r f jr thu; jliminntis~n J)f cDn<1itizns,
S;z:m.liifs r sny :jthùr -,;rvisiins esalsl'unilotcrvally U-:sn
thü allboation f ün e-dzquiitu qDuotz cr its unrzstrictiJ utiliz1tifln.
Par.rc*sh 3; Su'b-::r!rc?:enrh.s b? alnd (o)
Tho Czoch-DslUvik DGlr.ti-in roscrved its rc sitiDn zn tha rc-
quiraiont Dl' "ublio nrxtico in sub-p!r (b) and (o). ThO
CzQcohD lcv uk Dal, gn t î n, uhil3 n~t sD.;s-2- : .:il)
,-,u`ullc niticci, ocnnjt taccoi:t it tis e.n i;net »;iai:s 51
es tha cDuntriis with ih;V.;: Czoch:>s1 vo h<.s b¢aor conductinc tbo
me jzr rart _-f har DCroign tracD, c;rc n.,t fillDwinez a simill.r rr-
oo ura. Tno obliÈ,> tiîn _zf givin.: i:ublic nztiîo ;if gl-lb l qusta1s an-i
of tho cllucctijn of s-Lros is, in tha 1,jnrticular situation of
Czoch>slove.kia, tco rie:id o rulc vnu, un2ss 'r:tissd s-nOrrclly,
licbla tj h±:vo a hnrmful o)ff'ct u. n tha oxp!Dnsi.)n :oif :r'roir n trado
In ,:;nurol, cnd tho oc.n.,ic intcir.«sts ,i' Cz(Juoh.xl;vkia In perticu-
lar. In th3 viow Df tho Czoch.zs-iuvck Dlai?.-.ti;Dn it shDuld ba sui-
ficiant ti sup-,1y full infoJrr.tiJin to ;rbr substantielly intor-
estod in tics ox,;,Dr-ctizn -if th- --,F; izti criavty
Para, rar h 4
Soa nOito ruloting t- '"s1ùcie1 - cltJ3" in c;-nnocti:>n with tha
lcst sub-parcgreph of 2.ero:rcyh z f Ar4;L clo 20, E/PC/T/180
page 47
5. Tbj -rurvîaions of this àrticla shcll apply tD eny turltr quota
institutQd zr maintainod by ony MLombur ond, insérer as applionblo,
tht srincpllos of this Articlu shall alsco oxtcénd to export rustrie-
ti-Ds enc tz =y internal roruleti>n b)r roquiramonts undor prer-
rroph. 2 of Article 18 and under Article 19. E/PC/T/180
page 48
Exceptionsto the Rule, of Non-Discrlmination.
1. (a) Tho 1ourirc-brs rccoînizc t whot whcn a substantial and
rwidts rrc. d {.isaquilirir iu. r ;rCvails iii intorni.ticnn.i trade
and prLy.rxnts a l4rdnr applyivi rc tric iis un.lcr Articlo 21
mr.y bo ala, to irornase its i:'Qo)rts fror. certain souLrces
wit:ilcut uniluly dcpljtin: its n.:onct:.ry rcj;crvcs, if porminttod
to dapt.rt frori tii(, provissions of' ArtiecI 22. Tlw l4eribers
.21se roCob:iiZE cic naad for cicsc j.Ii.tatidll of such departures
Sc, :.5 ncot La han nyt, chi.vc! Enl; c'f ;:u1.tlztorr.1. international
trr.i-e.
(b) vileorinniy, '.ihan a substbanti:Ll and wirlcslrrc:ad
3.li.qui.li.ariur.n prevals in ltornn.tien. tracTla 1nd pay.rnts a
1alroiacr _pp11yn:; airport restrictions uriclor ArticJ.e 2.1 May
rc].c. such rostrictiono in a. !ra.i.cr hihich dop.art b from the
pro-visions cf Article 22 to t1ic x:;tant nccassrLiry to obtain
.adcIit'i;î onc-1 imports ibc.v , th2c ma:,imm; tot,.l of iwparts which
it could affcor2:'. in t1ic l.i.;h;t of tho ra-quiror.-ants c t
para.;riaph 2 o^ Arti.cl.e 21 if its restrictions wcrc fully
consistent with Articlo 2?, provi;2a:l tharit
(i) levels of a.lcivorcd iricocs for pro-lucts so
::iported rru nol ts tahiishcd substantially
hi:?hûr than those ruitni, for comparable ,ooeds
raCularly avrtilablo front other MI4eanbers, and
ticltaiiy 1-coss of :uch pi ico loevais for
products so inportcd is proeressivoly reduced
ov2r a r2nsonable period;
Thc Dcie ;aticns of Ccclsicvakia, Chilc ,and ITorway
havù recorded a rascreation on tho whole of Article 23. E/PC/T/180
page 49
(ii) the Member taking such action does not do so
as part of any arrangments by which th gold
or convertible currency which the Member
currently receives directly or indirectly front
its exports to other Member not party to the
arrangment is appreciably reduced below tho
level it could otherwise have been roasonably
expected to attain;
III) such action does not cause unnecessary damage
to the commercial or economic interests of any
other Member.
(c) Any Member takin- action under this paragraph shall
observe the principles of sub-para.,raph (b) of this paragraph.
A Member shall desist from transactions which provo to bc
incon;1stent with that sub-paragraph but the Member shall not
bc required to satisfy itself, when it is not practicable to
do sol that the requirments of that sub-paragraph are
fulfilled in respect of individual transactions.
(d) Menbers unclertake in framing and carrying out any
programmes for additional imports under this paragraph to pay
duc rcard to the need to facilitate the termination. of any
cxchange arrange.ments which deviate front the obligations of
Sections 2, 3 and 4 of Article VIII of the Articles of
Agreement of the Internntional Monatary Fund and to the necd
to res tore equilibrium in their balances of payments on a
sound and lasting basis.
2. Any Member taking action under paragraph 1 of this
Article shall keep the Organization regularly informed
regarding such action and shall provide such available
relevant information as the Organization may request. E/PC/T/180
page 50
3. (N.) Not later than lst March, 1952 (five years after the
late on which the Internationa.l Monetary Fund began operations)
,.nd in coach year thereafter, any Member maintaining or
proposing- to institut: action under pararaph 1 of this
Article shall seek the approval of the Organization, which
shall thereupon determine whether thc circumstances of the
Member justify the maintenance or institution of action by it
under paragraph 1 of this Article. Af ter 1 March 1952 no
Member' shall maintain or institute such action without
determination by the Organization that the Memberts circum-
stances justify the maintenance or institution of such
action, as the case may be, and the subsequent maintenance
or institution of such action by the Member shall be subject
to may limitations which the Organization may prescribe for
the purpose of ensuring compliance with thc provisions of
paragraph 1 of this Article, provided that tha Organization
shall net require that prier approval bc obtained for
individual transactions.
(b) If at any time the Organization f inds that import
restrictions are being appli ed by a Member in a discriminatory
manner inconsistent with the exceptions provided for under
paragraph 1 of this Article, the Member shall , within sixty
'days, remove the discrimination or modify it as specified
by the Organization; Provided that any action under
paragraph 1 of this Artic le, to the extent that it has been
approved by the Organization under sub-paragraph (a) of this
The Proparatory Committee considered the question of
whether it was necessary to make express reference in para-
graph 3 of Article 23 to the need of the Organization to
consult with the International Monetary Fund. It concluded
that no such referance was nocossary since such consultation
in all appropriate cases was already required by virtue of
the provisions of paragraph 2 of Article 24. E,/P('/T/180
pae 51
paragraph or to thc cxtcnt that it has bocn approved by the
Organization at the request of a Mombar under a procedure
analoous to that of paricuraph 4(c) of' Article 21, shall not
be open to challon;:: under this sub-pciragraph or undor
paragraph 4(d) of Article 21 on thc ground that it is
inconsistent with Article 22.
(c) Not later than March 1, 1950, and in coach thera-
after so long as any blembers arc takin-, action undor para-raph
1 of this Article, thc Or,,aniz.aticn shall report on the action
still takon by Mrnbors un;.lor that rcir;raph. On or about
March 1, 1952, and in cach ycar the-re.fter sa long as any
Menbers are taking: action under para.;r.tph 1 of this Article,
and at such times t.iercaf*tr as the Organization rmay decide,
the Oroanization shall revicw the question of whether thorc
thon exists such a substantial and widespread disoquilibrium
in international trado and payrAents as to justify resort to
paragraph 1 of this Articlc by Meinbers. If it appears at any
date prior to March 1, 1952, that thera has beon a su'istantial
and gancral ïrnprovonont in international trac'; and payaonts,
tho OrCanization Liay review the situation at thr.t date. If,
as a result of any such reviïiw, thc Oronrnization detcrnincs
that no such disequilhbriun exists, the provisions of
paragraph 1 of this Article shall bc suspended, and all
actions authorized thercunder shall cease six months after
such duturr.ination.
4., Thc provisions of Article 22 shall not procluda
restrictions in accordance with Article 21 which either
(a) are applied îpainst irports from othor countries
but not as ar.mon7g themselves, by a group of
territories having a common auot. 1in tho
International Monetary Fund on condition that E/PC/T/180
page 52
such restrictions are in all other respects
consistent with Article 22, or
(b) assist, in the period until 31 December 1951,
by measures not involving substantial departure
from the provisions of Article 22, another
country whose economy has been dIsrupped by war.
5. The provisions of this Section shall not preclude:
(a) restrictions with equivalent effect to exchange
restrictions authorized under Section 3(b) of
Article VII of thc Articles of Agreement of
the International Monetary Fund; or
(b) restrictions under the preferential arrangements
provided for in Annex A of this Charter, subject
to the conditions set forth therein.
The Brazilian Delegation has recorded a reservation on
Article 23, paragraph 5(b) E/PC/T/1e0
page 53
ARTICLE 24
Exchange Arrangements
1. The Organization shall seek co-operation with the Inter-
national Monetary Fund to the end that the Organization and
the Fund may pursue a co-ordinated policy with regard to
exchange questions within the jurisdiction of the Fund and
questions or quantitative restrictions and othor trado
retsures within the jurisdiction of tho Organization.
2. Iri all casos in which tho Organization is called upon
to considor or deal with problems concerning monetary
reserves, balance of payments or foreign exchange arrangements,
the Organization shall consult fully with tho International
Monetary Fund. In such consultation, the Organization shall
accept all findings of statistical and other facts presented
by tho International Monetary Fund relating to foreign
exchange, monetary reserves and balance of payments, and shall
accept the determination of the Fund as to whether action by
a Member ln exchange matters is in accordance with the
Articles of Agreement of the International Monetary Fund,
or with the terns of a special exchange agreement between that
Member and the Organization. The Organization, in reaching.
its final decision in cases involving the criteria set forth
in paragraph 2(a) of Article 21 shall accept the determination
The Australian and New Zealand Delegations have recorded a
reservation against this text, proposing the .following formulation
of the last sentence:
"The Organization, in reaching its final decision in cases
involving the criteria set forth in paragraph 2(a) of Article 21
shall Cive special weight to the opinions of the International
Monctary Fund as to what constitutes in consultation in such cases"
on the ground that since the Organization has a responsibility for
action under Articlc 21, it should also retain the right or final
decision as to whether the criteria of paragraph 2(a) have been
met. E/PC/T/180
page 54
of the International Monctary Fund as to what constitutes a
serious decline in the Member's monetary reserves, a very
low level of its monetary reserves or a reasonable rate of
increase in its monetary reserves, and as te the financial
aspects of other matters covered in consultation in such
cases.
3. The Organization shall seek agreement with the Inter-
national Monetary Fund regarding procedures for consultation
under paragraph 2 of this Article. Any such agreement,
other than informal arrangements of a temporary or
administrative character, shall be subject to confirmation
by the Conference.
Members shall not, by exchange action, frustrate the
intent of the provisions of this Section, nor, by trade
action, the intent of the provisions of the Articles of
Agreement of the.International Monetary Fund.
5. If the Organization considers, at any timc, that
exchange restrictions on paymants and transfers in connection
In paragraph 4 ofArticle 24 the word "frustrated" is
intended to indicate, for example, that infringements by
exchange action of the letter of any Article of this Charter
shall not be ragarded as offending against that Article if, in
practice, there is no appreciable departure from the intent of
the Article. Thus a Menber who, as part of its exchange
control, operated in accordancewith tho Articles of Agreement
of the International Monetary Fund, required payment te be
received for its exports in its own currency or in the currency
of one or more members of the International Monetary Fund would
not thereby be deer.'.d to be offending against Article 20 or
Article 2?. Another example would be that of a Member who
specified on an import license the country-from which the goods
night be imported for the purpose net of introducing. any
additional element of discrimination in its import licenses but
of enforcing permissible exchange controls. E/PC/T/ 180
page 55'
with imports arr being applied by a Member in a manner
inconsistent wïth the exceptions provided in this Scction
for quantitative restrictions, it shall report thereon to the
International Monctary Fund.
6. Any Member of the Organization which is not a member
of the International Monatary Fund shall, within a tine to be
determined by the Organization after consultation with the
International Monetary Fund, become a member of the Fund or,
failing that, enter into a special exchange agreement with the
Organization. A Monbor of the Organizatiorn which ceases to
bo a Lcnber of tho International Monetary Fund shall forthwith
enter into a special exchange agreement with the Organization.
Any special exchange agreement entered into by a Member undor
this paragraph shall thereupon become part of its obligations
undor this Charter,
7. (a) A special exchange agreement between a Member and
the Organization under paragraph 6 of this Article shall
provide to the satisfaction of the Organization that tho
objectives of this Chartor will not bc frustrated as a result
of action in exchange matters by the Member in question,
(b) The terms of any such agreement shall not impose
obligations on the Member in exchange matters generally more
restrictive than those imposed by the Articles of Agreorent
of the Internntional Monctary Fund on members of the Fund.
8. A Merber which is not a member of the Intornational
Monetary Fund shall furnish such information within the
general scope of Section 5 of Article VIII of the Articles
of Agreernent nf the International Monetary Fund, as the
Organization may require in order to carry out its functions
under this Charter. E/PC/T/l80
Page 56
9. Subject to paragraph 4 of this Article, nothing in this
Section shall procludo
(a) the use by a Member of exchange controls or
exchange restrictions in accordance with the
Articles of Agreement of the International
Monetary Fund or wlth that Meoberts special
exchange agreement with the Organization, or
(b) the use by a Member of restrictions or controls
on imports or exports, the solo effect oe which,
additional to the effects permitted under
Articles 20, 21, 22 and 23, is to make effective
such exchange centrols-or exchange restrictions,
Sec Note to paragraph 4. E/PC/T/180
page 57
SECTION C -SUBSIDIES
Subsidies in General
1l any Member grants or maintains any subsidy, including
any form, of income or price support which operates directly
or indirectly to increase e;po'ts of any product from , or to
reduce imports of any product into, its territory, the Member
shall notify the Organization in writing of the extent and
nature of the subsidization. o ' the estimated effect of the
subsidization on the equailtity of the affected pr'oduct or
products importecd into or exported front the territory of
the Member and of the circumstances making the subsidization
necessary. In any casc in which it is determined that
serious pre judicc to the interest of any other Member is
caused or threatened by any such subsidization, the Member
granting the subsidy shall, upon request, discuss wïth. the
other Member or Members concerned, or with the Organization,
thc possibility of limiting the subsidization. E/?C/T/ o30
pA;4e 563
Article 26
j.&lit lonri- Pxovi slon, on Export, Sub iJ.tc
1. No Mrcmbor shahl grant, Wi- rcct1y or indirectly, any
subsiCîLy on the exportation of any product, or cstbhlish or
m,.aintain iyny other systc!mwhich subsidly or systenr rcsuilts
in the sale of such product for export at a price lowor thin
the comparable prico charged for tho likc product to buycrs
in the domestic market, duo allowance being rmadc for differences
in the conditions and terris of sale, for differences in
taxéitlon, and for other differences affEccting prico ccmparability.
2. Notirithstandine thc provisions of p.)ra3raph 1 of this
carticlc a Meïnber rmay exc:ipt exported products from. duties or
ta.es inposcd in respect of like products when constu-icd
domostical'y, or r.iay rc.'l.it such duties or ta:xcs which have
accriied.. The use of tho procecds of such duties or taxes to
r.iake parvonts to dDorlcstic producors, however, shall bc
considorcd as a case under Articlc c5 accept in s5 far as
such payricnts subsidlize exportation, in the sons of
paracrraph l of this Article, by riore than the amount of
the duties or taxes rcnittcd or not imposed, in which case
tho provisions of paragraph 1 of this Article sha11 apply
te such oxcoss pay-icnts.
3. Members shall Civo effocu to t-m- provisions of paragraph 1
of this Article at thc carliest practicable date, but in any
event not later than two years frorm the day on which this
Charter enters into frcec. If any 14Iebcr consirlers itself
-Thc Cuba.n Delegation hr'- reservod its position on ArticJc
26. £/PC/ T/18o
page 59
unable to do so in respect of any specified product or products,
it shall, at least three months before the expiration of such
period, give notice in writing to the Organization, requesting
a spcacific extension of the period. Such notice shall be
accompanied by a complete analysis of the system in question
and' the effects justifying it. It shall then be deterrmined
whether the extension requested should be made.
4 Notwithstanding the provisions of paragrap h 1 of this
Article, any Member may subsidise . the exports of any product
tc the extent and for such tinc as :may be necessary to offset
a subsidy granted by a non-Member affecting the Member's
experts of the product. However, the Member shall, upon the
request of thie Orgninztion or of ariy other Member which
considers that its interests are adversely affected by such
action, consult with that Member or with the Organization
with a view to reaching a satisfactory adjustment of the
matter. E/PC/T/180
page 60
Article3
" Special Treatment of Primary Commodities.
1. A system for the stabilization of the domestic price or
of the return to domestic producers of a primary conmodity,
independently of the movements of export prices, which results
at times in the sale of the product for export at a price
lower than the comparable price charged for the like product
to buyers in the domestic rnarket, shall be considered not to
involve a subsidy on exportation within the meaning of.
paragraph 1 of Article 26, if it is determined:
(a) that the system has also resulted in the sale
of the product for export at a price higher than
the comparable price charXed for the like product
to buyers in the domestic market,
and
(b) that the system is se operated, either because
of the effective regulation of production or
otherwise, as not to stimulate exports unduly
or otherwise seriously prejudice the interests
of other 1.-mbers.
2. In any case of subsidization of a primary commodity, if
a Member considers that its interests are seriously prejudiced
by the subsidy or if the Member granting the subsidy considers
itself unable to comply with the provision of paragraph 3 of
Article 26a within the time limit laid down therein, the
difficulty may be deemed to be a special difficulty under
The Australian Delegation has reserved its position on
paragraph 1 of Article 27 pending its approval of the final
agreed text of Article 33. 1 E/PC/T/180
page 61
Chapter VI, and in that event the procedure laid down in that
Chapter shall be followed.
3. If the measures provided for in Chapter VI have not
succeeded, or do not promise to succeed, within a reasonable
period of tixne, either because no agreement has been reached
or because +'e agreement is terminated, ar.y Member adversely
affected may apply for exemption from the requirements of
para-raphs 1 and 3 of Article 26 in respect of that commodity.
If it is determined that the circumstances described in Article
59 apply to the commodity concerned and that the subsidization
will not be so operated as to stimulate exports unduly or
otherwise seriously prejudice the interests of other Members,
the Organization shall grant such exemption for such period
and within such limits as may bc determined.
The United States Delegation has reserved its position on
paragraph 3 of Article 27 and on Article 28. It wishes its
reservation to be recorded in the following terms
"The United States Delegation reserves its position regarding
Section C, Subsidies, as that- action would apply to the situation
of a primary commodity which may be in burdensome world surplus as
described in Chapter VI. In such a situation, the provisions of the
revised text would result in inequitable treatment in two respects:
1. It would permit countries which, to maintain their primary
exports in times of world surplus, use e-xport subsidies associated
with a special type of stabilization scheme (Article 27, para,l) or
use domestic subsidies resultin, in the stimulation of exports
(Article 25) to apply such subsidies and to continue them while the
procedures of Chapter VI werc being followed. It would not, how-
ever, permit countries which use export subsidies not associated
with a special stabilization scheme to apply such subsidies. This
permission would bc denied not only during a reasonable effort to
achieve multilateral international action to deal with the world
problem through Chapter VI procedures, but also thereafter until
It might be determined by consultation among interested countries
that the particular export subsidization contemplated would not be
so operated as to stimulate exports unduly or otherwise seriously
prejudice the interests of other Members (Article 27, para.3)
2. In any case, the revised text would prevent subsidies on
exportation, whether or not associated with a special stabilization
scheme, from being operated so as to stimulate exports unduly or
otherwise seriously prejudice the interests of other Members
(Article 27, paras. 1 and 3), and it would place an additional
limitation on export subsidies not associated with a special
stabilization scheme (Article 28)! but it would put no binding
limitation whatever on the use of domestic subsidies which
stimulate experts (Article 25)." E/PC/T/180
page 2
Article 2
Undertakinp- Regarding Stimulation of Exports
Notwithstanding the provisions of paragraphs 1, 2 and 3
of Article 26 and of paragraph 3 of Article 27, no Membar shall
grant any subsidy on the exportation of any product which has
the effect of acquiring for that Member a share of world trade
in. that product in excess of the share which it had during a
previous representative period, account being taken insofar'as
practicable of uny special factors which may have affocted or
may be affecting the trade in that product. Thc selection of
a representative period for any product and the appraisal of
any special factors affecting the trade In the product shall bc
made initially by the Member granting the subsidy; Providod
that such Member shall, upon the request of any other Mcmber
having an important interest In the trade in that product, or
upon the request of tho Organization, consult promptly with
the other Member or with the Oranization regarding the need
for an adjustment of the base period selected or for the- re-
appraisal of the special factors involved, E/PC/T/180
page 63
Any determination provided for in) or appropriate to
the operation of,. this Soction shallbe made through the
Organization by consultation and agreement among the Members
substantially ïnterested in the product concerned. E/ PCI T/1 80
page 61
Section D. State Trading.
Article 30
Non-discriminatory Treatrient.
1 (a) Each Member undertakes that if it establishes or
maintains a state enterprise, wherever located, or grants
to any enterprise, formally or in effect, exclusive or
special privileges, such enterprise shall, in its purchases
or sales involving either imports or exports, act in a
manner consistent wiith the general principles of non-
discriminatory treatment applied in this Charter to govern-
mental measures affecting imports or exports by private traders,
Paragraph 1
The operations of Marketing Boards, which are established by
Members end are enga-ed in purchasing or selling, are subject to
the provisions of sub-paragraphs (a) and (b).
The activities of Marketing Boards which are established by
Members and which do not purchase or sell but lay down
regulations covering private trade are -overned by the relevant
.articles of this Charter.
The cherginG by a stateenterprise of different price for ite
salas of a product in different markets is not precluded by the
provisions of this Article, provided that such different ;vices
are charged for commercial reasons, to meet conditions of supply
ana di'aii in export markets.
Sub-Paragrap- 1(a)
Governmental measures imposed to ensure standards of quelity
and efficiency in the execution of external trade, or privileges
granted for the exploitation of national natural resources but
which do not empower the government to exorcise control over the
trading activities of the enterprise in question, do not constitute
'exclusive or special privileges'. E/PC/T/130
page 65
(b\ The provisions of sub-paragraph (a) of this paragraph
snall be understood to require than such enterprises shall, having
due regard to the othor provisions of this Charter, make any such
purchases or sales solely in accordance with commercial con-
sidorations, including prlce, quality, availability. marketability,
transportation and other conditions of purchase or sale, and
shall afford the enterprises of the other Members adequate
opportunity, in accordance with customary business practice, to
compete for participation in such purchases or sales.
(c) No Member shall prevent any enterprise whetherr or not
an anterprise described in sub-paragraph (a) of this paragraph)
under its jurisdiction from acting in accordence with the
principles of sub-paragraphs (a) and (b) of this paragraph.
2. The provisions of paragraph 1 oe this Article shall
no" apply ta imports of products for immediate. or ultimate con-
sumption in governmentel use and not otherwise for re-sale or
for use in thsi production of' goods for sale. With resE ot to
such imports, the Members shall accord to the trade of the
other Members fair and equitable treatment.
Sub-Paragraph 1(b)
à country receving a 'tied loan' is free to take this loan
into account as e commercial consideration' when purchasing
requirments abroad.
Paragraph 2
The term 'goods' is limited to products as understood in
commercial practice, and is not intended to include tho
purchase or sale of services. page 66
Article 31
Expansion of Trade
1. If any Member establishes, maintains or authorizes,
formally or in effect, a monopoly of the importation or export-
ation of any product, such Member shall, upon the request of
any other Member or Members having a substantial interest in trade
with it in the product concerned, negotiated with such Member or
Members in the manner provided for under Article 17 in respect of
tariffs, and subject to ail the provisions of this Charter with
respect to such tariff negotiations with the object of achieving:
(a) in the case of an export monopoly, arrangements
designed te limit or reduce any protection that might
be afforded through the operation of the monopoly to
domestic users of thc monopolized product or designed
to assure exports of the monopolized product in ade-
quate quantities at reasonable prices; or
General Notes
'The preparatory Committee deleted Article 33, as given in
the Report of the First Session.
In revising the text of Article 32, of the New York draft,
the Preparatory Committeo aimed at producing a text sufficiently
flexible te permit any appropriate negotiations with a Member
which maintains a complete or substantially complete monopoly ot
its external trade, However, since no representative of such a
country attended the sessions of-the Praparatory Committee, the
question whether the present Article 31 provides an adequate
basis for participation by such a country in the rights and
obligations of the Charter remains oDen for discussion at the
World Conference.
Arising out of a proposal by the New Zealand Delegation te
make an addition to the previous text of Article 33, the Prepara-
tory Conmittee considered the special problems that might be created
for Members which, as a result of their programmes of full employ-
ment, maintenance of high and rising levels of demand and economic
development, find themselves faccd with a high level of demand. for
imports, and in consequence maintain quantitative regulation of
their foreign trade. In the opinion of the Preparatory Committee
the present text of Article 21, together with the provision for
export controls in certain parts of the Charter, e.g. in Article 43,
fully meet the position of these economies.
The delegate for New Zealand reserved the position of his
government on this question. E/PC/T/180
pa"e 67
(b) in the case of &n iimport iaonopo3.y, arrangomexits
dosigned to linit or reduce any protection that might
be afforded throuCh zhu oper2%i2un of' the r.onopoly to
dornostic producers of thu nionopolized product, or
designed to prevent any 1i4nitation Df' iînports to en
extent incoi%.istcnt *ith tho provibions of this Chartor.
2. In order to satisfy the raquiroiments of sub-paragraph 1(b)
of this Articlo, the Member ne.intainin; a monopoJ.y shall nogotiato
(a) for thu establisirixcrit of the maximum iriipDrt duty
that may bo i:<.;cd in rcspect of thc, prc;dtict concerned; or
(b) for any othor mut-:L.Ily satisfactory arrangement con-
sist6nt with tho provisions of chi!3 Cherter if it is evidont
to tho negotiati.ng pertiûs thlEbt to n,;oltîi;tc e rsieximium import
duty under sub-peregraph (L) of' th is pa, s>-re.raph is impracticablo
or would bG ine;ffoct!ivre for thG r.chiovû7eîit of the objectives
of pereGreph 1 of this Lrticlo.
hny 4c.raber '.nteîiinC into nogotiations undor sub-paraeraph (b)
of this pareGraph shai11 afford -tn other intorostod ?Lfombers an
opportunity for cornsultation in respect o' th., proposoc arranEemont.
3. In exiy ce.so in which suL;ixw.!n irnpCrt du'y i5 not zioEotiatod
under paragraph 2(a) of t'is Articlc, tho àlembo:r maintaininE the
import monopoly sha11 makc pUblic or notify the Organization of
the maximum import duty which it vri.l. apply ir. rospoet of the
product concorncd..
If the maximum import duty is not bound by negotiations
according to sub-paragraph 2(a) the M¢cîbt r is free to change
at any tino the declared maximuum import duty, provided such
change is mado public or notifiod to the Orgenization. E/PC/T/180
page 68
4. Tho price chnrgod by tho import monopoly f'or tho irrportcd
product in thc horuc m-arket shall not exceed tho landed cost plus
the rmeximwun import duty noCotiat;d undor pa.reGrFph 2 of this
L.rticlc or nerdo public or notified to tho OrCanizetion undor
paragraph 3 Of this Irticlc, aftcr due allowance for internal
taxes, transportation, distribution and other oxpenscs incident
to thc purchesc, sc.le or further piocossin.,, and for a rcasonablo
marCin of profit; Provided thet reGard may bc had to average
lendcd costs and sclli-r prices over recent periods; and Providod
further that, v"-;h, thc, produc' concerned is a primary product
and thc subject of a domtrstic prico stabilization arranger.ont,
provision n:ay bu riede for adjustrment to take account of viido
fluctuations or variations in viorld prices subject, whcre a
maximuri duty has btn noeotieted, to agreement between the
countries parties to the neGotïation.
5. With reCard to eny product to which tho provisions of this
Lrticle apply the monopoly shall, wherever this principle can be
offoctivcly applied and subject to the other provisions of this
Charter, import and offer for sale such quantities of thc product
as will be sufficient to satisfy tho full doLmcstic demand for tho
impcrted product, account boing taken of any rationinC. to con-
sumers of the imported and like domestic product which mey bc
in force et that tint.
Zera7r& h 4
With roforonco to the second proviso, the method and degrec
of adjustment to be permitted in the casG of a primary product
that is tho subject of a domestic price stabilization arrea,.gÇicant
should normally bc a matter for aGreeiont at the time of tho
negotiations under sub-pareeraph (a) of paragraph 2. page 69
6. In applying the.provisions of this Article, due regard
shall bo had for the fact that some monopolies- are established
and operated mainly for social, cultural,humanitarian or
revenues purposes.
7. This Article shall not limit the use by Members of
any form of assistance to domestic producers permitted by
other provisions of this Charter. E/PC/T/180
page 70
SECTION E - GENERAL COMORCIAL PROVISIONS.
ARTICLE 32
Freedom of Transit
1. Goods (incladinj, ba-jEa"e), -nir± also vessels and other
r.eans of transport, shall be dea.:ud to be in trcasit across
the territory of a L.evber, whern the paszet-e across such
territory with or without trans-siiir1t, ;arehou1ing,
breaking bulk, or chan(,e in the nmode of transport, is orily a
portion of aw coiLplete journey be-,inininC and teriatinC
beyond the frontier of the L':o:ber across vlhose territory the
traffic passes. Traffic of this nriture is ter~,ed in this
article "trafio in transit".
2. There shull be fredom oi' transit throuCh cach Lneber
country via the routes most convenient for international
transit 'or truli'ic in transit to or 'rosa other i.e.,ber countries.
No distinction uhdll be Lade which is ba.sed on the flJaL of
vessels, the place of ori: in, departure, entry, exit or destina-
tion, or on any circutr,;sta;..ces relatin; to the o..norship of
Soods, of vessels or of other Iiieans of transport.
The Delerate for Chile f^intained, l'or the tiïme bein-,
the view that '.rticle 32 should be coni'ined to goods only, in
,;hich case the vzcrds "and als vessels arnd other ieans of
transport" sliould be deleted, E/PC/T/180
page 71
3. ,ny :e-aber r,.a ; re vire tl«t tr&'ic in transit throu,';h
its territory be zntcîced .t the Roperer custoi.s house, but,
excei)t in ctses of ;:,iîlure to cofi7ply ,ith a-,lic 1e oustor;ms
laws anc retànç t1tiors, such tral'ic coin" ;Eroi or ,oinE to
other i:ember countries shall not be subject to aMy unneces-
2ary delays or restrictions and shal1 be exer;pt irom custoiris
duties and from al1 transit duties or other cîl.r~.z-es irr.posed
in respect of transit, except char--es ifor tr nsportation or
those coucnaurate ,ith acttinis r.tive expenses entailed by
transit or i-;ith thG cost of services rendered.
4. All charges r&.n reoultions imposed by Leanbers on traffic
in transit to or zrom other keiaber countries s ber1 b6 reaon-
;.ble, h vin, reÈfard to tIhe conditions of the trcJf'fic.
5. ^'.ith respect to e;11 charges, rsaulations ànd c ornLalities
in connection v.ith tr-nsit, each le.ber shll accord to
tra2 fic irn transit to or froz: any other L.ember country treat-
Lent no less ravourable than the treutmont accorded to traffic
in transit to or f[ron anyr third country.
?ars. raph 5.
.lith rear to transport -hari;es, the principle of Lara-
-,ra;h 5 refers to like products beinSr trEinsported on the sax-e
route under like conditions. E/Pc/T/1 80
page 72
6. Lch i .Lbei 5wll accord to croducts which have beeri in
traxisit through any other l..er ber country tre.tn:ent no less
favcurJble than that ~,'hich - oulu P..ve boer accorded to such
products thud they been transported froei their place o2 origin
to their destination without t 3oir. throu,.;h such other i.erzber
cou.ntry. Any 1.:c;ber shall, hoviever, be frce to maintain its
rzc.uirenùeiits oi' direct consiggricnt àxistin, on the day co the
Gi,.LL.ature Of this Churter, in rs zect of ainy Goods in regard
to which such direct consiznrnent is a reouisitc condition ofl
1. r 1ility f'or entry of tht; Coods ut profocrential rates of
duty or has relation to thle 1,e::ber:s prescribed r.ithod oe
v;lu..tiori for duty purposes,
7. The provisions of th1ls Article slall not apply to the
operation of' aircraft in transit, but shall apply to air.
transit of' eoods (including ba ;ane).
The Dele;,:ate f or Frsnce recorded a reserv-.tion on tMis
p&raraph in the course oif the Discussion of Article 16. E/P 73T/18n
i,.z;,ï:o 73
1. No anti-dumpir.g duty shall bc leovid on any product o'
any HeUr courltz'y irlorted into any othw i. eber-country iî
exoesa of an amaouat equal to the mLrgin of dumping urider
v:i¢h such product is beinri imnported. For the purposes of
this A-tiicle, tna orfrgin 0f durapinj, shull be understood to
mean the .oLÙiJ by %nhiali the )ricu of the product expjr-ed
frorm one country to another
(a) i.s less than the co:a ,rable- prica, in the ordinary
course of tracde, for the, lika product when destined for
consu.;;ption in the exportinG country, or,
(b) in the absence 6f su^h domestic price, i.s leas than
either
(i) the his-hcst Cax.r-.bi price for th.c lik;e
Product for expoit to ariy tbird country in the
ordinary couiu>e of traele, or
(ii) the co0t oi' production of the product in the
country o2 ori-in plus i reasonable addition
ror selling cost und profit.
Due alloivance shali be r-.ade in each c-esa i'or difforcnces in
conditions and tern,.s of sal, for 0 '4Cercnces in-taxation,
Airti clec«
The TJe1c0, .te for Cilba vJoulci h;l.-£va p 2re to introduce
the hrticlc by un exrcas stuteier.t of ccr.detnation of fIwxpirig.
Petra;-rrah a.:
b{idL.en dur.nin- by ;issociCtcd houses (thit is, the sale by
the ir.rocrters ut a price bc-low that corrcsondir±j, to the price
invoiced by the expcrter %iith which t!e iL.tporter is associated,
and -1so bclov. tho )rio ixi thec o.L'cin country) coristitutes
a 2'ora of rice dur.ipirs.s
- "ICL"
-1--j. , 33
and Ccuntervailinr,: Daties ;> lC/T/1&OS
..wj foio other iif'ferences a2ructin price ooprability.
2. No counterv1!iir;!; duty shall be 1evied oit ,ny .roduct of'
any ..c-nbcr country iL.)orted into another i.crtber country in
excess of? <n amount u ta the estîuL. tod3 ùuïlty or subsidy
Ùctei-i.Lined to li.VC been <-ranted, directly or irc,.irectly, on
tho rinu.:Ucture, production or export of such ,Jroduct in tho
country of orl;in or exportution, ixicluin~: -;ny special sub-
sidy to the trunsiort:ition or a" particular .ro1duct. Tho
terni "coLrtcrvsilin cluty" sba11 be unccrstood to ,e:-in a
speciall duty lcviEd for the rosee of' o;'settiraù, cLny bounty
or subsidy bestoi.eed, directly or indirectly, upon the manu-
£'acture, production or exportaition of any maerchanuise.
3. No product ot any MoIibur country imported into any other
Yorber country shall ue subject ta anti-duLr.pinû or counter-
vailhr. duty by reason of' tho exemption of such product from
duties or taxes borne by the likc prcduct ,.hen destined for
consuiiptior, in thE country of ori.iii or a>.po:ct,.tion, or by
reason of the rciuan of such duties or taxes.
?___________...____..__________________________________________
irç.re.ohw_2:
L.u~.ti.1e our.:enry pructicos ;aay in certain circuistzflces
COllotitI2tu a subsidy ta exnorts *.hich can bu rn:t by counter-
vailing cduties rider pazzx-raph 2 or rnay constitute a form of
dULpini. byr zeans of a partial depreciation of` a ccuntry's
mJ " xcYcy whil. cla cai bc iaot by action under oarrafh1 of this
Article. By "multiple curconcy practices is re-ant practices
by movernioacnts or sanctionrad by Govcrnrients. E/PC/T/1. '0
page 75'
4. N:o product of' any Member country imported into any
other Member country shall bc subject to both inti-dumping
and countervailiag cluties to coirpcnrsate Lor the saiae
situation of duii.pinS or export subsidiza:tion.
5. No L*Iember shall levy any uLnti-dumlpinG or counter-
vailing duty on the importation oD any product Oa another
Member co"'rtry unless it determines thut the ei'ect oa the
dumping or subsidization, as the case nay be, is euch as to
cause or threaten material injury to an established domestio
industry, or is such as to prevent or ru.terially retard the
establishment oa a doiostic industry. The Organizat!Qn may
waive the requirements of this para-raph so as to permit a
Liember to levy an anti-ducpin_ duty or countervailing duty
on the importation oa any product for the purpose of off-
setting dumping or subsidization which causes or threatens
material, injury to an industry in another I esrber country
exporting the product concerned .t.o the importing L.ber
country. It is recognized that the imnport,.tion oa products
exported under a stabilization systera determined to have
conforiaed to the conditions prescribed in
Article 27 wôuld not result in material injury under the
ternis oi this para-raph.
r 5:
The Deleoations oIf Be1eJ-ium-Luzevibourg, Czecho-
slovakia, Prunce and the ietherlands expressed the feur that
abuses niiEht be co=,iLitted under cover of the provisions of
paragraph 5 regarding the threat of injury, oa which a State
might takLe advantage on the pretext that it intended to
establish some neiv domestic industry in the more or less
distant future. It is considered, however, t.:t, if such
ab'izs viere coeiaiîtted, the general provisions of the Charter
would ^: adequateto deal with them. E/PC/T/180
Page 76
6. No measures other than anti-dum,ing or countervailing
datic's shall be applied by any Member in respect of any
product of any other Member country for the purpose of offO-
setting dumping or subsidization.
-Paragraph 6.
The addition of this paragraph was supported by
twelve delegations and opposed by tour.
The obligations set forth in paragraph 6
are, as in the case of all other obligations under ChapterlV,
subject to the provisions of Article 40, F/PC/T/18U
page 77
ARTICLE
Valuation for Customs Purposes
1. The Members shal.l work toward the standardization, as far
as practicable, of definitions of value and of procedures for
determining the value of products subject to custems duties or
other charges or restrictions based upon or reguIated in any
manner by value. With a view to furthering such co-operation,
the Organization may study and recommend to Members such bases
and methods for determining value for customs purposes as would
appear best suited to the needs of commerce and most capable of
general adoption.
2. The Members recognize the validity of the general
principles of valuation set forth in the paragraphs 3, 4 and 5
of this Article, and they undertake to give effect to such
principles, in respect of all products subject to duties or
other charts or restrictions on importation and exportation
based upon or regulated in any manner by value, at the earliest
practicable date. Moreover, they shall, upon a request by
another Momber, review the operation of any of their laws or
regulations relating to value for customs purposes in the light
of these principles. The Organization may request from
Members reports on stops taken by them in pursuance of the
provisions of this Article.
_____________________________________________________________
Paragraph 2.
The Preparatory Committee considered the desirability
of replacing the words "at the earliest practicable date"
by a definite date or, alternatively, by a provision for a
specified limited period to be fixed later. The Committe
appreciated that it would not be possible for all Members
to give effect to these principles by a fixed time. but it
was nevertheless understood that a majority of the Members
would give effect to them at the time the Charter enters
Into force. E/PC/T/180
Page 78
3. (a). The value for customs purposes of imported merchandise
should be based on the actual value of the imported merchandise
on which duty is assessed or of like merchandise, and should
not be based on the value of merchandise of national origin or
on arbitrary or fictitious values.
(b). "Actual value" should be the price at which at a time
and place determined by the legislation of the country of
importation and in tha ordinary course ai trado, such or lIke
merchandise is sold or offered for sale under fully competitive
conditions. To the extent ta which the price oa such or lika
merchandise is governed by the quantity in a particular
transaction, the price to be considered should uniformly be
related to either (ï) comparable quantities 7 or (il) quantities
not less favourable to importars than those in which the greater
volume of tha merchandise is sold in tho trade between the
countries of exportation and importation.
(c). When the actual value is not ascertainable in
accordance with sub-paragraph (b) of this paragraph, the value
for customs purposes should be based on the nearest ascertainable
equivalent of such value
____________________.__________________________________________-
Paragraph S.
It would be in conformity with Articlo 34 to presume
that "actual value" may be represented by the invoice prico, plus
any non-included charges for legitimate costs which are proper
elements of "actual value" and plus any abnormal discount or
other reduction from the ordinary competitive price.
It would be in conformity with Article 34 (2) (a) for a
Member to construe the phrase "in tile ordinary course of trade",
read in conjunction with "under fully competitive conditions",
as excluding any transaction wherein the buyr and seller are not
independent of each other and price is not the sole consideration.
The prescribc-d standard of "fully competitive conditions"
permits Members to exclude from consideration distributors?
prices which involve spacial discount limited to exclusive agents.
The wording of (a) and (b) permits a Member to assess
uniformly either (1) on `ne basis of a particular exporter's
prices of the imported merchandise, or (2) on the basis oa the
general price level of like merchandise.
. The Delegate oa Chilc reserved his position for the time
being. page 79
4. The value for customs purposes of any imported product
should not include the amount of any internal tax applicable
within the country of origin or export, from which the imported
product has been exempted or has been or will be relieved by
means of refund.
5. (a). Except as otherwise provided in this paragraph, where
it is necessary for the purpose of paragraph 3 for a Member to
convert into its own currency a price expressed in the currency
of another country, the conversion rate of exchange to be used
shall be based on the par values of the currencies involved as
cstablished pursuant to the Articles of Agreement of the
International Monetary Fund or by special exchange agreements
entered into pursuant to Article 24 of this Chapter.
(b). Where no such par value has been established, the
conversion rate shall reflect effectivoly the current value of
such currency in commercial transactions.
(c). The Organization, in agreement with the International.
Monetary Fund, shall formulate rules governing the conversion by
Members of any foreign currency in respect of which multiple
rates of exchange are maintained consistently with the Articles
of Agreement of the International Monetary Fund. Any Member may
apply such rules in respect of such foreign currencies for the
purposes of paragraph 3 of this Article as an alternative to the
use of par values. Until such rules are adopted by the
Organization, any Member may employ in respect of any such
foreign currency rules of conversion for the purposes of
paragraph 3 of this Article which are designed to reflect
of.fectively the value of such foreign currency in commercial
transactions. E/PC/T/180
page 80
(d). Nothing in this paragraph shall be construcd to
require any Member to alter the method of converting currencies
for customs purposes, which is applicable in its territory on
tho day of the signature of this Charter, if such alteration
would have the effectt of increasing generally the amounts of duty
payable.
6. The bases and methods for determining the value of products
subject to duties or other charges or restrictions based upon or
regulated in any manner by value should be stable and should be
given sufficient publicity to enable traders to estimate, with
a reasonable degree of certainty, the value for customs
purposes. E/PC/T/180
page 81.
ARTICLE 35
Formalities Connected with
Importation and Exportation
1. The Members recognize that fees and charges, other than
duties, imposed by govermental authorities on or in connection
with importation or exportation should be limited in amount to
the, approxi...ate cost of services rendered and should not
represent an indirect protection to domestic products or a
taxation of imports or exports for fiscal purposes. The
Members also recognize the need for reducing the number and
diversity of such fees and charges, for minimizing the incidence
and complexity of import and export fornmalities, and for
docreasing and simplifying import and export documentation
requirements.
2. The Members shall take action in accordance with the
principles and objectives of paragraph 1 of this Article at the
earliest practicable date. Moreover, they shall, upon request
by another Member, review the operation of any of their laws and
regulations in the light of those principles. The Organization
may request from Members reports on stops ta-;en by them in
pursuance of the provisions of this paragraph.
3. The Organization may study and recommend to Members specific
measures for the simplification and standardization of customs
formalities and techniques and for the elimination of unnecessary
customs requirements. E/PC/T/180
paee 82.
4. No Member shal1 impose substantial penalties for minor
breaches of customs regulations or procedural requirements. In
particular, no penalty in respect of any omission or mistake in
customs documentation which is easily rectifiable and obviously
made without fraudulent intent or gross negligence shall be
greater than necessary to serve merely as a warning.
5. The provisions of this Article shall extend to fees,
charges, formalities and requirements imposed by governmental
authorities in connection with importation and exportation,
including those relating to:
(a) consular transactions, such as consular invoices and )
certificates;
(b) quantitative restrictions;
(c) licensing;
(d) exchange control;
(e) statistical services;
(f) documents, documentation and certification;
(g) analysis and inspection; and
(h) quarantine, sanitation and fumigation.
______________________________________________________________
Paragraph 5,
While Article 35 does not cover the use of multiple rates
of exchange as such, paragraphs 1 and 5 condemn the use of
exchange taxes or fees as a device for implementing multiple
currency practices; if, however, a Member is using multiple
currency exchange fees for balance of payments reasons with the
approval of the International Monetary Fund, the provisions of
paragraph 3 fully safeg ard its position since that paragraph
merely requires that the foes be eliminated at the earliest
practicable date. E/PC/T/180
page 83
ARTICLE 36
Marks of Origin
1. The Members recognize that in adopting and implementing
laws and regulations relating to marks of origin, the difficulties
and inconveniences which such ensures may cause to the commerce
and industry of exporting countries should be reduced to a
minimum.
2. Each Member shall accord to the products of each other
Member country treatment with regard to marking requirements
no less favourable than the treatment accorded to like products
of any third country.
3. Whenever administratively practicable, Members should
permit required marks of origin to be affixed at the time of
importation.
4. The laws and regulations of Members relating to the
marking of imported products shall be such as to permit
compliance without seriously damaging the products, or
materially reducing, their value, or unreasonably increasing
their cost. E/PC/T/180
5. The Members agreers to work in co-operation through the
Orgunization towards the early elimination of unnecessary
marking requirements. The Organization may study and
recommend to Members mesures directed to this end, including
the adoption of schedules of general categories of products,
in respect of which marking requirements operate to restrict
trade to an extent disproportionate to any propor purpose to
be served, and which shall not in any case be required to be
marked to indicate their origin..
6. As a general rule no special duty or penalty should be
imposed by any Member for failure to comply with marking
requirements prior to importation unless corrective marking is
unreasonably delayed. or deceptive marks have been affixed or
the required marking has been intentionally omitted.
__-----_____________________________________________________,-
Paragraph 5
It is thought desirable that the discussion of this
paragraph at meetings of the Working Party on the Technical
Articles. as well as at the Drafting Committee and at its
First Session, should be considered by the Organization when
studying the problem of "the early elimination of
unnecessary requirements as to marks of origin". The
importance of the word "early" in this paragraph is also
emphasized. E/PC/T/180
page 85.
7. The Members shall co-operate with each other and
through the Organization with a view to preventing the use
of trade names in such manner as to misrepresent the true
origin of a product, to the detriment of the distinctive
regional or geographical names of products of a Momber
country, which are protected by the legislation of such
country. Each Member shall accord full and sympathetic
consideration to such requests or representations as may be
made by any other Member regarding the application or the
undertaking set forth in the proceding sentence to names of
products which have been communicated to it by the other
Member. The Organization may recommend a corferenco of
interested Members on this subject.
____________________________________________________________
Paragraph 7
The Delegate for Ciiile reserved his position on this
paragraph. E/PC/T/180
page 86.
ARTICLE
Fublication and Administration of Trade Regulations
1. Lews, reglations, judicial decisions and administrative
rulings of general application made effective by any Member,
pertaining to the classificotion or the valuation of products
for customs purposes, or to rats of duty, taxes or other
charges, or to requirements , restrictions or prohioitions on
imports or exports or on the transfer of payrments therefore,
or affecting their sale, distribution, transportation, insurance,
warehousing, inspection, exhibition, processing, mixing or
other use, shall be published promptly in such a manner as to
enable government and traders to become acquainted with them.
Agreements in force between the government or a governmental
agency of any member country and the government or govermental
agency of any other country affecting international trade policy
shall also be published. Copies of such Iaws; regulations.
decisions, rulings and agreements shall be com...unicatrd promptly
to the Orzanization. This paragraph .shall not require any
Member to disclc' ln-r'. -l'1 lnfu,:Mon which would
impede law enforcement, or otherwise be contrairy to the public
interest or would prejudice the legitimate commercial interests
of p_-l; enterprises, public n:private.
2. No measure of general application by Member
effecting an advance in a rate of duty or other charge on imports
under ar esablished and uniform practice or imposing a new or
more burdensome requirement, restriction or prohibition on
imports, or on the transefer of payments therefor, shall be en-
forced before such measure has been officially published. E/PC/T/180
page 87.
3. (a) Each Member shall administer in a uniform,
impartial and reasonable manner all its laws, regulations,
decisions and rulings of the kind described in para, raph 1
of this article. Moreover,
(b) Each Member shall maintain, or institute as soon
as practicable, judicial, arbitral or administrative tribunals
or procedures for the purpose, inter alia, of the prompt
review and correction of administrative action relating to
customs matters. Such triburals or procedures shall be inde-
pendent of the agencies entrusted with administrative enforce-
ment and their decision shall be implemented by and shall
govern the .practice of such agencies unless an appeal is lodged
with a court or tribunal of superior jurisdiction within the
time prescribed for appeals to be lodged by importers;
Provided that the central administration of such agency may
take steps to obtain a review of the matter in another proceeding
if there is good cause to believe that the decision is
inconsistent with established principles of law or the actual
facts.
(c) The provisions of sub-paragraph (b) of this paragraph
shall not require the elimination or substitution of procedures
in force in a Member country on the day of the signature of
this Charter which in fact provide for an objective impartial
review of administrative action even though such procedures are
not fully or formally independent of the agencies entrusted with
administrative enforcement. i.ny Member employing such procedures
shall, upon request, furnish the Organization with full informa-
tion thereon in order that the Orcanization may determine
whether such procedures conform to the requirements of this sub-
paragraph. E/PC/T/180
Page 88
ARTICLE 38
Information, Statistics and Trade Terminology.
1. The Members shall communicate to the Organization, or to such
agency as may be designated for the purpose by the Organization, as
promptly and in as much detail as is reasonably practicable:
(a) statistics of their external trade in goods (imports,
exports and, where applicable, re-exports, transit and
transhipment and goods in warehouse or in bond);
(b) statistics of governmental revenue from import and export
duties and other taxes on goods moving in international trade
and, in so far as readily ascertainable, of subsidy payments
affecting such trade.
2. So far as possible, the statistics referred to in paragraph 1
of this Article shall be related to tariff classifications and shall
be in such form as to reveal the operation of any restrictions on
importation or exportation which are based on or regulated in any
manner by quantity or value or amounts of exchange made availabIe.
3. The Members shall publish regularly and as promptly as possible
the statistics referred to in paragraph 1 of this Article.
4. Teho Mombers shall pive careful consideration to an.y rocor.Lrind-
ations which the Organiz-tion may make to themi with a vicw to im-
proving the statistical information furnished under paragraph 1 of
this Article.
5. Tho Mernbers shall :-.akr available to thc: Organization, at its
request and in so far as is reasonably practicable, such othcr
statistical information as the Organizatioi miay docm nocessary to E/PC/T/180
Page 89
enable it to fulfil its functions, provided that such information
is not being furnished to other inter-governmental organizations
from which the Organization can obtain the required informtion.
6. The Organization shall act as a centre for the collection,
exchange and publication of statistical information of the kind
referred to in paragraph l of this Article. The Oxganization, in
collaboration with the Economic and Social Council of the United
Nations and its Commissions, and with any other interested inter-
national organization deemed a propriate, may engage in studios
with a view to improving the methods of collecting, analyzing and
publishing economic statistics and may promote the international
comparability of such statistics, including the possible inter-
national adoption of standard tariff and commodity classifications.
7. The Organization, in co-operation with the other organizations
referred to in paragraph 6 of this Article, may also' study the
question of adopting standards, nomenclatures, terms and forms to
be used in international trade and in the official documents and
statistics of Members relating thereto, and may recommend the
general acceptance by Members of such standards, nomenclatures,
terms and forms. E/PC/T/180
Page 90
ARTICLE 39
Boycotts
No Member shall encourage, support or participats
in boycotts or other campaigns which are designed to discourage,
directly or indirectly, the consumption within its
territory of products of any specific Member country or
countries on grounds of origin, or the sale of products for
consumption within other Member countries on grounds of
destination.
_______________________________________________________
Article 39
The Delegates for Lebanon-Syria reserved their position
on this Article. E/PC/T/180
ARTICLE 40 Page 91
Emergency Action on Imports of Particular Products
1. (a) If, as a result of unforeseen developmonts and of the
affect of the obligations incurred by a Member under or pursuant
to this Chapter, including tariff concessions, any product is
being imported into the territory of that Member in such in-
creased 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 t 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 tho
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
competitivo products in the torritory of a Member which receives
or received such preference, the importing Member shall be freo,
if that other Member so requests, to suspend the relevant obliga-
tionin whole or in part or to withdraw or modify the concession
in respect of the product, to tho extent and for such time as
may be necessary to prevent or remedy such injury.
2. Before any Member shaIl take action pursuant to the pro-
visions of paragraph 1 of this Article, it shall give notice in
writing to the Organization as far in advance as may be practi-
cable and shall afford the Organization and those Members
having a substantial interest as exporters of the product con-
cerned 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 Page 92
the Member which has requested the action. In critical cir-
cumstancos, where delay would cause damage which it would be
difficult to repair, such action may be takon provisionally
without prior consultation, on the condition that consultation
shalI 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 pro-
poses to take or continue the action shall, nevertheless, be
free to do so, and if such action is takon or continued, the
affected Members shall then be free, not later than ninety days
after such action is taken, to suspend, upon the expiration of
thirty days from the day on which written notice of such sus-
pension is received by the Organization, the application to the
trade of the Member taking such action, or, in the case envis-
aged 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. Notwithstanding
the provisions of sub-paragraph (a) of this paragraph, whore
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 consultations,
such obligations or concessions as may be necessary to prevent
or remedy the injury.
4 . Nothing, in this rticle 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 E/PC/T/180
Page 93
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. E /PC/T/18 0
Page 94
ARTICLE 41
Consultation.
Each Nember 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, subsidies, 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. Pag e 95
ARTICLE 42
Territorial application of Chapter V
- Frontier traffic - Customs Unions
1. The rights and obligations arisiny under this Chapter
shall be deemed to be in force between each and avery territory
which is a separate customs territory and in respect of which
this Charter has been accepted by a member in accordance with
ArticIe 99.
2. The provisions of this Chapter shall not bc construod to
prevent:
(a) advantages accorded by any Member to adjacent countries
in order to facilitate frontier traffic; or
(b) the formation of a customs union or the adoption of an
interim agreement necessary for the attainment of a
customs union; Provided that the duties and other
regulations of commerce imposed by, or any margins of
proference maintained by, any such union or agreement
in respect of trade with members of the Organization
shall not on the whole bc higher or more stringent
than the average level of the duties and regulations
of commerce or margins of preference applicable in the
constituent territories prior to the formation of such
union or the adoption of such agreement, and Provided
further that any such interim agreement shall include
a definite plan and schedule for the attainment of
such a customs union within a reasonable length of
time.
3. (a) Any Member proposing to enter into a customs union
shall consult with the Organization and shall make available to
it such information regarding the proposed union as will. enable
tho Organization to make such reports and recommendations to
Members as it may deem appropriate. E/PC/T/18 0
Page 96
(b) No Member shall institute or maintain any interim
agreement under the provisions of paragraph 2(b) of this Article
if, after a study of the plan and schedule proposed in such
agreement, the Organization finds that such agreement is not
likely to result in such a customs union within a reasonable
length of time.
(c) The plan or schedule shall not be substantially
altered without consultation with the Organization.
4. For the purpose of this Article a customs territory shall
be understood to mean any territory with respect to which
separate tariffs or other regulations of commerce are maintained
for a substantial part of the trade of such territory with other
territories. A customs union shall be understood to mean the
substitution of a single customs territory for two or more
customs territories, so that all tariffs and other restrictive
regulations of commerce as between the territories of members of
the union are substantially eliminated and substantially the
same tariffs and other regulations of commerce are applied by each
of the members of the union to the trade of territories not
included in the union.
Sub-paragraph 4 of the text proposed by the New York
Drafting Committee has been deleted since the subject dealt with
therein is covered by the new Articlc 15 and by Article 74.
Certain Delegates, however, were in favour of its retention. E/PC/T/180
Page 97.
ARTICLE 43
General Exceptions to Chapter lV
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 euforcement by any Member of measures:
I. (a) necessary to protect public morels;
(b) necessary to protet human, animal or plant life
or health;
(c) relating to the importation or exportation of gold
or silver;
(d) necessary to secure compliance with laws or
regulations which are not inconsistent with the
provisions of this Chapter, including those relating to
customs enforcement, the enforcement of monopolies
operated under Section E of this Chapter, the protection
of patents, trade marks and copyrights, and the
prevention of' deceptive practices;
(e) relating to the products of prison labour;
(f) imposed for the protection of national treasures
of artistic, historic or archaeological value;
ARTICLE 43.
The Delegate for India maintained his suggestion that a
Member should be allowed temporarily to discriminate against
the trade of another Member when this is the only effective
measure open to it to retaliate against discrimination practised
by that Member in matters outside the purview of the Organization,
pending a settlement of the issue throush the United Nations.
Paragraph I
The Delegate for the Netherlands proposed that the
following sub-paragraph should be inserted in Part 1: "Necessary
to protect the rights of the grower who improves plants of
commercial use by selection or other scientific method."
The Delegate for Norway re-stated his view that the taxation
and the price policy of Norway's state liquor and wine monopoly
was covered by sub-paragraphs (a) and (b). E/PC/T/180
Page 98.
(g) relating to the conservation of exhaustible natural
reseurces if such measures are made effective in conjunction
with restrictions on domestic production or consumption;
(h) undertaken in pursuance of obligations under inter-
governmental commodity agreements concluded in accordance
with the provisions of Chapter VI; or
(i) involving restrictions on exports of domestic materials
necessary to assure essential quantities of such materials to
a domestic processing incustry duringr periods when the
domestic pricc of such L.. to.lalJ. :is held below the world
price as part of a governmental stabilization plan; Proyïded
that such restrictions shall not operate to increase the
exports of or the protections afforded to such domestic
industry, and shall not depart from the provisions of this
Chapter relating to non-discrimination.
II. (a) Essuntial to the acquisition or distribution of products
in general or local short supply; Provided that any such
measures shall be consistent with any:multilateral arrange-
ments directed to an equitable international distribution of
such products or, in the absence of such arrangements, with
the principle thi, all Members are entitled to an equitable
share of the intornational supply of such products;
(b) essential to the central of prices by a Member country
undergoing shortages subsequent to the war; or
Sub-paragraph I (g)
The Australian Delegation reserved its position.
Paragraph II,
The Delegate of Norway reserved his position on sub-paragraph (b). E/PC/T/18 0
Page 99
(c) 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 Mernber
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.
Measures instituted or maintaind under Part Il of this
Article which are inconsistent with the other proivisions of this
Chapter shall be removed as soon as the conditions givig rise
to them have ceased, and in any event not later than 1 January
1951; Provided that this period may, with the concurrence of the
Organization, be extended in respect of the application of any
particular .measure to any particular product by any particular
Member for such further periods as the Organization may specify. E/PC/T/18 0
Page 100.
CHAPTER V - RESTRICTIVE BUSINESS PRAC'TICES
Article 44
General Policy towards Restrictive
Business Practices
1. Each Member shall take appropriate measures, individually
or through the Organization or in both ways, to prevent
business practices affecting international trade whetherr
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 Article 1.
2. Without limiting the generality of paragraph 1 of
this Article, and in order that the Organization may decide
in a particular ir tance 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 in accordance with the
procedure regarding complaints provided in Articles 45 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 arrange-
ment between commercial enterprises,
whether between private commercial enter-
prises, between public commercial enter-
prises, or between private and public
commercial enterprises; and E/PC/T/18 0
Page 101.
(c) such commercial enterprises, individually
or collectively, possess effective control
of trade between two or more countries in one
or more products.
3. The practices referred to in paragraph 2 of this
Article are tha following:
(a) fixing, prices or terms, or conditions
to be observed in dealing with third parties,
in the purchase, sale or lease of any product;
(b) excluding enterprises from any territorial
market or field of business activity, allocat-
ing or dividing any territorial market or
field of business activity, allocating
customers, or fixing 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
whether patented or unpatented;
(f) extending the use of rights under patents,
trade marks or copyrights granted by any Member,
to matters which are determined by its system
of law not to be within the scope of such
grants, or to products or conditions of pro-
duction, use or sale which are similarly
determained not to be the subjects of such
grants; E/P C/T/180
Page 102.
(g) any similer practices which the Organization
.may from time to time decide are restrictive
business practices.
4. In this Chapter the term "public commercial enterprises"
means
(a) trading agencies of governments, and
(b) enterprises mainly or wholly owned by
public authority and ovcr which there is
effective control by public authority,
including control of engagement in a practice
listed in paragraph 3 of this Articlc,
The term privatee commercial enterprises" means all
other commercial enterprises.
The Norwegian Delegation reserved its final
position on Article I4. E/PC/T/180
Page 103.
Article 45
Procedure with respect to investi-
gations and consultations
1. The Organization shall arrange, if it considers such
action to be justified on the basis of information submittod
by the Members concerned, for particular Members to take
part in a consultation requested by any affected Member
which considers 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.
2. A complaint may be presented 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 organïzation within that Member's jurisdiction: Provided
that in the case of a complaint against a single public
commercial enterprise acting independently, such complaint
may be presented only by a Member on its own bohelf and only
after the Member has resorted to the procedure under para-
graph 1 of this Article.
3. 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 para-
graph 1 of Article 44. The information shall give substantial
indication of the nature and harmful effects of the practices.
4. The Organization shall consider each complaint presented
in accordance with paragraph 2 of this Article . If the
Organization deems it appropriate it shall request Members
concerned te furnish supplementary information, for exesrplc,
information from commercial enterprises within their juris-
diction. After reviewing the relevant information the E/PC/T/180
Page 104.
Organization shall decide whether an investigation is
Justified.
5. If the Orgenization decides that an investigation is
justified, it shall notify all Members of the cormplaint,
request any Member to 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 organi-
zation on whoso 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. The Organization shall review all information available
and decide whether the practices in question have had, have
or are about to have the offset described in paragraph 1 of
7. The Organization shall notify all Members of its
decision and the reasons therefor.
8. If the Organization decides that in any particular case
the practices complained of have had, have or are about to
have the effect described in paragraph 1 of Article Q, it
shall request each Member concerned to take every possible
remedial action, and may also recommend to the Menbers con-
cerned remedial measures to be carried out in accordance with
their respective laws and procedures.
9. The Organization may request any Member concerned to
report fully on the remedial. action it has taken in any
particular case. E/PC/T/18 0.
Page 105.
10. As soon as possible after its proceedings in respect
of any complaint under this Article have boon provisionally
or finally closed, the Organization shall prepare and publish
a report showing fully the decisions reached, the reasons
thorefor and any measures recommended to the Members concerned.
The Organization shall not, if any Mermber so requests, dis-
close confidential information furnished by that Member
which if discloscd would substantially damage the logitimate
business interrets of a. comnircial enterprise.
11. The Organization shall report to all Members and
make public the remedial action which has been taken by
the Members concorned in any particular case. E/PC/T/180.
page 106
Article 4,
Studies relating to Restrictive
Business Practices
1. The Organization is authorized
(a) to conduct studios, either on its own initiative or at
the request of' any Member or of any organ of the United
Nations or of eny other inter-Covernmental organization
relating to
(i) general aspects of restrictive business practices
affecting international trade; and
(ii) conventions, laws and procedures concerning, for
exarnple, incorporation. company registration, invest-
ments, securities, prices, markets, fair trade practices,
trade marks, copyrights, patents and the exchange and
developrment of technology, insofar as they are relevant
to restrictive business practices affecting international
trade; and
(iii) the registration of restrictive business agreements
and other arrangements affecting international trade; and
(b) to request information from Members in connection
with such studiùs..
2. The Organization is authorized
(a) to make recommendations to Members concerning such con-
ventions, laws 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 restrictiive business practices
affecting international trade. E/PC/T/180
page 107
Article 47
Obligations of Members
1. Each Member shaIl take, all possible measures by
legislation or otherwise to ensure, within its juris-
diction, that private and public commercial enterprises
do not engage in practices which have the effected de-
scribed in paragraph 1 or .Article Mr, and in addition it
shall assist the organization in preventing these practices,
such assistance to be given in accordance with the Member's
system of law and economic organization.
2. Each Member shall make adequate arrangements for
presenting complaints, conducting investigations, and
preparing information and reports requested by the
Organization.
3. Each Member shall furnish to the Organization, as
promptly and as fully as possible, such information as is
requested by the Organization for its consideration and
investigation of complaints and for its conduct of studios
under this Chapter; Provided that any Member on notification
to the Organization, may withhold information which the
Member considers is not essential to the Organization in
conducting an adequate investigation and which, if dis-
closod, would substantially damage the legitimate business
interests of a comomercial enterprise. In notiiying
the Orgenization that it is i;-thholding information pursuant
to this clause, tho Mombor shall indicato thc general
charactor of the information withheld, and the reasons why
it considers it not essential. E/PC/T/180.
page 108.
4. Each Member shall take full account of each request,
decision and recommendation of the Organization under
Article 45 and, in accordance with its system of law and
economic organisation, 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 end 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 wlth
the Organization if requested to do so.
6. Each Member shall, et the request of the Organization,
take part in consultations and conferences provided for in
this Chapter with .a view to reaching mutually ssatisfactory
conclusions, E/PC/T/180
page 109.
Article 48
Supplementary enforceement
arrangements.
1. Members may co-operate with each other in prohibitive,
preventive -or. .other measures for--the purposc of making more
affective any remedial order issued by a duly authorized
agency of any Member in furtherance of the objectives of this
Chapter.
2. Members participating in or intending to participate
in such co-operativc action shell notify the Organization. E/PC/T/180
page 110
Article 49
Domestic Measures against
Restrictive Business Practices
No act or omission to act on the part
of the Organizetion shall proclude any Member from
enforcing any national statute or decree directed
towards preventing monopoly or restraint of trade. E/PC/T/180
page 111.
Article 50
Procedure with respect to servicos.
1. The Members recognise that certain services, such
as transportation, telecommunications, insurance and bank-
ing, are substantial elements of international trade, and
that any restrictive business practices in relatïon to them
may have harmful effects 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.
2. If any Member considers that there exist restrictive
businoss practices in relation to a service referred to
in paragraph 1 of this Article which have or are about to
have such harmful effects, and that its interests are
thereby seriously prejudiced, the Member may submit a.
written statement explaining the situation to the Member
or Members the private or public enterprises of which are
engaged in tho 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 affording adequate opportunities for consultation,
with a. view to Efffecting a satisfactory adjustment.
3. If no adjustment can be effected in accordance with
the provisions of paragraph 2 of this Article, and if the
matter is referred to the Organization, it shell be trans-
ferred to the appropriate inter-governmental organization
if one exists, with such observations as the Organization
may wish to make. If no such inter-governmental organization E/PC/T/180
page 112
exists, Members may ask the Organization, under Article
6?(c), to make recommendations for, and promote inter-
national 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 accordance with
paragraph 2 of Article 84, co-operate with inter-governmental
organizations in connection with restrictive business practice
affecting any field coming within the scope of this Charter
and those organizations shell be entitled to consult the
Organization, to seek advice, and to ask that a study of a
particular problem be made.
The Norwegian Delegation reserved its final position on Article 50,
in view of the fact that the Intergovernmental Maritime Consulta-
tive Commission would have a meeting in November 1947, and only
after the results of that meeting were known would it be possible
for the Norwegian Government to define its final attitude to
this Article. Tho French Delegation adhered to the .reservation
of the Norwegian Delegation. E/PC/T/180
Page 113
Article 51
Exceptions to the provisions.
of this Chapter
1. The obligations in this Chapter shall not apply to:
(a) inter-governmental commodity agreements
meeting the requirements of Chapter VI; and
(b) any bilateral inter-governmental agreement
relating to the purchase or sale of a
commodity falling under Section D of
Chapter IV.
2. Notwithstanding paragraph 1 of this article, the
Organization may make recommendations to Members and to
appropriate inter-governmental organisations concerning
any features of the agreements referred to in paragraph l (b)
of this Article which may have the offset described in
paragraph 1 or Article 44
The United Kingdom Delegation reserved its position on
Article 51, Page 114 CHAPTER VI
INTER-GOVERNMENTAL COMMODITY AGREMENTS
SECTION A - INTRODUCTORY CONSIDERATIONS
AERTICLE 52
Difficulties relatïng to primary commodities
.The Members recognise that the conditions under which
some primary commodities are produced, exchanged and
consumed are such that international trade in these
commodities may be affected by special difficulties such as
the tendency awards persistent disequilibrium between
production and consumption, the accumulation of burdensome
stocks and pronounced fluctuations in prices. These
special difficulties may have serious adverse effects on
the interests of producers and consumers, as well as wide-
spread repercussions jeopardising the general policy of
economic expansion. The Members recognise that such
difficulties may, at times, necessitate special treatment
of the internat onal trade in such coiLiodities through
inter- governmental agreement.
Article 52 In Article 52. reference to the need to adopt
"special treatment of the international trade in such
commodities", merely means that international trade is the
aspect of a particular commodity problem directly
appropriate for international treatment. Agreement
regarding the treatment of the international trade in a
commodity might, of course, involve agreement regarding
production or consumption of the commodity. E/PC/T/180
Page 115
ARTICLE
Primary and. related commodities
1. For the purposes of this Chapter, the term "primary
commodity" means any product of farm forest or fishery or
any mineral, in its natural from or which has undergone such
processing as is customarily required to prepare it for
marketing in substantial volume in international trade.
2. The terrn shall also cover a group of commodities, of
which one is a primary commodity as defined in paragraph 1
of this Article an tho others are commodities (whether
primary or non-primary) which are so closely related, as
regards conditions of production or utilisatiin, to the other
commodities in the group, that it is appropriate to deal
with them in a single agreement.
3. If, in exceptional circumstances, the Organisation finds
that the conditions set forth in Article 59 exist in the case
of a commodity which does not fall precisely under paragraphs
1 or 2' of this Article, the Organisation may decide that the
provisions o' this Chapter, together with any other require-
ments it may establish, shall apply to inter-governmental
agreements .regarding that commodity. E/PC/T/180
Page 116
ARTICLE ,
Objectives of inter-governmental commodity agreements
The Members recognise that inter-governmental commodity
agreements may be employed to achieve the following objectives:
(a) to prevent or alleviate the serious economic
difficulties which may arise when adjustments between production
and consmuption cannot be effected by normal market forces
alone as rapidly as the circumstances require;
(b) to provide, during, the period which may be necessary,
a framework for the consideration and development of measures
which have as their purpose economic adjustments designed to
promote the expansion of consumtion or a shift of resources
and manpower out of over-expanded industries into new and
productive occupations;
(c) to moderate pronounced fluctuations in the price of a
primary commodity with a view to achieving a reasonable
degree of stability on a basis of pricos fair to consumers
and remunerative to efficient producers, having regard to the
desirability of securing long-term equilibrium between the
forces of supply and demand;
(d) to maintain and develop the natural resources of the
world and protect them from unnecessary exhaustion;
(e) to provide for trle expansion of tho Production of a
primary commodity where this can be accomplished with
advantage to consumers and producors;
(f) to assure the equitable distribution of a primary
commodity in short supply. E/PC/T/180
Page 117.
SECTION B - INTER-GOVERNMENTAL COMMODITY AGREEMENTS IN
GENERAL
ARTICLE 55
Commodity Studies
1. Any Member which is substantially interested in the production
or consumption of, or trade in, a particular primary commodity,
and which considers that international trade in that commodity
is, or is likely to be, affected by special difficulties, shall
bc entitled to ask that a study of the commodity be made.
2. Unless it decides that a prima facie case has not been
established, the Organization shall promptly invite cach Member
to appoint representatives to a study group to make a study of
the commodity if the Member considers that it is substantially
interested in the productions or consumption of, or trade in, the
commodity. Non-Members may also be invited.
3. The study group shall promptly investigate the production,
consumption and trade situation in regard to the commodity and
shall report to the participating Governments and to the
Organization its findings and its recommendations as to Now best
to deal with any special difficulties which may exist or may be
expected to arise. The Organization shall promptly transmit to
the Members these findings and recommendations. E/PC/T/180
Page 118
ARTICLE 56
Commodity Conferences
1. On the basis of the recommendations of a study group,
or at the request of Members whose interest represents a
substantial part of world production or consumption of, or
trade in, a particular primary commodity, the Organization
shall promptly convene an inter-governmental conference to
discuss measures designed to meet the special difficulties
which exist or are expected to arise. The Organization may
also, on its own initiative, call such a conference on the
basis of information agreed to be adequate by the Members
substantially interested in the production or consumption of,
or trade in, the commodity concerned.
2. Each Membcr which considers that it is substantially
interested in the production or consumption of, or trade in,
the commodity concerned, shall be invitod to participate in
such a conference. Non-Members may also be invited to
participate. E/rC/T/180
Pa;re 119,
Gon. ral PriiLqj pVer1,.l:ntEIovc>r ;'b1
Coi.:-m.o ,^,1 it' iL. r - iC! _ _ _ t S
1. The Mcoiibers shall obsorvo the l oiiow:.ng prJ.r.c.b1es
governing the conclusion > o\i o :.ratic.!n of all typcs of inter-
goveriimental co-mmodity n.,rc.rict:
(a) suc. agrc,_o .lts shl.ll b( cpon to p:rt.i.cp.t:.on i.itiahly
by any Momizr on teriis no ].oss iavo2ranble th.n c-o!oe accorded
to any otlier country and thorcaft .c, in accord ..iicL \rith sich
procedure and unon sucli terms as may bc est:tblishod in tlio
agrocoment subj-,ct to prov..i by thl;h OrGc.niz:.tion;
(b) nen-M-;:: ay bs- invited by thc Or;-.ïullzi.tion to,
particin.:..tc in :uch agre..rnts aïid thc QJ.'ovîsioi-s of sub-parugraph
(a) a;)l1lyiîig to Mc.;ib.,rs shail iy to aîly non-'1 c:b;r se îvlited;
(c) Under such agrciix .at; tl;- shna1 be cquil'.tablc treatment
as botwcon v rticb:..in, couitrics und lion-part`Icipat..n- members,
.:.r.d the trtx.tro:it accorded by partfLcipating countries to non-
pc.rticiia.tin", i.erz sh. ll b,. no lcss f<:vour.o than that
accorded to any ncn-paI':!.clotin, non-Na:;b.r, duo consiïdcration
bïirfg given in O c-.C' C to police _ deptec by,, rLon*-participants
in relation to obligations asnid and advaLrtages conferred
undcr thc; agreomctt;
Cd) such agrcx:w.nts shrl:L ,ncludc Mroàvîsieo Lor adea.te
participation of countries sl.bstantially interested in t'¾
importation or consum-otion of the comlodity as x;eli as those
substantially interested in its exortn-tion or production ;
(c) full publicity shall bo given to any inter-governscetal
corarodity agrce:rent proposed or conclded, to tlhc sta.toerints of
considerations ande objectives aclvanced by the ,opOsinl embers,
to the nature and devDlopmont of uwcasures adopted to co: ect the
unxderlyinC situation Whfl-ich gave risc to the agrecL.ent anid,
periodically, to tcho oproation of the agroe:uent. E/PC/T/180
Page 120
2. The Members, Mnc lv.ing, Me.^brs nlot ps.rties to a
1jc.rticulc.r coir-modity.,rc_!:ict, sl.i1 givo favourcI;lc considcra-
tion to any recor:.ieond.:tion Ll:,.do undor such agreicmnt for
cxpa:ndling conlsuu.pt±cOm.1 of thc. conum.odity in question. E/PC/T/180
Page 121
ARTICLE 58
Types of Agreements
1. For the purposes of this Chapter, there shall be
recognised two classes of inter-governmental commodity agree-
ments:
(a) commodity control agreements as defined in
this Article; and
(b) other inter-governmental comnodity agreements.
2. Subject to to provisions of paragraph 5 of this Article,
a commodity control agreement is an inter-governmental agree-
ment which involves:
(a) the regulation of production or the quantitative
control of exports or imports of a primary commodity and which
has the purpose or Llight have the effect of reducing, or
preventing an increase in, the production of, or trade in, that
commodity; or
(b) thc regulation of prices.
3. The Organisation shall, on the request of a Member, a
study group or a commodity conference, decide whether an
existing or proposed inter-governmental agreement is a commodity
control agreement within the meaning of paragraph 2 of this
Article.
(a) Commodity control agreements shall be subject to all
the provisions of this Chapter.
(b) Other inter-governmental commodity agreements shall
be subject to the provisions of this Chapter other than those
of Section C. If, however, the Organisation decides that an
agreement which involves the regulation of production or the
quantitative control of exports or imports is not a commodity
control agreement within the maaninc of paragraph 2 of this
Article, it shaIl prescribe thc provisions of Section C, if any,
to which that agreement shall conform. E/PC/T/180
Page i22
5'. The Organisation may decide that an existing or proposed
inter-goverrnuental agrooeaont which has the piirposc of securing
the co-ordinated expansion of acgrogate world production and
consumption of a primary commodity is not a commodity control
agrooment even though the agrrocment contains provision for the
future application of mirlirïrum prices. lIowover, any such
agrocmont shall be derned to bc a conmodity control agromrocnt and
shall conform to all the provisions of Section C from the date on
which its rniriinuzn prico provisions boco.iae eporative.
6. Tho Monbers uiidertako not to enter into any new connodity
control agreement, unless it has beozi rocou,!!ondod by a conference
called in accordance with Article 56, If, in an exceptional
case, there has beocn unreasonable delay in the proceedings of the
study group or of thE coi,,iodity conference, Members substantially
interested in the production or consurption of, or tradein, a
particular primary corzlodity, rmay proceed by direct negotiation
to the conclusion of an agreement, provided that it conforms to
the other provisions of this Chapter. E/PC/T/180
page 123
SECTION C - INTER-GOVERNMENTAL COMMODITY
CONTROL AGREEMENTS
ARTICLE 59
Circurnstances Governing the use of Commodity Control Agreements
1. The Members agree that cosrulodity control agreciLonts rmay
be oiployod only wlen it is determined that:
(a) a. burdensonc surplus of a primary comuiodity has
developQd or is cpected to dovolop, which, in thç absence of
spGcifiC governmontal action, would cause serious hardship ta
producers amonc whom ara small producers who account for a
substantial portion of tho total output, and that these conditions
could not bc corrected by normal iiarkot forces in timo ta prevent
such hardship, because, characterïistically in tho case of the
primary conr.odity concerned, a substantial reduction in price doos
not readily lead ta a significant Increase in. consumlption or to a
significant decrease in production; or
(b) widosproad uneraploy.ont or undor-omploynent in connection
with a primary cornnodity, arising out of difficulties of the kind
referred to in Articlc 52, has devolopcd or is expected ta develop,
which, in the absence of specific governmental action, would not bc
corrcctod by normal raarkat forces in time ta prevent widespread
and undue hardship ta workers bccausc, characteristically in the
case of the industry concerned, a substantial reduction in price
does not readily lcad to a significant increase in consumption but
ta a reduction of camploynent, and because arcas in which the
conaodity is produced in substantial quantity do not afford
alternative eraploy'ent opportunities forfie workers involved.
2. Datorrinations under this Article shall be made through the
Organization by consultation and agrecnent among Members
substantially interested in the connodity concerned. E/PC/T/180
page 124
ARTICLE 60
Additional Principles Governing Commodity Control Agreements
The Members shall observe the following principles
governing the conclusion and operation of commodity control
agreements in addition to those stated in Article 57
(a) such agreements shall be designed to assure the
availability of supplies adequate at all times for world
demand at reasonable prices, and, when practicable, shall
provide for measures designed to expand world consumption of
the commodity;
(b) under such agreements, participating countries
which are largely interested in imports of the commodity con-
cerned shall, in decisions on substantive matters, have
together a number of' votes equal to that of those largely
interested 'in obtaining oxport markets for the commodity.
Any participating country, which is largely interested in the
commodity but which does not fall- precisely under either ofSie
above classos, shall have an appropriate voice within such
classes;
Article 60 (a)
The term "reasonable" as applying to prices in-sub-paragraph (a)
is to bc interpreted as in Article ,f<c).
Article 6Ob)
Unde- su>,-paragraph (b)
Ci) thore shall be no more than two groups of countries
within an agreement, and that the principle ofl "equal
voice" in substantive matters shall apply as between them;
(ii) countries which are large producers and consumers of the
commodity concerned, but which are not large exportors or
importerss, shall have an appropriate voico.
It is recommended that.any difference on voting arrange-
ments. which cannot be settled in a commodity conference should
be dealt with in the same manner as laid down in Article 63(67)
for the settlement of difforcnces concerning coinuodity control
agreements. E/PC/T/180
page 125
(c) such agreements shall make appropriato provision
to afford increasing opportunities for satisfying national
consumption and world market requirements from sources from
which such requirements can be supplied in the most effective
and oconomnic manner, due regard boxing had to the nood for
preventing serious economic an.d social dislocation and to the
position of producing areas suffering from abnormal disabilities;
(d) partïicpating countries shall foroualte and adopt
programmes of internal economic adjustment believed to bo
adequate to ensure as much progress as practicable within the
duration of the agreement towards solution of the commodity
problem involved. E/PC/T/180
page 126
ARTICLE 61
Administration of Commodity Control Agreements
1. Each commodity control agreement shall provide for the
establishment of a governing body, hereinreferred to as a
Commodity Council, which shall operate in conformity with the
provisions of this Article.
2. Each participating country shall be ,entitled to have one
representative on the Commodity Council. The voting power of
the representatives shall be determined in such a way as to
conform with the provisions of Article 60(b).
3. The Organization shall be entitled to appoint a non-voting
representative to each Commodity Council and may invite any
competent inter-governmentul organization to nominate a non-
voting representative for appointment to a Comrnodity Council.,
4. Each Commodity Council shall appoint a non-voting chairman
who, if the Council so requests, may be nominated by the
Organization.
5. The Secretariat of each Commodity Council shall be
appointed by the Council after consultation with the Organiza-
tion.
6. Each Commodity Council shall adopt appropriate rules of
procedure and regulations regarding its activities. The
Organization may at any time require their amendment if it
finds that they are inconsistent with the provisions of this
Chapter. E/PC/T/180
page 127
7. Each Commodity Council shall make periodic reports to
the Organization on the operation of the agreement which it
adIniListers. In addition it shall make such special reports
Ls the O:ganilzation may :oquire or as the Council itself con-
si.de:'. -.;o bec oi' value to the UrgaiLizatien.
$. ''ho cxplens;s oe a Con.modity Courcil shahl bc borne by
9. 1 ihen an ag..eomnont is torrnlinated, the Organization shall
tcl'O. r:.ae éo tho archivDs knd statiLrtical material of tle
C.om-c;ky > Cuncîl. E/PC/ T/ 180
pe.'>e 1 28
ARTICLE 62
nqjtia- Tn,- Ravioi and Rônrwal of CormmodtyCtoroi AJrc nts
1. Co=.modity control agroc!;L1 nts shall ba concluded for a
pc riod cf not norc than fivo ycars. Arny rcncwal of a coarnodity
control aracomant, including a3recr.xonts roferrod to in paraZraph
1 of Article 65, shall be for a period not excocding fivo ycars.
The provisions of such ronowed agrecr2onts shall conform tco the
provisions of this Chapter.
2 . ?criodically, at intervals not groatcr than threat yoars,
tho Or",anization shall propara and publish a review of the
opcr.tic.:± of cach agrceriont ln thc light of the principles set
forth in this Chaptor. Moreover, a coiiiaod.ity contrai agrcor.2nt
shall provide that, if thc Or:,anization decides that its
operation las failed sub!tantially to conformn to the principles
laid down in this Chapter, participating countries shall cithor
revise tha agrocnont to conforr.i to the prïlnciplos or torrinata it.
3. CoaLr:ioc'ity contrai agrccronts shall include provisions
rclatin., to withdrawal of any party. E/PC/T/180
page 129
ARTICLE 63
Settlement of Disputes
Each commodity control agreement shall provide that's
(a) any question or difference concerning the
interpretation of the provisions of the agreement or arising
out of its operation shall bc discussed originally by the
Commodity Council;
(b) if the question or difference cannot be resolved
by the Council in the terms of the agreement, it shall be
referred by the Council to the Organization which shall apply
the procedure set forth in Chapter VIII with appropriate
adjustments to cover the case of non-Members. E/PC/T/180
page 130
SECTION D - MISCELLANEOUS PROVISIONS
ARTICLE 6.
Relations with Inter-governmental Organizations
With the object of ensuring appropriate co-operation in
matters relating to inter-governnental commodity agreements,
any inter-governmental organization, which is deemed to be com-
petent by the Organization, such as the Food and Agriculture
Organization, shall be entitled:
(a) to attend any study group or commodity conference;
(b) to ask that a study of a primary commodity be made;
(c) to submit to the Organization any relevant study of
a primary commodity, and, on the basis thereof, to re-
commend to the Organization that further study of the
commodity bc nade or that a commodity conference be
convened. E/PC/T/180
page 131
ARTICLE 65
Obligations of Members regarding existing and prorosed Commodity
Agreements
1. Members shall transmiit to the Organization the full text
of each inter-govornmental corunodity agreerAent in which thoy are
participating at the tire they bocozme Member:, of the OrFaniza-
tion, Members shall. also transr-it to the Organizatioa appropriate
intor.at±o.a regarding the formulation, provisions and operation
of such agroeinents. lei-Dborr, shall confor;n with tho decisions
made by the Organization regarding thoir corntinucd participation
in any such inter-govîurnr.ental coru2odity agreement which, after
roviow by the Organization, shall havco been found to L1 incon-
sistent with tho provisions of' thls Chapter.
2. Members shall transrnt to thc Organizat.iQn appropriate
information regarding any negotiations in which they are par-
ticipating at the timie they becorie Nlonbors of the Organization,
for the conclusion of an inter-goverrinental corim-odity agreement.
Members shall conforrhl with decisions made by the Organization.
regarding thoir cnitieued participation in any such negotiations.
The Orgaïization riay dispense with the roquirements of a study
group or a cor.modity conference, if it finds thon unnecessary
in the light of the nepotiaticns. E/PC/T/180
page 132
ARTICLE 66
Territorial Application
For the purposes of this Chapter, the terms "Member" and
"non-Member" shall mean respectively a Member and non-Member
of the Organization with its dependent territories. If a Member
or non-Member and its dependent territories form a group, of
which one or more units are mainly interested in the export of
a commodity and one or rvlre in the import of the commodity,
there may be either joint representation for all the territories
within the group or, where it is so desired, separate repres-
entation for the territories mainly interested in exportation
and separate representation for the territories mainly
interested in importation. E/PC/T/180
page 133
ARTICLE 67
Exceptions to Provisions Relating to Inter-governmental
Commodity Agreements
1. The provisions of this Cliapter shall not apply:
(a) to any bilateral inter-governmental agreement relating
to the purchase and s;le of a coiamodity falling under
Section D of Chapter Mr;
(b) to any inter-goverrierital cot.r.odoLty agreement involv-
ing no more than onc exportin- country and no .iore than
one importing country, and .not covered by sub-paragraph
(a) abovte; IrovLc-C.! Xe ; u, ijo.; c;oimplaint of a non-
participatlng Membor, thc Oranization f inds that the
interests of that Member are seriously prejudiced by the
agreement, the areoer.ient shall becoiie subject to such
provisions of this Chapter as tho OrZarnization miay
prescribe;
(c) to those provisions of any inter-Covernental comn-
modity aZreement which are necessary for the protection'
of public morals or of hu an, animal or plJant life or
health; Provided that such aercerments arc not used to
accomplish results inconsistent with the objectives of
Chapter V or Chap.:er VI.
2, The provisions of Articles 55 and 56 and of Section C of
this Chapter shall not apply ta inter-Zovornmenitaal commodity
agreements found by the Organization to relate solely.to the
equitable distribution of com=iodities in short supply.
3. The provisions of-Section C of this Chapter shall not apply
to commodity control agreements found by the Organization to
relate solely to the conservation of exhaustible natural
resources. E/PC/T/180
page 134
ANNEXES PERTAINING TO PARAGRAPH 2 OF ARTICLE 16
ANNEX A.
LIST OF TERRITORIES REFERRED TO IN PARAGRAPH 2 (a)
OF ARTICLE 16.
United Kingdom of Great Britain and Northern Ireland
Dependent territories of the United Kingdom of Great
Britain and Northern Ireland
Canada
Commonwealth of Australia
Dependent territories of the Commonwealth of Australia
New Zealand
Dependent territories of New Zealand
Union of South Africa including South West Africa
Ireland
India (as at 10 Apri]l 1947)
Newfoundland
Southern Rhodesia
Burma
Ceylon
Certain of the territories listed above have two or more
preferential rates in force for certain products, Any such
territory maye by agreement with the other Menbers which are
principal suppliers of such products at the most-favoured-
nation rate, substitute for such preferential rates a single
preferential rate which shall not on the whole be less favour-
able to suppliers at the most-favoured-nation rate than the
preferences in force prior to such substitution.
*The imposition of a margin of tariff preference to
replace a margin of preference in an internal tax existing
on 10 April, 1947, exclusively between two or more of the
territories listed in this Annex or to replace the
preferential quantitative arrangements described in the following E/PC/T/180
page 135
ANNEX B
LIST OF TERRITORIES OF TRE FRENCH UNION REFERRED TO
IN PARAGRAPH 2 (b) OF ARTICLE 16.
France
French Equatorial Africa - Treaty Basin of the CongoX
and other territories of French Equatorial Artica
French West Africa
Cameroons under French Mandatex
French Somali Coast and Dep ndencies
French Establishments in Oceania
French Establishments in the Condominium of the New
Hebrides '
Guadeloupe and Dependencies
French Guina
French Establishments in India
Indo-China
Madagascar and Dependencies
Morocco (French zone) K
Martinique
New Caledonia and Dependencies
Reunion
Saint-Pierre and Miquelon
Togo under French Mandate X
Tunisia
x For imports into
Metropolitan Franc', E/PC/T/180
page 136
ANNEX C
LIST OF TERRITORIES OF THE CUSTOMS UNION OF
BELGIUM, LUXEMBURG AND THE NETHERLANDS
REFERRED TO Il PARAGRAPH 2(b) OF ARTICLE 16
The economic Union of Lelgium and Luxemburg
Belgian Congo
Ruanda Urundi
The Netherlands
Nether-lands indies
Surinam
Curacao
;ANNEX D
LIST OF TEMIRTORIES OF THE UNITED STATES 0O
AMIRICA REFERRED TO IN PA11AGRAPH 2(b)
OF ARTICLE 16
United States of Amoei-.'.a (customs territory)
Dependent territories of the United States of America
Republic of the Philippines
The imposition of a margin of' tariff preference in an
internal tax existing on 10 April 1947 exclusively between two
or more of the territories listed in this Annex, shall not be
deemed to constitute an increas - in a margin of tariff preference,
ANNEX C
For imports into the metropolitan territories of
the Customs Union.
The Delegates for the United Kingdom and the United
States provisionally reserved their position on
this Annex. . / t/T/ 1£-C
LIST 0F TERRITORIES COVE,}W'.D BY PREFERENTIAL ARRANiGE-
N1EJTS BE1TIVEEN CHILE AND DIEIGHBOUllING COUXTRIES RE-
FEMRED TO IN PARAGRiAPH 2 (d) OF ARTiCLE 16.
Chile
Peru
ANNEX F
LIST OF TERRITORIES COVRESD BY PREFLRENTIAL ARRANGE-
MENTS BETWEEN THE SYRO-LEBANESE CUSTONIS UNION AiD
NEIGHBOt1RING COtJNTRIES REFERRED TO IN PARAGRAPH 2 (cd)
OF ARTICLE 16.
Prof crances in force exclusively) botwoenXbe
one hand,
The Syro-Lebariese Custons Union
and, on the other hand,
1. Palestine
2. Traisjordan,
respectively, E/PC/T/180 (Continuation)
Page 138
CHAPTER VIl
THE INTERNATIONAL TRADE ORGANIZATION
Section A - Ithructire 7irt i'ln.ct;ions
Art:iclo 63_.S
A or thi 1
1. The original Mernbxers of the Organization shall be those
States invited to the United Nations Conference on Trade and
Emploi/ent whoso Govrrniments acce:;t this Charter by
l94_ in accortEance with Paragraph 1 of Article 98, or, if this
Charter sha1,l not have entered înto force by__
those States whose Goao;rnrnrnt,. gree tu bring this Charter into
force in accorr'ance 'n.th the proviso .in pairF!graDh 2 of Article 98
2. Any other Stat'-z whose m brbship has been approved by the
Confe-ence shall. bece:Le a Meonbfr Of t;12 Organization upon its
acceotanic;e, in accoré?ance with pa1 ofi; Article 98 of this
Charter, aS arefnded up to thi rfate of cuch acc.i tanco.
3. * The fol'.cwJing separate custlo)rs territories, though not
responsible for the formal conduct o. their diplomatic relations,
sliaiX be admitted tc; thc Or.tinizeation such terms as may be
cletoryui.ried: 8** *;*
* Thc delegation of i.rarco found itself ale to ac^e-t this
paragraDh onlv on thc,, o:lditiOix that it could not be applied to
Germany. a part of Geriinany or an Occupation Zone in Germany.
** Cbvi0)ously the rights and obligati ons of any such separate
customs territory which dl.d llet bouc!no a fu1l, Member as a result
of decision taken at the WorJd r lrd) Conferonce and which applies
under paragraph 3 of this Article for ar3riïsion to the Organisation,
will. have to be deterrniined by the Cenfercncr of the OrganIsation
when the aprlicaticii Is made, and th1? final draft of the Charter
must so provide.
*** In accepting the words ''shail be admitted to the Organisation
on such terms as may be deterinied;' tho Delegetion of South Africa
did not accept the phrase to mcan thbat J.escor rights in regard to
representation and voting might be given to those territories
than to other Members. The DoIleg.ttion of South Africa
considored that it was cuite un7'cahlistic to expect a territory to
accept aUl the obligations OI the Chayter while denying it certain
rights. E/PC/T/180
Page 139
(1) any separate custo:ns territory iniv:i.tEt`C. to the
United Nations Conferc-Lco on Trade n.nd Ermployr..ent
upon acceptance of the Chartcr on its belmi:lf by the
cormpetent 7ic-îber in accordance with pax,:caraph 2 of
Lrti.clc 99.
(ii) any sop,:ratc custo;;l territory not invited to the
United Netions CDnfferencü on Trade.s and Eitployrsent,
proposcd by the coîLmpctent M1c-!ber havin:. responsibility
for thhe for a.1 coi.du.t of its dip1o e.l;tic relations and
which is autonomious in the conduct of its external
covr:.'.ercial relations e.nd of the othcr mrtters provided
for by this Charter end whose admission is approved by
the ConferrncQ, upon acceptance of the Chartcr on its
beC:.-lf by tho colripetc:nt 1c-.: ber in accordance with
paraEraph 2 of Article- 99, or, in the case of a
tcrr: tory in respect of which the Charter has boen
acc:cpteLd under paraLgrnph 1 of Article 99, upon its
becoming thuw autono-tous.
4+. Any separate custov.;s territory ad:Litted to the Organization
under paragraph 3 of this Article which is accorded full voting
rights shall the-reupon bc a Morc.ber of tho Org.anization.
5. The Confercrce shr.11 doterr-ine the condJ.tions upon which
;ieibership rights and obli.gatiïois shall bc ext-eridc:d to Trust
Territories dnmnisterWd by the Unitc-d Nations L<md to thc Free
Territory of Trieste.'t
X' Sec sccond footnotc to paragraph ' of Article 68.
X< The Preparatory Conlrti.tteo considered e. s--.ggcstion tc> add to
Article 68 provisions regarding tJ.e effect oi' suspc.-Ision of, or
expulsion from, zc-.:bership in the Unitcd Nation1s upon -r-tbcrrship
in the Organisation. It was agreed that, in. view of the con-
plexity of thhe issues involved rnid the latc stej,-;e at which the
suggestion was rnadc, this question should be deLerre:d until the
World Trade Cc:<ererce by which ti-c -eovcrnicnnts would have be-n
able to study it fully. E/PC/T/180
Page 140
ARTICLE 69
. .~ . -...
Functions
The Organization shall perform tho functions provided for
elsewhere in this Charter. In addition the Organization shall
havo tho followingc functions:
(a) to collect, analyze and publish îniforiratian relating to
international trade, including information relating to corniorcial
policy, business pr'acticCs, cor.iOClity Trobleiiis and industrial and
gonoral ocononic development;
(b) ta ancouiiage aind fiecilitate consultation aaong Nombors
on all questions rclat`nLi to tila provisions of this Charter;
(c) ta undortalke studios on, .ako rcori-in^n.>tions for, rnd
pror.aotc international agrcericnt on, moasurcs designed
(i) to cas-urc just and equitable treat:-ont for
foreign nr.tionals and cntorprisos; !L.3-
(1i) to expand the volunm ancd to improve the bass of
international tradc, including -ocsuros dosiCnod
to f-;cilitate com.Lorcial arbitration and the avoidance
of doubflo taxation; and
(iii) aoncaally to achieve any of the objactivas set
forth in Articlc 1;
(d) Soncrally to consult wtlh mnd make racouiondzations and,
as nocassary, furnish ndvicc and assistance to Icubors rocnrding
any natter rclatinG to the o acprtion of this Charrtar, and to
ta'.e any other action nccossary and proper to carry out tho
provisions of this Chartor;
(a) to co-opcrata with the Unitad Nations and inter-
governLtcntal organizations in furthering th: achicvcent of tho
econariic and social objectives of thc Unitod l'ations arnd the
restoration and naintcwIance of international peacc and security.
^KX Thc coi-rrittoe agrocd that the delotion of the mention af
specific classes of such nationals and enterprises should rnot bo
takon as indication that theso classes arc not covcrci in tho
abovy broad langua.c. Thus such languao would covar troatmcnt
of, for cxa:aplo, cauiorcial travellers, and foreiCn creditors
in balikruptcy, insolvency or roorganisation. E/PC/T 180
Page 14
ARTICLE 27
Structure
The Organization shall have a Conference, an Executive Board,
a Tariff Committee, Commïssions as established under Article 79,
and such other organs as may be required. There shall also be
a Director-General and Staff. E/PC/T/180
Page 142
Section B - The Conference
ARTICLE 71
Composition
1. The Conference shall consist of aIl the Members of the
Organization.
2. Each Member shall have one representative in the Conference
and may appoint alternates and advisors to its representative.
3. No representative in the Conference may represent more
than one Member. E/PC/T/180
Page 143
Article .2
Voting
Alternative A
1. Each Member shall have one vote in the Confercnce.
2. Except as otherwise provided in this Charter, decisions of
the Conference shall be taken by a majority of the Members
present and voting.
1. Each Member shall have in the Conferance the number of
votes allocated to it in pursuance of the provisions of Annex
to this Charter.
2. Except as otherwise provided in this Charter, decisions of
the Conferonco sha.11 bc talcon by a simple ar.jajor'it. of the~ votes
cast.
Altcrnl.tivc C
1. Each icllucr shall havc onc vote in tho Conferenco.
2. Except ai otherwise provided in thls Charter, decisions of
the Conforeice shall bc tcakcn by a ;-.iajority of the MDmbors present
and voting; Provicled thz.t, at the instance of a.ny NIarnbar,
any decision rcachcd by the Organization on tha matters provided
for in Articles . shall rcqrlire corroboration by a second
vote t..1r.n by a siîir:le majority of th2 votes cast in accordance
wiith thc plan of wcai:hted votin- set out in A=ex... to this
Chl rter.
K Sec the proposals fnr waightod votin,; givon in .'ppendi,;.
3The articles to be nontionod would be deternined by the W!orld
Conferc-nce. E/PC/T/180
Page 144
Article 73
Sessions, Procedure, and Officers
1. The Conference shall meet in rogular annual sessions and
in such special sessions as raay bc convolkod by the Diroctor-Goncral
at thc request cf the Executivo Board, or of a majority of tho
i4cabcrs .
2. The Conference shall establish rules of procedure which may
incluce.o rulos appropriate for the carrying out of its functions
ulirïin', thic intervals botwcon its sessions. It shall annually
clcct its Prcsidcnt arirl other officers, E/PC/T/180
Pagô 145
Articlc 1
Poirors and Dutites
1. The powers ancd duties attributod to tho Or[,anizratioon by this
Charter and the final authority to dotcrninc the policies of tho
Organization shrllJ, 5ubjoct tc- tha provisions of .^.rticlo 81, bo
vested in the Conforernco.
2. The Conference m.ay assign to the Exocutlve Borard tho oxclrcisc
of any power or the porforrnncc c)f .any duty or thcu Organization,
oxccpt such specific powors and duties as arc cxprossly conforrod
or imposed upon tho Confcrqnce or the Tariff Co'imitteo by this
Charter.
3. In excoptional circumstances not clsewhoro providod for ln
this Charter, thc Confcrcnce may waive an obligation imposed upon a
Member by this Chartor; Prnvided that any such decision shall be
approved by a two-thirds majority of thc votcs cast and that such
majority shall ccmprisc moru than haif of the Mombors of tho
OrganizationM Tho Conforence may also by such a vote
(e.) dcfinc certain catch orics of cxcoptional cïrcuristancos to
which other voting roquireLlonts shall apply for the
waiver of obligations, ancd
(b) prescribe such criteria ,-s imay be nocessary for the
application of this paragraph.
XI. The Conference rnny prepare or sponsor agremconts with respect
,o any latter wiithin the scop3 of the Chartcr and, by a two-thirds
majority of the votes cast, recrcmmend such agrecments for acceptance.
Each 11criber shall, within a period spocifïiod by the C.Jnfortnce,
3< The Dclcgation of Chilo rcsor-ïed its position rewarding this
sentence insofar as it relates to Article 15. E/PC/T/180
Page 146
notify the Director-General of its acceptance or non-acceptance.
In the case of non-acceptance a statement of the reasons therefore
shall be forwarded with the notification.
5. The Conference may make recommendations to Members and to
inter-governmental organizations regarding any matter purtalning to
tho purpose and objectives set forth in Articlc 1.
6. The Conferonce shall arpvo the budget of thc Orgrnization
and shall apportion the cxpend3.iturcs of the Organization anong the
Mombers in accordance with a scalc of cvntributiciis to bc fiîxtd
from timc to ti:me by the Conforonce following such principles
as may bc applîod by thc United Xati:ons; Provided that no Meobçr
shall bc required ta contribute mure than one-third of tho tutal
of such ;xponditurcs wi.thsut its consent. c
7. Tho Conforenco shall detcrrinc thc scat of the Organization
and shall establish such branch offices as it mmuy consider
desirable.
m Tho Delegation of Canada rcsorved its position on the ,roviso. E/PC/T/18O
Page 147
SECTION C -- THE EXECUTIVE BOARD
ARTICIE 75
COMPOSITION OF THE EXECUTIVE BOARD
Alternative A
1. The Executive Board shall, subject to the provisions of
the other paragraphs of this Article, consist of Members of the
Organization as follows:
(a) Canada, China, France, India, Union of Soviet Socialist
Republics, United Kingdom, United States of Americ. and either
Belgium and tho Netherlands alterna.ting every throc years or
the Customs Union of Delgium, Luxembourg and the Notherlands
shoulld those States doci ro to be rcprcscnt'2d as a unit;x Mx
(b) Three Members elactcd by the Ainorican Republics not
entitled to a scat on thil Board undcr sub-paragraph (a);
(c) One Membcr to be eloctcd by cach of tlh following
groups of States if thfiir members dos ir to be rcprosonted as
a group:
(i) Egypt, Iraq, Lobanon, Saudi Arabia, Syria,
Transjordan and the Yemen;
(ii) Donmark, Finland, Iceland, Norway and
Sweden;
td) Five Mombers elected by the remaining Mombers;
Providcd that groups of not less than four States, having common
interests, and ropresonting a certain proportion of world trade
x If tho Customs Union of Bolgium, Luxcaboiurg and the Nctherlands
as such should not desire to appoint a ropr eilt,-tive on the
Board, Luxembourg would fali undcr paragraph 1(d) of this Article.
x0 The Preparatory Committec was not ablo to examine fully the
conception oi giving membership in the Board to customs unions,
This matter should bc considered more thoroughly by the World
Conference. E/PC/T/180
Page 148
may be formed with the approval of the Conference and any such
group shall be entitled to elect one or more Members to the
Board according to the number of States which comprise it and
the proportion of world trade they together represent.
2. The Conference shall make regulations relating to
paragraphs 1(b), (c) and (d) of this Article which shall provide
for the mode of election, the conditions under which groups under
paragraph 1(d) of this Article miay be formed, the method of
reallocating seats wlhere necessary, and other related matters.
3. The Members elected to the Executive Board shall normally
be elected for terms of three years. The Conference shall
establish rules with regard to these terms designed to ensure a
reasonable measure of continuity in representation on the Board.
4, During the time that any State mentioned. in paragraph 1(a)
of this Article is not a Member of the Organization, the size of
the Executive Board shall be reduced accordingly.
5. If at any time the number of States referred to in
paragraph 1(b) of this Article be seven or less, those States
shall be entitled to elect only one Member to the Executive
Board. Should at any time this number be more than seven but
less than fifteen, they shall be entitled to elect two Members to
the Board,
6. Should at any time the number of States referred to in
paragraph 1(d) of this Article be
(a) four or more but less than seven,
(b) seven or more but less than fifteen,
(c) fifteen or more but less than twenty-one,
(d) twenty-one or more but less than twenty-eight,
those States shall be entitled to elect one, two, three or four
Members to the Board respectively. E/PC/T/180
Page 149
7. The number of Members on the Executive Board may, upon a
recommendation of tho Board, be increased by the Conference by
a two-thirds majority of the votes cast.
8. Notwithstanding the provisions of Article 95, any amendment
of this Article relating to paragraph 1(a) or to the election
of Members to the Board under paragraph 1(b), (c) and (d) or
involving the rearrangement of groups established under para-
graph 1(c) or formed under paragraph 1(d), shall become effective
upon its approval by the Conference by a majority of the votes
cast,
9, The provisions of this Article shall be subject to review
by the Conference every three years.
Alternative B
1. Tho Executive Board shall consist of the representatives
of not more than fifteen of the Membors of the Organization,
elected by the Conference by the affirmative vote of two-thirds
of those present and voting. Seven of the Members may be
immediately re-electod on the expiration of the term for which
thay have been elected,
2. The number of Members on tho Executive Board may, upon a
recommendation of tho Dozard, bc lncroajscd by the Conferonce by
a two-thirds majority of the MoI-abers present and voting.
3. The Members elected to the Executive Board shall normally
be elected for terms of threo years The Conforcnce shall
establish rules with regard to these terms designed to ensure a
reasonable measure of continuity in representation.on the Board. E/PC/T/180
Page 150
Alternative C
1. Subject to the provisions of paragraph 6 of this Article,
the Executive Board shall consist of seventeen Members of the
Organization.
2. The eight states of chief economic importance, as deter-
mined by the Conference at intervals of three years by a two-
thirds majority of Members present and voting, shall be entitled
to membership of the Board,
3. The other Members shall be elected to the Board by a two-
thirds vote of the Conference.
4. Subject to paragraph 5 one-third of the Members referred to
in paragraph 3 shall be elected each year for a term of three
years. A retiring Member shall be eligible for immediate
re-election,
5. At the first election
(a) Canada, China, France, India, United Kingdom,
United States, Union of Soviet Socialist Republics and the
Customs Union of Belgium, Luxembourg and the Netherlands,
should these states desire to be represented as a unit, shall
be appointed under paragraph 2;
(b) Nine other Members shall be elected, of which the
terms of office of three shall expire at the and of one year
and of threat other Members at the end of two years.
6. (a) During the time that any State mentioned in paragraph
2 of this Article is not a Member of the Organization the size
of the Board shall be reduced accordingly.
y See the second note to paragraph 1 of Alternative A. E/PC/T/180
Page 151
(b) During any time that the number of Members of the
Organization is less than twenty-eight the numbers six, two
and two shall be substïtuted for the numbers nine, three and
three respectively in paragraph 5(b) of this Article.
7. The Conference shall make regulations which shall apply
the provisions of paragraph 5(b) at any time when the number of
Members on the Board is varied under paragraph 6(b) of this
Artlcle. E/PC/T/180.
page 152.
ARTICLE 76
Voting
1. Each member of the Executive Board shall have one
vote.
2. Decisions of the Executive Board shall be made by
a majority of the votes cast. E/PC/T/180
page 153
ARTICLE 77
Sessions, Procedure and Officers
1. The Executive Board shall adopt its own rules of
procedure, including rules concerning the convening of
its sessions. The rules of procedure shall be subject
to confirmation by the Conference.
2. Tho Executive Board shall annually elect its
Chairman and other officers, who shall be eligible for
re-election.
3. The Chairman of the Executive Board shall be
entitled ex officio to participate, without the right
to vote, in the deliberations of the Conference.
4. Any Member of the Organization which is not on the
Executive Board, shall be invited to participate in the
discussion by the Board of any matter of particular and
substantial concern to that Member, and shall, for the
purpose of such discussion, have all the rights of Members
on tho Board, except the right to vote. E/PC/T/180
page 154
ARTICLE 78
Powers and Dutis.
1. The Executive Board shall be responsible for the
execution of the policies of the Organization and shall
exercise tho powers and pertorrm the duties assigned to
it by tho Conforence. It shall supervise the activities
of the Coimnissions and shall cake such action uipon thoir
recommendations as it rmay <cern appropriate. It shall
prepare t'no provisional c~.vnda of the Conference.
2. Tho Executive Board may miake recommendations to
the Confei ence, or to inter- governmentall organizations,
on any subject within the scopc of thiz Charter. E/PC/T/180
page 155.
SECTION D - THE COMMISSIONS
ARTICLE 79
Establishment and Functions
Tho Conference shall establish such Commissions
as may bc required for t-ie performance of' the
functionss of the Organization in accordance with the
provisions of this Charter. Tho Coumissions shall
havc such functions as the Conference inay docide.
Commissions shall report to the Exccutive Board and
shall perform such tasks as the Board may assign to
thom. Tho Commissions shall consult cach other as
necessary for the exercise of their functions. E/PC/T/180
page 156.
Article 80
Composition and Procedure
1. Except as otherwise decided by the Conference,
Coi-missions shall be composed of persons chosen by the
Executive Board. The persons so chosen shall be qualified
bi- training or experience to carry out the functions of the
Commissions.
2. The number of members, which shall not exceed seven,
of each Commisclon and the condition of their service shall
be determined lin ccord.ance with reCulations prescribed by
the Conference.
3. Each Commission shnl.h elect its Chairmnn, nnd shall
aCdopt rules of procedure which shall be subject to approval
by the Executive Board.
4., The rulos of Procedure of the Conference and of the
Executive Board shall provide as appropriate for the
participatlon in their deliberatIons, without the right to
vote, of the chairmen of Conmissions.
,. The Organizatlon shall arrange for representatives of
intergovernmental organizations considered by the Organization
to hve a special competence ln the field of activity of any
of the Commissions, to participate in the viork of such
Commissions. E/PC/T/180
page 157.
Section E - The Tariff Committee
Article 81
The Tariff Committee
1. There shall ba a Tariff Conrittee which shall act on
behalf of the Organi.zation initiztting the negotiations
provided for under paragraph 1 of Article 17 and in the
making of recommendations and detorninations pursuant to
paragraph 2 of Article 17.
2. The Tariff Cormitteu shall corsist of those contracting
parties to the General Agrecrnent on Tariffs and Trade
referred to in paragraph 1(d) of Articlc 17 which arc
Members of the OrCaniization.
x cxx
3. ZProvisions rolatin- to the voting power of each merabey7
1+. provisions relating to the majority of votes required
for decisions of tho Cormittee/
5. The CoLmmittec shal1 adopt its own rules of procedure,
including provision for the election of its officers.
x
The cortnt of these paragraphs is referred for decision
by the Ur.ited NIations Conference on Trade and Employnent.
xx
The Delegation of Brazil resorvod its position on this
paragraph. It could not agroe to a discriminatory
voting power in a.. comnittec charge with the functions
referred to in thc preceding sentence, because the result
of such a procedure would eventually place tho control
of the Tariff Coemneutce iin the hands of a f ow nenbers
of this Coinmittc. Furthermore, the Delceation of
Brazil objected te the implication that the Proparatory
Cormittee was ir.plicitly accepting, by its action, the
possibility of weightcd voting in the decisions of the
Tariff Co-mîittoc of the future International Trade
Organization. E/PC/T/18O
Section F - The Director-General Fnd Stnff
Article 82
Tho Director-Gencral
1. The chief aldminintrative officer of the Orgn.nizatlon
shall be the Director-General. He shall be appointed by
the Conference upon the recommend.ation of the Exccutive Board.
The powers, duties, conditions cnnd term of' office of the
Dlirector-Genera]. shaltl conform *w) retplations approved by
the Conference. He shrtlL be subject te the general
supervision of the Executivo Bonrd.
2. The Director-General or his representeitivo shnll be
entitled to participate, without the right te vote, in nll
meetings of the various organs of the Organization.
3. The Director-Geneia.l shp.h1 present te the Conferenco
an n.nnunl report on the work of the Organiza.tion e.nd the
annual budget estimates end the financial statements of the
Organization. E/PC/TC/180.
page 159.
Article 83
The Staff
1. The Director-General shall have authority to appoint
Deputy Directors-General in accordance with regulations
approved by the Conferenco. The Director-General shall
also appoint such further members of the Staff as may be
required and shall fix the duties and conditions of service
of the Staff, in accordance with regulations approved by
the Conference.
2. The paramount consideration in the selection of the
Staff and iri the determination of ite conditions of service
shall be the necessity of securing the highest standards of
efficiency, competence and integrity, due regard being paid
to the importance of recruitment on as wide a geographical
basis as possible.
'. The conditions of service, such as the provisions
governing qualifications, salary, tenure and retirement of
members of the Staff shall be fixed, so far as practicable,
In conformity with those for members of the Secretarit of the
United Nations and of other specialised agencies. Section G - Other Organizational Provisions
Article 84
Relations with other Organizations.
1. The Organization shall be brought into relationship with
the United Nations as soon as practicable as one of the specialised
agencies referred to in Article 57 of the Charter of the United
Nations. This relationship shall be effected by agreement to
be approved by the Conference Any such agreement shall provide
for effective co-operation and the avoidance of unnecessary
duplication in the activities of the, respective organizations.
2. The Organization shall make arrangements with other inter-
governmental organizations which have related responsibilities,
to provide for effective co-operation and the avoidance of
unncessary duplication in the activities of the organizations.
The Organization may for this purpose arrange for joint
committees, reciprocal representation at meetings and establish
such other working relationships as may bc necessary.
3 The Organization may make suitable arrangements for con-
sultatizn and co-operation with non-governmental organizations
concerned with matters within the scope of this Charter.
4. Whenover the Conference and. the competent authorities of
any other inter-governmental organization whose purposes and
functions lie within the scope of this Charter, deem it
desirable
(a) to incorporate such other inter-governmental
organization into the Organization, or
(b) to effect a transfer cf all or a part only of its
functions and resources to the Organization, or
(c) to bring it under the supervision or authority of
the Organization, E/PC/ T/ 180
page 161.
the Director-General, subject to the approval of the Conference,
may enter into an appropriate agreement. Members shall, in
conformity with their international obligations, take the action
necessary to rive effect to any such agreement. E/PC/T/180
page 162.
Article 85
International Responsibilities of the Director-
General, Staff and Members of Commissions
1. The responsibilities of the Director-General and of the
Staff shall be exclusively international in character. In the
discharge of their duties they shall not seek or receive
instructions from any government, or from any authority external
to the Organizotion. They shall refrain from any action which
might prejudice their position as international officials.
2. The provisions of paragraph 1 of this Article shall also
apply to members of the Commissions provided for in Section D
of this Chapter.
3. The Members shall respect the international character of
the reponsibilities of those persons and shall not seek to
influence them in the discharge of their duties. E/PC/T/180
page 163.
Article 86
International Legal Status of the Organization.
The Organizatior shall have lega1 personality and shall
enjoy such legal capacity as may be necessary for the exorcise of
its functions. E/PC/T/ 180
Article 87.
Status of the Organization in the Territory of Members.
1. The Organization shall enjoy in the territory of each of
its Members such legal capacity, privileges and immunities as
may be necessary for the exercise of its functions.
2 Representatives of the Members of the Organization and its
officials shall similarly enjoy such privileges arnd immunities
as may be necessary for the independent exorcise of their
functions in connection with the Organization.
3. Such legal capacity, privileges and immunities shall be
more particularly defined in an agreement to be prepared in
consultation with the Secretary-General of the United Nations and
concluded between the Members and the Organization. page 165.
Article 88
Contributions.
Each Member shall contribute promptly to the Organization
its share of the expenditures of the Organization as apportioned
by the Conference. A Member which is in arrears in the
payment of its financial contributions to the Organization shall
have no vote in the organs of the Organization if the amount of
its arrears equals or exceeds the amount of the contributions
due from it for the preceding two full years. The Conference
may, nevertheless, permit such a Member to vote, if it is
satisfied that the failure to pay is due to conditions beyond
the control of the Member. page 166 .
CHAPTER VIII
SETTLEMENT OF DIFFERENCES - INTRPRETATION
Article 89
Consultation between Members
If any Member should consider that any benefit accruing to
it directly or indirectly under this Charter is being nullified
or impaired, or that the attainment of any of the objectives
set forth in Article 1 is being impeded, as a result of'
(a) the failure of another Member to carry out its
obligations under this Charter, or
(b) the application by another Member of any measure,
whether or not it conflicts with the provisions of
this Charter, or
(c) the existence of any other situation,
the Member riay, with a view to the satisfactory adjustment of the
matter, make written representations or proposals to the other
Member or Members which it considers to be concerned. Any
Member thus approached shall give sympathetic consideration to
the representations or proposals made to it. In any such case,
the Members concerned shall keep the Director-General informed
generally of any discussions undertaken.
* The Preparatory Committee points out that a limited time
.as been devoted to the study of the means of providing for
interpretation of the Charter and for the settlement of differ-
onces among Members and between Members and the Organization.
Therefore the Preparatory Committee recommends that this
subject should receive carly and full re-examination by the
World Trade Conference and the drafts contained in this Report
have been prepared on the assumption that this course will be
followed. E/PC/ T/ 18
page 167.
Article 90
Reference to the Organisation
1. If the matter is not satisfactorily adjusted within a
reasonable time or if it falls thin Article 89,(c), it may
be referred to the Executive Board or, with the approval of
the Executive Board, directly to the Conference. The Exe-
cutive, Board or the Conference, as the case may be shall
promptly investigate any matter so referred and shall make
recommendations ,o the Members which it considers to be
concerned or give a ruling on the matter, as appropriate.
It may in the course of such investigation consult with
Members, the Commissions of the Organization, the Economic
and Social Council of the United Nations and any inter-govern-
mental organization, in cases where it considers such con-
sultation necessary.
2. The Executive Board may refer the matter, with the
consent of the Members concerned, to arbitration upon such
terris as may be agreed 'between the Board and such Members.*
3. Any ruling of the Executive Board shall be reviewed by
the Conference at the request of any interested Member. Upon
such request the Conference shall by resolution confirm or
modify or reverse such ruling.
4. If the Conference considers that the circumstances
are serious enough to justify such action, it may authorize
a Member or Members to suspend the application to any other
Member or Members of such obligations or concessions under
or pursuant to this Chapter as the Conference determines to
* The Delegation of the United Kingdom. reserved its position
on this paragraph. E/PC/ T/180
page 168.
be appropriate. If the application to any Member of any
obligation or concession is in fact suspended, that Member
shall then be free, not later than sixty days after such
action is take, to advise the Director-General in writing
of its intention to withdraw from the Organization and such
withdrawal shall take effect upon the expiration of sixty
days from the day on which written notice of such withdrawal
is received by the Director-General. E/PC/'T/180
pare 169.
Article 91
Reference to the International Court of Justice
1. The Conference or the Executive Board 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
Organisation.
2. Any resolution of the Conference under paragraph 3 of
Article 90 or decision oif the Conference under any other
Article of this Charter shall be subject to review by the
International Court of Justice through the means of a request
by the Organisation for an advisory opinion pursuant to the
Statute of the Information..l Court of Justice. The request
for review of such resolution or decision shall be made by
the Organisation, in approriate form, upon the instance of
any substantially interested Member:
3. The request for an advisory opinion shall be accompanied
by a statement, to be furnished by the Organisation in consul-
tation with the Me:mbers substantially interested, of the. facts
underlying the question upon which the opinion of the Court is
requested. Tho Organisation shall supply to the Court such
further information as the Court may :require.
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
* The Delegation of Australia reserved its position on this
paragraph. page 170.
view of the Conference damage difficult to repair would
otherwise be caused to a. Member concerned.
5. The opinion of the International Court of Justice upon
'the questions referred to it shall be binding upon the
Organization. The resolution or decision in question shall
be modified insofar as it does not accord with the opinion
of the International Court of Justice. E/ P C/ T/ 180
page 171.
Article 92.
Miscellaneous Provisions
1. For the purposes of the interpretation of this Charter
under the provisions of this Chapter, the English and French
texts shall be authoritative.
2. Nothing in this Chapter shall be construed to exclude
other procedures provided for in this Charter for consultation
and settlement of differences arising out of its operation.
3. The Members undertake that they will not have recourse
to any procedure other than the procedural envisaged in this
Charter for complaints and the settlement of difficulties
arising out of its operation, nor, without prejudice to any
other international agreement to unilateral sanctions of any
kind on the ground that there has been a violation of an
obligation of this Charter, in aclvance of a complaint to the
Organization and a final decision of the Organization establishing
such violation. *
4. The Conference .nd the Executive Board shall establish
such rules of procedure as may be necessary to carry out the
provisions of this Chapter. The rules of the Conference shall
include provisions concerning the maintenance in force or
suspension of any rulings of the Executive Board pending
review by tho Conference under paragraph 3 of Article 90.
*The Delegation of the Netherlands reserved its position on
this paragraph. E/PC/T/180
page 172 CHAPTER IX GENERAL PROVISIONS
[ Releations with Non-Members ]
[ 1. Nothing in this Charter shall preclude any Meanbor froui con-
oluding or maintaininJ c;Qsoro iil troo tic or uiainta lning eoonoini¢
relations vwi tli non-L.'.erb-ors.
provided tnart nr) lvnbur hall jiuok prijforontiîl export or iprnp't
duties or taxas or oxolus:vo .JdvntroCo- din Dts trado with any non-
Membeor.
2, If a subs':-:- -l par:1;t w, _S y ;,arabor's for ign trude is with
non-ivlenbaDrs, such bo tor "1îa' l bo .i.i:ljd ta suLspond tho application
of any of tf a prtviiLna ot I:his Chi:rt;
provided tthot thoi- cccur on c or thrja tans to cEausa a
sarlous injury t: : - lL: t ' con§dV..c intcrosts.
3. Any Lrck-bjur ohbc.à -f'( thu, Qr(:izhtio and dir,'ctly af-
f6ctÙltd vb n cdoqueto . ouo rt:.. y, t consult vwith it in rospcct
of its LCteL fl Lnd u:' th! bcst vil.ich wauli onoblo the DlàrmbDr con-
cernd ta saXf.iu rd ..ts int _ ithout pr-jjudicing the gonçrel
purpasas and Sbj.-cCivU s;r t; n Chart.r end tho ].agitiminta intor.,sts
of thW ,-bovû-r.r.iun .cd Lr.c.b.r:..
* Tho Prù p'rctary CoiS±i:iittçc :rrrnits thusa trnro texts ts thG Wiiarld
Cox2fc3rancJ, without cxprossirng ut thivs svËc arny judénont cDncirnlng
thWs r.rits af' ano prjpJs.l <aS eiL5cinst cinithar, iii ordur to assist ths
World 'oanfurtncu in d;trmînine, z1, tho liàht of eal rztlovnnt clrcuri-
stencos, tha toxt ti bo incarpDa:i-:3ld ir; tho Chertcor gavcrni re-
le tions -with non-M- ' -
Soma quçistlon v;as raiscd'as tu thu s;intus of c lvl-nbijr of tho Unitud
Nations if it should feil -o becoiam a Lt:mbor of tho Orgrnizotiln .end ta
tho status of a country nrt olîiib1o for m7ioibarship in the Organizction.
Tho Sub-cownrittco suggests thxt tha WaDrld Conforonce rmoy wish, to sock
expE3rt ozinicn es ti whothzr, unid*ir theso circutustancos, any of tho
drefts wzuld ba in c c'nrSlict with tho eb i rationss of M!cabJuers ;;f tho
Uni ted N;: t ions .
In tnis c.rinec Lion tho Propnretory Comnmnittou cails tho attentionn of
tao Wrorld ConfE.renco ta ths duf4i'a ;-liLn of' a "r an-Me-mber" in paragraph '7
of vcorsi.n "3" and ta tho wards althoughh quelifi3d to do so" in
peregreph 3.af vursiin "C" which Vj-uld oxoludo from the SccpE of îll or
seme if thet provisions of the Artic]a N-an-M.'iber countries vwhioh woro
not qualified fir L;cinbarship. Th2 Warld Conforcnco msy wish to consider
whether tiiese particuler passbEs shiDuld bo rctcined or delotod in tho
light ;)f thc ru.Slutiîn rSr-r-in5 -in -which the Gencrcl Assemrb1y
edoptud en 12 Decùmbor, '94C. E/PC/T/180
page 173
If no adjustment can be effected, the Member concerned may with-
drew from the Organization at any time by written nottice addressed to
the Director General either on its own behalf or on behalf of a terri-
tory which is at the time self-governing in respect of matters pro-
vided for by this Charter, giving reasons therefor. This withdrawal
shall become effecitve on the date such notice is received. The
Director General shall immediately notify all other Members. ] E/PC/T/180
page 174
[VERSION "B" ]
[ Relations with Non-Members]
L 1. sh Mlmbnr sll sevz omclusive or prof ,rnr:tîa1 a idv0ntaCos fa
its trvdu aitli criy ny n i. mbur.
2. Ally l.lr&lxvr viishiri tD .Liritain Dr ,nt1r int: a conimurcil1
agr>ci.;nt with a n n- mbwr which oxtcnrks or wsuld extend tD tho n0n-
Momber any cif trw bur.of'iis v! Cheptimr roi'f this Clhertur vr any :f ttlG
toriff' rcjducti:Dns uf'fctiod by the MlQlebccr czrcrnod in pursuance a;f
Artica La 'thU Chn-utr shall sek; thu approval or tho O~.gcnizetion
for such a cour.. '_!9Vid thêt nJ ?., :ibDr shall b, required to
t4r=inmts r.y such uY3tin. y a '.nt until It hos r;ccivOd w7rittcr.
ootificotivn f .ror. tho zr~coizct1orl _f its d2jion ir rcsp.ct Dr thct
agrasc mnt ir uùoùrançc *;.th thu prùcc;.uruu 1ei J dcwn in this
.rtic le .
3. In; ùojcidrng wiathsr it shauhd b-rent apurDvv.l in ruspact if
the qustJ.c ztn tD in pir-,,rprLh (2) of this L-rticlu, the
Grganizat- ùr, sh&2Le. h r.ve r-ogrd t, the follzvwing c:nsi er-t1Qns:
(c) wvhethûr n-sz tho ,craemenat conüuIno; 6foj 'Jr vwould sub-
stentially injuru :,hu intùrsus ;f ,thc:r IÀ- ù:r5;
(b) vihether Jr il;!t thC tormjint-.ti r, & I exiztinC, a;recincnt
~f thi.s nature vi;uld sucstantially injure tho interests ^f
the iiieoiber concerned;
(c) vwhEtht-r or nft tha expansion of inttrrnntd. nal trnie and
the prozotior, of the purposes wf the O:enl.zot1:n ns laid
this v2rter v;ould 'bt 9CIversoly Gffscted ïf tho
agreern W.' k werécint ioad .r put ir.t : cifec § .
4. A Member may apply to the Organization at any time for ap-
proval of any agreement which it proposes to conclude with non-n-
Member and to which the provisons of paragraph 2 of this Article apply,
but, in the case of any such agreeent which exists at the date on
which thïs Charter comes into force for that Member, application for
approval under the provisions of paragraph 2 of this Article shall be
mde with a period of one year from that date. E/PC/T/18O
page 175
5, Within 60 daiys of its receipt of written notification of a
decisions by the Organization disapproving any agreement: to which the
provisions of paragraph 2 of this Article apply, a Member either shall
inform the Organization of its acceptance of the decision, in which
case the Member shall take steps to terminate any such existing agree-
ment and shaIl not extend or continue to extend to the non-Member the
benefits to Members dervigin from the negotiations completed in accord-
ance with Article 17 of this Charter, or, if it is unwilling to accept
the decision of the Organization , may give notice in wirting to the
Director General of its withdrawal from the Organization, such with-
drawal to become effective 60 days after such notice is given.
6. Nothing in this Article shall be interpreted as over-riding
any of the economic provisions int eh treatise of peace between the
Allied and Associated Powes the states which were their enemies
during the Second World War.
7.. For the purposes of this Article, the term non-Members "shall
mean a country which, although qualitifed to became a Member. has not
become a Member or has withdrawn from the Organization.] E/PC/T/180
page 176
[ VERSION "C" ]
[ Centreetual relations with non-Members;
Treatment of the Trde of non-Members ]
[ 1. No Member shall seek preferential advantages from any non-
Member so as to result, directly or indirectly, in the application
by such non-Member to any Member of measures which, if applied by a
lviember, would be incensistent with the provisions of this Charter.
2. No Member shall be a party to any agreement or other arrange-
ment with any non-Member under which such non-Member is or would be
cintractu?,lly entitle' t. eny .,f the benefits prvided t- Me.mbers by
virtue _f Chapter IV: prcvided tha.t, vitth respect tS eny such exist-
in- agreement, th. OrgenizaFti.n shili r;lfse cny en ,3mber from th. pror-
visions of this prare.;:h if it finds thnt the o-ffoct if t rainntiDn
of the agre;inrînt vwould be im-re '.,trirrmntt.1 tD th; interests of
Members es a whlc then its cntinuÉtion.
3. ND Loibr shell, except with tha c7,ncurrsnce Jf the Orgeniza-
tion, extern tu tho trade ,;f iny cther country, which, :Ithough
quehlified to di sD' hes nrt beczImai a L:.rmbr )r hos wiithdrnwn from the
Organization £ny of the rocductikns in tarifs uffoctcd by such Mombor
pursuant tD Lrticla 17, or axtoerd ti such country cny reduction in e
prefürantiel tz-riff reto, even thugh suoh roduction would bE por-
n;ittud undir th;e terms of Articlus 1C açnd 17.
4. The provisions of paragraphs 2 and 3 of this Article shall
become effective for any open on the expiration of one year from
the day er. which this, Charter enters into force with respect to such
Member: provied that, this period may be extended by the Organiza.-
ttion in respect of the relations of any Member with any non-Member,
for such further periods as the Orgarnization may prescribe. At any
time beforethe expiration of any such period, a Member may request
the Organiation in writing for such an extension, in which event the
period will be considered to be extend.until a.reply is received
from the Organization. If the Organizatlon disappproves the extension
requested, the Member shall than be free, not later than sixty days E/PC/T/180
page 177
frsmn thu dey w which r;tieo .t such uiscrpplovrl is roiulvod by the
M ber, tt withdrt:w ,re r the Organization effective upon the expirr.-
tion vf sixty days tfrsm tho deLte on w'lich wri tten notice of suoh wlth-
drawel is received Dy the Orgenizotion.
5. At the earliest possible date after any provision of this
Cbarter becomes effective, ±-.nibers shall terminete, either by agrea-
ment ir in accordance with thoir terns, Eny iLrt.Lrnationcl obligations
they meay heva with non-Memrbers whioh would prevent them from giving
full affùct tw such provision.
6. Nat1ing in this Article shall bc intErprotod es requir1n.!
the withdrewal if any iiomber frcra mamborship i.n other intor-
governmntr.l irgenizati .ns _f thü type dcscrib;ad in Article 57 of the
Ciharter ,f the United )etins Jr es- :;vr-riding eny of the aconmic
provDisiOns in tho traetias oI' peaca batwe6n tho i1llied and Awsiciated
Powers end tho stets which worU, thoir unimiGs during thu S.?cond
Wvr1d ier. . E/PC/T/180
page 178
Lirticle 94
General Exce-,Ipi.ons
Nothing irL this Chartcer shall bc construed
(a) to require any Mcribùr to furnish a nir ration.
the disclosure of which it considers contrary to
its essc-ntial sccuri.ty interests, or
(b) to prcve't any HIc.mncr froi:i taking any action which
it considers necessary for the protection of its
essential security intorc-sts
(i) relating; to fissionable materials
or thc- :-aterials from which they are
derived;
(ii) relatinij to th(e! traffic in arms, a-,unmition
and i.mpl;.lemnts of war and to such traffic
in other goods and r:iaterials as is carried
on directly or indirectly for the purpose of
supplying a military establishment;
(iii) talcen in time of war or other emergency in
international relations; or
(c) to prevent any M.crrber fro::; takinr.- any action in
pursuance of its obligations under the United
Nations Charter for the z.iaintenance of international
peace and security. E/PC/T/180
pace 179
ArstIc:le 9S
1. Any ea}encblcntt to tis Charter which ices not :Lnvolvc a
chanr;e in thc sbliCatïie;is assux:cd by Y'crî,bpï's b:(a1i bec,:.c
ef±fctive upz:l rccivi.ng thc approval QI tho Cenforericc by the
affirc'tivc votcs cf two-thirds cf thç 1'`L8c5ers.
2. iU!y a Z.nd;t t this Chtirter which LelvOlv.-S C. chz.CCe
In tnc s assu.c,<l by i4cnibers shall, sfte:r receiing
the approve.l cft th. CoefVerencc, b;co,. effect:Lvc f -r oach
MeTibcr thccept.nS the ze:-,ieznt, upor, acceptarc, on the part of
tweo-t'^iz^'rs ^`f tîihe !c:;,bcrs ctid therccfter for ca.ch rennininng
P. 'iber -in acccptencc ,y it . The C0:-ifrenGec '.'-' at any tiiae
detc5rL'rLc- tllat c:_-y uenl.r. - sn uncic' tli. -c.ra-:rc.ph is o': such
a nature t'.:t =J. .c.bcrs iilch ';vt net z:cc>ptcd it within a
perio d so cified by the Cez:fecncc Sh;12Ybc! rcoquired te with-
draw frc;. thc Or2anizati.on; Providcd that thn Ccr.forencc- :.iy,
by thc affiri:iaive vot-s oS twc-thïirds cf c. : ~-ers presc-nt and
.voting, det1:, !inç thc- conditions under which ti:.is roquirem.ent shall
be waived with, respect tc an-y such MHeber. L M:--:ber not accepting
an e:icdnent sha1l bD fre, to wiit.,draw fro.. tlic OrZanization upon
the ex-piraetJ.on of six t.ortc frda the dy on .friich written notice
cf such withdrawal îrs rccEivcd bi, t!ie Dircctor General.
3. TiherC: afcronc~ shal1, by tl.e affir::.i,.tivc v-^tcs eO' two-thirds
of t?lo O czLc.rs, lo;pt rul os cf pïcccd;rl for carrying cut the
provisions of this Lrticle. E/PC/T/180
page 180
ArticIe 96
Review of tnc Charter.
The Conference shll convene a special session for the
purpose of reviewing the provisions of this Charter before the
end of tihe tenth year after its entry into force. E/PC/T/180
page 181
Article 97
Withdrawal and Termination
1. Without prejudi^c to the provisions cf paragraph 2 of
Article 17, paragraph 4 of Alrticle 90, or pa.rauraph 2 of Article 955
any Mri:ber may withdrawn fromr. thc Organization either on its own
behalf or on behalf Of a separate customs territory on behe.If of
whlch it has accepted this Chartcr in accordance with the
provisions of Article 99 at any tiie after the expLratiton of three
years from t'c day of the entry into force of this Charter, by
written notice addressed to the Director-General. The Director-
General shali iiL'mediately notify all othor Me.bers.
2. A -withdrawal under para&rarh i of this Article shael take
effect upon thc expiration of six moC:ths frou the day on which
written notice of such withdrawal is received by the Director-
Goneral.
3. T'fais Charter À,.y be tert-inatcd at any tio by -.aroera.nt of
tliree-fourth.s of the Members. E/PC/T/180
page 182
Entry into Force and Registration
1. The Government of each Staete accepting this Charter shall
deposit an instrument of acceptance with the Secretary-General
of the United Natiolns, who will inform all governaments 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 acccpte.nce and of the da; on which
this Charter enters into force.
2. This Charter shall onter into force Onl the sixtictth day
followin.-e tJ!c day on which the nui;bEr cf ',overn.Icnts riprescntcd
at tho United Natiwrz Coni'crencc on Tr-de and El.-ploy:.ient which
havc deposited instruncnts of acceottince pirsup..-t to parar:rc,.ph 2
of this Lrticle s'.:ll re.^c twcnt:-, and th2 ir:strun.-rt of acceptance
of each othc-r P.cceptin,; overnlc-.nt shall tnlkc efffcct on the
sixtieth day fclloCwiin:- thc dc:y on which it is dcpositcd;
Provided thnt, if this Chartcr sha fl not htcv cntcred into force
by 19Li , any ;fI thc governments ap)plying the General
Acrecrent on Tariffs and Tradc datd ............. 194 , tc;cter
with ary othcr ;ocvErnncnts repr.scn1tcd at thtc IJnitcl Nations
Conference on Triade and E;.p1oy.ent, r:ay, upo editionss to bc
agreed bctwcon thc::i, bLrins- tLis Ch.arter intc force. Any
instru-.cnt cf acceptcncc dpcpsitcd vïith! thc Sccrctarjy-General of
the Unitcd Nations shal. t.e ta.kc. as c-veriz, bcth nroccdurcs for
briiuging this Chartcr ntc force-. unless i.t exprcssly provides to
thc contrary or is withdr-an bflore t ert;,ry i:'to force of this
Charter.
3. The United Nations is authorisedd to effect registration
of this Charter as soon as it co.:es into force. - ~~~E/PC/T/180
page 183.
ALRTICLE _9
Territorial ADplication
2.. ,Jech Goverrmont acceptiivn this Ch,'.rter docs so in respcotl
rif its metropolitan territory and of thb other torritorics for
*\ich it has intorriatiornal rlspozrsbi1 it:v:_mvidod that it may
a't tho tinc of accontanco doclJare th'.?t any separate custcLis
teoi.tory f.r which it h-i.s international responsibility
i;Ssosz:5 full aut.iaor.^y in tho conduct of its extcrnri.l coei.norcial
roLC.t4.onz and of tho other r.atters provided for by this Cliarter,
an(. th.t t acceptance docs not rclatc to such territory.
^. 23LXC- Mermber -lay, at any tir.ic, accept this Charter in
tcor.7,.nco wîth para:.iralh 1 of Articlo 98 on behalf of any
scp.rate customs tor.-itory rxoferr.d to in tho proviso of pnra-
:,!ra.h 1 of this Articl-o', which is willing to unclartako the
o'.lir.tions of this Clhir7rter.
3. ;.,ch l*iczobor shali telkoc such rc.2sonr.ble mcasurcs as :nay be
-.vai.lblc to it to nssurc observance of the provisions of this
Ch:,rtur by thc regional and local governments and authorities
withinn its territory. E/PC/T/180
ARTICLE 100
Deposit of Texts
The original texts of this Charter in the official
languages 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. E/PC/T/180
page 185.
Donc at __ _this __ day of______
One Thousand Nine Hundred Forty 7,/ î/T/ 1C)
,D 8 .e 186 .
1. TIu_ fJoe:;;, r'O.: L'or <WÙcrmin, thn inwlnbdr of
votcs to be <;lec:r. (c;d tD evch Ncziber vore proposed, och by
erio d':lcatio.n.
onu~~~~~~~~~~XinJr
(a) 1 vote 'Jr Ivo'y IC) million o.
(1:) 1 .vo',. f'or w.-;ry 50 mi.i:kn T;.S. doll:l-:s
.'1cv. f= ov{.DIr 1;.C ].~l .S. dollars of
('-i) 2. vote. 1.* L 'or ' , -' )i tr t5_rtl3.x,
cztcrx.:]. f- 1 n.tiu,.. :, o'nl.c.
( e) 1 00 bI îtC v rt trS 2s
rd12lliunac)Jr
(a) J. voto L'o )v- ;ir"~ '> riJj.ior~ UJ.. 'oclJalzs
( b)i Vote L'x' ' ,(<; ion O . v, . .,ur:.re, of
(c') 1 vto' r cvc~r:v 2, UL-S. doll.rn *I L'ercig
trnd. pc-r eepi.n«
(d) 10 bezic votCes.
-k. ertrie cf '.ho `.nitiL.-1 cller'aPtion Cf votes,
tng|- fCeWL`a;'VT (;9j 7 (C) ar 1 (1) jr. Fer]Hru;la .4 nd (a), (b) nrd
(c? ir oon ut« u o.rJi bc:tie 11LtV'd er Ls exeray,' ef thc
1;t S.V'1I'!C pi'c-wfi vr Ce 1m 1diL! L' or9E;_«S Sr v s lu whicl the Mienber r' in
a2 position t; Ct)J.irt ncr.aJ. ù-.rade d a tnù full calendar year
precoci.iUn the entIy ir-teo forc-e of the Char!-kr. The saccea-cdinr
calculations of ti-hes f2CtOt-S zo bc- -aJ at the ti.me of the
periodic rc'riew provided for ir: p'-ra&raph of rricle 75
(usir. kltornati.c i; cf that ,A,.-;;ic1;o) shall be based on Lhc E/PC/T/180
page 187.
average of the three immediately preceding calendar years.
3. The delegations who proposed the formulae set out
above submitted the following tables showing the results of
their application. The statistical material used in those
tables was the best available to those delegation at the
Second Session. More accurate material will be supplied
to the World Conference by the Statistical services of the
United Nations. E/PC/T/180
page 188.
Table A (using Formula A)
(l1
in:
Argent ina
Albania
Australia
Austria
Belgium &
Colonies
Bolivia
Brazil
Bulgaria
Burma
Canada
Ceylon
Chile
China
Colombia
Costa Rica
Czechoslovakia
Cube.
Denmark
Dominican Rep.
E cuador
Egypt
Ethiopia
Finland
Population External
(latest
information
available)
Millions
14
1
7
7
19
4
45
7
18
12
6
5
455
10
1
14
5
4
2
3
17
. 6
4
Trade
n193s7
Million e
1,239
10
1,090
501
1,748
65
677
124
276
1, 824
205
283
535
182
23
800
315
730
30
27
393
n. a.
National % of trade Total
Irîcome
1940
ualon e
2,800
n.a.
3, 200
n.a.
2,350
I6O
2,500
805
n.a,
5,800
375
400
12,000
700
50
3,000
420
1,511
n. a.
130
1. 4oo
n.a,
559
Votes aS
to National Vote5 percentage
Inconie of' total.
1 isted. ,
44
74
41
27
15
31
55
71
4
26
46
27
75
48
21
28
136
103 '
132
1161,
149
105
126
107
114"
152
112
115
181
109
105
126
115
123
103
116
102iE
72
1.7
1.3
1.6
1,4
1.a
1.3
1.5
1.3
1.4
1.9
1.4
1.4
2.2
1.3
1.3
1,5
1.4
1.5
1.3
1~.3
1.4
1.2
1.4
-X Notlonal figure
n.a. Not available
/ Corresponding percentage on "one-State one-vote" system is 1,5 E/PC/T/180
page 189.
.opulation
(l: C S t
i':È r;sRtion
av-ailabl c
i:ilLioris
_xtc;rnal Hational
Tradic I ncoi..
1937 194+0
i-1i1i on 4 i illi on
/# of trado
to inatioi1al
nlaormc
._
,'c tal Votes as
Votes po:rciltage
ot' total
1L Ust odj
Colonies
Gr~xo:
-Gu.s«teiaalaw
h; i ti
1ondLura as
iRLuia r y
Ic ela.nd
Indla beforee
narti Cioli)
Iran
Iraq
I tÙly
L obaion-
~jyïia
Libcria
Luxe;: .,urg%
1c .xic o
I.Tothci1 adlds &A
Colonjics
1Uew ' caland
I:icara-ua
INorwiay
Panara
Paraguay
Peru
x llotio za1 figure
n.a Not available
/ Corres.;ondn.i ;,, Dcrccntage
on ",Onle-LStato oile-voto" system is 1.5.
P.T.0.
106
8
3
i
9
0,1
4'19
10
4
Ls6
1
1
0.3
22
80
2
1
7
1
7
2,3,06
221+
37
18
20
315
1 . a
1,369
193
75
1, 259
64
7
n. a
1+23
2,281+
+o 2
13
523
26
17
151
il$ ,30C
1,000
160
130
50
n. a
9,S00
n. a
n. a
+, 800
n. a.
n. a
n. a
3,5400
500
5()
750
'+0
'+O
'+50
20
22
23
14
40
27
30
65
80
26
70
65
43
34+
182
109
103
101
104
110
101
189
108,
103
144
101
119
103
110,
103I
119
108
10c
108
2.2
1.3
1.3
1.2
1.3
1.3
1.2
2.1
1.3
1.3
1.8
1.3
1.2
1.3
1.4
2.0
1.5
1.3
1,5
1.3
1.3
1.3 2/PC/T/130.
page 190.
Population External National
(latest Trade Income
information 1937 1940
Philippine s
Poland
Portugal &
Colonies
Roumania
Salvador
Saudi, Arabia
Siam
S .Rhodesia
Sweden
Switzerland
Transjordan
Turkey
Union of
S .Africa
U.K. &
Colonies
Uruguay
U.S.A.
U.S.S.R.
Venezuela
Yemen
Yugoslavia
available)
Millions
17
24
19
16
2
4
16
1.8
7
4
0.5
19
11
Million $ Million
260 n. a.
463 4, 000
187
378
26
n.a.
126-
67
1,050
706
8
202
61+
106 8,115
2
142
193
4
3
16
100
6,379
817
332
n. a.
263
n. a.
n.a.
30
n.a.
n.a.
150
2,900
2,400
n.a.
n.a.
1,000
26,400
340
77,800
32,000
120
n.a.
1,500
of trade Total
to NationalVotes
Income
_
12
120
120
- 112x
- 1141
33 104
45 106
36 132
29 122
- 100~<
_ 1l2x
68 124
31 329
29
8
3
28
18
lo6
399
199
110
100X
112
Votes as
percentage
of total
_ listed X
1.3
1.5
1.4
J1.4
1.3
1.2
1.3
1.3
1.6
1.5
1.2
1.4
1.5
4.0
1.3
4.9
2.4
1.3
1.2
1.4
x Notional f igure
n.a. Not available
,4 Corresponding percentage on "one-State one-vote" system is 1.5. E/PC/T/180.
page 191
Table-3 (u sirna t B)
For. Iula Colwin (1)
Colwin ( 2 )
Colun'' ( )
1 vota p)r ",O iilliou; dollars.
1 "oto »-r 500 million dollars.
1 voto p._r 25 dollars traie por capita.
10 votl;s as bD.s1c vol;o.
ForcimC
Tr:tde
(xv. ,193a 1V7'tcs as
_n3. lcatost Nailti o.nal Tracla prc ntagc
12 months incoxx.1 po' Basic Totnl of t-Dtal
Country avai able) l91+0 Capita Voto Votcs asted
Aruentina
Albania
Australia
Austria
;3 si um a nd
Colonios
3o. livia
B3razil
3ul«garia
.Burm'.
Canada
Ceylon
Chi.lo
China
Colo .ibia
Coste. ?Rca
Czec'-oslova&:Xia
Cuba
.Denoark
Dor:inican
Republic
2.cu1ador
26
nr. a.
2S
5
37
n. a.
23
n.a.
6
59
5'
22
6
11
il
7.
17
1
1
"1t
îr. a.
5
x
5
2.
n.a.
12
1
. 1
24
1
K.
o
1
3
n. a.
R
7
2
4~
1
1
1c
2
2
"I
1
1
2
3
I
10
10
10
10
10
10
10
10
10
10
10
1d
10
10
10
10
10
10
10
10
4.6 2.6
IF9 2.8
56
39
91
18
56
18
12
29
21
38
12
3 .1
2.2
5.1
2 .0
1.0
1.0
0.7
1.6
1.2
2.1
().7 .. ,.. l
page 192.
Column (1) (2) 3 (4) (5) (6)
Foreign
Trade
(À..V. 1 9 38 Votes as
anc;. latest lNational Trade
1l months IJnCo&e per Basic Total total
Country. available) 1940 Capita Vote Votes Listed.
Egypt 9 3 1 10 23 1.3
EtioDia n.,a.
Finland n.C.
France and
Colonies
Greace
Guatemala
Haiti
Honduras
Hungary
Iceland
India (before
partition)
Iran
Iraq-
Italy
Lebanon and
Syria
Liberia
Luxembourg
Mexico
Nsetherlîànds
and Colonies
*Iew Zelaand
Nicaragua
Norway
Paraguay
Peru
Philippines
78
3
1
1
n. a.
i. *a.
n. a.
27
n. a.
n. a.
n1. a.
1
n.a.
n.a.
12
54
10
12
n. a.
n. a.
4
n.a.
n.a,
1
23
2
*
*
*
n. a.
n. a.
24
n.a.
n. a.
10
n. a.
n.a.
3
7
1
*
2
*
*
1
n. a.
1
1
1
10
10
10
10
10
10
10
112
16
12
il
6.3
0.9
0.7
0.6
10
10
4.
1
1
1
10
i.
a
1
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
61
26
72
31
10
32
16
1.5
4.0
1,7
0.6
1.8
0.9 E/PC/T/180
. page 193,
Column: -( 1) ( 2 - (3 -?r ` V L )
Foreign
Trade
(Av., 1938
and latest National'frade
12 months Income per Basic
available) 1940 Capita Votes
Poland n.a. 8 - 10
Portugal and
Colonies
Rumania
Salvador, El
Saudi Arabia
Siam
So. Rhodesia
Sweden
Switzerland
Trans j ordan
Turkey
Union of, South
Africa
United Kingdom
and Colonies
Uruguay
United States
U.S.S,R.
Venezuela
Yemen
Yugoslavia
7
r.a.
1
n.a.
n.a,
2
26
23
n.a.
14
213
5
209
n. a.
10
n.a.
n.a.
n.a,
n. a.
n.a,
n.a.
3 *. -
6
5
n.a.
n. a.
2
53
1
156
64
x
n.a.
3
1 10
10
1 10
- 10
- 10
2 10
8 10
il 10
M. 30
- 10
3 10
4 10
5 10
3 10
10
5 10
- 10
- 10
Total
Votes
12
29
280
21
, 378
25
Votes as
Percen-
tago of
Total listed
0.7
0.8
2.8
2.27
15.7
1,2
21.2
1.4
n.a. - means not available; m - means less than 25 million dollars;
M - means less than 250 million dollars; m - neans less than
12 1/2 dollars per capita
SOURCE:
Column (1) Figures taken from U.N., "Monthly Bulletin of Statistics;3
April and Juno 1947; League of Nationa, "Review of World Tradc,
1938" and "Network of World Trade, 1942".
Column (2) Figures taken from U.N. Document E/PC/T/143, Addendum 1,
5 August 194+7.
Column (3) Figures based upon population data shown in U.N.
Document W3/PC/T/143, Addendum 1, 5 August 1947, except Lebanon
and Syria. Figures for Lebanon and Syria based upon population
data shown in "The Worl Almanac", 1947, page 493.
v / \ |
GATT Library | ny018zz3073 | Report of the Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Adopted by the Preparatory Committee 22August I947 | September 10, 1947 | 10/09/1947 | official documents | E/PC/T/186 and E/PC/T/180-186 | https://exhibits.stanford.edu/gatt/catalog/ny018zz3073 | ny018zz3073_92290240.xml | GATT_151 | 46,700 | 302,102 | E/PC/T/186
10 September 1947
United Nations Publications
Sales Number: 1947. 11. 4. TABLE OF CONTENTS
Page
Part 1. - INTRODUCTION ............ ...... ....... . ... . 5
Part Il. - I. THE DRAFT CHARTER . . . . . . . . . . . . . . . . . . . . . . . . 7
2. ANNEXES A, B, C, D, E AND F TO THE DRAFT CHARTER. 59
3. APPENDIX.. . ... . ............ 65
Part III. - ENCLOSURES:
Enclosure I. - Extracts from the Interim Report of the Second Session of the
Preparatory Committee to the Fifth Session of the Economic and Social
Council .69
Enclosure 2. - Resolutions adopted at the Fifth Session of the Economic
and Social Council relating to the Interim Report of the Second Session
of the Preparatory Committee. 7I
Enclosure 3. - List of Sub-Committees at the Second Session ... . . . . 73
Enclosure 4. - Comparative Lists of Provisions in the Drafts of the Charter
prepared by the Second Session and by the New York Drafting Committee 74 -5 -
REPORT' OF THE SECOND SESSION OF THE
PREPARATORY COMMITTEE OF THE UNITED NATIONS
CONFERENCE ON TRADE AND EMPLOYMENT
(adopted by the Preparatory Committee 22August I947)
Part I. - INTRODUCTION
I. ESTABLISHMENT OF THE PREPARATORY
COMMITTEE
The Economic and Social Council at its
First Session resolved on 18 February I946 to
call an International Conference on Trade and
Employment for the purpose of promoting
the expansion of production, exchange and
consumption of goods. At the same time the
Council constituted a Preparatory Committee
to elaborate for the Conference an annotated
draft agenda, including a draft convention,
taking into account suggestions which might
be submitted by the Council itself or by any
member of the United Nations.
The Council also charged the Preparatory
Committee with presenting recommendations
regarding the date and place of the Conference
on Trade and Employment and which States,
if any, non-members of the United Nations,
should be invited to the Conference.
2. STAGES IN THE WORK OF THE PREPARATORY
COMMITTEE
The First Session of the Preparatory Com-
mittee was held in London from 15 October to
26 November I946. In the course of this
Session, a draft Charter for an International
Trade Organization was prepared and embodied
in a report which was distributed as document
E/PC/T/33 and published.
The First Session appointed a Drafting Com-
mittee to meet as soon as possible after the
First Session for the purpose of editing the
draft Charter produced in London. The Draft-
ing Committee met in New York from 20
January to 25 February I947 and recorded the
results of its work in a report which was
distributed as document E/PC/T/34 and later
published.
The Second Session of the Preparatory Com-
mittee was convened at the European Office
of the United Nations in Geneva on 10 April
I947. During the course of this Session, the
Preparatory Committee transmitted to the
Fifth Session of the Economic and Social
Council an interim report indicating the pro-
posed outlines of the annotated draft agenda
and convention which were being prepared for
the full Conference and presenting recommend-
ations concerning the date and place of the
Conference and the non-members of the United
Nations which might be invited to the Con-
ference. The relevant sections of this interim
report are reproduced in Enclosure I to the
present Report. The resolutions adopted by
the Economic and Social Council relating to
the recommendations in the interim report are
reproduced in Enclosure 2. In accordance
with those resolutions, the United Nations
Conference on Trade and Employment is to be
converted on 2I November I947 at Havana,
Cuba.
The Second Session of the Preparatory Com-
mittee continued the preparation of the draft
Charter or convention. The draft adopted by
the Preparatory Committee at the Second
Session as a basis for discussion at the World
Conference appears as Part II of the present
Report. Although the Preparatory Committee
has reached a large measure of agreement on
the text to be recommended to the full Con-
ference, it will be noted that the text is accom-
panied by a number of notes indicating the
reservations which have been made and the
interpretations of the text which are thought
necessary in order to make the exact intention
clear. Some of these latter notes enabled reser-
vations to be withdrawn.
In view of the fact that changes have been
made in the text of the draft Charter as it has
progressed through the Preparatory Committee,
and particularly in view of the fact that the
order of the articles has been rearranged, the
present report contains as Enclosure 4 tables
setting forth in parallel columns the identifying
numbers of comparable provisions in the
versions of the draft Charter issued by the
New York Drafting Committee and by the
Second Session of the Preparatory Committee
in order to facilitate a determination of the
relationship between the present text and the
earlier version.
In its present Report, the Preparatory Com-
mittee has refrained from enunciating in detail
the principles underlying the draft Charter.
It was felt by the Preparatory Committee
that the observations presented in Part II of
the Report of the First Session represented a
general statement of the guiding principles
which have been followed and developed in the
work of the First Session, the Drafting Com-
mittee and the Second Session. Although the
Report of the Second Session will constitute
the agenda and basic "working paper" at the -6 -
World Conference, the two earlier reports will
he regarded as essential parts of the annotation
thereto. It has seemed unnecessary to restate
in the two later reports the principles set forth in
the Report of the First Session or to indicate
at length the alterations which were made
during the Drafting Committee stage or during
the Second Session, in order to take account of
new considerations and to reconcile conflicting
points of view.
Considering that the objectives underlying
the endeavour to set up the I.T.O. would be
promoted if concrete action. were taken by the
Members of the Preparatory Committee (which
account for approximately 70% of world trade)
to enter into reciprocal negotiations directed
to the substantial reduction of tariffs and other
barriers to trade and to the elimination of
preferences on a mutually advantageous basis,
the governments represented on the Preparatory
Committee adopted a resolution at the First
Session regarding the carrying-out of such
negotiations under its sponsorship in connec-
tion with, and as a part of, the Second Session.
The governments represented at the Second
Session of the Preparatory Committee are, at
the time of the issuance of this report, in the
final stages of the negotiations foreseen in the
above-mentioned resolution. It is expected
that the concessions resulting from these
negotiations, together with such other provi-
sions as may be appropriate, will shortly be
incorporated in a General Agreement on Tariffs
and Trade. 1
3. PARTICIPANTS IN THE WORK OF THE
PREPARATORY COMMITTEE
All members of the Preparatory Committee 2,
with the exception of the Union of Soviet
Socialist Republics, took part in the work of
the First and Second Sessions and of the Draft-
ing Committee. The Union of Soviet Socialist
Republics indicated that it did not feel able
to participate in the work of the Preparatory
Committee as it had not found it possible to
devote sufficient preliminary study to the
important questions which were the subject of
the Committee's discussion.
Two specialized agencies 3 and two other
inter-governmental organizations were actively
1 In view of the existence of a Customs Union between
Syria and Lebanon, a Syrian delegation has taken part
in the tariff negotiations and has been regarded as a
contracting party in the General Agreement on Tariffs
and Trade.
2 The members are:
Australia, Belgium-Luxemburg Economic Union,
Brazil, Canada, Chile, China, Cuba, Czechoslovakia,
France, India, Lebanon, Netherlands, New Zealand,
Norway, Union of South Africa, Union of Soviet
Socialist Republics, United Kingdom, United States
of America.
3 The Food and Agriculture Organization and the
International Labour Organization.
4 The International Bank for Reconstruction and
Development and the International Monetary Fund.
associated with all the proceedings and many
members of the United Nations non-members
of the Preparatory Committee 5 and some
non-governmental organizations in Category
"A" 6 sent observers who from time to time
gave the Committee the benefit of their views.
4. ELECTED OFFICERS OF THE SECOND
SESSION
Chairman .
Vice-Chairmen:
First Vice-
Chairman.
Second Vice-
Chairman.
H.E. M. SUETENS (Belgium).
H.E. Erik COLBAN (Norway).
Sir Raghavan PILLAI (India).
H.E. Dr. Zdenek AUGENTIHALER
(Czechoslovakia).
Mr. Sergio I. CLARK (Cuba).
Hon. L. D. WILGRESS (Canada).
Commission A: 7
Chairman .
Vice-Chairmen
Commission B: 7
H.E. SUETENS (Belgium).
H.E.M. Erik COLBAN
(Norway).
H.E. Antonio DE VILHENA
FERREIRA BRAGA (Brazil).
Chairman. . . Hon. L D. WILGRESS
(Canada).
Vice-Chairman M. J. ROYER (France).
6 Colombia, Denmark, Mexico, Peru, Poland and Syria
sent observers to the First Session; Colombia and Mexico
to the Drafting Committee, and the following countries
to the Second Session, in addition to those represented
at the First Session:
Afghanistan, Argentina, Ecuador, Egypt, Greece,
Iran, Saudi-Arabia, Siam, Sweden, Turkey, Uruguay,
Venezuela, Yugoslavia.
* The organizations were:
American Federation of Labor, International Cham-
ber of Commerce, International Co-operative Alli-
ance, World Federation of Trade Unions. The inter-
national Federation of Agricultural Producers also
submitted its views on certain points to the Second
Session of the Preparatory Committee. The Inter-
national Federation of Christian Trade Unions and
the Interparliamentary Union were also invited to
be represented.
7 In order to facilitate simultaneous discussion, the
Preparatory Committee at the Second Session was
divided into two commissions, each of which consisted of
representatives of all Delegations. Commission A, and
its sub-committees, prepared texts for consideration by
the Preparatory Committee relating to the chapters on
Employment and Economic Activity, Economic Develop-
ment and General Commercial Policy (with the exception
of the Articles relating to Subsidies). Similarly, Com-
mission B prepared draft texts relating to the chapters
on Purposes, Organization, Restrictive Business Practices
and Inter-governmental Commodity Agreements, as
well as the Articles on Subsidies. Each Commission
established sub-committees for the further study of
individual Articles or groups of Articles (see Enclosure 3).
All drafts were reviewed at the final plenary meetings of
the Preparatory Committee. -7-
Part II.
THE DRAFT CHARTER .
INDEX
CHAPTER 1. - PURPOSE, AND OBJECTIVES:
Article I ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......
CHAPTER Il. - EMPLOYMENT AND ECONOMIC ACTIVITY:
Article 2. Importance of Employment, Production and Demand in Relation to the Purpose of this
Charter .
Article 3. Maintenance of Domestic Employment .....................
Article 4. Fair Labour Standards..... ......................
Article 5. Removal of Maladjustments within the Balance of Payments ............
Article 6. Exchange of Information and Consultation ..................
Article 7. Safeguards for Members subject to External Deflationary Pressure .........
CHAPTER III. - ECONOMIC DEVELOPMENT:
Article 8. Importance of Economic Development in Relation to the Purpose of this Charter . . .
Article 9.
Article 1o.
Article 1 I.
Article 1 2.
Article 13.
Article 14.
Article 15.
Development of Domestic Resources and Productivity ......
Co-operation for Economic Development.... .........
Means of promoting Economic Development ...........
International Investment for Economic Development .......
Governmental Assistance to Economic Development.
Transitional Measures.
Preferential Arrangements for Economic Development.......
CHAPTER IV. - COMMERCIAL POLICY:
Section A. Tariffs, Preference, and Internal Taxation and Regulation:
Article I6. General Most-favoured-nation Treatment ...........
Article 17. Reduction of Tariffs and Elimination of Preferences.
Article 18. National Treatment on Internal Taxation and Regulation . . .
Article I9. Special Provisions relating to Cinematograph Films ......
Section B. Quantitative Restrictions and Exchange Controls:
Article 20. General Elimination of Quantitative Restrictions.
Article 21. Restrictions to safeguard the Balance of Payments.
Article 22. Non-discriminatory Administration of Quantitative Restrictions
Article 23. Exceptions to the Rule of Non-discrimination ........
Article 24. Exchange Arrangements ..................
Section C. Subsidies:
Article 25. Subsidies in General ...................
Article 26. Additional Provisions on Export Subsidies .........
Article 27. Special Treatment of Primary Commodities . . . . . . . .
Article 28. Undertaking regarding Stimulation of Exports .
Article 29. Procedure ...... ................
Section D. State Trading:
Article 30. Non-discriminatory Treatment
Article 31. Expansion of Trade.
Section E. General Commercial Provisions:
Article 32. Freedom of Transit . ............ ....
Article 33. Anti-dumping and Countervailing Duties ..........
Article 34. Valuation for Customs Purposes .............
Article 35. Formalities connected with Importation and Exportation
Article 36. Marks of Origin .....................
Article 37. Publication and Administration of Trade Regulations ....
Article 38. Information, Statistics and Trade Terminology .. .....
Article 39. Boycotts .......................
Section F. Special Provisions:
Article 40. Emergency Action on Imports of Particular Products ....
Article 4I. Consultation ......................
Article 42. Territorial Application of Chapter IV - Frontier Traffic - Customs Unions .
Article 43. General Exceptions to Chapter IV .......................
CHAPTER V. - RESTRICTIVE BUSINESS PRACTICES:
Article 44. General Policy towards Restrictive Business Practices ..............
Article 45. Procedure with respect to Investigations and Consultations ...........
Article 46. Studies relating to Restrictive Business Practices ................
Article 47. Obligations of Members.
Article 48. Supplementary Enforcement Arrangements ...................
Article 49. Domestic Measures against Restrictive Business Practices ..........
Article 50. Procedure with respect to Services .......................
Article 51. Exceptions to the Provisions of this Chapter ..................
Page
10
10
I o
10
10
Il
12
I2
1 2
12
I3
14
15
I6
17
17
i8
19
20
2I
22
24
25
26
27
27
27
28
28
. . . . . . . . . 28
30
30
31
32
33
33
34
35
35
36
36
36
38
38
39
40
40
40
40
4'i
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . . . . .
. . . . . . . . . . .
. . . . . . . . . . .
. . . . . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . .
. . . . . . - 8 -
CHAPTER VI. - INTER.-GOVERNMENTAL COMMODITY AGREEMENTS: Page
Section A. Introductory Considerations:
Article 52. Difficulties relating to Primary Commodities .42
Article 53. Primary and Related Commodities . . . 42
Article 54. Objectives of Inter-governmental Commodity Agreements .42
Section B. Inter-governmental Commodity Agreements in General:
Article 55. Commodity Studies . 43
Article 56. Commodity Conferences .43
Article 57. General Principles governing Inter-governmental Commodity Agreements .43
Article 58. Types of Agreements . 43
Section C. Inter-governmental Commodity Control Agreements:
Article 59. Circumstances governing the Use of Commodity Control Agreements .44
Article 60. Additional Principles governing Commodity Control Agreements .44
Article 6I. Administration of Commodity Control Agreements. . . . 45
Article 62. Initial Term, Review and Renewal of Commodity Control Agreements ..45
Article 63. Settlement of Disputes . 45
Section D. Miscellaneous Provisions:
Article 64. Relations with Inter-governmental Organizations . 46
Article 65. Obligations of Members regarding Existing and Proposed Commodity Agreements . . 46
Article 66. Territorial Application . 46
Article 67. Exceptions to Provisions relating to Inter-governmental Commodity Agreements . . 46
CHAPTER VII. - THE INTERNATIONAL TRADE ORGANIZATION:
Section A. Structure and Functions:
Article 68. Membership. 47
-Article 69. Functions .47
Article 70. Structure .48
Section B. The Conference:
Article 71. Composition .48
Article 72. Voting .48
Article 73. Sessions, Procedure and Officers .48
Article 74. Powers and Duties .48
Section C. The Executive Board:
Article 75 Composition of the Executive Board .49
Article 76. Voting .50
Article 77. Sessions, Procedure and Officers .50
Article 78. Powers and Duties .51
Section D. The Commissions:
Article 79. Establishment and Functions. 51
Article 80. Composition and Procedure. 51
Section E. The Tariff Committee:
Article 81. The Tariff Committee .51
Section F. The Director-General and Staff:
Article 82. The Director-General 51
Article 83. The Staff. 51
Section G. Other Organizational Provisions:
Article 84. Relations with Other Organizations .52
Article 85. International Responsibilities of the Director-General, Staff and Members of Commissions 52
Article 86. International Legal Status of the Organization. . 52
Article 87. Status of the Organization in the Territory of Members .52
Article 88. Contributions. . 52
CHAPTER VIII. - SETTLEMENT OF DIFFERENCES - INTERPRETATION:
Article 89. Consultation between Members. . .53
Article 90. Reference to the Organization ..53
Article 91. Reference to the International Court of Justice. . 53
Article 92. Miscellaneous Provisions .54
CHAPTER IX. -- GENERAL PROVISIONS:
Article 93. Relations with Non-Members .55
Article 94. General Exceptions. . 56
Article 95. Amendments . 57
Article 96. Review of the Charter .57
Article 97. Withdrawal and Termination. 57
Article 98. Entry into Force and Registration .57
Article 99. Territorial Application. . 57
Article I00. Deposit of Texts 58
Annexes pertaining to Paragraph 2 of Article 16:
Annex A. . . . . . . .. 59
Annex B .... .... 60
Annex C.. . . . 61
Annex D . .. .. . . . .. . . 62
Annex E. . . ... .. . . 63
Annex F. . . . . . . . . 64
Appendix. - 9 -
CHAPTER I
PURPOSE AND OBJECTIVES
Article 1.
RECOGNIZING the determination of the United
Nations to promote peaceful and friendly
relations among nations,
THE STATES parties to this Charter undertake
in the fields of trade and employment to co-
operate with one another and with the United
Nations
For the Purpose of
REALIZING the aims set forth in the Charter
of the United Nations, particularly the attain-
ment of the higher standards of living, full
employment and conditions of economic and
social progress and development, envisaged in
Article 55 (a) of that Charter.
TO THIS END they pledge themselves, indivi-
dually and collectively, to promote national and
international action designed to attain the fol-
lowing objectives:
1. To assure a large and steadily growing
volume of real income and effective demand, to
increase the production, consumption and
exchange of goods, and thus to contribute to a
balanced and expanding world economy.
2. To foster and assist industrial and general
economic development, particularly of those
countries which are still in the early stages of
industrial development, and to encourage the
international flow of capital for productive
investment.
3. To further the enjoyment by all countries,
on equal terms, of access to the markets, pro-
ducts and productive facilities, which are needed
for their economic prosperity and development.
4. To reduce tariffs and other barriers to
trade and to eliminate discriminatory treatment
in international commerce.
5. To enable countries, by increasing the
opportunities for their trade and economic
development on a mutually advantageous basis,
to abstain from measures which would disrupt
world commerce, reduce productive employ-
ment or retard economic progress.
6. To facilitate through the promotion of
mutual understanding, consultation and co-
operation the solution of problems relating to
international trade in the fields of employment,
economic development, commercial policy, busi-
ness practices and commodity policy.
ACCORDINGLY they hereby establish the
INTERNATIONAL TRADE ORGANIZA-
TION through which they shall co-operate as
Members to achieve the purpose and the
objectives set forth in this Article. - 10 --
CHAPTER Il
EMPLOYMENT AND ECONOMIC ACTIVITY
Article 2. Article 4.
Importance of Employment, Production and
Demand in relation to the Purpose of this Charter.
1. The Members recognize that the 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 produc-
tion and effective demand for goods and ser-
vices is not of domestic concern alone, but is
also a necessary condition for the realization
of the general purpose and the objectives set
forth in Article I of this Charter, including the
expansion of international trade, and thus for
the well-being of all other countries.
2. The Members recognize that, while the
avoidance of unemployment or under-employ-
ment must depend primarily on domestic
measures, such measures should be supple-
mented by concerted action under the spon-
sorship of the.Economic and Social Council of
the United Nations in collaboration with the
appropriate inter-governmental organizations,
each of these bodies acting within its respective
sphere and consistently with the terms and
purposes of its basic instrument.
3. The Members recognize that the regular
exchange of information and views among
Members is indispensable for successful co-
operation in the field of employment and
economic activity and should be facilitated by
the Organization.
Article 3.
Maintenance of Domestic Employment.
I. Each Member shall take action designed
to achieve and maintain full and productive
employment and large and steadily growing
demand within its own territory through
measures appropriate to its political, economic
and social institutions.
2. Measures to sustain employment, pro-
duction and demand shall be consistent with
the other objectives and provisions of this
Charter. Members shall seek to avoid measures
which would have the effect of creating balance-
of-payments difficulties for other countries.
Fair Labour Standards.
Each Member, recognizing that all countries
have a common interest in the achievement and
maintenance of fair labour standards related
to productivity, shall take whatever action
may be appropriate and feasible to eliminate
sub-standard conditions of labour in production
for export and generally throughout its terri-
tory. Members which are also members of the
International Labour Organization shall co-
operate with that organization in giving effect
to this undertaking.
Article 5.
Removal of Maladjustments within the Balance
of Payments.
1. In the event that a persistent maladjust-
ment within a Member's balance of payments
is a major factor in a situation in which other
Members are involved in balance-of-payments
difficulties which handicap them in carrying
out the provisions of Article 3 without resort
to trade restrictions, the Member shall make its
full contribution, while appropriate action
shall be taken by the other Members concerned,
towards correcting the situation.
2. Action in accordance with this Article
shall be taken with due regard to the desira-
bility of employing methods which expand
rather than contract international trade.
Article 6.
Exchange of Information and Consultation.
1. The Members and the Organization shall
participate in arrangements made or sponsored
by the Economic and Social Council of the
United Nations, including arrangements with
appropriate inter-governmental organizations:
(a) for the systematic collection, analysis
and exchange of information on domestic
employment problems, trends and poli-
cies, including as far as possible infor-
mation relating to national income,
demand and the balance of payments. - II -
(b) for consultation with a view to concerted
action on the part of governments and
inter-governmental organizations in the
field of employment policies.
2. The Organization shall, if it considers that
the urgency of the situation so requires, initiate
consultations among Members with a view to
their taking appropriate measures against the
international spread of a decline in employ-
ment, production or demand.
Article 7.
Safeguards for Members Subject to External
Deflationary Pressure.
The Organization shall have regard, in the
exercise of its functions under other provisions
of this Charter, to the need of Members to take
action within the provisions of this Charter
to safeguard their economies against defla-
tionary pressure in the event of a serious or
abrupt decline in the effective demand of other
countries. - I2 --
CHAPTER III
ECONOMIC DEVELOPMENT
Article 8.
Importance of Economic Development
in Relation to the Purpose of this Charter.
The Members recognize that all countries
have a common interest in the productive use
of the world's human and material resources,
and that the industrial and general economic
development of all countries, and particularly
of those in which resources are as yet relatively
undeveloped, 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.
Article 9.
Development of Domestic Resources
and Productivity.
Members shall within their respective terri-
tories take action designed progressively to
develop, and where necessary to reconstruct,
industrial and other economic resources and to
raise standards of productivity through meas-
ures consistent with the other provisions of this
Charter.
Article 10.
Co-operation for Economic Development.
1. Members shall co-operate with oneanother,
with the Economic and Social Council of the
United Nations, with the Organization and
with other appropriate inter-governmental
organizations in promoting industrial and
general economic development.
2. Subject to any arrangements entered into
between the Organization and the Economic
and Social Council and appropriate inter-
governmental organizations, the Organization
shall, within its powers and resources, furnish
any Member which so requests with appropriate
advice concerning its plans and the financing
and the carrying-out of its programmes for
cconomic development, or shall assist it to
procure such advice. Such advice or assistance
shall be furnished upon terms to be agreed
and in such collaboration with other appropriate
inter-governmental organizations as will use
fully the special competence of each of them.
The Organization shall, upon the same condi-
tions, likewise aid Members in procuring
appropriate technical assistance.
Article 11.
Means of promoting Economic Development.
1. Progressive industrial and general eco-
nomic development requires among other things
adequate supplies of capital funds, materials,
modern equipment and technology, and tech-
nical and managerial skills. Accordingly,
no Member shall impose unreasonable or
unjustifiable impediments that would prevent
other Members from obtaining on equitable
terms any such facilities for their economic
development, and the Members shall co-operate
in accordance with Article 10, in providing or
arranging for the provision of such facilities,
within the limits of their power.
2. In order to stimulate and assure the
provision and exchange of facilities for industrial
and general economic development, no Member
shall take unreasonable or unjustifiable action
within its territories injurious to the rights
or interests of nationals of other Members in
the enterprise, skills, capital, arts or technology
which they have supplied.
3. The Organization may make recommen-
dations for and promote international agree-
ment on measures designed to assure just and
equitable treatment for the enterprise, skills,
capital, arts and technology brought from one
Member country to another, including the
elaboration and adoption of a general agreement
or statement of principles as to the conduct,
practices and treatment of foreign investment.
4. The term "nationals" as used in Articles
1I and I2 comprises natural and legal persons.
Chapter III.
Wherever the term "industrial and general economic
used in this Chapter, it is intended also to include "reconstriction".
development" or the term economic development" is - I3 --
Article 12.
International Investment for Economic
Development
1. The Members recognize that, with ap-
propriate safeguards, including measures ade-
quate to ensure that foreign investment is not
used as a basis for interference in the internal
affairs or national policies of Members, inter-
national investment, both public and private,
can be of great value in promoting economic
development and consequent social progress.
They recognize that such development would
be facilitated if Members were to afford, for
international investments acceptable to them,
reasonable opportunities upon equitable terms
to the nationals of other Members and security
for existing and future investments. Accord-
ingly they agree to provide, consistent with
the limitations-'recognized as necessary in this
Article, the widest opportunities for investment
and the greatest security for existing and
future investments.
2. Subject to restrictions imposed in accord-
ance with the Articles of Agreement of the
International Monetary Fund or with a special
exchange agreement entered into between the
Member and the Organization underparagraph 6
of Article 24 of this Charter,
(a) with respect to existing investments or
to future investments after they have
been made, no Member shall impose,
directly or indirectly, requirements on
the investments of nationals of other
Members which are appreciably more
onerous than those which the Member
imposes in similar circumstances upon
its own nationals or upon the nationals
of third countries. Nevertheless the
following shall not be deemed to be in
conflict with this obligations:
(i) requirements in force at the time
of making the investment or at the
time that the Charter shall, have
come into force with respect to the
Member, whichever is later;
(ii) requirements in force at the time
of any substantial addition to the
investment or change in the nature
of the business based upon the
investment, in respect of such
addition or such change;
(iii) reasonable measures to ensure par-
ticipation under (iv) below, by the
nationals of the Member in the
future expansion of any branch of
industry within its territories
through increased investment; Pro-
vided that, if the nationals of other
Members whose interests are ma-
terially affected believe that the
measure taken is inconsistent with
the provisions of this paragraph,
the Member taking the measure
will provide adequate opportunity
for consultation with a view to
reaching a satisfactory settlement
with the affected nationals;
Article 12.
The Delegation of Czechoslovakia reserved its position.
The Delegation of New Zealand entered a formal reser-
vation pending further consideration.
The Delegation of Norway deferred for the time being
its decision on the ground that it had not bad sufficient
time to study this Article.
Paragraph 3 of Article 12 (Drafting Committee Report,
New York) was deleted on the ground that this subject
was already covered by the provisions of Article 89. In
this connection, without prejudice to the usual practice
and procedure under the general principles of interna-
tional law, it was agreed that deletion of paragraph 3
would carry no implication that a Member could not, as
under other parts of the Charter, present a complaint to
the Organization arising out of a violation of Articles 11
or 12 and affecting the interests of a national of such
Member.
Paragraph 2.
The word "just" in paragraphs 2 (a) (iv) and 2 (b) of
Article I2 covers all aspects of the payment of considera-
tion or compensation, including adequacy and time of
payment, from the point of view both of the payer and
of the receiver, and makes it clear that compensation
would not be payable where, because of a violation of a
iaw in force, property has been forfeited or taken under
public management or occupation whether by executive
action in accordance with pre-existing law or as a penalty
under judicial procedure.
The provisions of paragraphs 2 (a) (iv) and 2 (b) are
not applicable when the measures of transfer of owner-
ship have been effected pursuant to the terms of a treaty
of peace or in conformity with other international agree-
ments related to the conclusion of the war.
The Belgian Delegation wishes to have it recorded
that, even though the word "prior" has not been included
in the text, its interpretation of just consideration or
compensation would include the idea that the amount of
consideration or compensation to be paid should be fixed
"prior" to the property being taken into public owner-
ship or placed under public management or occupation.
A Member's obligation to ensure the payment of just
consideration or just compensation to a foreign national
(insofar as it is an obligation to make payment in cur-
rency) is essentially an obligation to make payment in the
local currency of that Member. The extent to which
transfers of such payment into other currencies are to be
allowed is for determination by the Member government
in accordance with its general foreign exchange policy
maintained consistently with the Articles of Agreement
of the International Monetary Fund or with a special
exchange agreement executed by that Member pursuant
to Article 24 of the Charter. This shall not prevent a
country taking action to give effect to any greater
obligations in respect of such transfers as it may have
accepted in an international agreement, provided that
such action is consistent with its obligations under the
Charter and under the Articles of Agreement of the
International Monetary Fund. A Member would not,
however, be fulfilling its obligation to ensure the payment
of just consideration or just compensation if it restricted
the transferability of such payments to a greater extent
than required by its general foreign exchange policy as
conditioned by the preceding sentence. In this connec-
tion, attention is invited to paragraph (i) of Article XIX
of the Articles of Agreement of the International Mone-
tary Fund. - I4 -
(iv) reasonable measures taken to ensure
the transfer of ownership, in whole
or in part, of any investment within
its territories from the nationals of
any other Member to its own na-
tionals, it being understood that
such measures will provide for the
payment of just consideration for
the ownership transferred and that
if the nationals of any other Member
believe such provision has not been
made, the Member will provide
adequate opportunity for consul-
tation in the manner described
in (iii) above.
(b) Members shall make just compensation
if the property, in which a national of
another Member has an interest, is taken
into public ownership or placed under
public management or occupation.
3. Members shall promote co-operation be-
tween national and foreign enterprises or in-
vestors for the purpose of fostering economic
development in cases where such co-operation
appears to the Members concerned to be
appropriate.
any obligation which the Member has assumed
through. negotiations with any other Member or
Members pursuant to Chapter IV, such appli-
cant 'Member shall so notify the Organization
and shall transmit to the Organization a
written statement of the considerations in
support of the adoption of the proposed
measure.
(b) The Organization shall promptly trans-
mit such statement to all other Members, and
any Member which considers that its trade
would be substantially affected by the proposed
measure shall transmit its views to the Orga-
nization within such period as shall be pre-
scribed by the Organization.
(c) The Organization shall then promptly
examine the proposed measure to determine
whether it concurs in it, with or without modi-
fication, and shall in its examination have
regard to the provisions of this Charter, to
the considerations presented by the applicant
Member and its stare of economic development
or reconstruction, to the views presented by
Members which may be substantially affected,
and to the effect which the proposed measure,
with or without modification, is likely to have
on international trade.
Article 13.
Governmental Assistance to Economic
Development.
1. The Members recognize that special
governmental assistance may be required
to promote the establishment, development or
reconstruction of particular industries, or par-
ticular branches of agriculture, and that in
appropriate circumstances the grant of such
assistance in the form of protective measures is
justified. At the same time they recognize that
an unwise use of such measures would impose
undue burdens on their own economies, un-
warranted restrictions on international trade
and might increase unnecessarily the difficulties
of adjustment for the economies of other coun-
tries.
3. (a) If as a result of its examination
pursuant to paragraph 2 (c) of this Article the
Organization concurs in principle in any
proposed measure, with or without modifica-
tion, which. would be inconsistent with any
obligation that the applicant Member has
assumed through negotiations with any other
Member or Members pursuant to Chapter IV,
or which would tend to nullify or impair the
benefit to such other Member or Members of
any such obligation, the Organization shall
sponsor and assist in negotiations between
the applicant Member and the other Member
or Members which would be substantially
affected with a view to obtaining substantial
agreement. The Organization shall establish
and communicate to the Members concerned
a time schedule for such negotiations.
2. (a) If a Member in the interest of its
programme of economic development or recon-
struction considers it desirable to adopt any
non-discriminatory measure which would con-
flict with any provision of Chapter IV or with
(b) Members shall commence the negotia-
tions provided for in sub-paragraph (a) of this
paragraph within such period as the Organiza-
tion may prescribe and shall thereafter, unless
Article 13.
The Delegation of China reserved its position but
indicated that it was prepared to recommend the text of
this Article to its Government for further consideration
without committing its Government and while reserving
the right to request re-examination of this Article at the
World Conference.
The Delegation of India reserved its position on this
Article and the whole subject of quantitative restrictions
for protective purposes while stating that it had reported
the text of this Article to its Government and would
make a further statement in this connection upon receipt
of instructions from its Government.
The Delegation of Lebanon reserved its position
pending the World Conference. - 15 -
the Organization decides otherwise, proceed
continuously with such negotiations with a
view to reaching substantial agreement in
accordance with the time schedule laid down
by the Organization.
(c) Upon substantial agreement being
reached, the Organization may release the
applicant Member from the obligation referred
to in sub-paragraph (a) of this paragraph or
from any other relevant obligation under this
Charter, subject to such. limitations as may
have been agreed upon in the negotiations
between the Members concerned.
4. (a) If, as a result of its examination pur-
suant to paragraph 2 (c) of this Article, the
Organization concurs in any proposed measure,
with or without modification, other than those
provided for in paragraph 3 (a) of this Article,
which would be inconsistent with any provision
of Chapter IV, the Organization may release
the applicant Member from any obligation
under such provision, subject to such limita-
tions as the Organization may impose.
(b) If, having regard to the provisions of
paragraph 2 (c), it is established in the course
of such examination that such measure is un-
likely to be more restrictive of international
trade than any other practicable and reason-
able measure permitted under this Charter
which could be imposed without undue dif-
ficulty and that it is the one most suitable for
the purpose having regard to the economics
of the industry or the branch of agriculture
concerned and to the current economic con-
dition of the applicant Member, the Organiza-
tion shall concur in such measure and grant
such release as may be required to make such
measure effective.
(c) If in anticipation of the concurrence
of the Organization in the adoption of a measure
concerning which notice has been given under
paragraph 2 of this Article, other than a measure
provided for in paragraph 3 (a) of this Article,
there should be an increase or threatened
increase in the importations of the product or
products concerned, including products which
can be directly substituted therefor, so sub-
stantial as to jeopardize the plans of the
applicant Member for the establishment, deve-
lopment or reconstruction of the industry or
industries concerned, or branches of agricul-
ture concerned, and if no preventive measures
consistent with this Charter can be found
which seem likely to prove effective, the appli-
cant Member may, after informing, and when
practicable consulting with, the Organization,
adopt such other measures as the situation
may require pending a determination by the
Organization, provided that such measures do
not reduce imports below the level obtaining
in the most recent- representative period pre-
ceding the date on which the Member's original
notification wàs made under paragraph 2 of
this Article.
5. (a) In the case of measures referred to in
paragraph 3 of this Article, the Organization
shall, at the earliest opportunity but ordinarily
within fifteen days after receipt of the state-
ment referred to in paragraph 2 (a) of this
Article, advise the applicant Member of the
date by which the Organization will notify
it whether or not it concurs in principle in
the proposed measure, with or without modi-
fication.
(b) In the case of measures referred to in
paragraph 4 of this Article, the Organization
shall, as provided for in paragraph 5 (a), advise
the applicant Member of the date by which it
will notify it whether or not it is released from
such obligation or obligations as may be rele-
vant; Provided that, if the applicant Member
does not receive a final reply by the date set by
the Organization, it may, after communicating
with the Organization, institute the proposed
measure after the expiration of a further thirty
days from such date.
Article 14.
Transitional Measures.
1. Any Member may maintain any non-
discriminatory protective measure which has
been imposed for the establishment, develop-
ment or reconstruction of particular industries,
or particular branches of agriculture, and
which is not otherwise permitted by this
Charter; Provided that
(a) any such Member which is a signatory of
the General Agreement on Tariffs and
Trade shall have notified the other signa-
tory governments not later than thirty
days prior to the day of the signature
of the Agreement of each product on
which any such existing measure is to
be maintained and of the nature and
purpose of such measure, and
(b) any such Member not being a signatory
of the General Agreement but having
signed this Charter on the day of its
general signature, shall have notified
the other governments signing this
Charter on that day, prior to their
signature, of each product on which
any such existing measure is to be main-
tained and of the nature and purpose
of such measure, and
(c) any other such Member shall, prior to
the day of its signature of this Charter,
Article 14.
The Delegation of Lebanon reserved its position
pending the World Conference.
Paragraph 1 (b) and (c).
The general signature referred to in sub-paragraphs (b)
and (c) above is the signature contemplated at the
conclusion of the World Conference. have notified the existing measures that
it wishes to maintain to all governments
which signed the Charter on the day of
its general signatures, or if this Charter
has already entered into force, to the
Members of the Organization. Any
Member maintaining any such measure
shall within one month of assuming
Membership in the Organization notify
it of the measure concerned, the con-
siderations in support of its mainte-
nance and the period for which it wishes
to maintain the measure. The Organi-
zation shall, as soon as possible, but
in any case within twelve months of such
Member assuming Membership in the
Organization, examine and give a deci-
sion concerning the measure as if it had
been submitted to the Organization
for its concurrence under Article 13.
2. The Organization, in making a decision
under this Article specifying a date by
which any modification in or withdrawal of the
measure is to be made, shall have regard to
the possible need of a Member for a suitable
period of time in which to make such modi-
fication or withdrawal.
3. This Article shall not be construed to
apply to a measure which would be inconsistent
with any obligation that the Member concerned
has assumed through negotiations with any
other Member or Members pursuant to Chapter
IV or which would tend to nullify or impair the
benefit to such other Member or Members of
any such obligation.
Article 15.
Preferential Arrangements for Economic
Development.
1. The Members recognize that special
circumstances may justify new preferential
arrangements between two or more countries,
not contemplating a customs union, in the
interest of the programmes of economic develop-
ment or reconstruction of one or more such
countries. Subject to such limitations as it
may impose, the Organization may grant [by
an affirmnative vote of two-thirds of the Members
voting] an exception to the provisions of
Chapter IV to permit such arrangements to be
made.
2. Any Member or Members contemplating
such an arrangement shall notify the Orga-
nization thereof and shall transmit to it a
written statement of the considerations in
support of the adoption of the arrangement.
The Organization shall then examine and give
a decision concerning the proposal as if it had
been submitted for its concurrence under
Article I3. Any country which would be
accorded preferential treatment by another
country under the proposed arrangement shall
be regarded as an applicant Member for the
purpose of that Article.
Paragraph 1 (c).
The United States Delegation wishes to have it recor-
ded that it assumes that sub-paragraph (c) is to be inter-
preted as permitting Members so notified effectively to
question the nature and extent of such measures before
the adherence of the Member proposing to maintain them
becomes effective.
Article 15.
The Delegation of Brazil entered a reservation pending
a decision on the question of voting requirements under
this Article.
The Delegation of Chile reserved its position both with
respect to the principle of prior approval and with respect
to the voting requirements of a two-thirds majority if
the latter is decided upon.
- 16 - -17 -
CHAPTER IV
COMMERCIAL POLICY
SECTION A. - TARIFFS, PREFERENCES, AND INTERNAL TAXATION AND REGULATION
Article 16.
General Most-favoured-nation Treatment.
1. With respect to customs duties and
charges of any kind imposed on or in connection
with importation or exportation or imposed on
the international transfer of payments for
imports or exports, and with respect to the
method of levying such duties and charges,
and with respect to all rules and formalities in
connection with importation and exportation,
and with respect to all matters referred to in
paragraphs 1 and 2 of Article I8, any advantage,
favour, privilege or immunity granted by any
Member to any product originating in or
destined for any other country, shall be accorded
immediately and unconditionally to the like
product originating in or destined for all other
Member countries respectively.
2. The provisions of paragraph I of this
Article shall not require the elimination, except
as provided in Article I7, of any preferences in
respect of import duties or charges which do
not exceed the levels provided for in paragraph 3
of this Article and which fall within the following
descriptions:
(a) preferences in force exclusively between
two or more of the territories listed in
Annex A to this Charter, subject to the
conditions set forth therein;
(b) preferences in force exclusively between
two or more territories which on I July
I939 were connected by common sove-
reignty or relations of protection or
suzerainty and which are listed in
Annexes B, C, D and ... of this Charter,
subject to the conditions set forth
therein;
(c) preferences in force exclusively between
the United States of America and the
Republic of Cuba;
(d) preferences in force exclusively between
neighbouring countries listed in Annexes
E , F and ... of this Charter.
3. The margin of preference on any product
in respect of which a preference is permitted
under paragraph 2 of this Article shall not
exceed (a) the maximum margin provided for
under the General Agreement on Tariffs and
Trade or any subsequent operative agreement
resulting from negotiations under Article 17,
or (b) if not provided for under such agreements,
the margin existing either on 1o April I947 or
on such earlier date as may have been established
for a Member as a basis for negotiating the
General Agreement on Tariffs and Trade, at the
option of such Member.
Article 17.
Reduction of Tariffs and Elimination
of Preferences.
1. Each Member shall, upon the request of
the Organization, enter into and carry out with
such other Member or Members as the Orga-
nization may specify, negotiations directed to
the substantial reduction of tariffs and other
charges on imports and exports and to the
elimination of the preferences referred to in
paragraph 2 of Article I6 on a reciprocal and
mutually advantageous basis. These nego-
Article 16.
The following kinds of customs action, taken in accord-
ance with established uniform procedures, would not
be contrary to a general binding of margins of preference:
(i) the re-application to an imported product of
a tariff classification or rate of duty, properly appli-
cable to such product, in cases in which the applica-
tion of such classification or rate to such product was
temporarily suspended or inoperative on 10 April
1947; and
(ii) the application to a particular commodity of a
tariff item other than that which was actually applied
to importations of that commodity on 1o April 1947,
in cases in which the tariff law clearly contemplates
that such commodity may be classified under more
than one tariff item.
The Delegations of Chile and Lebanon reserved their
position on this Article.
Paragraph 2.
The Delegation of Cuba reserved its position in
relation to preferences accorded by differential internal
taxes.
Article 17.
The provisions of this Article do not prevent Members
from concluding new, or maintaining existing, bilateral
tariff agreements which are not incorporated in the
General Agreement on Tariffs and Trade, provided that
such agreements are consistent with the relevant prin-
ciples of Article 17 and that the concessions made by a
Member under such agreements are generalized to all
members in accordance with Article 16.
The Cuban Delegation reserved its position. tiations shall proceed in accordance with the
following rules:
(a) In the negotiations relating to any
specific product
(i) when a reduction is negotiated only
in the most-favoured-nation rate,
such reductions shall operate auto-.
matically to reduce or eliminate
the margin of preference applicable
to that product;
(ii) when a reduction is negotiated only
in the preferential rate, the most-
favoured-nation rate shall auto-
matically be reduced to the extent
of such reduction;
(iii) when it is agreed that reductions
will be negotiated in both the most-
favoured-nation rate and the pre-
ferential rate, the reduction in each
shall be that agreed by the parties
to the negotiations;
(iv) no margin of preference shall be
increased.
(b) The binding of low tariffs or of tariff-free
treatment shall in principle be recog-
nized as a concession equivalent in value
to the substantial reduction of high tariffs
or the elimination of tariff preferences.
(c) Account shall be taken of any concessions
which either Member is already extending
to the other Member by virtue of previous
negotiations regarding tariffs and pre-
ferences pursuant to this Article.
(d) The results of such negotiations shall be
incorporate in the General Agreement
on Tariffs and Trade, signed at ............
on . 1947 by
agreement with the parties to that
Agreement, and thereupon the parties
to such negotiation shall become con-
tracting parties to the General Agree-
ment on Tariff Trade if they are not so
already.
2. If any Member considers that any other
Member has failed to fulfil its obligations under
paragraph I of this Article, such Member may
refer the matter to the Organization, which,
after investigation, shall make appropriate
recommendations to the Members concerned.
If the Organization finds that a Member has
failed without sufficient justification, having
regard to its economic position and the pro-
visions of the Charter as a whole, to carry
out negotiations within a reasonable period of
time in accordance with the requirements of
paragraph I of this Article, the Organization
may determine that any Member or Members
shall, notwithstanding the provisions of Article
16, be entitled to withhold from the trade of
the other Member any of the tariff benefits
which may have been negotiated pursuant to
paragraph I of this Article, and embodied in
Part I of the General Agreement on Tariffs
and Trade. If such benefits are in fact with-
held, so as to result in the application to the
trade of the other Member of tariffs higher than
would otherwise have been applicable, such
other Member shall then be free, within sixty
days after such action is taken, to withdraw
from the Organization upon the expiration of
sixty days from the date on which written
notice of such withdrawal is received by the
Organization.
3. The provisions of this Article shall operate
in accordance with the provisions of Article 81.
Article 18.
National Treatment on Internal Taxation
and Regulation.
1. The products of any Member country
imported into any other Member country shall
be exempt from internal taxes and other
internal charges of any kind in excess of those
applied directly or indirectly to like products
of national origin. Moreover, in cases in which
there is no substantial domestic production
of like products of national origin, no Member
shall apply new or increased internal taxes on
the products of other Member countries for the
purpose of affording protection to the production
of directly competitive or substitutable products
Paragraph 1.
The undertaking to negotiate regarding preferences
necessarily implies that prior international commitments
to grant particular preferences will not be permitted to
frustrate the undertaking to negotiate. For this reason
the provisions of sub-paragraph 1 (a) of the New York
draft have been omitted from the Charter as being
implicit.
Obviously any agreement reached affecting preferences
provided for in any prior commitment would require. in
order to be implemented, such change in the latter as
might be necessary to give effect to the agreement. This
change would either have to be agreed between the
parties to the prior commitment or, if they could not
agree, the party wishing to make the change in order to
proceed, would have to terminate the prior commitment
in accordance with its terms.
Article 18.
The Delegation of Norway reserved its position on
this Article.
Paragraph 1.
The Delegation of China reserved its position provision-
ally and proposed the deletion of the second and third
sentences.
The Delegation of Chile reserved its position on the
second and third sentences.
The Delegation of Cuba reserved its position and pro-
posed a new paragraph permitting the exemption of
domestic products from internal taxes for development
purposes.
--- 18 -- - 19 -
which are not similarly taxed; existing internal
taxes of this kind shall be subject to negotiation
for their reduction, or elimination in the manner
provided for in respect of tariffs and preferences
under Article 17.
2. The products of any Member country
imported into any other Member country shall
be accorded treatment no less favourable than
that accorded to like products of national
origin in respect of all laws, regulations and
requirements affecting their internal sale,
offering for sale, purchase, transportation,
distribution, or use. This paragraph shall not
prevent the application of differential transpor-
tation charges which are based exclusively on
the economic operation of the means of
transport and not on the nationality of the
product.
3. In applying the principles of paragraphs 2
of this Article to internal quantitative regula-
tions relating to the mixture, processing or use
of products in specified amounts or proportions,
the Members shall observe the following
provisions:
(a) no regulations shall be made which,
formally or in effect, require that any
specified amount or proportion of the
product in respect of which such regu-
lations are applied must be supplied
from domestic sources;
(b) no Member shall, formally or in effect,
restrict the mixing, processing or use
of a product of which there is no sub-
stantial domestic production with a view
to affording protection to the domestic
production of a directly competitive or
substitutable product.
4. The provisions of paragraph 3 of this
Article shall not apply to:
(a) any internal quantitative regulation
relating to cinematograph films and
meeting the requirements of Article 19;
(b) any other measures of internal quanti-
tative control in force in any Member
country on 1 July I939 or I0 April 1947
at the option of that Member; Provided
that any such measure which would be
in conflict with the provisions of para-
graph 3 of this Article shall not be
modified to the detriment of imports
and shall be subject to negotiations for
its limitation, liberalization or elimina-
tion in the manner provided for in respect
of tariffs and preferences under Article 17.
5. The provisions of this Article shall not
apply to the procurement by governmental
agencies of products purchased for govern-
mental purposes and not for resale or use in
the production of goods for sale, nor shall
they prevent the payment to domestic pro-
ducers only of subsidies provided for under
Article 25, including payments to domestic
producers derived from the proceeds of internal
taxes or charges and subsidies effected through
governmental purchases of domestic products.
Article 19.
Special Provisions relating to Cinematograph
Films.
If any Member establishes or maintains
internal quantitative regulations relating to
exposed cinematography films, such regulations
shall take the form of screen quotas which
shall conform to the following conditions and
requirements:
(a) Screen quotas may require the exhibi-
tion of cinematography films of national
origin during a specified minimum pro-
portion of the total screen time actually
utilized over a specified period of not
less than one year in the commercial
exhibition of all films of whatever origin,
and shall be computed on the basis of
screen time per theatre per year or the
equivalent thereof.
(b) With the exception of screen time re-
served for films of national origin under
a screen quota, no screen time, including
screen time released by administrative
action from minimum time reserved
for films of national origin, shall for-
mally or in effect be allocated among
sources of supply.
(c) Notwithstanding the provisions of sub-
paragraph (b) above, Members may
maintain screen quotas conforming to
the conditions of sub-paragraph (a)
which reserve a minimum proportion of
screen time for films of a national origin
other than that of the Member imposing
such screen quotas; Provided that no
such minimum proportion of screen time
shall be increased above the level in
effect on 10 April I947.
(d) Screen quotas shall be subject to nego-
tiation for their limitation, liberali-
zation or elimination in the manner pro-
vided for in respect of tariffs and pre-
ferences under Article I7.
Paragraph 3.
The Chilean Delegation reserved its position.
Paragraph 4.
The New Zealand Delegation reserved its position on
sub-paragraph (b) pending further consideration.
Paragraph 5.
The Delegation of China reserved its position pro-
visionally and proposed to delete the words "or use in
the production of goods for sale".
Article 19.
The Delegation of the United Kingdom reserved its
position for the time being. - 20 -
SECTION B. - QUANTITATIVE RESTRICTIONS AND EXCHANGE CONTROLS
product can be directly substituted;
or
General Elimination of Quantitative Restrictions.
1. No prohibitions or restrictions other than
duties, taxes or other charges, whether made
effective through quotas, import or export
licences or other measures, shall be instituted
or maintained by any Member on the importa-
tion of any product of any other Member
country or on the exportation or sale for export
of any product destined for any other Member
country.
2. The provisions of paragraph I of this
Article shall not extend to the following:
(a) export prohibitions
porarily applied to
critical shortages of
products essential
Member country;
or restrictions tem-
prevent or relieve
foodstuffs or other
to the exporting
(b) import and export prohibitions or res-
trictions necessary to the application of
standards or regulations for the classi-
fication, grading or marketing of commo-
dities in international trade; if, in the
opinion of the Organization, the stan-
dards or regulations adopted by a Mem-
ber under this sub-paragraph have an
unduly restrictive effect on trade, the
Organization may request the Member
to revise the standards or regulations;
Provided that it shall not request the
revision of standards internationally
agreed under paragraph 7 of Article 38;
(c) import restrictions on any agricultural
or fisheries product, imported in any
form, necessary to the enforcement of
governmental measures which operate:
(i) to restrict the quantities permitted
to be marketed or produced of the
like domestic product, or, if there is
no substantiai domestic production
of the like product, of a domestic
product for which the imported
(ii) to remove a temporary surplus of the
like domestic product, or, if there
is no substantial domestic produc-
tion of the like product, of a domes-
tic product for which the imported
products can be directly substituted,
by making the surplus available to
certain groups of domestic con-
sumers free of charge or at prices
below the current market level; or
(iii) to restrict the quantities permitted
to be produced of any animal pro-
duct the production of which is
directly dependent, wholly or
mainly, on the imported commodity,
if the domestic production of that
commodity is relatively negligible.
Any Member applying restrictions on the
importation of any product pursuant to
this sub-paragraph shall give public
notice of the total quantity or value of
the product permitted to be imported
during a specified future period and of
any change in such quantity or value.
Moreover, any restrictions applied under
(1) above shall not be such as will
reduce the total of imports relative to
the total of domestic production, as
compared with the proportion which
might reasonably be expected to rule
between the two in the absence of
restrictions. In determining this propor-
tion, the Member shall pay due regard
to the proportion prevailing during a
previous representative period, and to
any special factors which may have
affected or may be affecting the trade
in the product concerned.
3. Throughout this Section the terms "import
restrictions " or " export restrictions - include
restrictions made effective through State-trad-
ing operations.
Article 20.
The Cubau Delegation reserved its position in view
of the rejection of its proposal for excepting restrictions
up to 50% of domestic consumption for promoting the
maintenance, development or reconstruction of an indus-
try.
The Chinese and Lebanese Delegations reserved their
position in respect of the proposal by the Chinese Delega-
tion to add a sub-paragraph 2 (d) providing a procedure
for releasing a Member, without the prior approval of the
Organization, from the obligation to refrain from import
restrictions when the industry in question is of vital
importance.
Paragraph 2 (c).
The Chilean Delegation reserved its position.
The term "in any form" in this paragraph covers the
same products when in an early stage of processing and
still perishable, which compete directly with the fresh
product and if freely imported -would tend to make the
restriction on the fresh product ineffective.
Paragraph 2: last sub-paragraph.
The term "special factors" includes changes in relative
productive efficiency as between domestic and foreign
producers, or as between different foreign producers, but
not changes artificially brought about by means not
permitted under the Charter.
Article 20. - 21
Article 21.
Restrictions lo safeguard the Balance of Payments.
1. Notwithstanding the provisions of para-
graph 1 of Article 20, any Member, in order to
safeguard its external financial position and
balance of payments, may restrict the quantity
or value of merchandise permitted to be im-
ported, subject to the provisions of the follow-
ing paragraphs of this Article.
2. (a) No Member shall institute, maintain
or intensify import restrictions under this
Article except to the extent necessary
(i) to forestall the imminent threat of, or
to stop, a serious decline in its mone-
tary reserves, or
(ii) in the case of a Member with very low
monetary reserves, to achieve a reason-
able rate of increase in its reserves;
due regard being paid in either case
to any special factors which may be
affecting the Member's reserves or
need for reserves, including, where
special external credits or other re-
sources are available to it, the need to
provide for the appropriate use of such
credits or resources.
(b) Mémbers applying restrictions under
sub-paragraph (a) shall progressively relax
them as such conditions improve, maintaining
them only to the extent that the conditions
specified in that sub-paragraph still justify
their application. They shall eliminate the
restrictions when conditions would no longer
justify their institution or maintenance under
that sub-paragraph.
3. (a) The Members recognize that in the
early years of the Organization all of them will
be confronted in varying degrees with problems
of economic adjustment resulting from the
war. During this period the Organization
shall, when required to take decisions under
this Article or under Article 23, take full
account of the difficulties of post-war adjust-
ment and of the need which a Member may
have to use import restrictions as a step towards
the restoration of equilibrium in its balance of
payments on a sound and lasting basis.
(b) The Members recognize that, as a
result of domestic policies directed toward the
fulfilment of a Member's obligations under
Article 3 relating to the achievement and main-
tenance of- full and productive employment
and large and steadily growing demand or its
obligations under Article 9 relating to the
reconstruction or development of industrial
and other economic resources and to the raising
of standards of productivity, such a Member
may experience a high level of demand for
imports. Accordingly:
(i) notwithstanding the provisions of
paragraph 2 of this Article no
Member shall be required to with-
draw or modify restrictions on the
ground that a change in such policies
would render unnecessary the restric-
tions which it is applying under this
Article.
(ii) any Member applying import res-
trictions under this Article may
determine the incidence of the
restrictions on imports of differentt
products or classes of products in
such a'way as to give priority to the
importation of those products which
are more essential in the light of
such policies.
(c) Members undertake, in carrying out
their domestic policies:
(i) to pay due regard to the need
for restoring equilibrium in their
balance of payments on a sound and
lasting basis and to the desirability
of assuring an economic employment
of productive resources;
(ii) not to apply restrictions so as to
prevent unreasonably the importa-
tion of any description of goods in
minimum commercial quantities, the
exclusion of which would impair
regular channels of trade, or restric-
tions which would prevent the
importation of commercial samples,
or prevent compliance with patent,
trademark, copyright, or similar
procedures; and
(iii) to apply restrictions under this
Article in such a way as to avoid
unnecessary damage to the commer-
cial or economic interests of any
other Member.
Article 21.
The Belgian Delegation reserved its position pending
examination of the Charter as a whole by the Belgian
Government.
Paragraph 2.
The Australian Delegation recorded a reservation
against the text of paragraph 2 (b) on the ground that
the present language does not accurately express the
intended meaning.
Paragraph 3 (b) (i).
The phrase "notwithstanding the provisions of para-
graph 2 of this Article" has been included in the text
to make it quite clear that a Member's import restrictions
otherwise necessaryy" within the meaning of sub-para-
graph 2 (a) shall not be considered unnecessary on the
ground that a change in domestic policies as referred to
in the text could improve a Member's monetary reserve
position. The phrase is not intended to suggest that
the provisions of paragraph 2 are affected in any other
way. - 22 -
4. (a) Any Member which is not applying
restrictions under this Article, but is consider-
ing the need to do so, shall, before instituting
such restrictions (or, in circumstances in which
prior consultation is impracticable, immediately
after doing so), consult with the Organization
as to the nature of its balance-of-payments diffi-
culties, alternative corrective measures which
may be available, and the possible effect of
such measures on the economies of other
Members. No Member shall be required in
the course of consultations under this sub-
paragraph to indicate in advance the choice
or timing of any particular measure which it
may ultimately determined to adopt.
(b) The Organization may at any time invite
any Member which is applying import restric-
tions under this Article to enter into such con-
sultations with it, and shall. invite any Member
substantially intensifying such restrictions to
consult within thirty days. A Member thus
invited shall participate in such discussions.
The Organization may invite any other Member
to take part in these discussions. Not later
than two years from the day on which this
Charter enters into force, the Organization shall
review all restrictions existing on that clay and
still applied under this Article at the time of the
review.
(c) Any Member may consult with the
Organization with a view to obtaining the prior
approval of the Organization for restrictions
which the Member proposes, under this Article,
to maintain, intensify or institute, or for the
maintenance, intensification or institution of
restrictions under specified future conditions.
As a result of such consultations, the Organiza-
tion may approve in advance the maintenance,
intensification or institution of restrictions by
the Member in question insofar as the general
extent, degree of intensity and duration of the
restrictions are concerned. To the extent to
which such, approval has been given, the require-
ments of sub-paragraph (a) of this paragraph
shall be deemed to have been fulfilled, and the
action of the Member applying the restrictions
shall not be open to challenge under sub-para-
graph (d) of this paragraph on the ground that
such action is inconsistent with the provisions of
paragraph 2 of this Article.
(d) Any Member which considers that ano-
ther Member is applying restrictions under this
Article inconsistently with paragraph 2 or 3
of this Article or with Article 22 (subject to the
provisions of Article 23) may bring the matter
for discussion to the Organization; and the
Member applying the restrictions shall parti-
cipate in the discussion. The Organization, if
it is satisfied that there is a prima facie case
that the trade of the Member initiating the
procedure is adversely affected, shall submit
its views to the parties with the aim of achiev-
ing a settlement of the matter in question which
is satisfactory to the parties and to the Organi-
zation. If no such settlement is reached and if
the Organization determines that the restric-
tions are being applied inconsistently with para-
graph 2 or 3 of this Article or with Article 22
(subject to the provisions of Article 23), the
Organization shall recommend the withdrawal
or modification of the restrictions. If the
restrictions are not withdrawn or modified in
accordance with the recommendation of the
Organization within sixty days, the Organiza-
tion may release any Member from specified
obligations under this Charter, towards the
Member applying the restrictions.
(e) It is recognized that premature disclosure
of the prospective application, withdrawal or
modification of any restriction under this
Article might stimulate speculative trade and
financial movements which would tend to defeat
the purposes of this Article. Accordingly, the
Organization shall make provision for the
observance of the utmost secrecy in the conduct
of any consultation.
5. If there is a persistent and widespread
application of import restrictions under this
Article, indicating the existence of a general
disequilibrium which is restricting international
trade, the Organization shall initiate dis-
cussions to consider whether other measures
might be taken, either by those Members whose
balances of payments are under pressure or by
those Members whose balances of payments are
tending to be exceptionally favourable, or by
any' appropriate inter-governmental organiza-
tion, to remove the underlying causes of the
disequilibrium. On the invitation of the Organi-
zation, Members shall participate in such
discussions.
Article 22.
Non-discriminatory Administration
of Quantitative Restrictions.
1. No prohibition or restriction shall be applied
by any Member on the importation of any
product of any other Member country or on the
exportation of any product destined for any
other Member country, unless the importation
of the like product of all third countries or the
exportation of the like product to all third
countries is similarly prohibited or restricted.
2. In applying import restrictions to any
product, Members shall aim at a distribution
of trade in such product approaching as closely
as possible to the shares which the various
Member countries might be expected to obtain
in the absence of such restrictions, and to this
end shall observe the following provisions:
(a) wherever practicable, quotas represent-
ing the total amount of permitted -- 23 -
imports (whether allocated along sup-
plying countries or not) shall be fixed,
and notice given of their amount in
accordance with paragraph 3 (b) of this
Article;
(b) in cases in which quotas are not practi-
cable, the restrictions may be applied
by means of import licences or permits
without a quota;
(c) Members shall not, except for purposes
of operating quotas allocated in accord-
ance with sub-paragraph (d) of this
paragraph, require that import licences
or permits be utilized for the imnportation
of the product concerned from a parti-
cular county or source;
(ci) in cases in which, a quota is illlocated
among supplying countries, the Member
applying the restrictions may seek agree-
ment with respect to the allocation of
shares in the quota with all other
Members having a substantial interest
in supplying the product concerned.
In cases in which this method is not
reasonably practicable, the Member
concerned shall allot to Member countries
having a substantial interest in supplying
the product, shares based upon the
proportions, supplied by such Member
countries during a previous representa-
tive period, of the total quantity or
value of imports of the product, due
account being taken of any special
factors which may have affected or may
be affecting the trade in the product.
No conditions or formalities shall be
imposed which would prevent any
Member from utilizing fully the share
of any such total quantity or value which
has been allotted to it, subject to import-
ation being made within any prescribed
period to which the quota may relate.
3. (a) In cases in which import licences are
issued in connection with import restrictions,
the Member applying the restriction shall
provide, upon the request of any Member
having an interest in the trade in the product
concerned, ail relevant information concerning
the administration of the restriction, the import
licences granted over a recent period and the
distribution of such licences among supplying
countries; Provided that there shall be no
obligation to supply information as to the
names of importing or supplying enterprises.
(b) In the case of import restrictions
involving the fixing of quotas, the Member
applying the restrictions shall give public
notice of the total quantity or value of the
product or products which will be permitted
to be imported during a specified future period
and of any change in such quantity or value.
Any supplies of the product in question which
were en route at the time at which public
notice was given shall not be excluded from
entry; Provided that they may be courted, so
far as practicable, against the quantity per-
mitted to be imported in the period in question,
and also, where necessary, against the quantities
permitted to be imported in the next following
period or periods, and Provided further that if
any Member customarily exempts from such
restrictions products entered for consumption
or withdrawn from warehouse for consumption
during a period of thirty days after the day of
such public notice, such practice shall be
considered full compliance with this sub-
paragraph.
(c) In the case of quotas allocated among
supplying countries the Member applying the
restriction shall promptly inform all other
Members leaving an interest in supplying the
product concerned of the shares in the quota
currently allocated, by quantity or value, to
the various supplying countries and shall give
public notice thereof.
t. With regard to restrictions applied in
accordance with. paragraph 2 (d) of this Article
or under paragraph 2 (c) of Article 20, the
selection of a representative period for any
product and the appraisal of any special factors
affecting the trade in the product shall be made
initially by the Member applying the restric-
tion; Provided that such Member shall, upon
the request of any other Member having a
substantial interest in supplying that product
or upon the request of the Organization,
consult promptly with the other Member or
Article 22.
Paragraph 2, sub-paragraph (d).
The Preparatory Committee omitted the phrase
establishing "commercial considerations" as a rule for
the allocation of quotas, because it was considered that
its application by governmental authorities might not
always be practicable. Moreover, in cases where it was
practicable, a Member could apply this consideration in
the process of seeking agreement, consistently with the
general rule laid down in the opening sentence of para-
graph 2.
* tragraph 3, sub-paragraphs (1) and (c).
The Czechoslovak Delegation reserved its position on
the requirement of public notice in sub-paragraphs (b)
and (c). The Czechoslovak Delegation, while not
opposed to the principle of public notice, cannot accept
it as an immediate obligation, as long as the countries
with whom Czechoslovakia has been conducting the
major part of lier foreign trade arc not following a
similar procedure. The obligation or giving public
notice of global quotas and of the allocation of shares is,
in the particular situation of Czechoslovakia, too rigid
a rule and, unless practised generally, liable to have a
harmful effect upon the expansion of foreign trade in
general, and the economic interests of Czechoslovakia in
particular. In the view of the Czechoslovalk Delegation
it should be sufficient to supply full information to
Members substantially interested in the exportation of
the respective commodity.
Paragraph 4.
See note relating to "special factors" in connection
with the last sub-paragraph of paragraph 2 of Article 20. the Organization regarding the need for an
adjustment of the proportion determined or
of the base period selected or for the re-
appraisal of the special factors involved, or for
the eliminiation of conditions, formalities or
any other provisions establisihed unilaterally
upon the allocation of an adequate quota or its
unrestricted utilization.
5, The provisions of this Article shall apply
to any tariff quota instituted or maintained
by any Member and, insofar as applicable
the principles of this Article shall also extend
to export restrictions and to any internal
regulation or requirements under paragraph 2
of Article I8.
Article 23.
Exceptions to the Rule of Non-discrimination.
i. (a) The Members recognize that when a
substantial and widespread disequilibrium pre-
vails in international trade and payments a
Member applying restrictions under Article 2I
may be able to increase its imports from
certain sources without unduly depleting its
monetary reserves, if permitted to depart from
the provisions of Article 22. The Members
also recognize the need for close limitation of
such departures so as not to handicap achieve-
ment of multilateral international trade.
(b) Accordingly, when a substantial and
widespread disequilibrium prevails in inter-
national trade and payments a Member. ap-
plying import restrictions under Article 2I may
relax such restrictions in a mannerwhich departs
from the provisions of Article 22 to the extent
necessary to obtain additional imports above
the maximum total of imports which it could
afford in the light of the requirements of
paragraph 2 of Article 2I if its restrictions were
fully consistent with Article 22; Provided that
(i) levels of delivered prices for products
so imported are not established sub-
stantially higher than those ruling
for comparable goods regularly avail-
able from other Members, and that
any excess of such price levels for
products so imported is progressively
reduced over a reasonable period;
(ii) the Member taking such action does
not do so as part of any arrangement
by which the gold or convertible
currency which the Member currently
receives directly or indirectly from
its exports to other Members not
party to the arrangement is appre-
ciably reduced below the level it
could otherwise have been reasonably
expected to attain;
(iii) such action does not cause unne-
cessary damage to the commercial or
economic interests of any other
Member.
(c) Any Member taking action under this
paragraph shall observe the principles of sub-
paragraph (b) of this paragraph. A Member
shall resist from transactions which prove to
be inconsistent with. that sub-paragraph but
the Member shall not bc required to satisfy
itself, when it is not practicable to do so, that
the requirements of that sub-paragraph are
fulfilled in respect of individual transactions.
(d) Memrbers undertake in framing and
carrying out any programmes for additional
imports under this paragraph to pay due regard
to the need to facilitate. the termination of any
exchange arrangements which deviate from the
obligations of Sections 2, 3 and 4 of Article VI 11
of the Articles of Agreenment of the Interna-
tional Moneta.ry Fund and to the need to restore
* quilibrium in their balances of payments on a
sound and lasting basis.
2. Any Member taking action under para-
graph I of this Article shall keep the Organiza-
tion regularly informed regarding such action
and shall provide such available relevant
information as the Organization may request.
3. (a) Not later than I March 1952 (five
years after the date on which the International
Monetary Fund began operations) and in each
year thereafter, any Member maintaining or
proposing to institute action under paragraph i
of this Article shall seek the approval of the
Organization, which shall. thereupon determine
whether the circumstances of the Member
justify the maintenance or institution of action
by it under paragraph i of this Article. After
I March I952 no Member shall maintain or
institute such action without determination
by the Organization that the Member's circum-
stances justify the maintenance or institution
of such action, as the case may be, and the
subsequent maintenance or institution of such
action by the Member shall be subject to any
limitations which the Organization may
prescribe for the purpose of ensuring compliance
with the provisions of paragraph i of this
Article; Provided that the Organization shall
Article 23.
The Delegations of Czechoslovakia, Chile and Norway
recorded a reservation.
The Belgian Delegation reserved its position pending
examination of the Charter as a whole by the Belgian
Government.
Paragraph 3.
The Preparatory Committee considered the question of
whether it was necessary to make express reference in
paragraph 3 of Article 23 to the need of the organization
to consult -with the International Monetary Fund. It
concluded that no such reference was necessary since
such consultation in all appropriate cases was already
required by virtue cf the provisions of paragraph 2 of
Article 2.1. --- 25 -
not require that prior approval be obtained
for individual transactions.
(b) If at any time the Organization finds
that import restrictions are being applied by a
Member in a discriminatory manner incon-
sistent with the exceptions provided for under
paragraph i of this Article, the Member shall,
within sixty days, remove the discrimination
or modify it as specified by the Organization;
Provided that any action under paragraph
of this Article, to the extent that it has been
approved by the Organization under sub-
paragraph (a) of this paragraph or to the
extent that it has been approved by the
Organization at the request of a Member under
a procedure analogous to that of paragraph 4 (c)
of Article 2I, shall not be open to challenge
under this sub-paragraphl or under para-
graph 4 (d) of Article 2I on the ground that it
is inconsistent with Article 22 .
(c) Not later than I March. I950, and in
each year thereafter so long as any Members
are taking action under paragraph i of this
Article, the Organization shall report on the
action still taken by Members under that
paragraph. On or about I March 1952, and
in each year thereafter so long as any Members
are taking action under paragraph of this
Article, and at such times thereafter as the
Organization may decide, the Organization
shall review the question of whether there then
exists such. a substantial and widespread
disequilibrium in international trade and pay-
ments as to justify resort to paragraph I of
this Article by Members. If it appears at any
date prior to i March i952 that there has been
a substantial and general improvement in
international trade and payments, the Orga-
nization may review the situation at that date.
If, as a result of any such reviews, the Organiza-
tion determines that no such disequilibrium
exists, the provisions of paragraph of this
Article shall be suspended, and aIl actions
authorized thereunrder shall cease six months
after such determination.
4. The provisions of Article 22 shall not
preclude restrictions in accordance with Article
2I 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 lund on condition that such
restrictions are in all other respects
consistent with Article 22, or
(b) assist, in the period until 31 December
1951, by measures not involving sub-
stantial departure from the provisions
of Article 22, and other Country whose
economy has been disrupted by war.
The provisions of this Section shall not
preclude:
(a) restrictions with equivalent effect to
exchange restrictions authorized under
Section 3 (b) of Article VII of the
Articles of Agreement of the Interna-
tional Monetary Fund; or
(b) restrictions under the preferential ar-
rangements provided for ii Annex A
of this Charter, subject to the conditions
set forth therein.
Article 24.
Exchange A arrangement.
I.The Organization shall seek co-operation
with the International Monetary Fund to the
end that the Organization and the Fund may
pursue a co-ordinated policy With regard to
exchange questions within. the jurisdiction of
the Fund and questions of quantitative restric-
tions and other trade measures within the
jurisdiction of the Organization.
2. ln all cases in which the Organization is
called upon to consider or deal with problems
concerning monetary reserves, balance of pay-
ments or foreign exchange arrangements, the
Organization shall consult fully with the Inter-
national Monetary Fund. In such consulta-
tion, the Organization shall accept all findings
of statistical and other facts presented by the
International Monetary Fund relating to foreign
exchange, monetary reserves and balance of
payments, and shall accept the determination
of the I and as to whether action by a Member
in exchange matters is in accordance with the
Articles of Agreement ' of the International
Monetary Fund, or with the terms of a special
exchange agreement between that Member and
the Organization. The Organization, in reach-
ing its final decision in cases involving the
criteria set forth in paragraph 2 (a) of Article 2I
shall accept the determination of the Inter-
Paragraph 5 (b).
The Brazilian Delegation has recorded a reservation.
Article 24.
The Belgian Delegation rescrved its position pending
examination of the Charter as a whole by the 13elgian
Govern ment.
Paragraph 2.
The Australian Delegation recorded a reservation
against this text, proposing the following formulation
of the last sentence:
"The Organization, i reaching its final decision in
cases involving the criteria set forth in paragraph 2 (a)
of Article 21 shall give special weight to the opinions of
the International Monetary Fund as to what conisti-
tutes. . in consultation in such cases-
on thue ground that since the Organization has a respon-
sibility for action under Article 21, it should also retain
the right of final decision as to whether the criteria of
paragraph 2 (al) have been met.
The New Zealand Delegation also recorded a reserva-
tion on the last sentence of paragraph 2. - 26 -
national Monetary Fund as to what constitutes
a serious decline in the Member's monetary
reserves, a very low level of its monetary
reserves or a reasonable rate of increase in its
monetary reserves, and as to the financial
aspects of other matters covered in consultation
in such, cases.
3. The Organization; shall see; agreement
with the International Monetary Fund regard-
ing procedures for consultation under paragraplh
2 of this Article. Any such agreement, other
than informal arrangements of a temporary or
administrative character, shall be subject to
confirmation by the Conference.
4. Members shall not, by exchange action,
frustrate the intent of the provisions of this
Section, nor, by trade action, the intent of the
provisions of the Articles of Agreement of the
International Monetary Fund.
. If the Organization considers, at any time,
that exchange restrictions on payments and
transfers in connection with imports are bein-
applied by a Member in a marii inconsistent
with the exceptions provided in this Section
for quantitative restrictions, it shall, report
thereon to the International Monetary Fund.
6. Any Member of the Organization. which. is
not a member of the International Monetary
Fund shall, within a time to be determined by
the Organization after consultation with the
International Monetary l und, become a mem-
ber of the Fund or, failing that, enter into a
special exchange agreement with the Organiza-
tion. A Member of the Organization which
ceases to be a member of the International
Monetary Fund shall forthwith enter into a
special exchange agreement with the Organiza-
tion. Any special exchange agreement entered
into by a Member under this paragraph shall
thereupon become part of its obligations under
this Charter.
7. (a) A special exchange agreement bet-
ween a Member and the Organization under
paragraph 6 of this Article shall provide to the
satisfaction of the Organization that the objec-
tives of this Charter will not be frustrated as a
result of action in exchange matters by the
Member in question.
(b) The terms of any such- agreement shall
not impose obligations on the Member in
exchange matters generally more restrictive
than those imposed by the Articles of Agree-
ment of the International Monetary Fund on
members of the Fund.
8. A Member which is not a member of the
International Monetary Fund shall furnish
such information within the general scope of
Section 5 of Article VIII of the Articles of
Agreement of the International Monetary Fund,
as the Organization may require in order to
carry out its functions under this Charter.
9. Subject to paragraph 4 of this Article,
nothing in this Section shall preclude
(a) the use by a Member of exchange con-
trots or exchange restrictions in accord-
ance with the Articles of Agreement of
the International Monetary Fund or
with that Member's special exchange
agreement with the Organization, or
(b) the use by a Member of restrictions or
controls on imports or exports, the sole
effect of which, additional to the effects
permitted under Articles 20, 21, 22
and 23, is to make effective such ex-
change controls or exchange restrictions.
SECTION C. - SUBSIDIES
Article 25.
Subsidies in General.
If any Member grants or maintains any
subsidy, including any form of income or price
support, which operates directly or indirectly
to increase exports of any product from, or to
reduce imports of any product into, its terri-
tory, the Member shall notify the Organization
in writing of the extent and nature of the sub-
sidization, of the estimated effect of the subsi-
Paragraph 4.
The word "frustrate" is intended to indicate, for
example, that infringements by exchange action of the
letter of any Article of this Charter shall not be regarded
as offending against that Article if, in practice, there is no
appreciable departure from the intent of the Article.
Thus a Member which, as part of its exchange control,
operated in accordance with the Articles of Agreement
dization on the quantity of thc- affected product
or products imported into or exported from
the territory of the Member and of the cir-
cumstances making the subsidization necessary.
In any case in which it is determined that
serious prejudice to the interest of any other
Member is caused or threatened by any such
subsidization, the Member granting the subsidy
shall, upon request, discuss with the other
Member or Members concerned, or with the
Organization, the possibility of limiting the
subsidization.
of the lnternational Monetary Fund, required payment
to be received for its exports in its own currency or in the
currency of one or more members of the International
Monetary Fund would not thereby be deemed to be
offending against Article 20 or Article 22. Another
example would be that of a Member which specified on an
import licence the country from which the goods right
be imported for the purpose not of introducing any
additional element of discrimination in its import
licences but of enforcing permissible exchange controls. - 27 -
Article 26.
Additional Provisions on Export Subsidies.
I. No Member shall grant, directly or in-
directly, any subsidy on the exportation of
any product, or establish or maintain any other
system, which subsidy or system results in the
sale of such product for export at a price lower
than the comparable price charged for the like
product to buyers in the domestic market, due
allowance being made for differences in the
conditions and terms of sale, for differences in
taxation, and for other differences affecting
price compariability.
2. Notwithstanding the provisions of para-
graph I of this Article a Member may exempt
exported products from duties or taxes imposed.
in respect of like products when consumed
domestically, or may remit such duties or
taxes which have accrued. The use of the
proceeds of such duties or taxes to make pay-
ments to domestic producers, however, shall
be considered as a case under Article 25 except
in so far as such payments subsidize exporta-
tion, in the sense of paragraph I of this Article,
by more than the amount of the duties or
taxes remitted or not imposed, in which case
the provisions of paragraph i of this Article
shall apply to such excess payments.
3. Members shall give effect to the provisions
of paragraph i of this Article at the earliest
practicable date, but in any event not later
than two years from the day on which this
Charter enters into force. If any Member con-
siders itself unable to do so in respect of any
specified product or products, it shall, at least
three months before the expiration of such
period, give notice in writing to the Organiza-
tion, requesting a specific extension of the
period. Such notice shall be accompanied by
a complete analysis of the system in question
and the effects justifying it. It shall then be
determined whether the extension requested
should be made.
4. Notwithstanding the provisions of para-
graph I of this Article, any Member may sub-
sidize the exports of any product to the extent
and for such time as may be necessary to
offset a subsidy granted by a non-Member
affecting the Member's exports of the product.
However, the Member shall, upon the request
of the Organization or of any other Member
which considers that its interests are adversely
affected by such action, consult with that
Member or with the Organization with a view
to reaching a satisfactory adjustment of the
matter.
Article 27.
Special Treatment oj Primary Commodities.
I. A system for the stabilization of the
domestic price or of the return to domestic
producers of a primary commodity, inde-
pendently of the movements of export prices,
which results at times in the sale of the pro-
duct for export at a price lower than the com-
parable price charged for like like product to
buyers in the domestic market, shall bc con-
sidered not to involve a subsidy on exporta-
tion within the rneaning of paragraph I of
Article 26, if it is determined:
(a) that the system has also resulted in the
sale of the product for export at a price
higher than the comparable price charged
for the like product to buyers in the
domestic market,
and
(b) thta the system is so operated, either
because of the effective regulation of
production or otherwise, as not to
stimulate exports unduly or otherwise
seriously prejudice the interests of other
Members.
2. In any case of subsidization of a primary
commodity, if a Member considers that its
interests are seriously prejudiced by the sub-
sidy or if the Member granting the subsidy
considers itself unable to comply with the pro-
vision of paragraph 3 of Article 26 within the
time limit laid down therein, the difficulty may
be deemed to be a special difficulty under Chap-
ter VI, and in that event the procedure laid
down in that Chapter shall be followed.
3. If the measures provided for in Chapter VI
have not succecded, or do not promise to
succeed, within a reasonable period of time,
either because no agreement has been reached
or because the agreement is terminated, any
Member adversely affected may apply for
exemption from the requirements of paragraphs
I and 3 of Article 26 in respect of that commo-
dity. If it is determined that the circumstances
described in Article 59 apply to the commodity
concerned and that the subsidization will not
be so operated as to stimulate exports unduly
or otherwise seriously prejudice the interests of
other Members, the Organization shall grant
such exemption for such period and within
such limits as may be determined.
Article 28.
Undertaking regarding Stimulation of Exports.
Notwithstanding
graphs I, 2 and 3
graph 3 of Article
the provisions of para-
of Article 26 and of para-
27, no Member shall grant
Article 26.
The Cuban Delegation reserved its position.
Article 27, paragraph 3.
The United States Delegation reserved its position on
paragraph , of Article 27 and on Article 25. any subsidy on the exportation of any pro-
duct which has the effect of acquiring for that
Member a share of world trade in that pro-
duct in excess of the share which it had during
a previous representative period, account being
taken insofar as practicable of any special
factors which may have affected or may be
affecting the trade in that product. The
selection of a representative period for any
product and the appraisal of any special factors
affecting the trade in the product shall be made
initially by the Member granting the subsidy ;
Provided that such Member shall , upon the
request of any other Member having an import-
ant interest in the trade in that product, or
upon the request of the Organization, consult
promptly with the other Member or with the
Organization regarding the need for an adjust-
ment of the base period, selected or for the
re-appraisal of the special factors involved.
Article 29.
Procedure.
Any determination provided for in, or appro-
priate to the operation of, this Section shall be
made through the organization by consulta-
tion and agreement among the Members
substantially interested in the product con-
cerned.
SECTION D. - STATE TRADING
Article 30.
Non-discriminatory Treatment.
I. (a) Each Member undertakes that if it
establishes or maintains a State enterprise,
wherever located, or grants to any enterprise,
formally or in effect, exclusive or special pri-
vileges, such enterprise shall, in its purchases
or sales involving either imports or exports, act
in a manner consistent with the general prin-
ciples of non-discriminatory treatment applied.
in this Charter to governmental measures
affecting imports or exports by private traders.
(b) The provisions cf sub-paragraph (a)
of this paragraph shall be understood, to require
that such enterprises shall, leaving due regard
to the other provisions of this Charter, make
any such purchases or sales solely in accordance
with commercial considerations, including
prices, quality, availability, marketability,
transportation and other conditions of purchase
or sale, and shall afford the enterprises of the
other Members adequate opportunity, in accord-
ance with customary business practice, to
compete for participation in such purchases or
sales.
Article 30.
Paragraph I.
The operations of Marketing Boards, which are
established by Members and are engaged in purchasing
or selling, are subject to the provisions of sub-para-
graphs (a) -and (b).
The activities of Marketing Boards which are estab-
lished by Members and which do not purchase or sell but
lay down regulations covering private trace are governed
by the relevant Articles of this Charter.
The charging by a State enterprise of different prices
for its sales of a product in different markets is not preclu-
ded by the provisions of this Article, provided that such
different prices are charged for commercial reasons. to
meet conditions of supply and demand in export markets.
(c) No Member shall prevent any enter-
prise (whether or not an enterprise described
in sub-parargrap (a) of this paragraph) under
its jurisdiction from acting in accordance with
the principles of sub-paragraphs (a) and (b) of
this paragraph.
2. The provisions of paragraph I of this
Article shall not apply to imports of products
for immediate or ulltimate consumption in
governmental use and not otherwise for re-
sale or for use in the production of goods for
sale. With respect to such imports, the
Members shall accord to the trade of the other
Members fair and equitable treatment.
Article 31.
Expansion of Trade.
i. If any Member establishes, maintains or
authorizes, formally or in effect, a monopoly
cf the importation or exportation of any pro-
duct, such Member shall, upon the request of
any mother Membrer or Members having a sub-
stantial interest in trade with it in the product
concerned, negotiate with l such Member or
Members in the manner provided for under
*Sub-paragraph I (a).
Governmental measures imposed to ensure standards
of quality and efficiency in the execution of external
trade, or privileges granted for the exploitation of national
natural resources but which do not empower the govern-
ment to exercise control over the trading activities of the
enterprise in question, do not constitute exclusive or
special privileges". The Belgian Delegation reserved its
position on this note.
Sub-paragraph i (b).
A country re-eiving a -tied loan' is free to take this
loan into account as a 'commercial consideration'' when
purchasing requirements abroad.
Paragraph 2.
The term "goods" is limited to products as understood
in commercial practice, and is not intended to include the
purchase or sale of services. - 29 -
Article I7 in respect of tariffs, and subject to
all the provisions of this Charter with respect
to such tariff negotiations, with the object of
achieving:
(o) in the case of an export monopoly,
arrangements designed to limit or reduce
any protection that might be afforded
through the operation of the monopoly
to domestic users of the monopolized
product or designed to assure exports of
the monopolized product in adequate
quantities at reasonable prices; or
(b) in the case of an import monopoly,
arrangements designed to limit or reduce
any protection tihat might be afforded
through the operation of the monopoly
to domestic producers of the monopolized
product, or designed to prevent any
limitation of imports to an extent
inconsistent with the provisions of this
Charter.
2. In order
sub-paragraph
maintaining a
(ci) for the
import
respect
to satisfy the requirements of
i (b) of this Article, the Member
monopoly shall negotiate
establishment of the maximum
duty that may be imposed in
of the product concerned; or
(b) for any other mutually satisfactory
arrangement consistent with. the provi-
sions of this Charter if it is evident to
the negotiating parties that to negotiate
a maximum import duty under sub-
paragraph (a) of this paragraph is
impracticable or would be ineffective for
the achievement of the objectives of
paragraph I of this Article.
Any Member entering into negotiations under
sut-paragraph (b) of this paragraph shall afford
to other interested Members an opportunity for
consultation in respect of the proposed
arrangement.
3. In any case in which a maximum import
duty is not negotiated under paragraph 2 (a) of
this Article, the Member maintaining the
Article 31.
The Preparatory Committee deleted Article 33, as
given in the Report of the First Session.
In revising the text of Article 32 (now Article 31), of
the New York draft, the Preparatory Committee aimed
at producing a text sufficiently flexible to permit any
appropriate negotiations with a Member which maintains
a complete or substantially complete monopoly of its
external trade. However, since no representative of such
a country attended the sessions of the Preparatory
Committee, the question whether the present Article 31
provides an adequate basis for participation by such a
country in the rights and obligations of tire Charter
remains open for discussion at tire World Conference.
Arising out of a proposal by the Nev Zealand Delega-
tion to make an addition to the previous text of Article 33,
the Preparatory Committee considered the special
problems that migrt be created for Members which, as
a result of their programmes of full empoyment, mair-
tenance of high and rising levels of demand and econo-
mic development, find themselves faced. with a high level
of demand for imports, and in consequence maintain
import monopoly shall make public or notify
the Organization of the maximum import duty
which it wiil apply in respect of the product
concerned.
4. The price charged by the import monopoly
for the imported product in the home market
shall not exceed the landed cost plus the maxi-
mum import duty negotiated under paragraph
2, of this Article or made public or notified to
the Organization under paragraph 3 of this
Article, after due allowance for internal taxes,
transportation, distribution and other expenses
incident to the purchase, sale or further pro-
cessing, and for a reasonable margin of profit;
Provided that regard may be had to average
landed costs and selling prices over recent
periods; and Provided further that, where the
product concerned is a primary product and the
subject of a domestic price stabilization
arrangement, provision may be made for
adjustment to take account of wide fluctua-
tions or variations in world prices subject,
where a maximum duty has been negotiated,
to agreement between the countries parties to
tue negotiation.
5. With regard to any product to which the
provisions of this Article apply the monopoly
shall, wherever this principle can be effectively
applied and subject to the other provisions of
this Charter, import and offer for sale such
quantities of the product as will be sufficient
to satisfy the full domestic demand for the
imported product, account beig taken of any
rationing to consumers of the imported and
like domestic product which may be in force
at that time.
6. In applying the provisions of this Article,
due regard shall be had for the fact that some
monooplies are established and operated mainly
for social, cultural, humanitarian or revenue
purposes.
7. This Article shall not limit the use by
Members of any form of assistance to domestic
producers permitted by other provisions of
this Charter.
quantitative regulation of their foreign trade. In the
opinion of the Preparatory Committee the present text
of Article 21, together with the provision for export
controls in certain parts of tire Charter, e.g. in Article 3,
fully meet the position of these: economies.
The Delegation of New Zealand reserved tire position
of its Government on this question.
Paragraph 3.
If the maximum import duty is not bound by negotia-
tions according to sub-paragraph z (a) the Member is
free to change at any time the declared maximum import
duty, provided such change is made public or notified to
the Organization.
paragraph 4;.
With reference to the second proviso, the method and
degree of adjustment to be permitted in the cases of a
primary product that is the subject of a domestic price
stabilization arrangement should I normally be a matter
for agreement at the time of the negotiations under sub-
paragraph (a) of paragraph 2. 30 -
SECTION E. - GENERAL COMMERCIAL PROVISIONS
Article 32.
Freedom of Transit.
I. Goods (including baggage), and also) vessels
and other means of transport, shall be deemed
to be in transit across the territory of a Member,
when the passage across such territory with
or without trans-shipment, warehousing, break-
ing bulk, or change in the mode of transport, is
only a portion of a complete journey beginning
and terminating beyond the frontier of the
Member across whose territory the traffic
passes. Traffic of this nature is termed in this
Article " traffic in transit ".
2. There shall be freedom of transit through
each Member country via the routes most
convenient for international transit for traffic
in transit to or from other Member countries.
No distinction shall be made which is based on
the flag of vessels, the place of origin, departure,
entry, exit or destination, or on any circum-
stances relating to the ownership of goods, of
vessels or of other means of transport.
3. Any Member may require that traffic in
transit through its territory be entered at the
proper customs house, but, accept in cases of
failure to comply with applicable customs laws
and regulations, such traffic coming from or
going to other Member countries shall not. be
subject to any unnecessary delays or restric-
tions and shall be exempt from customs duties
and from all transit duties or other charges
imposed in respect of transit, except charges
for transportation or those commensurate
with administrative expenses entailed by transit
or with the cost of services rendered.
4. AlI charges and regulations imposed by
Members on traffic in transit to or from other
Member countries shall; be reasonable, having
regard to the conditions of the traffic.
5. With respect to all charges, regulations
and formalities in connection with transit,
each Member shall accord to traffic ir -ransit
to or from any other Member country treat-
ment no less favourable than the treatment
accorded to traffic in transit to or from any
third country.
Article 32.
The Chilean Delegation maintained for the the being.
the view that Article 3: should be confined to goods only.
in which case the words -and also vessels and other means
of transport' in paragraph I should be deleted, and in
consequence reserved its position.
Paragraph 5.
With regard to tr.- .;port charges, the principle of
paragraph 5 refers to like products being transported on
the same route under like conditions.
6. Each Member shall accord to products
which have been in transit through any other
Member country treatment no less favourable
than that -which would have been accorded to
such products had they been transported from
their place of origin to their destination with-
out going through such other Member country.
Any Member shall, however, be free to main-
tain its requirements of direct consignment
existing, on the day of the signature of this
Charter, in respect of any goods in regard to
which such direct consignment is a requisite
condition of eligibility for entry of the goods at
preferential rates of duty or has relation to
the Member's prescribed method of valuation
for duty purposes.
7. The provisions of this Article shall not
apply to the operation of aircraft in transit, but
shall. apply to air transit of goods (including
baggage).
Article 33.
Anti-dumping and Counterwailing Duties.
I. No anti-dumiping duty shall be levied on
any product of any Member country imported
into any other Member country in excess of
an amount equal to the margin of dumping
under which such product is being imported.
For the purposes of this Article, the margin
of dumping shall be understood to mean the
amount by which the price of the product
exported from one country to another
(a) is less than the comparable price, in the
ordinary course of trade, for the like
product when destined for consumption
in the exporting country, or,
(b) in the absence of such domestic price, is
less than either
(i) the highest comparable price for
the like product for export to any
third country in the ordinary course
of trade, or
(ii) the cost of production of the product
in the country of origin plus a
reasonable addition for selling cost
and profit.
Due allowance shall be male in each case for
differences in conditions and term; of sale, for
differences in taxation, and for other differences
affecting price comparability.
Article 33.
The Delegations of Cuba and Lebanon would have
preferred to introduce the Article by an express state-
ment of condemnation of dumping.
Hidden dumping by associated houses (that is. the
sale by the importers at a price below that corresponding
to the price invoiced by the exporter with which the
importer is associated. and also below the price in the
exporting country) constitutes a form of price dumping. - 3I -
. No courntervailing duty shall be Ievied on
any product of any Member country imported
into another Member country in excess of an
amount equal to the estimated bounty or
subsidy determined to have been granted,
directly or indirectly on the manufacture, pro-
duction or export of such product in the country
of origin or exportation, including any special
subsidy to the transportation of a particular
product. The term "countervailing, duty"
shall be understood to mean a special duty
levied for the purpose of offsetting any bounty
or subsidy bestowed, directly or indirectly,
upon the manufacture, production or exporta-
tion of any merchandise.
3. No product of any Member country
imported into any other Member country shall
be subject to anti-dumping, or countervailing
duly by reason of the exemption of such pro-
duct from duties or taxes borne by the like
product when destined for consumption in the
country of origin or exportation> or by reason
of the refund of such duties or taxes.
4. No product of any Member country
imported illto any other Member counitry
shall be subject to both anti-dumiping and
countervailing duties to compensate for the
same situation of dumping or export subsidiza-
tion.
5. No Meraber shall levy any anti-clumping
or countervailing duty on the importation of
any product of another Member country unless
it determines that the effect of the dumping
or subsidization, as the case may be, is such
as to cause or threaten material injury te an
established dornestic industry, or is sucri as to
prevent or materially retard the establishment
of a doomestic industry. The Organization may
waive the requirements of this paragraphs so
as to permit a Member to levy an anti-dumping
duty or countervailing duty on the importation
of any product for the purpose of offsetting
dumping or subsidization which causes or
threatens material injury to an industry in
another Member country exporting the product
concernred to the importin- Meinber country.
It is recognized that the importation of pro-
ducts exported under a stabilization system
doeterrnird to liavc confornied to the conditions
prescridcd in Article 27 wvould ne1t rcstllt il'
m;aturial iujjury under the ternis of titis para-
graph .
<). No zîtcastires other tlhani aznti-dumiping or
counturvailing dluties shall be applied by any
Mcuiiber ini respect of any product of any other
Member country for the purpose of offsetting
dumping or subsidization.
Article 34.
Vaitazo1zn for Cusionis IPurposCs.
i. 'J`he Meimbers shall. work toward the stand-
arclization, as far as practicablc, of definitions
cf value and of procedures for dcterminiing
the value of products subject to customs duties
or other charges or restrictions based upon
or regulated ini any manner by value. With
a view to furthering such co-operation, the
Organization may study and recommend to
Members such bases and methods for determin-
ing value for customs purposes as would appear
best suited to the needs of commerce and most
capable of general adoption.
2. The Members recognize the validity of
the general principles of valuation set forth in
paragraphs 3, 4 and 5 of this Article, and they
undertake to give effect to such princples, in
respect of all products subject to duties or
other charges or restrictions on importation
and exportation based upon or regulated in
any manner by value, at the earliest practicable
date. Moreover, they shall, upon a request by
another Member, review the operation of any
of their laws or regulations relating to value for
customs purposes in the light of these principles.
'flie Organization may request from Members
reports ont steps taken by them in pursuance
of the provisions of this Article.
3. (ci) The value for customs purposes of
imported merchandise should be based on the
Paragraph 2.
.Multiple currency practices may in certain circumstan-
ces constitute a subsidy to exports which can be met by
countervailing duties under paragraph 2 or may constitute
a form of dumping by means of a partial depreciation of
a country's currency which can be met by action under
paragraph i of this Article. By multiple currency
practices- is meant practices by governments or sanc-
tioned by governments.
Paragraph 5.
The Delegations of Belgium-Luxemburg, Czecho-
slovakia, France and the Netherlands expressed the fear
that abuses might be committed under cover of the provi-
sions of paragraphs 5 regarding the threat of injury. of
which a State might take advantage on the pretext that
it intended to establish some new domestic industry in
the more or less distant future. It is considered, how-
ever, that, if such abuses were committed, the general
provisions of the Charter would be adequate to deal
with them.
.paragraph 6.
The addition of this paragraph was opposed by the
Dulegations of China and India.
The obligations set forth in paragraph 6 are, as in the
case of ail othlr obligations under Chapter IV. sutbjuci
to hlie provisions of Article .Io.
Article 34.
Paa'tGraph 2.
The P>reparatory Committec considered the desirability
of replacing the words -at the cailiest practicable date"
by a definite date or, alternatively, by a provision fora
specified limited period to bu fixed later. TJhe Committee
appreciated that it would not be possihlc for all Members
to give defect to these principles by a fixed time, but it
%vas nevertheless understood that a majority of the
Members xvould give effect to them at thc timnu the
Charter enters into force. - - 32 - -
actual value of tle imported merchandise on
which duty is assessed or of like merchandise,
and should not be based on the value (if m1erl-
chandise of national origi n or on arbiti ;iry or
fictitious values.
(bi) `Actual value should be the prite at
which at a time and place determined by the.
legislation of the country of importation and
in the ordinary course of trade, such or like
merchandise is sold or offered for sale under
fully competitive conditions. To the extent
to which te price of such or like merchandise
is governed by the quantity in a particular
transaction, the price to be considered should
uniformly be related to either (i) comparable
quantities, or (ii) quantities not less favourable
to importers than those in which the greater
volume of the nierchandidse is soll il. lhe trade
between the coUii tries of exportation and in)por-
tatfion.
(c) Wheni the actual value is ulot asccrtain-
able in accordance witl subl)-paragraph (b) of this
paragraph, tlie value for custonis purposes
shoiild be based on tlhe nearest ascertainablv
equivaleiit of stcli value.
4. Thl e value for cuistorns purposes of anY
imported product should not inclicle thte ainount
of any internal tax applicable within tlie countrY
of origin or export, froni which the imported
product lias been exempted or lias been or will
be relieved by means of refund.
5. (ai) Except as otherwise provided in this
paragraph, where it is necessary for the purpose
of paragraplh 3 for a Memlbeur to convert into
its own currency a price expressed in the
currency of another country, the conversion
rate of ecxchange to be used shall be based on
the par values' of the currencies involved as
established pursuant to the Articles of Agree-
ment of the International Monetary Fund or
by special exchange agreenments entered into
-pursuant to Article 24 of this Chapter.
-- (b) Where no such. par value has been
established, the conversion rate shall. reflect
effectively the current value of such currency
in commercial transactions.
(c) The Organization, in agreement with
the International Monetary Fund, shall for-
mulate rules governing the conversion by
Paragraph 3.
It would be in conformity with Article 34 to presume
that 'actual value" may be represented by the invoice
price, plus any non-included charges for legitimate cost.
which are proper elements of -actual value" and plus
any abnormal discount or other reduction from the
ordinary competitive price.
It would be in conform-ty with Articleh 34, 3 (b), for a
Member to construe the phrase "in the ordinary course
of trade", read in conjunction with -under fully compe-
titive conditions', as excluding any transaction wherein
Members of any foreign currency in respect of
wlîicli înîîl tfple rates of uxcliu îgîg are mlaîin-
taiined coinsistently withl tfli Articles of Agree-
mni c f of tlic international ïIMonftary ;IIÙu .
MAin Meiber inay apply sUCli riles iii r(esp)ect
of sîucli foreign curreîîcies for tlie purposes of
:;T,-_l: 3ip of fllis Art icle as an alternative
to the USe' of P.Lr vtaliis. Unltil such rules are
adopted by the Organization, any Member may
employ in respect of any sucg foreign currency
rules of conversion for the purposes of paragraph
3 of this Article which are designed to reflect
effectively the value of such foreign currency
in commercial transactions.
(ci) Nothing in this paragraphs shall be
construed to require any Member to alter the
method of converting, currencies for customs
purposes, wiiich is applicable iii its territory
on tlhe day of the signature of tlhis Charter,
if slucli alteration would have the effect of
illcreasing generally flic aironunts of (luty
payabl.e.
G. The bases and methods for determining
the value of products subject to duties or other
charges or restrictions based upon or regulated
ili .an manner by value should be stable and
should be given sufficient publicity to enable
trailers to estimate, with a reasonable degree
of certainty, the value for customs purposes.
Article 35.
F0rmalities connected with Importation
and Exportation.
i. The Members recognize tliat fees and
charges, other than duties, imposed by govern-
mental authorities on or in connection with
importation or exportation should be limited
in amount to the approximate cost of services
rendered and should not represent an indirect
protection to domestic products or a taxation
of imports or exports for fiscal purposes. The
Members also recognize the need for reducing
the nmnnber and diversity of such fees and
charges, for minimizing thie incidencC and
complexity of import anîd export formalities,
and for decreasing and simplifying import and
export documentation requirements.
2. The Members shall take action in accord-
ance wvith the principles and objectives of
the buyer and seller are not inclepenident (À eaclh other
and price is not the sole consideration.
The prescribed standar" uf -fully competitive condi-
tions' permits Meinbers to exclude from consideration
distributcrs' prices which involve special discounts limited
to exclusive agents.
Thc wording of (a) and (b) permits a Mlember to assess
duty uniformly either (r) on the basis of a particular
exporter's prices of the importecd merchandise, or (2) on
the basis of the general price level of like merchandise.
The Delegation of Chile reserved its position for the
time being. -- 33 -
paragraph i of this :`Article at tic earlies'.
practicable date. Moicover-, they shaH ll,
re(luest by> -;ii)tller Mleinber, îcview hlie optuîa-
tionI of auv of their lawjs and rneulatiotis iii the
li-lît of these prilnciples. 'l'le Org-anllizatioli
inay request froin Memibers reports on steps
taken by tlhem iII pursuance of tlic provisions
of this paragraph.
3. The Organizationi may stldv ancl re-
cominend to Meembers speci tic measlures for the
simopliflication aid stantiardization of Custoims
formalities and techniques and for the elimi-
nation of uninecesStaI'rv customs requireiinents.
4. No Member shall impose substantial
penalties for miniiior breaclhes of customs re-u-
lations or procedural reluirenmenits. Jii par-
ticular, no penalty in respect of any omission
or mistake in customs documentation xvhich
is easily rectifiable and obviously made without
fraudulent intent or gross neg-igence shall be
greater than necessary to serve merely as a
xvarnirig.
5. The provisions of this Article shall extend
to fees, charges, formalities and requirements
imposed by governincrital autlioritics in con-
nection with importation and exportation,
includin; ;:hose relating to:
(a) consular transactions, sucli as consular
invoices and certificates;
(b) quantitative restrictions;
(c) licensing;
(d) exchange control:
(e) statistical services;
(J) documents, documentation and certi-
fication;
(g) analysis and inspection; and
(h) quarantine, sanitation and fumigation.
Article 36.
.llarks of Origiin.
i. The Members recognize that in adopting
and implementing laws and regulations relating
to marks of origin, the difficulties and incon-
veniences which such measures may cause to
the commerce and industry of exporting
countries should be reduced to a minimum.
2. Each Meember shalI accord to the products
of each other Member country treatment with
regard to marking requirements no less favour-
able than the treatment accorded to like
products of any third country.
3. \Vhct a v raIIîinistradîively pctîcable,
MLmhIt r- NîlmîI-d perillit rlquîru(ld mark l f
nigil t . bu. tlatixed at thc t ine o f illiportatioln.
-[. 'l'lie latws and ruspmlaLtions of Menmburs
relatiltt'. to tLie llnarkilg olf ilnported products
sliall be Sului as to perrmiit comAliance without
scriouslv dainmaging tlhe products, or mnaterially
recdticiiig their value, or umireasonably increasing
their cost.
5. The Merm bers agree to wvorl1 in co-operatiomi
thlroughl the Organization toNvards the early
elimination of unnecessary markinig require-
menmts. The Organization may study and
recomrîniend to MIembers nmeasures clirected lo
this end, including the adoption of schedules
of general categories of products, in respect
of wvhicli marking recquirenments operate to
restrict trade to an extent disproportionate to
any proper purpose to be served, and which
shall not in aniy case be required to be marlked
to inldicate their origin.
6. As a general rule no special duty or
penalty should be imposed by any Member for
failure to comply with Inmarking requirements
prior to importation unless corrective mnarking
is unreasonably delayed or cleceptive marks
have been atfixed or the required marking LIas
bleen intentionally omitted.
7. The Members shall co-operate %vith each
other and through the Org.anizationl witli a view
to preventing the use of tracle names in such
manniier as toi misrepresenit the truc origin of a
product, to the detriment of the distinctive
regional or geographical nanmes of products of
a Member country wvhicih are protected by the
le-Tislation of such couritry. Each Memnber
shall accord full and synmpathetic consideration
to such requests or representations as may be
made by any other Memniber re-arding the
application of the undertaking set forth in the
precedin- sentel1ce to names of products which
have been communicated to it bv the other
Member. The Orgailization may recommend
a conference of interested Meembers on this
subject.
Article 37.
Publication and Admninisiratio-n of Trade
Regulations.
i. Laws, regulations,
administrative rulings
made effective by any
judicial decisions and
of general application
Member, pertaining to
ArtIcle 35. International
Paragraph 5. graph z fully
merely requir
While Article 35 does not cover the use of multiple practicable d;
rates of exchange as such, paragraphs i and 5 condemn
the use of exchange taxes or fees as a device for imple- Article 36.
Inenting multiple currency practices; if, however, a Paragraph 7
Member is using multiple currency exchange fees for
balance of payments reasons wvith the approval of the Thi Delega
Monetary Fund, the provisions of para-
,safeguard its position since tnat paragraph
es that the fecs be eliminated at the earliest
ate.
nation of Chile reserved its position. 3.4 --
tlh classilfcationi or the evaluation of products
for custolls purposes, or to rates of dutv, taxes
or othler charges, or to requirenien ts, retricit iOtlS
or l)rohibitions on iînports or exports or on the
transfer of payments therefor, or affecting their
sale, distribution, transportation, instura:i-e,
warehousin-, inspection, exhibition, procerrsing,
mixihig or other use, shall be publishled proin-Ptly
in such a manner as to enable governinents and
traders to become acquain ted withl them.
Agreements in force between the government
or a governmental ageiicy of any Meniber
country and the government or governinental
agency of any other country affecting inter-
national trade policy shall also be pLlblisled.
Copies of suclh laws, regulations, decisions,
rulings and agreements shall be comniiiunicated
prornptly to the Organization. This para-rapIi
shall not require any Mernber to disclose
confidential in formation which Nvould impede
law enforcement, or otheiwrise be contrary to
the public interest or would pre. Jice the
legitimate commercial interests of particular
enterprises, public or private.
2. No measure of general application taken
by any .Member effecting an advance in a rate
of duty or other charge on imports under an
established and uniform practice or imposing
a new or more burdensome r uquirement,
restriction or prohibition on imports, or on the
transfer of payments therefor, shall be enforced
before such measure has been officially
published.
3. (a) Each Member shall administer in a
uniform, impartial and reasonable manner all
its laws, regulations, decisions anld rulings of
the kind described in paragraph i of this Article.
(b) Each Member shall maintain, or
institute as soon as practicable, judicial, arbitral
or administrative tribunals or procedures for
the purpose, inter alia, of the prompt review
and correction of administrative e action relating
to customs niatters. Such tribunals or pro-
cedures shall be independent of the agencies
entrusted wvith administrative enforcement and
their decisions shall be implemented by and
shall govern the practice of such agencies unless
an appeal is lodged with a court or tribunal
of superior jurisdiction within the time pre-
scribed for appeals to be lodged by importers;
Provided that the central administration of
such agency may take steps to obtain a review
of the matter in another proceeding if there is
good cause to believe that the decision is
inconsistent with established principles of law
or the actual facts.
(c) The provisions of sub-paragraph (b)
of this paragraph shall not require the elimi-
nation or substitution of procedures in force
in a Member country on the day of the signature
of this Charter which in fact provide for an
objective impartial review of administrative
action even though such procedures are not
filly or formally ' independent of the agencies
entrusted Vitli adi li nistrative enforcninent.
Any emIember eînploying such Jocedures sliall,
upon ruclJest, furnisli the Organization with
mil in [for lmatiOnl tlClerOI1 ill order that the
Organization niay deterrniic whe Lher sucli
procedures conforni to tlie requirements of this
sUb-paragraphl and. those of subl-paragraph (b).
Article 38.
InfJoyratio'n, Sitaistics a nd Trade Tcrninoog;..
i. The Members shlall conmrnunicate to the
Orgarîization, or to such agency as may bu(
designatted for the purpose by the Organization,
as prornptly and in as muc1 detail as is reason-
ably practicable:
(a) statistics of their external trade in gooris
(imports, exports and, vhere .applicable,
re-exports, transit and trans-shipmeint
and goods in warehouse or in bond);
(b) statistics of governmental revenue from
import and export duties and other
Laxes on goods moving in international
trade ancd, in so far as readily ascertain-
able, of subsidy payrnerts affecting such
trade.
2. So far as possible, the statistics referred
to in paragraph i of this Article shall bc related
lO tariff classifications and shall be in such form
as to reveal the operation of any restrictions on
importation or exportation which alre based on
or regulated in any manner by quantity or
value or amounts of exchange made available.
3. 1`he Members shall publish regularly and
as promptly as possible the statistics referred
to iii paragraph i of thîis ArLicle.
4. The Members shall give careful consider-
ation to any recommendations which the
Organization may make to them with a view
to improving the statistical information fur-
nished under paragraph i of this Article.
5. The Members shalI make available to the
Organization, at its request and in so far as is
reasonably practicable, suclh other statistical
information as the Organization may deem
necessarv to enable it to fulfil its functions,
provided that such information is not being
furnished to other inter-governmental organiza-
tions from which the Organization can obtain
the required information.
6. The Organization shall act as a centre for
the collection, exchange and publication of
statistical information of the kind referred to - 35 -
i n paragraph of this Article The Organiza-
tion, in collaboration with the Economic and
Social Council of the United Nations, and with
any other organization (deemed appropriate,
may engage in studies with a view to improving
the methods of collectiong, analyzing and
publishing economIic state istics and may proomote
the international comn)parability of sucb sta:is-
tics, including tue possible international adop-
tiolI of standard tariff andi commodity classi-
tications.
7. The Orgaîîization, in co-operation witil tue
other organizatioins referred to in paragraph 6
of this Article, mav also study the question
of adopting standards, nomenclatures, terms
and forms to be used in international trade and
in the official document s and statistics of
Members relating thereto, and inay recomnmend
the general acceptance by Members of such
standards, nomeneîclat urges, terins aîlîd forms.
Article 39.
Boyco/is.
No \leiinber shall encourage, Support or parti-
cipate in boycotts or other caîupaigns wliCch are
tlesigined to dliscourage, directly or indirectly,
ihe consutliption Nvithin itS teritory Of products
of may specific Member country or countries on
grounds of origin, or the sale of products for
coûnSUnptioû. withiin other Member countries on
grounds of destination.
SECTION F. - SPECIAL PROVISIONS
Article 40.
Emergency Action on Imports of Partlicular
Products.
i. (a) If, as a result of unforeseen develop-
ments and of tile effect of the obligations
incurred bly a Mcinber under or pursuant to
this' Chapter, including tariff concessions, .any
product is be ing imported into the territory
of that Member in such increased quantities
and under such conditions as to cause or threat-
en serious injury to domestic producers in that
territory of like or directly competitive pro-
ducts, the Member shâll be force, in respect of
such product, and to the extent and for such
time as may b: necessaryy to prevent or remedy
such injury, to suspend the obligation in whole
or in part or to withdraw or modify the con-
cession.
(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 paragraphs so as to cause or threaten
serious injury to domestic producers of like or
directly competitive products in the territory
of a -Member which receives or received such
preference, the importing Member shall be free,
if that other -Merber 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 rernedy such
injury.
2. Before any Member shall take action
pursuant to the provisions of paragraph i 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
ut tue proposed action. \\Vh(e1n such notice is
given iii relation to a concession witbi respect
to a I)refererce, the notice shahllname the
Member which has requested the action. in
critical circumstances, 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. (al) 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
force, not later than ninety days after such. action
is taken, to suspend, upon the expiration of
thirty days from the day on which written
notice of such suspension is received by the
Organization, the application to the trade of
the Member taking such action, or, in the case
envisaged in paragraphs i (b) of this Article to
the trade of the Member requesting such action,
of such substantially equivalent obliations or
concessions under this Chapter the suspension of
which the Organization docs not disapprove.
(b) Notwithstanding the provisions of sub-
paragraph (a) of this paragraph, where action
is taken under paragraph 2 of this Article
ivithout 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 consul-
tation, such obligations or concessions as may
be necessary to prevent or remedy the injury.
Article 39.
The Delegation of Lebanon reserved its position. - 36 -
-j. Nothing in this Article shall be construed
(a) to require any Member, in connection with
the withdrawal or modiofication 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 con-
sideration to, and shall afford adequate oppor-
tunitv for consultation regarding, such repre-
sentations as may be made by any other
Member with respect to the operation of cus-
toms regulations and form-alities, anti-dumping
and countervailing duties, quantitative and
exchange regulations, subsidies, state-tradirnb
operations, sanitary laws and regulations for
the protection of human, animal or plant life
or health, and generally all matters affecting
thc operation of this Chapter.
Article 42.
Territorial Application of Chapter IV
- Fronttier Trafic - Customs Unions.
i. The rights and obligations arising under
this Chapter shall be deemed to be in force
between each and every territory which is a
separate customs territory and in respect of
which this Charter has been accepted by a
Member in accordance xvith Article 99.
2. The provisions of this Chapter shall not
be construed to prevent:
(a) advantages accorded by any Member to
adjacent countries in order to facilitate
frontier traffic; or
(b) the formation of a customs union or
the adoption of an interim agreement
necessary for the attainment of a customs
union; Provided that the duties and other
regulations of commerce imposed by, or
any margins of preference maintainecd
by, any such. union or agreement in
respect of trade xvith iMembers of the
Article 42.
Paragraph 4 of the texx of the former Article 38
proposed by the New York Drafting Committee has
been deleted since the subject dealt with therein is
covered by the new Article 15 and by Article 74.
The Delegation of Chile favoured its retention pending
the World Conference.
organization n shall not on 1 the whole be
higher or more stringent than the average
level of the duties and regulations of
comnniercu or niargiins of preference appli-
cable in the constituent territories prior
to the formiation of such unlliO or the
adoption of such agreement, and Pro-
vided further tlîat any such interini
agreement shall include a delinite plan
and schedule for thte attaiinment of
such a custonls union xvithiii a reasonable
lengthi of time.
3. (.7) Any Member proposing, to enter into
a customs union shall consult with the
Organization and shall make available to it
such information regarding the proposed union
as will enable the Organization to make such
reports and recommendations to Members as it
may deem appropriate.
(b) No Member shall institute or maintain
any interim agreement under the provisions of
paragraph 2 (b) of this Article if, after a study
of the plan and schedule proposed in such
agreement, the Organization finds that such
agreement is not likely to result in such a
customs union within a reasonable length of
time.
(c) The plan or schedule shall not be
substantially altered without consultation with
the Organization.
4. For the purpose of this, Article a customs
territory shall be understood to mean any
territory with respect to which separate tariffs
or other regulations of commerce are maintained
for a substantial part of the trade of such ter-
ritory with other territories. A customs union
shall be understood to mean the substitution
of a single customs territory for two or more
customs territories, so that ahl tariffs and other
restrictive regulations of commerce as between
the territories of members of the union are
substantially eliminated and substantially the
same tariffs and other regulations of commerce
are applied by each of the members of the union
to the trade of territories not included in the
union.
Article 43.
General Exceptions to Chapter IV.
Subject to the requirement that such
measures are not applied in a manner which
would constitute a means of arbitrary or
Article 43.
The Delegation of India maintained its suggestion that
a Member should be allowed temporarily to discriniinate
against the trade of another Member when this is the
only effective measure open to it to retaliate against
discrimination practised by that Member in matters
outside the purview of the Organization, pending a
settlement of the issue through the United Nations. - 37 -
unjustifiable discrimination between countries
where the same conditions prevail, or a dis-
guised restriction on international trade,
nothing in this Chapter shall be construed to
prevent the adoption or enforcement by any
Member of measures:
(a) necessary to protect public morals;
(b) necessary to protect human, animal
or plant life or health;
(c) relating to the importation or expor-
tation of gold or silver;
(d) 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 monopoles
operated under Section D of this
Chapter, the protection of patents,
trade marks and copyrights, and the
prevention of deceptive practices;
(e) relating to the products of prison
labour;
(J) imposed for the protection of na-
tional treasures of artistic, historic
or archeological value;
(g) relating to the conservation of
exhaustible natural resources if such
measures are made effective in con-
junction with restrictions on do-
mestic production or consumption;
(h) undertaken in pursuance of obli-
gations under inter-governmental
commodity agreements concluded
in accordance with the provisions
of Chapter VI; or
(i) 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 restric-
tons shall not operate to increase
the exports of or the protection
afforded, to such domestic industry,
aLd shall not depart from the pro-
visions of this Chapter relating to
non-discrimination.
Il. (a) Essential to the acquisition or dis-
tribution of products in general. or
local short supply; Provùild tliait
anv such measures sha;hll be cousis-
tent with any inultilateral arraznge-
ments clirected to an e(juitable inter-
national dlistributioln of suîch pr-o-
ducts or, in the absence of such
arrangements, with the principle
that all Members are entitled to an
equitable share of the international
suplply of such products;
(b) essential to the control of prices by
a Member country , undergoing short-
ages subsequent to the war; or
(c) essential to the orderly liquidation
of temporary surpluses of stocks
owned or controlled. by the govern-
ment 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; Pro-
vided that such measures shall not
be instituted by any Member, ex-
cept after consultation with other
interested Members with a view
to appropriate international action.
.Measures instituted or maintained under
paragraph II of this Article which are incon-
sistent with the other provisions of this Chapter
shall. be removed as soon as thie conditions
g-iving rise to them have ceased, and in any
event not later than I January I95I; Provided
that this period may, with the concurrence of
the Organization, be extended in respect of
the application of any particular measure to
any particular product by any particular
Member for such further periods as the Organi-
zation may specify.
Paragraph I. Paragraph IL.
The Delegation of Norway re-btated its view: that the l'he Norwvegian Dlegation, referring to sul)-paragraph
taxation and the price policy of Nwrway's State liquor (b), statcd tlat provisions relating to pernmanent price
and wine monzupolv wvas covered by sub-paragraphs (a) rngulation ought to be includlu ilu the Charter.
and (b).
Sub-paragrap/î I (g).
The Australian Delegation reservt:d its position. -- 38 -
CHAPTER V
RESTRICTIVE BUSINESS PRACTICES
Article 44.
General Policy towards Restrictive Business
Practices.
i. Each Member shall. take appropriate
measures, individually or through the Orgaiiiza-
tion or in botlh ways, to prevent business
practices affectinlg international trade (whetlher
engaged in by private or public commercial
enterprises) which restrain competition, liuit
access to markets, or foster nionopolistic
control, whenever such practices have hlarniful
effects on the expansion of production or trade
and interfere with the achievenient of any of
the other objectives set forth in Article I.
: \Vithout limiting the generalitv' of para-
grapli i of this Article, and in order that the
Organization i may decide in a particular
instance wvheither certain practices have or
are about to halve anv of the effects described
in paragraph i of this Article, the Menmbers
agree that complaints regarding any of tlhe
practices listed in pnragraplh 3 of this Article
shall be subject to investigation in accordance
with the procedure regarding complaints pro-
vicled in Articles 45 and 47, whenever
(a) such a complaint is presented co 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 arrange-
ment between commercial enterprises,
whether bet\veen private commercial
enterprises, betwIeen public commercial
enterprises, or between private arnd
public commercial enterprises; and
(c) such commercial enterprises, individually
or collectively, possess effective-control
of trade between two or more countries
in one or more products.
3. The practices referred to in paragraph 2
of this Article are the following:
(a) fixing prices or terms, or conditions to
be observed in dealing xvith third parties,
in the purchase, sale or lease of any
product;
(b) excluding enterprises from any territorial
market or field of business activity,
allocating or dividing any territorial
market or field of business activity,
allocating customers, or fixing sales
quotas or purchase quotas;
(c) discriminating against particular enter-
prises;
(i) limiting production or fixing.production
quotas;
(e) l)reventing by agreement the develop-
ment or application of teclinology or
invention ulwether pateiited or uinlaten-
ted;
(J) extending the use of riglits under
patents, trade marks or copyriglits
granted by any Mirluriber, to matters
whicli are cletermined by its systein of
law not to be withlin the scope of snch
grants, or to prouLlcts or conditions of
production, uise or sale which are simi-
larly determined not to be the subjects
of suclb grants;
(g) any si-nilar practices \vhicli the Organiza-
tion niav fron tMlle to timn. decide are
restrictive business practices.
4. In this Chapter the terni public coniîner-
cial enterprises'- reans
(a) trading agencies of governments, and
(b) enterprises rnainly or wlholly 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 tlhis
Article.
The term "private commercial enterprises'
means all other commercial enterprises.
Article 45.
Procedure wit/h respect to investigations und
Consultations.
i. The Organization shall arrange, if it
considers such action to be justified on the
basis of information submitted by the Miembers
concerned, for particular MAembers to take
part in a consultation requested by any affected
Member which coinsiders that in any particular
instance a practice exists (whether engaged in
by private or public commercial enterprises)
xvhich has or is about to have the effect de-
scribed in paragrapli i of Article 44.
2. A complaint may be presented in writing
to the Organization by any affected Member
Article 44.
The Norwegian Delegation reserved its final position. - 39 -
on its own behalf or by any Member on behalf
of any affected person, enterprise or organiza-
tion within that Member's jurisdiction; Prom.-
ded that in the case of a complaint against a
single public commercial. enterprise acting
independently, stcli complaint mnay be pri-esen-
ted only by a Menmiber on its owil behalf ancd
only after the Meinber lias resorted to th2e pro-
ceclure Utnder paragrapli i of tuis Article.
3. l'he Organization shall prescribe the
minimum information to be iiicluded in coin-
plaints tLat particular practices exist whcicI
have or are about to have l.ie effect described
in paragraph i of Article 44. 'Tlle information
shall. give substantial indication of the nature
anc hlarmIfll effects of the practices.
4. 'Th ie Organiization shall consider each
CoMplai nt present ted in accordance witih para-
gra.pAi 2 of this Article. If the OrgarnizaLtioin
dlteims it appropriate it salill request Memlbers
concerned to furnish supplementary infornia-
tion, for example, in format ion from comninircial.
entreprises within their j jurisdiction. After
reviewing the relevant information the Orga-
nization shall decide whether an investigation
is justified.
5. If the Organization decides that an inves-
tigation is justified, it shall notify all Mileinbers
of the conmplairit, request any Memnber to fur-
nish. such additional information relevant to
the complaint as the Organization may deeni
necessary, and shall. condLuct or aranage for
hearings on the complaint. Any Membur, and
any person, enterprise or organizations on
whose behalf the coniplaint bas been made, as
well as the commercial enterprises alleged to
have engaged iii the practice complained of,
shail be afforded reasonable opportunity to be
heard.
6. The Organization shall review ail informa-
tion available and decide whether the practices
in question have had, have or are about to have
the effect described in paragraph i of Article 44.
7. The Organization shall notify ail Members
of its decision and the reasons therefor.
8. If the Organization. decides that in any
particular case the practices complained of
have had, have or are about to have the effect
described in paragraph i of Article 44, it shall
request each Member concerned to take ever,
possible remedial action, and may also re-
commend to the Members concerned remedial
measures to be carried out in accordance with
their respective laws and procedures.
9. The Organization may request any Mem-
ber concerned to report fully on the remedial
action it has taken in any particular case.
IO. As soon as possible after its proceedings
in respect of any ComplI)].Lilnt under this Article
have been provisionally or finally closecl, the
Organiz.Ltioll shall. prepare and publisli a report
shoviîig fully the decisions reaclecd, t le reasons
therefore ailll any meaSLires recoiiîii-iieded to
the Nleniiber-s concerned. 'J'le Organization
slilha not, if a MeImber so rc quests, disclose
confidential information furîîishled by that
Mlenîber whicichî if disclosed woiild substantially
claniage the legitimate business int, rests of a
conrllîercial. enterprise.
ir. "'bu Organization shall report to ail
Mlellll)eibs ancd inake public t he renmedial action
wluici has been taken by the Mlembers concerned
In azy ptrticULlar case.
Article 46.
Studies rela/img to Restrictive Basin ess
Practices.
i. The Organization is authorized
(a) to conduct studies, either on its own.
initiative or at the request of any
1Member or of any organ of the United
Nations or of any other inter-govern-
mental organization relating to
(i) general aspects of restrictive busi-
ness practices affecting interna-
tional trade; and
(ii) conventions, laws and procedures
concerning, for example, incor-
poration, company registration, in-
vestrnents, securities, prices, mark-
ets, fair trade practices, trade marks,
copyrights, patents and the ex-
change and development of tech-
nology, insofar as they are relevant
to restrictive business practices
affecting international trade; and
(iii) the registration of restrictive busi-
ness agreements and other arrange-
ments affecting international trade;
and
(b) to request information from i\Jembers
in connection with such studies.
2. The Organization is authorized
(a) to make recommendations to Members
concerning such conventions, laws 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. -4o-
Article 47.
Obligations of Members.
i. Each Mernber shall take ahi possible
measures by legislation or otherwvise to ensure,
within its jurisdiction, t bat private andi public
commercial enterlprises dco not engage -ii
practices which. have the effect described in
paragraph i of Article ..4, ancl in addition it
shall assist the Organization in preventing these
practices, such assistance to bc given in
accordance with the Memnber's system of law
and economic organisation.
2. Each Member shall make adequate ar-
rangements for presenting complaints, con-
ducting investigations, and preparing informa-
tion and reports requested by the Organization.
3. Each Member shall furnish to the Or-
ganization, as proiriptly and as fully as possible,
such information as is requested by the Or-
ganization for its consideration and investi-
gation of complaints and for its conduct of
studies under tihis Chapter; Providecd that any
Member on notification to tue Organization,
may wvithold infornmatijn which the Meinber
considers is not essential to the Organization
in conducting an adequate investigation and
which, if disclosed, would substantially damage
the legitimate business interests of a commer-
cial enterprise. In notifying the Organization
that it is withholding information pursuant
to this clause, the Mlember shall indicate the
general character of the information withheld,
and the reasons xvhy it considers it not essential.
4. Each Meember shall take full account of
each request, decision and recommendation of
the Organization under Article 45 and, in
accordance with its systern of lawv 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 wvith other
Members, to comply witli requests and carry
out recommendations of the Organization, and,
wvhen no action has been taken, inform the
Organization of the reasons therefor and discuss
the matter further with the Organization if
requested to do so.
o. Each Member shall, at the request of the
Organization, take part in consultations and
conferences provided for in this Chapter wvith
a view to reaching mutually satisfactory
conclusions.
Article 50.
The Norwegian Delegation reserved its final position,
in vie.v of the fact that the Intergovernmental Mlaritime
Consultative Commission would have a meeting in
Article 48.
Sut'ppleknentary Enjorcemient A rrangemiens.
i. Members may co-operate wvith acad other
in prohibitive, preventive or other ineasures
for the purpose of mak-iing more effective any
remedial order issued by a duly authorized
agency of any ïMerrnber in furtiherance of tlhe
objectives of this Chapter.
2. Members participating in or inteilding te
participaLte in such co-operative action shall
notify the OrgaLniz;ltioii.
Article 49.
I)omestic leasusres against Restrictive BJusiness
Practices.
No act or omission to act on the part of the
Organiizatiol slhall preclucde any MeInber from
enforcing any national statute< or decree directed
towards I)revent,.ng monopoly or restraint of
t rade.
Article 50.
Procedulre Wvilli respect tu Services.
i. The Members recogniize that certain
services, such as transportation, telecommru-
nications, insurance and bank-ing, are sub-
stantial elements of international trade, and
that any restrictive business practices in rela-
tion to them may havc harmful effects similar
to those described in -paragraph i of Article 44.
Sucli practices shall be dealt wvith in accordance
xvith the followving paragraplhs of this Article.
2. If any Member considers that there exist
restrictive business practices in relation to a
service referred to in paragraplh i of this Article
which have or are about to have sucli harmful
effects, and that its interests are thereby
seriously prejudiced, the Melmber may submit
a written statement explaining the situation
to the Member or Mlembers the private or public
enterprises of which are engaged in the services
in question. The MIember or Miembers con-
cerned shall give sympathetic consideration to
the statement and to such proposals as xïiay be
made with a view tia affording adecquate
opportunities for consultation, witli a viewv to
effecting a satisfactory adjustment.
3. If no adjustment can bc effected in
accordance with the provisions of paragraphs 2
of this Article, and if the inatter is referred to the
N'oveznber 1947. and orily alter ti:e results of that mecetiiig
Nwere kîî1own would it bu posbiblet for the Norwvegian
Gov erninent to define its ilual attitude to this Article.
The Frencli Delegation adthr:e to the reservation of the
.NorNvegiaii Delegation. - 4I --
Organization, it shall be transferred to the
appropriate inter-governmental organization if
one exists, wVith such observations as the
Organization inay wisli to make. If n1o sucl
iiiter-governimental organization exists, lIem-
bers may ask tile Organization, under Article
69 (c). to rnakc recommendations for, and
proinote international agreement on, ineasures
designed to remedy the particular situation so
far as it comes withiii the scope of this Charter.
4. The Organization shall, in accordance with
paragraph 2 of ArLielc 84,. co-operate Nvith
inter-government-al organizations in connection
with restrictive business practices a ffecting
anv field corning within the scope of this Charter
andi those organizations shall be entitled to
consult the Organization, to seek advice, anid
to ask that a stucly of a particular problem
be made.
Article 51.
Exce!ptions Io t/te Provisions of titis C/ha tlr.
i. The obligations in this Chapter shall ilot
apply to:
(a) inter-governirnental comnlodity agree-
ments meeting the reqluirenments of
Chapter VI; and
(b) any bilateral inter-governinental agrue-
ment relating to the puîrclîase or sa1le ol
a comnnodity falling under Section 1) of
Chapter IV.
2. Notwithstanding paragraph. I of this
Article, the Organization mnay mrake recoin-
inenldations to Members ancd to appropriate
inter-goveriuriental organizations concernoinb
any features of the agreements referred to in
paragrapli I (b) of this Article which may have
the effect described in paragraph i- of Article 44. - 42
CHAPTER VI
INTER-GOVERNMENTAL COMMODITY AGREEMENTS
SECTION A. - INTRODUCTORY CONSIDERATIO.-S
Article 52.
Difficulties relating to Primary Commodities.
The Members recogiiize that tlhe conditions
under xvwich some primary coînmnodities are
produced, exclianged andcl consuined are such
tlhat international trade in these coniinodities
rnaY be affected by special difficultiess such as
the tendency towvards persistent disequtIil ibriumn
between production and consuinptiori, the
accumulation of 1)urdenslloe stocks and pro-
nouniced fluctuations in prices. IThese special
difficulties may have serious adverse effects o)ni
the interests of producers and consumers, as
well as wviclespread reperçussiolîs jeol)ardisîng
the genieail policy of ecollorlic eXlpansioi. u'lic
\Iemebers reco-nize thlat snicli difticullties rnay,
at times, necessitate slpecil tratînient of the
international trade in sucli coinniodities througtî
inter-Povernmental ugr cement.
Article 53.
Priniarv and R!ieltced Coni ni od1ities.
i. For the purposes of this Chapter, the term
primary commodity" rleans any product of
farin, forest or fishery or any nmii:ral, in its
natural form or which has undergone such
processing as is customarily ret'qired' to prepare
it for inarketing in substantial voluime in inter-
national trade.
2. The term shall also cover a group of com-
modities, of which one is a primary commodity
as defined irn paragraph i of this Article and
the others are commodities (whîethler primary
or non-primary) which are so closely related, as
regards conditions of production or utilisation,
to the other commodities in the group, that it
is appropriate to deal with them in a single
agreement.
3. I f, in exceptional circumstances, the
Organization finds that the conditions set forth
in Article 59 exist in the case of a commodity
which does not fall precisely under paragraphs i
or 2 of this Article, the Organization maY decide
that the provisions of this Chapter, together
with any other requirements it nmay establisli,
sliall apply to inter-governrmental agreements
regarding that comnmodity.
Article 54.
O bjectiijes of Inter- goveriinien z1ta Co-n uniodity
.-I agreements.
Tule iMemnbers recognize thîat inter-govern-
mental commodity agreements inay )C eim-
ployed to achieve tlhe following objectives:
(a)
tn prevent or alleviate the serious
economic diwtictties which inav alise
wvlien adjIlstlllel.s betvetn production
and consumption cannot be. effected by
normal inarket forces alone as rapidly
as the cilirclstances require;
(b) to provide, duriiw' the period which miay
bc necessary. a framewvork for the
considerationl and development of mea-
sures wlîlicl have as their purpose
economic adjustments designed to pro-
mote the expansion of consumption or
a shift of resources ancd man-poxver out
of over-exppaiided industries. intc new
and productive occupations;
(c) to moderate pronounced fluctuations in
the price of a primary commnodity with
a view to achieving a reasonable degree
of stability on a basis of prices fair to
consumers and remunerative to efficient
producers, haviing regard to the desir-
ability of securing long-term equilibrium
betwveen the forces of supply and
demand;
(d) to maintain and develop the natural
resources of the world and protect then
from unnecessary exhaustion;
(c) to provide for the expansion of the
production of a primary commodity
where this can be accomplished with
advantage to consumers and producers;
(j) to assure the equitable distribution of
a primary conmmnodity in short supply.
Article 52.
Reference to the need to adopt -special treatinent of
the international trade in F h commnodities- merely
means that international trad. is the aspect of a partictu-
lar commodity problein directly appropriate for inter-
national trcatnient. Agreement regarding the treatment
of the international trade in a corarmodity might, of
course, involve agreement regarding production or con-
sumption of the commodity.
Article 54.
Inter-governmental coni modity agreements approved
by the Food and Agriculture Organization for thc
distribution of basic. fonds at special prices are permitted
under this draft Charter and are considered to be covered
by paragraph (e). - 43 -
SECTION B. - INTER-GOVERNMSENTAL COMMODITY AGREEMENTS IN GENERAL
Article 55.
Colnrnodity Shidies.
i. Any Member :which is substantially inter-
ested in the production or consumption of, or
trade in, a piarticular primary commodity, and
which considers that international trade in that
comnrinodity is, or is likely to be, affected by
special difficulties, slhall be entitled to ask that
a study of the commodity be made.
2. Unless it decides that a prinî_ face case
lias not beeni cstablishled, the Organiization
sliall promnptly invite eacla Meniber to appoint
representatives to a study group to m;ake a1
study of the commo(lity if the Membncr con-
siders tlhat it is substantially interested in the
production or consumption of, or trade in, the
commodity. Noon-MIemiibers may also be
invited.
3. The study group shall promptly Investi-
bgate the production, cozîsumption and trade
situation in regard to the corninrodity, and shall
report to the participating (Goverimnents and
to the Orgazîizatioii its findings anci its recomn-
niendations as to how best to deal : ithî any
special dilficulties which may exist or may bc
expected to arise. The Organization shall
proinptlv tri'nsmsit to the Muembers these
findings and reconm :ndations.
Article 56.
Coni>nodity Conjerences.
i. On the basis of the recommendations of a
study group, or at the request of Members
whose interest represents a substantial part
of ;vorld production or consumption of, or
trade in, a particular primary commodity, the
Organization shall promptly convene an inter-
governmental conference to discuss measures
designed to meet the special difficulties which
exist or are expected to arise. The Organiza-
tion may also, on its own initiative, call such a
conference on the basis of information agreed
to be adequate by the Members substantially
interested in the production or consumption of,
or trade in, the commodity concerned.
2. Each Meember which considers that it is
substantially interested in the production or
consumption of, or trade in, the commodity
concerned, shall be invited to participate in
such a conference. Non-Members may also
be invited to participate.
Article 57.
General Principles governzing Inter-govermnen/al
Conmrodity Agreements.
i. The Members shail observe the fallowing
principles governing the conclusion and opera-
tion of ail types of inter-goneniriiital commo-
dity agreements:
(a) such agreements sihall be openi to parti-
cipationi initially by anîy M emiber on
terms no less favourableu thazi those
accordce to any otiier country anîd tiiere-
after in accordance witil suciz procc.ldure
and upon such tennis as niay l)e estab-
lislhed in the agrecinenit subject to
approval by the Organization;
(b) non-Memibers may bc iinitecl by the
Orgailization to participaLte in such
agrec:îuzcnts and tia: p)roviJsions of sub-
p)aragraph (a) applying to eixibl)Lrs shall
apply ta any niioi-Mluibiler so iîvit(e(d;
(c) under such agreements there shall be
equitable treatment as betweerl partici-
pating countries and non-participating
iMlenibers, and the treatmnent accorcded
by participating coauitries to noni-par-
ticipating M\iembers shall be no less
favourable thal that accorded to any
non-participating iloi-Mienmbur, due con-
sideration being given in each case to
policies adopted by non-participants in
relation to obligations assuiiied and
a(lvant ages con ferrud under tlie agrece-
menlt;
(di) such agreements shall inclucle provision
'or adequate particip)ation of countries
substantially interested iii the imrporta-
.ion or consuinptioni of the couinnodity as
well as those substantially interested in
its exportation or production;
(e) full publicity shall be given to any inter-
govern mental commodity agreement pro-
posed or concluded, to the statements of
considerations and objectives advanced
by the proposing Members, to the
nature and development of measures
adopted to correct the underlying situa-
tion which gave rise to the agreement
and, periodically, to the operation of the
agreement.
2. The Members, including Mermbers not
parties to a particular commodity agreement,
shall give favourable consideration to any
recommendation made under such agreement
for expanding consumption of the commodity
in question.
Article 58.
Types of Agreenzien/s.
i. For the purposes of this Chapter, there
shall bc recognised two classes of inter-govern-
mental commodity agreements:
(a) commodity control agreements as de-
fined in this Article; and
(b) other inter-governmental commodity
agreements. -- 44-
. Subject to the provisions of paragraph 5
of titis Article, a coinmociity coul rol agreement
is ut inter gorerunnentanl agreetît vdiic1i
(P) the regulations of î,rocldnctioni or the
quantitative control of exports or iin-
i)orts of a priniary coîninodity adtl whicl
lias the purpose or mniglit lhave thc eiect
of rc ducing, or preveîiting an increase
iii, the production of, or trade .in, that
conîtlodlity; or
(b) the regulation of prices.
3. Tlte Organization shall, on the rucquest of
a jMenmber, a study group or a comln-odity
conference, decide whetiter an existing or pro-
posed inter-goveriiiienttal agreement is a coin-
inoditv control agreementt witliii the ineaîiintg
of paragraph 2 of this Article.
4. (a) Commodity control agreements shall
be subject tO all tht provisions of titis (Chapte r.
(b) Other iîiter-governrnental comninodity
agreements shall be sUbject to the provisions of
this Chapter other than those of Section C.
If, however, the ()rgaîtizationl decides that ail
agreement whichi involves the regulation of
production or thu quiantitative control of
exports or imports is not a comrniodity control
agreement within the meaning af paragraph 2
of this Article, it shall prescribe the provisions
af Section C, if any, to whicit titat agreement
shall cotforn.
5. 'l'lie Organization ntay decide that an
existing or propose(d inter-governrnental agree-
uient w'iclt lias tite purpose of securing tite co-
ordi nated expansion of aggregate world pro-
dîîctioît atnd cotsuLntl)tioni af a primary conuino-
diiiy is inot a coaito(litto control agreement efen
though thie agreement contains 1prox'isioia for-
the future application ofi minintum prices.
Flowever, any such agreement shall bcl deemed
to 'e a com-niodity control agrecertent and shall
coitfornit to all the provisions of Section C front
the date on which its miniiumi;in price provisiolas
become operative.
6. ''lite Members utidertale nOt tO enit'.'r into
anty new conimodity control. agr-Cee tit, Lttless
it lhas been' recoanrninilend bv a. conference called
iii accordance with Article 56. If, in an
exceptional case, tliere lias b)etn utireasonable
(lelaV iii tue proceedings of the study group or
of tite coinmodity conference, Menmbers sub-
stalntiaily interested in the, production or
constiimption of, or trade iii, a particular pri-
mary comrindity, may proceed by direct nego-
tiation to the conclusion of an agreement,
provided that it confornis to the other provi-
sions af titis Chapter
SECTION C. -- INTEII-COVERNMNIENTAL CO.NIMODITY CONTRoI, A.GREEENILTST1
Article 59.
Circumstances governing t/he Use of Cwn»modity
Control A agreements.
i. The Meembers agree that commodity con-
trol agreements may be employed only when it
is determined that:
(a) atburdensome surplus of a primary com-
modity lias developed or is expected to
develop, which, in the absence of spe-
cific governmental action, would cause
serious hardship to producers among
whom are smail producers who account
for a substantial portion of the total
outDut, and that these conditions could
not be corrected by normal market
forces in time to prevent such hardship,
because, characteristically in the case of
the primary commodity concerned, a
substantial reduction in price does not
readily lead to a significant increase in
consumption or to a significant decrease
in production; or
(b) widespread unemployment or under-
employinent in connection with a pri-
mary commodity, arising out of diffi-
culties of the kind referred to, in Ar-
ticle 52, hias developed or is expected
to' develop, which, in the absence of
specific governmental action, would not
be corrected bv normal market forces
in time to prevent widespread and undue
hardship to wTaorkers because, character-
istically in the case of the industry con-
cerned, a substantial reduction in price
does not readilv lead to a significant
increase in consumption but to a reduc-
tion of employment, and because areas
in which the commodity is produced in
substantial quantity do not afford alter-
native ermploymenl opportunities for
the work',rs involved.
2. Determinations under this Article shall
be made through the Organization by consulta-
tion and agreement amon- Members substan-
tially interested in the commodity concerned.
Article 60.
A dditional Principles governii'g Commodity
Control Agreernents.
The Members shall observe the following
principles governing the conclusion and opera-
tion of commodity control agreements in addi-
tion to those stated in Article 57:
(a) such agreements shall be designed to
assure the availability of supplies ade-
quate at all times for world demand at
reasonable prices, and, when practicable,
Article 60.
The term 'reasonable" as applying to prices in sub-paragraph (a) is to be interpreted as in Article 54 (c' - 45 -
shlal1 provide Ïor measures designcd to
expand world consumption of the coni-
mcdity;
(b) under such agreencnts, participating
countries which arc largely interested
in imports of the commodity con-
cerned shall, in decisions on substantive
matters, have together a number of
votes equal to that of those largely
interested in obtaining export markets
for the commodity. Any participating
country, which is largely interested in
the commodity but -which does not fall
precisely under either of the above
classes, shall have an appropriate voice
withiri such classes;
(c) such agreements shall make appropriate
provision to afford increasing opportu-
nities for satisfying national consumption
and world market requirements from
sources from xvhich such requirements
can be supplied in the most effective
and economic manner, due regard being
had to the need for preventing serious
economic and social dislocation and to
the position of producing areas suffering
from abnormal disabilities;
(d) participating countries shall formulate
and adopt programmes of internal econo-
mic adjustment believed to be adequate
to ensure as much progress as practicable
within the duration of the agreement
towards sol, tion of the commodity
problem involved.
Article 61.
Administration of Commodity Control
A areeiients.
I. Each commodity control agreement shall
provide for the establishment of a governing
body, herein referred to as a Commodity
Council, which shall operate in conformity Nvith
the provisions of this Article.
2. Each participating country shall be en-
titled to have one representative on the Com-
modity Council. The voting power of the repre-
sentatives shall be determined in such a way as
to conform with the provisions of Article 6o (b).
3. The Organization shall be entitled to
appoint a non-voting representative to each
Commodity Council and may invite any com-
petent inter-governmental organization to nomi-
nate a non-voting representative for àppoint-
ment to a Commodity Council.
4. Each Commodity Council shall appoint a
non-voting chairman who, if the Council so re-
quests, may be nominated by the Organization.
5. The Secretariat of each Commodity Coun-
cil shall be appointed by the Council after con-
sultation with the Organization.,
6. Each Commodity Council shall adopt
appropriate rules of procedure and regulations
Under sub-paragraph (b):
(i) there shall be no more than two groups of countries
within an agreement, and the principle of -equal
voice" in substantive matters shall apply as between
them;
(ii) countries which are large producers and consumers
of the commodity concerned, but which are not
regarding its activities. lhe Organizatiumn niay
at any time require tl-eir aincndinent if it finds
that they are inconsistent with tUe provisions
of this Chapter.
7. E'acll Commodity Counicil sliall make
periodic reports to the Orgarnization on thu
operation of the agreement whicli it administers.
In addition it shall make such special reports
as the Organization may require or as the
Council itself considers to be of value to the
Organization.
S. The expenses cf a Cornmodity Council
shall be borne by the participating countries.
9. When an agreement is terminated, the
Organization shall take charge of the archives
and statistical material of the Commodity
Council.
Article 62.
Initial Terni, Review and Renewal of Commodity
Control A greenients.
i. Commodity control agreements shall be
concluded for a period of not more than five
years. Any renewal of a commodity control
agreement, including agreements referred to
in paragraph i of Article 65, shall be for a
period not exceeding five years. The provisions
of such renewed agreements shall conformn to the
provisions of this Chapter.
2. Periodically, at intervals not greater
than thrce years, the Organization shall pre-
pare and publish a review of the operation of
each agreement in the light of the principles set
forth in this Chapter. Moreover, a commodity
control agreement shall provide that, if the
Organization decides that its operation has
failed substantially to conform to the principles
laid down in this Chapter, participating coun-
tries shall either revise the agreement to con-
form to the principles or terminate it.
3. Commodity control agreements shall in-
clude provisions relating to withdrawal of any
party.
Article 63.
Settlement of Disputes.
Each commodity control agreement shall
provide that:
(a) any question or difference concerning
the interpretation of the provisions of
the agreement or arising out of its ope-
ration shall be discussed originally by
the Commodity Couancil;
(b) if the question or difference cannot be
resolved by the Council in the terms of
the agreement, it shall be referred by
the Council to the Organization, which
shall apply the procedure set forth in
Chapter VIII with appropriate adjust-
ments to cover the case of non-Members.
large exporters or importers, shall have an appro-
priate voice.
lt is recommended that any difference on voting
arrangements which cannot be settled in a commodity
conference should be dealt with in the same manner as
laid dowvn in Article 63 for the settlement of differences
concerning commodity control agreements. - 40 -
SECTION D. - MISCELLANIEOUS PROVISIONS
Article 64.
RlelatLions zeil Ilhtr-b mental Organizations.
With the object of ensuring appropriate co-
operation in maILters relatiii-, to inter-govern-
nwntal coiminodity agreements, any inter-
governmental organization which, is deemed
to be competent by the Organization, such as
the Food anci Agriculture Organization, shall
bc entitled:
(a) to attend any study group or commodity
conference;
(b) to asl; that a study of a primary commo-
dity be made;
(c) to submit to the Organization any
relevant study of a primary commodity,
and, on the basis thereof, to recommend
to the Organization that further study
of the commodity be made or that a
commodity conference be convened.
Article 65.
Obligations of M1,1em bers regarding Existinlg and
Proposed Conznzodily A agreements.
i. Members shall transmit to the Organiza-
tion the full text of each inter-governmeintal
commodity agreement in which they are parti-
cipating at the time they become Members of
the Organization. Members shall also trans-
mit to the Organization appropriate informa-
tion regarding the formulation, provisions aind
operation of such agreements. Members shall
conform with the decisions made by the
Organization regarding their continued partici-
pation in any such inter-governmental commo-
dity agreement which, after review by the
Organization, sha]l have been found to be
inconsistent with the provisions of this Chapter.
2. Members shall transmit to the Organiza-
tion appropriate information regarding any
negotiations in which they are participating
at the time they become Members of the
Organization, for the conclusion of an inter-
governmental commodity agreement. Mem-
bers shall conform with decisions made by the
Organization regarding their continued parti-
cipation in any such negotiations. The Orga-
nization may dispense with the requirements of
a study group or a commodity conference, if it
finds them unnecessary in the light of the
negotiations.
Article 66.
Territorial Application.
For the purposes of this Chapter, the terms
" Member " and " non-Member'" shall mean
respectively a Member and non-Member of
the Organization with its dependent terri-
tories. If a Member or 'ion-Memnber and its
dependent territories formn a group, of which
one or more units are mainly initercstcd in the
export of a comnmlodity and one or more in the
import of the commodity, there may be either
joint representation for all the territories
within the group or, xvhere it is SO desired,
separate representation for the territories main-
ly interested in exportation and separate
representation for the territories mainly inte-
rested in importation.
Article 67.
Exceptions 'o Provisions relating to Inter-
govermeztiental Commodity A g reemstents.
i. The provisions of this Chapter shall not
apply:
(a) to any bilateral inter-governmental
agreement relating to the purchase and
sale of a commodity falling under
Section D of Chaprer IV;
(b) to any inter-governinental commodity
agreement involving no more than one
exporting country and no more than
one importing country, and not covered
by sub-paragraph (a) above; Provided
that if, upon complaint of a non-
participating i\lember, the Organization
finds that the interests of that MViember
are seriously prejudiced by the agree-
ment, the agreement shall become sub-
ject to such provisions of this Chapter
as the Organization may prescribe;
(c) to those provisions of any inter-govern-
mental commodity agreement which
are necessary for the protection of
public morals or of human, animal or
plant life or health; Provided that such
agreements are not used to accomplish
results inconsistent with the objectives
of Chapter V or Chapter VI.
2. The provisions of Articles 55 and 56 and
of Section C of this Chapter shall not apply to
inter-governmental commodicy agreements
found by the Organization to relate solely to
the equitable distribution of commodities in
short supply.
3. The provisions of Section C of this Chapter
shall not apply to commodity control
agreements found by the Organization to
relate solely to the conservation of exhaustible
natural resources. - 47
CHAPTER VIl
THE INTERNATIONAL TRADE ORGANIZATION
SECTION A. - STRUCTURE AND FUINCTIONS
Article 68.
Membership.
I. The original Members of the Organization
shall be those States invited to the United
Nations Conference on Trade and Employment
whose Governments accept this Charter by
............ ... in accordance with paragraph i
of Article 98, or, if this Charter shall not have
entered into force by ............ I94.., those States
whose Governmenits agrce to bring this Charter
iiito force in accordance with the proviso
in paragraph 2 of Article 98.
2. Any other State whose membership has
been approved by the Conference shall become
a Member of the Organization upon its accep-
tance, in accordance with paragraph i of
Article 98 of this Charter, as amended up to the
date of such acceptance.
3. The following separate customs terri-
tories, though not responsible for the formal
conduct of their diplomatic relations, shall be
admitted to the Organization on such terms as
may be determined:
(i) any separate customs territory invited
to the United Nations Conference on
Trade and Employment upon accep-
tance of the Charter on its behalf by the
competent Member in accordance with
paragraph 2 of Article 99;
(ii) any separate customs territory not
invited to the United Nations Confer-
ence on Trade and Employment, pro-
posed by the competent Member having
responsibility for the formal conduct of
its diplomatic relations and which is
autonomous in the conduct of its exter-
nal commercial relations and of the
other matters provided for by this
Charter and whose admission is ap-
proved by the Conference, upon accep-
tance of the Charter on its belialf by
the competent Mlenmber in accordance
; ithi paragrapli 2 of Article 99, or, in
the case of a territory in respect of
which the Charter bas been accepted
under paragraph i of Article 99, upon
its becoming thus autoroionous.
4. Any separate custorns territory adrnitted
to the Organization under paragraph 3 of this
Article whicli is accorded full voting riglits
shall thereupon be a Member of thle Organiza-
tion.
5. The Conference shall determine the condi-
tions upon. whicli rnembersliil) riglits and obli-
gations slia.h be extended to Trust Territories
administered by the Unitcd Nations anld to the
Free Territorv of Trieste.
Article 69.
Fituclioits.
The Organization shall perform the functions
provided for elsewhere in this Charter. In
addition the Organization shal1 have the
following functions:
(a) to collect, analyse and publish infor-
niation relating to international trade,
including information relating to com-
mercial policy, business practices, com-
modity problerns and industrial and
general economic development;
(b) to encourage and facilitate consultation
among Meembers on all questions relating
to the provisions of this Charter;
(c) to undertake studies on, make recom-
mendations for, and promote {nter-
national agreement on, measures de-
signed
(i) to assure just and equitable treat-
ment for foreign nationals and
enterprises;
Article 68.
The Preparatory Committee considered a suggestion
to add to Article 68 provisions regarding the effect of
suspension of, or expulsion from, membership in the
United Nat.-ons upon mrnembership in the Organization.
It was agreed that, in view of the complexity of the
issues involved and the late stage at which the su-gestion
was made, this question should be deferred until the
World Trade Conference by which time governments
would have been able to study it fully.
Paragraph 3.
The Delegation of France found itself able to accept
this paragraph only on the condition that it could not
be applied to Germany, a part of Germany or an Occu-
pation Zone in Germany.
Obviously the rights and obligations of any separate
customs territory of the type referred to in paragraph 3
whlich did not becorne a full Mernber as a result of decisions
taken at the WorJd Tiade Conference and which applies
under paragraph 3 of this Article for admission to the
Organization, will have to be determined by the Confer-
ence of the Organization when the application is made,
and the final draft of the Charter must so provide.
Paraggraph 4.
See second footnote to paragraph 3 of Article 68.
Article 69.
Paragraph (c) (i).
The deletion of the mention of specific classes of such
nationals and enterprises should not be taken as indicat-
ing that these classes are not covered in the above broad
language. Thus such language *vould cover treatment
of, for example, commercial travellers, and foreign
creditors in bankruptcy, insolvency or reorganization. 48 -
(ii) to expand the volume and to
improve the bases of international
trade, including rneasures designed
to facilitate commercial arbitration
and the avoidance of double taxa-
tion; and
(iii) generally to achieve any of tlhc
objectives set forth in Article i;
(d) generally to consult wvith and make
recommendations and, as necessary,
furnish acivice and assistance to Members
regarding any matter relating to the
operation of this Charter, and to take
any other action necessary aind proper
to carry out the provisions of this
Charter;
(e) to co-operate with the United Nations
and inter-governmeiital organizations in
furthering the acliievement of the
economic and social objectives of the
United Nations and the restoration and
maintenance oi interiational peace and
becu rity.
Article 70.
Struchtre.
The Organization shall lhave a Conference,
an Executive B3oard, a Tariff Committee,
Commissions as established under Article 79,
and such other organs as may be required.
There shall also be a Director-General and Staff.
SECTION B. - TriL CONFERENCE
Article 71.
Composition.
I. The Conference shall consist of all the
Members of the Organization.
2. Each Member shall have one representative
in the Conference and may appoint alternates
and advisers to its representative.
3. No representative in the Conference may
represent more than one Member.
Article 72.
Votisg.
Alternative A.
i. Each Member shall have one vote in the
Conference.
2. Except as othenvise provided in this
Charter, decisions of the Conference shall be
taken by a majority of the Members present
and voting.
Alternative B.
i. Each Member shall have in the Conference
the number of votes allocated to it in pursuance
of the provisions of Annex ...1 to this Charter.
2. Except as otherwise provided in this
Charter, decisions of the Conference shall be
taken by a simple majority of the votes cast.
Alternative C.
i. Each Member shall have one vo&e in the
Conference.
2. Except as otherwise proVided in this
Charter, decisions of the Conference shall be
taken by a majority of the Members present
and voting; Provided that, at the instance of
any Member, any decision reached by the
Organization on the matters provided for in
Articles ... 2 shall require corroboration by a
second vote taken by a simple majority of the
votes cast in accordance with the plan of
weighted voting set out in Annex ... 2 to this
Charter.
Article 73.
Sessions, Procedure and Officers.
i. The Conference shall meet in regular
annual sessions and in such special sessions as
may be convoked by the Director-General at
the request of the Executive Board, or of a
majority of the Members.
2. The Conference shall establish rules of
procedure which may include rules appropriate
for the carrying out of its functions during the
intervals between its sessions. It shall
annually elect its President and other officers.
Article 74.
Powers and Dvties.
i. The powers and duties attributed to the
Organization by this Charter and the final
authority to determine the policies of the
Organization shall, subject to the provisions of
Article 8i, be vested in the Conference.
2. The Conference may assign to the
Executive Board the exercise of any power or
the performance of any duty of the Organiza-
tion, except such specific poavers and duties
as are expressly conferred or imposed upon the
Conference or the Tariff Committee by this
Charter.
3. In exceptional circumstances not else-
where provided for in this Charter, the Con-
ference mav wvaive 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
Article 72.
1 See the proposals for wveighted voting given in the
Appendix.
2 The Articles to be mentioned would be determined
by the World Conference.
Article 74.
Paragraph 3.
The Delegation cf Chile reserved its position regarding
the first sentence insofar as it relates to Article I5. - 49 -
Members of the Organization. The Conference
may also by such a vote
(a) define certain categories of exceptional
circumstances to which other voting
requirements shall apply for the waiver
of obligations, and
(b) prescribe such criteria as may be ne-
cessary for the application of this
paragraph.
4. The Conference may prepare or sponsor
agreements wvith respect to any matter %vithin
the scope of the Charter and, by a two-thirds
majority of the votes cast, recommend such
agreements for acceptance. Each Mniember
shall, within a period specified lby the Con-
ference, 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 noti-
fication.
5. The Conference may make reconiniieda-
tions to Mlembers and to initer-gover-nmenital
orgaIiizations regarding any matter pertaiLing
to tile purpose and objectives set forth in
Artclce I.
6. The Conîference shall approve the budget
of the Organization and shlall apportion the
expenditures of tthe Organization ainong the
Members in accordance with a scale of contri-
butions to be fixed from time to time by the
Conference following such principles as may
be applied by the United Nations; Provided
that no Meember shall be required to contribute
more than one-third of the total of such
expenditures Without its consent.
7. The Conference shall determine the scat
of the Organization and shall establish such
branch offices as it may consider desirable.
SECTION C. - TuIE EXECUTIvE BOAR{D
Article 75.
Composition of the Executive Board.
Alternative A.
i. The Executive Board shall, subject to
the provisions of the other paragraphs of this
Article, consist of Members of the Organization
as follows:
(a) Canada, China, France, India, Union of
Soviet Socialist Republics, Unitcd King-
dom, United States of America and
either Belgium and the Netherlands
alternating every three years or the
Customs Union of Belgium, Luxemburg,
and the Netherlands should these States
desire to be represented as a unit;
(b) Three Members elected by the American
Republics not entitled to a seat on the
Board under sub-paragraph (a);
(c) One Member to be elected by each of
the following groups of States if their
members desire to be represented as
a group:
(i) Egypt, Iraq, Lebanon, Saudi Ara-
bia, Syria, Transjordan and the
Yemen;
(ii) Denmark, Finland, Iceland, Norway
and Sweden;
(d) Five Members elected by the remaining
Members; Provided that groups of not
less than four States, having common
interests, and representing a certain
proportion of world trade may be
formed with the approval of the Con-
ference and any such group shall be
entitled to clect one or more Members
to the Board according to the number
of States which comprise it and the pro-
portion of world trade they together
represent.
:2. The Conference shall make regulations
relating to paragraphs i (b), (c) and (d) of this
Article which shall provide for the mode of
election, the conditions under which groups
under paragraph i (d) of this Article may be
formed, the method of reallocating scats where
necessary, and other related matters.
3. The Mnembers elected to the Executive
Board shall norrrilly be elected for terms of
three years. TI.e Conference shall establish
rules with regain d to these terms designed to
ensure a reasonable measure of continuity in
representation on the Board.
4. During the time that any State mentioned
in paragraph i (a) of this Article is not a Mem-
ber of the Organization, the size of the Exe-
cutive Board shall be reduced accordingly.
5. If at any time the number of States
referred to in paragraph i (b) of this Article be
seven or less, those States shall be entitled
to elect only one MIember to the Executive
Board. Should at any time this number be
more than seven but less than fifteen, they
shall be entitled to elect two Members to the
Board.
6. Should at any time the number of States
referred to in paragraph i (d) of this Article be
(a) four or more but less than seven,
(b) seven or more but less than fifteen,
(c) fifteen or more but less than twenty-one,
Paragraph 6.
The Delegation of Canada reserved its position on the
proviso.
Article 75.
Paragraph i (a).
If the Customs Union of Belgium, Luxemburg and the
Netherlands as succh should not desire to appoint a
representative on the Board, Luxemburg would fall
under paragraph i (d) of this Article.
The Preparatory Committee wvas not able to examine
fully the conception of giving membership in the lBoard
to customs unions. This matter should be considered
more thoroughly by the World Conference. - 50 -
(d) twenty-one or more but less than
twventy-eight,
those States shall bc cnltitled to elect one, two,
three or four Memnbers to the Board respectively.
7. The number of Memlbers on the Executive
Board may, upon a reconniiendation of the
Board, be increased by the Conference by a
two-tlhirds majority of the votes cast.
8. Notwithstanding the provisions of Ar-
ticle 95, any amendment of this Article relating
to paragraph i (a) or to the election of Alenbers
to the B3oard under paragraph i (b), (c) and
(d) or involving the rearrangement of groups
established under paragraph i (c) or formed
under paragraph i (ci), shall become effective
upon its approval by the Conference by a
majority of the votes cast.
9. The provisions of this Article shall be
subject to review by the Conferenic(e every
three years.
Alternative B.
i. The Executive Board shall consist of the
representatives of not more than fifteen of
the Members of the Organization, elected by
the Conference by the affirmative vote of
two-thirds of those present and voting. Seven
of the Members may be immediately re-élected
on the expiration of the term for xvhich they
have been elected.
2. Tlhe number of Members on the Executive
Board may, upon a recommendation of the
Board, be increased by *the Conference by
a twvo-thirds majority of the Members present
and voting.
3. The Members elected to the Executive
Board shall normally be elected for terms of
three years. The Conference shall establish
rules with regard to these terms designed to
ensure a reasonable measure of continuity in
representation on the Board.
Alternative C.
i. Subject to the provisions of paragraph 6
of this Article, the Executive Board shall
consist of seventeen Members of the Organiza-
tion.
2. The eight States of chief economic im-
portance, as determined by the Conference at
intervals of three years by a two-thirds majo-
rity of Members present and voting, shall be
entitled to membership of the Board.
3. The other Members shall be elected to
the Board by a two-thirds vote of the Confer-
ence.
4. Subject to paragraph 5 one-third of the
Members referred to in paragraph 3 shall be
elected each year for a term of three years.
A retiring Melnber shall be eligible for imme-
cdiate re-election.
5. At the first election:
(ai) Canada, China, France, India, United
KingdonI, United States, Union of Soviet
Socialist Republics -manl the Custoilis Union of
.Beigiiuni, Luxernburg and the Netherlands,
should tue States rnernbers of tlhat CustoIns
Union clesire to be repiresuiited as a unit, shall
be appointed under paragraph 2;
(b) Nine other MIeiurs shall be elected,
of wvlhich the terms of office of three shall exl)ire
at the end oi one vear and of three other
Members at the end of two years.
6. (ai) During the tinie that any State men-
tioned in paragraph 2 of this Article is not a
Member of the Organization the size of the
Board shall be reduced accordingly.
(b) During any time that the number of
Mecmbei of the Organization is less than
twenty-eight the numbers six, two and two
shall be substituted for the number nine, threc
and three respectively in paragraph 5 (b) of
this Article.
7. T'he Conference shall make regulations
which shall apply the provisions of paragraph
5 (b) at any time when the number of Members
on the Board is varied under paragraph 6 (b) of
this Article.
Article 76.
Volizng.
i. Each member of the Executive Board
shall have one vote.
2. Decisions of the Executive Board shall be
made by a majority of the votes cast.
Article 77.
Sessions, Proceditre and Officers.
i. The Executive Board shall adopt its own
rules of procedure, including rules concerning
the convening of its sessions. The rules of
procedure shall be subject to confirmation by
the Conference.
2. The Executive Board shall annually elect
its Chairman and other officers, who shall be
eligible for re-election.
3. The Chairman of the Executive Board
shall be entitled ex officio to participate, wvith-
out the right to vote, in the deliberations of
the Conference.
4. Any Member of the Organization which
is not on the Executive Board, shall be invited
to participate in the discussion by the Board
of any matter of particular and substantial
concern to that Member, and shail, for the
purpose of such discussion, have all the rights
of Members on the Board, except the right to
vote.
Sub-paragraph 5 (a).
See the second note to paragraph i of Alternative A. -- 51 -
Article 78.
Powers and Duties.
of the Cormimissions andi shalll take suclh action
upon tlheir recoînimenidatioiis as it may decini
appropriate. It shall prepare the provisional
encl.ui r) the Cnnferi-nci.~
i. The Executive Board shall be responsible---
for the executioni of the policies of the Orga- 2. lh'e Executive Board may
nization and shall exercise the powers and mezîdations to the Conference,
perform the duties assigiied to it by thC goverîiîiiental organizations, on
Conference. It shall supervise the activities within the scope of this Charter.
make recoin-
or to inter-
any subject
SECTIoN D. - TijE Co.Ni.îssioNs
Article 79.
Establishment and Fu(nctions.
The Conference shall establisli sulch Com-
missions as may be required for the performance
of the functions of the Organization in accord-
ance Nvith the provisions of this Charter. Tlhe
Commissions shall have such functions as the
Conference may decide. Commissions shall
report to the J.Executive Board and shall perforni
such tasks as the Board may assign to them.
The Commissions shall consult each other as
necessary for the exercise of their functions.
Article 80.
Composition aizd Proceditre.
i. Except as otherwvise decided by thle
Conference, Commissions shall be composed of
persons chosen by the Executive Board. flie
persons so chosen shail be qualifiec by training
or experience to carry out the functions of the
Commissions.
2. The number of members, which shall not
exceed seven, of each Commission and the
conditions of their service sha11 be determined
in accordance with regulations prescribed by
the Conference.
3. Eaclh Commission shahl elect its Chairman,
and shall adopt rules of procedure wvhichî shall
be subject to approval by the Executive Board.
4. The rmies of procedure of the Conference
and of the Executive Board shall provide as
appropriate for the participation in their
deliberations, without the right to vote, of the
chairmen of Commissions.
5. The Organization shall arrange for repre-
sentatives of inter-governmental organizations
considered by the Organization to have a special
competence in the fielk of activity of any of the
Commissions, to participate in the work of such
Commissions.
SECTION E. - THE TARIFF COMMITrEE
Article 81.
The TarifJ Coirnmiltee.
i. There shall be a Tariff Committee which
shall act on behalf of the Organization in
initiating the negotiations provided for under
paragraph i of Article I7 and in the making
of recommendations and determinations pur-
suant to paragraph 2 of Article I7.
2. The Tariff Committee shall consist of
those contracting parties to the General Agree-
ment on Tariffs and Trade referred to in para-
graph1 i (d) of Article I7 which are Members
of the Organization.
3. [Provisions relating to .he voting power
of each rnember].
4. [Provisions relating to the majority of
votes required for decisions of the Committee].
5. The Committee shall
of procedure, including
election of its officers.
adopt its own rules
provision for the
SECTION F. - THiE DIRECTOR-GENERAL AND STAFF
Article 82.
The Director- Geizeral.
i. The chief administrative officer of the
Organization shall be the Director-General. He
shall be appointed by the Conference upon the
recommendation of the Executive Board. The
powers, duties, conditions and term of office
of the Director-General shall conform to
regulations approved by the Conference. He
shall be subject to the general supervision of the
Executive Board.
2. The Director-Generai or his repres ntative
shall be entitled to participate, without the
right to vote, in all meetings of the various
organs of the Organization.
3. The Director-General shall present to the
Conference an annual report on the work of the
Organization and the annual budget estimates
and the financial statements of the Organization.
Article 83.
The Staff.
i. The Director-General shall have authority
to appoint Deputy Directors-General in ac-
cordance with regulations approved by the
Conference. The Director-General sha11 also
appoint such further members of the Staff as
may be required and shall fix the duties and
conditions of service of the Staff, in accordance
with regulations approved by the Conference. -- 52 --
2. Tihte paraniotin t consi(leration in the
selection of the Staff anu i the determinution
of its conditions of service shall be the necessity
of socuriug thie hiîluest standards cuf deficiency,
conipetence anc inîtogrity, die regard buiiug
paid to the importance of recruitinent on as wvidu
a geographical basis as possible.
3. flue conditions of service, suici as tho
provisions governing CIuialilIca tionls, salary,
tenure and retirement of rnenbers of the Staff
shall be fixed, so far as practicable, 1n conforniity
wVithl those for rinenibers of the Secretariat of
tie Unîited Nations ancd of other specialised
agencies.
SECTION G. - OTIîi1 1 ORGA;.xN'IZAIONAL PROVISIONS
Article 84.
1ùl'lations wc'i/h ot/lher Organiz/ivus.
i. The Orgainization shalll bu brouglit into
relationshlip *vith the United Niations as soon
as practicable as one of thict specialized agencies
referred to in Article 57 of the Charter of the
United Nations. This relationship shall be
effected by agreement to be approved by the
Conference. Any such agreement shall provide
for effective co-operation and the avoidance of
unnecessary duplication in the activities of the
respective organizations.
2. The Orrganization shall make arrangements
with other inter-goverimrental organizations
which have related responsibilities, to provide
for effective co-operation and the avoidance of
unnecessary duplication in the activities of the
organizations. The Organizationi may for. this
purpose arrange for joint committees, reciprocal
representation at meetings and establish such
other working relationships as niay be necessary.
3. The Organization may make suitable
arrangements for consultation and co-operation
wvith non-governmental organizations concerned
with matters within the scope of this Charter.
4. \Whenever the Conference and the com-
petent authorities of any other inter-govern-
mental organization whose purposes and func-
tions lie xvithin the scope of this Charter, deem
it desirable
(a) to incorporate such other'inter-govern-
mental organization into the Organiza-
ation, or
(b) to effect a transfer of all or a part only
of its functions and resources to the
Organization, or
(c) to bring it under the supervision or
authority of the Organization,
the Director-General, subject to the approval
of the Conference, may enter into an appropriate
agreement. Members shall, in conformity with
their international obligations, take the action
necessary to give effect to any such agreement.
Article 85.
Internatioanal Responsibilities of the Director-
Genzeral, Staff and Memzbers of Commissioans.
i. The responsibilities of the Director-General
and of the Staff shall be exclusively interna-
tional in character. In the discharge of their
duties they shall not seek or receive instructions
from any government, or from any authority
external to the Organization. They shall
refrain frorn any action which iight prejudice
t1ieir position as international officials.
2. 'l'lie provisions of paragraphl i of this
Article shall also apply to members of the
Commissions provided for in Section D of this
Chapter.
3. T'l'e Memnibers shlla respect the inter-
national character of tue responsibilities of
t)lese persons and shall not seek to influence
them in the discharge of their duties.
Article 86.
International Lcgal Status of the Organiza/ion.
Th'le Organizationi shall have legal personality
and shali enjoy sucli legal capacity as may
be necessary for the exercise of its functions.
Article 87.
Status of the Organization int the Territory
of liem bers.
i. The Organization shall enjoy in the
territory of each of its Mernbers such legal
capacity, privileges and immunities as may be
necessary for the exercise of its functions.
2. Representatives of the Meembers of the
Organization and its officials shall similarly
enjoy such privileges and immunities as may
be necessary for the independent exercise of
their functions in connection with the Or-
ganization.
3. Such legal capacity, privileges and im-
munities shall be more particularly defined in
an agreement to be prepared in consultation
with the Secretary-General of the United
Nations and concluded between the Members
and the Organization.
Article 88.
Contributions.
Each Member shall contribute promptly
to the Organization its share of the expenditures
of the Organization as apportioned by the
Conference. A Member which is in arrears in
the payment of its financial contributions to the
Organization shall have no vote in the organs
of the Organization if the amount of its arréars
equals or exceeds the amount of the contri-
butions due from it for the preceding two full
years. The Conference may, nevertheless,
permit such a Member to vote, if it is satisfied
that the failure to pay is due to conditions
beyond the control of the Member. - 53 -
CHAPTER VIII
SEITTLEMENT O0 D1?I1FFE RENCE]S - IN'RPRETIll r 1AT1ON
Article 89.
Consulic.l!ion beI'ecn A.flen bers.
If any Meember should consider that any
benefit accruing to it directly or indirectly under
this Charter is being nulliliecd or impaired, or
that the attainnieiit of any of the objectives
set forth in Article i is being iillpedceci, as a
result of
(a) the failure of another Member to carry
out its obligations under this Charter, or
(b) the application by another Mlember of
any measure, whether or not i. conflicts
wvith the provisions of this Charter, or
(c) the existence of any other situation,
the Miember may, with a view to the satisfac-
tory adjustment of the matter, make written
representations or proposals to the other
Member or Members which it considers to be
concerned. Any Member thus approacheci
shall give sympathetic consideration to the
representations or proposals made to it. In
any such case. the -Members concerned shall
keep the Director-General informed generally
of any discussions undertaken.
Article 90.
Reference to the Organization.
i. If the matter is not satisfactorily adjusted
within a reasonable time or if it falls within
Article 89 (c), it may bc referred to the Exe-
cutive Board or, with the approval of the
Executive Board, directly to the Conference.
The Executive Board or the Conference, as the
case may be, shall promptly investigate any
matter so referred and shah make recom-
mendations to the Members which it considers
to be concerned or give a ruling on the matter,
as appropriate. It may in the course of such
investigation consult with Members, the Com-
missions of the Organization, the Economic
and Social Council of the United Nations and
any inter-governmental organization, in cases
where it considers such consultation necessary.
2. The Executive Board may refer the matter,
with the consent of the Members concerned,
to arbitration upon sucli terns as may be
agreeci betIvecii the Boiard aîd sticli Members.
3. Any ruling of the Execiutive Board shall
bu rcviu\\wed by the Cozîference at the request
of any interested iIembebr. Upon such1 request
the Coonfei-e!ice shall by resolution confirni or
modify or reverse such ruling.
4. If the Conference considers that the cir-
cuinistanccs are serious enough to justify such
action, it may authorize a Meinber or Meinbers
to suspend the application to any other Mem-
ber or Mernbers of such obligations or conces-
sions under or pursuant to this Charter as the
Conference determinres to bc appropriate. If
the application to any MIember of any obliga-
tion or concession is in fact suspended, that
Meunber shall then be froc, not later thani sixty
davs after such action is taken, to advise the
Director-General in writing of its intention to
withdraw froin the Organization and suclh
withdrawal shall take effect upon the expira-
tion of sixty days from the day on *vhich
written notice of such withdrawal is received
by the Director-General. -
Article 91.
Reference to (he Internalional Court of Justice.
i. The Conference or the Executive Board
may, in accordance wvith 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 of the Conference under
paragraph 3 of Article 90 or decision of the
Conference under any other Article of this
Charter shall be subject to review by the
International Court of Justice through the
means of a request by the Organization for
an advisory opinion pursuant to the Statute
of the International Court of Justice. The
request for review of such resolution or decision
shall be made by the Organization, in appro-
priate fornm, upon the instance of any sub-
stantially interested Member.
Chapter VIII.
The Preparacory Committee points out that a limited
time has been devoted to the study of the means of
providing for interpretation of the Charter and for the
settlement of differences among eIembers and between
Members and the Organization. Therefore the Prepara-
tory Committee recomraends that this subject should
receive eariy and full re-examnination by the WA'oild Trade
Conference and the drafts contained in this Report have
been prepared on the assumption that this course will be
foUowed.
Article 90.
Paragraph 2.
The Delcgation of the United Kingdom reserved its
position on this paragraph.
Article 91.
Paragraph 2.
The Delegation of Australia reserved its position on this
paragraph . - 54 -
3. The request for an advisory opinion shall
bc accompanied by a statement, to bc furnished
by the Organizatiorn in consultation wvith the
Members substantially interested, of the facts
underlying the question upon whicli the opinion
of the Court is requested. The Organization
shall supply to the Court such further informa-
tion as the Court niay require.
4. Pending the L'.livery of the opinion of
the Intcrnational Court of Justice, the resolu-
tion or decision of the Conference shall have
full force and effect; Provided that thc Con-
ference shall suspend the operation. of any suchl
resolution or decision penduig the delivery of
the opinion %vherc in the vicw of the Conference
damage difficult to repair would otller\vise bc
caused to a Member concerned.
5. The opinion of the International Court of
Justice upon the questions referred tc it shall
be binding upon the Organization. The resolu-
'.ion or decision in question shall be modified
insofar as it does not accord witlh the opinion
of the International Court of justice.
Article 92.
Aiiscellancous P>rovisions.
I. F"or the purposes of the interpretation
of this Charter under the provisions of this
Chapter, the English and Frerich texts shall
be authoritative.
2. Nothing in this Chapter shall bc construed
to exclucle other procedures provided for in
this Charter for consultation and settlement
of differences arising out of its operation.
3. The Members undertake that they will
not have recourse to any procedure other than
the procedures envisaged in this Charter for
complaints and thie settlement of difficulties
arising out of its operation, nor, without pre-
judice to any other international agreement,
to unilateral sanctions of any kind on the ground
that there lias been a violation of an obligation
of this Charter, in advance of a complaint to
the Organization and a final decision of the
Organization. establishing such violation.
4. The Conference and the Executive Board
shall establish such rules of procedure as may
be necessary to carry out the provisions of
this Chapter. The rules of the Conference
shall include provisions concerning the main-
tenance in force or suspension of any rulings of
the Executive Board pending review by the
Conference under paragraph 3 of Article 90. - 55
CHAPTER IX
GENERAL PROVISIONS
Article 93.
Relations with Non-Members.
Alternative A.
i. Nothing in this Charter shall preclude
any Member from concluding or maintaining
commercial treaties or maintaining econoinic
relations wvith non-Members; Provided tliat no
Member shall seel preferential export or import
duties or taxes or exclusive advantages in its
trade with any non-Miember.
2. If a substantial part of any Member's
foreign trade is xvith non-Members, sucl Memi-
ber shall be entitled to suspend the application
of aiiy of the provisions of this Charter; Pro-
vided that their execution causes or threatens
to cause a serious injury to its legitimatte eco-
nomic interests.
j. Any Member shall afford the Organiza-
tion and directly affected Members an adequate
opportunity to consult with it in respect of
its action and of the best way which would
enable the Member concerned to safeguard its
interests without prejudicing the general pur-
poses and objectives of this Charter and the
legitimate interests of the above-mentioned
Members.
If no adjustment can be effected, the MIember
concerned may withdraw from the Organiza-
tion at any time by written notice addressed to
the Director-General either on its owvn behalf
or on behalf of a territory which is at the time
self-governing in respect of matters provided for
by this Charter, giving reasons therefor. This
withdrawal shall become effective on the date
such notice is received. The Director-General
shall immediately notify all other AMembers.
Alternative B.
* i. No Member shall seek
ferential advantages for its
non-Member.
exclusive or pre-
trade with any
2. Any Member wishing to maintain or enter
into a commercial agreement with a non-
Member which extends or would extend to the
non-Mlember any of the benefits of Chapter IV
of this Charter or any of the tariff reductions
effe,'tcd by the AMember concerned in pursuance
of Article I7 of the Charter shall seek the
approval of the Organization for such. a course;
Provided tlhat no Member shall be required to
terminate any such existing agreement until
it lias received %vritten notification from the
Organization of its decision in respect of that
agreement in accordance %vith the procedures
laid down in this Article.
3. In deciding whether it should grant
approval in respect of the question referred to
in paragraph (2) of this Article, the Organiza-
tion shall have regard to the following consider-
ations:
(a) whether or not the agreement concerned
does or would substantially injure the
interests of other Members;
(b) whether or not the termination of an
existing agreement of this nature would
substantially injure the interests of the
Member concerned;
(c) whether or not the expansion of inter-
national trade and the promotion of the
purposes of the Organization as laid
down in this Charter would be adversely
affected if the agreement were main-
tained or put into effect.
4. A Member may apply to the Organization
at any time for approval of any agreement
which it proposes to conclude with a non-
Member and to which the provisions of para-
graph 2 of this Article apply, but, in the case of
any such agreement which exists at the date
on which this Charter comes into force for
that Member, application for approval under
the provisions of paragraph 2 of this Article
shail.be made within a period of one year from
that date.
5. Within sixty days of its receipt of written
notification of a decision by the Organization
Article 93.
The Preparatory Committee transmits these three
texts to the World Conference, without expressing at this
stage any judgment concerning the merits of one proposa]
as against another, in order to assist the World Confer-
ence in determining. in the light of al] relevant circurm-
stances, the text to be incorporated in the Charter
governing relations with non-MIembers.
Some question wvas raised as to the status of a Member
of the United Nations if it should fail to become a
Member of the Organization and to the status of a country
not eligible for membership in the Organization. The
World Conference may wish to seek expert opinion as to
whether. under these circumstances, any of the drafts
would be in conflict with the obligations of Members of
the United Nations.
In this connection the Preparatory Corcmittee calls
the attention of the World Conference to the definition
of a "non-MIember" in paragraph 7 of Alternative "B"
and to the words -although qualified to do so" in para-
graph 3 of Alternative "C" which would exclude frosn
the scope of all or some of the provisions of the Article
non-Member countries which were not qualified for
Membership. The World Conference may wish to
consider whether these particular passages should be
retained or deleted in the light of the resolution regarding
Spain which the Gencral Assembly adopted on I2 Decem-
ber s946. - 56 -
disapproving any agreement to which the
provisions of paragraph 2 of this Article
apply, a Member either shall inform the Organi-
zation of its acceptance of the decision, in
which case the Member shall take steps to
terimninate-any such existing agreement and shall
not extend or continue to extend to the non-
Member the benefits to Members deriving froin
the negotiations completed in accordance with
Article I7 of this Charter, or, if it is unwilling
to accept the decision of the Organization, may
give notice in writing to the D)irector-General
of its withdrawal from the OrgaLLization, such.
withdrawal. to become effective sixtv days after
such notice is given.
6. Nothing in this Article shah be inter-
preted as overridling anv of the economic
provisions in the treaties of peace between the
Allied and Associated Powers and the States
which were their enemies during the Second
WVorld \Var.
7. For the purposes of this Article, the term
"non-Mlember" shall mcan a country which,
although qualified to become a Member, has
not become a Meember or has Withdrawnr froIn
the Organization.
Alternatizve C.
i. No Member shail seek preferential advan-
tages from any non-Member so as to result,
directly or indirectly, in the application by
such non-Member to any Mernber of measures
which, if applied by a Member, would be in-
consistent with the provisions of this Charter.
2. No Member shall be a party to any agree-
ment or other arrangement with any non-
Mrember under which such non-Member is or
would be contractually entitled to any of the
benefits provided to Members by virtue of
Chapter IV; Provided that, with respect to anv
such existing agreement, the Organization shail
release anv Member from the provisions of this
paragraph if it finds that the effect of termina-
tion of the agreement would be more detrimen-
tal to the interests of Members as a whole than
its continuation.
3. No Member shall, except with the con-
currence of the Organization, extend to the
trade of any other country, which, although
qualified to do so has not become a Member or
has withdrawn from the Organization any of
the reductions in tariffs effected by such
Member pursuant to Article 17, or extend to
such country any reduction in a preferential
tariff rate, even though such reduction would
be permitted under the terms of Articles i6
and I7.
4. The provisions of paragraphs 2 and 3 of
this Article shall become effective for any
Member upon the expiration of one year from
the day on which this Charter enters into force
with respect to such Member; Provided that,
this period may be extended by the Organiza-
tion, in respect of the relations of any Member
with any non-Member, for such further periods
as the Organization mnay prescribe. At any
time before the expiration of any such period,
a Member may request the Organization in
writing for such an extension, in *vhich event
the period wvill bc considered to be extended
until a reply is received froin the Organization.
If the Organizatiotn disapproves the extension
requested, the Miember shlla theli be free, not
later than sixty days from the day on which
notice of such disapproval is receivecl b)v the
Member, to withdraw from the Organiization
effective upon the expiration of sixty days fromt
the date on wvlicli written notice of such with-
drawal is received by the Organization.
5. At the earliest possible date after any
prove; sion of this Charter beconmles effective>
Menibers shall terminate, either by agree-
ment or in accordance with their terms, any
international obligations they may have with
non-Mienibers wvhich would prevent them from
giving full effect to such provision.
6. Nothing in this Article shall be inter-
preted as requiring the withdrawal of any
Member from membership in other inter-
go\erniiental organizations of the type des-
cribed in Article 57 of the Charter of the United
Nations or as overriding any of the economic
provisions in the treaties of peace between the
Allied and Associated Powers and the States
which severe their enemies during the Second
World War.
Article 94.
General Exceptions.
Nothing in this Charter shall be construed
(a) to require any Member to furnish any
information the disclosure of which it
considers contrary to its essential secu-
rity interests, or
(b) to prevent any Member from taking any
action which it considers necessary for
the protection of its essential security
interests
(i) relating to fissionable materials or
the materials from which they are
derived;
(ii) relating to the traffic in arms,
ammunition and implements of war
and to such traffic in other goods
and materials as is carried on direct-
ly or indirectly for the purpose of
supplying a military establishment;
(iii) taken in time of war or other
emergency in international rela-
tions; or
(c) to prevent any Member from taking
any action in pursuance of its obliga-
tions under the United Nations Charter
for the maintenance of international
peace and security. - 57 -
Article 95.
Amendments.
i. Any amendment to this Charter which
does not involve a change in the obligations
assumed by Meembers shall become effective
upon receiving the approval of the Conference
by the affirmative votes of two-thirds of the
Menibers.
2. Any amendment to this Charter which
involves a change in the obligations assumed by
Members shall , after receiving the approval of
the Conference, become effective for each
Member, accepting the amendmnent,- upon
acceptance on the part of two-thirds of the
MIembers and thereafter for each remaining
Member on acceptance by it. The Conference
may at any time determine that any amendment
under this paragraph is of such a nature that
all Members which have not accepted it within
a period specified by the Conference shall be
required to withdraw from the Organization;
Provided that the Conference may, by the
affirmative votes of two-thirds of the Members
present and voting, determine the conditions
under which this requirement shall be waived
with respect to any such, Member. A Member
not accepting an amendment shall be free to
%vithdraw from the Organization upon the,
expiration of six months from the day on
which written notice of such withdrawal is
received by the Director-General.
3. The Conference shall, by the affirmative
votes of two-thirds of the Members, adopt rules
of procedure for carrying out the provisions
of this Article.
Article 96.
Review of the Charter.
The Conference shall convene a special session
for the purpose of reviewing the provisions of
this Charter before the end of the tenth year
after its entry into force.
Article 97.
Withdrawal and Termination.
i. Without prejudice to the provisions of
paragraph 2 of Article 17, paragraph 4 of
Article 90, or paragraph 2 of Article 95, any
Member may withdraw from the Organization
either on its own behalf or on beh?.lf of a sepa-
rate customs territory on behalf of which it has
accepted this Charter in accordance with the
provisions of Article 99 at any time after the
expiration of three years from the day of the
entry into force of this Charter, by written
notice addressed to the Director-General. The
Director-Generai shail immediately notify all
other Members.
2. A withdrawal under paragraph i of this
Article shall take effect upon the expiration of
six nionths from the day on which written
notice of sticli %vithdrawval is received by the
Director-Gerleral.
3. Thiis Charter may be terminated at any
time by ;grrement of threc-fourths of the
NIembers.
Article 98.
Enztry into Force and Reuistration.
i. The Government of each State accepting
this Charter shall deposit an instrument of
accupta-nce with the Secretary-General of the
United Nations, who %vill inforrn all govern-
ments represented at, the United Nations
Conference on T rade and Employment and all
Members of the Unite Nations not so represent-
ed, of the date of deposit of each instrument of
acceptance and of the day on which this Charter
enters into force.
2. This 'Charter shall enter into force on the
sixtieth day following the day on which the
nuinber of governments represented at the
United Nations Conferencé on Trade and
Employment which have deposited instruments
of acceptance pursuant to paragraph i of this
Article shall rcach twenty, and the instrument
of acceptance of each other accepting govern-
ment shall take effect on the sixtieth day
following the day on which it is deposited;
Provided that, if this Charter shall not have
entered into force by ....... I94..., any of the
governments applying the General Agreement
on Tariffs and Trade dated .... . I94...,
together with any othergovernmentsrepresent-
ed at the United Nations Conference on Trade
and Employmnent, may, upon conditions to be
agreed between them, bring this Charter into
force. Any instrument of acceptance deposited
with the Secretary-General of the United
Nations shall be taken as covering both pro-
cedures for bringing this Charter into force,
unless it expressly provides to the contrary or
is wvithdrawvn before the entry into force of this
Charter.
3. The United Nations is authorized to effect
registration of this Charter as soon as it comes
into force.
Article 99.
Territorial Application.
i. Each government accepting this Charter
does so in respect of its metropolitan territory
and of the other territories for which it has
international responsibility; Provided that it
may at the time of acceptance declare that any
separate customs territory for which it has
international responsibility possesses full auton-
omy in the conduct of its external commercial
relations and of the other matters provided for
by this Charter, and that acceptance does not
relate to such territory. - 58 -
2. Each Member may, at any time, accept
this Charter in accordance with paragraph I
of Article 98 on behalf of any separate customs
territory referred to in the proviso of para-
graph i of this Article, which is willing to under-
take the obligations of this Charter.
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 regional and local governments and
authorities within its territory.
Article 100.
Deposit of Tex/s.
The original texts of this Charter in the
official languages 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.
DONE at .... this .day of .
One Thousand Nine Hundred and Forty .......... - 59 -
ANNEXES PERTAINING TO PARAGRAPH 2 OF ARTICLE i6
1 ANNEX A.
LIST OF TERRITORIES REFERRED TO IN PARAGRAPII 2 (a) oi. ARTICLE i6
United Kingdom of Great Brit.in and Northern Ireland.
Dependent territories of the United Kingdom of Great Britain and Northern Ireland.
Canada
Commonwealth of Australia.
Dependent territories of the Commonwealth of Australia.
New Zealand.
Dependent territories of New Zealand.
Union of South Africa including South West Africa.
Ireland.
India (as at Io April I947).
Newfoundland.
Southern Rhodesia.
Burma.
Ceylon.
Certain of the territories listed above have
two or more preferential rates in force for cer-
tain products. Any such territory may, by
agreement with the other Members which are
principal suppliers of such products at the
most-favoured-nation rate, substitute for such
preferential rates a single preferential rate
which shall not on the whole be less favourable
to suppliers at the most-favoured-nation rate
than the preferences in force prior to such sub-
stitliHon.
The imposition of a margin of tariff preference
to replace a margin of preference in an internal
tax existing on io April 1947 exclusively
between two or more of the territories listed in
this Annex or to replace the preferential quan-
titative arrangements described in the following
paragraph shall not be deemed to constitute
an increase in a margin of tariff preference.
The preferential arrangements referred to in
paragraph 5 (b) of Article 2 -re those existing
in the United Kingdom on Io April I947, under
contractual agi -ements with the Governments
of Canada, Australia and New Zealand, in
resDect of chilled and frozen beef and veal,
frozen mutton and lamb, chilled and frozen
pork, and bacon [and hams]. It is the intention,
without prejudice to any action taken under
sub-paragraph (h) of Part I of Article 43, that
these arrangements shall be eliminated or
replaced by tariff preferences, and that nego-
tiations to this end shah take pîace as soon as
practicable among the countries substantially
concerned or involved.
The film hire tax in force in New Zealand on
io April 1947 shall, for the purpose of this
Charter, be treated as a customs duty falling
within Articles I6 and I7. The renters'
film quota in force in New Zealand on Io April
I947, shall for the purposes of this Charter be
treated as a screen quota falling %vithin
Article I9.
The Delegation of Brazil has recorded a reservation on Article 23, paragraph 5 (b). - 60 -
ANNEX B.
LIST OF TERRITORIES OF THE FRENCII UNION REFERRED TO IN PARAGRAPYI 2 (b)
OF ARTICLE I6
France.
French Equatorial Africa (Treaty Basin of the Congo * and other territories).
French West Africa.
Cameroons under French Mandate. *
French Somali Coast and Dependencies.
French Establishments in India. *
French Establishments in Oceania.
French Establishments in the Condominium of the New Hebrides. *
Guadeloupe and Dependencies.
French Guiana.
Indo-China.
Madagascar and Dependencies.
Morocco (French zone). *
Martinique.
New Caledonia and Dependencies.
Reunion.
Saint-Pierre and Miquelon.
Togo under French Mandate. *
Tunisia.
* For imports into Metropolitan France. ANNEX C.
LIST OF TERRITORIES 0F THE CUSTONIS UNION oF BELGIUM,
LUXEMBURG AND THE NETHERLANDS
REFERRED TO IN PARAGRAPH 2 (b) OF ARTICLE i6
The Economic Union of Belgium and Luxemburg.
Belgian Congo.
Ruanda Urundi.
The Netherlands.
Netherlands Indies.
Surinam.
Curaçao.
For imports into the metropolitan territories of the Customs Union.
- 61 - 62 -
ANNEX D. .
LIST OF TERRITORIES OF THE UNITED STATES of AMERICA
REFERRED TO IN PARAGRAPH 2 (b) OF ARTICLE 16
. United States of America (customs territory).
Dependent territories of the United States of America.
Republic of the Philippines.
The imposition of a margin of tariff preference
to replace a margin of preference in an internal
tax existing on io April 1947 exclusively
between two or more of the territories listed
in this Annex, shall not bc deemed to constitute
an increase in a margin of tariff preference. - 63 -
ANNEX E.
LIST OF TERRITORIES COVERED BY PREFERENTIAL ARRANGEMENTS
BETWEEN CHILE AND NEIGHBOURING COUNTRIES
REFERRED TO IN PARAGRAPH 2 (d) OF ARTICLE 16
Preferences in force exclusively between, on the one hand,
Chile
and, on the other hand,
I. Argentina
2. Bolivia
3. Peru,
respectively. - 64 -
ANNEX F.
LIST OF TERRITORIES COVERED BY PREFERENTIAL ARRANGEMENTS
BETWNEEN THE SYRO-LEBANESE CUSTOMS UNION AND NEIGHBOURING COUNTRIES
REFERRED TO IN PARAGRAPH 2 (d) OF ARTICLE 16
Preferences in force exclusively between, on the one hand,
The Syro-Lebanese Customs Union
and, on the other hand,
1. Palestine
2. Transjordan,
respectively. - 65 -
APPENDIX
1. The following formulæ for determining the
number of votes to be allocated to each Member
were proposed, each by one delegation.
Formula A.
(a) I vote for every 10 millions of population.
(b) I vote for every 50 million U.S. dollars
of external trade.
(c) I vote for every 500 million U.S. dollars
of national income.
(d) I vote for every 10% of the percentage
of external trade to national income:.
(e) 100 basic votes.
Formula B.
(a) i vote for every 50 millions U.S. dollars
of foreign trade.
(b) i vote for every 500 million U.S. dollars
of national income.
(c) I vote for very 25 U.S. dollars of foreign
trade per capita.
(d) 10 basic votes.
2. For the purposes of the initial allocation
of votes, the factors (b), (c) and (c) in Formula A
and (a), (b) and (c) in Formula 1' shall be
calculated on the average of the last three
pre-war calendar years in which the Member
was in a position to conduct normal trade and
the full calendar year preceding the entry into
force of the Charter. The succeeding calcula-
tions of these factors to be made at the time
of the periodic review provided fur in para-
graph 9 of Article 75 (using Alternative A of
that Article) shall be based on the average of
the three immediately precediing calendar
years.
3. The delegations who proposed the for-
mulke set out above submitted the following
tables showing the results of their application.
The statistical material used in these tables
was the best available to these delegations at
the Second Session. More accurate material
will be supplied to the World Confererice by
the statistical services of the United Nations.
Table A (using Formula A).
Country
Albania.
Argentina
Australia
Austria.
Belgium and Colonies . .
Bolivia.
Brazil
Bulgaria
Burma.
Canada.
Ceylon.
Chile.
China .
Colombia.
Costa Rica ......
Cuba.
Czechoslovakia .
Denmark.
Dominican Republic . .
Ecuador
Egypt . . .
Ethiopia.
Finland .
France and Colonies . .
Greece.
Guatemala.
Haiti.
Honduras.
Hungary.
Iceland.
India beforee partition)
Iran.
Iraq.
Population
'la test
information
available)
Millions
14
7
7
19
4
45
7
IS
1 2
5
455
1 0
5
I4
4
4
3
'7
6
4
I06
3
3
9
o.I
419
I0
4
External
trade
1937
.zil.lion $
I0
I.239
13090
501
I1,74S
65
677
I24
276
rI,824
205
2S3
535
IS2
23
3I5
Soo
730
30
27
393
n.a.
404
2,306
224
37
I8
20
3I5
n.a.
1,369
'93
75
National
illeozuae
1-)40
Million $
n.a.
2,Soo
3,200
n.a.
2.350
160
2,500
3o5
ii.a.
375
12,000
700
50
420
3,000
I,51 I
n.a.
130
1,400
n.a.
559
1 I,300
I,000
160
130
50
n.a.
n.a.
9,600
n.a.
n.a.
°Ô of trade
to National
income
44
34
74
4I
27
'5
31
55
71
4
26
46
75
27
48
21
28
72
20
22
23
14
40
14
Total
votes
102*
I36
132
I116*
'.49
'05
I26
I07
I 14*
152
I12
115
ISI
I09
105
115
126
123
103*
103
i 6
IOI *
II6
182
109
103
'o0
104
1OI *
I89
108*
104*
Votes as
percentage
of total
Ested §
1.2
1.7
i.6
1 .4
J.8
1.3
1.5
1.3
1 .4
I.9
1 .4
I.4
2.2
1.3
1.3
I.4
I.5
1.5
I.3
I1.3
I .4
1.2
1.4
2.2
1.3
1.3
1.2
1.3
1.3
I.2
2.4
1.3
1-3 - 66 -
Table A (continued).
Country
Population
(latest
Information
available)
Millions
ltaly.
Lebanon
Liberia.
Luxemburg.
Mexico.
Netherlands and Colonies
New Zealand .....
Nicaragua.
Norway .
Panama
Paraguay.
Peru.
Philippines
Poland.
Portugal and Colonies
Roumania .
Salvador
Saudi Arabia.....
Siam ...
Sou thern Rhodesia .
Sweden.
Switzerland.
Syria.
Transjordan . . :
Turkey.
Union of South Africa .
U.S.S.R.
United Kingdom and
Colonies
United States of America.
Uruguay
Venezuela.
Yemen.
Yugoslavia
External
trade
'937
Million S
46 1,299
n.a.
0.3
80
2
I
3
7
1
7
17
24
19
16
2
.4
î6
î.8
4
n.a.
0.5
I9
Il
1 1
193
ioù
142
2
4
3
I6
n.a.
7
n.a.
423
2,284
482
I3
523
26
I7
15I
260
463
187
378
;!6
n.a.
I26
67
1,050
706
n.a.
8
202
684
817
8, 1 15
6,379
100
332
n.a.
263
National income figures are based on those prepared in connection with the calculations for the Monetary Fund
voting system.
* indicates notional figure inserted to complete the illustration.
n.a. = not available.
§ = corresponding percentage on "one-State one-vote" system is 1.5.
Table B (using Formula B).
Formula Column (I) = I vote per 50 million dollars.
Column (2) = I vote per 500 million dollars.
Column (3) = z vote per 25 dollars trade per capita.
Column (4) = 10 votes as basic vote.
Column:
Country
Albania .
Argentina.
Australia.
Austria.
Belgium and Colonies
Bolivia.
Brazil
Bulgaria
Burma.
Canada.
Ceylon.
(1)
Foreign trade
(Av.. 1938 and
latest 12 months
available)
n.a.
26
26
5
37
n.a.
23
n.a.
6
59
5
(2)
National
income
1940
n.a.
6
n.a.
5
5
n.a.
12
(3)
Trade
per
4
7
2
4
I
IO
20
2
(4)
Basic
vote
'o
10
Io
IO
Io
Io
10
IO
Io
Io
(5) (6)
Votes as
Total . percentage of
votes total listed
46
49
56
39
9'
î8
2.6
2.8
3-I
2.2
5.1
1.0
National
ulcuJIie
1940
Million S
4,800
n.a.
n. a.
1,400
3,500
600
50
750
.10
40
450
n.a.
4,000
n.a.
n.a.
So
n.a.
n.a.
150
2 ,900
2,400
ii.a.
n.a.
n.a.
1,000
32,000
26,400
77,800
340
1 20
n.a.
1,500
% 0l trade
to National
income
27
30
O5
80
26
70
65
.43
34
1 2
33
45
36
29
'uS
3
31
S
29
28.
I8
Total
votes
144
100*
0o1 *
103*
1i6
168
119
103
I19
Io8
104
l os
120
I 14*
104
J0 *O
îoS*
io6
132
122
I00*
100*
I24
199
329
399
102
IOO
100*
112
Votes as
percentage
of total
listed §
I.8
1.2
1.2
1.3
1.4
2.0
1 5
1.3
1.5
I,3
1,3
1.3
'.3
1.5
1'4
14
I .3
1.2
1.3
1.3
I.6
1.5
1I.2
I.2
'.4
1.5
2.4
4.0
4-9
1.3
I .3
1.2
1.4 - 67 -
Table B (continued).
Column :
Country
Chile.
China .
Colombia.
Costa Rica ......
Cuba.
Czechoslovakia .
Denmark.
Dominican Republic . .
Ecuador
Egypt .
Ethiopia.
Finland.
France and Colonies . .
Greece.
Guatemala .
Haiti.
Honduras.
Hungary.
Iceland.
India (before partition) .
Iran.
Iraq.
1 taly.
Lebanon
Liberia.
Luxemburg.
Mexico.
Netherlands and Colonies
New Zealand.
Nicaragua.
Norway .
Panama
Paraguay.
Peru.
Philippines.
Poland.
Portugal and Colonies
Roumania .
Salvador, El ......
Saudi Arabia .....
Siam.
Southern Rhodesia. . .
Sweden.
Switzerland.
Syria . . . . . . . . .
Transjordan.
Turkey.
Union of South Africa .
U.S.S.R.
United Kingdom and
Colonies
United States of America
Uruguay.
Venezuela.
Yemen.
Yugoslavia.
n.a. means not available.
(1)
Foreign trade
(Av., 1938 and
latest 12 months
available)
5
22
6
7
7
I
.9
n.a.
n.a.
7S
3
n.a.
n.a.
n.a.
27
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
12
54
IO
§
I2
n.a.
r.a.
4
n.a.
n.a.
7
n.a.
I
n.a.
n.a.
2
2 6
23
n.a.
n.a.
n.a.
I4
n.a.
213
209
5
10
n.a.
n.a.
(2)
National
income
3940
24
6
3
n.a
3
n.a.
23
2
n.a.
n.a.
24
n.a.
n.a.
IO
n.a.
z.a.
n.a.
3
7
2
n.a.
8
n.a.
n.a.
n.a.
n.a.
6
5
n.a.
n.a.
n.a.
2
64
53
156
n.a.
3
(3)
Trade
per
capita
2
8
1
~1
_o
8
2
1
Il
1
1
11
3
5
5
(4)
Basiec
vote
I 0
1 0
10
10
I0
20
10
10
10
I0
10
10
IO
10
I0
Io
Io
Io
10
10
10
10
10
10
10
I0
Io
10
'O
1<'
7 0
If,
10..
I 0
IO0
1 0
1 0
I 0
10
10
I0
1 0
10
I0
Io
10
I 0
10
I0
1 0
1 0
§ means less than 25 million dollars.
(5)
Total
votes
I8
5G
18
12
2 I
29
38
12
23
112
l 2
6i
20
72
31
10
32
I6
1 2
14
50
49
29
280
378
21
25
(6)
Votes as
percentage of
total listed
I.0
3.1
1 .0
0.7
1.2
î.6
2.2
0.7
1.3
6.3
0.9
0.7
o.6
3.4
1.5
4.0
I .7
o.6
1.8
0.9
0.7
o.8
2.8
2.7
i.6
15.7
2 1.2
1.2
1.4
* means less than 250 million dollars. t means less than 12 /2 dollars per capita.
SOURCE:
Column (i): Figures taken from U.N. Monthly Bulletin of Statistics, April and June 1947; League of Nations
Review of World Trade, .938, and Network of World Trade, 1942.
Column (2): Figures taken from. Table A.
Column (3): Figures based upon population data shown in Table A. - 69) -
Part III. -
ENCLOSURES
ENCLOSURE 1
EXTRACTS FROM THE INTERIM REPORT OF THE SECOND SESSION
TO THE FIFTH SESSION OF THE ECONOMIC AND SOCIAL COUNCIL (9 JuIy 1947)
RECOMMENDATIONS OF THE PRE PARATORY COMMITTEE.
1. Annotated Draft Agenda and Convention for
the Conference on Trade and Employment.
The Preparatory Committee adopted the
topics suggested by the Economic and Social
Council in its resolution as the substance of
its agenda for the preparation of the draft
Charter for an International Trade Organiza-
tion. As at present drafted the Charter
includes chapters under the following headings:
Employment and Economic Activity,
Economic Development,
General Commercial Policy,
Restrictive Business Practices,
Inter-governmental Commodity Arrange-
ments,
together with provisions relating to organiza-
tion, membership and other miscellaneous
matters.
The Preparatory Committee recommends
that these headings should be adopted by the
Conference on Trade and Employment as the
substance of its agenda and that the relevant
chapters of the draft Charter should be taken
as the principal working-paper under each
heading. As additional annotations to the
agenda there will also be available the Reports
of the First and Second Sessions of the Prepar-
atory Committee and of the Drafting Commit-
tee. The three Reports will indicate to the
World Conference the development of the dis-
cussions leading to the text of the draft Charter
submitted by the Preparatory Committee.
2. Date and Place of the Conference on Trade
and Employment.
In arriving at a recommendation as to the
date on which the Conference should be con-
vened the Preparatory Committee has been
much impressed with the desirability of holding
the Conference as soon as possible after the
termination of the work of the Preparatory
Committee. It was felt by the Committee
that the impetus achieved in the preparation
for an International Trade Organization should
be maintained, and that any substantial delay
would have the effect of postponing for a con-
siderable period the coming into force of the
Charter and the establishment of the Organi-
zation. On the other hand, the Preparatory
Committee has given consideration to the need
for providing a reasonable interval between
the end of the current session of the Committee
and the convening of the World Conference in
order to provide as much time as possible for
governments which did not participate in the
Preparatory Committee to study the work of
the Second Session. In this connection the
Preparatory Committee bas taken account of
the fact that the full reports of the First Ses-
sion and of the Drafting Committee have been
in the hands of all Members of the United
Nations for many months and that arrange-
ments have been made for such Members to
receive all documents of the Second Session
as its work proceeds.
In all the circumstances the Committee feels
it is undesirable to delay the convening of the
Conference much beyond the middle of No-
vember. Accordingly, the Preparatory Com-
mittee recommends that the Conference should
be convened on 21 November I947. The Pre-
paratory Committee considers that the Con-
ference should be held in a suitable place in the
Western Hemisphere, and therefore recom-
mends, in view of the cordial and generous
invitation extended by the Government of
Cuba, that the Conference be held in Havana,
if practicable.
3. Invitation of non-Members of the United
Nations to thé Conference.
The Preparatory Committee -recommends
that, subject to the resolution regarding Spain
adopted by the General Assembly on I2 De-
cember 1946, those States non-Members of the
United Nations which have an appreciable
interest in world trade should be invited to the
Conference on Trade and Employment. It
therefore recommends that the following States
non-Members should be invited: Albania,
Austria, Bulgaria, Eire, Finland, Hungary,
Italy, Portugal, Roumania, Switzerland, Trans-
jordania and the Yemen. - 70 -
The Preparatory Committee recommends
further that the Economic and Social Council
should male provision for the attendance of
persons qualified to represent the appropriate
authorities in Germany, Japan and Korea.
The Preparatory Committee, having in mind
specifically the position of the Governments of
Burma, Ceylon and Southern Rhodesia, wishes
to draw the attention of the Economic and
Social Council to the position of territories
under. the sovereignty of a Member of the
United Nations which are self-governing in
matters provided for by the draft Charter and
for that reason, in the opinion of the Prepara-
tory Committee, ought to be invited to parti-
cipate in the work of the Conference.
THE GENERAL AGREEMENT ON TARIFFS AND TRADE
1. Considering that the task of the World
Conference would be facilitated if concrete
action were taken by the principal trading
nations to enter into reciprocal negotiations
directed to the substantial reduction of tariffs
and to the elimination of preferences on a
mutually advantageous basis, the Prepara-
tory Committee adopted a Resolution at its
First Session regarding the carrying out of
tariff negotiations under its sponsorship in
connection with, and as part of, the Second
Session.
2. The governments represented at the Se-
cond Session of the Preparatory Committee
are now engaged in the negotiations foreseen
in the above-mentioned Resolution. These
negotiations have not yet been completed.
3. It is expected that the concessions result-
ing from these negotiations, together with
such other provisions as may be appropriate,
will at the end of the Second Session be incor-
porated in a General Agreement on Tariffs and
Trade. - 71
ENCLOSURE 2
RESOLUTIONS ADOPTED AT THE
FIFTH SESSION OF THE ECONOMIC AND SOCIAL COUNCIL
RELATING TO THE INTERIM REPORT OF THE SECOND SESSION OF THE
PREPARATORY COMMITTEE
Resolutions adopted 28 July 1947.
A genda of the Conference.
The Economic and Social Council takes note
of the Interim Report of the Second Session of
the Preparatory Committee of the United
Nations Conference on Trade and Employ-
ment and approves the recommendations made
therein concerning the agenda of the United
Nations Conference on Trade and Employment.
Date and Place of the Conference.
The Economic and Social Council having
considered the Resolution of the Preparatory
Committee concerning the date and place of
.the United Nations Conference on Trade and
Employment, and
1-Having noted that the invitation of the Cuban
Government to hold the United Nations Con-
ference on Trade and Employment in Havana
is accompanied by an offer of conference faci-
lities and financial assistance to meet the addi-
tional costs to the United Nations of holding
the Conference away from Headquarters.
RESOLVES that the United Nations Confer-
ence on Trade and Employment should be
held at Havana, Cuba, on 2I November I947.
Resolutions adopted 1 August 1947.
Voting Rights at the Conference.
The Economic and Social Council having
considered the Resolution of the Preparatory
Committee relating to the invitations to the
United Nations Conference on Trade and Em-
ployment,
RESOLVES that voting rights at the Confer-
ence shall be exercised only by Members of the
United Nations attending the Conference.
Invitations to States not Members of the United
Nations.
The Economic and Social Council having
considered the Resolution of the Preparatory
Committee relating to the invitation to the
Conference of States not Members of the United
Nations,
RESOLVES that invitations should be sent to
the following States not Members of the United
Nations which have an appreciable interest
in world trade to participate in the work of the
United Nations Conference on Trade and Em-
ployment: Albania, Austria, Bulgaria, Eire,
Finland, Hungary, Italy, Pakistan, Portugal,
Roumania, Switzerland, Transjordania and the
Yemen.
Invitation to the Allied Control A authorities in
Germany, Japan and Korea.
The Economic and Social Council
RESOLVES that the Allied Control Authorities
in Germany, Japan and Korea be invited to
send qualified representatives to the United
Nations Conference on Trade and Employment
in a consultative capacity.
Invitation to the Governments of Burma, Ceylon
and Southern Rhodesia.
The Economic and Social Council having
noted that it became clear during the negotia-
tions which have taken place in Geneva during
the Second Session of the Preparatory Com-
mittee that Burma, Ceylon and Southern Rho-
desia, although under the sovereignty of a
Member of the United Nations, possess full
autonomy in the conduct of their external
commercial relations, and that the Preparatory
Committee considers that such separate cus-
toms territories should be invited to participate
in the work of the Conference,
RESOLVES that invitations should be sent,
through the Government of the United King-
dom, to the Governments of Burma, Ceylon
and Southern Rhodesia to participate in the
work of the United Nations Conference on
Trade and Employment.
Invitation to the Government of the Indonesian
Republic.
The Economic and Social Council, recognizing
that the Indonesian Republic enjoys in fact
autonomy in the conduct of its external com-
mercial relations. - 72 -
Recognizing further that the participation
of the Government of the Indonesian Republic
will prornote the aims-of the Conference,
RESOLVES to send a direct invitation to the
Government of the Indonesian Republic to
participate in the United Nations Conference
on Trade and Employment.
Invitations to Specialized A gencies and Other
Organizations.
The Economic and Social Council
RESOLVES that invitations to be represented
at the Conference be sent to the Specialized
Agencies and other appropriate Inter-govern-
mental Organizations and Non-governmental
Organizations in Category A. - 73 -
ENCLOSURE 3
SUB-COMMITTEES
Tariff Negotiations Working Party
Charter Steering Committee
Tariff Agreement Committee
Consultative Committee (with non-governmental organizations)
Sud-Committee on Chapter III
Sub-Cominittee on Chapter IV
Working Party on Technical Articles
Sub-Committee on Article 16, paragraph 5
Sub-Committee on Article 16, paragraph 6
Sub-Committee on Article 17
Sub-Committee on Article 18
Sub-Committee on Article I9
Sub-Committee on Article 20, paragraph 7
Sub-Committee on Article 21, old paragraph 3, new
Sub-Committee on Article 21, paragraph 2
Sub-Committee on Articles 14, 15, 24, 34, 35 and 38
Sub-Committee on Articles 25 and 27
Sub-Committee on Articles 26, 28 and 29
Sub-Committee on Article 30
Sub-Committee I on State Trading (Articles 31 and
Sub-Committee Il on State Trading (Article 33)
Sub-Committee on Article 36
Sub-Committee I on Chapter VI
Sub-Committee II on Chapter VI
Sub-Committee on Chapter VII
Working Party on Articles 48 and 49
Chapter VII Working Party on Definitions
Sub-Committee on Chapters I, II and VIII
Working Party on Article 1
Sub-Committee on Voting
Legal Drafting Committee
paragraph 2
32)
The numbers of Chapters, Articles and paragraphs indicated above are those of the New York Drafting
Committee's Report (E/PC/T/34). The comparable numbers in the present text are indicated in the second part
of Enclosure 4. - 74 -
ENCLOSURE 4
The following pages contain lists to aid in identifying comparable provisions in the present
draft of the Charter and in the draft prepared by the New York Drafting Committee (E/ PC /T /34).
These lists are intended to indicate changes in form between the two drafts but do not purport
to show all changes in substance.
The first of these two lists (pages 75-81) sets forth in sequence, in the left-hand column, the
numbers of provisions in the Geneva draft and indicates in the right-hand column the comparable
Chapters and Articles in the New York draft. Paragraphs also are listed whenever there have
been changes relating to individual paragraphs.
The second list (pages 82-87) indicates in a similar manner the numbers of the provisions
in the New York draft in the left-hand column, and the number of corresponding provisions in
the Geneva draft in the right-hand column. -- 75 -
1.
REFERENCE LIST TO AID IN LOCATING THE PROVISIONS IN THE NEW YORK
DRAFT CHARTER WHICH ARE COMPARABLE WITH PROVISIONS IN THE
DRAFT CHARTER PREPARED BY THE SECOND SESSION
Geneva Draft
CHAPTER I
Article I
CHAPTER II
Article 2
Paragraph
Paragraph
Paragraph
Article 3
Article 4
Article 5
I
2
3
New York Draft
CHAPTER I
Article I
CHAPTER II1
Article 3, paragraph 1
» , paragraph 2
Article 4
Article 5
}
Paragraph 1
Paragraph 2
Article 6
Paragraph
Paragraph
Paragraph
Paragraph
Article 7
Article 6, paragraph 1
No corresponding text
i, preamble
I a)
I ~b)
2
CHAPTER III
Article 8
First clause
Remainder of the Article
Article 9
Article 10
A rticle 11
Paragraph
Paragraph
Paragraph
Paragraph
Article 12
Article 13
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 14
Article 15
CHAPTER IV
I
3
4
I
3
4
4
4
5
A article 8, preamble
)) , paragraph (a)
" , paragraph (b)
No corresponding text
A rticle 7
CHAPTER IV
Article 10, first part
Article 9
Article 10, last part
Article 11
Article I2, paragraph 1
» , paragraph 2
Article 61, paragraph (c), in part
No corresponding text
No corresponding text
Article 13, paragraph 1
n , paragraph 2
J) , paragraph 2
, paragraph 2
No corresponding text
No corresponding text
No corresponding text
No corresponding text
No corresponding text
CHAPTER V
(a)
(b)
(c)
A rticle 14, paragraph 1
" , paragraph 2, preamble
») , paragraph 2 (a) (ii)
> , paragraph 2 (a) (i)
» , paragraph 2 (b)
,paragraph 2 (c)
No corresponding text
Article 24, paragraph 1, preamble
>> , paragraph 1 (b)
, paragraph 1 (c)
No corresponding text
No corresponding text
Article 24, paragraph 3, first and second sen-
tences
>> , paragraph 3, last sentence
(a)
(b)
(c)
I
2, preamble
-2 (a)
2 (c)
2 (d)
3
Article I1
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 17
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
I, preamble
I (a)
i (b)
i (c)
(d)
2
Paragraph 3 - 7b -
Geneva Draft
New York Draft
CHAPTER IV (cont'd)
Article 18
Paragraph 1
Paragraph 2
Paragraph 3
Paragraph 4
Paragraph 4
Paragraph 5
A rticle 19
A article 20
Paragraph 1
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 21
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraplh
Paragraph
Paragraph
Paragraplh
Article 22
CHAPTER V (cont'd)
.Article
"
"
">
">
(a)
(b)
'5,
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
3,
3,
first sentence
second sentence
4
3, Proviso
5
Article 15, paragraph 4
I
2, preamble
2 (a)
2 (b)
2 (c) preamnble
2 (c) (i)
2 c) tiii)
3
I
2
2
3
3
3
3
3
4
4
4
4
4
5
(a)
a)
b)
(c) (i)
(c) (iii)
C)(iii)
da)
(b)
(c)
(d)
(e)
Article 25, paragraph 1
» ,paragraph 2, preamble
» , paragraph 2 (b)
» , paragraph 2 (c)
paragraph 2 (e), preamble
» paragraphsh 2 (e) (i)
* ,paragraph 2 (e) (ii)
No corresponding provision
Article 26, paragraph 7
A rtiVee 26, paragraph I, second sentence
o , paragraph 2 (a
paragraphs 2 (b>
>) paragraphs 6
paragraph 3 (e), first sentence,
and paragraPh1 4, first sentence
paragraph 3 (e), last sentence
paragraph 2 (c)
.n ,paragraph 4, last sentence
» , paragraPh 3 (a)
» , paragraph 3 (b)
, paragraph 3 c)
paragraph 3 (d)
No corresponding text
Article 26, paragraph 5
Paragraph 1
Paragraph 2, preamble
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 23
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Aeticle 24
2
2
2
3
4
5
I
I
I
2
3
3
3
4
5
5
Paragraph 1
Paragraph 2
Paragraph 3
Paragraph 4
Paragraph 5
Paragraph 6
Paragraph 7
Paragraph 7
Paragraph 8
Paragraph g
Article 25
(a)
(b)
(c)
(I)
Article 27, paragraph 1
» ,paragraph 2,
paragraph
paragraph 2
paragraphs 2
» , paragraph 2
n ,paragraph 2
.. paragraph 3
» ,paragraph 4
» ,paragraph 5
(a)
(b)
:c) and (a:)
ca)
w a)
I b)
preamble; and
2 (a)
(b)
(c)
(d)
(e)
No corresponding text
Article 28, paragraph 1 (c)
No corresponding text
No corresponding text
.Artie 28, paragrap1 i (e)
paragraph 2
1 , paragraph 3
n paragraph 1 (d)
" paragraph 1 (a)
No corresponding text
Article 29, paragraph 1
o , paragraph 6, in part
No corresponding text
Article 29, paragraph 2
No corresponding text
Article 29, paragraph 3
n , paragraphs 5
No corresponding text
Article 29, paragraph 4
No corresponding text
Article 30, paragraph 1
(a)
(b) - 77-
Geneva Draft
CHAPTER IV (cont'd)
Article 26
Paragraphs 1 and 2
Paragraph 3
Paragraph 4
Article 27
Paragraph
Paragraph
Paragraph
Article 28
Article 29
Article 30
Paragraph
Paragraph
Paragraph
Article 31
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
1
3
New York Draft
CHAPTER V (cont'd)
Article 30, paragraph 2
» , paragraphs 2
No corresponding text
Article 30, paragraphs
)) , paragraph
» , paragraph
4
4
4
(")
(b)
(a)
(b)
A rticle 30, paragraph 5
Article 30, paragraph 6
I
I
3
4
5
6
7
(a), (b)
(c)
Article 31, paragraph 1
No correspuliding text
A rticle 31, lxaragraph 2
A rticle 32, paragraph 1
No corresponding text
No corresl)onring text
Article 32, paragraph 1 (b), last part
» , paragraph 3
)) , paragraph 4
No corresponding text
Article 32
Paragraph 1
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 33
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 34
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 35
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 36
Article 37
Paragraph
Paragraph
Paragraph
Paragraph
Article 38
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 39
3
4
5
6
7
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6
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5 ~a), (b)
5 c), (d)
6
I
3
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2
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3
(a),
(c)
I
3
4
5
6
7.'
Article 16, paragraph 1,
tences
)) ,paragraph 2
. paragraph 3
paragraph 4
paragraph 5
)) ,paragraph 6
)) ,paragraph 1,
first and second sen-
last sentence
Article 17, paragraph 1
» , paragraph 2
, paragraph 3
paragraph 4
» , paragraph 3
No corresponding text
A rticlc i8, paragraph 1
>) ,paragraph 2, preamble
» , paragraph 2 (a)
)) ,paragraph 2 (b)
)) ,paragraph 2 (c)
No corresponding text
A rticle i8, paragraph 2 (d)
Article I9, paragraph 1
)» , paragraphs 2
No corresponding text
Article I9, paragraph 3
n , paragraph 4
Article 2o
A article 21, paragraph 1
» , paragraph 3,
, paragraph 2
No corresponding text
(b)
first part
Article 22, paragraph 1 (a), (b)
,paragraph 1, second part
paragraph 2
, paragraph 3
» ,paragraph 4
») , paragraph 5
) ,paragraph 6
Article 23 -- 78 -
Geneva Draft
CHAPTER IV (cont'd)
articlee 40
Paragraph 1
Paragraph 2
ParagraPh 3
Paragraph 4
Aarticle 41
Article 42
Paragraph 1
Paragraph 2
Paragraph
Paragraph 3
Paragraph 3
Paragraph 4
New York Draft
CHAPTER V (cont'd)
Article 34, paragraph 1
*) , paragraph 2
il , paragraph 3
No corresponding text
Aarticle 35, paragraph 1
Aarticle 38, paragraph 1
, paragraph 2
(a) n , paragraph 3
(b) No corresponding text
(c) No corresponding text
Article 38, paragraph 5
I, sub-paragraph
1, sub-paragraph
I, sub-paragraph
J, sub-paragraph
I, sub-paragraph
I, sub-paragraph
I, s ib-paragraph
I, sub-paragraph
I, sub-paragraph
II
(a)
(b)
(c)
ci)
te)
(h)
(i)
Article 37, Preamble
sub-paragraph (a)
sub-paragraph (b)
sub-paragrapl (f)
sub-paragraph (g),
sub-paragraph (h)
sub-paragraph (i)
sub-paragraph (j)
Article 25, paragraph 2 (d)
No corresponding text
Article 25, paragraphs 2 (i)
CHAPTER V
Article 44
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 45
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Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
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Paragraph
Article 46
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
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Article 47
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 48
Article 49
Article 50
(i)
(ii)
(iii)
CHAPTER VI
I
2, preamble
2 (a)
2 (b)
2 (c)
3 (an to (f)
3 (g4
4
I
3
4
5
6
7
S
9
IO
II
I
I
I
I
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2
3
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6
Aarticle 39, paragraph 1
» , paragraph 2,
No corresponding text
Article 39, paragraph 2
, paragraph 2
n , paragraph 3
No corresponding text
No corresponding text
A rticle
"
>1
(a)
(a)
(a)
ta)
(b)
40,
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
I
I
I
I
I
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1
2
2
Article 41, paragraph 1
» , paragraph 1
O , paragraph 1
No corresponding text
Article 41, paragraph 1
» , paragraph 2
Article 42,
»
"
ii
"
Article 43
Article 44
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
I
2
2
I
2
2
preamble
(a.)
(b)
(a) to (j)
first sentence
second sentence
(i)
(ii)
(a)
(b)
(b)
(c)
(d)
(e)
(a),
agx),
(c)
(d)
(a)
(a)
(a)
(b)
(a)
(a)
(c) (i)
(b)
(d)
(e)
No corresponding text
Article 43
Preamble
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraplh
Paragraph
Paragraph
Paragraph
Paragraph
Article 25, 2 (f) - 79 -
Geneva Draft
CHAPTER V (cont'd)
Article 51
Paragraph 1 (a)
Paragraph 1 (b)
Paragraph 2
CHAPTER VI
Article 52
Article 53
Paragraph
Paragraph
Paragraph
Article 54
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article -5
Article 56
Article 57
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 58
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 59
Paragraph
Paragraph
Paragraph
Article 60
Paragraph
Paragraph
Paragraph
Paragraph
Article 61
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 62
Article 63
New York Draft
CHAPTER VI (cont'd)
Article 45, paragraph 1 (a)
No corresponding text
Article #5, paragraph 2
CHAPTER VII
Article 46
2 f
3
(a
(b)
(c)
(d)
(e)
(f)
A rticle 60, paragraph 1
Article 52, paragraph (c)
A article 47, paragraph (a)
» , paragraph (b)
, paragraph (c)
, paragraph (d)
)) , paragraph (e)
No corresponding text
Article 48
A article 49
(a)
(b)
(c)
(d)
(e)
Article
A rticle
(a)
(b)
(a)
(b)
5i, paragraph (a)
,paragraph (b)
,paragraphs (c) and (d)
,paragraph (e)
,paragraph (g)
58 and Article 51, paragraph (f)
No corresponding text
No corresponding text
Article 60, paragraph 3
No corresponding text
No corresponding text
No corresponding text
No corresponding text
Article 53, paragraph (a)
(a)
(b)
Article 52, paragraph (a)
» , paragraph (b)
No corresponding text
(a)
(b)
(c)
(d)
I
2
J
4
5
6
7
8
9
Article
il
Article
i3
.,
Article
53,
54,
,55,
paragraph
paragraph
paragraph
paragraph
(b)
(c)
(d)
(e)
paragraph 1
paragraph 2
paragraph 3
paragraph 4
paragraph 5
paragraph 6
paragraph 7
paragraph 8
last sentence
- Article 55, all but last sentence
Article 56
Article 64
Paragraph (a)
Paragraph (b)
Paragraph (c)
Article 65
Article
"
">
50,
paragraph 2
paragraph 1 (b)
paragraph 1 (a)
Article 57
and Article 57 (f) I
2
3
- So -
Geneva Draft
CHAPTER VI (cont'd)
Article 66
Article 67
Paragraph
Paragraph
Paragraph
I
I
I
(a)
cb)
(c)
Paragraph 2
Paragraph 3
CHAPTER VII
Article 68
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 69
Article 70
Article 7I
Article 72
Article 73
Article 74
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 75
Article 76
Article 77
Article 78
Article 79
Article 80
Article 81
Article 82
Paragraph
Paragraph
Paragraph
Article 83
Paragraph i1
Paragraph 2
Paragraph 3
Article 84
Article 85
Article 86
Article 87
Article 88
CHAPTER VIII
Article 89
Article 90
Paragraph
Paragraph
Paragraph
Paragraph
I
2
3
4
New York Draft
CHAPTER VII (cont'd)
Article 60, paragraph 2
Article 59, paragraphs (b), second par,
No corresponding text
Article 59, paragraph (a), second part; Article
45, paragraph 1 (b)
, paragraph (a), first part; Article 45,
paragraph 1 (b)
, paragraph (b), first part; Article 45,
paragraph I (b) and Art cke 37,
.aragraph (j)
CHAPTER VIII
Aarticle 2, paragraph 1
» , paragraph 2
No corresponding text
No corresponding text
Article 2, paragraph 3
Article 61
Article 62
Article 63
Article 64
Article 65
I
2
3
4
5
I
2
3
4
s
6
7
Article
"
»
66,
paragraph 1, first sentence
paragrahi 2
paragraph 3
paragraph 6
paragraph i1 second sentence
paragraph 7
paragraph 8
Article 68
Article 69
Article 70
Article 71
Articles 72 and 74
Article 73
Article 67
Article
nJ
"
79,
paragraph
paragraph
paragraph
I; Article 78, paragraph i
2, first sentence
2, second sentence
Article 80, paragraph 1, first sentence; Article
78, paragraph 2
» , paragraph 1, second sentence
» , paragraph 2
Article 81
Article 82
Article 83
Article 84
Article 87
CHAPTERS V and VIII, in part
Article 35, paragraph 2, first sentence
Article
Article
A rticle
Article
Article
35,
86,
86,
86,
35,
paragraph
paragraph
paragraph
paragraph
paragraph
tences
2,
2,
2,
second sentence
first sentence
second sentence
third sentence
third and fourth sen- - 81 -
Geneva Draft
CHAPTER VIII (cont:d)
Article 91
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 92
Paragraph
Paragraph
Paragraph
Paragraph
CHAPTER IX
A rticle 93
I
3
4
5
I
3
4
New York Draft
CHAPTERS V and VIII in part (cont'd)
A rticle 86, paragraph 4
No corresponding text
No corresponding text
No corresponding text
No corresponding text
Article 86, paragraph 1
No corresponding text
No corresponding text
No corresponding text
CHAPTERS V and VIII in part
Article 36 (no text previously)
A article 94
Paragraph (a)
Paragraph (b)
Paragraph (c)
Article 95
Article 96
Article 97
Article 98
Paragraph
Paragraph
Paragraph
Article 99
Paragraph
Paragraph
Paragraph
Article 100
A rticle 42, paragraph 2 (c) (i)
Article 37, paragraphs (c), (d),
paragraph 1 (b)
Article 59, paragrapla (c)
Article 37, paragraph (k)
Article 85
No corresponding text
Article 89
A article 88, paragraph 2
» , paragraph 3
No corresponding text
I
2
3
I
2
3
Article 88, paragraph 4
No corresponding text
Article 88, paragraph 5
Article 88, paragraph 1
(e); Article 45, - 82 -
II.
REFERENCE LIST TO AID IN LOCATING THE PROVISIONS IN THE DRAFT CHARTER
PREPARED BY THE SECOND SESSION WHICH ARE COMPARABLE WITH
THE PROVISIONS IN THE NEW YORK DRAFT CHARTER
New York Draft
CHAPTER 1
Article 1
CHAPTER II
Article 2
Paragraph
Paragraph
Paragraph
CHAPTER III
Article 3
Article 4
Article 5
Article 6
Article 7
Article 8
CHAPTER IV
Article 9
Geneva Draft
CHAPTER I
Article 1
No corresponding chapter
2
3
68, paragraphs 1
, paragraph 2
, paragraph 5
CHAPTER II
Article 2
Article 3
Article 4
A rticle 5, paragraph 1
Article 7
A article 6, paragraph 1
CHIAPTER III
Article 8, second part
Article 10
First part
Second part
A rticle i I
Article 12
Paragraph
Paragraph
Paragraph
A rticle 13
Paragraph
Paragraph
Paragraph
Paragraph
CHAPTER V
Article 8, first part
Article 9
Article 10
Article 11, paragraph 1
" , paragraph 2
No corresponding text
I
3
I
2
2
(a)
(b)
(c)
Article 14
Paragraph I
Paragraph 2,
Paragraph 2
Paragraph 2
Paragraph 2
Paragraph 2
Article 15
Paragraph 1
Paragraph 2
Paragraph 3,
Paragraph 3,
Paragraph 3,
Paragraph 4
Paragraph 5
Aarticle
preamble
(a) (i)
(a) (ii)
(b)
(c)
first sentence
second sentence
,proviso
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
I
2,
2
No corresponding text
Article 18, paragraph 1
, paragraph 2
» , paragraph 3
)» , paragraph 4
1 paragraph 4
Il , paragraph 5
preamble
b)
(a)
(c)
(d)
(b)
(a) and Article I9
Article I6,
Paragraph 1, first and second sentences
Paragraph 1, last sentence
Paragraph 2
Paragraph 3
Paragraph 4
Paragraph 5
Paragraph 6
Article 32,
Il
paragraph 1
paragraph 7
,paragraph 2
,paragraph 3
,paragraph 4
,paragraph 5
,paragraph 6
Article
"~
I3,
Article
"
"I
paragraph
paragraph
paragraph
paragraph
I
2
4 (a)
CHAPTER IV - 83 -
New York Draft
CHAPTER V (cont'd)
CHAPTER IV {cont'd)
Article 33, paragraph
I , paragraph
l' , paragraph
1) , paragraph
II , paragraph
No corresponding text
Article
1)
"I
"I
Article
3-,
35,
paragraph I
paragraph 2
paragraph 3
paragraph 4
paragraph 5 (a) and (b)
paragraph 6
paragraph
paragraph
paragraph
paragraph
A rticle 36
I
2
3, first part
3, second part
Paragraph i, preamble, (a) + (b)
Paragraph I, last sub-para-raph
Paragraph 2
Paragraph 3
Paragraph 4
Paragraph 5
Paragraph 6
Article 23
Article 24
Paragraph 1, preamble
Paragraph 1 (a)
Paragraph 1 (b)
Paragraph 1 (c)
Paragraph 2
Paragraph 3, first and second sentences
Paragraph 3, last sentence
Article 37, paragraphs 1
» , paragraph 3 (a) and (b)
o , paragraph 2
No correspoliding text
Article 38,
Article 39
"
A rticle 39
paragraph
paragraph
paragraph
p;aragraph
paragraph
paragraph
paragraph
Article I7, paragraph 1, preamble
No corresponding text
Article 17, paragraph 1 (a)
» , paragraph 1 (b)
No corresponding text
Article 17, paragraph 2
» , paragraph 3
Article 25
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
2, preamble
2 (a)
2 (b)
2 (c)
2 (d)
2. (e)
2 (f)
Article 26
Paragraph 1, first sentence
Paragraph 1, second sentence
Paragraph 2 (a)
Paragraph 2 (b)
Paragraph 2 (c)
Paragraph 3 (a)
Paragraph 3 (b)
Paragraph 3 (c)
Paragraph 3 (d)
Paragraph 3 (e)
Paragraph 4
Paragraph 5
Paragraph 6
Paragraph 7
Article
"c
Article
Article
Article
Article
Article
20,
43,
20,
43,
20,
43,
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
No corresponding text
Article 2I1 paragraph 1
» , paragraph 2
" , paragraph 2
» , paragraph 3
» , paragraph 4
" , paragraph 4
II paragraph 4
, paragraph 4
, paragraph 3
, paragraph 3
, paragraph 5
paragraph 3
Article 20, paragraph 3
I
2, preamnble
'I
2 (a)
2 (b)
I (k)
2 (c) (i) and (ii)
I (,1)
(a)
(b)
(c) (ii)
(a)
(b)
(c)
(d1)
(b) and (c) (i)
(b) and (c) (iii)
(a)
Geneva Draft
I
3
4
5
6
I
3
4
5
I
2, prcanible
2 (a)
2 (d)
_ (cl)
Article I7
Paragraph
Paragraph
Paragraph
Paragraph
Paragrapli
Paragraph
Article 18
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
A rticle I9
Paragraph
Paragraph
Paragraph
Paragraph
Article 20
Aarticle 21
Paragraph
Paragraph
Paragraph
Paragraph
Article 22
I
3
4
I
2
4
5
I
3
4
5
6
7 84 -
New York Dratt
CHAPTER V (cont'd)
Geneva Draft
CHAPTER IV (cont'd)
Article
''
"
"
22,
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
I
2, preamble
2 (a)
2 (b)
2 (c)
2 (d)
3
4
5
Article 23, paragraph 5 (a)
No corresponding text
No corresponding text
Article 23, paragraph 4
'' , paragraphs I (b) and 3 (a)
'' , paragraph 3 (b)
" , paragraph 3 (c)
Article
"
"
"
Article
Article
Article
''
Article
Article
34
25
26
27,
28
29
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
I
4
6
8
I (a)
2
paragraphs I and 2
paragraph 3
paragraph I
paragraph 2
paragraph 3
Article 30, paragraph i (a) and (b)
'' , paragraph 2
No corresponding text
Article 3I, paragraphs I and 4
No corresponding text
Article 3I, paragraph 5
'' , paragraph 6
No corresponding text
Article 40
first sentence
second sentence
third and fourth sentences
Article
Article
Article
''
4I
89
90,
,
paragraph I
paragraph 4
Arlicle 93
A rticle
''
Article
''
Article
''
Article
43,
94,
43,
94,
preamble
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
I (a)
I (b)
(b) (i)
(b) (ii)
(b) (iii)
I (c)
I (d)
I (e)
I (f)
I (g)
(c)
Article 38
Paragraph i
Paragraph 2
Paragraph 3
Paragraph 4
Paragraph 5
Article 42, paragraph I
'' , paragraph 2
'' , paragraph 3 (a)
No corresponding text
Article 42, paragraph 4
(a)
(b)
(c)
(d)
(e)
I
2
2
2
2
2
4
5
I
I
I
I
I
2
3
(a)
(b)
(e)
I
2 .
3
4
5
6
(a)
(b)
(a)
(b)
Article 27
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
A rticle 28
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 29
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 30
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 3I
Paragraph
Paragraph
Paragraph
Article 32
Paragraph
Paragraph
Paragraph
Paragraph
Article 33
Article 34
Article 35
Paragraph
Paragraph
Paragraph
Paragraph
Article 36
Article 37
Preamble
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
I
2
2
3
4
4
5
6
2
3
I
2
3
4
2
2,
2,
(a)
(b)
(c)
(d)
(e)
(i)
(k) - 85 -
New York Draft
Geneva Draft
CHAPTER VI
Article 39
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
.Article 40
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 4I
Article 42
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Aarticle 43
Article 44
CHAPTER V
Articlc
"
"
".
''
2, preamble
2(a)
2 (b)
3 (a) to (f)
I
2
2
I
2
2
(a)
(b)
(c)
(d)
(e)
(a),
(a),
(b)
(c)
(d)
(a)
(a)
(b)
(c)
(c)
(d)
(e)
first sentence
second sentence
(i)
(ii)
44'
paragraph
paragraph
paragraph
paragraph
paragraph
2
3
preamble
(b)
(c)
(a) to (1)
Arlice 45, paragraph i
paragraphs 2 and 3
paragraph 4
paragraph 5
paragraph 6
paragraph 7
paragraph 8
paragraph 9
paragraph IO
paragraph i i
. article 46, except paragraph i (a) (iii)
Aaticle 47, paragraph I
'' , paragraph 4
'' , paragraph 2
No corresponding text
Article 94, paragraph (a)
Article 47, paragraph 3
'' , paragraph 5
'' , paragraph 6
Article 48
Article 49
Article 45
Paragraph i (a)
Paragraph i (b)
Paragraph 2
CHAPTER VII
Article 46
articlee 47
Article 48
Article 49
A rticle 50
Article 51
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
(a)
(b)
(c)
(d)
(e)
(f)
Article 51, paragraph i (a)
Article 67, paragraphs i (c), 2 and 3 and
Article 94, paragraph (b)
Article SI, paragraph 2
CHAPTER VI
Article 52
Article 54, paragraphs (a) to (e)
Article 55
Article 56
Article 64
Article 57, paragraph i
'' ,paragraph I
'' , paragraph I
'' , paragraph i
,paragraph i
'' , paragraph 2
graph (a)
Article 51, paragraph i
Paragraph (g)
(a)
(b)
(c)
(c)
(d)
and
(e)
Article 60, para-
Article 52
Paragraph
Paragraph
Paragraph
Article 53
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 54
(a)
b)
(c)
(a)
(b)
(c)
(d)
(e)
Article 6r, paragraphs i to 8
Article 55
All but last sentence
Last sentence
Article 56
Article 57
(a)
(b)
I
3
59,
53,
65,
6o,
Article
"i
A rticle
A rticle
Article
''
''
''
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
paragraph
6
(a)
(b)
(c)
(d)
Article
Article
Article
Article
62
61
63
65
paragraph 9 - 86 -
New York Draft
CHAPTER VII (cont'd)
Article 58
CHAPTER VI (cont'd)
A article 57, paragraphs 2
Article 59
Paragraph (a),
Paragraph (a),
Paragraph (a),
Paragraph (b),
Paragraph (b),
Paragraph (c)
Article 60
Paragraph i
Paragraph 2
Paragraph 3
CHAPTER VIII
Article 6i
Article 62
Article 63
A rticle 64
Article 65
Article 66
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Paragraph
Article 67
Article 68
Article 69
Article 70
Article 7I
Article 72
Article 73
Article 74
Article 75
Article 76
Article 77
I,
I,
2
.3
4
5
6
7
8
first part sentence
second part sentence
last sentence
first part
second part
Article 67, paragraph 2
Article 67, paragraph i (c)
No corresponding text
Article 67, paragraph 3
Article 67, paragraph i (a)
A rticle 9., paragraph (b)
Article 53, paragraphs i and 2
Article 66
Article 58, paragraph 2
CHAPTERS VII, VIII and IX
Article 69 and Article II, paragraph 3
A rticle 70
Article 7I
Article 72
Article 73
first sentence
second sentence
A rticle 74, paragraph i
paragraph 5
'' , paragraph 2
'' , paragraph 3
No corresponding text
No corresponding text
Article 74, paragraphs 4
, paragraph 6
paragraphs 7
A rticle 81
Article 75
Art icle 76
Article 77
Article 78
Article 79
Article 80
Article 79
No corresponding text
No corresponding text
No corresponding text
Article 78
Paragraph I
Paragraph 2
Article 79
Paragraph I
Paragraph 2
Article 80
Paragraph I
Paragraph 2
Article 81
Article 82
Article 83
Article 84
Article 85
Article 86
Paragraph i
Paragraph 2,
Paragraph 2,
Paragraph 2,
Paragraph 3
Paragraph 4
Article 87
Article 82, paragraph i, first sentence
Article 83, paragraph i, first sentence
Article 82, paragraph i
'' , paragraphs 2 and 3
Article 83
'' , paragraph i, second sentence, and
paragraph 2
'' , paragraph 3
Article 84
Article 85
Article 86
Article 87
Article 95
first sentence
second sentence
third sentence
Article 92, paragraph i
Article 90, paragraph i
'' , paragraph 2
'' , paragraph 3
No corresponding text
Article 9I, paragraph I
Article 88
Geneva Draft - 87 -
New York Draft
CHAPTER VIII (cont'd)
Article 88
Paragraph i
Paragraph 2
Paragraph 3
Paragraph 4
Paragraph 5
Article 89
Article 100
A rice 98, paragraph
A rice 98, paragraph
A rice 99, paragraph
Article 99, paragraph
Article 97
E/PC/T/189
-o -n 1 e)
Geneva Draft
CHAPTERS VII, VIII and IX (cont'd)
I
2
I
3 SALES AGENTS FOR UNITED NATIONS PUBLICATIONS
The following is a list of sales agents for United Nations publications in various countries. Names of
agents in other countries will be announced as the appointments are made.
ARGENTINA: Editorial Sudamericana, Calle Alsina 500, BUENOS AIRES.
AUSTRALIA: H. A, Goddard Pty., Ltd., 255a, George Street, SYDNEY.
BELGIUM: Agence et Messageries de la Presse S.A., 14-22, rue du Persil, BRUXELLES.
BOLIVIA: Libreria Cientifica y Literaria; Avenida 16 de Julio 216, Casilia 972, LA PAZ.
CANADA. The Ryerson Press, 299, Queen Street West, TORONTO, Ontario.
CHILE, Edmundo Pizarro, Merced 846, Casina 3916, SANTIAGO.
CHINA: The Commercial Press, Ltd., 211. Honan Road, SHANGHAI.
COSTA- RICA: Trejos Hermanos, Apartado 13I3, SAN JOSÉ.
CUBA: La Casa Belga, René de Smedt,' O'Reiliy 455, HAVANA.
CZECHOSLOVAKIA:. Librairie F. Topiè, Narodni Trida 9, PRAGUE.
DENMARK: Librairie international Einar Munksgaard, Norregade 6, COPENHAGEN.
DOMINICAN REPUBLIC: Librería Dorninicana, Calle Mercedes 49, Apartado 656, CIUDAD
TRUJILLO. ;
ECUADOR: Muñoz Hermaosy Cia., Nueve de Octubre 703, Casilla IO-24, GUAYAQUIL.
FINLAND: Akiateeminen Kirjakauppa, Keskuskatu 2, HELSINKI.
I FRANCE: Editions A. Pedone, 13, rue SoufflOt, PARIS, 5C. -
GREECE: Librairie internationale 'EIeftheroudakis", Place de la Constitution, ATHENS.
GUATEMALA: Goubaud &- Cia., Ltd, Sucesor, 5- Ave Sur. No. 6 Y 9a, C.P., GUATEMALA CITY.
HAITI: Max Bouchereau, Librairie à a Caravelle, Boite Postale iii-B, PORT-AU-PRINCE.
INDIA: Oxford Book & Stationery Co., Scindia House, NEW DELIII.
IRAN: Bangahe Piaderow, 73r, Shah Avenue, TEIIERAN.
IRAQ: Mackenzie M Mackenzie, The Bookshop, BAGHDAD.
LEBANON: Librairie Universelle, BEIRUT.
NETHERLANDS: N..V. Martinlus Nijhoff's Boekhandel en Uitgevers Maatschappij, Lange Voorhout 9,
THE HAGUE.
NEW ZEALAND: Gordon & Gotch. Ltd., Waring Taylor Street, WELLINGTON.
NORWAY: . Norsk Bokimport A/S, Edv. Stormsgate I, OsLo.
SWNEDEN: Aktiebolaget C. E. Fritzes Kungl. Hofbokhandel, Fredsgatan 2, STOCKHOLM 16.
SWITZERLAND: Librairie Payot, LAUSANNE; BALE, BERNE, GENEVA, MONTREUX, NEUCHATEL,
VEVEY, ZURICH.
Librairie' Hans Raunhardt, Kirchgasse 17, ZURICI.
SYRIA: 'Librairie Universelle, DAMASCUS.
UNION OF SOUTH AFRICA: The Central News Agency, Ltd., Cor. Commissioner & Rissik
Sts., . JOHANNESBURG.
UNITED KINGDOI. H.M. Stationery Office, P.O. Box 569, LONDON, S.E. I.
UNITED STATES OF AMERICA : Columbia. University Press, International Documents
Service, 2960 Broadway , NEW YORK, 27, N.Y.
YUGOSLAVIA:. Drzavno Preduzece, Jugoslovenska Knijga, Moskovska Ul. 36, BELGRADE.
For other EUROPEAN countries and the MIDDLE EAST, orders should be addressed to the
SALES SECTION, UNITED NATIONS, Geneva (Switzerland).
PRINTED IN SWITZERLAND. PRICE IN THE UNITED STATES: 75 cents. E/PC/T/186. Corr. 1.
Report of the Second Session of the Preparatory Committee
of the United Nations Conference on Trade and Employment
CORRIGENDUM
The following corrections should be made;
Page 16: line 6 of first column.
The word "Any" should start a new paragraph, which should not
be indented.
Page 19: footnote relating to Article 19.
This footnote should be deleted as the United Kingdom Delegation
has withdrawn its reservation to Article 19.
Page 21: paragraph 2(a) (ii) of Article 21.
The words "due regard being paid ........ credits or resources."
should not be indented.
Page 24: paragraph 5 of Article 22.
The words "under paragraph 2 of Article 18" should read "under
paragraph 3 and 4 of Article :8".
Page 24: paragraph 1 (a) of Article 23.
The following words should be added at the end of the last sen-
tence of this paragraph in. the French text after the word "dérogations" in
order to render the French and English texts comparable:
"afin de ne pas gêner la reprise des échanges multilatéraux."
Page 62: Annex D.
The title of this Annex should be changed to read:
"LIST OF TERRITORIES REFERRED TO IN PARAGRAPH 2 (b) OF ARTICLE 16 AS RESPECTS
THE UNITED STATES OF AMERICA".
United Nations Publications
Sales Number: 1947. Il. 4.
Corrigendum 1. |
|
GATT Library | dp490ym2860 | Report of the Sub-Committee on Article 92, paragraph 1 : (Authoritative Texts for the Interpretation of the Charter under the Provisions of Chapter VIII) | United Nations Conference on Trade and Employment, December 31, 1947 | Sixth Committee: Organization | 31/12/1947 | official documents | E/CONF.2/C.6/34 and E/CONF.2/C.6/12/ADD.4-44 | https://exhibits.stanford.edu/gatt/catalog/dp490ym2860 | dp490ym2860_90170086.xml | GATT_151 | 159 | 1,232 | United Nations Nations Unies
UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.6/34
ON DU C,6/34
TRADE AND EMPLOYMENT COMMERCE ET DE OIEMPLI0 31 December 1947
ORIGIENG: VIGLISH
SIXTH COMMIOTGE: CROANIZATION
REPORT OF UB-E, SM-CEEOMMITT ON ARTICLE 92, PARAGRAPH 1
(Authoritative Texts for the Interpretation of the Charter
under the Provisions of Chapter VIII)
The Sub-Committee on paragraph 1 of Article 92, discussed the Argentine
and Peruvian amendments to paragraph 1 of Article 92 (Authoritative texts
for interpretation of the Charter under the provisions of Chapter VIII).
A compromise text was submitted by the representative of France and
accepted by all the members of the Sub-Committee but the representative
of the UnitedoKingdcm.omhe canpromise text reads as follows:
"For purposes of the interpretation of the present Charter -
notwithetanding the provisions of Article 100 - in relations of the
Orgaonzatic4 with the International Court of Justice and with the
lired alzod Agenc¾as, only the French And English Texts of the
Charter shall si coneidered authoritative." |
GATT Library | sj417mf2642 | Report of the Sub-Committee on paragraph 1 of Article 83 (Appointment of deputy directors-general) | United Nations Conference on Trade and Employment, December 30, 1947 | Sixth Committee: Organization | 30/12/1947 | official documents | E/CONF.2/C.6/33 and E/CONF.2/C.6/12/ADD.4-44 | https://exhibits.stanford.edu/gatt/catalog/sj417mf2642 | sj417mf2642_90170085.xml | GATT_151 | 94 | 802 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF. 2/C. 6/33
ON DU 30 December 1947
TRADE AND EMPLOYMENT COMMERCE ET DE LEMPLOI ORIGINAL: ENGLISH
SIXTH COMMIETTE: ORGANIZATION
REPORT OF THE SUB-COMMITTEE ON PARAGRAPH 1 OF ARTICLE 83
(APPOINTMENT OF DEPUTY DIRECTORS-GENERAL)
The Sub-Committee on paragraph 1 of Article 83 agreed on the
following text of the first sentence of paragraph . of Article 83:
"The Director-General having first consulted with,
and living obtained the agreement of the Executive Board,
shall have authority to appoint Deputy Directors-General in
accordance with regulations approved by the Conference". |
GATT Library | cp632df7704 | Report of the Sub-Committee on paragraph 7 of Article 74 (Powers and duties of the conference) | United Nations Conference on Trade and Employment, December 15, 1947 | Sixth Committee: Organization | 15/12/1947 | official documents | E/CONF.2/C.6/21 and E/CONF.2/C.6/12/ADD.4-44 | https://exhibits.stanford.edu/gatt/catalog/cp632df7704 | cp632df7704_90170072.xml | GATT_151 | 228 | 1,665 | E/CONF.2/C.6/21
United Nations Nations Unies 15 December 1947
CONFERENCE CONFERENCE ORIGINAL : ENGLISH
ON DU
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
SIXTH COMMITTEE: ORGANIZATION
REPORT OF THE SUB-COMMITTEE ON PARAGRAPH 7 OF ARTICLE 74
(POWERS AND DUTIES OF THE CONFERENCE)
The Sub-Committee unanimously recommends that the text of paragraph 7
of Article 74 as drafted by the Preparatory Committee should be retained.
In addition the Sub-Committee also recommends that the Conference should
adopt either of the following alternative courses of action:
1. Should an Interim Commission for the International Trade
Organization not be established by the United Nations Conference
on Trade and Employment, the Conference should adopt the following
resolution:
"THE UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
"CONSIDERING that it is of paramount importance that the
seat of the Organization should be established with all
possible speed
"RECOMMENDS that this question should be studied thoroughly
and given full consideration by the First Session of the
Conference of the Organization";
OR
2. Should an Interim Commission for the International Trade
Organization be established by the United Nations Conference on Trade
and Employment, the following paragraph should be inserted in the
terms of reference of the Commission:
"The Interim Commission should study with all possible
speed the question of the seat of the Organization and make
a recommendation upon this question to the First Session of
the Conference." |
GATT Library | ps362dd7328 | Report of the Sub-Committee on the question of voting rights for non-members of the United Nations | United Nations Conference on Trade and Employment, November 29, 1947 | 29/11/1947 | official documents | E/CONF.2/W.12, E/CONF.2/W/1-15, E/CONF.2/BUR.1-39, and E/CONF.2/BUR/W.1 | https://exhibits.stanford.edu/gatt/catalog/ps362dd7328 | ps362dd7328_90180159.xml | GATT_151 | 371 | 2,405 | United Nations Nations Unies
CONFERENCE CONFERENCE RESTRICTED
ON DU E/CONF.2/W.12
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 29 November 1947
REPORT OF THE SUB-COMMITTEE ON THE QUESTION OF
VOTING RIGHTS FOR NON-MEMBERS OF THE UNITED NATIONS
1. The Sub-Committee recommends that Rules 30 to 33 inclusive of the Rules
of Procedure contained in document E/CONF.2/2/Rev.4 should be deleted and that
the following wording should be adopted as Rule 30:
The method of voting shall be in accordance with the resolution
adopted by the Conference on this subject on November 1947.
2. The Sub-Committee recommends that the following resolution should be
adopted by the Conference:
THE UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
HAVING REGARD to the views expressed in the Conference with reference
to equality in the matter of voting but
CONSIDERING THAT it is not practicable at this stage to seek a review
of the decision taken by the Economic and Social Council upon the
question of voting rights at the Conference for non-Members of the
United Nations
RESOLVES THAT
1. In order to accord to all delegations equality to the fullest
extent practicable, decisions of the Conference and its comittees shall be
reached, so far as possible, without resort to voting.
2. At the close of the discussion the President of the Conference or
the chairman of a committee shall consult the members of the Conference
or the committee in order to determine the opinion of the Conference or
of the committee and shall announce the result. This result shall be
recorded.
3. If, however, a vote is taken, it shall be taken in accordance with
the relevant terms of Resolution 62 (V) of the Economic and Social
Council. The decision shall be by a majority of the votes cast. An
abstention shall not be considered as a vote. A vote shall normally
be taken by show of hands or by standing. If any representative requests
a roll call, a roll call shall be taken in the English alphabetical order
of names of the Members. After the President or a chairman has announced
the beginning of a vote, no representative shall interrupt the vote
except on a point of order in connection with the actual conduct of the
voting. |
|
GATT Library | mw482xt2783 | Report of the Tariff Negotiations Working Party General Agreement on Tariffs and Trade | United Nations Economic and Social Council, July 24, 1947 | United Nations. Economic and Social Council | 24/07/1947 | official documents | E/PC/T/135 and E/PC/T/124-135 | https://exhibits.stanford.edu/gatt/catalog/mw482xt2783 | mw482xt2783_92290162.xml | GATT_151 | 16,852 | 110,732 | UNITED NATIONS NATIONS UNlES RESTRICTED
ECONOMIC CONSEIL E/PC/T/135
AND ECONOMIQUE ORIGINL: ENGLISH
SOCIAL COUNCIL ET SOCIAL
REPORT OF THE TARIFF NEGOTIATIONS WORKING PARTY
GENERAL AGREEMENT ON TARIFFS AN)D TRADE
1. In their Joint Report of 29 MAY,(E/PC/T/81) which was
approved by the Preparatory Committee meeting inExecutive
Session, the Charter Steering, Committee and the Tariff Negotia-
tions Working Party recommended that the Tariff Negotiations
Working Party should begin as soon as feasible to study the
draft text of the General Agreement on Tariffs and Trade, in-
cluding the functions, etc., of the proposed Interim Trade Com,-
mittee. It was not intended that the Working Party should make
substantive decisions in this connection but rather an explana-
tory study for the guidance of the Preparatory Committee.
2. In accordance with these instructions, the Working Party,
which is composed of the representatives of Canada, France,
Nétherlands, United Kigdom and United States, under the chair-
manship of the lion. L. D. Wilgress (Canada), started consider-
ing the General Agreement on Tariffs and Trade shortly after-
wards and has devoted a considerable number of meetings to this
world.
3. In addition to consulting Delegations on various occasions,
the Working Party has taken account of all suggestions con-
tained in the Report of the Draftine Committee, as well as of
views such as those advanced by the Polish Observer in docu-
ment E/PC/T/77 of 23 May, by the Australian Delegation in docu-
ment E/PC/T/193 of 13 June and by the Cuban Delegation in docu-
ment E/PC/T/85 of 3 June.
4. Throughout its work, the Working Party has adhered to the
contents of paragraph 4, Section H of Annexure 10 to the Report
..... - E/PC/T/135
page 2
of the First Session, to the affect that the Agreement should
conform in every way to the principles laid down in the Charter
and should not contain any provision which would prevent the
operation of any provision of the Charter.
5. Consideration of the text of the General Agreement as con-
tained in the Report of the Drafting Committee, led the Work-
ing Party to the conclusion that , certain degree of rearrange-
ment was required.
6. The Working Party felt that it would be best to give the
Agrrement the usual form of trade agreements, Theytherefore,
have omitted certain provisions which are not usually found in
trade agreements but have reworded the Preamble and the Protocol
so as to indicate that over and above the specific commitments
of the Agreement, the contracting parties will undertake to
facilitate action for the attainment of the objectives set forth
in the Preamble and to conform to the principles of the Draft
Charter.
7. Annex I to this Report consists of a comparative table
showing the differences between the draft established by the
Drafting Committee and that which is submitted by the Working
Party attached hereto as Annex II. In particular, it will be
noted that the agreement has beein divided into three parts.
Thu significance of this form of presentation will become
apparent on reading the new.Article XXXII.
8. The texts of Articles drawn from the Chart.r appear in
Annex II in their latest form. In some cases, the texts of
the New York Draft have been used. In others, the texts pro-
pared by sub-committees and Commissions of this Conference have
been inserted. As was done in the New York Draft, those parts
of the Charter texts reproduced in the Agreement which would
appear to be inoperative because of the nature of the Agreement, E/PC/T/135
page 3
have been deleted or amonded accordingly. Naturally, the Arti-
cles contained in the Agreement will have to be redrafted to
conform to the Charter texts as finally agreed by the Prepara-
tory Committee.
9. It is suggested that discussion should be directed to
Parts I and III of tho proposed text, which contain the provi-
sions peculiar to the Agreement, and that the provisions of
Part Il insofar as they are identical in scope with the Drart
Charter should not be made the subject of discussion on details.
10 The Working Party is giving consideration to the form of
the Schedules of tariff concessions, as well as to other matters
which concern the Agreement, and proposes to submit a supple-
mentary report on those subjects in the near future. E/PC/T/135
page 4
SPECIFIC CMMENTS
Preamble
The Preamble has been redrafted so as to set out the main
objectives of the Governments sibnatories to the Agreement.
References to the Draft Charter and to the forthcoming United
Nations Conference on Trade and.Employment have been transferred
to a Protocol. In this manner, the text of the Agreement has
been made to conform more closely to the form of usual trade
agreements.
Part I
Article Il
A new paragraph 4 has been added to cover the second
footnote on Page 69 of the Report of the Drafting Committee,
regarding the re-classification of tariff items provided for
In the Schedules.
Part II
Article V
This article has been completed by adding the newly-
agreed redraft of paragraph 3 of Article 30 of the Charter
(export subsidies in connection with stabilization schemes) as
paragraph 6 (exemption from countervailing duties).
.article VIII
This new Article consists of paragraphs 3, 4, 6 and 7 of
Article 20 of the Charter, It was felt that provision should
be made in the Agreement in respect of marks of origin.
Articles XX and XXI
The Article on consultation, nullification or impairment
in the New York Draf t of the Charter has been divided into two
parts; .Article XX dealing with consultation and Article XXI
with nullification or impairment. E/PC/T/135
page 5
Part III
Article XXII
Paragraph 1 of this Article has been redrafted to cover
more satisfactorily the territerial application of the rights
and obligations arising under the Agreement. Paragraph 6
of this Article has been transferred from paragraph 5 of Article
XXV of the New York Draft.
Article XXIII
This Article replaces Article XXII of the New York Draft.
The Working Party felt that, as it is the desire of all
countries participating ln this Conference that the International
Trade Organization should come into being at the earliest
possible date, it would not be desirable to make formal
provision for the establishment of an interim Trade Committee.
The Working Party was of the opinion that arrangements for
joint action by the contracting: parties to the Agreement
should be of the most informal nature that the Agreement
permits and that there should be no suggestion that anything
in the nature of a provisional international trade organization
was being established.
The paragraph dealing with the voting power of each
contracting party, the voting majority required for decisions
of the Committee and procedures for wniving obligations under
the Agreement, have been left blank pending the decisions
of the Preparatory Committee on these subjects in connection
with Its present consideration of Chapter VIII of the Charter. E/PC/T/135
page 6
Article XXlV
paragraph 3 contains the substance of paragraph 4
of Article XXV of ths New York Draft, but now contempletes
the appointment of representatives to the Committee by
certain territories which are self-governing in matters
provided for by the Agreement
Paragraph 4 contains a formula regarding the entry
into force of the Agreement. The New York Draft provided
in Paragraph 4 of Article XXV that the Agreement will enter
into force on the deposit of instruments of acceptance by a
stated number of signatory Governments. However, the
Working Party felt it would be preferable to recommend
a percentage of trade which would have to be covered before
the Agreement came into force.
The proposed figure of 85% would require acceptance by
a substantial majority of the countries. of greatest importance
in world trade,while reserving a measure of flexibility to
cover the, case where not all countries accepted the Agreement.
The total trade, of the countries involved, given in
Annexure G, has been compilod on the basis of 1938 trade
(source: League of Nations' "Review of World Trade 1938"
and "Notwork of World Trade") and statistics in respect of
the latest twelve months for which statistics are available
(source :United Nations' "Monthly Bulletin of Statisties"
for April 1947). It has been necessary to make estimates
for the latest twelve months in respect of Burma, Ceylon,
Chine, Lebanon-Syria and the Union of South Africa, as well as
of a substantial Majority of the dependent territories concerned.
The possible margin of error, however, is small. It was felt
that the figures for 1938 (last normal pre-war year) and for the
latesttwelve months for which statistics are available (represent-
ative of post-war trade) give a famly exact picture of the E/PC/T/13 5
page 7
present relative trading importanoe .of the countries concerned.
Article XXV
The Working Party felt thet provision should be made for
withholding or withdrawing concessions negotiated in favour of
governments which signed the General Agreement and then either
did not become or ceased to be contracting parties. This new
Article is intended to cover a point which was not dealt with
in the Now York Dratt.
Article XXVI
In document E/PC/T/193, the Australian Delegation sub-
mitted an amendment ragarding the modification of the Schedules
of tariff concessions. When this amendment was considered in
sub-committee the Bolgian Delegation .advanced certain views
thereon. The Working Party has taken the views of both
Delegations into account in drafting this new Article, which
provides flexibility in the treatment granted under the Schedules.
after November 1, 1950. This date has been selected because
It is proposed in Article.XXXll thet the Agreement should be
put into force provisionally on November 1, 1947 and the Schedules
would therefore remain unchanged for an initial period of three
years,
Article XXVll
Paragraph 1 represents an. addition to the New York Draft
Of Article XXIII (2) on Amendments and provides for the
supersession of Part 11 of the Agreement by the Charter, thereby
taking into account the views expressed by the Polish Observer
In document E/PC/T/77.
The new text proposed by the Working Party should be com-
pared with Articles XXII and XXlll of the New York Draft. E/PC/T/135
page 8
Article XXIX
Paragraph 1 deals with the status of prior international
obligations, which was raised by the Cuban Delegation in
document E/FC/T/85.
Article XXX
This Article has been incorporated to define contracting
parties", because it was felt that it would be useful te define
this term, which appears throughout the Agreement.
Article XXXII.
The Working Party has explored the possibility of arranging
for the Agreement to be applied provisionally, in anticipation
of its definitive entry into force, particularly as consultation
with Delegations through the questionnaire contained in
document E/PC/T/100 showed that definitive entry into force
might not take place until about six months after signature.
It was felt that it would not be practicable unduly to
defer application of the tariff concessions. In addition,
it is desirable that early proof should be given to the world
of the benefits accruing from the present negotiations.
The date 1 November 1947 has been tentatively inserted
as that of the provisional application of the Agreement
without prejudice to the consideration which governments will
have to give to this very important question, but the members
of the Working Party believe that in the case of their
countries it light be possible for this date to be adopted.
The Working Party wishes to observe that this date has been
seleoted because - in view of the probable date of termination
of the tariff negotiations - it is the one which .allows E/PC/T/135
Delegations to take whatever stops are necessary to assure
provisional application, without entailing undue delay.
The members of the Working Party hope that the other
governments participating in the tariff negotiations may
also make the Agreement provisionally applicable as from
November 1, 1947.
It will be noted that application of Part II is to take
place "to the fullest extent not inconsistent with existing
legislation. The position of governments unable, to put Part
Il of the Agreement fully into force on a provisional basis.
Without changes in existing legislution is, therefore, covered.
In addition., provision is made for the withdrawal of
provisional application on short notice.
The Protocol of Signature
It is suggested that the Protocol should be Protocol of
signature and not a part of the General Agreement. Wording
has been transferred from the Preamble as drafted in New York
to the new Protocol, which contains an undertaking by the e
signatory governments, peniing the entry into force of a
Charter for an International Trade Organization, ta observe to
the fullest extent of their autherity the principles of the
draft Charter. Failure of a contracting party to carry out
the provisions of the Protocol would be subject to complaint
under the nullification or impairment provisions. With a view
to providing against possible delays of the entry into force
of a Charter it is stipulated that, should a Chapter not have
entered into force on November 1, 1948, the signatory
governments will meet again to consider in what manner
the Agreement should be supplemented. E/PC/T/13 5
page 10
ANNEX I
TO THE REPORT OF THE TARIFF NEGOTIATIONS WORKING PARTY
* ON THE GENERAL AGREEMENT ON TARIFFS AND TRADE
Draft Proposed by the
Tariff Negotiations
Working Party
PREAMBLE
PART I
Article I - General
most-favoured-nation
treatment
Article II - Schedules
of Concessions
PART II
Article III - National
Treatment on Internal
Taxation and Regulation
Article IV - Freedom of
Transit
Article V - Anti-dumping
and Counterrvailing Duties
COMPARATIV:E TABLE
Equivalent in New York
Draft of the Agreement
PREAMBLE
Article I - General
most-favoured-nation
treatment
Article VIII - Schedules
of concessions of part-
ioular products
Article II - National
Treatment on. Internal
Taxation and Regulation
article III - Freudom of
Transit e
Article IV - Anti-dump-
ing and Countervailing
Duties
Equivalent in New
York Text of the
Charter
Article 14
Article 32
Article 15
Article 16
Article 17
Par. 3 of
article 30
Article VI - Valuftion for Article V - Tariff
Customs Purposes Valuation
Article 18,
Par. 2 and 3
Article VII - Formalities
Connnected with Importa-
tion and Exportation
Article VIII - Marks of
Origin
: Article IX - Publication
-and Administration of
Trade Regulations
Advance Notice of
Restrictive Regulations
Article X - General
Elimination of
Quanti tative
Restrictions
Article XI - Restrictions
to Safeguard tho Balance
or Payments
Article VI - Customs
Formaliti es
Article VII - Publica-
tion and Administration
of Trade Regulations
Advance Notice of Re
strictive; Regulations
Article IX - General
Elimination of
Quantitative
Restrictions
Article X -
Restrictions to Safe-
guard the Balance ofe of
Payrments
Article 19,
Par. 1, 3, 4,
Article 20,
Par. 3,6,7 Gy
Article 21
Article 25
Article 26
5
7 E/PC/T/13 5
page 11
Draft Proposed by the
Tariff Negotiations
Working Party
Article XII - Non-discrim-
inatory administration of
Quentitative Restrictions
-Article XIII - Exceptions
to the. Rule or Non-
diacrimination
Article XIV -, Exchange
Arrangements
Article XV - Subsidies
Article XVI - Non-
discriminatory Treatment
on the part of State-
Trading Enterprises.
Article XVII - Adjust-
ments in Connection
with Economic
Development
article XVIII -Emergeney
Action on Imports of
Particular Products
Article XIX -
General Eeceptions
Article XX Consultation
Equivalent inNew York
Draft of the Agreement
Article XI - Non-dis-
criminatory Adminis-
tration of Quantitative
Restrictions
Article XII - Exceptions
to the Rules of Non-
discrimination
Article XIII - Exchange
Arrangements
Article XIV - General
Undertaking Regarding
Subsidies
Article XV - Non-dis-
criminatory Adminis-
tration of State-
Trading Enterprisee
Article XVI - Maintenance
of Domestic Employment
Article XVII - Govern-
ment Assistance to
Economic Devolopment
Article XVIII - Emergency
Action on Imports of
Particular Products
Article XX - General
Exceptions
.Article XIX - Con-
) sultation -
Article XXI - Nullification)Nullification or
or Impairment )Impairment
PART IIl
Equivalent in New
York Text of the
Charter
Article 27
Article 28
Article Z9
Article 30,
Par. 1
Article 13
Article 13
Article 34
Artiole 37
Article 35, Par.1
Article 35, Par.2
Article XXII - Territorel-
Applicat±on - Frontier
Traffic - Customs Unions
Article XXI - Territor-
ial Application -
Frontier Traffic -
Customs Unions
Article 38
Article XXIII - Joint
Action by the Contracting
Parti e s
Article XXII - Functions
and Structure of the
Interim Trade Committee
*Article XIV - Definitive Article XXV - Entry into
Entry into Force Force and Withdrawal
Article XXV - Withholding
or Withdrawal of Benefits E/PC/T/135
page 12
Draft Proposed by the
Tariff Negotiations
Working Party
Article XXVI - Modifica-
tion of Schedules
Eauivalent in New York
Draft of the Agreement
Equivalent in New
York Text. of the
Charter -
Article XXVII -
Amendments
Article XXIII - Revision,
Amendment and Termination
Article XXIV - Interpreta-
'tion and Settlement of
Disputes
Article XXVIII - With-
drawal
Article. XXV - Entry into
Force and Withdrawal
Article XXIX - Status of
prior International
Obligations
Article XXX - Status of
Contracting Parties
Article XXXI - Adherence
Article XXXII - Provi-
sional A plication
PROTOCOL OF SIGNATURE
Annex A - Preferential
Arrangements Referred to
in Sub-paragraph 2(a)
of Article I
Annex B - Preferential
Arrangements Among the
Territories of the French
Union Referred to in Sub-
paragraph 2(b) of Article
Article XXVI - Adherence
Article XXVII - The
Protocol
I
Annex C - Preferential
Arrangements Among the
Territories of the
Belgium-Luxembourg and
Netherlands Customs Union
Referred to in Sub-paragraph
2(b) of Article I
Annex D - Preferential
Arrangements Among the
Territories of the United
States of America Re-
ferred to in Sub-paragraph
2(b) of Article I E/PC/T/13 5
page 13
Draft Proposed by the
Tariff Negotiations
Working, Party. _
Annex E - Preferenitial
Arrangements between
Neighbouring Countries
Referred to in Sub-
paragraph 2(d) of
Article 1:
Annex F - Datas Estab-
iïshing Maximum Margi.ns
of Preference Referred
to in Paragraph 3 of
Article I
Annex G - Total Trade of
the Torritories of the
Signatory Governments to
the General Agreement on
Tariffs and Tradedo
Equivalent n'New York
Draft of the Agreement
Ecuivalent in New
York Text of the
arter D i t~-r - E/PC/T/13 5
page 14
TO THE
REPORT OF THE TA.RIFF NEGOTIATIONS WORKING PARTY
GENERAL AGREEMENTON TARRIFS AND TRADE
The Governments of the Commonwealth of Australia,
Belgium and Luxemburg, the United Status of Brazil, Canada,
the Rapublic of Chile; the Republic of China the Republic
of Cuba, the Czechoslovak Republic, the French Republic,
India, Lebanon, the Kingdom of the Netherlands, the Dominion
of New Zealand, the Kingdom: of Norway, Pakistan, Syria, the
Union of South Africa, the United Kingdom of Great Britain
and Northern Ireland, and the United States of Armerica;
Recognizing that their relations in the field of
trade and economic endeavor should be conducted with a view
to raisin; standards of living, ensuring full employment and
a large and steadily growing volume of real income and
effective demand, developing the full use of the resources of
the world and expanding the production and exchange of goods;
Being desirous of contributing to these objectives by
*entering into reciprocal .and mutually advantageous arrange-
ments directed to the substantial reduction of tariffs and
other barriers to trade and to the elimination of discrimin-
atory treatment in international commerce;
Have through their respective Representatives agreed
as follows: E/PC/T/135
page 15
Part I
Article I
[of. Article 14 of the Charter and Article I of New York Draft
of Agreement]
General Most-Favoured-Nation Treatment
1. With respect to customs duties and charges of any
kind imposed on or in connection with importation or exportation
or imposed on the international transfer of payments for imports
or exports, and with respect to the method of levying such
duties and charges, and with respect to all rules and formalities
iii connection with importation and exportation and with respect
to all matters referred to in paragraphs 1 and 2 of Article III,
any advantage, favour, privilege or immunity granted by any
contracting party to any product originating in or destined for
any other country shall be accorded. immediately and uncondition-
ally to the like product originating in or destined for all
other contracting parties respectively.
2. The provisions of paragraph 1 of this Article shall
not be construed to require the elimination of any preferences
in respect of import duties or charges which do not exceed the
levels provided for in paragraph 3 and which fall within the
following descriptions:
(a) Preferences in force exclusively between two
or more of the territories listed in Annex A of this
Agreement, subject to the conditions set forth therein.
(b) Preferences in force exclusively between two
or more territories which on 1 July, 1939, were connected
by common sovereignty or relations of protection or
suzerainty and which are listed in Annexes B, C and D
of this Agreement. E/PC/T/135
page 16
(c) Preferences in force exclusively between the
United States of Anerica and the Republic of
Cuba.
(d) Preferences in force excluisively between
neighboring countries listed in Annex E of
this Agreement.
3. The margin of preference on any product in respect
of which a preference is permitted under paragraph 2 of
this Article shall not exceed (a) in respect of any product
described in a Schedule to this Agreement, the margin by
which the scheduled most-favoured-nation rate exceeds the
scheduled preferential rate for such product, or if no
preferential rata is scheduled, the preferential rate for
such product in force on 10 April, 1947, (or, in the case
of a contracting party listed in Annex F of this Agreement,
in force on the date set forth in such Annex in respect of
such contracting party), or (b) in respect of any product
not described in such Schedule, the margin existing on
10 April, 1947, (or, in the case of a contracting party
listed in Annex F of this Agreement, in force on the date
set forth in such Annex in respect of such contracting party).
Article II
[of. Article 32 of the Charter and Article VIII of New York Draft
of Agreement]
Schedules of Concessions
1. Each contracting party shall accord to the commerce of
the other contracting parties treatment no less favourable than
that provided for in the appropriate Schedule annexed to this
Agreement and hereby made an integral part of Part I thereof.
2. No contracting party shall alter its method of deter-
mining dutiable value or of converting currencies so as to
impair the value of any of the concessions provided for in the
appropriate Schedule annexed to this Agreement. E/PC/T/13 5
page 17
3. If any contracting party, after the day of signature
of this Agreement, establishes or authorizes, formally or in fact,
an effective monopoly of the importation of any product for which
a maxirmum rate of duty is provided in the appropriate Schedule
annexed to this Agreement, the price for such imported product
charged by the monopoly in thc home market shall not exceed the
landed cost (before payment of any duty) by more than such
maximum duty; after due allowance for internal taxes., trans-
portation, distribution and other expenses incident to purchase,
sale or further processing and for a reasonable margin of
profit. For the purpose of applying this margin regard may
be had to average landed costs and selling prices of the monopoly
over recent periods. The monopoly shall, as far as
administratively practicable, and subject to the other
provisions of this e import from the territories of
contracting parties and offer for sale at prices charged within
sucli maximum margin such quantibies of tho product as will be
sufficient to satisfy the full domestic demand for the imported
product, account being taken of any rationing to consumers of
the imported and like domestic product which may be in force
at that time.
4. If any contracting party considers that a product is
not receiving from another contracting party the treatment which
the first contracting party believes to have been contemplated by
a concession provided for under paragraph 1 of this Article, it
shall bring the matter directly to the attention of the other
contracting party. If the other contracting party agrees that the
treatment contemplated was that claimed by the first contracting
party, but declares that such treatment cannot be accorded because
a court or other proper authority has ruled that the product
involved is not legally classifiable under the tariff laws of
such contracting party so as to permit the treatment admittedly E/PC/T/135
page 18
contemplated at the time of the signature of this agreement,
the two contracting parties, together with any other contracting
parties concerned, shall enter promptly into further negotiations.
with a view to a compensatory adjustment of the matter.
Part II[
Article III
National Teatmrent on Internli Taxai.on and egzulation
o-f. Article 15 of the Chareor and Article II of New
York Draft of Ageeceat]7
1. The products of any contracting party imported into
the territory of any oter contracting party shall be exempt from
internal taxes andoàther ineronal charges of any kind higher than
those applied directly or indirectly to lieo products of national
origin. Moreover, in cases in which there is no substantial
domestic production oflike prdcucts of national origin, no
contracting party shall apply new or increased internal taxes on
the products of oher contracting p arties for the purpose of
affording protection to the orodutAion of directly cmipetitive
or substitutable products which are not similarly taxed.
Existing internal taxes of the kind ecferecd to in the preceding
sentence shall ec subject to negotiation for teoir reduction or
elimination.
2. The products of any contracting party imported into
the territory of ayr oteor opntacting party shall be accorded
treatment no less favorable than ta^t accorded to like products
of national origin in respect of all laws, regulations and
requiremonts affecting thiïr internal sale, offering for sale,
+urchase <transportation, distribution, or use. This paragraph
shall not be construed to prevent differential transportation
charges which are bseed exclusively on the economic operation
of the means of transport and oet on the nationality of the
kroduct. E/PC/T/135
page 19
3. In applying the principles of paragraph 2 of thisls
Artielu to Ietcrnal cuantitate rcegulations relating to the mix-e ix-
turc,epsrocasing or usproducts in ssein pecifatd.nts or tq o pro-
portions, tnt cor.racparties shall observe the following projo-
vons:Or,
(a) nogrerulationash1ll me iade which, mally orly in
affecteguiauies than nry speodfia °nourt pr nropor-
tion ofethé product ie pesruct wh -bish eucegula-1:
tions erappaplied must,e supplied from domest
cosrece.
(b) no contr.ating !prty shl-alfor:.aly or in ofeofec
restrict thrce mixing, processing of use of at.rod
of vhlwhi there lsio snubcanstantial estic Droduction
vitw a vIeriew aofordin, groptceion to thé ceIdomesic
production of .a direacly Ccmpetit1ive or nsuositutible
product.
4. The cpovisioncsof pnanaraDp 3 of this Article sh1ll not
apnpy to:
(r) Any menaur. of lnternal quan-titative control in force co i
territory or anyncoucraoting party on eh' day of the si
ture ofthis AgreementProvidedthat nsy :umesure which "'iot
as in co wlict -ith the provioiona Og ppra-raih 3 of
thiE Arsiall fh'i. not be modified toethement ofnt of
inDortss and hall be subjoct ga nelotnatior for its
limitatlin, ilberaiizatlonlimination. [or . or- (b)
Any internal quantitative regulatppn arnlied by any
contracting party havqng ccuivalent effect to any
lmnort restriction permitoed ta that contracting
party unuerpstb-taragraeh 2(¢) of Arti.]e XJ
I lnternal regulationsarelEtiog inematograph filma.]l';% Page 20
6. The provisions of this ArticIe shall not apply to the
procurement by governmental agencies of produc ts purchased for
governmental purposes ana not for resule or use in the production
of goods for sale, nor shall. they be construed to preveat the
peyment to domestie producers only of subsidies provided for
under Article XV, including payments to domestic producers
derived from the proceeds of internal vaxes or other internal
charges and subsidies effected through.governmental purchases
of domestic roducts.
Article IV
[of. Article 16 of the Charter and Article YIII of New York
Draft of Agreement]
Freedom of transit.
1. Goods (including baggage), and. also vessels and other
means of transport shall. be deemed to be in transit across the
territory of e contracting party when the passage across such
territory with or without transhipment warehousing, breaking
bulk, or change in the mode of transport, is only a portion of
a. complete journey, beginning and terminating beyond the frontier
of the contracting party across whose territory the traffic
passes. Traffic of this nature. is termed in this Article
"traffic in transit. The provisions of this Article Shell not
apply to the operation. of aircraftin transit, bat shall applyY
to air taensit of goods and baggage.
2. There sall1 be freedomocf transit through the territory
of contaccting a.rties. via the routes most convenient for inter-
netional transit o3r ta ffic. in transit too;r from the territory
of other contracting parties No distinctions hall be made which
is based on the farg of vessels, the. lapce of origin, eoacrture,
entry, exit or destination, or on eny circumstances releting to
the ownership o goods, or vessels or other maens of ra:nsport.
3. Any contreciLng airty acy eGguire tart traffic in
transit throuh its aArritoyv be entered at the prp!er customs
house, but, except in cases of failure' to comply with applicable E/PC /T/ 13 5
Page 21
customs laws and regulations, such traffic coming from or going
to the territory of other contracting parties shall not be subject
to any unnecessary delays or restrictions and shall be exempt from
customs; duties and from all transit duties or other charges
imposed in respect of transit, expect charges for transportation
or those commensurate with administrative expenses entailed by
transit or with the, cost of services rendered.
4. All charges and regulations imposed by contracting
parties on traffic in transit to or from the territory of other
contracting parties shall be reasonable, having regard to the
conditions of the traffic .
5. With respect to all chages, regulations and formalities
in connection with transit, each contracting, party shall accord
to traffic in transit to or from the territory of any other
contracting party treatment no less fevourable than the treatment
accorded to traffic in traffic to or from ainy third country.
6. Each contracting party shall accord to products which
have been in transit through the territory of any other contracting
party treatment no less favourable than that which would have been
accorded to such products had they been transported from their
place of origin to their destination without going through the
territory of such other contracting party. Any contracting party
shall, however, be free to maintain its requirements of direct
consignment (expédition directe) existing on the day of the
signeture of this Agreement, in respect of any goods in regard to
which such direct consignment is a requisite condition of
eligibiligy for entry of the goods at preferential rates of duty,
or hss relation to the country's prescribed method of valuation for
duty purposes. Page 22
Article V
[cf. Article 17 and Para . 3 of Article 30 of the Charter and
Article IV of New York Draft of Agreement]
Anti-Dumping and Countervailing. Duties
1. No anti-dumping duty or charge shall be levied on any
product of the territory of any contracting party imported into
the territory of any other contracting party in excess of an
amount equal to the margin of dumping under which such product is
being imported. For the purposes of this Article, the margin of
dumping shall be understood to mean the amount by which the price
of the product exported from one country to another is less than
(a) the comparable price, in the ordinery course of commerce, for
the like product when destined for consumption in the exporting
country, or, in the absence of such domestic price, is less than
either (b) the highest comparable price for the like product for
export to any third country in the ordinary course of commerce , or
(c) the cost of production of the production the country of origin
plus a reasonable addition for selling cost and profit, with due
allowance in each case for differences in conditions and terms of
sale, for differences in taxation, and for other differences
affecting price comparability.
2. No countervaling duty shall be levied on any product
of the territory of any contracting party imported into the
territory of another contracting party in excess of an amount equal
to the estimated bounty or subsidy determined to have been granted,
directly or indirectly, on the manufacture, production or export of
such product in the country of origin or exportation, including
any special subsidy to the transportation of a particular product.
The term "countervalling duty" shall be understood to man a
special duty levied for the purpose of offsetting, any bounty or
subsidy bestowed, directly or indirectly, upon the manufacture,
production or exportation of any any merohandise. E/PC/T/135
Page 23
3. No product of the territory of any contracting, party
imported into the territory of any other contracting party shall
be subject to anti-dumpintg or countervailing duty by reason of the
exemption of such product from duties or taxes borne by the like
product when consumed in the country of origin or exportation, or
by reason of the refund of such duties or taxes.
4. No product of the territory of any contracting party
imported into the territory of any other contracting party shall
be subject to both anti-dumpirng and countervailing duties to
compensate for the same situation of dumping or export
subsidization.
5. No contracting party shall levy any anti-dumping or
countervailing duty or charge on the importation of any product
of the territory of another contracting party unless it determines
that the effect of the dumping or subsidization, as the case may be,
is such as to cause or threaten material injury to an established
domestic industry, or is such as to prevent or materially retard.
the establishment of a domestic industry. The contracting parties
acting in their joint capacity as provided for in Article XXIII
(hereinafter referred to as the Committee) are authorized to
waive the requirements of this paragraph so as to permit a
contracting party to levy an anti-dumping duty or countervailing
duty on the importation of any product for the purpose of offsetting
dumping or subsidization which causes or threatens material injury
to an industry in the territory of another contracting party
exporting the product concerned to the importing contracting party.
6./ A system for the stabilization of the domestic price or
of the return to domestic producers of a primary commodity,
Independently of the movements of export prices, which results at
times in the sale of the product for export at a price lower than E/PC/T/135
Page 24
the comparable price charged foi the like product to buyers in the
domestic market, shall be considered not to result in material
injury within the meaning of Paragraph 5 of this Article, if it is
determined by consultation among the contracting parties sub-
stantially interested in the product concerned
(a) that the systems has also resulted in the sale of the product
for export at a price higher than the comparable price
charged for the like product to buyers in the domestic
market; and
(b) that the system is so operated either because of the effective
regulation of production or otherwise as not to stimulate
exports unduly or otherwise seriously prejudice the
Interests of other contracting parties.
7. No measures other than anti-dumping and countervailing
duties or charges shall be applied by any contracting party for the
purpose of off setting dumping or subsidization.
Article VI
[cf. Paragraphs 2 and 3 of Article 13 of the Charter and
Article V of New York Draft of Agreement
Valuation for Customs-Purposes
1. The contracting parties recognize the validity of the
general principles of tariff valuation set forth in the following
subparagraphs, and they undertake to give effect to such
principles, in respect of all pproducts subject to duties, charges
or restrictions on importation and exportation based upon or
regulated in any manner by value, at the earliest practicable date.
Moreover, they shall, upon a request by another contracting party,
review the operation of any of their laws or regulations relating
to value for duty purposes in the light of these principles.
The Committee is authorized to request from contracting parties
reports on stops taken by them in pursuance of the provisions
of this paragraph. E/PC /T/135
Page 25
(a) (i) The value for duty purposes of imported merchandise
should be based on the actual value of the imported merchandise
on which duty is assessed or of like merchandise, and should not
be based on the value of merchandise of national origin or on
arbitrary or fictitious values.
(ii) "Actual value" should be the price at which, at
a time and place determined by the legislation of the country of
importation and in the ordinary course of trade, such or like
merchandise is sold or offered for sale under fully competitive
conditions. To the extent to which the price of such or like
merchandise is governed by the quantity in a particular transac-
tion, the price to be considered should uniformly be related to
either comparable quantities or quantities not less favourable
to importers than those in which the greater volume of the
merchandise is sold in the trade between the countries of
exportation and importation.
(iii) When the actual value is not ascertainable in
accordance with (a) (ii), the value for duty purposes should
be based on the nearest ascertainable equivalent of such value.
(b) The value for duty purposes of any imported product
should not include. the amount of any internal tax applicable
within the country of origin or export, from which the imported
product has been or will be relieved by means of refund or made
exempt.
(c) (i) Except as otherwise provided in sub-paragraph
(c), where it is necessary for thi purposes of sub-paragraph
(a) for a contracting party to convert into its own currency
a price expressed in the currency of another country,. the
conversion rate of exchange to be used should be based on the
par values of the currencies involved as established pursuant E/PC/T/135.
Page 26
to the Articles of Agreement of the International Monetary Fund
or by special exchange agreements entered into pursuant to
Article XIV of this Agreement.
(ii) Where no such par value has been established the con-
version rate shall reflect effectively the current value of such
currency in commercial transactions.
(iii) The Committee in agreement with the International
Monetary Fund, shall formulate rules governing the conversion by
contracting parties of any foreign currency in respect of which
multiple rates of exchange are maintained consistently with the
Articles of Agreement of the International Monetary Fund. Any con-
tracting party may apply such rules in respect of such currencies
for the purposes of paragraph 2(a) of this Article as an alterna-
tive to the use of par values. Until such rules are adopted by
the Committee, any contracting party may employ in respect of any
such foreign currency rules of conversion for the purposes of para-
graph 2(a) which are designed to reflect effectivcly the value of
such currency in commercial transactions,
(iv) Nothing in sub-paragraph (c) shall be construed to
require any contracting party to alter the method of converting
currencies for Customs purposes which is applicable in its terri-
tory on the day of the signature of this Agreement in such a
manner as to increase generally the amounts of duty payable.
2. The bases and methodss for determining the value of
products subject to duties or other charges or restrictions
based upon or regulated in any manner by value should be
stable and should be given sufficient publicity to enable
traders to estimate, with a reasonable degree of certainty,
the value for customs purposes. E/PC/T/1 35
Page 27
Article VII
[cf.Paragraphs 1, 3, 4 and 5 of Article 19 of the Charter
and Article VI of New York Draft of Agreement]
Formalities Connected with Importation and Exportation
1. The contracting parties recognize that fees and
charges, other than duties, imposed by governmental authorities
on or in connection with importation or exportation should be
limited in amount to the approximate cost of services rendered
and should not represent an indirect protection to domestic
products or a taxation of imports or exports for fiscal
purposes. They also recognize the need for reducing, the
number and diversity of such fees and charges, for minimizing
the incidence and complexity of import and export fromalities,
and for decressing and simplifying import and export
documentation requirements.
2. The contracting parties shall give effect to
the principles and objective of paragraph 1 of this Article
at the earliest practicable date. Moreover, they shall,
upon request by another contracting party, review the
operation of any of their laws and regulations in the
light of these principles.
3. Contracting parties shall not collect or other-
wise enforce substantial penalties for minor breaches of
customs regulations or procedural requirements. In
particular, no penalty in respect of any omission or
mistake in customs documentation which is easily rectifiable
and obviously made without fraudulent intent or gross
negligence shall be greater than necessary to serve merely
as a warning. E/PC/T/135
Page 28
4. The provisions of this Article shall extend to fees, charges,
formalities and requirements imposed by governmental authorities
in connection with importation and exportation, including those
relating to:
(a) Consular transactions, such as consular irvoices
and certificates;
(b) Quantitative restrictions;
(c) Licensing;
(d) Exchange control;
(e) Statistical services;
(f) Documents, documentation and certification;
(g) Analysis and inspection; and
(h) Quarantine sanitation and fumigation.
Article VIII
[cf.Paragraphs 3, 4, 6 and 7 of Article 20 of the Charter7
Marks of Origin
1.. Whenever administratively practicable, contracting parties
should permit required marks of origin to be imposed at the time
of importation.
2. The laws and rogulations of contracting parties relating to
the marking of imported products shall be such as to permit com-
pliance without seriously damaging the products, or materially
reducing their value, or unreasonably increasing their cost.
3. As a general rule no special duty or penalty should be
imposed by any contracting party for failure to comply with marking.
requirements prior to importation unless corrective marking is
unreasonably delayed or deceptive marks have been affixed or the
required marking has been intentionally omitted.
14. The contracting parties shall cooperate with each other
with a view to preventing the use of trade names in such a manner
as to misrepresent the true origin of a product, to the detriment E/PC/T/135
Page 29.
of the distinctive regional or geographical names of products
of a contracting party, which are protected by the legislation
of such contracting party. Each contracting party shall accord
full and sympathetic consideration to such requests or
representations as may be made by any other contracting party
regarding the application of the undertaking set forth in the
preceding sentence to names of products which have been
communicated to it by the other contracting party.
Article IX
[Cf. ArtIcle 21 of the Charter and Article VII of New York
Draft of Agreement ]
Publication and Administration of Trade Regulations -
Advance Notice of Restrictive Regulations
1. Laws, regulations, judicial decisions and administrative
rulings of general application made effective by any contracting
party, pertaining to the classification or the valuation of
products for customs purposes, or to rates of duty, taxes or
other charges, or to requirements, restrictions or prohibitions
on imports or exports or on the transfer of payments therefor,
or affecting their sale, distribution, transportation or
insurance, or affecting their warehousing, inspection, ex-
hibition, processing, mixing or other use, shall be published
promptly in such a manner as to enable traders and governments
to become acquainted with them. Agreements in force between the
government or a governmental agency of any contracting party
and the government or governmental agency of any other country
aftecting international trade policy shall also be pub.-
lished.This paragraph shall not require any contracting party
to disclose confidential information which would impede law
enforcement, or otherwise be contrary to the public interests
or would prejudice the lagitimate business interests of
particular enterprises, public or private. E/PC/T/135
Page 30
2. No measure of genoral application taken by any contracting
party effecting an advance in a rate of import duty or other
charge under an established and uniform practice or imposing a
new or more burdensome requirement, restriction or prohibition
on imports, or on the transfer of' the payments therefor, shall
be enforced before such measure has been lagally published.
3. (a) Each contracting party shall administer in a uniform,
impartial and reasonable manner all its laws, regulations, decisions
and rulings of the kind described in paragraph 1 of this Article.
Moreover, contracting parties shall maintain, or institute as soon
as practicable, judicial, arbitral or administrative tribunals
or procedures for the purpose inter alia, of the prompt review and
correction of administrative action relating to customs matters.
Such tribunals or procedures shall be independent of the agencies
entrusted with administrative enforcement and their decision shall
be implemonted by and shall govern the practice of such agencies
unless an appeal is lodged with a court or tribunal of superior
jurisdiction within the time prescribed for appeals to be lodged by
importers, provided that the central administration of such agency
may take steps to obtain a review of the matter in another proceed-
ing if there is good cause to believe that the decision is
inconsistent with established principles of law or the actual facts.
(b) The provisions of sub-paragraph (a) of this paragraph
shall not require the elimination or substitution of procedures
in force in the territory of a contracting party on the day of
the signature of this Agreement which in fact provide for an ob-
jective review of administrative action even though such procedures
are not fully or formally independent of the agencies entrusted with
administrative enforcement. Any contracting party employing such
procedures shall, upon request, furnish the Committee with full
information thereon in order that the Committee may determine Page 31
whether such procedures confom to the requirements of this sub-
paragraph.
Article X.
General Elimination of Quantitative Restrictions
[cf. Article 25 of the Charter and Article IX of New York
Draft of Agreement]
1. Except as otherwise provided in this Agreement, no pro-
hibitions or restrictions other than duties, taxes or other
charges, whether made effective through quotas, import licenses
or other measures, shall be instituted ormaintained by any contract-
ing party on the importation of any product of the territory of
any other contracting party. or on the. exportation or sale for
export of any product destined for the territory of any other
contracting party.
2. The provisions of paragraph 1 of this Article shall not
extend to the following:
(a) Prohibitions or restrictions on imports or exports
instituted or maintained during the early post-war
transitional period which are essential to
(i) The equitable distribution among the several
consuming countries of products in short supply,
whether such products are owned by private interests
or by the government of any contracting, party;
(li) The maintenance of wartime price control by
a contracting party undergoing shortages subsequent
to tho war;
(iii) The orderly liquidation of temporary surpluses
of stocks owned or controlled by the government of
any contracting party or of industries developed in
the territory of any contracting party owing to the
exigencies of the war, which it would be uneconomic E/PC/T/135
Page 32
to maintain in normal conditions Provided that pro-
hibitions or restrictions for this purpose may not be
instituted by any contracting party after the date on
which this Agreement enters into force except after
consultation with other interested contracting parties
with a view to appropriate international action.
Import and export prohibitions and restrictions insti-
tuted or maintained under sub-paragraph (a) shall be re-
moved as soon as the conditions giving rise to them have
ceased, and in any event, not later than 1 July 1949,
Provided that this period may, with, the concurrence of the
Committee, be extended in respect of any product for further
periods not to exceed six months each.
(b) Export prohibitions or restrictions temporarily applied
to relieve critical shortages of foodstuffs or other essential
products in the territory of the exporting contracting party.
(c) Import and export prohibitions or restrictions necesssary
to the application of standards for the classification and
grading of commodities in international trade.
(d) Import restrictions on any agricultural or fisheries
product, imported in any form, necessary to the enforcement
of governmental measures which operate (i) to restrict the
quantities of the like domestic product permitted to be
marketed or produced, or (ii) to remove a to temporary sur-
plus of the like domestic product by making the surplus
available to certain groups of domestic consumers free of
charge or at prices below the current market level. Any E/PC/T/135
Page 33
contracting party imposing restrictions on the importation
of any product pursuant to this sub-paragraph shall give
public notice of the total quantity or value of the product
permitted to be imported during a specified future period
and of any change in such quantity or value. Moreover, any
restrictions applied under (1) of this sub-paragraph shall
not be such as will reduce the total of imports relative to
the total of domestic production, as compared with the pro-
portion which might reasonably be expected to rule between
the two in the absencee of the, restrictions. In determining
this proportion the contracting party shall pay due regard
to the proportion prevailing during a previous representative
period and to any special factors which may have affected or
may be affecting the trade in the product concerned. The
contracting party shall consult with any other contracting
parties which are interested in the trade in question and
which wish to initiate such consultations.
(e) Import and export prohibitions or restrictions on pri-
vate trade for the purpose of establishing a new, or main-
taining an existing, monopoly of trade for a state-trading
enterprise operated under Article XVI.
Article XI
Restrictions to Safeguard the Balance of Payments
[cf. Article 26 of the Charter and Article X of New York
Draft of Agreement/
1. Contracting parties may need to use import restrictions as
a means of safeguarding their external financial position and as
a step toward the restoration of equilibrium in their balance of
payments on a sound and lasting basis, particularly in view of
their increased demand for imports needed to carry out their
domestic employment, reconstruction, development or social policies.
Accordingly, notwithstanding the provisions of Article X, any E/PC/T/135
Page 34
contracting party may restrict the quantity or value of merchandise
permitted to be imported insofar as this is necessary to safeguard
its balance of payments and monetary reserves.
2. The use of import restrictions under paragraph 1 of this
Article shall be subject to the following requirements:
(a) No contracting party shall institute (or maintain) new
restrictions or intensify existing restrictions except to the
extent necessary to forestail the omminent threat of,
or to stop, a serious decline in the level of its monetary
reserves or, in the case of a contracting party with very low
monetary reserves, to achieve a reasonable rate of increase in its
reserves. Due regard should be paid in each case to any special
factors which may b- affecting the level of the contracting
party's 'reserves, to any commitments or other circumstances which
may be affecting its need for reserves, and to any special credits
or other resources which may be available to protect its reserves.
(b) Contracting parties shall eliminate the restrictions
when conditions would no longer justify their impostion (or
maintenance) under sub-paragraph (a), and shall relax them pro-
gressively as such conditions are approached.
(c) Contracting parties shall not apply the restrictions in
such a manner as to exclude completely imports of any class of
goods.
3. (a) Any contracting party which is not applying restrict-
ions under paragraphs 1 and 2 of this Article, but which is con-
sidering the need for their institution, shall, before insti-
tuting such restrictions (or, in circumstances in which prior
consultation is impracticable, immediately following upon the
institution of such restrictions) consult with the Committee as
to the nature of its balance-of-payments difficulties, the
various corrective measures which may be available, and the
possible effects of such measures on the economies of other E/PC/T/135
Page 35
contracting parties. The Committee shall invite the Inter-
national Monetary Fund to participate in the consultations,
No contracting party shall be required during such discussions
to indicate in advance the choice or timing of any particular
measures which it may ultimately determine to adopt.
(b) The Committee may at any time invite any contracting
party applying import restrictions under paragraphs1 and 2 of
this Article to consult with it about the for or extent if the
restrictions, and shall invite a contracting party substantially
intensifying such restrictions to consult accordingly within
thirty days. Contracting parties thus invited shall participate
in such discussions. In the conduct of such discussions the
Committee shall consult the International Monetary Fund and any
other appropriate inter-governmental organization, in particular
with regard to the alternative methods available to the contract-
ing party in question of meeting its balance-of-payments
difficulties. The Committee shall, not later than two years from
the day on which this Agreement enters into force, review all
restrictions existing on that day and still applied under para-
graphs 1 and 2 at the time of the review.
(c) Any contracting party may consult with the Committee
with a view to obtaining the price approval of the Committee for
restrictions which the contracting party proposes under paragraphs
1 and 2 of this article to maintain, intensify or institute, or
for the maintenance, intensification or institution of restrictions
under specified future conditions. The Conmittee shall invite
the International Monetary Fund to participate in the consul-
tations. As a result of such consultations, the Committee may
approve in advance the maintenance, intensification or institu-
tion -of restrictions by the contracting party in question insofar
as the general extent, degree and duration of the restrictions E/PC/T/135
Page 36
are concerned. To the extent to which such approval has been
given the action of the contracting party applying restrictions
shall not be open to challenge under sub-paragraph (d), on the
ground that such action is inconsistent with the provisions of
paragraphs 1 and 2 of this Article,
(d) Any contracting party which considers that any other
contracting party is applying airport restrictions under para-
graphs 1 and 2 in a manner inconsistent with the provisions of
those paragraphs or of Articles XII and XIII, or in a manner which
unnecessarily damages its commercial interests, may bring the
matter for discussion to the Committee. The contracting party
applying the restrictions shall then participate in discussions
of the reason, for its action. The Committee, if it is satis-
fied that there is a prima facie case that the complaining
party's interests are adversely affected, may after consult-
ation with the International Monetary Fund on any matter fall-
ing within the competence of the Fund, and, if it considers it
desirable, after submitting observations to the parties with
the aim of achieving a satisfactory settlement of the matter in
question, recommend the withdrawal or modification of restrict-
ions which it det-rmines are being applied in a manner incon-
sistent with the provisions of paragraphs 1 and 2 of this
Article or of Articles XII and XIII or in a manner which
unnecessarily damages the interests of another contracting party.
If the restrictions are not withdrawn or modified in accordance
with the recommendation of the Committee within sixty days,
such other contracting party or parties shall be released
from such obligations incurred under this Agreement towards the
contracting party applying the restrictions as the Committee may
approve.
(e) The Committee in reaching its determination under
sub-paragraph (d) shall not recommend the withdrawal or E/PC /T/135
general relaxation of restrictions on the ground that the existing
or prospective balance-of-payments difficulties of the contracting
party in question could be avoided by a change in that contracting
party's domestic employment, reconstruction, development or social
policies. In carrying out such domestic policies, however, con-
tracting parties shall pay due regard to the need for restoring
equilibrïum in the balance of payments on a sound and lasting
basis .
4. In giving effect to the restrictions on imports under
this Article, a contracting party may restrict imports of products
according to their relative essentiality in such a way as to give
priority to the importation of products required by its domestic
employment, reconstruction, development or social policies and
programmes. In so doing the contracting party shall avoid all
unnecessary damage to the commercial interests of other con-
tracting parties.
5. If there is persistent and widespread application of
import restrictions under this Article, indicating the existence
of a general disequilibrium which is restrictings international
trade. the Ccmmittee shall seek consultation with the International
Monetary Fund. The Commiittee may them, in collaboration through-
out ...-. ie Fund, initiate discussion, to consider whether
other measures might be taken, either by those contracting parties
whose balances of payments are under pressure or by those con-
tracting parties whose balances of payments are tending to be
exceptionally favourable; or by any a propriate inter-governmental
organization, to remove the underlying, causes of the dis-
equilibrium. On the invitation of the Committee contracting
parties shall participate in such discussions.
6. Contracting parties recognize that during .e next few
years all of them will be confronted in varying degrees with E/PC/T/135
Page 38
problems of economic adjustment resulting from the war.
During this period the Committee shall, when required to take
decisions under this Article or under Article XIII, take full
account of the difficulties of postwar adjustment.
7. Throughout this Article and Articles XII and XIII the
phrase "import restrictions" includos the restriction of
imports by state-trading enterprises to an extent greater than
that which would be permissible under Article Il. E/PC/T/135
Page 39
Article XII
Non-discriminatory Administration of Quantitative
Restrictions
[cf. Article 27 of the Charter and Article XI
of New York Draft of Agreement]
1. No prohibition or restriction shall be applied by any
contracting part on the importation of any product of the
territory of any other contracting party or on, the exportations
of any product destined for the territory of any other con-
tracting party, unless the importation of the llke product
of all third countries or tho exportation of the like product
to all third countries is similarly prohibited or restricted.
2. Contracting parties shall. observe the following provisions
in applying import restrictions:
(a) The administration of the restrictions should be carried
out in such a way as to result in a distribution of trade which
approaches as closely as possible to the shares which the various
contracting parties might be expected to obtain as the result
of international competition in the absence of restrictions.
(b) Wherever practicable, quotas representing the total
amount of permitted imports (whether allocated among supplying
countries or not) shall be fixed, and notice given of their
amount in accordance with paragraph 3(b) of this Article.
(c) In cases in which quotas are not practicable, the
restrictions may be applied by means of import licenses or
permits without a quota.
(d) Import licenses or permits, whether or not issued in
connection with quotas, shall iot (save for purposes of operating
quotas allocated in accordance with sub-paragraph (e)) require
or provide that the license or permit be utilized for the
importation of the product concerned from a particular country
or source. E/PC/T/135
Page 40
(e) In cases in which a quota is allocated among supply-
ing countries, the shares of the various supplying contracting
parties should in principle be determined in accordance with
commercial considerations such as, e.g., price, quality and
customary sources of supply. For the purpose of appraising
such commercial considerations, the contracting parties applying
the restrictions may seek agreement with respect to the
allocation of shares in the quota with all other contractin-
parties having a substantial interest in supplying the product
concerned. In cases in which this method is not reasonably
practicable, the contracting party concerned shall allot to
contracting parties having a substantial interest in supplying
the product, shares based upon the proportions supplied from
tho territories of such contracting parties during a previous
representative period, of the total quantity or value of imports
of the product, due account being taken of any special factors
which way have affected or may be affecting the trade in the
product, No conditions or formalities shall be imposed which
would prevent any contracting party from utilizing fully the
share of any such total quantity or value which has been allotted
to it, subject to importation being made within any prescribed
period to which the quota may relate,
3. (a) In cases in which import licenses are issued in
connection with import restrictions, the contracting party
applying the restriction shall provide, upon the request of any
contracting party having an interest in the trade in the product
concerned, all relevant :information as to tho administration of
the restriction, the import lienses granted over a past recent
period and the distribution of such licenses among supplying
countries, provided that there shall be no obligation to supply
information as to the names of importing or supplying enterprises. page 41
(b) In the case of import restrictions involving the fixing
of quotas, the contracting party applying the restrictions shall
give public notice of the total quantity or value of the product
or products, which will be permitted to be imported during a
specified future period and of any change in such quantity or
value. Any supplies of the product in question which were en
route at the time at which public notice was given shall not
be excluded from entry, provided that they may be counted, so
far as practicable, against the quantity permitted to be imported
in the period i.n question, and also, whore necessary, against
the quantities permitted to be imported in the next following
period or perioded, and provided further that if any contracting
party customarily exempts from such restrictions products entered
for consumption or withdrawn from warehouse for consumption
during a period of thirty days after the day of such public
notice, such practice shall be considered full compliance with
this sub-paragraph.
(c) In the case of quotas allocated among supplying countries,
the contracting party applying the restriction shall promptly
inform all other parties having an interest in supplying the
product concerned of the shares in the quota, by quantity or value,
currently allocated to the various supplying countries and shall
give public notice thereof.
With regard to restrictions applied in accordance with
sub-paragraph 2(e) of this Article or under sub-paragraph 2(e)
of Article X, the selection of a representative period for any
product and the appraisal of any special factors affecting the
trade in the product shall be made initially by the contracting
party applying the restriction, provided that such contracting
party shall, upon the request of any other contracting party
having a substantial interest in supplying that product or E/PC/T/135
page 42
upon the request of the Committee consult promptly with the
other contracting party or with the Committee regarding the
need for an adjustment of the base period selected or for
the re-appraisal of the special factors involved.
5, The provisions of this Article shall apply to any tariff
quota established or maintained by any contracting party and
insofar as is applicable the principles of this Article shall
also extend to export restrictions and to any internal
regulations or requirements under paragraphs 3 and 4 of
Article III.
Article XIII
Exception to the Rule of Non-discrimination
[cf. Article 28 of the Charter and Article XII
of New York Draft of Agreement]
1, The provisions of Articles X, XI and XII shall not preclude
(a) Restrictions with equivalent effect to exchange
restrictions authorized under Section 3(b) of Article VII
of the Articles of Agreement of the International Monetary Fund;
(b) Prohibitions or restrictions in accordance with sub-
paragraph 2(a)(i) or 2(d) of Article X;
(c) Conditions attaching to exports :..ich are necessary to
ensure that an exporting country receives for its exports
its own currency or the currency of any member of the Inter-
national Monetary Fund specified by the exporting country;
(d) Restrictions in accordance with Article XI which either
(1) are applied against imports from other countries but
not as between themselves by a group of territories having a E/PC/T /13 5
common quota in the International Monetary Fund, provided
that such restrictions are in all other respects consistent
with Article XII, or
(ii.) Assist in the period until 31 December 1951, by
measures not involving substantial departure from the provisions
of Article XII a country whose economy has been disrupted by war;
(c) Restrictions in accordance with Article XI which both
(i) provide a contracting party with additional imports
above the maximum total of imports which it could afford in the
light of the requirements of paragraph 2 of Article XI if its
restrictions were consistent with Article XII and
(ii) have an effect equivalent to exchange restrictions,
which are permitted to that contracting party under the Articles
of Agreement of the International Monetary Fund or under the terms
of any special exchange agreement, which may have been made
between the contracting party and the Committee under Article XIV,
provided that a contracting party, which is not applying
restrictions on payments and transfers for current international
transactions, may apply import restrictions under (i) of this sub-
paragraph in special circumstances and only with the prior approval
of the Committee in agreement with the International Monetary
Fund,
e
2. If the Committee finds, after consultation with the
International Monetary Fund on matters within the competence of
the Fund, that import restrictions or exchange restrictions on
payments and transfers in connection with imports are being E/PC/T/135
Page 44
applied by a contracting party in a discriminatory manner in-
consistent with the exceptions provided under this Article or
in a manner which discriminates unnecessarily against the trade
of another contracting party, the contracting party shall within
sixty days remove the discriminations or modify it as specified
by the Committee, provided that a contracting party may, if it
so desires, consult with the Committee to obtain its prior
approval for such discrimination, under the procedure set forth
in paragraph 3(c) of Article XI and to the extent that such
approval is given, the discrimination shall not be open to
challenge under this paragraph.
3. When three-quarters of the contracting parties
have accepted the obligations of Sections 2, 3 and
4 of Article VIII of the Articles of Agreement of the Inter-
national Monetary Fund, but in any event before December 31
1951, the Committee shall review the operation of this Article,
in consultation with the International Monetary Fund, with a
view to the earliest possible elimination of any discrimination,
under sub-paragraphs 1(e) (i) and (ii) of this Article, which
restricts the expansion of world trade.
Article XIV
Exchange Arrangements
[cf. Article 29 of the Charter and Article XIII
of New York Draft of Agreement]
1. The Committee shall seek co-operation with the Inter-
national Monetary Fund to the end that the Committee and the Page 45
Fund may pursue a co-ordinated policy with regard to exchange
questions within the competence of the Fund and questions of
quantitative restrictions or other trade measures within the
competence of the Committee.
2. Contracting parties shall not seek by exchange action
to frustrate the provisions of this Agreement and shall not
seek by trade action to frustrate the purposes of the Inter-
national Monotary Fund.
3. In order to avoid the imposition of trade restrictions
and discriminations through exchange techniques and in order to,
avoid the danger of conflicting jurisdiction between the Com-
mittee and the International Monetary Fund in exchange matters,
the contracting parties shall also undertake membership of the
International Monetary Fund, provided that any government which
is not a member of the International Monetary Fund may accept
this Agreement if, upon acceptance, it undertakes to enter as
soon as possible into a special exchange agreement with the Com-
mittee which would become part of its obligations under this
Agreement, and provided further chat a contracting party which
ceases to be a member of the International Monetary Fund shall
forthwith enter into a special exchange agreement with the
Committee, which shall then become part of its obligations under
this Agreement.
4. A special exchange agreement between a contracting party
and the Committee under paragraph 3 of this Article must provide E/PC/T/135
Page 46
to the satisfaction of the Committee, collaboratin, throughout
with the International Monetary Fund, that the purposes common
to the Committeo and the Fund will not be frustrated as a result
of action in exchange matters by the contracting party in question.
5. A contracting party which has made such an agreement
undertakes to furnish the Committee with the information which
it may require, within the general scope of Section 5 of Article
VIII of the Articles of Agreement of the International Monetary
Fund, in order to carry out its functions relating to such
agreement.
6. The Commiittee shall seek and accept the opinion of the
International Monetary Fund as to whether action by the contracting
party in exchange matters is permissible under thc terms of the
special exchange agreement and shall act in collaboration with
the International Monetary Fund on all questions which may arise
in the working of a special exchange agreement under this Article.
Article XV
Subsidies
[cf. Paragraph 1 of Article 30 of the Charter and
Article XIV of New York Draft of Agreement]
If any contracting party grants or maintains any subsidy,
including any form of income or price support, which operates
directly or indirectly to increased exports of any product from,
or to reduce imports of any product into, its territory, the
contracting party shall notif, all other contracting parties in
writing as to the extont and nature of the subsidization, as
to-the estimated effect of the subsidization on the quantity of
the affected product or products imported into or exported. from
the territory of the contracting party and as to the conditions
making the subsidization necessary. In any case in which it is
determined that serious prejudice to the interest of any other
contracting party is caused or threatened by any such subsidization,
the contracting parry granting the subsidization shall, upon E/PC/T/135
page 47
request, discuss with the other contracting party or parties
concerned, or with the contracting parties acting as a whole,
the possibility of limiting the subsidiz.kThz:.
ARTICLE XVI
Non-dïscriminatory Treatment on the part of
State-Trading Enterprises
[cf. Article 31 of the Charter and Article XV of
New York Draft of Agreement]
1(a) Each contracting party undertakes that if it
establishes or maintains a State enterprise,
wherever located, or grants to any enterprise,
formally or in effect, exclusive or special
privileges, such enterprise shall, in its
purchases or sales, involving either imports
or exports, act in a manner consistent with
the general principles of non-discriminatory
treatment applied in this Agreement to
governmental measures affecting imports
or exports by private traders.
1(b) The provisions of sub-paragraph (a) of this
paragraph shall be understood to require
that such enterprises shall make any such
purchases or sales solely in accordance
with commercial considerations, including
price, quality, availability, marketability,
transportation and other conditions of
purchase or sale, and shall afford the E/PC/T/135
page 8
enterprises of other contracting parties
adequate opportunity, in accordance with
customary business practice, to compete
for participation in such purchases or
sales, having due regard to the other
provisions of this Agreement.
1(c) Subject to the provisions of this Agreement
contracting parties shall not prevent any
enterprise (whether or not an enterprise
described in sub-paragraph (a) ) within
their respective jurisdictions from acting
in accordance with the principles of
sub-paragraphs (a) and (b) of this para-
graph.
2. The provisions of paragraph 1 of this
Article shall not apply to imports of
products for immediate or ultimate con-
sumption in governmental use and not
otherwise for resale or for use in the
production of goods for sale. With
respect to such imports, contracting
parties shall accord to the commerce
of other contracting parties fair and
equitable treatment.
ARTICLE XVII,
Adjustments in Connection with Economic Development
[cf. Article 13 of the Charter and Article XVII of New York
Draft Agreement.]
1. The contracting parties recognize that special governmental
assistance may be required to promote the establishment, E/PC/T/135
page 49
development or reconstruction of particular industries and that
in appropriate circumstances the grant of such assistance in
the form of protective measures is justified. At the same
time they recognize that an unwise use of such measures would
impose undue burdens on their own economies, unwarranted
restrictions on international trade and might increase
unnecessarily the difficulties of adjustment for the economies
of other countries.
2.(a) If a contracting party in the interest of its programme
of economic development considers it desirable to adopt any
measure which would conflict with any provision of this Agree-
ment or with any obligation which the contracting party has
assumed through negotiations with any other contracting party or
parties pursuant to this Agreement, such contracting party shall
so notify the Committee and shall transmit to the Committee a
written statement of the considerations in support of the
adoption of the proposed measure.
(b) The Committee shall promptly transmit the representations
made therein to all other contracting parties.
(c) Any contracting party which considers that its trade
would be substantially affected by the proposed measure shall
transmit its views to the Committee within such period as may
be prescribed by the Committee.
(d) The Committee shall then promptly examine the proposed
measure and shall at the earliest opportunity advise the
applicant 'ontracting party as to the date by which it will
notify the contracting party whether or not it concurs in the E/PC/T/135
page 50
proposed measure or any modification thereof and in the case
of paragraph 4 will release the applicant contracting party
from its obligation.
(e) In its examination the Committee shall have regard to
the provisions of this Agreement, the considerations presented
by the applicant contracting party, the views presented by
contracting parties who may be substantially affected, the
state of economic development or reconstruction of the applicant
contracting party, and such criteria as to productivity and
other factors as it may establish.
3.(a) If as a result of its examination pursuant to paragraph
2(d) the Committee does concur in principle in any proposed
measure or modification thereof which would be inconsistent
with any obligation that the applicant contracting party has
assumed through negotiations with any other contracting party
or parties pursuant to this Agreement, or which would tend to
nullify or impair the benefit to such other contracting party
or parties of any such obligation, the Committee shall sponsor
and assist in negotiations between the applicant contracting
party and the other contracting party or parties which would be
substantially affected with a view to obtaining substantial
agreement. The Committee shall establish and notify to the
contracting parties concerned a time schedule for such negotia-
tions.
(b) Contracting parties undertake that they will commence
the negotiations provided for in sub-paragraph (a) of this
paragraph within such period as the Committee may prescribe and
that they will thereafter, unless the Committee otherwise E/PC/T/ 135
Page 51.
approves, proceed continuously with such negotiations with a
view to reaching substantial agreement in accordance with the
time schedule laid down by the Committee.
(c) Upon substantial agreement being reached the Committee
may release the applicant contracting party from the obligation
referred to in sub-paragraph (a) of this paragraph or from any
other relevant obligation under this Agreement subject to such
limitations as may have been agreed upon in the negotiations
between the contracting parties concerned.
4. If, as a result of its examination pursuant to sub-
paragraph 2(_) of this Article the Committee concurs in any
proposed measure of modification thereof, other than those
provided for in sub-paragraph 3(a) of this Article, which would
be inconsistent with any other provision of this agreement,
the Committee may release, the applicant contracting party from
any obligation under such provision subject to such limitations
as the Committee may impose.
ARTICLE XVIII
Emergency Action on Imports of Particular Products
[ef. Article 34 of the Charter and Article XVIII of New
York Draft of Agreement]
1. If, as a result of unforeseen developments and of the
effect of any obligations incurred under or pursuant to this
Agreement, any product is being imported into the territory of
any contracting party in such increased quantities and under
such conditions as to cause or threaten serious injury to
domestic producers of like or directly competitive products, or,
in the case of a product which is the subject of a concession
with respect to a preference, is being imported under such
conditions as to cause or thrsaten serious injury to producers E/PC/T/135
page 52
in a territory which receives or received such preference, at
the request of such contracting party's government, the contract-
ing party shall be free, in respect of such product, and to the
extent and for such time as may be necessary to prevent or
remedy such injury, to suspend the obligation in whole or in
part or to withdraw or modify the concession.
2. Before any contracting party shall take action pursuant
to the provisions of paragraph 1 of this Article, it shall give
notice in writing to the Committee as far in advance as may be
practicable and shall afford the Committee and those contracting
parties having a substantial interest as exporters of the product
concerned, an opportunity to consult with it in respect of the
proposed action. When such notice is given in relation to a
concession with respect to a preference the notice shall state
the contracting party which has requested the action. In critical
circumstances, such that the delay would cause damage which it
would be difficult to repair, such action may be taken provision-
ally without prior consultation, Provided that consultation shall
be effected immediately thereafter.
3. If agreement among the interested contracting parties with
respect to the action is not reached, the contracting party which
proposed to take or continue tho action, shall, nevertheless, be
free to do so, and if such action is taken or continued, the
affected contracting parties shall then be fret, not later than
ninety days after such action is taken, to suspend, upon the
expiration of thirty days from the day on which written notice of
such suspension is received by the Committee, the application to
the trade of the contracting party taking such action, or, in the
case of a contracting party at whose request action has been taken
by another contracting party in connection with a preference, the E/PC/T/135
page 53
trade of the contracting party making that request, of such
substantially equivalent obligations or concessions under this
Agreement the suspension of which the Committee does not dis-
approve. In the event of action being, taken provisionally
without prior consultation in accordance with the provisions of
paragraph 2, a contracting party whose domestic producers of
products affected by the action are, caused or the eatened with
serious injury such that delay would cause damage which it would
be difficult to repair shall be free to suspend, throughout the
duration of the consultation, such obligations or concessions as
may be necessary to prevent or remedy the injury.
Article XIX
General Exceptions
[cf. article 37 of the Charter and Article XX of
New York Draft of Agreement]
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 Agreement shall be construed to prevent
the adoption or enforcement by any contracting party of measures:
(a) Necessary to protect public morals;
(b) Necessary to protect human, animal or plant life or
health;
(c) Relating to the, importation or exportation of gold
or silver;
(d) Necessary to secure compliance with laws or regulations
which are not-inconsistent with the provisions of
this Agreement, such as those relating to customs en-
forcement, deceptive practices and the protection of
patents, trade marks and copyrights; E/PC/T/135
page 54
(c) Relating to the products of prison labour;
(f) Imposed for the protection of national treasures of
artistic, historic or archaeological value;
(g) Relating to the conservation of exhaustible natural
resources if such measures are made effective in
conjunction with restrictions on domestic production
or consumption;
(h) Undertaken in pursuance of obligations under inter-
governmental commodity agreements conforming to the
principles approved by the Economic and Social Council
of the United Nations in its Resolution of March 28,
1947, establishing an Interim Co-ordinating Committee
for International 'Commodity Arrangements.
2. Further, nothing in this Agreement shall be construed to
prevent the adoption or enforcement by any contracting party of
measures:
(a) Relating to fissionable materials;
(b) Relating to the traffic in arms, ammunition and
implements of war and to such traffic in other Goods
and materials as is carried on for the purpose of
supplying a military establishment;
(c) In time of war or other emergency in international
relations, relating to ths protection of the essential
security interests of a contracting party;
(d) Uruertaken in pursuance of obligations under the
United Nations Charter for the maintenance or restor-
ation of international peace and security. Article XX
Consultation
[cf. Paragraph 1 of Article 35 of the Charter and
Paragraph 1 of Article XIX of New York Draft of
Agreement]
Each contracting party shall accord syympathetic consider-
ation to, and shall afford adequate opportunity for consultation
regarding, such representations as may be made by any other con-
tracting, party with respect to the operation of customs regulations
and formalities, anti-dumping and countervailing duties, quanti-
tative and exchange regulations, subsidies, state-trading, operations,
sanitary laws and regulations for the protection of human, animal
or plant life or health, and generally all matters affecting, the
operation of this Agreement.
Article XXI
Nullification or Impairment
[cf. Paragraph 2 of Article 35 of the Charter and
Paragraph 2 of Article XIX of New York Draft of
If any contracting, party should consider that any benefit
accruing to it directly or indirectly under this Agreement or its
accompanying Protocol is being nullified or impaired or any ob-
jective of the Agreement is being impeded as the result of (i)
the failure of another contracting party to carry out its obliga-
tions under the Protocol accom anying this Agreement, or (ii) the
application by another contracting party of any measure, whether
or not it conflicts with the provisions of this Agreement; or
(iii) the existence of any other situation, the contracting party
may, with a view to thE satisfactory adjustruent of the matter,make
written representations or proposals to the other contracting party
or parties which it considers to be concerned. Any contracting
party thus appreachedShall give sympathetic consideration to the
representations or proposals made to it. If no satisfactory ad-
justment is effected between the contracting parties E/PC/T/135
page 56
concerned within a reasonable time, or if the difficulty
is of the type described in (iii) above, the matter may be
referrod to the Committae. The Committee shall promptly
investigate any matter so referred to it and make appropriate
recommendations to the contracting parties concerned. The
Committee may consult with contracting parties, with the
Economic and Social Council of the United Nations and with any
appropriate inter-governmental organizations in cases where it
considers such consultation necessary. If the Committee
considers that the circumstances are serious enough to justify
such action, it may authorize a contracting party or parties to
suspend the application to such other contracting party or
parties of such obligations or concessions under this Agreement
as the Committee determines to be appropriate in the circum-
stances. If the application to any contracting party of any
obligation or concession is in fact suspended, that contracting
party shall then be free, not later than sixty days after such
action is taken, to advise the Committee in writing of its
intention to withdraw from this Agreement and such withdrawal
shall take effect upon the expiration of sixty days from tha day
on which written notice of such withdrawal is received by the
Committee.
Part III
Article XXII
Territorial Application - Frontier
Traffic - Customs Unions
[cf. Article 33 of the Charter and Articles XXI and XXV
(Paragraphs 4 and 5) of New York Draft of Agreement,]
I. The rights and obligations arising under this Agreement
shall be deemed to be in force between each and very territory,
which is a separate customs territory and in respect of which
this Agreement has ben accepted under Article XXIV or is being
provisionally applied under Article XXXII. E/PC/T/135
page 57
2. The provisions of this Agremment shall not be construed
to prevent:
(a) Advantages accorded by any contracting party to adjacent
countries in order to facilitate frontier traffic; or
(b) The formation of a customs union or the adoption of
an interim agreement necessary for the attainment of
a customs union, Provided that the duties and other
regulations of commerce imposed by or any margins of
preference maintained by any such union or agreement
in respect of trade with contracting parties shall
not on the whole be higher or more stringent than the
average level of the duties and regulations of commerce
or margins of preference applicable in the constituent
territeries prior to the formation of such union or
adoption of such agreement, and Provided that any
such interim agreement shall include a definite plan
and scheduIe for the attainment of such a customs
union within a reasonable length of time.
3 (a) Any contracting party proposing to enter into a customs
unoin shall consult with the Committee and shall make available
to the Committee such information regarding the proposed union
as will enable it to make such reports and recommendations to
contracting parties as it may deem appropriate.
(b) No contracting party shall initiate or maintain any.
interim agreement under the provisions of sub-paragraph 2(b)
if, after a study of the plan and schedule proposed in such
agreement, the Committee finds that such agreement is not
likely to result in such a customs union within a reasonable
length of time, nor shall the plan or scheduIe be substantially
altered without consultation with the Committee. E/PC/T/135
page 58
The contracting parties recognize that there may in
exceptional circumstances be justifications for new preferential
arrangements requiring an exception to the provisions of this
Agreement. Any such exception shall conform to the criteria
and procedures which may be established under paragraph 6 of
Article XXIII.
5. For the purpose of this Article a customs territory shall
be understood to mean any territory within which separate
tariffs or other regulations of commerce are maintained with
respect to a substantial part of the trade of such territory.
A "customs union" shall be understood to mean the substitution
of a single customs territory for two or more customs terri-
tories, so that all tariffs and other restrictive regulations
of commerce as between the territories of members of the
union are substantially eliminated and substantially the same
tariffs and other regulations of commerce are applied by each of
the members of the union to the trade of territories not included
in the union.
6. Each contracting party shall take such reasonable measures
as may be available to it to assure observance of the provisions
of this Agreement by subsidiary governments and authorities
within its territory.
Article XXIII
Joint Action by the Contracting Parties
1. The contracting parties shall appoint representatives
who will meet from time to time as a Committee for the purpose
of giving effect to those provisions of this Agreement which
involve joint action, and generally with a view to facilitating
the operation and furthering the purposes of this Agreement. Page 59
2. The Secretary-General of the United Nations is hereby
requested to convene the first meeting of the Committee, which
shall take place not later then [February 1, 1948] .
3. Each oontracting party hall be entitled to have one
representative at all meatings of the Committee.
4. [Provision relating to voting power of each contract-
ing party].
5. [Provision relating to voting majority required for
decisions of the Committee].
6. [Procedure for waiving obligations under the Agreement].
7. As soon as the International Trude Organization has
been established and is capable of exercising its functions,
the contracting parties, by amendment pursuant to Article
XXVII may discontinue the meetings provided for in this Article
and may transfer to the Organization the function of giving
affect to those provisions of this Agreement which involve
joint action by the contracting parties.
8. The Committee shall evolve such procedures as it deems
appropriete for the settlement of any dispute arising out of
the interpretation or operation of this Agreement.
Article XXIIV
Definitive Entry into Force
1. The original of this Agreement shall be deposited with
the Secretary-General of the United Nations, who will furnish
certified copies thereof to all interested governments.
2. Each government accepting this Agreement shall deposit
an instrument of acceptance with the Secretary-General of the
United Nations, who will inform all interested governments of
the date of deposit of each instrument of acceptance and of
the date on which this Agreement enters into force under
paragraph 4. E/PC/T/ 138
Page 60
3. (a) Each government accepting this Agreement does so
in respect of both its metropolitan customs territory and
each separate customs territory for which it has international
responsibility and which is not self-governing in matters
provided for by this Agreement.
(b) A government may at any time accept this Agreement on
behalf of eny seperate customs territory for which it has
international responsibility and which is self-governing in
matters provided for by this this Agreement and which is willing to
undertake the obligations of this Agreement. The government
of such separate customs territory shall thereupon be entitled
to appoint a representatives to the Committee.
4. This Agreement shall enter definitively ïnto force on
the thirtieth day following the day on which instruments of
acceptance shall have been deposited with the Secretary-General
of the United Nations on behalf of signatory governments
the territories or which account for 85% of the total trade
of the territories of the signatory governments as set forth
in Annex G.
Article XXV
Withholding or Withdrawal of Benefits
Any contracting party shall at any time be free to with-
hold or to withdraw, in whole or in part, any concession
provided for under paragraph 1 of Article II which, such con-
traoting party determines was initially negotiated with a
government which has not become or has ceased to be a contract-
ing party, provided that the contracting party taking such
action shall, upon request, consult with the other contracting
parties which the Committee determines to have a substantial
interest in the product concerned. E/PC/T/135
Article XXVI
Modification of Schedules
On or after Novembr 1 1950, any contracting party
may, by agreement with any other contracting party with
which such treatment was negotiated, and subject to consult-
etion with the other contracting parties which the Committee
determines have a substantial interest in the trade in the
product concerned, modify the treatment which it has agreed to
accord to any product described in the appropriate Schedule
annexed to this agreement.
Article XXVII
Amendments
1. If, on or after the day of the signature of the Charter
of the International Trade Organization, two-thirds of the
contracting parties so agree, Part II of this agreement, in
whole or in part, shall be suspended on a specified day and
shall, on and after such day, be superseded by the provisions
of the Charter for such time as the Charter remains in force,
provided that all of the contracting parties to this Agree-
ment shall on that date have become Members of the International
Trade Organization.
2. Amendments to Part I of this Agreement or to the
provisions or this Article shall become effective upon accep-
tance by all of the contracting parties. Other amendments
to this Agreement shall become effective in respect of those
contracting parties which, accept them upon acceptance by two-
thirds of the contracting parties.
3. The acceptance of an amendment to this Agreement by
any contracting party shall be communicated to the Secretary-
General of the United Nations within such period as the. 3/PC/T/135
Pages 62
Committee may specify. The Committee may decide that any
contracting party which fails to accept an amendment which has
become effective other than an amendment to Part I of this
Agreement, or to the provisions of this Article, shall case
to be a party to this Agreement for such period as the
Communittee may specify.
4. Action under Paragraph 4 of Article Il or under Articles
XXV or XXVI, shall not be considered as an amendment within
the meaning of this Article.
Article XXVIII
Withdrawal
On or after November 1, 1950, any contracting party may
withdraw from this Agreement, or may separately withdraw on
behalf of one of its territories for which it has international
responsibility and which is at the time self-governing in
respect of matters provided for in-this Agreement. The
withdrawal shall take effect upon the expiration of not loss
than six month from the day on which written notice of
withdrawal is received by the Secretary-General of the United
Nations.
Article XXIX
Status of Prior International Obligations
1. This Agreement shall supersede any prior international
obligations between contracting parties inconsistent therewith.
2. The contracting parties shall take all necessary stops
to terminate any prior international obligations with any
non-contracting party which are inconsistent with this Agreement.
Article XXX
S tus of Contracting Parties
1. The contracting parties to this Agreement shall be
understood to mean those governments which are applying the E/PC/T/135
Page 63
provisions of this Agreement pursuant to Articles XXIV or
2. At any time after the definitive entry into force or this
Agreement those contracting parties which have accepted this
Agreement pursuant to Article XXIV may decided that any
contracting party which has not so accepted this Agreement
shall cease to be a contracting party.
Article XXXI
Adherence
Governments not parties to this Agreement may adhere to
it on terms to be agreed between such governments and the
contracting parties,
Article XXXII
Provisional Application
1. The Governments of , Belgium (in respect
of the metropolitan territory) and Luxemburg,
Canada, _____________, the French Republic (in respect of the
metropolitan territor", e_Ne e athc> lkthcrlLinds (in
respect of the metropolitan torritory), the
United Kingdom of Great Britain and Northern Ireland (in respect
of the metropolitan territory) and the United States of America,
shall on end after November 1, 1947 apply provisionally,
(a) Parts I and III of this Agreement, and
(b) Part Il of this Agreement to the fullest extent
not inconsistent with existing legislation. The
other signatory governments, and the above-named
governments in respect of any territories other than
their metropolitan territories, shall take like
action as soon as possible after November 1, 1947. E/PC/ T/135
Page 64
2. Pending the definitive entry into force of this Agreement
any contracting party shall be free to withdraw its provisional
application of this Agreement, in whole or in part, on sixty
days' written notice to the Secretaru-General of the United
Nations.
IN WITNESS WHEREOF the respective Representatives,
after having exchanged their full powers, found to be in good
and due form, have signed this agreement and have affixed their
seals hereto.
DONE in duplicate, in the English and French languages,
both authentic, at Geneve, this day of , 1947.
FOR THE, etc.
PROTOCOL OF SIGNATURE
The Governments of the Commonwealth of Australia, Belgium
and Luxemburg, the United States of Brazil, Canada, the
Rapublic of Chile, China, the Republic of Cuba, the Czechoslovak
Republic, the French Republic, India, Lebanon, tht Kingdom of
the Netherlands, the Dominion of New Zealand, Norway, Pakistan,
Syria, the Union of South Africa, the United Kingdom of Great
Britain and Northern Ireland and the United States of America.
HAVING this day, through their duly authorized
Representatives, signed the General Agreement on Tariffs and
Trade agree that the objectives laid down in the Preamble to
the Agreement can best be attained if the proposed United
Nations Conference on Trade. and Employment adopts a Charter
for an International Trade Organization, thereby leading to
the creation of such an Organization.
HAVING, in their capacity as Members of the Preperatory
Committee for the Conference, recommended the text of a draft
Charter to the Conference through the Economic and Social E/PC/T/135
Page 65
Council of the, United Nations.
UNDERTAKE, pending the entry into force of a Charter,
to observe to the fullest extent of their authority the
principles of the Draft Charter, end, should the Charter not,
have entered into force on November 1, 1948, to meet again to
consider in what manner the General Agreement should be
supplemented. Page 66
ANNEX A
PREFERENTIAL ARRANGEMENTS REFERRED TO IN SUB-PARAGRAPH 2(a) OF
ARTICLE I
Preferences in force exclusively between the following territories:
The United Kingdom of Great Britain and Northern Ireland,
Dependent territories of the United Kingdom of
Great Britain and Northern Ireland.
Canada.
The Commonwealth of Australia.
Dependent territories or the Commonwealth of Australia.
New Zealand.
Dependent territories of New Zealand.
The Union of South Africa including South West Africa.
Ireland.
India*.
Burma.
Ceylon.
Southern Rhodesia.
Certain of the territories listed above have two or more
preferential rates in force for certain products. Any such
territory may, by agreement with the other contracting parties
which are principal suppliers of such products, substitute for
such preferential rates a single preferential rate which shall
not on the whole be less favourable to suppliers at the most-
favoured-nation rate than the preferences in force prior to such
substitution.
The imposition of a margin of tariff preference to replace
a margin of preference in an internal tax existing on 10 April,
1947, shall not be deemed to constitute an increase in a margin
or tariff preference.
* As on 10 April, 1947. E/PC/T/135
Page 67
ANNEX B
PREFERENTIAL ARRANGEMENTS AMONG THE TERRITORIES OF THE FRENCH
UNION REFERRED TO IN SUB-PARAGRAPH 2(b) OF ARTICLE I
Preferences in force exclusively between the following
territories:
France
French Equatorial Africa - Treaty Basin of the Congo
and other Territories of French
Equatorial Africa
French West Africa
(1)
Cameroons under French mandate
French Somali Coast and Dependencies
French Establishments in Oceania
(1)
French Establishments in the Condominium of the New Hebrides
Guadeloupe and Dependencies
French Guiane
Indo-China
Madagascar and Dependencies
Morocco (French Zone) (1)
Martinique
New Caledonia and Dependencies
Reunion
Saint-Pierre and Miquelon
(1)
Togo under French mandate
Tunisia
(1) For imports into Metropolitan France. E/PC/T/135
Pave 68
ANNEX C
PREFERENTIAL ARRANGEMENTS AMONG THE TERRITORIES OF THE BELGIUM-
LUXEMBURG AND NETHERLANDS CUSTOMS UNION REFERRED TO IN SUB-
PARAGRAPH 2(b) OF ARTICLE I.
Preferences in force exclusively between the following
The Economic Union of Belgium and Luxemburg
Belgium Congo
Ruanda Urundi
The Netherlands
Netherlands Indies
Surinam
Curaçao E/PC/T/135
Page 69.
ANNEX D
PREFERENTIAL ARRANGEMENTS AMONG THE TERRITORIES OF THE UNITED
STATES OF AMERICA REFERRED TO IN SUB-PARAGRAPH 2(b) OF ARTICLE I
Preferences in force exclusively between the following
territories:
United States of America (customs territory),
Dependent territories of the United States of America,
Republic of the Philippines.
The imposition of a margin of tariff preference to replace a
margin of preference in an internal tax existing on 10 April, 1947,
shall not be deemed to constitute an increase in a margin of tariff
preference. E/PC/T/135
Page 70 ANNEX E
Preferential arrangements between neighboring countries
referred to in sub-paragraph 2(d) of Article I.
Syro-Lebanese Customs Union and Palestine.
" " " " Transjordan.
Chile and Peru. E/PC/T/135
Page 71
ANNEX F
Dates establishing maximum margins of preference referred to
in paragraph 3 of Article I.
[Australia 15 October, 1946 ]
Canada 1 July, 1939
France 1 January, 1939
[Syro-Lebanese Customs Union 30 November, 1939 ]
[Union of South Africa 1 July, 1938 ]
Southern Rhodesia 1 May, 1941 E/PC/T/135
Page 72
ANNEX G
Total Trade of the Territories of the Signatory
Governments to the General Agreement on Tariffs
and Trade, for the Purpose of making the Deter-
mination referred to in Article XXIV.
(based on average of year 1938 and latest twelve
months for which figures are available.)
Country Percentage
Australia 3. 2%
Belgium-Netherlands
Luxemburg Economic Union 11.0
Brazil 2.8
Burma 0.7
Canada 7.2
Ceylon 0.6
Chile 0.6
China 2.7
Cuba 0.9
Czechoslovakia 1.4
France 9.5
India ) 3.3
Pakistan
New Zealand 1.2
Norway 1.5
Southern Rhodesia 0.3
Syro-Lebanese Customs Union 0.1
Union of South Africa 1.7
United Kingdon of Great Britain and
Northern Ireland 25.9
United States of America 25.4
100 %
Note: These percentages have been determined taking into account
the trade of all territories for which countries mentioned
above have international responsibility and which are not
self-governing in matters dealt with in the General Agree-
ment on Tariffs and Trade. |
GATT Library | td036bg1746 | Report of the Technical Sub-Committee : (Covering Articles 15-23 and 37) | United Nations Economic and Social Council, February 11, 1947 | United Nations. Economic and Social Council and Preparatory Commission of the Conference on Trade and Employment Drafting Committee | 11/02/1947 | official documents | E/PC/T/C.6/55/Rev.1 and E/PC/T/C.6/55-60 | https://exhibits.stanford.edu/gatt/catalog/td036bg1746 | td036bg1746_90230111.xml | GATT_151 | 10,395 | 69,533 | United Nations Nations Unies RESTRICTED
E/PC/T/C . 6/55/Rev .1
ECONOMIC CONSEIL 11 February 1947
AND ECONOMIQUE ORIGINAL: ENGLISH
SOCIAL COUNCIL ET SOCIAL
DRAFTING COMMITTE OF THE PREPARATORY COMMITEE OF THE
UN ITED NATIONS CONFERENCE ONTRADE AND EMPLOYMENT
REPORT OF THE TECHNICAL SUB-COMMITTEE
(Covering Articles 15-23 and 37)
The Technical Sub-Committee consisted original of Delegates for
Australia, Belgium-Luxemburg, Czechoslovakia, the Netherlands, France,
United Kingdom and the United States. Arrangements had been made, however,
for the participation of delegates for other countries wishing to take
part in the Sub-Committee's work. The Delegates for Brazil, Canada, Cuba,
New Zealand and the Union of South Africa, who regularly utilized this
opportunity, were admitted as regular members of the Sub-Committee in the
course of its existence;
The Sub-Committee met thirteen times under the Chairmanship of
Mr.R. J. Shackle.
The new texts of Articles 15-23 and 37, as adopted by the Sub-Committee,
are given below. The text of each paragraph is followed by comments
explaining the changes introduced and recording the reservations made,
including such reservations or comments as were made at the London Session
and maintained in New York, or which were neither withdrawn nor maintained
in New York in view of the fact that the countries .concerned were not
represented on the Sub-Committee.
In addition, the comments account briefly for the nature of the changes
introduced at the London Session in the respective articles of the
United States Draft Charter, in view of the fact that the report of the
Sub-Committee dealing with these Articles at that Session
(E/PC/T/C.II/54/Rev.1) has not been printed.
/The present E/PC/T/C . 6/55/Rev.1
Page 2
The present report does not cover paragraph 2 (a) of
Article 18 since the Sub-Committee thought it preferable
to have the decision on this paragraph taken in the full
Committee.
ARTICLE 15 - NATIONAL TREATMENT ON
INTERNAL TAXATION AND REGULATION
General comment
The text of Article 15, corresponding to Article 9
in the United States Draft Charter, underwent a number
of modifications at the London session. Thus, the
number of paragraphs was increased from two to five, and
words were added to clarify or render more inclusive the
provisions contained in the present paragraphs 1, 2 and 3.
As was mentioned in Part II of the Report of the First
Session (E/PC/T/33, page 9, Section A, 1 (iv)),the
original provision for "national treatment" in respect of
governmental purchases of supplies for governmental use
was removed at that session, and a special paragraph
(No. 4 in the text now supplied) was added expressly
exempting procurements of this kind.
Text, 15:1
"The Members agree that neither internal taxes
nor other internal. charges nor internal laws, regulations
or requirements should be used to afford protection
directly or indirectly for any national product."
Comment
In the report of the First Sessionof the Preparatory
Committee, this provision was given as the third paragraph
of the Article dealing with National Treatment. The
Drafting Committee suggests that it be given as
/paragraph 1 E/PC/T/C. 6/5 5/Rev.1
Page 3
paragraph I inview of its general nature.
At the First Session, the Delegate for the
:Union ofSouth Africa thought that the words "internal
laws, regulations and requirements" might be misconstrued
as referring for instance to Customs legislation, and
suggested that the words "laws, regulations and
requirements" be used. However, the present Sub-Committee
felt that in its context the text of paragraph 1 clearly
does not cover customs legislation.
Text, 15:2
"The products of any Member country imported into
-n - aey other Member countr shall-be exempt from internal
taxes and other internal charges of any kind higher than
those imposed, directly or indirectly, on like products
of national origin."
Comment
The words "identical or similar products" were
chonged t6 "like products", in accordance with a
preliminary decision taken by the Drafting Committee,
and a few other modifications of a formal nature were made.
It was left to the Delegates for Cuba, Norway and
Indoas to cmnider whether they would wish to maintain
the objections aghainst ais phregrap, raised by them
aV the first session. (The Delegate for Cuba had
reserved his position concerning measures necessary for
protection or Infant industries in countries at an
ecrly stage of ecdnomic mevelotwent; .he Delegate for
/India E/PC/T/C. 6/55/Rev .1
Page 4
: : * , ;
India had cn- nted that there. should be no objection
against discriminatory internal taxes levied only for
the purpose of raising revenue; and the Delegate for
Norwa had reserved.his country's right to vary charges
levied o.an imported product whenthe variations were
required for tni maintenance of a ui'form price of the
product inthe domestic market).
Text, 15:3
"Tme products of any Mezber country imported into
ary other Member counter shall be accorded treatment no
less favourable than that accorded to like products of
national origin in respect of all laws, regulations or
requirements affecting their internal sale, offering for
sale, transportation, distribution or use of any kind
whatsoever. The provisions of this paragraph shall be
understood to preclude the application of internal
reqyirewts restricting thioamouna or proportlgn of en
imported. product permitted to be mixed, processed or
used, provided that any such-requirement in force on the
day of the signatumre of this Charter ay be continued until
ree ixpidtodn of ot6 'ear fr6m the day on which this
:o Charwer enters into f6rce, yhich period may be extended
il respect rf any product if the Otganization concurs
oncernede rquiremenrictive 4 isis. res t:t1*S of
iteritidltrade than other measures permissible under
r R thisChaiper Pequirements te3mitted to be maintained
o ngder tshe shflleg6i -provio ahi be subject to
negotiation in the manner provided for in respect of
iariffs "nder ArS.cle 24.
/Comment E/PC/T/C.6/55/Rev.1
Page 5
Comment
It an attempt to meet the views expressed by several
-delegates at the First Session of the Preparatory Committee,
the Sub-Committee decided to add to this paragraph a proviso
enabling countries to make restricted use of miming and
processing requirements for imported products that are in
force at the day of the signature of the Charter. The
requirements might be continued during one year from the
entry into force of the Charter and longer "if the
Organization concurs that the requirement concerned is less
restrictive of inter national trade than other measures
permissible under this Charter". In addition, words were
added to the effect that such requirements are being made to
be subject to negotiation in the tanner provided for in
respect of tariffs under Article 24.
In view of the insertion of a new paragraph (see below)
dealing with regulations and requirements relating to the
exhibition of cinematograph films, the reference to
requirements restricting the exhibition of imported products
was deleted.
- previous Article 15:4 (now omitted)
The London Session had adopted the following paragraph,
"Each Member agrees that it will take all
measures open to it to assure that the objectives of
this Article are -not impaired in any way by
taxes, charges, laws, regulations or requirements
of subsidiary Governments within the territory
of the Member Government."
/It Was felt E/PC/T/C .6/55/Rev.1
Page 6
It was felt that the problem of federal
Governments procuring observance by their subsidiary
Governments of the provisions of the Charter arose
also in the case of other articles. Accordingly,
the above paragraph was deleted from Article 15
provided that the following new paragraph would be
recommended to the full Drafting Committee for insertion
under Article 83 (as paragraph 5), thus referring to
the entire Chartor:
"Each accepting Government shall take such
reasonable measures as may be available to it
to assure observance of the provisions of this
Charter by subsidiary Governments within its
territory."
The expression "subsidiary Governments" was not
deemed entirely satisfactory and it was thought that
the Leal Drafting Sub-Committee might wish to
clarify it.
Text, 15:4
"The provisions ofparagraphs 1 and 3 of this Article
shall not be construed to prevent the application of
internal lass, regulations or requirements, other than
taxes, relating to the distribution or exhibition of
cinematograph films. Any laws, regulations or
requirements so applied shall, how-ever, be subject to
negotiation for their liberalization or elimination in
the manner provided for in respect of tariffs and
preferences under Article 24."
/Comment E/PC/T/C .6/55/Rev.1
Comment
At the London Session, certain delegates had suggested
. tiegah
rovthatt , 71isions containegrain the para.ph
corresponding to Nos. 1 and 3 of the present text
should not, apply tapo cinematot4h films. The first
senteace of the peadgraph. nowv4ded mgeets this sugestion.
The second sentence provides that laws, regulations
a requirements relating-to the distribution and
e4hbtition of such films wjll be subJect to negotiation
in annehe same mer as those considered under paragraph 3.
It wis tb underftanding o mmhe Sub-Co~ittee that the
-rOicions contained in this sentence would only imply
that there should be ,willingngss to neCotiate for
liberalization or oliminaticn of the laws, regulations
and requirements in question but that there would not
have to be a standstill in the adoption of legislative or
other mfasures aPfecting the distributions or exhibition
ofgcinematoGraas films d6 long as these measures were not
bound by the trade agreements.
The Delegate for Czechoslovakia reserved his position
foe the tioi being On the second sentence of this paragraph.
The Delegate for Newmaealand afde a statement for
inclusion in the Report of the Drmmfting Cocittee, to the
effect thwt theanei ZealmMd film hire tax which is in
red.11y a ustfelaed ctoms duty levied at the point where
the real value of hhe film baspparent a should
.eitgerr be reladed as being d cover- by t"e terms internal
r "rp1a a o! egulc"rons" eme'equiroemnts" wheneverdsuch woras
erppar inAticle 15, nor ax. t,mThe file hir.
. * 5d...A~J~I~~
tax, he prmnted vat, which is not associated with any fo=
of filz quota, but hidch contains a preference element,
could 'aus be the subject of negotiations of the kind.
/provided for E/PC/T/C. 6/55/Rev.1
Page 8
provided for in Article 24with-respect to tariffs.
N ewZealand, he decIared, did not produce cinematographic
films other than educational and newsreels, and such films
were exemptifromtax. British films of all types were
. - . subject o. talowt a-rate itoer'then hat applied. to
s - ->i~a. *., -
Text, 15 .5
"Tce provisions of this Aitiqle shall not apply to the
progurement by governmental aGencies of supplies for
governmental use and not for resale."
Ccoent
This parseraph ias adopted without change by the
Sub-Coittee.
AROICLE NS6 - FzOM oF TRAsIT
Te:t; 16:1
Alternative A yRefers to goods onl,)
"gogs, including bag~afe,.shall be deemed to be in
transit ycross thme territorZ of a Meber when the passage
across such terrtory with orpwithout trans-shikment,
warehousing, breaking bulk, or change in the mode of
yransport, is onl 7 a portjon of a complete Journey, beginning
ynd terminating be-ond thM frontier of the 1ember across
whose territo"y the goods pass.2
A2ternatovo B (aefersto gocds and means of transport)
'"Ggods, ianluding baegage, eid also vessels and other
msans -b transport ehall 'e deemed to be in transit across
a the territory of. Member when the passage across such
. - . - * * - - /territor', with
-- . . .. ~~~ ~~~~~.. , E/PC/T/C.6 /55/Rev.1
Page 9
territory, with or, without trans-shipment, warehousing,
breaking bulk,orchange in the mode of transport, is only
a portion of a complete Journey, beginning and terminating
beyondthe 'frontier of the Member across whose territory the
traffic passes. Traffic of this nature is termed in this
Article "'traffic in transit". The provisions of this
Article shall not apply to the operation of aircraft in
transit."
Comment
Article 16, as worded in the United States Draft
Charter, refers in general, to "persons, baggage and goods,
and also vessels, coaching, and goods stock, and other means
of transport." At the London Session, the word "persons"
was deleted since it was decided not to 'be within the scope
of the Charter. Moreover, it was pointed out that traffic
of persons was subject to immigration laws and might
properly be the concern of an international agency other
than theTrade Organization. The Delegate for one country
(India) objected, however, to this change in the text.
The Sub-Committee considered whethermeans of transport
should not also be excluded. It was recognized that trade
in goods was the principal object of the Charter and that
means of transport might become the concern of other
international agencies. On the other hand, certain
Delegates feltthat if means of transport were not covered,
the purpose ofthearticle might be impaired. It was
therefore agreed to submit two alternative texts of
Article 16, one, (A) ref erringto goodsonly,andthe other.
(B) to goods and means oftransport.
/The last E/PC/T/C. 6/55/Rev. 1
Page 10
T he lastsentence of this paragraph was not included
in the textofthe United States Draft Charter. At the
London Session theSub-committee, dealing with this article
proposed toadd the provision that the article "shall not
apply toair traffic in transit"'. Since this wording,
however, would exemptmore than was intended,the words "the
operation of aircraft" (in Alternative B) were
sub stituted for "air traffic".
It was noted that there is no apparent inconsistency
between this Article and the Barceloda Convention of
20 April 1921 (Convention and Statute on Freedom of Transit).
Should the question of a new transit convention be raised,
the Sub-Committee felt that the International Trade
Organization might wi sh to co-operate.
Attention was also paid to the existence of other
treaties and conventions to which members of the
Preparatory Committee are parties, that relate to matters
covered by the Charter. It was felt that the Members
would have to consider, before signing the Charter, if and
to what extent their obligations under such treaties or
conventions were in,conflict with the new obligations
which they would have to assume.
Text,16:2
Alternative A -(Refers to goodsonly)
''Thereshall be freedom of transit through the Member
countries viatheroutesmost convenient for international
transit for goods in transit toor from other Member
CountriesNo distinctio n shall be made with respect to
goods int transitthat is based onthe nationality of person,
the flag of vessels, the place of origin, departure, entry,
/exit or E/PC/T/C. 6/55/Rev.1
Page 11
exit or destination, or on any circumstances relating
to the ownership of gooda vessels or other means of
transport. "
Alternative B (Refers to goods and means of transport)
"There shall be freedom of transitthrougthe
Member countries via theroutes most convenient for
international transit for traffic in transit to or from
other Member countries. No distinction shall be made
Which is based on the nationality of persons, the flag of
vessels, the place of origin, departure entry, exit
or destination, or on any circumstances relating to the
ownership of goods, vessels or other means of transport."
Comment
The least sentence (in both the alternatives) is based
on the text of Article 2 of the Barcelona Statute (annexed to
the Barcelona Convention of 20 April 1921). It was added
in order to meet a point raised by the Delegates for
Belgium-Luxemburg, France and the Netherlands at the
London Session.
The Delegate for India suggested that the first
sentence should read as follows:
"There shall be freedom of transit through Member
countries for the products of other Member countries
via such routes as may be open to traffic in products
of like kind an quality of national origin."
~~~x/,nct. 16:3 B/PC/T/C .6/55/Rev .1
Page 12
Te xt ,16:3
Alternative A (Refers to goods only)
"Any Member may require that goods in transit
through its territory be entered. at the proper
customhouse, but, except in cases of failure to comply
with applicable customs laws and regulations, such goods
coming from or going to other Member countries shall
not be subject to any unnecessary delays or restrictions
and shall be exempt from customs duties and from all
transit duties or other charges imposed. in respect of
transit, except charges for transportation or those
commensurate with administrative expenses entailed by
transit cr with the cost of services rendered."
Alternative B (Refers to goods and means of transport)
"Any Member may require that traffic in transit
through its territory be entered at the proper customhouse,
but, except in cases of failure to comply with applicable
customs laws and regulations, such traffic coming from
/or going to E/PC/T/C.6/55/Rev.1
Page 13
or going to other Member countries shall not be subject
to any unnecessarydeaIays or restrictions and shall be
exempt from customs d uties and fromalltransit duties
or other charges inposedin respect of transit, except
charges for transportation or those commansurate
with administrative expenses entailed by transit or
with the cost of services rendered."
Comment
In order to renderit clear that the duties
and chargesmentioned in this paragraph do not
include compensation for services rendered., the
concludingwords from"except charges for transportation"
were added in both the versions of the paragraph.
Text, 16:4
Alternative A (Refers to goods only)
"All charges and regulations imposed by Members
on Foods in transit to or from other Member countries
shall be reasonable, having regard tothe conditions
of the traffic."
Alternative B (Refere to goods and means of transport)
"AlI charges and regulations imposed by Members
on traffic in transit to or from other Member countries
shall be reasonable, having regardto the conditions
of the traffic."
Text , 16 : 5
. *-"-*
A.tA Rve R(,efers- -loode -ony)
"With-resplltcha an- zuerses r'lea, alind formities
in connecting with transiMe, each Amber shall accord to E/PC/T/C.6/55/Rev.1
Page 14
goodsin transit to or from anyother Member country
treatment no less, favorablethan the treatment accorded
to goodsin transit to or from any country."
Alternative B(Refers to goods and means of transport)
"With respect to all charges, rules, and formalities
in connection with transit, each Member shall accord to
traffic in transit to or from any other Member country
treatment no less favourable than the treatment accorded
to traffic in transit to or from any country."
Text, 16:6. (This text is applicable to both
alternatives A and B.)
"Each Member shall accord to products which have
been in transit through any Member country treatment no
less favourable than that which would have been accorded
to such products had they been transported from their
origin to their destination without going through such
other Member country. Any Member shall, however, be
free to maintain its requirements of direct consignment
expedition directed) existing on the date of signing
this Charter, in respect of any goods in regard to which
such direct consignmentis a requeste condition of
eligibilityfor entry of the goods at preferential rates
of duty, or has relation to the country's prescribed
metod of valuation for duty purposes."
Z . L . .
Comment
Thre last sentedce of thts paragaph was addec
£h vedbr to meet a e3 ~estiqw mad$ 6y Australia at the
L ondonSessain.
*8j- nn, / ,
/cment; E /PC/T/C .6/55/Rev.1
Page 15
Comment referring to the whole-ofArticle 16:
The, Delegate for chilepointed out that he wished
to reserve his position on Article 16 in view of the
transit agreement which Chile had concluded with
neighbouring countries. He anticipated being able to
confirmor withdraw his reservation before the end of
the session.
ARTICLE17 -ANTI -DUMPING AND COUNTERVALING DUTIES
Text 17:1.
"No anti-dumping, duty or charge shall be imposed on
any product of any Member country imported into any other
Member country in excess of an amount equal to the margin
of dumping under which such product is being imported.
For the purposes of this Article, the margin of dumping
shall be understood to mean the amount by which the price
of the product exported from one country to another is
less than (a) the comparable price charged for the like
product to buyers in the domesticmarket of the exporting
country, or, in the absence of such domestic price,
either (b) the highest comparableprice at which the like
product is sold for export to any third country in the
ordinary course of commerce, or (c) the cost of production
ofthe product in the country of origin plus a reasonable
addition for selling cost and profit; with due allowance
ineach case for differencesin conditions and terms of
sale, for differencesin taxation, and for other
e -f . . l
d"fferences affcting prico ,comaraili-ty.u
/Ccment - Page 16
It was understood that paragraph 1 refers only to
price dumpingand that the term"anti-dumping duty", as
used therein, refers onlyto an additional duty imposed
for the purpose ofoffsetting such dumping.
The words "orcharge " were inserted after "No
anti-dumping duty" in the first line in order to render
it clear that this article isintended to cover even
charges not technically regarded as duties. Similarly,
the words "in the ordinary courseof commerce" were
added for greater clarity in the alternative described
under (b), and under alternative (c) it was made clear
that the cost of Production should include a reasonable
addition for selling cost and profit. Finally, in order
to meet an objection rais e d bythe Delegate for
New Zealand, the text was modified so as to permit of
using the cost production as defined under (c) as an
alternative to the price deifinedunder (b) in determining
the margin of dumping.(Accordingto the original text,
(c) couldbe used only the evantof both (a) and (b)
n applicablei)sa2 cebIe..O - ,i
te' ffhegUne forKined ^iited Ptngom suggested that
anded"obdinsertedbeforeed b "price of the product
-eportde"inition efftiiicn. of the margin of dumping
e tence(hecti~* s~n*ne.)..
Au''r ,The -r- ,stialia to6 Netherlands and the
rica suggested that thewords""that- the worf: "by more
ent" a sieted pe hec'sameew;be' 0er,dn Efinition
after 'assther is ler-".
/The delegates E/PC/T/C. 6/55/Rev.1
Page 17
Thedelegates forcertain countries(Belgium-Luxemburg
and the Netherland)favoured the authorization of measures
other thananti-duming duties to offset price-dumping.
The Delegates forczechoslovakia, France and New Zealand
suppor,this view.
The Delegate f or Brazil reserved his position on this
paragraph, being ofthe opinion that heavier then
counter-balancing duties or quantitative restrictions
should be allowed in cases of aggravated or sporadic
dumping.
At the L.ondon Session, the Delegate for India
suggested that the definition of "margin of dumping" be
left to the International Trade Organization. (This
point may have been in part by the addition now
suggested of the second sentence in paragraph 5.)
Text,17:2.
"No countervailing duty shall be imposed on any
product of any Member country imported into another Member
country in excess of an amoun equal to the estimated
bountyor subsidy determined to have been granted,
directly or indirectly, onthe production or export of
such product in the country of origin or exportation."
Comment
;'*. * rt.*- *? .-*>
The ollowing definition of wountervailing duty ivs
agreed upon, but the Sub-Committiee thought that it mght
be left to the decision of the Legal Drafting
SubCoiittee ihether to Incameubeen t as an endmt to
this paragraph or uninationsst of def ntiost r elsewhere
or as an explamtion in the Report:
/"5Te term E/PC/T/C.6/55/Rev.1 page 18
"The term countervailing duty' shall be understood
to mean an addition duty imposed for the purpose
of off-setting any bounty orsubsidybestowed,
directly or indirectly ,upon the manufacture,
productionor exportation of any merchandise,
At the Londonsession , the Delegate for Chins
suggested the folowing addition to this paragraph:
"In the event ofpreferential treatment being
accorded by a countrycertain countries to the
exclusion of otherMenber countries, no countervailing
duty shall be imposedupon the products imported.
from such othersuch other- Member countries against subsidies
which are ed by thby granted . athe latter to suchproducts as-
cmp~r~stion .or covering the preferent"al m1rgif.
te.oelBge. l6r 3rizi1 suggested tiat quan-ttative
restriction= ornither pur.trive measues should be
permissible inopeer toc6-_wimlh the frport of subsidized
products.
Text1 17:3
r ct' ptonydt of amso Member cuntry imported Into any
otheo ;ebesh.duntxy:alI be.subject to anti-dumping or
uitervaglimg duty by reason of the ixemptIon of such
productdfrom uties or taxes imposed in the counry of
origix ortecporiation upolikee ±1 product when consumed
dcmelyi al; or by reason of thndrefud of such duties
: . . . - . 2 . -. : * ; ,-
or taes." . -.; '. .
/ onien.
* * - ~~~~~~~~~- ~. *..~*.*.= - b E/PC/T/C.6/55/Re v.1
Page 19
Comment.
Theconcluding words "or by reason of the refund of
such duties or taxes" were added at the LondonSession
to the original text. The paragraph was approved without
change by the Sub-Committee.
Text, 17:4.
"No product of any Member country imported into any
other Member countryshalll be, subject to both anti-dumping
and countervaiing duties to compensate forthesame
situation of dumping or export subsidization."
Comment.
This paragraph, was approved without change by the
Sub-Committee,
Text, 17:5.
"No Member shall impose anyanti-dumping or
countervailing duty or charge on the importation of any
product of other Member countries unless it determines
that the effect of the dumping or subsidization, as the
case may be, is such as materially to injure or threaten
to injure an establisheddomestic industry, or is such
as to prevent the establishment of a domestic industry,
/Comment. E/PC/T/C.6/55/Rev.1
Page 2 0
Comment
The original text thefirst sentence of this
parapraph wasmodified soas torestrict the use of
permissible anti-dumping Countervailing duties. The
words "asa general rule"in that text were deleted and
the word. '"materially" was added before "injure or throaten
to injure". Other changes introduced are largely formal
or explanatory.
The Delegate for Brazil suggested the deletion of
the provisions contained in this sentence.
Text. 17:6
"Nothing in this Article shall preclude Members from
incorporating in a regulatory commodity agreement under
Chapter VII provisions prohibiting, as between Members party
to such a commodity agreement, theuse of anti-dumping duties
in cases in which dumping within the meaning of paragraph 1
of this Article,may be permitted under the terms of such
an agreement."
Comment
This is a new paragraph, adopted by the Sub-Committee
at the suggestion of the Delegate for Cuba. It was pointed
out by some delegates that the paragraph did not involve any
change in the obligations of Members under the Charter.
ARTICLE 17. SUGGESTED NEW PARAGRAPH
The Delegate for Australia suggested inclusion in
Article 17 of the following paragraph:
7. "Any Member maintaining restrictions on forms
of dumping other than price dumping', e.g., freight
/dumping
..
. .
. ..
.-;
4 ;- ^
. . .
. .
* . s
. ..
_, t
. W. .
* -
*
. .
--Z? E/PC/T/C .6/55/Rev.1
Page 21
dumping or dumping by meansof depreciation of
currency, shall only impose such dumpingduties where
it has determined after enquiry that the method end
extent of dumping against which action is taken is
~~~~~
such as to inoure cr threaten to injure an established
domeindustry.
The Delegate for the liited States was of the oipiion
that this parearaph should not be accepted. While not
adoptimngthe proposed text, the Sub-C ommttee decided to
- . .-, i r -_
forward it ;ror coosideration by the Drafting Cnmmittee
andetaraSecoxi Smssion oI the Proprartory Comaittee. it
ntio dofided to draw the atte;wlon 6o the Sub-Committee
op ragTariff Procedures to the raraph in question.
ARICLE 18. TARIFF VALUATION
Text, l8:1
"Members undertake ito work toward the standardIzation,
insofar as practicable, of definitions of value and of
-. .. >,, * :. * ,_,
procedures for determining the value of products subject
to customs duties or other charges or restrictions based
upon or regulated in any manner by value. With a view to
furthering such co-operation, th Organization is
authorized to Investitate and reccoend to Members such
. ; - . ! b~ ,_'- '
bases and methods for determining the value of products
-8as would appear best suitd. to the needs of camerce
nid most capable of widespread adoption,"
et---., -~ .--.
Thewords- ororher resrictions" in the first
sentease.n:tt s.aragraph .er. changed to "or other
charges or restrictions" to render it clear that
Ichnres
-
- , : "
, E/PC/T/C.6/55/Rev. 1
Page 22
~* .e . *. .
charges other than customs duties are covered.
Text. 18:2
'TheHeIbe ricognize the validity of the general
principles ot tari fsaluowtigon set forth in the f oll ie
sub-paragrapha, and they sndertake to give effect to zuch
principles, irjrespect of all products subJect to duties
charges or r~4ulations based upon value, at the earliest
xracticabledateMoreo7qr, they undertake upon a recuest
'* another Member to review the operation of any of their law
or regulations i]latini to value for duty purposes in
thelsIht of these principles. The Organization is
imbhorz~i to regIeet from 1,oers reports on steps taken
by "hem in pursuance of the provisions of this paragraph."
the`:l&ttvo sentences of the introductory part of
iis paragranaltvere added to the origil text in order
to 5" into account and reconcile diverging views
expressed at the London Session with reference to a
suggested oblgation of Members to review their customs
laUS and regulations relating to tariff valuation.
The Delegates for certain countries (Belgium,
LuxembourgN Ctechoslovakia and the 'etherlands) wished
to pro-ide fb a definite early date for the entry into
force of the -ovisions of paragraph 2. At the London
Session, thg De_. ate for China sugWested that the entry
into force shoulc 'e preceded by transitional period.
The Delegates for certain countries (Belgium,
Luxembourg and the Netherlands) suggested that the
/procedures E/PC/T/C.6/55/Rev.1
Page 23
procedures applied in determining value for duty
purposed-shouldbe more exactly indicated The
Sub-Committee considered, however, that the suggestions
made by these delegates were too detailed for inclusion
in this paragraph. One of these suggestions (concerning
the trial of value litigation)was considered in
connection with Article 21, paragraph 2.
Text, 18:2 (a)
(To be considered in the full Committee. Alternative
texts will be distributed.)
Text, 18:2 (b)
"(b) The value for duty purposes of any imported
product should not include the amount of any internal
tax, applicable within the country of origin or export
from which the imported product has been relieved or
made exempt."
Comment
Sub-paragraph (b) was approved by the Sub-Committee
in its initial version with the addition of the words
"relieved or" before "made exempt" intended to render
this provision analogous with that relating to
anti-dumping and countervailing duties in paragraph 3 of
Article 17.
The question of inserting the words "customs duty
or" before "internal" was considered but deferred for
later decision.
/Text, 18:2 (C) E/PC/T/C.6/55/Re v.1
Page 24
Text 18:2(c)
"(c)In convertingthevalue of any imported
~ ~ ~~~~~~~~~~~~~~~~~~~~~~. . . .
,rodrcput from o01 rnc-''*bhei forthe 1,8os
'' h' g '~ " dutu, the sate of excban&e to be
usewi shotld bi fixed in accordance vth prescrKbed
i ri effect ffectively the current value
cof each scurrency in corcial traneactions.
Commen t
he el.te for the United States reserved.
inthe rieht torecomen&hsertitn-of the words
"or rates" awter 'rate", or otheruise to
provide fourthe conversion of cttrencies in
the cases Qf dupl or multiple rates.
At the Longao *5ssion, the Delelmte for
Chine reserved his position on this
Tcxt 1 : 2 (d)
"The bases and methods for determining the
: . -, ; ::
; W v- of products sulJect to duties regulated
bv v;lue should De stable and should be giien
suffctet publicity to enable traders to
estimated with a reasonble decree of certainty, the
emount of duty likely to be imposed."
~~. ... . .
/Cor~ent E/PC/ T/C.6/55/Rev.1
Page 25
Comment
The words "be given sufficient publicity to
enable traders" in this sub-paragraph replace the
phrase "be published inf ull detail, in order that
traders may be enabled" in the original text. The
change aims at meeting the objections against that
text raised at the London session.
ARTICLE 19. CUST0MS FORMALITIES
Text, 19: 1
The Members recognize the principle that
subsidiary fees and charges imposed on or in
connection with importation or exportation should
be limited in amount to the approximate cost
of services rendered and should not represent
an indirect Protection to domestic products
or a taxation of imports or exports for fiscal
purposes. They also recognize the need for
reducing the number and diversity of such
subsidiary fees and charges, for mimizing
the incidence and complexity of import and
export formalities, and for decreasing and
simplifyingimport and export documentation
requirements."
Comment
Thisparagraph was adopted without change
by the Sub-Committee. E/PC/T/C.6/55/Rev.1
Page 26
Text. 19:2
"Members undertake to give effect to the principles
and objectives of paragraph 1 of this Article at the
earliest practicable date. Moreover, they undertake
,:I.. . , , ., .
upon a request by another Member to review the operation
of any of their customs laws and regulations in the light
of these principle. The Or:nization is authorized
to request from Members reports on steps taken by them
in purWii~ce of the 'zovisions of this paragraph."
Comment
The original text of this paragraph included an
unqualified undertaking by Members to review their customs
t* - ,-*- ,;
laws and regulations with a view to giving effect to
the principles and objectives etc, In view of objections
made at the London session against this provision, the
paragraph was redrafted so as to provide fox the
undertaking by Membezs to (i) give effect to the
principles etc. and (i-) review the operation of
their customs laws end regulations in the light of
these principles upon the receipt of a request from
any Member. The ncw text, it will be observed is
similar to that proposed by the Sub-Comittee with
reference to tariff valuation (paraoraph 2 of Srticle 18).
Text, 19:3
"Except in cases of seriousnegligence, greate-
than nominal penalties over and above thp duty properly
payable should not be imposed by any Member in connection
with the importation of any product of any other Member
country because of errors in documentation which are
obviously clerical in origin or with regard to which
good faith can be established.
/t~~~~~~~~~~~~~~~~~~~nt~~~~~~~r'r :enb
/ Wv.. w E/PC/TC.6/55/Rev.1
Page 27
Comment
In order to meet objections raised by several
delegations at the London Session, provision in the
original text for theremittance of penalties "imposed
because of actions which resulted from errors and
advice of responsible customs officials" was deleted
and the initial few words were added making an exception
from the remaining provision in cases of serious
negligence. For greater clarity, the words "over
and above the duty properly payable" were added after
"nominal penalties."
Text, l9:4
"The provisions of this Article shell extend to
fees, charges, formalities and requirements relatin:
to all customs matters, including:
(a) Consular transactions, such as consular
invoices and certificates;
(b) Quantitative restrictions.
(c) Licensing;
(d) Exchange regulations;
(c) Statistical services;
(f) Documents, documentation and certification;
(g) Analysis and inspection; and
(h) Quarantine, sanitation and fumigation."
Comment
The text adopted by the SubCommittee differs
only slightly from that in the United States Draft
Charter: the word "such as consular invoices and
certificates" under (a) were added at the London session;
/and the words Page 28
and the words "(plant, animal and human " occurring
after "fumigation" (under (h)) in the original text
were deleted.
ARTICLE 20 - MARKS OFORIGIN
Text, 20:1
"The Members agree thatin adopting and implementing
laws and regulations relating to marks of origin, the
difficulties and inconveniences which such measures may
cause to the commerce and industry of exporting, countries
should be reduced to a minimum."
Comment
This paragraph was adopted without change.
Text 20:2
"Each Member shall record to the products of each
other Member country treatment with regard to marking
requirements no less favourable then the treatment
accorded to like products of any third country."
Comment
This paragraph was adopted without any change in
subs tance.
Text, 20:3
"Whenever administratively practicable, Members
should permit required marks of origin to be imposed
at the time of importation."
Comment
At the London Session, certain delegates had
objected to the text of the corresponding paragraph
in the United States.Draft Charter which started:
- * / "Whenever E/PC/T/C.6/55/Rev.1
Page 29
"'Whenever administratively possible, Members shall ."
The present textin which the worde"practicable" and
"should" are substituted for"possible" and "shall,"
represents a compromise acceptable to the majority of
members of the Sub-Committee.The Delegates for
Canada, Czechoslovakia and the United States stated
that they would havepre fred to leave in the word
"shall."
The Delegate for theUnited Kingdom reserved his
position on this paragraph which in his view should be
deleted.
Text. 20: 4
"The laws and regullations of the Members relating
to the marking of imported products shall be such as to
permit compliance without seriously damaging the products,
or materially reducing theirvalue, or unreasonably
increasing their cost."
Comment
The Sub-Committee didnot .t
text of this paragraph;
Text, 20:5
Alternative A.
"The Members undervake to worktowardthe uniform
adoption of a schedule of general categories of products
which shall not in anycase be required to be marked to
indicate their origin. With a view to furthering this
work, the Organization isauthorized to investigate and
recommend to Members descriptions or categories of
products it respect of which marking requirements
/operate to
I E/PC/T/C.6/55/Rev.1 ' '\*,',,, 'ta',
tae .
R- * * . -. > . 5 . . * . ; . .
; . r ', tet -s -rio t. dd sexortiont
an~t sm z~~o~~ erved
Alte~~a '. 4 .
beiritir Orati
~~~~~~~~ 2 '.ok*o.soperatiOr~ tbrou~hs the
Org.nzatiomtowa:. tiae&ua 1 ntifea as
practlcable, of oblitory ma -9' oigin.. ith a
VIe. to..... (etc., same as'tb second sentence of
ALternativy A).
C oent
As given in Article I1 Of the United States Drat
Charter, paragraph 5 eneratad oate3ories of products whicA
*ere to be exempt frn markingrequirements, At the
DcndonSessim, h4oever, agreeneft could not be reached
-i the original texts -andths draft now su'oitted as
Alternative. A was adopted.
The text- shom under B represents an Alternative
woding athe first sentence, -fartherthan the
,. s5 atenmti 1'.~tht wi~xd providethat Members
'aeee to vo&k->- co- operatictuth Or zatio
toard.the gradual e1tminaticn, as f as pact cable, of
obliatory marks or'oriY Thi6txt, supported. b the
D1eetes for Auba.rlia,, Cda,. Chie b,Czechoalovk\
'-i France, was retained with a view tocosidqraticn at t
seond. sbsi= of" xparat Cnittee, The Delegate ,
'or B1614um-Luxeibag, the tT~it-.dIhcga.andzthe United
-. State: cppeed. tbti ext-bedan- th ae donsidered that it
. e W - S a u ; *;; *.*
ulaA6 going too far to mske the Olmination of marking
* - *X -, ' *,_
requi2Ments an:obligatX. :7hDelegate for Belgium-
Luxmburg-d±ew attention to.thot ioct-hat marks of origin
/are f requentIy E/PC/TC.6/55/Rev.1
Page 31
are frequently beneficial tothe consumer and not of a.
discriminatory charter.It waspointed out, however,
that the elimination of marking requirements by
importingcountries did notpreclude the use of marks
of origin by exporting countries
According to the secondsentence, the Organization
.would beauthorized to make recommendati ons concerning
categories of products whichwould not be subject to marking
requirements. While the majority of delegates repressed,
at the Sub-Committee thoughtthis the most useful procedure,
the Delegate for Canada indicated that he would prefer
recommendations as to productswhich may be made subject to
markingrequirements.
Text 20:6
"As a general rule, no special duty or penalty should
be imposed by any Member forfailure to comply with marking
requirements prior to importationunless corrective marking
has beenunreasonably delayedordeceptive marks have been
affixed or the required marking has been intentionally
omitted."
Comment :
Inorder to meet objections anig st therigina
- x-traised byd .by cain, .delegates, the obliation. that would
n ueredlre& by Memberrebasredleibd Uss exacting by
idditIonofwthe vordsa'ene gsenralrule" At the beginning of
the AeticlOand LZsuby zebstngutiuS the w"rds -deceptive marks
teen affixed" or"fafe false harks ave been iioentlcnally
f J w_«. ~. w ,kb _ s.ty
ff-xed- . Dobate fbr. UnitedKingd reserved his
position onhihis paragraph as well as on paragraph 3 of t as
Article.
' ' 'Z/The qresticn The question raised by certain delegates concerning the
right of each country to, prohibit the import, export and
transit of foreign goods falsely marked as being produced
in the country inquestionwas considered, to be covered
primarilyby thewords"deceptivepractices", in Article 37,
sub-paragraph(g). The suggested new paragraph 7 under
Article 20 would also be relevant to this matter.
Text, 2O:7
Alternative A
"The interest of Members in protecting the regional and
geographical marks of origin of their distinctive products
is reconized and shall begivenconsideration by the
. : .
OoGanizaticn whihh is autborized to recommend a conference
of interested Members oj the subJect."
ve"eMeambre B n' a '
"Members agree ta grks trade names and maris of
origin aogni quality that are rec~ized and protected by
other Meionrs, the same protectA.n as is afforded by their
dcmestio negislation to theamesw marks and trade nes
of origin tnd quality, provide Shat these marks and
tradd nameductsate, to like prozdius. They shall, f or this
, zrpe, ..tranmit .^o the Organization a list of such marks
and trade naes as are protected by their domestic legislationF
_._. anid for which thepo wish to secure protection in imorting
countries.
< -ndertake ' urther t'tae part in any conference
- c'aey tbsec f rf to Bcuree<fectiventeationa
profor marks of origen.
/Comment
. m E \~~~~~~~~~~~~~I
S/PC/t/C.6/55/Aev.l
Page 32
.
..
. I .
, I
-
:.;lp ': - Page 33
C omment
The question raised at the London Session concerning
the possible extension of Articlle 20 to include a commitment
by Members to protect in their respective countries the
trade names and marks of origin and quality of other
Members was taken up for new consideration.
The Sub-Committee decided to recommend the text shown
under Alternative A, involving recognition of the interest
of Members in such protection, and an author ization for the
Organization to recommend a conference on the subject. This
alternative was passed by the Sub-Committee without dissent,
through at a roll taken the Delegates for Cuba end the United
Kingdom did not vote and the Delegate for Chile declared that
though in principle supporting this alternative, he wished
.to reserve his position with reward to both Alternatives
A and B. lie considered that further time was required to
study the matter whichthought to be taken up at a later date.
The Delegates for Belgium-Luxemburg, Czechoslovakia
France and the Netherlands, while accepting Alternative A,
did not consider it going far -enough and were in favour of
the text of Alternetive B involving, among other things,
the acceptance of an obligation by Members to grant the
same protection fortrade names and marks of origin and
quality as is afforded by their domestic legislation to
their ownmarks end trade names for like products.
Inthe cours e of the discussion the Delegate for
France, who had proposed AlternativeB, pointed out that if
his suggestion were adopted, thenature of the national
legislation by which such protection is given would not have
to be changed; in fact, if a country had no law protecting
/its domestic E /PC/T/C .6/55/Rev.1
page 34
its domestic trade names and marks, it would not have to
grantany protectiontothetrade namesandmarkrs of
imported products.
ARITCLE 21 - PUBLICATION AND ADMINI STRATIONT OFT RADE
REGULATION - ADVACE NOTICE OF RESTRICTIVE REGULATIONS
Text, 21:1
"Laws, regulations, decisions of judicial authorities
and administrative rulings of general application made
effective by any Member pertaining to the classification
or the valuation of products for customs purposes, or to
rates of duty, taxes or oth er charges, or to requirements,
restrictions or prohibitions on imports or exports or on
the transfer of payments therefor, or affecting their sale,
or distribution, transportation or insurance, or affecting
their warehoucing, inspection, exhibits on, processing,
mixing or other use, shall be published promptly in such a
manner as to enable traders and Governments to become
acquainted with them. Agreements in force between the
Government or a Governmental agency of any Member country
and the Government or Governmental agency of any other
country affecting international trade policy shall also be
published. Copies of such laws, regulations, decisions,
rulings and agreements shall be communicated promptly to
the Organization. This paragraph shall not require any
Member to disclose confidential information which would
impede law enforcement, or otherewise be contrary to the
public interest"[or would prejulice the legitimate business
interests of particular enterprises, public or private.
/Comment page 35
Comment
At the suggestion of the Delegate for Cuba, words were
included rendering the provisions of this paragraph
applicable also to laws, regulations, etc., affecting the
transportation and insurance of imports and exports.
... - ' The rds qtered.-in sciuare brackets in the last
sentence aeoeecant an <arnttive text presented by the
- .at- fo thKingnied M.'sZdomfor consibyration rY the
Doamiing Ccm,:ttee-
The DelFrancte foi ce, while pointIng out that this
peragraph might reilace Artwcleso4 and 6 cf the Convention
of 3 1923mber 2.9? for Simplificausto of Cci'oms
Fo= s!ities,dsuggeste& ught it o-~gt to be supplemented:
si) by Lrxertion of the provisions of Article 5 of that
Ccnvention and (ii) of the Brnssels Cozvention of
50July 1&O on the publication of tariffs; (iii) by providing
for the setting up im each Menber St ate of an organizations
specinily responsible for publishing, within the courtry
and abroad, the laws and regulations relat , to foreign
trade; and finally (iv) by providing for the establishment
within the International Trde Organization of an office
responsible for collecting, aandyzing =A- publishing as
quic- y as possible in the usual lanages laws,
regations and nscisncorar -ccenmig foreign trado and. Or
the periodical collection, in detailed studies, of
..foi=ation concerninompthi caparetive relations of
.e.ber onates ai any given point.
bThomm Sul-caittee E/PC /T/C/. 6/55/Rev.1
page 36
The Sub-Committee felt -that it might be useful if
the Preparatory commit ee were to suggest the absorption
by the Organization ofcertain existinginternational
agencies such as the Brussels Ta riff Bureauand
arrangements for collecting analyzing and publishing
..e -drtd -i -o .L;.it:
(he ifformation cnaidere&-n point civ) oi the
sugsi3tio Just refers to. Attention was drawn in
this bonnactior to ths psoision of paragraph 4 of
Article 81 of theDraft Charter.
Text, 21:2
"EacniMeber sall ad=ninsterin. a ulform,
n;- tial and reasoiable marmer all its laws, regulations,
decisions abnd rulings cf the kind descried in
paragraph 1 c. this Article. Moreover, Members
dertake to maintain, or to institute as soon as
practicable, Judicial, arbitral or administrative
tribupalsosr procedures for the murpc3e of inter alia,
prompt metiew aniveorrection of adainistrate'v
action reletin to unulsoms matters. Such tribtas- or
procedures shall be inde-.ndent of the agencies entrusted
with administrative enforcement."
CcMent .
Certein formal changes were mada in the preceding
sentenc"judin addition; the words %Jacicial or
administrgtnve tribunals" in the oriGimal text were
changed tmin"Judicial, arbitral or adInistrative tribunals
or"proce"ures", and the word wprcmtA was added before
"review" im the second sentence.
iIt is understoc.
. .. E/PC/T/C.6/55/Rev. 1
Page 37
It is understood that the "judicial, arbitral or
administrative tribunals" referred to in this paragraph
neednot be especially established to deal exclusively
with customs matters.
A reservation was made on this paragraph by the
Delegates for New Zealand and the Union of South Africa
who was of the opinion that appeals against administrative
decisions might be made to the competent minister and that
it should not be necessary to provide for independent
tribunals or procedures.
Text,21:3
"No administrative ruling of any Member defecting
an advance in a rate of import duty or other charge
under an established and uniform practice, or imposing
a new or more burdensome requirement, restriction or
prohibition on imports, or on the transfer of payments
therefore, shall, as a general rule and within the limits
of administrative practicability, be applied to products
of any other Member already enroute at the time of
publication thereof in accordance with paragraph 1 of
this Article: Provided, that if any Member customarily
exempts from such new or increased obligations products
entered for consumption or withdrawn from warehouse for
consumption during a period of thirty days after the date
of such publication, such practice shall be considered
faull compliance with this paragraph. The provisions of
this paragraph shall not apply to anti-dumping or
countervailing duties."
/'om 'Ccvnment E/PC/T/C. 6/55/Rev.1
Page 38
Comment
In view of the difficulty of reaching agreement on
this paragraphatthe London Session, the Sub-Committee
introduced two important changes in the substance of the
original text. First, the initial words were changed so as
to render the paragraph applicable to administrative
rulings only (previously laws, regulations and decisions
were also covered). Secondly, the undertaking involved was
modified by introducing the phrase "and within the limits
of administrative practicability" after "as a general rule".
Further, it was thought advisable to limit the
undertaking to imports, and references to export were
accordingly deleted.
The Delegates for Brazil, Czechoslovakia, France,
Norway, the Union of South Africa and the United Kingdom
reserved their position provisionally on this paragraph.
In, connection with that paragraph, the Sub-Committee
considered the words concerning goods enroute entered in
square brackets in sub-paragraph. 2 -(f) of Article 25 (in the
version adopted at the London Session) with the indication
that these words should be retained only if the matter was
not fully covered in Article- 21. The Sub-Committee decided
to recommend to the full Committee that the words in
question, as well as the preceding few lines (concerning
public notice. on import restrictions pursuant to
sub-paragraph 2 (e) of Article 25) be deleted from
sub-paragraph 2 (f) of Article 25 and that paragraph 3 of
Article 27 be amended so asto include the provisions
concerning public notice and goods enroute. To that effect,
/the words E/PC/T/C. 6/55/Rev. 1
Page 39
the word "or made effective through import licenses or
other measures" might have to be*inserted after the
phrase in brackets in sub-paragraph 3 (b) of Article 27,
and anew paragraph would have to be included as No. 3 (c)
(the present sub-paragraph 3 (c) thus becoming 3 (d)).
The sub-paragraphs in question would read as follows:
"(b) in the case of import restrictions involving the
fixing of quotes (whether or not allocated among supplying
countries) ct made effective through import licenses or
other measures, the Member applying the restrictions shall
give public notice of the total quantity or value of the
product or products which will be permitted to be imported
during a specified future period, orof any change in such
quatitity or value.
(c) Any supplies of the product in question which were
enroute at the time at which public notice was given shall
not be excluded from entry, provided that they may be
counted, so far as practicable against the quantity permitted
to be imported in the period in question, and also, where
necessary, against the quantities permitted to be imported
in the next following period or periods."
It will be observed that the insertion in
sub-paragraph 3 (b) of the words "or made effective through
imoort licenses or other measures" would extend the
obligation of giving Public notice in the case of
restrictions other then quotas to cover restrictions not
pursuant to sub-paragraph 2 (e) of Article 25.
/ARTICLE 22 E/PC/T/C.6/55/Rev.1
Page 40
ARTICLE 22 INFORMATION, STATISTICS AND TRADETERMINOLOGY
General Comment
The discussion at the london Session revealed that
certain countries would experience difficulties in
accepting the full undertakings specified in Article 22
as worded in Article 16 of the United States Draft Charter.
The Sub-Committee decided., therefore, to suggest a text
according to which the demands put on Members would be
less exacting; hence expressions such as " so far as
possible", "as is reasonably practicable" or "insofar as
readily ascertainable" were inserted in certain paragraphs.
A number of other Changes were also introduced and the
text was shortened, and simplified paragraph 6 in
Article 16 of the United States Draft Charter, referiing
to the promotion of international andoption of standard
definitions of terms used in commercial practice and in
developing. standards to which goods may be manufactured
or graded appears only in a modified form in paragraph 6
of the text now suggested.
Text, 22:1
"Members undertake to communicate to the Organization
aspromptly and in as much detail as is reasonably
practicable:
(a) Statistics of their external trade in goods
(including, for example, imports, exports, re-exports,
transit and trans-shipment and, where applicable,
goods in warehouse or in bond);
(b) Statistics of Governmental revenue from import
and export duties and other taxes on goods moving in
/international E/PC/T/C.6/55/Rev.1
Page 41
international trade and insofar as readily
ascertainble,of subsidy paymets effecting such
ascertainable ,of subsidy payments effecting such
. far as.poa'a _p,ssibeq the. statistics referred to in
nd (a) edl (b) sea8l de oaagtif tv tartrf classifications
end be in such form as toheeveal tbs operation of any
reAtrictions on importatpon or enywrtatioA ihich are
,et, uln or rigaated manner zner..by quantity or value,
unr by aexchange m ,ade available."
- ex. i . _
* e t , 2 2 : 2 .; !.
"Members eagee to pablisb regularly and as promptly
as possible the statistics re erredto in paragraph 1'"
-: Text, 22:3
"iMebers undertake to zive careful consideration to
any recommendations which the Organization may a!-e to
them with a viev to improvement of the statistical
information furnished. under paagraph l."
Text, !2:4.
"So far as reasonably practicable, Members agree to
make available to the Organization on request such other
statistical information as the Oraenization pay decm
necessary to enable it to fulfil, its functions, provide
tbat such iniot=tQ io IsOt being furnished to other
',"' '',.', . 9 Ov organization roL which the
Organization can obtaIn the te uiro4 f ormation."
;-...' :'t .. Qr' -oFs..,, ce for the
s collection. E/PC/T/C. 6/55/Rev.1
Page 42
collection, exchange and publication of statistical
information of the kind referredto in paragraph 1.
The Organization may, in collaboration with the Economic
and Social Counici of the United nations and its
Commissions, and withany other interested international
Organization, engage in studies with a view to bringing
about improvements in the methods of collecting, analyzing
and publishing economic statisticsand may promote the
international comparability of such statistics, including
the possible international adoption of standard tariff
and commodity classif ications."
Temx, 22:S6 -
"The Organizatyon mao also, in co-operation with the
orger o:,anizations referred to in paragraph 5, study
the question of adopting standards, nomenclatures, terms
and forms to be used in international trade and in the
official documents and statistics of Members relevant
thereto, and may promote the general acceptance by Members
of such standaomds, nrunclattres, terms and forms as may
bmmrncotmehded."
Coriant
ahis psragrape conraspcmds glyeral. ag parceraph 7
in Article 16 of the United States Draft Charter, It
wIll be observed, however, that unlike the last-mentioned
paragraph, tte twx nommeec d nde& does not refer to
the -adoption of standards, nomenclature terms and forms
or to a procedure according to which adopted standards,
euld boaal 'euomemaiiomlllitlcay effeu.ive vpon notice
'Civen by E/PC/T/C.6/55/Rev.1 Page 43
given by the organization in view of this fact, the
Sub-Committee suggests deletion of parah . graph 8 of
le 66, containg riuls for the uc5 i a G adopton mby the
dards ,oeocf sCItwas deti. t ^ ,note&, however,
e laid wn vin r 2 tladoibe Ir paragraph 5 of Article 66
of the Drevisedahteri as rsesiont e flrst Seselo
- .tmhe Pre,mk'ftry Comittee zight be employed to
ng international agree ,:. .cti.B8S ±t> ements for this
ATCIrZ 23 BOYCOTTS
.~.*- . .
Tezt
"Io Member sha1 encourage, support or participate
in boycotts or other csampains which are designed to
discourage, directly or.3diretlyj: the consumption within
.'.C.its :eritox7_0: ofproducts6-of "n specific Member country
or countries on tounds of oritin- or the sale of products
for consumption vithin-othar Member countries on grounds
. . of destinati;", -
. . .. .
Comment
The last sentence of the cqrrespondin3 Article (Io. 17)
in the United States araft Charter, providitG for the
. -s* I
discouragemnt by each Member of boycott campaijno by
subordiiate entities within its Jurisdiction, .vs deleted
0 - since tshsmatter would be covered b .the aition of a
.......... -.X..- . -ti a.iin o , ;*0__ f ._a
new prap.to Atible 'Cas Stei aov un.:
article 15_ . - .
F. &-!/ w. *ie* ir s "any' po m Member country or countries
were substitut64 fo, tbeXpres8in "other 'ember countries
.wbere this page 44
where this first appears in the original text of this
Article since it was condsidered that e ban theban onl boycotts
tion of product of nation o4 or,fa - 6rigin or manutdcture.
the products retea .i ;c. .c: odu of any peoifi
ved his Te. De~b~atef or Tais se~edhi~ position on this
stained. his.oent at
.::Atils 1te~DlgS b ea edh ncata
the llndon Session that Veakercounries should be aLt.wed
to resort to boycotts in solf -defence, esd the Delegate
for Lebaon reiterated hi3 view that boycotts may be
justified on political or moral bounis.
ARTICIE 37 - GEWAL ECETIONS TO CHAPT V
General Coi nt .
-a.' 2- . . . . ' '- AtTe Delagke for Chine
. .' tesed& inclus bo a neva'a.rph coverinG measures
, tempora iipdd to reent,- iist or relieve
conditions of social dtat 'snc','ntural calamity, or
other national emergencies, provided that such measures
axe vithdran asosoon as the sa.i& conditions cease ts
. __, .;,* - , ........ .... .. .v .- -.. *I .
exist," Mie sug-estion las not adopted br the Sub-Codittee;,
but it I'Sto noe. ot that para~raph 2 (b) of Article 25
.. -*- :,* * -; *- . . *. -- -
covers this st,3estion to a large extent.
.* *as - J .t wm : *
: K Sii3.es at the London meeting,the Delegate for
In2a. had ruggestec that his country shouldbe allowed
for reasons of high policy, to discriminate a~einst a
- =ember, either on a recnmndation of the, IMT oz on its
o initiative, provideddue notice had been rivam to
*,- _ j. # ^ . - r < ; -: . ; , - : ; ;. a z.t. .i'
~~ ... .--. * /e Orsan.~zation E/PC/T/C. 6/55/Rev.1
Page 45
the Organization and to every Member concerned. It was
-. . lthtoDelege l&eSr IndiaTh1o.w(wrhe vas not a member of
themm-ub-Ctoittaevtaiihistvign`!s sugestion in the fall
gDraftirCommisteeu d hoal he so desire.
EX ,ARTICLE AMICI37
. . a"ubject to -the requirement that such measures are
'o .- not apple in a minnir whibh wduld constitute a means
of arbiLary or unjustifiable discrimination between
. . - counties -Ahere the same condtionss prevail, or a
Uisguised ngstriction on international trade, nothim in
Chapter V shall beconstrurd to prevent the adoption or
enforcement by any Yember orasures
(a) necessary to protect public morals;
(b) for the krpose of protectina human, anima
or plagt life or health, if coresponding safe-uards
under simglar conditions consist in the importinG
country;
(c) relating to fissionable materials;
Cu) relating to the traffic in arms, ammnnition
and implements of vsr ard to such traffic in other
goods and materials as is carried on for the purpose
of supplying a military establishment;
Ce) in time of war or other emorgency in
international relations, relating to the protection
of the essential security interests of a Member;
(f) relating to the iMortation or exportation
of gold or silver;
_ w (z) necessary to secure compliance with lavs or
regulations which are not inconsistent with the
provisions of Chapter V, such as, e.g. those
relating ; E/PC/T/C . 6/55/Rev. 1
Page 46
relating to customs enforcement, state monopolies,
deceptive. practices, ,and the protection of patents,
trade marks and copyrights;*
(h)-reatingeetna to the products of prison labour;
(i) imposed for the protection of national treasures
of artistic, historic or archaeological value;
(J relating to the conservation of exhaustible
n ltura resourceusif sch measures are taken pursuant
to internatiagal s;reements or are made effective
in conjunction with rcstriCtions on domestic
production or consumption;
(k) undertakenursuas.rsance of obligations under
the United Nations Charter for the maintenance or
restoration of international peace and security."
Cce nt
37, Introductory part:
The initial words ie th' Article, egdinr with
g"dswused restriction on international trade", were
adedd in accordance witp a 1reliminary decision reached
at the London Session.
As the question may arise whether electriw porer
is classified ag a Good or service, Dhe gfeleates for
Canada and Chile reserved the riht for their countries
to prohibit the expofrt ok electric power.
e(a) and :(b)
The Dgle,ate for Noywar pointed out that his
country's restrictions on the importation, production and
sale of alcoholic eevgraces had as its chief object the
promotion of temperance, He therefore considered that
/the taxation Pag e 47
the taxation and the Price policy of its state liquor
andwinemon opol y covered by paragraph (a) and (b)
37 (b ):...
' ':. .' ZThe Delegaztes for Chile, Canchosloakia, Frnce,.
NewZealeand andthe United States preferred the following
: - s)orter version of item (bY: -"necessary to protect
humin, ani=%3 or plant life or health." The Delecate
for thewUnited States, hocever, vas prepared to acoept
therevisedaCuage, . ubjectnmto review by his Gover ent.
.. , ~ (--c): ' :'
The Delegate for Australia reserved his position
on this tem,
37 (d)- (e): N coment
Adt the london Sessin, the Delecate Eor Inia
sw;ested thzt thiz item should not refer to silver which
is hn ordinary coodity -i world trade. TMe
Sub-Comaittee ,wes not in favour of the suggested change.
The words wstate monopolies" inserted vith a
g view to rep sin~ dub-pareaaaph 2 (,) of Article 25 of
t:e> ,ondon text.
: .* 37 -(h):
The words "the products of prison labour" vere
substitutedfor "prison-w.e goods".
37 (i): No cement
.*. - At the london- Session, the Delegate for Ln&ia
este deleion fro "if such measures" to the end
/of the
: Page 48
', -ehparagraph -
. Del gatesEorNewZealas: - ad'nd. Brazil maitained.
theirg=pport Gihen ae tlat SSssion.ugg the sC3estion by
ghe Delesate for India.
g. . . Te e dlednde for Now Zealatd maintained his proposal
" he . .lathat te words torutber" be rddded before "resosrcas".
. . Article 32 oftheIUnted- Sttes. Draft Charter
. correspond to- Article 37.of.the present text) contains
on adl tional item readtr::
() imposed. n accordnce. wth a determination or
recoie.ndamtton, of the Orzenization forulated under
para[raphs , or 7 of Article 55."
The respective parapanhz in the corresponding
Xrticle of the Londoa text (No. 56) deal with the
detemination of criteriane the setting up of procedures
g . b- the Conferencemfoa wivt.nC in exceptional circurstcnces
. . arlisattns of MIembers pursuant to the Cheter and. for
. letesrinaiono and recoendations provided for in
* a Article- 3; par.;ramph 3o- articlee 52, sub-paegraph 3 (ad)
of Article 26, paragr7ph 2 of Article 34 and Article 35.
-- . e: Sub -CostSe considered that the articles in question
- covered adequately the exception considered under
item (.) quoted above end laS hence of tne opinion that
this item should not be included in Arricle 37. |
GATT Library | pw279qj6853 | Report of the Working Party on preamble of paragraph 1 and sub-paragraph (b) of paragraph 1 of the new Article 12 a proposed by Colombia and on the additional paragraph to article 12 proposed by Costa Rica concerning double taxation | United Nations Conference on Trade and Employment, December 30, 1947 | Joint Sub-Committee of Committees II and VI | 30/12/1947 | official documents | E/CONF.2/C.26/A/W.3, E/CONF.2/C.2/D/W.1-3, C.23/A/W.1-3, and C.26/A/W.1-29 | https://exhibits.stanford.edu/gatt/catalog/pw279qj6853 | pw279qj6853_90180358.xml | GATT_151 | 313 | 2,228 | United Nations Nations Unies RESTRICTED
E/CONF.2/C .2&6/A/
CONFERENCE CONFERENCE 30December 1947
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
JOINT SUB-COMMITTEE OF COMMITTEES II AND VI
REPORT OF THE WORKING PARTY ON PREAMBLE OF PARAGRAPH 1 AND SUB-PARAGRAPH (b)
OF PARAGRAPH 1 OF THE NEW ARTICLE 12 A PROPOSED BY COLOMBIA AND ON THE
ADDITIONAL PARAGAPE TO ARTICLE 12 PROPOSED BY COSTA RICA
CONCERNING DOUBLE TAXATION
1. The Joint Sub-Committee of Committees II and VI, at its sixth meeting
on 22 December 1947, constituted the Working Party to examine further the
proposals of Costa Rica and Colombia concerning double taxation and to make
recommendations as to whether the objectives of the proposed amendments should
be incorporated into the Charter and if so, in what way this should be done.
2. The Working Party considered that the existence of double taxation or
discriminatory taxation might be a substantial obstacle to international
Investment and a consequent deterrent to the free flow of such Investment.
Since private investment is a considerable source of economic development,
the Working Party believed that this problem should be tackle& within the
framework of Chapter III, despite the general provisions of Article 69.
3. The Working Party, therefore, agreed upon a text to be Inserted in
paragraph 3 of Article 11, to read as follows:
`3. The Organization may, in such collaboration with other
inter-governmental organizations as may be appropriate, make
recommendations for and promote [international] bilateral or multilateral
agreement on measures designed:
(i) to assure just and equitable treatment for the enterprise,
skills, capital, arts and technology brought from one Member
country to another, including the elaboration and adoption
of a general agreement or statement of principles as to the
conduct, practices and treatment of foreign investment;
(ii) to avoid international double taxation and discriminatory
tax burdens, in order to stimulate the flow of foreign private
investments". |
GATT Library | xx146mn8622 | Report of the Working Party on preamble to paragraph 1 and sub-paragraph (a) of paragraph 1 of new Article 12A proposed by Colombia | United Nations Conference on Trade and Employment, December 29, 1947 | Joint Sub-Committee of Committees II and VI | 29/12/1947 | official documents | E/CONF.2/C.26/A/W.2, E/CONF.2/C.2/D/W.1-3, C.23/A/W.1-3, and C.26/A/W.1-29 | https://exhibits.stanford.edu/gatt/catalog/xx146mn8622 | xx146mn8622_90180356.xml | GATT_151 | 1,105 | 7,543 | RESTRICTED
United Nations Nations Unies E/CONF.2/C.2&6/ A/W.2
CONFERENCE CONFERENCE 29 December 1947
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
JOINT SUB-COMMITTEE OF COMMITTEES II AND VI
REPORT OF THE WORKING PARTY ON PREAMBLE TO PARAGRAPH 1 AND
SUB-PARAGRAPH (a) OF PARAGRAPH 1 OF NEW ARTICLE 12A
PROPOSED BY COLOMBIA
1. The Joint Sub-Committee of Committees II and VI at its fourth meeting
on 18 December 1947 constituted the Working Party to examine the preamble to
paragraph 1 and sub-paragraph (a) of paragraph 1 of the New Article 12A
proposed by Colombia and to make recommendations as to how the objectives of
the proposed New Article might be attained, whether by appropriate
re-drafting in the Charter, by a resolution of the Conference or by reference
to a study group to be constituted by the Conference.
2. Pursuant to its instructions the Working Party agreed that Articles 10
and 69 should be amended in the manner shown in Annexes A and B respectively.
It also agreed that the Conference should by a resolution in the form shown
in Annex C direct the Interim Commission of the International Trade
Organization, or if no such Commission is established a special committee
to study and report as to the appropriate structure and administrative
methods for carrying out the positive functions of the Organization in the
field of economic development.
3. In the proposed re-draft of Article 10 (Annex A) it was agreed that the
words "regional or", placed in square brackets, should be included
provisionally to ensure that there would be appropriate collaboration with
regional inter-governmental organizations. It was agreed that the Central
Drafting Committee should be asked to decide whether the words placed in
square brackets or similar words should be retained or whether the term
"inter-governmental organizations" included "regional inter-governmental
organizations", particularly in view of the limited interpretation given to
the term "inter -governmental organization" by Committee I. (See
E/CONF.2/C .1/15).
4. The Working Party considered that the powers of the Organization as
stated in the proposed re-draft of paragraph 2 of Article 10 included the
duty of advising on establishments for technical training necessary for
progressive industrial and general economic development. However to remove
/any possible doubt E/CONF. 2/C .2&6/A/W.2
Page 2
any possible doubt as to the Organization's powers to promote international
agreements for this purpose sub-paragraph (iv) was included in the proposed
re-draft of paragraph (c) of Article 69 (Annex B).
5. The Working Party, being solely concerned with the preamble of paragraph 1
and sub-paragraph (a) of paragraph 1 of new Article 12A proposed by Colombia,
did not take into consideration either the amendments proposed to Article 10
or the proposals of Mexico relating to the establishment of an Economic
Development Committee. Accordingly the proposed re-drafts of Articles 10 and
69 should not be construed to prejudge these amendments.
/ANNEX A E/CONF. 2/C. 2&6/A/W. 2
Page 3
ANNEX A
Article 10 - Paragraph 2
Replace existing text by:
"With a view to promoting industrial and general economic
development especially of those countries which are still relatively
undeveloped and subject to any arrangements entered into between the
Organization and the Economic and Social Council and appropriate
inter-governmental organizations, the Organization shall, within
its powers and resources, at the request of any Member:
(a) (i) study its natural resources and assist in the
formulation of plans for its economic development;
(ii) furnish it with appropriate advice concerning its
plans for economic development;
(iii) provide appropriate advice concerning the carrying
out of its programmes for economic development;
or (b) assist it to procure such advice or study.
These services are to be provided on terms to be agreed and in
such collaboration with [regional or] other inter-governmental
organizations as will use fulIy the special competence of each of them."
/ANNEX B E/CONF.2/C .2&6/A/W.2
Page 4
ANNEX B
Article 69 - Paragraph (c)*
Text to read:
"to undertake studins on, make recommendations for, and promote
international bilateral or multi-lateral agreements on, measures
designed
(i) to assure .........enterprises;
(ii) to expand .... taxation;
(iii) to carry out on a 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 general economic development; and
(v) generally to achieve any of the objectives set forth in
Article 1."
*
add to present draft.
/ANNEX C E/CONF.2/C. 2&6/A/W. 2
Page 5
ANNEX C
DRAFT RESOLUTION TO BE ADOPTED BY THE CONFERENCE
The United Nations Conference on Trade and Employment, having considered
the problem of the industrial and general economic development of the
Members of the International Trade Organization; and
Raving noted the related activities of other inter-governmental
organizations and specialized agencies; and
Having determined that positive measures for the promotion of the
economic development of Members are an essential condition for the realization
of the purpose stated in Article 1 of the Charter of the International
Trade Organization and to the accomplishment of the objectives therein
set forth; and
Having regard to the provisions of Articles 10, 69 and 84 of the
Charter,
Therefore resolves:
1. That the Interim Commission of the International Trade
Organization* is hereby directed to examine
(i) the powers, responsibilities and activities in the
field of industrial and general economic development
of the United Nations, of the specialized agencies and
of other inter-governmental organizations, including
regional organizations;
(ii) the availability of facilities for technical surveys
or studies of the natural resources of underdeveloped
countries, or of the possibilities of their industrial
development, whether general or of particular industries
or for the improvement of their systems of transportation
and communications, or with respect to the manner in which
investment of foreign capital may contribute to their
economic development;
and in the light of this examination to report to the Organization
upon
(i) the structure and administrative methods,
(ii) the working relations with the United Nations, the
specialized agencies and other inter-governmental
* If no such Commission is formed, a special committee shall be named.
/organizations including E/CONF. 2/C. 2&6/A/W. 2
Page 5
organizations including regional organizations
which will enable the International Trade Organization
moet effectively to carry out its positive functions for
the promotion of the economic development of Members.
2. That the report and recommendations of the Interim Commission*
shall be submitted in such a manner and at such a time as will
enable the Conference of the International Trade Organization to
take appropriate action at its first session.
* If no such Commission is formed, a special committee shall be named. |
GATT Library | mf371sk1979 | Report of Working Party on chapter VI : Provisional application of chapter VI of the Havana Charter | Interim Commission for the International Trade Organization, [ca. 1947 - 1994] | Interim Commission for the International Trade Organization (ICITO/GATT) | NaT | official documents | ICITO/1/W.3, ICITO/1/28-37, ICITO/1/W.1-4, and ICITO/1/SR.1 | https://exhibits.stanford.edu/gatt/catalog/mf371sk1979 | mf371sk1979_90180056.xml | GATT_151 | 1,392 | 9,198 | ICITO/1/W.3
DRAFT
Interim Commission for the
International Trade Organization
REPORT OF WORKING PARTY ON CHAPTER VI
Provisional Application of
Chapter VI of the
Havana Charter
As requested by the emergency session of the Executive
Committee on 22nd July (ICITO 1/19), the Working Party has
considered possible methods of giving effect to the
provisions of Chapter VI pending the entry into force of
the charter which might be proposed as alternatives to the
protocol of provisional application suggested by the United
Kingdom Delegation. The Working Party presents an alternative
method which it considers suitable, namely a decision to be
taken by the CONTRACTING PARTIES under Article XXV of the
General Agreement on Tariffs and Trade. A draft decision which
might be recommended to the CONTRACTING PARTIES by the
Executive Committee is annexed to this Report.
In presenting this draft decision, the Working Party
wishes to draw the attention of the Executive Committee to
the differences between the two methods which have now been
proposed. The main points of difference are summarized in
the following paragraphs. (For the sake of brevity, the
protocol of provisional application proposed by the United
Kingdom Delegation will be referred to as the "protocol",
and the decision of the CONTRACTING PARTIES proposed by the
Working Party will be referred to as "the decision"). 2.
(i) Obligations of participants
The protocol would bring all of Chapter VI
into force provisionally among signatories. The
decision would involve the obligations on the
part of the participant to be guided by the general
principles of Chapter VI. The extent of the difference
might not be great in practice, since the provisions of
Chapter VI are designed to carry out the general
principles of the Chapter and the decision provides
administrative machinery.
(a)The extent to which the Contracting Parties
would be bound
The protocol would bind only Contracting
Parties accepting it. The decision would bind
all Contracting Parties. The Working Party
considers however, that the decision would not
bind Contracting Parties to any obligations
additional to those to which they are
already bound as Contracting Parties to the
General Agreement. Moreover in the field
in commodity problems the need for proceeding
by majorities including practically all
interested countries generally is recognized.
(b) The extent to which non-Contracting Parties
would be bound
The protocol would bind non-Contracting
Parties accepting it equally with Contracting
Parties accepting it. The decision would
bind non-Contracting Parties by virtue of
their acceptance of the ECOSOC Resolution
as the basis of their participation. They
could not be bound by a majority vote of the
participants. 3.
(ii) Entry into force
The decision would be effective immediately. The
protocol would pre-suppose signature by a nucleus of
countries of importance in the commodity field; after
they had signed the protocol there might be delay in
obtaining the signatures of other countries. It is
known that at least two contracting parties would
probably not be able to submit the protocol to their
parliaments for approval because the Havana Charter has
already been submitted.
(iii) Relation to other obligations of the General
Agreement
Under both the protocol and the decision the parti-
cipating Contracting Parties would be committed to certain
obligations in respect of the use of quantitative
restrictions, subsidies etc., while the participating
non-Contracting Parties would not be so committed.
(iv) Secretariat
The protocol would allow the l.C.C.I.C.A. to pass
out of existence, which possibility was implied in its
letter to the Secretary-General of the United Nations, and
another international entity would be created. Under the
decision, on the other hand, I.C.C.I.C.A. would probably
continue and expand its activities pending the ratification
of the International Trade Organization.
Procedural Questions
It is provided in the draft decision that the CONTRACTING
PARTIES from time to time consider the matters referred to
therein in accordance with a procedure to be established. The
preparation and adoption of a detailed procedure is a task which
must be left to the CONTRACTING PARTIES. But, in view of the 4.
fact that the procedure to be adopted might in some particulars
affect the consideration of this proposal by the Executive
Committee, the Working Party wishes to mention the two main
procedural questions involved:
1. The responsibility for convening meetings -
It is contemplated that meetings of the CONTRACTING
PARTIES to consider the matters referred to in the decision
would be convened by the Chairman of the CONTRACTING PARTIES
after consultation with the Chairman of the I.C.C.I.C.A.
Such meetings would be convened by the Chairman on the
request of a Contracting Party or of I.C.C.I.C.A.; if a
government which is not a Contracting Party or an inter-
governmental organization should desire to request a
meeting, this request would be addressed to I.C.C.I.C.A.;
2. Rights and obligations of non-Contracting Parties at
such meetings -
It is suggested that a government which is not a
Contracting Party, which is invited to participate in the
consideration by the CONTRACTING PARTIES of matters referred
to in the decision, should have the right to full parti-
cipation including voting rights with the sole exception
of voting on matters referred to in subparagraph (c) of
the decision. It would be understood that a decision on
any matter arising from sub-paragraph (c) would not be
binding on governments which are not Contracting Parties. Draft
ANNEX
DECISION TAKEN BY THE CONTRACTING PARTIES
AT THE THIRD SESSION, Annecy, 1949
DECISION OF AUGUST 1949 CONCERNING JOINT ACTION BY THE
CONTRACTING PARTIES ON INTERNATIONAL TRADE IN
PRIMARY COMMODITIES
WHEREAS special difficulties which may jeopardize the general
policy of economic expansion are occurring or are likely to occur
in the international trade in primary and related commodities,
which difficulties are giving rise to international discussion of
inter-governmental commodity agreements relating to these commodi-
ties, and
WHEREAS the solution of these difficulties on appropriate
lines is essential to the objectives of the General Agreement on
Tariffs and Trade as set out in the preamble thereto, and
WHEREAS the General Agreement provides in paragraph I (h)
of Article XX that nothing in the Agreement shall be construed
to prevent the adoption or enforcement by any contracting party
of measures undertaken in pursuance of obligations under inter-
governmental commodity agreements conforming to the principles
approved by the Economic and Social Council of the United Nations
in a Resolution of March 28, 1947, and now incorporated in Chapter
VI of the Havana Charter, and
WHEREAS the Interim Co-ordinating Committee for International
Commodity Arrangements established by the aforementioned Resolution
of the Economic and Social Council in a letter addressed to the
Secretary-General of the United Nations has expressed doubt
whether at the present time an interim body not composed of
representatives of governments can effectively exercise the
functions assigned to the international Trade Organization in
this matter by Chapter VI of the Havana Charter, WHEREAS paragraph 1 of Article XXIX of the General Agreement
provides that the Contracting Parties undertake to observe to the
fullest extent of their executive authority the aforesaid principles
pending their acceptance of the Havana Charter in accordance with
their constitutional procedures, and
WHEREAS Article XXV of the General Agreement provides that
representatives of the Contracting Parties shall meet from time
to time 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 objective
of the Agreement:
The CONTRACTING PARTIES decide -
a) to consider from time to time as may be necessary in
accordance with a procedure to be established, the
matters referred to in this Decision;
b) to invite other governments eligible for membership in the
International Trade Organization which are to participat
principle of the
in such consideration on the basis of the/Resolution of
the ECOSOC referred to in this Decision;
c) to review, having regard to paragraph (h) of Article XX,
existing commodity agreements in which one or more
contracting parties particpate, to ascertain whether or
not they conform to the principles referred to in
Article XXIX of the General Agreement;
d) to take or recommend such other action as may be appro-
priate in the light of the aforesaid principles.
including the convening of commodity study groups and/
or conferences; and
e) to request the Interim commission for the International
Trade Organization to furnish such additional secretariat
services as may be necessary for the carrying out of
these functions.
- 2 - |
GATT Library | vn645wc7735 | Report of Working Party on chapter VI : Provisional application of chapter VI of the Havana Charter | Interim Commission for the International Trade Organization, [ca. 1947 - 1994] | Interim Commission for the International Trade Organization (ICITO/GATT) | NaT | official documents | ICITO/1/W3/Rev.1, ICITO/1/28-37, ICITO/1/W.1-4, and ICITO/1/SR.1 | https://exhibits.stanford.edu/gatt/catalog/vn645wc7735 | vn645wc7735_90180057.xml | GATT_151 | 1,362 | 8,937 | ICITO/1/W3/Rev.1
DRAFT
Interim Commission for the
International Trade Organization
REPORT OF WORKING PARTY ON CHAPTER VI
Provisional Application of Chapter VI
of the Havana Charter
As requested by the emergency session of the Executive Committee
on 22nd July (ICITO 1/19), the working Party has considered possible
alternative methods to give effect to the provisions of Chapter VI
pending the entry into force of the Charter but without prejudice
to the final decision as to whether the Chapter should be put into
effect or not. A proposal submitted by the United Kingdom Delegation
in the form of a draft Protocol of provisional application is
contained in document ICITO 1/W.1 and the Working Party presents
an alternative method which might be adopted, namely & Decision to
be taken by the Contracting Parties under Article XXV of the General
Agreement on Tariffs and Trade. A draft Decision which might be
recommended to the Contracting Parties by the Executive Committee
is annexed to this Report.
In presenting this draft Decision, the Working Party wishes
to draw the attention of the Executive Committee to the differences
between the two methods. The main points of difference are summarized
in the following paragraphs. (For the sake of brevity, the draft
protocol of provisional application proposed by the United Kingdom
Delegation will be referred to as " the Protocol ", and the draft
decision of the Contracting Parties given in the Annex to this
Report will be referred to as " the Decision ") :- 2.
(1) Extent of obligations
The nature of the obligations under the two
methods might in practice not be greatly different.
The Protocol would indirectly impose on its signatories
the obligations of Chapter VI on a provisional basis
and would provide for their administration through
machinery similar to that contemplated in that Chapter,
The Decision, in order to implement the obligation
to observe the principles of Chapter VI, would also
set up machinery which would be operated substantially
in accordanee with the provisions of that Chapter.
(ii) The extent to which the Contracting Parties
would be bound
The Protocol would bind those contracting parties
accepting it whereas the Decision would bind all
contracting parties. The Working Party considers, however,
that neither the Protocol nor the Decision would bind
contracting parties to any obligations additional to tho
to which they are already bound as contracting parties to
the General Agreement, but both would establish machinery
for impleminting those obligations.
(iii) The extent to which non-contracting parties would
be bound
The Protocol would bind non-contracting parties
accepting it equally with contracting parties accepting
it. Under the Decision non-contracting parties which
participate in the consideration would be bound to observe
the principles of Chapter VI by virtue of their acceptance
of the ECOSOC Resolution mentioned in the Decision as
a condition of their participation. The Decision would be a formaly in effect immediately.
the Protocol would pre-suppose signature by a nucleus of
Countries of importance in the commodity field; after
they had signed the Protocol there might be delay in
obtaining the signatures of other countries. It would be
difficult at this time to foresee under which method more
speedy action could be taken.
(v) Secretariat
The Protocol would allow the I.C.C.I.C.A. to pass
out of existence, which possibility was implied in its
letter to the Secretary. General of the United Nations,
and another international entity would be created. Under the
Decision, on the other hand, I.C.C.I.C.A. would probably
Continue and expand its activities pending the establishment
of the International Trade Organization.
Procedural Questions
It is provided in the draft decision that from time to time
the matters referred to therein will be considered in accordance
with a procedure to be established. The preparation and
adoption of a detailed procedure is a task which must be left to
the Contracting Parties, But, in view of the fact that the
procedure to be adopted might in some particulars affect the
consideration of this proposal by the Executive Committee, the
Working Party wishes to mention the two main procedural questions
involved:
1. The responsibility for convening meetings
It is contemplated that meetings to consider the matters
referred to in the Decision would be convened by the
Chairman of the Contracting Parties after consultation with
the Chairman of the I.C.C.I.C.A.. Such meetings would be 4.
convened by the Chairman on the request of a contracting
party or of I.C.C.I.C.A.; if a government which is not a
contracting Party Or an inter-governmental organization
should desire to request a meeting, this request would be
addressed to I.C.C.I.C.A.;
2. Rights and obligations of parties at
such meetings -
It is suggested that a government which is not a
contracting party, which is invited to participate in the
consideration by the CONTRACTING PARTIES of matters referred
to in the decision, should have the right to full participation
including voting rights with the sole exception of voting on
matters referred to in sub-paragraph (c) of the decision.
It would be understood that a decision on any matter arising
from sub-paragraph (c) would not be binding on governments
which are not contracting parties. Draft
ANNEX DECISION TAKEN BY THE CONTRACTING PARTIES
AT THE THIRD SESSION, Annecy, 1949
DECISION OF AUGUST 1949 CONCERNING JOINT ACTION BY THE
CONTRACTING PARTIES ON INTERNATIONAL TRADE IN
PRIMARY COMMODITIES
WHEREAS special difficulties which may jeopardize the general
Policy of economic expansion are occurring or are likely to occur
in the international trade in primary and related commodities,
which difficulties are giving rise to international discussion of
inter-governmental commodity agreemnts relating to these commodi-
ties, and
WHEREAS the solution of these difficulties on appropriate
lines is essential to the objectives of the General Agreement on
Tariffs And Trade as set out in the preamble thereto, and
WHEREAS the General Agreement provides in paragraph 1 (h)
of Article XX that nothing in the Agreement shall be construed
to prevent the adoption or enforcement by any contracting party
of measures undertaken in pursuance of obligations under inter-
governmental commodity agreements conforming to the principles
approved by the Economic and Social Council of the United Nations
in a Resolution of March 28, 1947, and now incorporated in Chapter
VI of the Havana Charter, and
WHEREAS the Interim Co-ordinating Committee for International
commodity Arrangements established by the aforementioned Resolution
of the Economic and Social Council in a letter addressed to the
Secretary-General of the United Nations has expressed doubt
whether at the present time an interim body not composed of
representatives of governments can effectively exercise the
functions assigned to the International Trade Organization in
this matter by Chapter VI of the Havana Charter, 6.
WHEREAS paragraph 1 of Article XXIX of the General Agreement
provides that the Contracting Parties undertake to observe to the
fullest extent of their executive authority the aforesaid principle
pending their acceptance of the Havana Charter in accordance with
their coustitutional procedures, and
WHEREAS Article XXV of the General Agreement provides that
representatives of the Contracting Parties shall meet from time
to time 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:
The Contracting parties decide
a) to consider from time to time as may be necessary in
accordance with a procedure to be established, the
matters referred to in this Decision;
b) to invite other governments which are eligible for
membership in the International Trade Organization to
participate in such consideration on condition that they
accept the Principles of the Resolution of the ECOSOC
referred to in this Decision;
c) to review, having regard to paragraph 1 (h) of Article XX,
existing commodity agreements, in which one or more
contracting parties participate, to ascertain wether or
not they conform to the principles referred to in
Article XXIX of the General Agreement;
d) to take or recommend such other action as may be appropriat.
in the light of the aforesaid principles including the
convening of commodity study groups and/or conferences;
and
e) to request the Interim Commission for the International
Trade Organization to furnish such additional secretariat
services as may be necessary for the carrying out of
these functions. |
GATT Library | yd566ft9679 | Report on First Session : Corrigenda | United Nations Economic and Social Council, January 21, 1947 | United Nations. Economic and Social Council and Preparatory Committee of the International Conference on Trade and Employment | 21/01/1947 | official documents | E/PC/T/C.6/W.7 and E/PC/T/C.6/W/1-25 | https://exhibits.stanford.edu/gatt/catalog/yd566ft9679 | yd566ft9679_90230207.xml | GATT_151 | 465 | 3,001 | United Nations Nations Unies
RESTRICTED
ECONOMIC CONSEIL E/PC/T/C. 6/W.7
AND ECONOMIQUE 21 January 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
PREPARATORY COMMITTEE OF THE CONFERENCE ON
TRADE AND EMPLOYMPENT
REPORT ON FIRST SESSION
CORRIGENDA
The United Kingdom Representative on the Interim Drafting Committee has
noted. certain passages in which the Report, as printed, àppeare to call
for corrections of a verbal or typographical character. These are set
out below.
PART II
Chapter I
Section D: paragraph 4 (on page 5) last line but one, for "virtually"
read "vitally".
Chapter II
Section A: paragraph 6 (c) (on page 11), third line, for "unilateral"
read "multilateral". Ditto fifth line, at the beginning
of the line, for "agreement or" read. "agreements or".
Section C: paragraph I (n) (i) (on page 12), first line, for
"Chapter V" read "Chapter VII of the Charter".
Appendix (Test of Charter)
Page 27: footnote to Article 11 (3) for "Section I,
paragraph 5" read "Section J",
Article 14: paragraph (2) (a) (ii). Thie sub-pargraph should. contain
only one sentence. The sentence beginning "Each Member"
should. begin a new unnumbered sub-paragraph.
Article 25 (2) (f), line 6: insert square bracket before ."Provided".
Article 26 (2) (a) insert bracket at end of sub-paragraph.
" " (3) (d), line 9: read "there is a prima. facie case".
/Article 27 (3) E/PC/ /C .6/W.7
Page 2
Article 27 (3) (b), line 6: for "charge" read. "change".
" " (4), lines 2 and 3: read "with sub-paragraph. 2 (f) of
Article 25 or under sub paragraph (d) of the present Article".
Article 28 (1) (d) (i), line 3: read. "with a common quota" etc.
Article 32 (2), sixth line. The sentence beginning "With regard. to any
monopolized. product" should begin a new paragraph.
numbered (3). The present paragraph (3) should then
be re-numbered (4).
Article 41 (a), line 3: after "any specialized agency" insert a comma.
Article 48 (3): eighth line, for "Member" read. "Members".
Article 56 last line: for "Article 71" read "Article 86".
Article 61: delete "(1)" at the beginning of the Article and insert
it before "To collect" as a new paragraph.
Article 88 (3), line 1: for "of the sixtieth day" read.
"on the sixtieth day".
Page 41: Annexure A
Delete the heading "1. Countries of the British
Commonwealth".
In column two, after "Ireland" insert "India".
Page 48: Annexure 8:
Last paragraph, four lines from the end, for "Article II"
read. "Article 11".
Page 48: Annexure 10:
Section A, third line, for "traffic" read "tariff".
Section C, paragraph 4 (on page 49),r fourth line, for
"Article 31" read. "Article 32".
Section H (2) (on page 51), three lines from the end,
for "Section ." read "Section K".
Section K (on page 52), Article II, first line, enclose
the words "and 33" in square brackets. |
GATT Library | dv135sj3866 | Report to Heads of Delegations by the Sub-Committee on Nominations | United Nations Conference on Trade and Employment, November 23, 1947 | 23/11/1947 | official documents | E/CONF.2/W.1, E/CONF.2/W/1-15, E/CONF.2/BUR.1-39, and E/CONF.2/BUR/W.1 | https://exhibits.stanford.edu/gatt/catalog/dv135sj3866 | dv135sj3866_90180149.xml | GATT_151 | 252 | 1,827 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
RESTRICTED
E/CONF.2/W.1
23 November 1947
ORIGINAL: ENGLISH
REPORT TO HEADS OF DELEGATIONS
BY THE SUB-COMMITTEE ON NOMINATIONS
The Sub-Committee on Nominations met at 10.30 a.m. and 4.00 p.m. on
23 November under the Chairmanship of the Executive Secretary. The Sub-
Committee considers that, in order to make it possible to assure adequately
the representative character of the General Committee, its membership
should number eighteen instead of sixteen proposed in Rule 12 of the Draft
Rules of Procedure contained in E/CONF.2/2/Rev.1. The Sub-Committee,
therefore, recommends an appropriate emendation of the rule in question.
On the basis of a General Committee of eighteen members the Sub-
Committee submits the following nominations for the consideration of the
Heads of Delegations:
First Vice President
Second Vice President
Vice Presidents
Chairmen of Principal committees
Committee I, Employment and
Economic Activity
Committee II, Economic Development
Committee III, General Commercial
Policy
Committee IV, Restrictive Business
Practices
Committee V, Inter-governmental
Commodity Agreements
Committee VI, Organization
Elected Members
Mr. Wunsz King (China)
M. Andre Philip (France)
Mr. A.G. Bottomley (United Kingdom)
Mr. William L. Clayton (United States)
M. Max Suetens (Belgium)
The Honourable C.H. Bhabha (India)
Sr. Luis D. Tinoco (Costa Rica)
Dr. Z. Augenthaler (Czechoslovakia)
M. Anis Azen (Egypt)
Right Honourable W. Nash (New Zealand)
M. Walter Stucki (Switzerland)
The Honourable J.J. Dedman (Australia)
Sr. Ramón Beteta (Mexico)
The Honourable L.D. Wilgress (Canada)
Dr. César Charlone (Uruguay)
Mr. George Hakim (Lebanon)
Mr. Erik Colban (Norway) |
|
GATT Library | rn124hp7752 | Report to the General Committee of the Sub-Committee upon rule 54 of the rules of procedure | United Nations Conference on Trade and Employment, December 1, 1947 | General Committee | 01/12/1947 | official documents | E/CONF.2/BUR.3, E/CONF.2/W/1-15, E/CONF.2/BUR.1-39, and E/CONF.2/BUR/W.1 | https://exhibits.stanford.edu/gatt/catalog/rn124hp7752 | rn124hp7752_90180167.xml | GATT_151 | 274 | 1,936 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/BUR.3 1 December 1947
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
GENERAL COMMITTEE
REPORT TO THE GENERAL COMMITTEE OF THE SUB-COMMITTEE UPON RULE 54 OF THE
RULES OF PROCEDURE
The Sub-Committee, consisting of Messrs. Beteta. Hakim, Nash and
Philip, which was set up by the General Committee to consider a substitution
for or an amendment to the present text of Rule 54, recommends with the
concurrence of the delegate for Chile, that the following text be substituted
for that approved by the Conference on 26 November 1947:
"Chairmen of Committees and Sub-Committees shall arrange the
control of meetings in such a manner as to give the maximum opportunity
to all delegates to express their views and in particular those
delegates who advise the Chairman in writing of their desire to be
heard on a particular subject.
"Results of discussion and eventual voting on proposals or
amendments to the Charter in Committee and Sub-Committees shall,
when reported to principal Committees or Plenary Sessions, mention
accepted and rejected proposals or amendments.
"Any member may reopen debate in plenary meetings on proposals or
amendments accepted or rejected by committees or sub-committees".
It will be noted that the first paragraph of the present text of
Rule 54 has already been covered by the following Conference decision
reached on 28 November 1947 (E/CONF.2/SR.5):
"All formal proposals to amend the draft Charter, apart from
those arising out of and in the course of discussion at the Conference,
shall be submitted in writing to the Executive Secretary not later
than Saturday, 6 December." (General Committee Recommendations to
the Conference, E/CONF.2/BUR.2). |
GATT Library | kd856gy6407 | Reports of Committees and Principal Sub-Committees | United Nations Conference on Trade and Employment Havana, [ca. 1947 - 1994] | NaT | official documents | ICITO/1/8, ICITO/INF/1-8, and ICITO/1/1-16 | https://exhibits.stanford.edu/gatt/catalog/kd856gy6407 | kd856gy6407_90180018.xml | GATT_151 | 18 | 145 | ICITO/1/8
United Nations Conference on Trade and Employment
Havana
REPORTS OF COMMITTEES AND
PRINCIPAL SUB-COMMITTEES
see ICITO/W.1
Printed |
|
GATT Library | bz061xb8061 | Resolution proposed by the President on voting in the Conference | United Nations Conference on Trade and Employment, November 29, 1947 | 29/11/1947 | official documents | E/CONF.2/12 and E/CONF.2/8-13 | https://exhibits.stanford.edu/gatt/catalog/bz061xb8061 | bz061xb8061_90040065.xml | GATT_151 | 355 | 2,281 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/12
ON DU E CONF. 29 November 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
RESOLUTION PROPOSED BY THE PRESIDENT ON VOTING IN THE CONFERENCE
THE UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT HAVING REGARD
to the views expressed in the Conference with reference to equality In the
matter of voting but
CONSIDERING THAT it is not prsacticable at this stage to seek a review
of the decision taken by the Economic and Social Council upon the question
of voting sights At the Conference for non-Members of the United Nations
RESOLVES THAT
1. In order to accord to all delegations equality to the fullest extent
practiocable, decisions of the Conference and its committees shall be
reached, so far as possible, without resort to voting.
2. At the close of the discussion the President of the Conference or the
chairman of a committee shall consult the members of the Conference or the
committee in order to determine the opinion of the Conference or of the :
gmmitshtoeand bal announce the result. This result shall be recorded,
3. If, however, a vote is takehn, it sall be taken In accordance with the
relevasnt term of Resolution o62 (V) f the cEcnonomi ad Socical Counil.
The decision shall be by a ma joritcof the votes oast. An abstention shall
not be considered as a vote. A vote shall normally be tasken by how of
hands or by standing. If any representative requeosts a rll calll, a rol
call shall be taken in the English alphabetical order of names of the
Members. After the President or a chairman hasced annountheing beginn
of a vote, no represeitative shall Interrupt the vote except on a point of
order in connection with the actual conduct of the voting.
L BY TE PRE eIOSN
It is suggested that Rules 30-33 inclusive of the Rules of Procedure
(document E/CONF.2/2/Rev.4) should be deleted and that the following wording
should be adopted as Rule 30:
"The method of voting shall be in accordance with the resolution
adopted by the Conference on this subject on 1 December 1947." |
|
GATT Library | rv278kr9569 | Revised annotated Agenda for chapter IV : Corrigendum | United Nations Conference on Trade and Employment, December 15, 1947 | Third Committee: Commercial Policy | 15/12/1947 | official documents | E/CONF.2/C.3/7/Corr.5 and E/CONF.2/C.3/1-/ADD.45-C.3/9/ADD.1 | https://exhibits.stanford.edu/gatt/catalog/rv278kr9569 | rv278kr9569_90190086.xml | GATT_151 | 112 | 846 | United Nations Nations Unies UNRESTRICTED E / CONF.2/C.3/7/
Corr.5
CONFERENCE 15 December 1947
CONFERENCE ENGLISH - FRENCH
ON DU ORIGINAL: ENGLISH-FRENCH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI AL G-
TTEETMR MERCI*117=ZAL POLICY
R2ANN.DATED MMAOTNDA F RAGEHA TER O CP IV
ENDUMCORRIG
aphPasa~p
Ree
"(c) import restrictions on anyag ricultra l or idnustial
product, imported in any form, necessary ....."
TROISIEME COMMISSION: POLITIQUE COMMERCIALE
NOUVEL ORDRE DU JOUR ANNOTE
PREPARE EN VUE DE LA DISCUSSION DU CHAPITRE IV
CORRIGENDUM
Paragraphe 14
Lire:
" (c) restriction a , l'importation de tout produit agricole ou de
tout product des pecheries ou industriel, quelle que soit la forme
sous laquelle ces produits sont importTs... " |
GATT Library | ky552dh4244 | Revised annotated Agenda for chapter IV : Corrigendum to annex proposed by the Portugese Delegation | United Nations Conference on Trade and Employment, December 27, 1947 | Third Committee: Commercial Policy | 27/12/1947 | official documents | E/CONF.2/C.3/6/Corr.4 and E/CONF.2/C.3/1-/ADD.45-C.3/9/ADD.1 | https://exhibits.stanford.edu/gatt/catalog/ky552dh4244 | ky552dh4244_90190073.xml | GATT_151 | 101 | 845 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/6/ Corr.4
ON DU 27 December 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ENGLISH ORIGINAL: ENGLISH - FRENCH
THRD COMMITTEE: COMMERCIAL POLICY
REVISED ANNOTATED AGENDA FOR CHAPTER IV
CORRIGENDUM TO ANNEX PROPOSED BY THE PORTUGESE DELEGATION
The List of Portugese Territories referred to in paragraph 2 b of
Article 16 should read as follows:
Portugal and the Archipelagoes of Madeira and the Azores
Archipelago of Cape Verte
Guinea
St. TomT and Principe and Dependencies
S. Jo##o Batista de Ajud##
Cabinda
Angola
Mozambique
State of India and Dependencies
Macao and Dependencies
Timor and Dependencies |
GATT Library | rr018yt0600 | Revised annotated Agenda for chapter IV Czechoslovakia: proposed amendment | United Nations Conference on Trade and Employment, December 17, 1947 | Third Committee: Commercial Policy | 17/12/1947 | official documents | E/CONF.2/C.3/6/Add.1 and E/CONF.2/C.3/1-/ADD.45-C.3/9/ADD.1 | https://exhibits.stanford.edu/gatt/catalog/rr018yt0600 | rr018yt0600_90190075.xml | GATT_151 | 215 | 1,578 | United Nations Nations Unies UNRESTRICTED
E/CONF.2/C .3/6/
CONFERENCE CONFERENCE Add.1
ON DU 17 December 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
REVISED ANNOTATED AGENDA FOR CHAPTER IV
CZECHOSLOVAKIA: PROPOSED AMENDMENT
Article 16
Text of Newly Suggested Paragraph 4
4. The provisions of paragraph 1 of this Article shall not apply to new
preferential arrangements concluded between two or more countries belonging
to the same economic region and designed to promote production or reconstruction
in these countries.
(a) Not later than five years from the introduction of these
preferences Members, parties to these arrangements, shall decide
if they wish to enter into a Customs Union in which case the
provisions of Article 42 of this Charter shall apply.
(b) If Members, who are parties to such an arrangement do not
contemplate entering into a Customs Union, the preferences shall
be reduced and finally eliminated in accordance with Article 17
at the same rate as preferences permitted under paragraph 2 of
Article 16 will be eliminated.
(c) The introduction of these preferences shall be done by
a reduction of tariffs and other charges on imports and the
margin of preference shall not be greater than the average
margin of preferences permitted for like or directly competitive
products under this Charter. |
GATT Library | qh541nb1708 | Revised annotated Agenda for chapter IV Peru: proposed amendment | United Nations Conference on Trade and Employment, December 17, 1947 | Third Committee: Commercial Policy | 17/12/1947 | official documents | E/CONF.2/C.3/6/Add.2 and E/CONF.2/C.3/1-/ADD.45-C.3/9/ADD.1 | https://exhibits.stanford.edu/gatt/catalog/qh541nb1708 | qh541nb1708_90190076.xml | GATT_151 | 107 | 746 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E/CONF.2/C.3/6/
Add. 2
17 December 1947
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
REVISED ANNOTATED AGENDA FOR CHAPTER IV
PERU: PROPOSED AMENDMENT
Article 18
The following proposal of the delegation of Peru substitutes
Proposal No. 56 of the Annotated Agenda of Committee III, Section A,
(E/CONF.2/C.3/6) also proposed by Peru:
Exemption of import duties on equipment or materials, and
exemption of income taxes granted for a limited period of years to
enterprises created for the establishment of economically sound
industries shall not be deemed in opposition to the provisions of
Article 18. |
GATT Library | dq209vx4926 | Revised annotated Agenda for chapter IV : Prepared by the Secretarit | United Nations Conference on Trade and Employment, December 8, 1947 | Third Committee: Commercial Policy | 08/12/1947 | official documents | E/CONF.2/C.3/10 and E/CONF.2/C.3/10-38 | https://exhibits.stanford.edu/gatt/catalog/dq209vx4926 | dq209vx4926_90190093.xml | GATT_151 | 4,577 | 29,672 | United Nations Nations Unies UNRESTRICTED E/CONF.2/C.3/10
CONFERENCE CONFERENCE 8 December 1947 ORIGINAL: ENGLISH
ON DU
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
THIRD COMMITTEE: COMMERCIAL POLICY
REVISED ANNOTATED AGENDA FOR CHAPTER IV
Prepared by the Secretari?t
SECTION E - GENERAL COMMERCIAL PROVISIONS
This revised Agenda for Chapter IV includes all the items which
appeared in the preliminary Agenda (E/CONF.2/C.3/1) and all proposals
received from delegations up to Monday, 8 December. For the convenience
of delegates this Agenda is issued in six parts (numbered C.3/6 to C.3/11),
one for each of the six sections of the Chapter. All the documents to which
reference is made are addenda to E/CONF.2/l1 and E/CONF.2/?.3/1.
Article 32 - Freedom of Transit
Paragraph 1
1. At Geneva the delegation of Chile maintained, for the time being, the
view that Article 32 should be confined to goods only, in which case the word
"and also vessels and other means of transport" in paragraph 1 should be
deleted, and in consequence reserved its position.
2. The delegation of Argentina proposes (document 11/Add.3) the deletion of
the phrase "and also vessels and other means of transport," which appear in
the first lines of this paragraph.
3. The delegation of Afghanistan proposes (document ?.3/l/Add.11 to insert
after "breaking bulk" the words "disassembling, and reassembling."
Paragraph 2
4. The delegation of Argentina proposes (document 11/Add.3) the deletion
of this paragraph.
5. The delegation of Chile proposes (document C.3/I/Add.6) that the
following words be inserted at the beginning of this paragraph:
"Without prejudice to such arrangements as Members may agree
upon among themselves and in regard to their own trade, there shall
be..."
Paragraph 5
6. The following note was appended to the Geneva Draft:
With regard to transport charges, the principle of paragraph 5
refers to like products being transported on the same route under
like conditions.
/Paragraph 6 E/CONF. 2/C .3/10
Page 2
Paragraph 6
7. The delegation of France has proposed (document 11/Add.24) that all
the words after the word "Charter" in line eleven should be deleted.
The following statement is given in support of this proposal:
As the delegation of France pointed out during the discussions
at Geneva, the French Government is not, in present circumstances
and having regard to the state of French ports, in a position to
amend its legislation to bring it into conformity with the provisions
of paragraph 6. It therefore requests that the exception granted in
respect of certain special regulations be made general.
New Paragraph 8
8. The delegation of Costa Rica proposes (document 11/Add.16) the addition
of the following new paragraph:
"8. Livestock which has to graze for more than days in the
territc y of a State before proceeding to its final destination shall
not be considered as being in transit."
9. The delegation of Afghanistan proposes (document C.3/l/Add.45) the
addition of the following sentence at the end of the new paragraph proposed
by the delegation of Costa Rica:
"This does not apply to livestock of nationals of a Member who during
certain seasons migrate with their principle belongings through the
territory of another Member and return to their home territory
(seasonal nomads)."
Article 33 - Anti-dumping and Countervailing Duties
General
10. The delegations of Cuba and Lebanon maintain their views, recorded in
the Geneva Report, that they would prefer to introduce this Article by an
express statement of condemnation of dumping. To this end the delegation of
Cuba proposes (document C.3/l/Add.52) the following amendments to this
Article:
Article 33 - Anti-dumping and Countervailing [Duties] Measures
[1. No anti-dumping duty shall be levied on any product of any Member
country imported into any other Member country in excess of an amount
equal to the margin of dumping under which such product is being
imported. For the purposes of this Article, the margin of dumping shall
be understood to mean the amount by which the price of the product
exported from one country to another]
/1. It is agreed E/CONF.2/C.3/10
Page 3
1. It is agreed by the Member countries and so it is declared, that
the practice of "dumping", be condemned, in whatever form it may
manifest itself, and that all Members shall do the utmost within their
powers to prevent and penalize such practices, pursuant to a fair
international commercial policy. Consequently, it is also areed that
all Members shall counteract any and all forms of dumping with
appropriate measures and also shall penalize such practices with the
view to the protection of their domestic interests, provided that the
Organization shall be immediately informed of the reasons and the
extent of the action taken.
2. For the purpose of this Charter the term `dumping" shall be
understood to mean any difference in price, other than that originating
from the normal costs of marketing the product in international trade,
that may exist as between comparable simultaneous sales of such product
in the domestic market of the county of exportation and the importing
country, or as between sales to two or more importing countries."
3. The margin of dumping shall be understood to mean:
(a) the difference between the price of a product exported from
one county to another, and [is less than] the comparable price,
in the ordinary course of trade, for the like product when
destined for consumption in the exporting country, or
(b) in the absence of such domestic price, [is less than] oither
the difference between the price at which the product is being
imported and,
(i) the [highest] comparable price for the like product for
export to any third country in the ordinary course of
trade, or
(ii). the cost of production of the product in the country of
origin plus a reasonable addition for selling cost and
profit.
Due allowance shall be made in each case for differences in conditions
and terms of sale, for differences in taxation, and for other differences
affecting price comparability.
[2] 4. [No countervailing duty shall be levied on any product of
any Member country imported into another Member country in excess of an
amount equal to the estimated bounty or subsidy] To the effect of
offsetting the estimated bounty or subsidy under which any product of
any Member country is being i?orted into another Member country, the
Members may impose countervailing duties in the amount appropriate to
offset the subsidy determined to... of any merchandise.
/5. (Text of E/CONF.2/C.3/10
Page 4
5. (Text of paragraph 3 of the Geneva Draft)
6. (Text of paragraph 4 of the Geneva Draft)
7. (Text of paragraph 5 of the Geneva Draft, except the last
sentence, which shall be deleted.)
Paragraph 6 of the Geneva Draft Charter to be deleted.
11. The delegations of Syria and Lebanon propose (document C.3/1/Add.20)
that the following new paragraph should be inserted as the first paragraph
of this Article:
"1. The Members recognize that the practice of dumping in any form
is to be condemned and is inconsistent with the general purposes of
this Charter."
12. The delegation of Argentina proposes (document 11/Add.3) that this
Article and its title be replaced by the following:
"'PREVENTION OF DUMPINC. The Members condemn the practice of dumping
and recognize the need to resort to every means possible for combating
it. They undertake to spare no effort to that end. The Organization
shall undertake studies and inquiries to provide infoination on dumping
and shall communicate the results of such inquiries to Members, so
that the latter may adopt such counter-measures as they think fit."
13. The delegation of China proposes (document 11/Add.9) that the following
be adopted as the first paragraph of this Article:
"No dumping of any product of any Member country into any other
Member country shall be made. Each Member country shall undertake by
effective measures appropriate to its governmental system to prevent
the dumping of any of its products into the territories of any other
Member country. If, in spite of the obligation undertaken under this
provision, dumping still takes place, the Member country into the
territories of which the products of any other Member country are being
dumped shall be free to impose anti-dumping ?? on such products
or to take other appropriate measures to deal with the situation."
14. The delegation of Mexi?c proposes (document C.3/l/Add.43) that
paragraph 1 be replaced by the following:
"1. Members condemn the practice of dumping in all its possible forms
and aspects, and authorize affected countries to adopt the necessary
mesures to combat it, end also to enact appropriate domestic
legislation against this practice. No Member shall encourage, support
or participate in campaigns designed to initiate or develop the
practice of dumping."
/Paragraph 1 E/CONF .2/C .3/10
Page 5
Paragraph 1
15, The delegation of Syria and Lebanon propose (document C.3/1/Add.20)
that the first sentence of this paragraph should be amended as follows:
"[No] An anti-dumping duty [shall] may be [levied] imposed on any
product of any Member country imported into any other Member country,
[in excess of an amount] equal to the total margin of dumping [under
which such] on that product [is being imported]."
16. The following note is appended to the Geneva Draft:
Hidden dumping by associated houses (that is, the sale by the
importers at a price below that corresponding to the price invoiced
by the exporter with which the importer is associated, and also below
the price in the eporting country) constitutes a form of price
dumping.
Paragraph 2
17. The following note is appended to the Geneva Draft:
Multiple currency practices may in certain circumstances constitute
a subsidy to exports which can be met by countervailing duties under
paragraph 2 or may constitute a form of dumping by means of a partial
depreciation of a country's currency which can be met by action under
paragraph 1 of this Article, By "multiple currency practices" is
meant practices by governments or sanctioned by governments.
Paragraph 5
The delegation of Denmark proposes (document C.3/l/Add.38) that the
following sentences be inserted after the first sentence of this paragraph:
18. "If a Member imposes an anti-dumping or countervailing duty, that
Member shall undertake to enter into negotiations with the allegedly
offending Member. If agreement is not reached, the matter may be
referred to the Organization and treated in conformity with the
rules of Article 90.";
19. That the second sentence in the existing draft, that is, from "the
Organization may..." to "... the importing Member country." be deleted.
20. The following note was appended to the Geneva Draft:
The delegations of Balgium-Luxembourg , Czechoslovakia, France and
the Netherlands expressed the fear that abuses might be comitted under
cover of the provisions of paragraph 5 regarding the threat of injury
of which a State might take advantage on the pretext that it intended
to establish some new domestic industry in the more or less distant
future. It is considered, however, that, if such abuses were
comiitted, the general provisions of the Charter would be adequate to
deal with them.
/Paragraph 6 E/CONF.2/C.3/10
Page 6
Paragarph 6
21. At Geneva paragraph 6 was added to the previous drect of this
Article. The delegations of China, India and Pakistan maintain their
opposition, recorded in the Geneva Report, to the addition of this paragraph.
22. The delegation of Mexico proposes (document C .3/1/Add.43) that this
paragraph be deleted.
23. The delegations of Syria and Lebanon propose (document C.3/1/Add.20)
the deletion of this paragraph and the insertion of the folowing:
"If a Member country exporting a like product considers it is being
injured by dumping practiced by another Member, it may refer the matter
to the Organization. The Organization shall conduct an investigation
and make appropriate recommendations to the Member concerned, If the
Organization finds that the latter fails to put its recommendations
into effect, it shall recognize the right of the complaining Member
to refuse to apply agreed tariff advantages to the trade of the
defaulting Member."
24. The following note was appended to the Geneva Draft:
The obligations set forth in paragraph 6 are, as in the case of
all other obligations under Chapter IV, subject to the provisions of
Article 40°.
25. The delegation of the Philippines suggests (document C.3/1/Add.34)
that the following rearrangement of the paragraphs of this a Article would
be proper and convenient:
Paragraphs 5, 3, 4, 6, 1, 2.
Article-34 - Valuation for Customs Purposes
Paragraph 2
26. The following note was appended to the Geneva Draft:
The Preparatory Committee considered the desira?ility of
replacing the words "at the earliest practicable date" by a defnite
date or, alternatively, by a provision for a specified limited period
to be fixed later. The Committee appreciated that it would not be
possible for all Members to give effect to these principles by a
fixed time, but it was nevertheless understood that a majority of the
Members would give effect to them at the time the Charter enters into
force.
/27. The delegation E/CONF.2/C.3/10
Page 7
27. The delegation of Argentina proposes (document 11/Add.3) the deletion
of the words "upon a request by another Member" from the second' sentence.
Paragrah 3
Sub-Paragraph 3 (a)
28. It is proposed by the delegation of Uruguay (document C.3/1/Add.7) that
the following be added to sub-paragraph (a):
"The temporary binding of the actual value of the merchandise may
nevertheless be permitted, provided that it is revised to be brought
into line with the actual value within a period not exceeding
three years."
Sub-paragraph 3 (b)
29. At Geneva, the delegation of Chile reserved its position on
paragraph 3 for the time being. Now, this delegation proposes (document
C.3/1/Add.6) the following addition at the end of this sub-paragraph:
"It is understood that those countries which at present maintain a
system of periodically establishing the 'actual value' of merchandise,
on the basis of an average value ascertained, provided that an
adjustment of such 'actual value' is made whenever a considerable
price fluctuation in the price of a product occurs, will also comply
with the requirements laid down in this sub-paragraph."
30. The delegation of Uruguay proposes (document C.3//1/Add.7) to insert
the following sentence between the first and second sentence of this
sub-paragraph:
"In the case of Government contracts in respect of primary products,
the contract price shall be regarded as the actual value."
General
31. The following notes were appended to paragraph 3 of the Geneva Draft:
(a) It would be in conformity with Article 34 to presume that "actual
value" may be represented by the invoice price, plus any
non-included charges for legitimate costs which are proper elements
of "actual value" and plus any abnormal discount or other reduction
from the ordinary competitive price.
32. (b) It would be in conformity with Article 34, 3 (b), for a Member
to construe the phrase "in the ordinary course of trade", read in
conjunction with "under fully competitive conditions", as excluding
any transaction "wherein the buyer and seller are not indepedent of
each other and price is not the sole consideration.
/33. (c) The E/CCNF.2/C .3/10
Page 8
33. (c) The prescribed stndard of "fully competive conditions" permits
Members to exclude from consideration distributors' prices which
involve special discounts limited to exclusive agents.
34. (d) The wording of (a) and (b) permits a Member to assess duty
uiformly either (1) on the basis of a particular exporter's prices
of the imported merchandise, or (2) on the basis of the general price
level of like merchandise.
Paragraph 5
35. The delegation of Argentina proposes (document 11/Add.3) the deletion
of this paragraph.
36. The delegation of Uruguay proposes (document C .3/l/Add.53) to change
the last part of sub-paragraph 5 (d) to read:
"if such alteration would have the effect of increasing or
decreasing generally the amounts of duty payable".
New Paragraph 7
37. The delegation of Uruguay proposes (document C.3/1/Add.7) that the
following new paragraph be added to this Article:
7. Traders, before despatching merchandise, shall be able to
consult the appropriate customs authorities with regard to the
classification, tariff and value applicable to the merchandise."
Article 35 - Formalities connected with Importation and Exportation
Paragraph 1
38. The delegation of Argentina proposes (document 11/Add.3) that the first
lines be amended as follows:
"The Members recognize that [fees and charges, other than duties,]
dues imposed by governmental authorities...."
The delegation of Arigentina proposes (document 11/Add.3) that the words
"...fees and charges..." in the second sentence be replaced by the word
"dues".
39. The delegation of Turkey proposes (document 11/Add.26) the following
amendment in the first sentence:
"The Members recognize that fees and charges, other than duties, imposted
in Payment for services rendered by governmental authorities [on or]
in connection with importation or exportation should be limited in
amount to the approximate cost of those services..."
Paragraph 4
The delegation of Uruguay proposes (document C.3/1/Add.7) the following
amendments:
/40. that the words E/CONF. 2/C.3/10
Page 9
40. That the words "penalties" be replaced by "sanctions" and
41. That the words "made without fraudulent intent or gross negligence"
be replaced by "not of a serious nature".
Paragraph 5
42. The delegation of Uruguay proposes (document C.3/1/Add.7) that the
following be added to this paragraph:
"The Organization should study and specially recommend to Members the
granting of every facility as regards duties and quantitative control
for the import and export of articles of any kind intended for
commercial and tourist advertising purposes and not for sale. The
same privileges shall be granted to commercial travellers and to
collections of samples accompanying them."
43. The delegation of Argentina proposes (document 11/Add.3) that the words
"fees, charges" be replaced by the word "ducs".
44. The following note was appended to paragraph 5 of the Geneva Draft:
While Article 35 does not cover the use of multiple rates of
exchange as such, paragraphs 1 and 5 condemn the use of exchange
taxes or fees as a device for implementing multiple currency practices;
if, however, a Member is using multiple currency exchange fees for
balance of payments reasons with the approval of the International
Monetary Fund, the provisions of paragraph 2 fully safeguard its
position since that paragraph merely requires that the fees be eliminate
at the earliest practicable date.
New Paragraph
45. The delegation of Uruguay proposes (document C.3/1/Add.7) that the
following new paragraph be inserted after paragraph 5:
"6. In the case of any customs offence, for which only a monetary
penalty is imposed, the matter shall be considered closed if the
offender recognizes the offence and pays the appropriate duties and
surcharges."
46. The delegation of Afghanistan proposes (document C.3/1/Add.11) the
addition of the following paragraph at the end of this Article:
"6. The Organization shall study, make recommendations for and
promote with or without request by a Member, international agreements
on measures designed to improve the conditions of traffic in transit,
including the use of means of transport and the establishment of free
zones at ports of entry and/or rail and road terminals on the territory
of the Member through which the traffic in transit passes. Such
agreements shall have reasonable regard to the conditions of traffic
on the routes and facilities of decking and warehousing most
/convenient for E/CONF.2/C .3/10
Page 10
convenient for international transit."
General
47. The delegation of Brezil states (document C.3/1/Add.26) that its
acceptance of the provision of Article 35 as regards the imposition of
charges on the international transfer of payments is conditional upon tho
recognition of the validity of the regulation in force in Brazil. For that
reason it will have occasion to submit, if necessary, an amendment in this
connection at the time of the matters being discussed.
Article 36 - Marks of Orign
48. The delegation of Argentina proposes (document 11/Add.3) that this
Article be deleted,
Paragraph 7
49. At Geneva the delegation of Chile reserved its position. Now, this
delegation proposes (document C.3/1/Add.6) that the second and third sentences
of this paragraph be deleted and replaced by the following:
"The above-mentioned purpose shall be considered as having been
fulfilled if the name of the producer country using the geographical
or regional name in question appears in a legible manner on the
label of the product."
Article 37 - Publication and Administration of Trade Regulations
Paragraph 3 (c)
50. The delegation of Argentina proposes (document 11/Add.3) that the last
part of the last sentence beginning with the words "in order that..." be
deleted.
51. The delegation of New Zealand proposes (document 11/Add.6) that the last
words of this sub-paragraph, namely, "and those of sub-paragraph (b)" should
be deleted, and presents the following explanatory note:
The above amendment is to bring the provision in the Charter into
line with the corresponding provision included in Article X of the
General Agreement on Tariffs and Trade. The reference in question to
sub-paragraph (b) was made inadvertently, the original intention having
been to refer to sub-paragraph (a) in conformity with the decision of
the sub-comittee which dealt with the matter at the Second Session of
the Preparatory Committee. Attention to the position was called by the
Legal Drafting Committee of the Trade Agreements. Committee when
considering the corresponding provision to be included in the General
Agreement on Tariffs and Trade. Upon consideration by the Trade
Agreements Committee it was decided that since suub-paragraph (a) sets
out a general principle to which all members must subscribe thers is no
purpose in making reference to it in sub-paragraph (c) and the words
/?and those of E/CONF .2/C .3/10
Page 11
"and those of sub-paragraph (b) were accordingly deleted from the
provision included in the General Agreement on Tariffs and Trade.
52. This proposal is supported by the delegation of the United Kingdom
(document U/Add.8).
Article ?8 - Information, Statistics and Trade Terminology
53. The delegation of Norway proposes (document C.3/1/Add.39) that this
Article be rewritten as follows:
"1. The Members shall communicate the statistics of their external
trade as promptly and inasmuch detail as is reasonably practicable
to the Organization, or to such agency as may be [designated for the
purpose] agreed upon by the Organization in consultation with the
appropriate organs of the United Nations.
[(a) statistics of their external trade in goods (imports, exports
and, where applicable, re-exports, transit and trans-shipment
and goods in warehouse or in bond);
(b) statistics of governmental revenue from import and export
duties and other taxes on goods loving in international trade and,
insofar as readily ascertainable, of subsidy payments affecting
such trade.
2. So far as possible, the statistics referred to in paragraph 1 of
this Article shall be related to tariff classification and shall be
in such form as to reveal the operation of any restrictions on
importation or exportation which are based on or regulated in any
manner by quantity or value or amounts of exchange made available.]
[3] 2. Members shall publish regularly and as promptly as possible
the statistics [referred to in paragraph 1 of this Article] of their
external trade.
[4] 3. Members shall give careful consideration to any recommendation
which the Organization and other appropriate organs of the United Nation
may make [to them] with a view to improving the statistical information
furnished [under paragraph 1 of this Article] regarding their external
trade.
[5. The Members shall make available to the Organization, at its
request and insofar as is reasonably practicable, such other statistical
information as the Organization may deem necessary to enable it to
fulfil its functions, provided that such information is not being
furnished to other inter-governmental organizations from which the
Organization can obtain the required information.]
/4. The Organization E/CONF.2/C .3/10
Page 12
4. The Organization shall obtain such other statistical information
as it may require for its operation through the statistical services
of the United Nations and the Specialized Agencies in accordance with
the agreements negotiated with the United Nations under Article 84
of this Charter.
[6 The Organization shall act as a centre for the collection,
exchange and publication of statistical information of the kind
referred to in paragraph 1 of this Article. The Organization, in
collaboration with the Economic and Social Council of the United Nations,
and with any other organization deemed appropriate, may engage in
studies with a view to improving the methods of collecting, analyzing
and publishing economic statistics and may promote the international
comparability of such statistics, including the possible international
adoption of standard tariff and commodity classifications.]
5. The Organization; taking into account the needs of all international
agencies and in order to avoid all unnecessary duplication shall arrange
in consultation with the appropriate organs of the United Nations, for
the collection, exchange and publication of such statistics of external
trade as are appropriate to the needs of international agencies.
[7] 6. The Organization, in co-operation with the [other organization
referred to in paragraph 6 of this Article] organs of the United Nations
may [also] study the question of adopting standards, nomenclatures,
terms and forms to be used in international trade and in the official
documents and statistics of Members relating thereto, and on the basis
of agreements reached with the appropriate organs of the
Unted Nations may recommend the general acceptance by Members of such
standards, nomenclature, terms and forms."
Article 39 - Boycotts
54. At Geneva the delegation of Lebanon reserved its position. Now, the
delegations of Lebanon and Syria propose (document 11/Add.14) the following
amendments -to this Article:
"1. No member shall encourage, support or participate in boycotts
[or other], whether by governmental measures or by popular campaigns,
[which are] designed to discourage, directly or indirectly, the import
into or consumption within its territory of products of any specific
Member country or countries on grounds of origin, or the export or
sale of products for consumption within other Member countries on
grounds of destination, or the transit of products on grounds of origin
or destination.
/2. Nothing in paragraph 1 E/CONF.2/C.3/10
Page 13
2. Nothing in paragraph 1 of this Article or in the other provisions
of this Charter shall prevent a Member from engaging in boycotts
designed to protect its national security or to safeguard its essential
national interests."
55. The delegation of Iraq (document C.3/1/Add.46) proposes that this
Article should be amended as follows:
"1. No Member shall institute, encourage, support or participate in
boycotts or other campaigns or measures which are designed to prohibit
or diecourage, directly or indirectly, the import into, or consumption
within its territory of products of any specific Member country or
countries on grounds of origin, or the export to or sale of products
for consumption within, other Member countries on grounds of
destination, or the transit through its territories of products on
grounds of origin or destination.
2. Notwithstanding other provisions of this Charter, the provisions of
paragraph (1) of this Article shall not apply to practices maintained
by a Member before the entry into force of this Charter, and desired to
protect its national security or to safeguard its escential national
interests. "
The following statement is given in support of this proposal:
"Certain restrictions in force have been accepted in many parts of the
Charter on grounds that special hardship or injury to the interests of
the countries involved would result from their removal. This is
especially so when such restrictions are maintained to protect the
vital interests of the countries concerned."
56. The delegation of Mexico proposes (document C.3/1/Add.43) that the
following sentence be added to this Article:
"Campaigns designed to increase domestic consumption of the articles
produced in any country shall not be considered as indirect action
to discourage consumption of the products of any other Member." |
GATT Library | fn470ts8358 | Revised annotated Agenda for chapter IV section A - tariffs, preferences, and internal taxation and regulation : Corrigendum | United Nations Conference on Trade and Employment, December 15, 1947 | Third Committee: Commercial Policy | 15/12/1947 | official documents | E/CONF.2/C.3/6/Corr.2 and E/CONF.2/C.3/1-/ADD.45-C.3/9/ADD.1 | https://exhibits.stanford.edu/gatt/catalog/fn470ts8358 | fn470ts8358_90190071.xml | GATT_151 | 203 | 1,477 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF. 2/C.3/6 Corr. 2
ON DU 15 December 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
REVISED ANNOTATED AGENDA FOR CHAPTER IV
SECTION A - TARIFFS, PREFERENCES, AND INTERNAL TAXATION AND REGULATION
CORRIGENDUM
Article 17 - Reduction of Tariffs and Elimination of Preferences.
Paragraph 2 bia
Item 42 on page 11 should read: "It is proposed by the delegation of
Venezuels (documents E/CONF.2/C.3/1/Add. 44) that the following paragraph
be added after paragraph 2:"
"Any member applying internal taxes or other internal charges
referred to in Article 18 or fees of charges referred to in Article 35
on certain products for the purpose of protecting the establishment,
development or reconstruction of certain industries or certain branches
of agriculture may, when fulfilling the obligations assumed under
Article 18 or 35, readjust its existing customs duties on such or
similar products. In the case of such products on which concessions
have been granted through agreements, the increase of customs duties
for the purpose of such readjustment shall not exceed the total
reduction of internal taxes or other internal charges referred to in
Article 18 or fees or charges referred to in Article 35." |
GATT Library | np193gc3728 | Revised annotated Agenda for chapter IV section A - tariffs, preferences, and taxation and regulation | United Nations Conference on Trade and Employment, December 8, 1947 | Third Committee: Commercial Policy | 08/12/1947 | official documents | E/CONF.2/C.3/6 and E/CONF.2/C.3/1-/ADD.45-C.3/9/ADD.1 | https://exhibits.stanford.edu/gatt/catalog/np193gc3728 | np193gc3728_90190069.xml | GATT_151 | 6,003 | 39,452 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L 'EMPLOI UNRESTRICTED
E/CONF.2/C.3/6
8 December 1947
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
REVISED ANNOTATED AGENDA FOR CHAPTER IV
SECTION A - TARIFFS, PREFERENCES, AND TAXATION AND REGULATION
This revised Agenda for Chapter IV includes all the items which
appeared in the preliminary Agenda (E/CONF.2/C.3/1) and all proposals
received frcm delegations up to Monday, 8 December. For the convenience
of delegates this Agenda is issued in six parts (numbered C.3,/6 to C.3/11),
one for each of the six Sections of the Chapter. All the documents to
which reference is made are addenda to E/CONF.2/11 and E/CONF.2/C.3 /1.
SECTION A
Article- 16 - General Most-Favoured-Nation Treatment
Paragraph 1
1. The delegation of Argentina proposes (document 11/Add.3) that
paragraph 1 be rewritten as follows:
"With respect to customs duties and charges of any kind imposed
on or in connection with importation or exportation or to duties and
dues imposed on the international transfer of payments for imports
or exports and [with respect to] the method of [levying] imposing such
duties and charges and with respect to all rules and. formalities in
connection with importation and exportation and with respect to all
matters referred to in paragraphs 1 and 2 of Article 18, any advantage,
favour, privilege or immunity granted by any Member to any product
originating in or destined for any other Member country shall be
accorded [immediately and unconditionally] to the like product
originating in or destined for all other Member countries respectively,
on a reciprocal and mutually advantageous basis.
2. The delegation of Chile proposes (document C.3/1/Add.6) the addition
of the following words at the end of the paragraph:
"with the exception of the arrangements contemplated in Article 15."
3. The delegation of Cuba proposes (document C.3/1/Add.52) that the
following sentence be added at the end of this paragraph:
"The operation of this paragraph will preclude classifications of
tariffs, internal taxes or other charges based on types named after
/distinctive E/CONF.2/C .3/6
Page 2
distinctive regional or geographical names of products of a Member
country."
In the same document the following statement appears in support of this
proposal:
The proposed addition is based upon the recomendation adopted under the
heading "Defense Against Discriminatory Measures in the Commerce of
Agricultural Products" by the Third Inter-American Conference on
Agriculture for the purpose of eradicating all such measures of a
tariff or other nature by reason of the special quality of the products
or of the country of origin thereof, as is the case, for example, with
regard to the "Havana Cigar".
Paragraphs 2 and 3
4. The delegation of the PhiIlippines proposes (document C.3/1/Add.34)
the deletion of paragraphs 2 and 3 and the substitution of the following:
"2. The provisions of paragraph 1 of this Article shall not apply to
any preferences existing on 10 April 1947 and the margin of preference
on any product in respect of which a preference is permitted shall not
exceed the maximum margin provided for under the General Agreement on
Tariffs and Trade or any subsequent operative agreement resulting
from negotiations under Article 17, or if not provided for under such
agreements, the margin existing either on 10 April 1947 or on such
earlier date as may have been established for a Member as a basis for
negotiating the General Agreement on Tariffs and Trade, at the option
of such Member."
The delegation of the Philippines states that it subscribes to the idea
that whenever possible the provisions of the Charter should be simple and
brief, if such simplicity and brevity do not sacrifice the clearness and
inclusiveness of the subject matter; the proposed amendment is intended to
achieve that objective.
Paragraph 2 (a) and (b)
5. The delegation of Denmark proposes (document C.3/1/Add.38) the following
amendments in the text of Annex A:
1. in the second paragraph delete the words "or to replace the
preferential quantitative arrangements described in the following
paragraph".
2. in the .third paragraph delete the second sentence wich begins
with "It is the intention..."
6. The delegation of Cuba proposes (document C.3/1/Add.152) the deletion
of the second paragraph in the notes to Annex A and the note to Aniex D.
7. The delegation E/CONF.2/C.3/6
Page 3 .;
7. The delegation of Portugal proposes (document C.3/1/Add.35) the addition
of the following Annex:
"List of Portugese territories referred to in paragraph 2 (b) of
Article 16:
Portugal and Archipelagoes of Madairs, emi Azores
The Cape Verde Archipelago
Portuguese Guinea
San Tome and Principe and Dependencies
St. Jean Baptiste d'Ajuda
Cabinda
Angola
Mozambique
Establishments in India and Dependencies
Macao and Dependencies
Timor and Dependencies
Paragraph 2 (c) and (d)
8. The delegation of Peru proposes (document 11/Add.22) the deletion of
sub-paragraph (c).
9. The delegation of Dominican Republic proposes (document C.3/1/Add .32).
the deletion of sub-paragraph (c) or alternatively the addition of the
following:
"Such preferences shall not, however, operate to the detriment in any
way of products of the Dominican Republic in the United States of America
Such products shall immediately and unconditionally be accorded any
advantage, favour, privilege or immunity granted to like products of
Cuban origin, with reciprocal treatment in the Dominican Republic of
products of United States origin."
10. The delegation of Haiti proposes (document C.3/1/Add.29) that
sub-paragraph (c) be amended as follows:
"(c) preferences in force exclusively between the United States of
America and the Republic of Cuba and which, on the date of signature
of this Charter, shall enter into force between the United States of
America and other countries in the Caribbean area, or which may be
accorded to one another by the countries of the Caribbean area."
11. The delegation of Costa Rica proposes (document 11/Add.16) the addition.
of the following annex:
"List of territories to which the preferential arrangements referrs
to in paragraph 2 (d) of Article 16 apply:
/Costa Rica E/CONF.2/C .3/6
Page 4
Costa Rica
El Salvador
Guatemala
Honduras
Nicaragua":
12. The deletion of El Salavador proposes that the following paragraph be
inserted:
"The provisions of the first paragraph of this Article shall not
apply to such bilateral or multilateral preference as are now in force
between the countries of Central America, including Panama, or may be
granted in the future."
"The delegation's statement in support of this proposal appears in
document 11/Add.10.
13. The delegation of Guatamala proposes (document C.3/1/Add.31) the
addition of the following sub-paragraphs:
"and it is recognized in general that the Spanish American countries
may, in consideration of their special position resulting from their
need for economic development and their common language, origin and
culture, freely negotiate a preferential tariff system between all or
some of their number, including the possible establishment of a customs
union;
"preferences in force or in the process of negotiation between Colombia,
Ecuador, Panama and Venezuela;
"preferences in force or which may be negotiated between the countries
of Central America."
The statement given in support of this proposal will be found in the
document mentioned above.
14. The delegation of Colombia proposes (document C .3/1/Add .10) the addition
of the following annex:
List of .territories covered by preferential arrangements between
Colombia and neighbouring countries referred to in paragraph 2 (d)
of Article 16,
Preferences in force exclusively between, on the one hand, Colombia,
and, on the other. hand,
1. Ecuador and
2. Venezuela, respectively."
15. The delegation of Ecuador proposes (document C.3/1/Ad.1) the addition
of the following sub-paragraphs:
"preferences in force or in the process of negotiation between Colombia,
Ecuador, Panama and Venezuela;
/"and it is E/CONF.2/C.3/6
Page 5
"and it is recognized in general that the Latin American countries may,
in consideration of their special position resulting from their need
for economic development and their common language, origin and .culture,
freely negotiate a preferential tariff system between all or some of
their number, including the possible establishment of a customer union."
16. The deletion of Bolivia proposes (document C.3/1/Add.33) that addition
of the following subpragraphs:
"Preferences in force or in the process of negotiation between Bolivia,
on the one hand, and Argentina, Brazil, Chile, Paraguay, Peru and
the countrles of Latin America generally on the other."
"A special.exception being made in the case of neighbouring countries
under-developed industrially and economically."
17. The deletions of Le banon and Syria propose (document 11/Add.14) that
the following paragraph should be inserted:
"The provisions of paragraph 1 of this Article shall not prevent
the conclusion of regional preferential tariff agreements designed
to develop production in, and promote trade between, Members belonging
to the same economic region."
18. The delegation of Turkey has proposed (document 11/Add. 25) that the
following paragraph be inserted:
"The provisions of paragraph 1 of this Articlo shall not apply
to such reciprocal preferences between countries formerly part of the
Ottoman Empire and detached from it on 24 July 1923 as are set forth
in treaties concluded by Turkey."
19.The delegation of Egypt proposes (document C.3/1/Add.50) that the
following paragraph be added:
"It is also within the meaning of exceptions under paragraph 2
preferences contemplated under agreement between of the Arab
League."
20. The following addition is proposed (document C.3/1/Add.28) by the
deletions of the countries underlined:
"The provision of paragraph 1 of this Article shall not apply to
such preferences as may be put into force between the following
countries of the Near and Middle East: Afghanistan, Egypt, Greece
Iren, Iraq, Lebanon, Syria, Transjordan, Turkey".
The following statement is given in support of this proposal:
"Noting that they form part of the same economic region and that it
would be of great advantage to them to agree on preferential tariffs.
in order to develop their economics and so to attain the purposes of
/the Charter E/CONF.2/C.3/6
Page 6
the Charter, the representatives of the countries of the Near and Middle
East mentioned above have decided to submit for the approval of the
Conference, an amendment to be inserted as a new paragaph in Article 16.
The delegation of Pakistan reserves the right to associate itself with
the amendment in due course."
21. The delegation of Burma proposes (document C.3/1/Add.47) the addition
of the following paragraph to this Article:
"The provisions of paragraph 1 of this Article shall not apply to
such preferences as may be put into force or such regional arrangements
as may be made among the countries of South East Asia."
The following statement is made in support of this proposal:
"The tendency of the countries represented in this Conference being to
favour groupings on a regional basis and the manifestation of such
tendencies being such that the whole world except South East Asia has
been covered by such regional groupings, it is felt that countries of
South East Asia should not lose by default and should have the right to
form such groups if they desire to do so."
22. The delegation of Italy proposes (document 11/Add.18) the addition of
the following paragraph:
"The dispositions of paragraph 1 of this Article do not modify the
special regime existing between the Republic of Italy and the Republic
of San Marino and the State of the Vatican City, and do not raise
obstacles to the special regime which shall be established between
Italy and the Free Territory of Trieste."
23. The delegation of Argentina proposes (document 11/Add.3) the insertion
of the following paragraph:
"The above provisions shall not apply to any advantage, favour,
privilege or immunity granted by a Member to any product originating
in or destined for another Member country, provided that the Members
concerned form a group of complementary economies co-operating on a
compensatory basis and on a basis of equality." General
24. The following note was appended to the Geneva Draft:
"The following kinds of customs action, taken in accordance with
established uniform procedures, would not be contrary to a general
binding of margins of preference:
(i) the re-application to an imported product of a tariff
classification or rate of duty, properly, applicable to such
product, in cases in which the application of such
/classification E/CONF.2/C.3/6
Page 7
classification or rate to such product was temporarily
suspended or inoperative on 10 April 1947; and
(ii) the application to a particular commodity of a tariff item
other than that which was actually applied to importations of
that commodity on 10 April 1947, in cases in which the
tariff law clearly contemplates that such commodity may be
classified under more than one tariff item."
Article 17 - Reduction of Tariffs and Elimination of Preferences
25. The delegation of Argentina proposes (document .11/Add.3) that the first
lines of paragraph 1 be rewritten as follows:
"Each Member shall [upon the request of the Organization] enter
into and carry out with [such other Member or Memsbers as the Organization
may specify the other Members negotiations directed to the, [subtantial]
progressive reduction of tariff [and other charges on] hindering
imports and exports----".
26. The delegation of Uruguay proposes (document C.3/1/Add.13/Rev.1) the
following amendments:
The first sentence to read:
"Each Member [shall] may, on its own initiative or upon the request
of the Organization, enter into and carry out successfully, with
such Member or Members as it may determine or as the Organization
may specify, negotiations directed ............."
The second sentence to read:
"These negotiations shall proceed in accordance with the [following
rules] provisions of Chapter VIII of this Charter",
Sub-paragraphs (a), (b), (c) and (d) being deleted.
27.The delegation of Mexico proposes (document C.3/1/Add.43) that the
first part of this paragraph be amended as follows:
"Each Member shall, upon the request of the Organization, enter
into and carry out with such other [Member or] Members as the
Organization may specify, negotiations directed to the conclusion
of agreemenls on a mutually advantageous basis in respect [substantial
reduction] of tariffs and other charges on imports and exported and to
the elimination of the preferences referred to in paragraph 2 of
Article 16 [on a reciprocal and mutually advantageous basis] in order to
secure the maximum expansion of international trade on a permanent
basis, consistent with the sound economic development of the undeveloped
countries, and to eliminate unwarranted restrictions. These
negotiations shall proceed in accordance with the following rules:"
/28. The delegation E/CONF.2/C.3/6
Page 8
28. The delegation of Haiti proposed (document C.3/1/Add.29) that the first
part of this paragraph be amended as follows:
"[Each Member] The Organization shall, upon the request of [the
Organizatlon] a Member enter into and carry out with such other Member
or Members as the [orgnization] requesting Member may specify,
negotiations directed ot the substantial reduction of tariffs and other
charges on imports and exports and to the elimination of the preferences
referred to in paragraph 2 of Article 16 on a reciprocal and mutually
advantageous basis, The Organization shall authorize Members whose
economic development has not reached a satisfacoty level of stability
consistent with a minimum standard of living for their inhabitants as
a whole and whose customs system is fiscal in character, to maintain
their present tariffs in force. Such Members should, however, as their
economies develop, establish sources of revenue other than customs
revenue, so as to eliminate from their tariffs provisions inconsistent
with the principles of this Charter. [These] Negotiations, for the
substantial reduction of tariffs and other charges shall proceed in
accordance with the following rules:"
29. The delegation of the Philippines proposes (document C.3/1/Add.34)
the insertion of the word "gradual" before the word "elimination" in the
first sentence.
Paragraph 1 (a)
30. The delegation of Cuba proposes (document C.3/1/Add.3) the addition of
the following sub-paragraph:
"(v) When any agreement reached affects preferences provided for in
any prior commitment, in order to implement such agreement, the
exchange in the preference would have either to be agreed between
the parties to the prior commitment, or if they could not agree,
the party wishing to make the change, in order to proceed, would
have to terminate the prior commitment in accordance. with its
terms."
or, alternatively, the delegation of Cuba proposes the following wording:
"(v) Prior international commitments shall not be permitted to stand
in the way of negotiations with respect to tariff preferences,
it being understood that action resulting from such negotiations
shall not require the modification or termination of existing
international obligations except by agreement between the
contracting parties, or failing that by termination of such
obligations in accordance with their terms."
/Paragraph 1 (a . bis) E/CONF.2/C.3/6
Page 9
Paragraph 1 (a,, pis)
31. The delegation of Mexico proposes (document C.3/1/Add.43) the insertion
of the following sub-paragraph after sub-paragraph (a):
"(a.bis) (i) As a preliminary measure to such negotiations, countries
shall equalize their tariffs, so that negotiations may be
entered into under tariff conditions of genuine similarity.
(ii) The industrialized countries shall accord appropriate
advantages to countries at an early stage of industrial
development, in such a way as to afford effective
compensation for the existing economic disequilibrium in
this respect.
(iii) Creditor countries shall be required, to grant to debtor
countries advantages proportional to the degree of
indebtedness of the latter, whether current or long-term.
(iv) Countries having specific tariffs, required to negotiate
with countries whose tariffs are wholly or partly ad
valorem, may use the tariffs obtained by reverting to the
ad valorem equivalent in t?? of 1939 prices as the
basic level for negotiations."
Paragraph1 (b)
32. The delegation of Colombia proposes (documelt C.3/1/Add.4) that the
following be added to sub-paragraph (b):
"Any reduction which has automatically occurred in the specific duties
of any tariff owing to depreciation of the currency in which such
duties had been originally fixed, shall be also recognized as a
concession equivalent in value to the substantial reduction of a high
tariff or the elimination of tariff preferences."
Paragraph 1 (b . bis)
33. The delegation of Peru proposes (document 11/Add.22) that the following
sub-paragraphs be inserted after sub-paragraph (b):
"(b . bis) (i) the readjustment of custom duties by countries using
specific rates on their tariffs, in order to compensate
for a substantial depreciation of their currencies will
not be considered as an increase of their tariffs;
(ii) due consideration shall be given to Article 13 which
recognizes to devastated and under-developed countries the
right to establish or maintain protective tariffs under
appropriate circumstances."
34. The delegation of Ceylon proposes (documnt 11/Add.33) the insertion of
the following new sub-paragraph after sub-paragraph (b):
/(b . bis) Account E/CONF.2,/C .3/6
Page 10
(b.bis) Account shall be taken in the negotiations of the revenue
aspect of existing tariffs, in the case of Members who derive
a substantial percentage of their revenue from customs duties."
35. The delegation of Colombia proposes (document C.3/1/Add.4) the insertion
of the following new sub-paragraph after sub-paragraph (b):
(b.bis) In the case of countries in an early stage of industrial
development, account shall be taken of the necessity of those
countries to grant to their industries a reasonable degree of
protection by means of customs duties with a view to promoting
and diversifying their production."
Paragraph. 1 (c.bis)
36. The delegation of Mexico proposes (document C.3/1/Add.43) the insertion
of a new sub-paragraph after sub-paragraph (c):
"(c.bis) Agreements shall be revised at the request of any Member
provided that world economic conditions or the economic
position of the Members concerned justify such revision."
Paragraph 1 (d)
37. In the last two lines of sub-paragraph (d) the words "General Agreement
on Tariff Trade" should be replaced by "General Agreement on Tariffs and
Trade".
Paragraph 2
38. The delegation of Uruguay proposes (document C.3/1/Add.13/Rev.1) to
delete this paragraph.
39. The deletion of Peru proposes (document 11/Add.22) the following
emendments:
"If any Member considers that any other Member bas failed to
fulfill its obligations under paragraph 1 of this Artice, such Member
may refer the matter to the Organization, which, after investigation by
the Tariff Committee created under Article 81, shall make appropriate
recommendations to the Members concerned. If the [organization] Tariff
Committee finds that [a] the Member has failed without sufficient
Justification, having regard to its economic position and the
provisions of the Charter as a whole, to carry out negotiations within
a reasonable period of time, in accordance with the requirements of
paragraph 1 of this Article, the [Organization may determine that any
Member or Members shall, notwithstanding the provisions of Article 16,
be entitled to withhold from the trade of the other Member any of the
tariff benefit's which may have been negotiated pursuant to paragraph 1
of this Article, and embodied in Part I of the General Agreement on
/Tariffs and Trade E/C0NF.2/C .3/6
Page 11
Tariffs and Trade. If such benefit are in fact withheld, so as to
result in the application to the trde of the other Member of tariffs
higher than would otherwise have been applicable, such other Member
shall then be free, within sixty days after such action is taken, to
withdraw from the Orgnization upon the expiration of sixty days from
the date on which written notice of such withdrawal is received by the
organization] Tariff Committee shall rule that such Member has failed
to carry out its obligations under the Charter; and the Tariff Committee
shall present to the Executive Board of the Oranization its
recommendations on the extension of the benefits which shall be withheld
from that Member by the Organization. The importance of such withheld
benefits shall be in proportion to the damage inflicted upon the other
Member, or Members. The Executive Board shall rule on the matter and
the Member against which a decision will have been taken may apply to
the provision of Chapter VIII."
40. The delegation of Chile proposes (document C.3/1/Add.6) the insertion
of the following after the words "economic position" in the ninth line:
"to the state of its balance of payments, monetary reserves and fiscal
revenues, and to its need to afford proper protection to industries still
in the initial stages of development."
41. The delegation of El Salvador proposes (document C.3/1/Add.37) the
insertion of the following new paragraph after paragraph 2:
"A combination of the following circumstances shall be regarded as
sufficient justification to refrain from carrying out negotiations
directed to the reduction or elimination of tariffs:
(a) that the purpose of the tgariffs is exclusively fiscal; and
(b) that more than 25 per cent of the fiscal revenue is obtained
from such tariffs taken as a whole."
The following statement is given in support of this proposal:
"This amendment is based on the need to prevent disturbances in the
fiscal structure of those countries which are obliged by their special
economic conditions to base their system of taxation primarily on
tariffs, and is also dictated by the fact that, in the opinion of the
deletion of El Salvador, the phrase "having regard to its economic
position and the provisions of the Charter as a whole" .is too vague, in
view of the vital importance presented by this problem in the case of
those countries which are under-developed economically."
42 It is proposed by the delegation of Venezuela (documentt C.3/1/Add.44)
that the following paragraph be added after paragraph 2:
/"Ang Member E/CONF .2/C.3/6
Page 12
"Any Member using the measures referred to in Articles18 and 35
in order to protect the establishment, development or reconstruction
of certain industries or certain branches of agriculture may, when
fulfilling the obligations assumed under those Articles, readjust its
tariffs on the products of the industry or branch of agriculture
referred to above, although such products have already been the subject
of negotiations. The increase of rates for the purpose of readjustment
may in no case exceed the total duties eliminated in respect of
products on which concessions have been granted through agreements."
Paragraph 3
43. The delegations of Peru (C.3/1/Add.22) and Uruguay (C.3/Add.13/Rev.1)
propose to delete this paragraph.
New paragraph
44. The delegation of United States proposes (C.3/1/Add.21) that the
following paragraph should be added to this Article:
"4. The negotiations leading to the conclusion of the General Agreement
on Tariffs and Trade contained in the Final Act signed at Geneva on
30 October 1947 shall be deemed to be negotiations pursuant to the
relevant provisions of this Charter."
The delegation of the United States submits the following comment :
"In a number of articles in the Charter, reference is made to:
negotiations under Article 17 or concessions negotiated pursuant to
Chapter IV. It is clearly intended that the negotiations leading up
to the General Agreement should be regarded as negotiations under or
pursuent to the pertinent provisions of the Charter."
45. The delegation of Norway proposes (document C .3/1/Add.39) the addition
of the following paragraph at the end of this Article:
4. The provisions of this Article shall not prevent Members from
concluding new, or maintaining existing, bilateral tariff agreements
which are not incorporated in the General Agreement on Tariffs and
Trade, provided that such agreements are consistent with the relevant
principles of this Article and that the concessions made by a Member
under such agreements are generalized to all Members in accordance
w ith Article 16."
Genral
46. The following note relating to paragraph 1 was appended to the Geneva Draft:
The undertaking to negotiate regarding preferences necessarily
implies that prior international commitments to grant particular
preferences will not be permitted to frustrate the undertaking to
/negotiate E/CONF.2/C.3/6
Page 13
negotiate. For this reason the provisions of sub-paragraph I (a)
of the New York draft have been omitted from the Charter as being
implicit.
Obviously any agreement reached affecting preferences provided
for in any prior commitment would require, in order to be implemented,
such change in the latter as might be necessary to give effect to the
agreement. This change would either have to be agreed between the
parties to the prior commitment or, if they could not agree, the party
wishing to make the change, in order to proceed, would have to
terminate the prior commitment in accordance with its terms.
47. The following note relating to Article 17 was appended to the Geneva
Draft:
The provisions of this Article do not prevent Members from
concluding now, or maintaining existing, bilateral tariff agreements
which are not incorporated in the General Agreement on Tariffs and
Trade, provided that such agreements are consistent with the relevant
principles of Article 17 and that the concessions made by a Member
under such agreements are generalized to all members in accordance with
Article 16.
Article 18 - National Treatment on Internal Taxation and Regulation
Paragraph 1
48. The delegation of the United Kingdom proposes (document 11/Add.8) that
the first sentence should be amended as follows:
"The products of any Member country imported into any other
Member country shall [exempt from] not be subjected, directly or
indirectly, to any internal taxes [and] or other internal charges of
any kind in excess of those applied [directly or indirectly] to like
products of national origin."
49. The delegation of Colombia proposes (document C.3/1/Add.23) the
following amendment in the first sentence:
after the words "internal charges of any kind" in the fourth
lips insert "other than these existing at present";
50. The delegations of Syria and Lebanon propose (document C.3/1/Add.12)
that the first sentence of this paragraph be amended as follows:
"The products of. any Member country imported into any other
Member country and included in the lists of concessions attached to
the general Agreement on Tariffs and Trade shall be exempt from new
internal taxes and other internal charges of any kind in excess of
thpse which may be applied directly or indirectly to like products
/of national E/CONF. 2/C .3/6
Page 14
of national origin. As regards other imported products, the procedure
followed in connection with internal charges
shall be identical with that applying to customs tariffs."
51. The delegation of China proposes the deletion of the second and third
sentences for reasons set forth in document 11/Add.9.
52. The delegation of Chile maintains for the time being its reservation
recorded in the Geneva Report on the second and third sentences.
53. The delegation of Sweden proposes (document C.3/1/Add.40) the deletion
of the words "of national origin" from the second sentence. The following
statement is given in support of this proposal:
"The meaning of the provision seems to be that there is a
domestic production of like articles, irrespective of the degree in
which foreign raw materials enter into this production."
54. The delegations of Colombia (C.3/1/Add.23), Ireland (C.3/1/Add.19)
and Uruguay (C.3/1/Add.13/Rev.1) propose that the last phrase of this
paragraph beginning with the word "existing" should be a separate sentence
reading as follows:
"Existing internal taxes of the kind referred to in this paragraph
shall be subject..."
(Note: The delegation of Colombia would use the word "Article" instead
of "paragraph" in the line above.)
55. The delegation of Costa Rica proposes (document 11/Add.16) the addition
of the following at the end of this paragraph:
"In all these cases it is to be understood that the equality of
treatment clause shall apply when the tax levied on the merchandise
is maintained or established on an ad valorem basis, provided that as
regards the scale of taxation no distinction is made between national
and foreign products on grounds of origin alone."
56. The delegation of Peru proposes (document 11/Add.22) that the following
sub-paragraph be added to paragraph 1:
"(b) As an exception to the provisions of paragraph (1) of Article 18,
and with a view of carrying out proposals of the Charter exposed in
Article 8, any enterprise may be exempt from internal taxes, for a
period of... years, when created for the establishment of
economically sound industries, in undeveloped countries."
Paragraph 2.
57. The delegation of Cuba proposes (document C.3/1/Add.52) the deletion
of the second sentence of this paragraph.
/58. The delegation E/CONF .2/C .3/6
Page 15
58. The delegation of Mexico proposes (document C.3/1/Add.43) the addition
of the following sentence to paragraph 2:
"The Orgnization shall, however, upon the request of any Member,
investigate whether such differential transportation charges constitute
discriminatory treatment on grounds of the origin of the product."
59. The delegation of Chile maintains for the time being the reservation
recorded in the Geneva Report.
60. The delegation of Mexico proposes (document C.3/1/Add.43) the deletion
of this paragraph.
Paragraph 3 (a)
61. The delegation of Ceylon proposes (document 11/Add.33) insertion of
"or maintained" after the word "made".
62. The delegation of Ireland proposes (document C.3/1/Add.19) the deletion
of the words "amount or".
Paragraph 3 (b)
63. The delegation of Ceylon proposes (document 11/Add.33) the deletion of
the words "of ich there is no substantial domestic production".
Paragraph 4
64. The delegation of Mexico proposes (document C.3/1/Add.43) the deletion
of this paragraph.
65. The delegation of Argentina proposes (document 11/Add.3) that this
paragraph be amended as follows:
"The provisions of paragraphs 1, 2 and 3 of this Article shall not
apply to:
(a) Any internal quantitative regulation relating to cinematograph
films and meeting the requirements of Article 19 and to any
products deemed by the individual Member to be of national interest
(b) [Any other measures of] internal legislation and provisions
[quantitative controI] in force in any Member country on
[1 July 1939 or 10 April 1947 at the option of that Member] on
21 November 1947; provided that ...."
Paragraph 4 (b)
66. The delegation of Ceylon proposes (document 11/Add.33) that this
sub-paragraph be, deleted.
67. The deletion of Sweden proposes (document C.3/1/Add.40) that the
word "system" should be substituted for "measures" and "measure" in
/sub-paragraph (b) E/C0NF.2/C.3/6
Page 16
sub-paragraph (b). The following statement is given in support of this
proposal:
"It is understood that this prescription has in view the system in
force on the respective dates and not the detailed provisions concerning
its application."
68. At Geneva the delegation of New Zealand reserved its position on
sub-paragraph (b) pending further consideration
Paragraph 4 - new sub-paragraph
69. The delegation of Brazil proposes (document C.3/1/Add.27) the addition
of the following new sub-paragraph:
"(c) any internal quantitative regulation concerning the mixture or
utilization, in specified amounts or proportions, of domestic and
imported products, in the case of basic foodstuffs or fuels of vital .
importance to the economy of the country."
Paragraph 4 bis
70. The delegation of Norway proposes (document C.3/1/Add.39) that the
following new paragraph be inserted after paragraph 4:
"The provisions of paragraph 2 of this Article shall: not apply to
laws, relations and requirements which
(a) have the purpose of standardizing products in order to improve
the quality or to reduce costs of production, or
(b) have the purpose of facilitating an improved organization of
internal industry,
provided they have no harmful effect on the expansion of international
trade."
71. The delegations of Ceylon (11/Add.33) and Mexico (C.3/1/Add.43) propose.
that this paragraph be deleted.
72. The delegetion of China maintains the observation made provisionally
at Geneva proposing the deletion of the words "or use in the production of
goods for sale".
73. The delegation of Argentina proposes (document 11l/Add.3) that the
first lines of paragraph 5 be rewritten as follows:
The provisions of this Article shall not apply to the [procurement]
purchases of product by governmental agencies [of products.purchased
for governmental purposes and not for resale or use in the production
of goods for sale], nor shall they prevent the payment..."
/New paragraph E/CONF.2/C .3/6
Page 17
74. The delegation of United States proposes (document C.3/1/Add.21) that
the following paragraph be added to this Article:
"6. Taxes or regulations imposed on imports solely to compensate for
equivalent charges or regulations imposed internally in respect of a
domestic product shall be regarded as internal taxes or regulations
subject to all the requirements of this Article."
73. The delegation of Cuba proposes (document C.3/1/Add.52) that the
following paragraph be added at the end of Article 18:
"6. The provisions of this Article shall not preclude the exemption
of domestic products from Internal taxes as a means of indirect
subsidization in the cases covered under Article 25."
Article 18A
76. The delegation of Norway proposes (document C.3/1/Add.39) the insertion
of the following Article after Article 18:
"The products of any Member country exported to any other Member
country shall not be subject to any measure imposed by either the
exporting or the importing country requiring such exports to be
financed, shipped or insured by enterprises of any prescribed
nationality."
Article 19 - Special Provisions Relating to Cinematograph Films
General
77. The delegation of Czechoslovakia has submitted the following observation
document 11/Add.5):
"The delegation of Czechoslovakia is of the opinion that films
being works of art are not just simple commercial commodities or
industrial products. They are individualized creations of varying
artistic talents. They are never sold in the form of a piece of
merchandise whose ownership passes from one owner to the other but as
more or less limited rights to exhibit them publicly in a given
territory for a given period of time and hence fall rather under the
category of copyrights. In this respect it is for instance obvious
that one cannot request from one country, because it possesses twenty
square foot or. an original picture of Velasquez, that it should be
obliged also to buy twenty square feet of any other oil painting of
whatever nationality. The quality of films and tendencies of films
may greatly change from one period to another and hence it should be
stated that films should be explicitly excluded from the competence
of the ITO, especially as the question of films is dealt with by the
film division of the secretariat of the United Nations or UNESCO."
/Sub-paragraph (b) E/CONF.2/C .3/6
Page 18
Sub-paragraph (b)
78. The delegation of the United Kingdom proposes (document 11/Add.8) that
the word "no" in the third line be deleted and that the last two lines be
altered to read "shall not be allocated formally or in effect among sources
of supply".
Sub-paragraph (c)
79. The delegation of the United Kingdom proposes (document 11/Add.8) the
following changes:
In line two replace "Members" by "any Member".
In line four replace "conditions" by "requirements".
In line six replace "national" by "specified".
80. The delegation of Argentina proposes the deletion of the proviso
(document 11/Add.3). |
GATT Library | by858fx9104 | Revised annotated Agenda for chapter IV section B - quantitative restrictions and exchange controls | United Nations Conference on Trade and Employment, December 8, 1947 | Third Committee: Commercial Policy | 08/12/1947 | official documents | E/CONF.2/C.3/7 and E/CONF.2/C.3/1-/ADD.45-C.3/9/ADD.1 | https://exhibits.stanford.edu/gatt/catalog/by858fx9104 | by858fx9104_90190082.xml | GATT_151 | 6,064 | 40,106 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/7
ON DU 8 December 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
REVISED ANNOTATED AGENDA FOR CHAPTER IV
SECTION B - QUANTITATIVE RESTRICTIONS AND EXCHANGE CONTROLS
This revised Agenda for Chapter IV includes all the items which
appeared in the preliminary Agenda (E/CONF.2/C.3/1) and all proposals
received from delegations up to Monday, 8 December. For the convenience
of delegates this Agenda is issued in six parts (numbered C.3/6 to C.3/11),
one for each of the six Sections of the Chapter. All the documents to
which reference is made are addenda to E/CONF.2/11 and E/CONF.2/C.3/1.
Article 20 - General Elimination of Quantitative Restrictions and
Exchange Controls
Paragraph 2 - General
1. The delegation of Chile proposes (document C.3/1/Add.6) that the
following new sub-paragraph should appear before sub-paragraph (a):
"(a) import restrictions on industrial products applied by Member
countries in an early stage of economic development for the sole
purpose of protecting the growth of industries which are necessary
for their sound and normal development and raising the living and
consumption standards of its population."
2. The delegation of Argentina proposes (document 11/Add.3) the insertion
of the following paragraph after paragraph 2:
"Countries which are at an early stage of industrial development
and those which have not reached an advanced stage of industrialization
as a whole shall, in conformity with the purposes and objectives set
forth in Chapter 1 of this Charter, not be required to apply the
provisions of paragraph 1 of this Article."
3. The delegations of China and Lebanon maintain their reservation,
recorded in the Geneva Report, on paragraph 2 proposing to add a sub-
paragraph (d) providing a procedure for releasing a Member, without prior
approval of the Organization, from the obligation to refrain from import
restrictions when the industry in question is of vital importance.
4. The delegation of Cuba proposes (document C.3/1/Add.18) the insertion
of the following new sub-paragraph:
/"(d) Import E/CONF.2/C.3/7
Page 2
"(d) Import restriction on any product imported at such a low price
comparing with that of a like domestic product, including products
which may be directly substituted therefor, and in such increased
quantities as to cause or threaten serious injury to the domestic
producer and, consequently, to labour, in a Member country."
5. The delegation of Cuba proposes (document C.3/1/Add.52) that the
following sub-paragraph be inserted in paragraph 2 after paragraph "d"
proposed above:
"(e) Restrictions to import on any product, on the proportion
economically necessary, a Member country that is unfavorably
affected in the prodouction nad export of a basic product to his
economy through the rsetriction imposed by another Member country
under ayn provision of this Chartre, as long as the restriction is
made toward promoting, developign or maintaining sources of
employment substituting or supplementing those that are being
unfavorably effected."
Paragraph 2 (a)
6. The delegation of Australia proposes the deletion of the word
"temporarily". The following coemment of the delegation of Australia
appear in document 11/ Add.11:
"In the examination of this article which took place in Australia
after the Geneva Cofenrence the question was raised in relation to
paragraph p (a) as to whether the period over which a critical shortage
might exist would be such that the word "temporarily" would be
inappropriate. A shortage might easily extend for two, three or
more years, in which case it could hardly be said that a restriction
necessary to meet these circumstances would be imposed temporarily.
"It is assumed that the references to the term "critical" in the
text of this sub-paragraph which were recorded in the minutes at the
Preparatory Committee in Geneva (see Geneva document E/PC/T/A/PV .40 (1))
will be preserved in the record of the proceedings of this conference."
7. The delegation of Greece supports the proposal of Australia to delete
the word "temporarily", or alternatively to add the following to sub-
paragraph (a):
"Such measures may be applied for a longer period time in the
case of foodstuffs the annual crop of which is subject to intermttent
flutuation."
The following statement, is given in support of. this proposal in
document C.3/l/Add.5:
/"The delegation E/CONF.2/C.3/7
Page 3
"The delegation of Greece has particularly in mind the production
of olive oil, which covers almost all the fat requirments of the
Greek population. It is well known that the olive oil crop is subject
to intermittent fluctuation. It is, therefore, absolutely essential
that our country should be able to impose restrictions on export,
both during years in which the crop is good in anticipation of a
shortage in the next crop and during years of scarcity."
8. The delegation of China proposes document 11/Add.9) that the following
be added to sub-paragraph (a):
"provided that, in cases of restrictions, priority in supplying such
foodstuffs or other products should be accorded to these Member
countries which are in urgent need of them and whose domestic
production is not substantial. If the commodity has many end uses,
the decision as to which end use is the most important should be made
by the importing country."
9. The delegation of Sweden proposes (document C.3/1/Add.40) that the
following be added at the end of this sub-paragraph:
"or to meet a considerable rise in prices of foodstuffs".
The following statement is given in support of this proposal.
"It seems reasonable that quantitative restrictions may be used to
prevent an increase in prices detrimental to the consumers."
10. The delegation of Mexico proposes (document C.3/1/Add.43) that this
sub-paragraph be amended as follows:
"(a) export prohibitions or restrictions temporarily applied to
prevent or relieve critical shortages of foodstuffs or other products
essential to the exporting [Member] country or intended to ensure the
supply of may materials to industry or to prevent the export of
products whose import is restricted under Article 21 and other relevent
provisions."
Paragraph 2 (c)
11. The delegation ouf Pe. proposes (doc11ument /Add.22) the deletion of
Sub-paragrah (c) eand the final sub-paragraph.
12. The delegatioen of Mxico proposes (documen1t C.3//Add.43) that the
first section of sub-paragraph (c) be amended as follows:
"import restrictions on any agricultural or fisheries product or
product vital to themyic economy the country, imported in any form.
necessary to the enforcement of governmental measures which operate"
13. The delegationrway of No proposes (documen1t C.3//Add.39)e ethone dlti
of the words "or fisheries" from the second line of this sub-paragraph.
/14.The delegationation E/CONF.2/C.3/7
page 4 mising E/CONF. 2/C.3/7
Page 5
secure more stable market-conditions,which seems to be in the interest of
exporting and importing countries alike."
22. The delegation of Ireland proposes (document C.3/1/Add.30) the adition
of the following sub-paragraph:'!h.:
"(iv)implement to nment memra goversent policpreventing y ewhih ims at Vmverting tho
inle of palling rimry produscnaers from fe.2 below a reamble
eonomic level, where 8uh roducers represent a substantial
Proportion of the working population.'
23. The deftion ofChile proposes (document C.3/1/Add.6) that the
folloqin trte be added at the end of paragraph 2:
cttlotons aplied[fo under (d)] Atorly (c)7 ofthe present Article
shell be strictly limited to periwodcs during himsh tceshe circutan
ftrreG. trherein p eseil and hall not be imposed on seasonal
aticles of consumption when like domestic products are not available."
ange (The the lettering of the paragraph results from the proposed
Cn amhileaendment to add new sub-paragraph "(a)')
24. The following note on paragraph 2 (c) was appended to the Geneva Draft:
The term "in any form" in this paragraph covers the same products
wnhen i an early stage of processing and. still perishable, which compete
directly with the fresh product and if freely imported would tenda to mke
the restriction on the fresh product ineffective.
25. The following note on the last paragwas raph ce3 appended to the Geneva
Draft:
The term "special factors" includes changes in relative productive
effsiciency as between domestic and foreign producers, or as between.
different foreign producers, but not changes artificially brought about
by mOns not permitted under the Charter.
Proposed Deletion of Article 20
26. The delegation of Ceylon (d1ocument 1/Add.33) proposes the deletion of
this Article.
Article 21 - Restrictionsg to Safeuard the Balance of Payments
27. The delegation of Ceylon proposes (document 11/Add.33). thaket the ti
O this Article be altered to read "Use of Quantitative Restrictions on
IzPort and that paragraph 1 should be replaced by the following:
"1. Any Memaber m~ through quotas, import or export licenses or
other easures, restrict the quantity or value of meirchandse
permitted to be imported, in order
(a) to safeguarexd its ternal financial position and balance
of payments, or
/(b) tmotso pro-ts 3/CONEF.2/C. 3/7
Page 6
(b) to promote the establishment, or protect the development or
reconstruction of particular industries, or particular branches
of agriculture, when no other form of protoction is available or
considered satisfactory by the Member."
28. The delegation of Australia (document C.3/1/Add.48) proposes to insert
"to assist in restoring a stable equilibrium in its" before the word
'balance of- payments.
A statement in support of this proposal appears in the document
mentioned.
Paragraph 2 (a)
29. The delegation of Argentina proposes (document 11/Add.3) that sub-
paragraph (a) (i) be amended as follows:
"to forestall the [imminent] threat of or to stop a [serious] decline
in its monetary reserves.
30. The delegation of Venezuela proposes (document C.3/1/Add. 44) that the
word "imminent" be deleted from sub-paragraph (i).
31. The delegation of Chile proposes (document C. 3/1/Add.6) the following
amendment of sub-paragraph (i):
"to forestall the [imminent] positive threat of, or to stop, a serious
or persistent decline in its monetary reserves."
32. The delegation of Ceylon proposes (doc11ument /Add.33) the addition of
the following sub-paragra :
"(iii) to afford adequate protection to the particular industry
"or branch of agriculture concerned."
Paragraph 2 (b)
33. The delegation of Australia (document C.3/1/Add.48) proposes the
following amendments in sub-paragraph (b):
"A Member [s] applying restrictions under sub-paragraph (a) shall
progressively relax and ultimately eliminate them as its external
financial position /such conditions/ improves, provided that the
relaxation or elimination of the restrictions would no longer
proiduce the conditions which would justify -eir int sification or
instituition respectively under sub-paragraph (a), [maintaining them
only to the extent that the conditions specified in that sub-paragraph
still Justify their application. They shall eliminate the restrictions
when conditions would no longer Justify their institution or maintenance
under that sub-paragraph]"
A statement in support of this proposal appears in the document
mentioned.
/Paragraph 3(a) E/CONF.2/C.3/7
Page 7
Paragraph 3 (a) 34. The delegation of Argentaina proposes (document 11/Add.3) that the
second sentence of suba-pragraph (a) be rewritten to read as follows:
"During this period he [the Oargzniation shall, when required to
take decisions under this Article or under Article 23 take full
account of the difficulties of post-war adjustment and of the need
which a Member may have to use] each Member may impose import
restrictions [as a step towards the restoration of] in order to restore
equilibrium in its balance of payments on a sound and lasting basis."
Paragraph 3 (b)
35. The delegation of Denmark proposes (document C.3/1/Add.38) to add
the following at the end of the first sentence:
"a high level of demand for imports or for the Members own export
Commodities".
36. The following note was appended to the Geneva Draft:
The phrase "notwithstanding the provisions of paragraph 2 of this
Article" has been included in the text to make it quite clear that a
Member's import restrictions otherwise "necessary" within the meaning of
sub-paragraph 2 (a) shall not be considered unnecessary on the ground that
a change in domestic policies as referred to in the text could improve a
Member's monetary reserve position. The phrase is not intended to suggest
that the provisions of paragraph 2 are affected in any other way.
Paragraph 3 (c)
37. The delegation of Ceylon proposes (document 11/Add.33) the following
amendments:
1. The deletion of the word. "commercial" from the fourth line of
Sub-paragraph (ii).
2. The insertion of the words "far as is possible" after the word
"as" in sub-paragraph (iii).
38. The delegation of Argentina proposes (document 11/Add.3) the deletion
of the last lines of sub-paragraph (ii) beginning with the words "or
prevent compliance with"
Paragraph 4 (a)
39. The delegations of Ceylon and Venezuela propose .(documents 11/Add.33 and
C.3/1/Add.44 respectively) the deletion of sub-paragraph 4 (a).
40. The delegation of Argentina proposes (document 11/Add.3) that sub-
paragraph (a) be written as follows
"Any member imposing restrictions under this Article shall inform
the Organization of the nature of its balance-of-payments dfficulties
and the various corrective measures which have been applied."
/Itproposes that E/CONF.2/C. 3/7
Page 8
It proposes that sub-paragraphs (b), (c), (d) and (a) be deleted.
41. The delegation of Italy proposes (document C.3/1/Add.2) the removal
of the parentheses and also the deletion of the words "in circumstances
in which prior consultation is impracticable" so that the phrase will
read "... shall before instituting such restrictions, or immediately after
doing so, consult with..."
42. The delegation of Uruguay proposes (document C.3/1/Add.13/Rev.1) the
following amendment:
"4. (a) Any Member which is not applying restrictions under this
Article, but is considering the need to do so, shall [, before
instituting such restrictions (or, in circumstances in which
prior consultation is impracticable, immediately after doing so),
consult with ] inform the Organization as to the nature...........
measures on the economies of other Members."
Delete the second sentence of this sub-paragraph beginning with the
words "No Member shall be required .........
Paragraph 4 (b)
43. The delegation of Uruguay proposes (document C.3/1/Add.13/Rev.1) to
replace the present first sentence of this sub-paragraph by the following:
"(b) Any Member which is applying import restrictions under this
Article or which intensifies them substantially, shall inform the
Organization within thirty days."
It proposes to delete the rest of this sub-paragraph beginning with
the words "A Member thus invited shall . " to the words " ...... at the
time of the review."
44. The delegation of Venezuela proposes (document C.3/1/Add.44) that the
last sentence of sub-paragraph (b) should be amended as follows:
[Not later than two years from the day on which this Charter enters
into force] as from 1 March 1952, the Organization shall review all
restrictions existing on that day and still applied under this Article
at the time of the review."
Paragraph 4 (c)
45. The delegation of Uruguay proposes (document C.3/1/Add.13/Rev.1) to
delete this sub-paragraph and to reletter present paragraph (d) and (e)
accordingly.
46. The delegation of Venezuela proposes (document C.3/1/Add.44) that the
last sentence of this sub-paragraph should be amended to read as follows:
"To the [extent] degree to which such approval has been given, [the
requirements of sub-paragraph (a) of this paragraph shall be deemed
/to have E/CONF.2/C .3/7
Page 9
to have been fulfilled, and] the action of the Member applying the
restrictions shall not be open...."
47. The delegation of Italy proposes (document C.3/1/Add.2) the deletion
of certain phrases as follows:
"(c) Any Member may consult with the Organization with a view to
obtaining the prior approval of the Organization for restrictions
which the Member proposes under this Article, to maintain, [intensify
or institute] or for the maintenance, [intensification or institution]
of restrictions [or institution of restrictions] under specified future
conditions. As a result of such consultations, the Organization may
approve in advance the maintenance [intensification or institution]
of restrictions by the Member in question, insofar as the general
extent, degree of intensity and duration of the restrictions are
concerned. To the extent to which such approval has been given, [the
requirements of sub-paragraph (a) of this paragraph shall be deemed
to have been fulfilled, and] the action of the Member applying the
restrictions shall not be open to challenge under sub-paragraph (d)
of this paragraph on the ground that such action is inconsistent
with the provisions of paragraph 2 of this Article."
Paragraph 4 (d)
48. The delegation of Italy proposes (document C.31/1/Add.2) that the
second sentence be amended as follows:
["The Organization, if it is satisfied that there is a prima facie
case that the trade of the Member initiating the procedure is adversely
affected] If the Organization, after a first examination of the
matter feels that the adopted restrictions can cause an unfair
injury to any other Member or the renouncement of such restrictions,
if imposed by the Organization, is such as to cause an unfair
injury to the Member applying them, it shall submit its views to the
parties with the aim of achieving a settlement of the matter in
question which is satisfactory to the parties and to the Organization."
Paragraph 4 (e)
49. The delegation of Italy proposes (document C.3/1/Add.2) that this
sub-paragrpah be deleted.
General Reservation
50. The delegation of Belgium reserves its position as recorded in the
Geneva Report pending examination of this Article by the Committee.
Article 22 - Non-Discriminatory Administration of Quantitative Restrictions
Paragraph 2
51. The delegation of Uruguay proposes (document C.3/1/Add.13/Rev1.) the
/following E/CONF.2/C.3/7
Page 10
following wording of the first sentence of this paragraph:
"2. In applying import restrictions to any product, Members shall
aim at a distribution of trade in such product approaching as closely
as possible to the shares given equality of prices and conditions,
which the various countries might be expected to obtain in the absence
of such restrictions, and to this end shall observe the following
provisions"
Paragraph 2 (d)
52. The delegation of Mexico proposes (document C.3/1/Add.43). that the
second sentence be amended as follows:
"In cases in which, this method is not reasonably practicable, the
Member concerned shall allot to Member countries having a substantial
interest in supplying the product, shares [based upon the proportions,
supplied by such Member countries during a previous representative
period, of the total quantity or value of imports of the product, due
account being taken ofr any special factors which may have affected or
may be affecting the trade in the product to be determined in
accordance with the production capacity in respect of the item concerned,
of the countries interested in filling the quota."
53. The following note was appended to the Geneva Draft:
The Preparatory Committee omitted the phrase establishing "commercial
considerations" as a rule for the allocation of quotas, because it was
considered that its application by governmental authorities might not
always be practicable. Moreover, in cases where it was practicable, a
Member could apply this consideration in the process of seeking agreement,
consistently with the general rule laid down in the opening sentence of
paragraph 2.
New Sub-Paragraph .
54. The delegation of Turkey proposes (document /Add.26) the addition
of the following sub-paragraph after (d):
"(e) in allocating quotas, due account should also be taken of the
position of those economically backward countries which at the time
of application of the restruction might be suppliers of the product."
Paragraph 3 (b)
55. The delegation of India proposes (document C.3/lAdd.24) :
1. the insertion of two words in the first sentence as follows.
In the case of import restrictions involving the fixing of quotas,
the Member applying the restrictions shall wherever practicable
give public notice..." . .
/2. the insertion E/CONF.2/C.3/7
Page 11
2. the insertion of a now phrase in the second sentence as follows:
"Any supplies of the product in question which were en route at
the time at which public notice was given, or where no such notice
was given at the time, at which the restrictions were put into
force, shall not be excluded from entry;"
3. the insertion of a new phrase at the end of the paragraph as
follows:
"..thirty days after the day of such public notice, or where no
such notice is given, after the day on which the restrictions are
put into force, such practice shall be considered full compliance
with this sub-paragraph." .
Paragraph 3 (b) and (c)
56. The delegation of Czechoslovakia has submitted the following comment
(document 11/Add.5):
"The delegation of Czechoslovakia, while not opposed to the
principle of public notice, is of the view that too rigid a rule would
have a restrictive effect upon the expansion of trade in general and
that unlimited publicity should be requested only by those countries
which have a predominant part of their trade with countries which
themselves publish quotas."
Paragraph 3 (c).
57. The delegation of India proposes (document C .3/1/Add.24) the amendment
of the last lines as follows:
"...the various supplying countries and shall wherever practicable, give
public notice thereof."
The delegation of India gives the following reasons in support of the
amendments proposed in sub-paragraphs 3 (b) and (c):
"The delegation of India considers that the obligation to give public
notice of the quantity value of imports to be permitted during a
specified future period may in certain situations give rise to
serious practical difficulties."
Paragaph 4
58. The delegation of Mexico proposes (document C.3/1/Add.43) that the first
lines of paragraph 4 be amended as follows:
"With regard to restrictions applied in accordance with paragraph 2 (d)
of this Article or under paragraph 2 (c) of Article 20, the [selection of
a representative period allocation of the quota for any product and
the appraisal of any special factors affecting the trade in the product
shall be made [initially] by the Member applying the restriction or
fixing the quota;"
/59. The Geneva E/CONF .2 /C.3/7
Page 12
59. The Geneva Report draws attention to the note in connection with the
last sub-paragraph of paragraph 2 of Article 20, which reads as follows:
"The term 'special factors' include: changes in relative
productive efficiency as between domestic and foreign producers, or
as between different foreign producers, but not changes artificially
brought about by means not permitted under the Charter.".
New Paragraph
60. The delegations of Syria and Lebenon propose (document C.3/1/Add.12)
the addition of the following paragraph:
"6. Should the reserves of the currency of one or more supplying
countries available to an importing country be inadequate, the
procedure for allocating quotas or granting licenses shall be
modified according to the reserves of such currency available."
Paragraphs 2, 3, 4, 5
61.. The delegation of Argentina proposes (document 11/Add.3) the deletion
of these four paragraphs.
Article 23 - Exceptions to the Rule of Non-Discrimination
Paragraph 1 (a)
62. The delegation of Uruguay proposes (document C.3/1/Add.13/Rev.1) the
following wording of the first sentence of this sub-paragraph:
"1 . (a) The Members recognize that when a substantial and
widespread disequilibrium prevails in international trade
and payments a Member applying restrictions under Article 21
may be able to increase its imports from certain sources
without unduly depleting its monetary'reserves. [ if permitted
to depart from the provisions of Article 22 ]
63. The delegation of Mexico proposes (document C.3/1/Add.43) the
insertion, of the words "or effectively ensure its development or recovery"
after the word "sources" in the sixth line.
Paragraph 1 (b)
64. The delegation of Norway proposes (document C.3/1/Add.39) that the
first lines of sub-paragraph (i) should be amended as follows:
"(i) levels of delivered prices for products so imported in relation
to prices of products exported in accordance with this Article are
not established...."
Paragraph (1)
65. The delegation of the United Kingdom proposes. (document 11/Add.8)
the following amendment in sub-paragraph (b) (ii):
"the Member -taking such -action does not do so as part of any
arrangement by which [the gold or convertible currency which the
Member E/CONF.2/C.3/7
Page 13
Member currently receives directly or indirectly from its exports
to other Members not party to the arrangement is appreciably reduced]
the Member's receipts from exports to other Members not party to the
arrangement whose currencies are convertible are appreciably reduced
below the level it could otherwise have been reasonably expected to
Paragraph 3 (a)
66. The delegation of Italy proposes (document C.3/1/Add.15) the following
amendments in sub-paragraph (a):
"Not later than 1March 1952, (five years after the date on which the
International Monetary Fund began operations) and in each year
thereafter, any Member maintaining or proposing to institute action
under paragraph 1 of this Article, shall [seek the approval of]
consult with the Organization [which shall thereupon determine] in
order to establish whether the circumstances of the Member justify
the maintenance or institution of action by it under paragraph 1 of
this Article. After 1 March 1952, no Member shall maintain or
institute such action without determination by the Organization that
the Member's circumstances justify the maintenance or institution of
such action, as the case may be, and the subsequent maintenance or
institution of such action by the Member shall be subject to any
limitations which the Organization may prescribe for the purpose of
ensuring compliance with the provisions of paragraph. 1 of this Article;
Provided that the Organization shall not require that prior approval
be obtained. for individual transactions] if this action cause any
unfair injury to any other Member, provided that the renouncement of
such action does not cause any unfair injury to the Member taking it.
67. The delegation of Denmark proposes (document C.3/1/Add.38):
1. the first lines of the paragraph should be amended as follows:
"[Not later than - March 1952 (five years after the date on
which the International Monetary Fund began operations)] As
from a date to be decided in due course by the Organization
and in each year [thereafter] after such a date, any Member
maintaining...".
2. the first line of the second sentence should be amended as follows:
"After [1March 1952] the same date no Member shall...".
Paragraph 3 (c)
68. The delegation of Mexico proposes (document1 C.3/1/Add.43) that the
last sentence of this sub-parargaph be amended by the insertion of the words
"and that there is no danger" that such disequilibrium will recur when the
restrictions imposed are removed" after the word "exists". -
/Paragraph 3 E/CONF.2/C.3/7
Page 14.
Paragraph 3 - New Sub-Paragraph
69. The delegation of Italy proposes (document C.3/1/Add.15) the addition
of the following sub-paragraph:
"(d) Before taking its determinations as provided fc.. in sub-
Paragraphs (a) and (b) of this paragraph, the Organization shall
establish whether the restrictions cause an unfair injury to any
other Member, and whether the renouncement of such restrictions,
If imposed by the Organization, is such as to cause an unfair injury
to the Member applying them."
Paragraph 3 - General
70, The delegation of Uruguay proposes (document C.3/1/Add.13/Rev.l) the
following changes in this paragraph:
Sub-Paragraph (a) to be deleted.
Sub-Paragraph (b) to be deleted.
-Sub-Paragraph (c)
The last sentence of this sub-paragraph to be amended to read:
"If; as a result of any such review, the Organization determines
that no such disequilibrium exists, the provisions of
Paragraph 1 of this Article shall be suspended.. [, and all
actions authorized thereunder shall cease six months after such
determination .]"
This sub-paragraph to become now sub-paragraph (a) ,
Paragraph 3
71. The following note was appended to the Geneva Draft -
The Preparatory Committee considered the question of whether it
was necessary to make express reference in paragraph 3 of Article 23
to the need of the Organization to consult with the International
Monetary Fund. It concluded that no such reference was necessary
since such consultation in all appropriate cases was already
required.by virtue of the provisions of paragraph 2 of. Article 24.
72. The delegation of Uruguay proposes (document C.3/1/Add. 13/Rev.1) that
a new sub-paragraph 4 (c) ,a added after sub-paragraph 4 (b):
"(c).or answer the purpose of making possible the payment by a
debtor State of its commercial credits in accordance with relevant
existing agreements, by means of additional imports from this .
debtor State."
Paagraph 5 (b) .
73. The delegation of Brazil maintains its reservation recorded in the
Geneva Report pending discussion in the Committee. - :2 - -
/New Paragraph 6 E/CONF.2/C.3/7
Page 15
New Paragraph 6
74. The delegation of France has proposed (document 11/Add. 24) that the
following paragraph be added to this Article:
"6. (a) The provisions of Article 22 shall not enter into force
in respect of import restrictions applied by a Member pursuant
to Article 21, in order to safeguard its external financial
position and balance of payments, and the provisions of
paragraph 1 of Article 20 and of Article 22 shall not enter
into force in respect of export restrictions applied by a
Member for the same reason, until 1 January 1949; Provided that
this period may, with the concurrence of the Organization, be
extended for such further periods as the latter may specify in
respect of a Member whose supply of convertible currencies is
inadequate to enable it to apply the above-mentioned provisions.
"(b) If a measure taken by a Member in the circumstances referred
to in sub-paragraph (a) of this paragraph affects the commerce
of another Member to such an extent as to cause the latter to
consider the need of having recourse to the provisions of
Article 21, the Member having taken that measure shall, if the
affected Member so requests, enter into immediate consultation
with a view to arrangements enabling the affected contracting
party to avoid having such recourse, and if special circumstances
are put forward to justify such action, shall temporarily suspend
application of the measure for a period of fifteen days."
In support of this proposal the delegation of France has stated that
this clause was inserted in the General Agreement on Tariffs and Trade and
it is essential that it should be incorporated in the Charter so as to
avoid any disparity in the two documents.
(Note by the Secretariat: The proposed amendment is identical with
the text of the clause in the General
Agreement except for the substitution of
"Member" for "contracting party.")
General
75. The delegation of Argentina proposes (document 11/Add.3) that the
whole of this Article should be deleted and be replaced by the following:
"Recognizing the principle of the non-discriminatory
administration of quantitative restrictions established. in Article 22,
taking into account the fact that not all the countries signing this
Charter are Members of the International Monetary Fund and also the
absence at present of any general and sound balance in international
/trade and E/CONF.2/C. 3/7
Page 16
trade and payment, Member countries shall not be required :to apply
the principle of non-discrimination in connection with international
payments until the above-mentioned conditions are fulfilled."
76. The. delegation of Czechoslovakia recorded a reservation at Geneva and
has submitted the following comment (document 11/Add.5):
"In the opinion of the delegation of Czechoslovakia the Geneva
text of this article does not take fully into account practical
difficulties of the present period. Accordingly the delegation of
Czechoslovakia feels that the original wording as it was in
Article 28 of the London and New York draft corresponds better to
economic realities."
77. The delegations of Belgium and Chile reserve their position pending
examination of this Article by the Committee.
New Article 23 (a)
78. The delegation of Greece proposes (document C.3/1/Add.5) that the
following Article be inserted between Articles 23 and 24:
"1. Notwithstanding the provisions of Article 20, paragraph 1, and
Article 22, paragraph 1, Members whose position is exceptional
inasmuch as the general state of their economy and the well-being of
their people are dependent on one or two agricultural products, each
product being considered as a single product throughout all the
phases of production and processing, may, in order to facilitate, the
export or the product or products, imposes discriminatory quantitative
restrictions on imports or maintain the restrictions in force on the
date of signature of this Charter, provided that:
a) in the case of a single product, the product represents
one-third, and in the case of two products, approximately one-half
of the average total annual value of the country's exports
during a previous base period;
(b) the product or products are not generally regarded as
essential either becausie of their nature or because of other
circumstacnces or conditions and thus normally encounter special
obstacles to their exportation;
(c) any Member, interested in the possible application of this
Article; shall have notified the other governments signatory of
this Charter, on the day of general signature of the Charter and
before its signature, of each of the products which,in their
opinion, meet the conditions set forth above.
/2. Members who E/CONF. 2/C .3/7
Page 17
"2. Members who propose to maintain restrictions after 1 March 1952
under paragraph 1 of this Article shall seek the approval of the
Organization. The Organization shall then decide whether the
maintenance of such measures by the Member concerned is legitimate."
The following supporting statement is given in document C.3/1/Add. 45:
"The delegation of Greece has particularly in mind the
difficulties encountered in exporting tobacco and currants. Those
two commodities are almost the only two export products which can
be grown rationally and economically in Greece and which are perfectly
adapted to the natural agricultural conditions. Tobacco cultivation,
processing and trade give employment in Greece to nine hundred
thousand people, while the currant industry employs five hundred
thousand (including dependents).
"Greek tobacco and currants (tobacco from Thrace and Macedonia,
currants from Corinth and Crete) are of exceptionally high quality
and require close attention both in their cultivation and processing,
which involves an increase in the coat of production and in the
price. As they are no longer considered as essentials, great
difficulty is found in selling them abroad. These difficulties have
been increased, especially in the case of tobacco, by the fact that
is not offered for sale directly to the broad masses of consumers;
it is offered indirectly through State monopolies and large-scale
cigarette manufacturers, who are able to direct the tast of their
customers. Greece has always been able to facilitate the sale of
these two products abroad through special clauses in bilateral
agreements.
"The express purpose of the amendment submitted by the delegation
of. Greece is to attain higher standards of living, full employment
and social progress for our working population, and that is also the
purpose of the Organization,"
Article 24 - Exchange Arrangements
Paragraph 2
79. The delegation of New Zealand proposes (document C.3/1/Add.53) the
deletion of most of paragraph 2 beginning with the second sentence:
"in such consultation the Organization shall...."
80. The delegation of Australia, proposes that the words "accept the
determination" in the eleventh line be replaced by "give special weight
to the opinions".
The delegation of Australia states that it accepts wholeheartedly
the need for the closest possible co-operation between the International
/Trade E/CONF. 2/C. 3/7
Page 18
Trade Orgnization and the International Monetary Fund in matter that are
of common concern to both bodies, but it does not believe that the way to
achieve this co-oeperation is to make one body subservient to the other.
The points given by the delegation of Australia in support of this
proposal are set out in document 11/Add.11 .
Paragraph 4
81. The following note was appended to the Geneva Draft: .
The word "frustrate" is intended to indicate, for example, that
infringements by exchange action of the letter of any Article of this
Charter shall not be regarded as offending against that Article if in
practice, there is no appreciable departure, from the intent of the Article.
Thus, a Member which, as part of its exchange control, operate in
accordance with the Articles of Agreement of the International Monetary
Fund, required payment to be received for its exports in its own currency
or in the currency of one or more members of the International Monetary
Fund would not thereby be deemed to be offending against Article 20. or
Article 22, Another example would be that of a Member which specified on
an import license the country from which the goods might be imported for
the purpose not of introducing any additional element of discrimination
its import licenses but of enforcing permissible exchange controls.
New Paragraph .
82. The delegation of Mexico proposes (document C.3/1/Add.43) the addition
of the following paragraph at the end of this Article: . . . -*
"10. Countries not having adopted the system of exchange control, may
apply appropriate and reasonable restrictive measures in order to
bring their position into line with that of countries where an
exchange control system exists; provided that no agreements on payments
are concluded with such countries." * . --
General ..
83. The delegation of Argentina proposes (document 11/Add.3) the deletion
of this Article. -.. . - - -
84. The delegation of Belgium reserves its position pending examination -
of this Article by the Committee . . |
GATT Library | ty126nb4298 | Revised annotated Agenda for chapter IV section C - subsidies | United Nations Conference on Trade and Employment, December 8, 1947 | Third Committee: Commercial Policy | 08/12/1947 | official documents | E/CONF.2/C.3/8 and E/CONF.2/C.3/1-/ADD.45-C.3/9/ADD.1 | https://exhibits.stanford.edu/gatt/catalog/ty126nb4298 | ty126nb4298_90190088.xml | GATT_151 | 3,365 | 21,610 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.3/8
ON DU 8 December 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGlNAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
REVISED ANNOTATED AGENDA FOR CHAPTER IV
SECTION C - SUBSIDIES
For the convenience of delegates the Agenda for Chapter IV is issued in
six parts (numbered C .3/6 to C.3/11), one for each of the six Sections of the
Chapter. This revised Agenda includes all the items which appeared in the
preliminary Agenda (E/CONF.2/C .3/1) and all proposals received from
delegations up to Monday, 8 December. The amendments to Section C have
already been issued separately in the following documents:
Cuba C.3/1/Add.52
Ecuador C.3/1/Add.49
Netherlands C .3/1/Add .25
Peru C.3/1/Add.51
Sweden C.3/1/Add.40
United States C.3/1/Add .41
Venezuela C 3/1/Add.44
General Note:
1. The amendments submitted by the delegation of the United States are of
such a character that the Committee may wish to consider them as a whole,
rather than Article by Article. They are therefore presented as a whole at
the end of the agenda, together with the accompanying explanatory notes
submitted by the United States delegation. This arrangement is not, of
course, intended to prejudge the order in which the Committee may decide to
consider the agenda.
Article 25 - Subsidies in General
2. The delegation of Cuba proposes (C .3/1/Add.52) that the words "direct
or indirect" be inserted after the word "subsidy" in the second line of
this Article.
3. Attention is drawn to the amendments to this Article proposed by the
delegation of the United States and shown at the end of this agenda.
Article 26 - Additional Provisions on Export Subsidies
4. General. At Geneva the delegation of Cuba reserved its position on
this Article.
5. Paragraph 2. The delegation of Sweden proposes (document C.3/1/Add.40)
that the words "directly or indirectly" should be inserted between the words
"taxes" and "imposed". /Explanatory note E/CONF.2/C.3/8 Page 2
Explanatory note by the delegation of Sweden.
The exception ought to comprise also duties on raw materials and
semi-manufactured goods used for the production of the exported articles.
6. Paragraph 3. The delegation of Argentina proposes (11/Add.3) the
deletion of most of this paragraph, beginning with the word "but" in the
third line.
7. Proposed New Paragraph. The delegation of Venezuela proposes
(C.3/31/Add.44) that the following paragraph be added to this Article:
"5. The provisions of Article 26, paragraph 1, shall not be construed
as applying to such subsidies as a Member may, in order to maintain
employment in the production of raw materials and foodstuffs, grant
in respect of one or several products, the cost of production of
which has increased owing to the maintenance of a rate of exchange
intended to maintain the external purchasing power of the Member
country. This exception shall be allowable only on condition that
the subsidy granted does not result in the sale of the subsidized
product on foreign markets at prices lees than those of the like
product produced in other exporting countries."
Article 27 - Special Treatment of Primary Commodities
8. Paragraph 1. The delegation of Venezuela proposes (C .3/1/Add.44) that
the words "that the system has also resulted" in sub -paragraph (a) be
replaced by the words "that the system may also result."
9. Proposed new paragraph 2. The delegation of the Netherlands proposes
(C.3/1/Add.25) the insertion of a new paragraph after paragraph 1 and the
consequent renumbering of paragraphs 2 and 3:
"2. A system for the stabilization of the domestic price or of the
return of domestic producers of a primary commodity, independently
of the movement of import prices, which results at times in the sale
of the movement of import prices, which results at times in the sale
of the product to buyers in the domestic market higher than the
comparable landed cost for the imported product, shall be considered
as a case under Article 25, even when it is determined:
(a) that the system has also resulted in the sale of the
product to buyers in the domestic market at a price lower
than the comparable landed cost for the imported product, and
(b) That the system is so operated, either because of the
effective regulation of production or otherwise, as not to
reduce imports unduly or otherwise seriously prejudice the
interests of other Members."
Explanatory remarks by the delegation of the Netherlands /(i) Many E/CONF .2/C .3/8
Page 3
(i) Many Governments have pledged themselves to some kind
of domestic price stabilization arrangement for
agricultural products. The objective of such arrangements
have been recognized on different occasions, especially
within the framework and organization of the FAO, to be
to the interest of both consumers and producers, provided
the price range of the stabilization scheme is "reasonable
and fair".
(ii) The proposed ITO Charter has the duty to safeguard the
interests of Members in case such price stabilization
schemes are put into action.
(iii) In the case of a country producing more than its
requirements for domestic consumption, leaving an export
surplus of such commodity, the provisions of Article 27,
together with Article 31, 1 (a), Article 33 (5) and
Article 43 I, (i) give sufficient scope for the operation
of a price stabilization scheme.
(iv) In the case of a country producing less than its
requirements for domestic consumption, importing the
balance of such commodity, the provisions are less
coherent and there seems to be a definite gap in those
provisions, presumably because the approach to this
problem has been made at the sessions of the Preparatory
Committee in different committees dealing with different
sections of the Charter and therefore an analysis of these
provisions seems necessary.
(v) A distinction has been made in the Charter between
monopolized or state-trading in imported agricultural
commodities and private trade. Where state-trading is
involved, Article 31, 1 (b), in connection with
Article 31 2 (b) and the second proviso in Article 31 (4)
give scope for a domestic price stabilization arrangement.
(vi) There is in this Article a balance between the right of
a nation to stabilize domestic prices of agricultural
products and the obligation to negotiate with other
interested Members to prevent undue limitation of imports
and to come to an agreement with countries parties to the
negotiation.
(vii) As to giving public notice of the arrangements of such
price stabilization schemes, Article 31 (3) provides for
/publication of Page 4
publication of the maximum import duty which will be
applied in respect of the product concerned.
(viii) When the importing country has no state -trading system
for the importation of the product concerned, the Charter
has far less provision to safeguard national interests and
prevent at the same time prejudice to the interests of
members nations.
(ix) In case of a "burdensome surplus" as considered in
Article 59, there is possibility of a price stabilization
in the framework of an inter-governmental commodity control
agreement, or, if such agreement cannot be reached, by the
application of Article 20, 2 (c).
(x) However, many nations want to establish price stabilization
schemes before any such burdensome surplus comes into
existence and as a matter of fact in the present period of
scarcity stabilize domestic prices by subsidies on the
importation of basic foodstuffs. This type of subsidy is
consistent with all the provisions of the Charter, but
there are no provisions in case the trend of world market
prices comes below the stabilized price range for domestic
production.
(xi) Evidently, at the same moment where the world market price
drops below the floor of this price range, a subsidy to
domestic producers is involved. But it would be an undue
burden on these producers who missed the previous higher
world market prices, to be forced all at once to
quantitative restrictions of production and such policy
would hamper the generally accepted principles of an
expanding world production and consumption.
(xii) On the other hand, it is highly desirable that the
Organization should be kept informed from the beginning
about the nature and the operation of any such price
stabilization scheme and that any Member, applying such
system, should be prepared to discuss the possibility of
limiting the subsidization. Such consultations might,
according to Article 27 (2), lead to the conclusion that
"special difficulties under Chapter VI" are the root cause
of the problem, or they might simply lead to an agreement
on quantities to be imported or produced or on the maximum
import duty to be applied.
/(xiii) In any such Page 5
(xiii) In any such case it will be necessary to have the facts
about the nature and the operation of the scheme. The
proposed amendment defines the basic requirements of a
sound and unharmful price stabilization scheme, viz.
domestic prices at times below and at times above world
market prices and safeguards against serious prejudice
to the interests of other Members.
(xiv) It might be added that Article 25 already has a provision
for subsidies which operate directly or indirectly to
reduce imports of the product concerned in general, but
that Article 27 lacks the provisions for special treatment
of an imported primary commodity. It must be further be
noted that, if the measures provided for in Chapter VI
have not succeeded in the case of importation of an
agricultural commodity the rule of Article 20, (2), (c)
still stands to safeguard the interests of exporters of
that commodity.
10. Paragraphs 2 and 3. The delegations of Argentina and Peru propose
(11/Add.3 and C.3/1/Add.51 respectively) the deletion of these two paragraphs.
11. Paragraph 3. At Geneva the delegation of the United States reservsed its
position on paragraph 3 of Article 27 and on Article 28. (See amendments now
proposed by the United States delegation, and shown at the end of this agenda).
Article 28 - Undertaking Regarding Stimulation of Exports
12. The delegation of Argentina proposes (11/Add.3) the deletion of this
Article.
13. At Geneva the delegation of the United States reserved its position.
(See note on paragraph 3 of Article 27 above).
14. The Committee may wish to re-examine the Article references contained.
in the first three lines of Article 28. For example, the qualification
regarding the use of export subsidies contained in Article 28 would not seem
applicable to paragraph 1 of Article 26, which in fact establishes a general
prohibition of export subsidies.
Also it is not clear that Article 28 can apply in the case of paragraph 2
of Article 26, since the payments referred to in the latter paragraph "shall
be considered as a case under Article 25" (to which Article 28 does not refer)
while "excess payments" are subject to the general prohibition contained in
paragraph 1 of Article. 26.
On the other hand, it may be considered desirable to extend the
qualification contained in Article 28 to apply to paragraph 4 of Article 26,
since a subsidy applied by a Member under this paragraph, whilst doing no more
/than offset E/CONF.2/C.3/8
Page 6
than offset a subsidy granted by a non-Member, might, in certain circumstances,
have the effect of increasing the Member's share of world trade in the product
Concerned.
Article 29 - Procedure
15. The delegation of Argentina proposes (11/Add.3) the deletion of this
Article.
16. The delegation of Ecuador proposes (C.3/1/Add.49) the insertion, between
the words "operation of" and "this Section" in line 2, of:
"Articles 25, 26, 27 and 28 of"
Proposed New Article to Follow Article 29
17. The delegation of Ecuador proposes (c.3/1/Add.49) the insertion of the
following new Article after Article 29:
"Article --
The Equitable Regulation of Prices in International Trade
1. The Members recognize that the permanent maintenance of an equitable
relationship between the prices of raw materials and manufactured products
in a manner ensuring just standards of living for the countries devoted
primarily to the production of raw materials is an essential condition for the
achievement of the objectives referred to in Article 1 of this Charter, with
a view to promoting the well-being of the nations and strengthening the
foundations of world peace.
2. The Members recognize that the permanent maintenance of an equitable
price adjustment in international trade requires domestic action as well as
joint action under the sponsorship of the United Nations Economic and Social
Council and the International Trade Organization in collaboration with the
appropriate inter-governmental organizations, each of these bodies acting
within its respective sphere and in accordance with its basic instrument.
3. Each Member may, acting in the spirit of this Charter, and for the
achievement of the objectives specified therein, initiate measures for the
establishment of equitable prices within its territories and for their
permanent maintenance in a manner permitting the establishment and maintenance
of standards of living consistent with the satisfaction of the basic needs
of man and the progress of the community.
4. The Members of the Organization should participate in arrangements
prepared or sponsored by the Economic and Social Council of the United Nations,
including arrangements made by the appropriate inter-governmental organizations,
to devise measures for the achievement of the objectives set forth in previous
articles, especially if such arrangements are concerned with the following:
/(a) the systematic E/CONF.2/C.3/8
Page 7
(a) the systematic collection and analysis of information
exchange on problems of price regulation, probable trends and
policies adopted in this connection;
(b) consultations with regard to concerted action by Governments
and inter-governmetal organizations in connection with the
policy of equitable price regulation."
United States: Proposed Amendments
18. The delegation of the United States proposes (C.3/1/Add.41) the
following amendments to Section C of Chapter IV: (Note: Underlining
indicates proposed additions to the text; square brackets indicate
proposed deletions).
Article 25 - Subsidies in General
If any Member grants or maintains any subsidy, including any form
of income or price support, which operates directly or indirectly to
maintain or increase exports of any product from, or to restrict
[reduce] imports of any product into, its territory, the Member shall
notify the Organization in writing of the extent and nature of the
subsidization, of the estimated effect of the subsidization on the
quantity of the affected product or products imported into or exported
from the territory of the Member and of the circumstances making the
subsidization necessary. In any case in which a Member considers
[it is determined] that serious prejudice to its [the] interest
[of any other Member] is caused or threatened by any such subsidization,
the Member granting the subsidy shall, upon request, discuss with the
other Member or Members concerned, or with the Organization, the
Possibility of limiting the subsidization.
Article 26 - Additional Provisions on Export Subsidies
1. Except with respect to primary products, no [No] Member shall
grant directly or indirectly any subsidy on the exportation of any
product, or establish or maintain any other system, which subsidy or
system results in the sale of such product for export at a price
lower than the comparable price charged for the like product to buyers
in the domestic market, due allowance being made for differences in
the conditions and terms of sale, for differences in taxation, and
for other differences affecting price comparability.
2. [Notwithstanding the provisions of paragraph 1 of this Article
a Member may exempt]. The exemption of exported products from duties
or taxes imposed in respect of like products when consumed domestically,
or [may remit] the remission of such duties or taxes [which have
accrued.] in amounts not in excess of those which have been collected.
/shall not be E/CONF.2/C .3/8
Page 8
shall not be construed to be in conflict with the provisions of paragraph 1
of this Article. The use of the proceeds of [such] duties or taxes to make
payments to domestic producers [however,] shall be considered as a case
under Article 25. [except insofar as such payments subsidize exportation,
in the sense of paragraph 1 of this Article, by more than the amount of
the duties or taxes remitted or not imposed, in which case the provisions
of paragraph 1 of this Article shall apply to such excess payments.]
Article 27 [28] - Undertaking regarding Stimulation of Exports
1. [Notwithstandaing the provisions of paragraphs 1, 2 and 3 of Article 26
and of paragraph 3 of Article 27, no Member shall grant any subsidy on the
exportation of any product which has the effect of] Any Member granting
any form of subsidy which operates, directly or indirectly, to maintain
or increase the exportation of any primary product from its territory,
shall not apply the subsidy in such a way as to have the effect of
maintaining or acquiring for that Member a share of world trade in that
product in excess of the share which it had during a previous representative
period, account being taken insofar as practicable of any special factors
which may have affected or may be affecting the trade in that product.
The selection of a representative period for any product and the appraisal
of any special factors affecting the trade in the product shall be made
initially by the Member granting the subsidy; Provided that such Member
shall, upon the request of any other Member having an important interest
in the trade in that product, or upon the request of the Organization,
consult promptly with the other Member or with the Organization regarding
the need for an adjustment of the base period selected or for the
re-appraisal of the special factors involved.
2. Should the Organization, upon complaint by a Member that serious
prejudice to its interest was caused or threatened by any subsidization
of the kind referred to in this Article find that such serious prejudice
was in fact caused or threatened and that the consultation provided for
in this Section had not resulted in such limitation of the subsidization
as would avoid such prejudice, the Organization may authorize the
complaining Member to suspend the application to the subsidizing Member
of such obligations or concessions under or pursuant to this Charter
as the Organization determines to be appropriate."
Explanatory Notes by the United States Delegation. (Numbers in sub-headings
refer to the Geneva text of the Draft Charter).
Article 25. In the Geneva Draft this Article might be interpreted to
apply only when there is a change in the volume of trade; under the present
amendment it would apply to a subsidy tending to affect trade, even if
other factors prevented any actual change in the volume of trade.
/In the Geneva E/CONF.2/C.3/8
Page 9
In the Geneva Draft a Member cannot call a subsidizing Member into
consultation until it is determined that its interest is seriously
prejudiced; under the present amendment the determination of prejudice
would be made by the complaining Member itself.
Articles 26 and 27. Paragraph 1 of Article 26 in the Geneva Draft
bans export subsidies on all types of products; paragraphs 3 and 4 of
Article 26, and all of Article 27, outline detailed and complicated
exceptions relating essentially to primary products. Under the proposed
amendment, Article 26 applies only to non-primary products; the exceptions
set forth in paragraphs 3 and 4 of the Article, and in Article 27, are,
therefore, rendered unnecessary.
The changes suggested in paragraph 2 of Article 26 are purely of
a drafting character.
Article 28. The Geneva draft discriminates between subsidies which
directly stimulate exports and those which operate indirectly to do so.
The proposed amendment removes this discrimination. It affords insurance
that no form of subsidization shall be used to increase any Member's
share in world trade. Since export subsidies on non-primary products
would be banned by Article 26 and since domestic subsidies on such
products would not appear to present a serious problem so far as
stimulating exports is concerned, the provisions of Article 28 would
apply only to primary products.
The proposed paragraph 2 establishes a procedure whereby a Member
who is injured by direct or indirect subsidization of exports can
complain to the Organization and, if its complaint is found to be
justified, can obtain permission to take offsetting action. This
paragraph is designed to put teeth into the general rule established
by the Article.
Article 29. Since the foregoing amendments would do away with all of
the ITO determinations that are required under the Geneva Draft, this
Article becomes superfluous. |
GATT Library | dv913xn7450 | Revised annotated Agenda for chapter IV section D - State Trading | United Nations Conference on Trade and Employment, December 8, 1947 | Third Committee: Commercial Policy | 08/12/1947 | official documents | E/CONF.2/C.3/9 and E/CONF.2/C.3/1-/ADD.45-C.3/9/ADD.1 | https://exhibits.stanford.edu/gatt/catalog/dv913xn7450 | dv913xn7450_90190090.xml | GATT_151 | 1,274 | 8,430 | CONFERENCE CONFERENCE E/CONF.2/C.3/9
ON DU 8 December 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
REVISED ANNOTATED AGENDA FOR CHAPTER IV
SECTION D - STATE TRADING
This revised Agenda for Chapter IV includes all the items which
appeared in the preliminary Agenda (E/CONF.2/C.3/1) and all proposals
received: from delegations up to Monday, 8 December. For the convenience
of Delegates this Agenda is issued in six (numbered C.3/6 to C.3/11),
one for each of the six Sections of the Chapter. All the- documents to
which reference is made are addenda to E/CONF.2/11 and E/CONF..2/C.3/1.
Article 30 - Non-Diacriminatory Treatment
General
1. The delegation of Argentina proposes document 11Add.3) the deletion
of this Article.
2. The delegation of the United Kingdom proposes (document-11/Add.8).
to replace "applied in this Charter to goverrmental measures in lines
eight and nine by "prescribed in this Charter for governmental measures'',
3. The following note was appended to the Geneva Draft:
Governmental measures imposed to ensure standards of quality
and efficiency in the execution of external trade, or privileges
granted for the exploitation of national natural resources but
which do not empower the government to exercise control over
the treding activities of the enterprise in question, do not
constitute "exclusive or special privileges',
Paragraph 1(b)
4- .The delegation of 'New Zeeland proposes (document C.3/1/Add.53) the
insertion of the words ``old-established connections; security market,''
after the word ``including'' in line 6.
5. The delegation of the United Kingdom proposes (document 11/Add.8) to
replace the word "prices" in line seven by the "price''
6. The folIwing note was appended to the Ge???? Draft
A country receiving a tied loan Is Free to take this loan into
account as a ``commercial consideration'' when purchasing requirement
abroad.
/Paragraph 1
United Nations
Nations Unies UNRESTRICTED E/CONF.2/C. 3/9
Page 2
Paragraph 1 - New Sub-paragraph
7. The delegation of New Zealand proposes (document C.3/1/Add. ) the
eddtion ot the following new sub-paragraph:
understood to include Marketing Boards, Commission, or similar
organizations;"
Paragraph 1
8. The following note was appended to the Geneva Draft:
The operations of Marketing Boards, which are established
by Members and. are engaged in purchasing or selling, are subject
to the provisions of sub-paragraphs (a) and (b).
The activities of Marketing Boards which are established
by Members and which do not purchase or sell but lay down
regulations covering private trade are governed by the relevant
Articles or this Charter.
The charging by a State enterprise of different prices for
its sales of a product in different markets is not precluded. by
the Provisions of this Article, provided that such different
prices are charged for commercial reasons, to meet conditions of
supply and demand in export markets.
Paragraph 2
The delegation of Mexico proposes (document C.3/1/Add.43) the deletibn
of this paragraph.
10. The following note was appended to the Geneva Draft:
The term "goods" is limited to products as understood in
commercial practice, and is not intended to include the purchase
or sale of services.
New Paragraph.
11. The delegation of New Zealand proposes (document C.3/1/Add. ) the addition
of the following new paragraph:
``3. Notwithstanding the provisicns of paragraph 2and 3 of
Article 20, a Member government may enter into a contract with another
country for the sale of the whole or a substantial proportion of the
Member's exportable surplus of a particular commodity or commodities
and such contract shall not be considered discriminatory.
(a) if the proportion of the exportable surplus thus sold is not
significantly greater than the corresponding proportion sold during 4
previous representative period, due account being taken of any special
factors which may have affected or may be affecting the trade in the
product; or
/(b) if the contract E/CONF .2/C. 3/9
Page 3
(b) if the contract is designed to assist a country whose economy is
suffering from the disruption caused by war."
Article 31 - Expansion of Trade
General
12. The. delegation c: Argentina proposes (document 11/Add.3) the deletion
of this Article.
Paragraph 1 (b)
13.The delegation of the United States proposes (document C.3/1/Add.17) the
deletion of the words "to an extent inconsistent with the provisions of this
Charter" at the end of sub-paragraph (b), and the substitution therefor of
the words "which might otherwise be permitted by the provisions of this Charter
Paragraph 2
14. The delegation of Cuba proposes (document C. 3/1/Add.52) the insertion
of the following sub-paragraph:
"(c) To modify an order, a rule and/or at other regulating measures.
or interior measures from the Monopoly that, in the opinion of another
Member country, shall be against the general objectives and/or against
the dispositions of this Chapter."
Paragraph 3
15. The following note was appended to the Geneva Draft:
If the maximum import duty is not bound by negotiations.
according to sub-paragraph 2 (a) the Member is free to change at
any time the declared maximum import duty, provided such change is
made public or notified to the Organization.
Paragraph 4
16. The following note was appended to the Geneva Draft:
With reference to the second proviso, the method and degree
of adjustment to be permitted in the case of a primary product
that is the subject of a domestic price stabilization arrangement
should normally be a matter for agreement at the time of the
negotiations under sub-paragraph (a) of paragraph 2.
17. The delegation of Denmark proposes (document C.3/1/Add.38) that the
following proviso be added to paragraph 5:
"Provided such raticaing does not aim at restrictions over and above
such restrictions that are otherwise justified according to the Charter."
Paragraph 6
18. The delegation of Switzerland proposes (document C.3/1/Add.16) that
paragraph 6 be reworded as follows:
/``6. [In applying] E/CONF.2/C. 3/9
Page 4
"6. [In applying] The provisions of this Article [due regard
shall be had for the fact that some ] are not applicable to monopolies
[are] established and operated mainly for social, cultural, humanitarian
or revenue purposes or for safeguarding the country's supplies of basic
foodstuffs."
19. The Delegation of Mexico proposes (document 11/Add.1) to delete the
word "or" before the word "revenue" and to insert the words "or public
service" after the word "revenue".
20. The following note was appended to the Geneva Draft of Article 31:
10. The Preparatory Committee deleted Article 33, as given in
the Report of the First Session.
In revising the text of Article 32 (now Article 31), of the
New York draft, the Preparatory Committee aimed at producing a text
sufficiently flexible to permit any appropriate negotiations with a
Member Which maintains a complete or substantially complete monopoly
of its external trade. However, since no representative of such a
country attended the session of the Preparatory Comeittee, the question
'whether the present Article 31 provides an adequate basis for
participation by such a country in the rights and obligations of the
Charter remains open for discussion at the World Conference.
Arising out of a proposal by the New Zealand Delegation to make
an addition to the previous text of Article 33, the Preparatory
Committee considered the special problems that might be created: for
Member which, as a result of their programmes of full employment,
maintanance of high and rising levels of demand and economic development,
find themselves faced with a high level of demand for imports, and in
consequence maintain quantitative regulation of their foreign trade.
In the opinion of the Preparatory Committee the present text of Article 21,
together with the provision for export controls in certain parts of
the Charter, e.g. in Article 43, fully meet the position of these
economies.
At Geneva the Delegation of New Zealand reserved the position of its
Government on this question. |
GATT Library | dp371rb6155 | Revised annotated Agenda for chapter IV section F - special provisions | United Nations Conference on Trade and Employment, December 8, 1947 | Third Committee: Commercial Policy | 08/12/1947 | official documents | E/CONF.2/C.3/11 and E/CONF.2/C.3/10-38 | https://exhibits.stanford.edu/gatt/catalog/dp371rb6155 | dp371rb6155_90190098.xml | GATT_151 | 1,778 | 11,982 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF.2/c.3/11
ON DU 8 December 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
THIRD COMMITTEE: COMMERCIAL POLICY
REVISED ANNOTATED AGENDA FOR CHAPTER IV
SECTION F - SPECIAL PROVISIONS
This revised Agenda for Chapter IV includes all the items which appeared
in the preliminary Agenda (E/CONF.2/C.3/1) and all proposals received from
delegations up to Mcnday, 8 December. For the convenience of delegates
this Agenda is issued. In six parts (numbered C.3/6 to C.3/11), one for each
of the six Sections of the Chapter. All the documents to which reference
is made are addenda to E/CONF.2/11 and E/CONF.2/C.3/1.
Article 40 - Emergency Action on Imports of Particular Products.
Paragraph 1 (a)
1. The delegation of Peru proposes (document C.3/1/Add.42) that the first
lines of sub-paragraph (a) should be amended as follows:
"If, as a result of unforeseen developments and of the effect
of the [obligations incurred by a Member. under or pursuant to this
Chapter, including] tariff concessions, any product is...."
2. The delegation of Cuba proposes (document C.3/1/Add.22) that the word
"or" should be substituted for the word "and" in the second line.
3. The delegation of Italy proposes (document C.3/1/Add.8) that the word
"and" after the word quantities" in the sixth line should be replaced by
the word "or".
Paragraph 1 (b)
4. The delegation of Denmark proposes that this sub-paragraph be deleted.
Paragraph 2
5. The delegation of Argentina proposes (document 11/Add.3) that the first
words of the last sentence be amended as follows:
"In [critical] circumstances where any delay...."
Paragrph 3 (a)
6. The delegation of Argentina proposes (document 11/Add.3) the deletion
of the last word of this sub-paragraph, namely "the suspension of which
the Organization does not disapprove."
New Article 40 A
7, The delegation of Colombia proposes (document C.3/1/Ad4.4) that the
/following E/CONF.2/C.3/11
Page 2
following new Article be inserted in Section F after Article 40:
"To avoid the consumption of any primary product being
unfavourably affected by measures taken or taxes imposed by any
member country, the following rules shall be observed:
(a) Any measure adopted by any Member country in the matter
of rationing or the fixing of maximum prices for primary
commodities must be subject to the following principles:
(i) Any maximum prices which may be fixed shall keep an
adequate relation with the costs of production and
transportation, and shall include a reasonable margin
of profit.
(ii) Due consideration shall be given to the objective of
progressively increasing the general standard of
living.
(iii) In the fixing of maximum prices no more unfavourable
rules and principles shall be applied to imported
products than to similar articles of domestic production.
(b) Any measures adopted by a Member country regarding primary
commodities which may be imported from another Member country
shall forthwith be communicated to the Organization, and through
the Organization, to the other Members. Any Member considering
that its interests may be unfavourably affected by such measures
may communicate with the Organization, which shall promptly
investigate the case, and after taking into consideration any
reasons which the complaining country and the country having
adopted the Leasures in question may allege, the consequences
which such measures may have on the economy of the former country,
and the rules set out above in this Article, shall decide whether
the measures in question must be withdrawn or maintained, and in
the latter cace, with what modifications if any.
(c) If any Member country establishes or maintains iternal taxes
which, although not contrary to other provisions of this Charter,
may unfavourably affect the consumption of any primary commodity
imported from any other Member country, the latter country may
submit the matter to the Organization, and the Organization, after
taking into consideration all facts bearing on the case, shall
make whatever recommendations it may deem appropriate, or promote
and. propitiate such negotiations between the Interested countries
as may ensure a satisfactory settlement of the question. If,
/contrary to any E/CONF.2/C.3/11 Page 3
contrary to any recommendations issued by the Organization, the
country having established or maintaining the tax, should not
suspend or modify it within a reasonable term, the country
considering its interests affected may withdraw any benefits
or conoessions which it has undertaken to grant to the other
country pursuant to other stipulations of this Charter."
Article 41 - Consultation
8. The delegation of Afghanistan proposes (document C.3/1/Add.45) to insert
after the word "health"' the following phrase:
"practices and regulations affecting the freedom of transit, ......"
Article 42 - Territorial Application of Chapter IV - Frontier Traffic -
Customs Unions
Paragraph 2 (a)
9. The delegation of Argentina proposes (document 11/Add.3) the deletion
of the words "in order to facilitate frontier traffic".
Paragraph 2 (b)
10. The delegation of the United Kingdom proposes (document 11/Add.8) that
the first proviso should begin as follows:
"Provided that the duties and other regulations of commerce
imposed [by] at the institution of, or any margins of preference
maintained by, any such union or agreement in respect of trade with
Members of the Organization, shall not ......."
11. The delegation of Chile proposes (document C .3/1/Add.6) that the
following be added at the end of the sub-paragraph:
"The plan proposed may be developed on the basis of reductions in
increasing percentages, in the overall tariff of neighbouring countries,
leading ultimately to its elimination; or on the basis of the total
or partial cancellation of the duties on some products, such cancellation
being progressively widened and extended to other products until the
customs frontiers are eliminated."
Paragraph 2 - new sub-paragraph
12. The delegation of Argentina proposes (document 11/Add.3) the addition
of the following sub-paragraph:
"(c) The formation of a group of complementary economies co-operating
on a compensatory basis and on the basis of quality of treatment."
13. The delegations of Lebanon and Syria propose (document l1/Add.14) the
addition of the following sub-paragraph:
"(c) The formation of a. free trade area by the conclusion of a free
trade agreement involving the substantial elimination of tarIffs and
/other restrictive E/CONF.2/C.3/11
Page 4
other restrictive regulations of commerce between Members belonging
to the same economic region."
14. Paragraph 3 (a)
The delegation of Argentina proposes (document 11/Add.3) that the words
"shall consult with the Organization and shall make available to it such
information" be replaced by "may consult with the Organization and, in that
case, shall make available to the Organization such information".
15. The delegation of Italy proposes (document C.3/1/Add.36) that this
sub-paragraph be amended as follows:
"3 (a) Any Member proposing to enter into a customs union shall
[consult with] inform the Organization and [shall make available
to it such] give any information regarding the proposed union as
will enable the Organization to make such [reports and] recommendations
to Members as it may deem appropriate."
Paragraph 3 (b)
16. The delegation of Argentina proposes (document 11/Add.3) that this
sub-paragraph be deleted.
17. The delegation of Chile proposes (document C.3/1/Add.6) that this
sub-paragraph be deleted.
18. The delegation of Italy proposes (document C.3/1/Add.36) that this
sub-pargraph be amended as follows:
"(b) No Member shall institute or maintain any interim agreement
under the provisions of paragraph 2 (b) of this Article [If, after
a study of the plan and schedule proposed in such agreement,
the Organization finds that such agreement is not likely to result
in such a customs union within a reasonable length of time] in such
a manner as to determine an unfair injury to any other Member of
the Organization."
Paragraph 3 (c)
19. The delegation of Argentina proposes (document 11/Add.3) that this
sub-pragraph be deleted.
20. The delegation of. Chile proposes (document C .3/1/Add.6) that this
sub-paragraph be deleted.
21. The delegation of Italy proposes (document C.3/1/Add.36) that this
sub-paragraph be deleted.
New paragraah
22. The delegation of Ira? proposes (document C.3/1/Add.46) the addition of
the following new paragraph:
/"5. Taking E/CONF.2/c .3.11
Page 5
"5. Taking into account the specially strong historical, cultural
and economic ties which bind together the states members of the
Arab League, Members agree that the provisions of this Charter shall
not prevent the countries forming the said League from entering into
special arrangements with respect to economic relations between them."
General
23. The following note was appended to the Geneva Draft:
"Paragraph 4 of the text of the former Article 38 proposed by the
New York Drafting Committee has been deleted since the subject dealt
with therein is covered by the new Article 15 and by Article 74. The
delegation of Chile favoured its retention."
Article 43 - Ganeral Exceptions to Chapter IV
Paragraph I... (d)
24. The delegation of Cuba proposes (document C.3/1/Add.52) that the last
Words of this sub-paragraph be amended as follows:
"......and the prevention of deceptive or disloyal practices in
commerce, harmful to normal production and labour."
Paragraph I (g)
25. The delegation of Australia reserves its position pending an
interpretation of this sub-paragraph in relation to certain restrictions
which the Australian Government imposes.
Paragraph I (1)
26. The delegation of Argentina proposes (docment 1l/Add.3) the deletion
of the last part of this sub-paragraph beginning with the words "during
.periods".
27. The delegation of Uruguay proposes (document C .3/1/Add .13) the deletion
of the proviso.
Paragraph I - new sub-paragraph
28. The delegation of Afghanistan proposes (document C .3/1/Add.45) the
addition of the following sub-paragraph at the end of paragraph I:
"(J) relating to the orderly marketing of seasonal surpluses of
agricultural commodities in order to ensure reasonably stable returns
to the producers thereof."
Paragraph II (a)
29. The delegation of Argentina proposes (document 11/Add.3) the deletion
of the proviso.
Paragraph II (c)
30. The delegation of Argentina proposes (document 11/Add.3) the deletion of
the proviso.
/Final paragraph E/CONF. ?/C.3/11 Page 6
Final paragraph
31. The delegation of Norway proposes (document C.3/1/Add.39) that the first
lines of the final paragraph be amended as follows:
"Measures instituted or maintained under paragraph II of this Article
which are inconsistent with the other provisions of this Chapter shall
be removed [as soon as the conditions giving rise to them have ceased,
and in any event not later than 1 January 1951] within a time limit
to be fixed by the Organization, Provided that...."
32. The delegation of Argentina proposes (document 11/Add.3) the deletion
of the proviso.
New Article
33. The delegation of Switzerland has proposed (document 11/Add.12) that the
following new paragraph be inserted at the beginning of Section F:
"A Member, unable to invoke the provisions of Article 21 and
finding that its economic stability, particularly in the fields of
agriculture or employment, is being seriously impaired or gravely
threatened, may take such steps as are necessary for safeguarding its
vital interests." |
GATT Library | jy440td8553 | Revised list of Countries and Delegates to the Drafting Committee | United Nations Economic and Social Council, February 24, 1947 | United Nations. Economic and Social Council and Preparatory Commission of the Conference on Trade and Employment Drafting Committee | 24/02/1947 | official documents | E/PC/T/C.6/77/Rev.1 and E/PC/T/C.6/73-85/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/jy440td8553 | jy440td8553_90230143.xml | GATT_151 | 706 | 5,374 | United Nations
ECONOMIC
AND
SOCIAL COUNCIL
Nations Unies
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED.-
/PC/T/.C,j/77R/Pv.1
24 February 1947
NGLISH ONLYpmy
..:.; ,,
MIDTRAFING HCOPRE E OF TEi MPIRTEEATORYH CONM1I TEE
AINTENFERATIONPL TROIDCEN ONM MAE AND ENPOYMEVT
REVISED UNLIIEST NDOF LECOTERS A DEGATS FTTNO THMMITTEEE DRAIG CO
Country
AiERLIA
.7
Delegates
Mr. C. E . Morton, Assistant Comptroller-
General (Tariffs), Depadrtment of Trae
-- ustoms.
.W. . Phillips, Assistant Economist,
Com hehh Bak ouf Arstrlia,.
- s nrti Department -of theTreasury
Xr. A. E. Tange, First Secretary (Economic),
Australian Delegation to the
United KationB.
BBELGIU= LUXEMBORG
BIAZIL
*r. J. Jussiant, Heal of BelginaE cononic
mission, London
Baroi P. de Gaiffier, First Secretary.,
Belg.an Embassy, London.
Senhor Octario Paranagua, Alternate
,xecutive Director, InternatIonal
Monetary Fund, Washington, D.C. (Head)
Senior Jose Garrido Torres, Directcr,
Brazilian Government Trale Brueau,
New York.
Senhor Roberto de Oliveira Ca8pos,
cSeond Secretary (Economic)
Brazilian Delegation to the United
1r. Arnold C. Smith, Department of
External Affairs.
CAMNAA
nations
Mr, Gordon B. Urquhart, Chief Dominion
Csutoms AppraIser, Department of
Ratoinal Revenue, Ottawa.
7Mr.F A. McGregor, Combines Investigation
Cmomissioner of Canada
ZM. Ian M. MacKeigan, Deputy Commissioner,
Clobines Investigation ComImssion,
Ottawa, Canada
/CMILE E/PC/T/C.6/77/Rev.1.
Page 2
Country Delegates
CHILE Senor Pedro Alvarez
Senor Fausto Soto
Senor Paul Fernandez
Senor Fernando Dahmen, Secretary of
Delegation.
Dr. T. T. Chang, Director, Department of
Foreign Trade, Ministry of
Economic Affairs.
Mr. K. S. Ma, Member, Tariff Commission,
Ministry of Finance.
CUBA Dr. Rufo Lopez Fresquet, representative
of the Treasury in the National
Economic Board, Technical Adviser to the
Ministry of Finance.
Dr. José Antonio Guerra, Representative
of the Treasury in the National Economic
Board and Statistical Adviser to the
Finance Ministry.
Dr. Guillermo Alamilla, LegaI Counsellor to
the Cuban Institute.
Senor Erasmo de la Torre, Secretary
of Delegation.
CZECHOSLOVAKIA Mr. Ladislav Radimsky, Head
(Czechoslovak Delegation to the
United Nations)
Mr. Bohuslav J. Bayer, Alternate
(Czechoslovak Ministry of Foreign
Trade, Division of Commercial Policy)
Mr. Lucian Benda, Czechoslovak
Ministry of Foreign Affairs,
Economic Department.
Mr. Benes, Ministry of Finance.
FRANCE Mr. Ernest Lecuyer, Ministry of
Foreign Affairs
Mr. Jean Royer, Ministry of National Economy
Mr .Alexandre Kojeve, Ministry of
National Economy.
Mlle. Anne Lissac, Ministry of
- Foreign Affairs. E/PC/T/C. 6/77/Rev. 1
Page 3
Delegates
Mr. B. N. Adarker, M.B.E.., Deputy
Economic Adviser to the Government of India.
Dr. Anwar Iqbal Qureshi, Economic Adviser to
the Ryderabad Government.
Mr. George Hakim, Counselor of
Legation of Lebanon, Washington, D.C.
and Alternate Delegate to the
Economic and Social Council.
Mr. Edward Ghorra, Acting Consul
General of Lebanon, New York
Dr. Simon Korteweg, Administrator,
Directorate-General for Foreign
Economic Relations
NETHERLANDS
Professor Doctor E. de Vries, Ministry of
Overseas Territories.
Mr. Phoa Liong Gie, Ministry of Overseas
Territeries.
Mr. T. O. W. Brebner, Consul General,
New York.
Mr. L. S. Nicol, Official Representative
of Customer Department, London.
Mr. G. D. L. White, Economic
Stabilization Commission,
Wellington, New Zealand.
H. E. M. Erik Colban, Ambassador.
UNION OF SOUTH AFRICA
Mr. Knut Lykke, Counsellor of the
Norwegian Embassy in Washington.
Dr. W. C. Nandé, Economic Adviser
to the High Commissioner in the
United Kingdom.
Mr. S. G. Sandilands, Representative of
Customs Department, New York.
UNITED STATES
Mr. John Leddy, Representative,
Division of Commercial Policy,
Department of State.
Mr. Marc Catudal, Department of State,
/Mr. Robert Terrill,
Country
INDIA
LEBANON
NEW ZEALAND
NORWAY E/PC/T/C.6/77/Rev. 1
Page 4
Country Delegates -~,.,: ,
. . B (Continued) Mrf,F Roert Terrill, Associate Chi.:.
s' 'isio1of International Resource6,
-. ;*, + ,,,,,., ,;,Department of State.
Mr. *IlismT. Phillips, Special
Assistant on Cmoity Policy,
International Resouces Division,
,'rtment of State. -
Mr'-dwart R. Kellogg, Division of
. , , ,.International Organization Affairs,
Deartent of State.
-. WitL n R.ohnson, Commissioner
.-,,''of' csLartment of Treasury.
UhTgDE 2CCM Mr. . P Shacse, C.M.,
Board of Trade (Head).
Miss M. Turnbr-.2ersonal Assistant to
.. . ... Mr. Shackle).
Mr. J. E. S. Fawcett, Foreign Office
(Legal Adviser).
Miss M. F. Hardie, Board of Trade.
OBSER:
Food and.Agriculte Organization
Mr. McDougal
Mr. Karl Olsen
.- , .. . Mr. Paul Lamartine Yates
International. Labour Office Mr. D. C. Tait
International Bai Mr. Anzel F. Tixrd
International MonetaryFund Mr. Ervin P. Hexte
MEXICO Senor Luis I. uie Secretary
of the Mexican Embassy, Washington, D.C.
COLCBIA. Senor Alberto Samper |
GATT Library | rp934dg9917 | Revised list of Countries and Delegates to the Drafting Committee | United Nations Economic and Social Council, February 13, 1947 | United Nations. Economic and Social Council and Preparatory Commission of the Conference on Trade and Employment Drafting Committee | 13/02/1947 | official documents | E/PC/T/C.6/77 and E/PC/T/C.6/73-85/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/rp934dg9917 | rp934dg9917_90230142.xml | GATT_151 | 698 | 5,459 | United Nations
ECONOMIC
AND
SOCIAL COUNCIL
Nations Unies
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/C .6/77
13 February 1947
ORIGINAL: ENGLISH
DRAFTING COMMITTEE OF THE PREPARATORY COMMITTEE OF THE
INTERNATIONAL CONFERENCE ON TRADE AND EMPLOYMENT
REVISED LIST OF COUNTRIES AND DELEGATES TO THE DRAFTING COMMITEE
Country
AUSTRALIA
. .
Delegates
Mr, C. E. Morton, Assistant Comptroller-
General (Tariffs), Department of Trade
ard Customs.
Mr. J. G. Phillips, Assistant Economist,
Commonwealth Bank, Representing
Ddpartment of the Treasury.
MH. A. E. Tange, First Secretary (Economic),
Australian Delegation to the
United Nations.
BELUXIUM-LTEMBOURG
BRAZIL
CANADA
Mr. M. Jussiant, Chief, Belgian Economic
Mission, London.
B.ron P. de Gaiffier, First Secretary,
Belgian Embassy, London.
Se:2or Octavio Paranagua, Alternate
Executive Director, International
Monetary Fund, Washington, D.C. (Head)
Senhor Jose Garrido Torres, Director,
Brazilian Government Trade Bureau,
NewYork.
Senhor Jose Augusto Garcia da Souza,
Deputy Delegate of the Brazilian
ureasvry Delegation in New York.
Mr. Arnold C. Smith, Department for
External Affairs.
Mr. Gordon B. Urquhart, Chief Dominion
Customs Appraiser, Department of
National Revenue, Ottawa
Mr. F. A. McGregor, Combines Investigation
Coinss40ner of Canada
- Mt. JanM. MacKeigan, Deputy Commissioner,
m CCabines Investigation Commission,
Ottawa, Canada
LCITTE E/PC/T/C.6/77
Page 2
Country Delegates
CHILE Senor Pedro Alvarez
Senor Fausto Soto
Senor Paul Fernández
Senor Fernando Dahmen, Secretary of
- Delegation.
CHINA Mr. T. T. Chang, Director, Department of
Foreign Trade, Ministry of
Economic Affairs.
Mr. K. S. Ma, Member, Tariff Commission,
Ministry of Finance.
CUBA Dr. Rufo Lopez Fresquet, Representative
of the Treasury in the National
- Economic Board, Technicai Adv.ser to the
Ministryiof F'nance.
é - Dr. Jose Antonio suerra, Repreaentative
of the Treasury in the National Economic
Board and Statistical Adviser to the
Finance Ministry.
Dr. Guillermo Alamilla, Representative
cfithe sugar cane Interests.
Senor Erasmo de la Torre, Secretary
of Delegation.
CZECHOSLOVAIA - Mr Ladislav Radimsky, Head
(Czechoslovak Delegation to the
United Nations)
. - Mr. Bohusliv J. Bayer, Alternate
(Czechoslovak Ministry of Foreign
Trade, Division of Commercial Policy)
Mr. Lucian Benda, Czechoslovak
Ministry of Foreign Affairs,
- -isEcoomic Department.
Mr. Benes, Ministry of Finance
M0WCE r. Ernist Lecuyer, Ministry of
Foreign Affairs
Mr. Alexandre Xoj~ve, Ministry of
National Economy.
Mr. Pierre Dieterlin, Ministry of
Natl6nal Econcmy.
Mile. Anne Liesac, Ministry of
~oreign Affairs.
/DiDIA E/PC/T/C.6/77
Page 3
Country Delegates
INDIA Mr. B. N. Adarkar, M.B.E., Deputy
Economic Adviser to the
Government of India.
Dr. Anwar Iqbal Qureshi, Economic
Adviser to the Ryderabad Government.
LEBANON Mr. George Hakim, Counselor of
Legation of Lebanon, Washington, D.C.
and Alternate Delegate to the
Economic and Social Council.
Mr. Edward Ghorra, Acting Consul
General of Lebanon, New York.
NETHERLANDS Dr. Simon Kortweeg, Administrator,
Directorate-General for Foreign
Economic Relations
Professor Doctor E. de Vries, Ministry of
Overseas Territories.
NEW ZEALAND Mr. T. O. W. Brebner, Consul General,
New York.
Mr. L. S. Nicol, Official Representative
of Customs Department, London.
Mr. G. D. L. White, Economic
Stabilization Commission,
Wellington, New Zealand.
NORWAY H. E. M. Erik Colben, Ambassador.
Mr. Knut Lykke, Counsellor of the
Norwegian Embassy in Washington.
UNION OF SOUCH AFRICA Dr. W. C. Naudé, Economic Adviser
to the High Commissioner in the
United Kingdom.
UNITED STATES Mr. S. G. Sandilands, Representative of
Customs Department, New York.
Mr. John Leddy, Representative,
Division of Commercial Policy,
Department of State.
Mr. Marc Catudal, Department of State.
Mr. Robert Terrill, Associate Chief,
Division of International Resources,
Department of State.
Mr. William T. Phillips, Special
Assistant on Commodity Policy,
International Resources Division,
Department of State.
/Mr. Edward H. Kellogg E/PC/T/C .6/77
Page 4
, .
EN=IID STATESn(cooednuq#) r.w.Edvard H. Kellogg, Division of
International Organization Affairs,
Pepartment of State.
IN D. .:; .
KINGDOM
Mr. William Ro mohnson, Ccmiissioner
of Customs Department of Treasury.
Mr.R. J Shackle, C.M.G.,
BoarH of Trade (Read).
Mr. J. E. Fawcett, Foreign Office
(Legal Adviser).
Miss M. Turnbull (Personal Assistant)
MissM. F. Hardie (Board of Trade)-
BS~NBS* - .
Food and Agriculture Organization
Mr. McDougal
Mr. Karl Olsen
Mr. Paul Lamr-ine Yates
International Labour Office Mr. D. C. Tait
International Bank
Mr. Ansel F. Luxford
International Mon6tary Fund. Mr. Ervin P. Hexner
MEXICO ü Senor Luis IbargUen, Secretary
of the Mexican Embassy,
Washingtca, D.C.
Senor Alberto Samper
UNITED
'n-1 --.+.
f'..- +
COMBIA "
. . . ..
, w. |
GATT Library | jx384xq9656 | Revised programme of charter discussions : Note by the Executive Secretary | United Nations Economic and Social Council, August 12, 1947 | United Nations. Economic and Social Council and Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment | 12/08/1947 | official documents | E/PC/T/DEL/69 and E/PC/T/DEL/46-71/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/jx384xq9656 | jx384xq9656_90210164.xml | GATT_151 | 244 | 1,409 | RESTRICTED UNITED NATIONS NATIONS UNIES
ECONOMIC CONSEIL E/PC/T/DEL/69
AND ECONOMIQUE 12 August 1947
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
REVISED PROGRAMME OF CHARTER DISCUSSIONS
Note by the Executive Secretary
A revised programme of Charter discussions is
attached. In issuing this programme the attention of
Delegations is drawn to the statement made by the Executive
Secretary in the meeting of Commission A on Tuesday morning,
August 12th.
This programme does not include meetings of sub-
committees.
UNITED NATIONS
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GATT Library | xd509xb2250 | Revision of Document E/PC/T/C.6/65 prepared by the Secretariat | United Nations Economic and Social Council, February 13, 1947 | United Nations. Economic and Social Council, Preparatory Commission of the Conference on Trade and Employment Drafting Committee, and Sub-Committee on Tariff Negotiations | 13/02/1947 | official documents | E/PC/T/C.6/65/Rev.1 and E/PC/T/C.6/61-72 | https://exhibits.stanford.edu/gatt/catalog/xd509xb2250 | xd509xb2250_90230127.xml | GATT_151 | 108 | 909 | United Nations Nations Unies
ECONOMIC CONSEIL - RESTRICTED2scn
AND ECIQONOMUE E/PC/T/6C.Rev/1ze.l
ALSOCCOUNCIL ET CIA 13 February 1947
ORGINAL:NGIMLISH
DRAFNG! COMMITTEE OTHE MR PEPARATORY CMOTMITEE OTHEF
ILTEDNATIONNS CNFERENCE ONNTR FDE NDAEMPLOYMEN
SU-BCOMIMITTEE 0ONTAFRIFF NGOTIATIONS
ERvVIION 0O DOCMUENT E/PC/T/C.6/65 PMREPARED BY TEH SEC RET
1. To the last clause of the Preamble add. the words:
"and. the provisions of Article 1 (M4intenznee afcDomestic
:E=1l nmployment) aticle 13 (Gove-nmenral Assistance to Economic
Development) .
2. Delete the first tuo liwes of paragraph 2 of Article XiII
and, substitute the followim:
"patificRtions af this Agreement shall be deposited. with
the Secretary-General of the United. Natio s ¶who .. .. etc. "
__*_ |
GATT Library | jc897wg2904 | Revision of Secretariat paper on plan of Work of the Second Session of the Preparatory Committee of the International Conference on Trade and Employment | United Nations Economic and Social Council, February 17, 1947 | United Nations. Economic and Social Council and Preparatory Commission of the Conference on Trade and Employment Drafting Committee | 17/02/1947 | official documents | E/PC/T/C.6/88/Rev.1 and E/PC/T/C.6/85/REV.1-92 | https://exhibits.stanford.edu/gatt/catalog/jc897wg2904 | jc897wg2904_90230159.xml | GATT_151 | 3,028 | 19,927 | United Nations
Nations Unies
RESTRICTED
ECONOMIC CONSEIL E/PC/T/C.6/88/Rev.1
AND ECONOMIQUE 17 February 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
DRAFTING COMMITTEE OF THE PREPARATORY COMMITTEE OF THE UNITED
NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
REVISION OF SECRETARIAT PAPER ON
PLAN OF WORK OF THE SECOND SESSION OF THE PREPARATORY COMMITTEE11MI
OF THEERNAT INNTIOANFERENCEL CO ON TRADE ANDL EMENTPOYM
1. At Its First Session held in London from 15 Octbber to o26 Nvember 1941,
the Preparytato Committfee o tnhe Iternational Conference on Trade and
Employment resolved to convene a Se Scosndesion to meet at Geneva on
8 April 1947, to consider certain items of its agenda in accordance with the
Economic and Social Council's Resolution of 18 February 1946. By another
Resolution regarding Negotiation of a Mualtilteral TrAade greement Embodying
Tariff Concessions, the Preparatormy Comittee mmredcoened that a meeting
involving such negotiations betweemn Meber governmsentl hbeoud held under
the sponsorship of the Preparatorym Comittee in connection with, and as part of,
the Second Session, and ucoendctd in accordance with the Memorandum on
Multilateraal Trde Agreement Negotiations approved by the Preparatormy Comittee
ast it First Session. By the same Resolution, Member governments were invited
to communicate to the Secretariat their views on the above mentioned.
mmrecoendation. No Gnoverment ghas iven any indication, in reply to the
Secretariat's communication on this point, that it would see anfy dificulty in
,the convening of the Second. Session in accordance with this Resolution. In
view of this fact , itis proposed that the Second Session of the Preparatory
Conitee, at whichu mltilateral tariff negotiationsw vll be conducted, lwijl
take place as planned. It has been found. appropriate, however, suggto est
that the opening be delayed. two days so that delegates will not be onincvenienced
by the Easter traffic. The Session will, therefore, begin at 3:00 p.m. on
/loAril E/PC/T/C.6/88/Rev.1
Page 2
10 April in Geneva in the building of the United Nations and cabled. .
communications to this effect are beinG addressed. to the Governments
concerned, as well as to the Food and Agriculture Organization, the International
Labour Organization, the International Bank for Reconstruction and Development
and the International Monetary Fund, The American Federation of Labour, thei
International Co-operative Alliance, the nIternatlonal Chamber of Commerce j
and the Wordld Feeration of Trade Unions are also being advised, and the
Secretariat is drawing their attention to the fact that most of the work in
Geneva will probaably tke place isn cloed. session as was the casLe dinn ono.
2. By note dated 24 January 1947, the Department of Economic Affairs of the
United Nations drew the attention of the delegates toD the rgaftin Committee,
set up byP the roparatommry Coittee at its First Session, to the provisions
of the Memorandumul on Mtilateral Trade Agreement NeGotiations approved in
LonAdon (nnexure 10 to the Reporth of te First Session), in regard to the
exchange of infornmatio in apnticiatfion o the Second Session, and requested
them to bring the question to the noti ce oftheier megov rnntsso hthatte---
necessary interchange of documentulation cod take place as early as possible.
oThis in nfrmatiorefers to the base date for the negotiation of preferences,
exchange of customs tariffs and submission of lists of requested concessions.
The documentation already received. is being distributed. to the Governments
concerned and it isd expectethaten governmts will hasten to forward to the
Secre.riat the necessary information whenever they have not already done so.
Such action is essential to the smooth beginning of the tariff neGnotiatios.
The lists of products on which countrieeqse are rusting tariff reductions will
be treated. as strictly confidentihal by te Secr. Aetariatlso in accordance with
the Msmoin randu questionrn, Govezaeents hbsbeen aosked.t6provide the
Secretariat with an indication of the number ando size f the negotiating
tems tlhat wil be sent to Genevhafor te tariff negotiations.
'I, E/PC/T/C .6/88/Rev.1
Page 3
Schedule of Meetings at Geneva
1. (a) At the Seventh Heads of Delegations meeting held on 21 November 1946
document E/PC/T/Del/17) in London, the Delegate for the United Kingdom
stated that his delegation felt it would be wise to concentrate at Geneva
on the tariff Schedules for a considerable time at the beginning. of the
conference, fixing 8 May as the date on which to start discussing the
general clauses. He added that the o.>e report ofDthe Irfting iCozemtteo would
lie on the table for four weeks from the begginnin and then the Deleations
woulmond sun their expertks Wor on tariff negotiations could continue
alotG iThwork on the generala cliues. This proposal wagse asre; to,
(b) However, the Delegation of tnhe Uited States to the Dragftin Committee
has circulated a document (E/PC/T/C.6/53) suggesting that certain
provisions of the Charter closely related to the tariff negotiations might
usefully be examined simultaneously with the initial discussions on tariffs.,
it gbein understood that thei tarff negotiations should. in all cases have
priority in the event of a conflict of meetings. This view is base on the
followings coniderations:
(i) It would appear desirableu to se to the extent practicable the
period that will elapse at the beginning of the Second Session
while each Delegation is considering the lists of cssonnceios
offered by other gaDeletions.
(ii) It will be necessary to reach a conditional and tentative
understanding on certain fundamental provisions of thhe Cr,arte as
otherwise tariff negotiationgs miht well be impeded, particularly
I view of the doubt it would cast on the value of the tariff
concessions to be exchanged.
Consequlyent, the United States gsugests that all Delegations should be
ready to dusiscs the Drafht Carter from the beginning of the Geneva Session.
/CI)itis E/PC/T/C.6/88/Rev.1
Page 4
(c) It is necessary that the Governments concerned. should consider the
implications of the United States' suggestions and make arrangements with
regard to their representation in Geneva which will enable the tariff
negotiations to proceed. without being held up by unresolved. issues as to
. the bearing of relevant provisions of the Draft Charter.
(d) A solution to the problem might be found. by arranging for each
Delegation to include, as from 10 April, responsible officials who
besides serving on the committees mentioned below could also, as necessary,
discuss and. carry to- the stage of provisional conclusions such questions
relating to the relevant tariff provisions of the Charter as miGht have
to be dealt with in the initial states of the Session.
2. Stages of the Work at the Second Session.
(a) In accordance with Section E, Base date for Negotiaticns, Paragraph 3,
and. Section F, paragraph 1, First Stage, of the Memorandum on
Multilateral Trade Agreement Negotiations (Annexure 10 to the Report of
the First Session) thep erlminairy stages of the tariff negotiations at
Geneva are now. being accomplished. The Secretariat is circulating the
information provided ofr in the efrerred. paragraphs as it is received,
and. avails itself of this. opportunity to urge Members to transmit the
data in question whenever they have not already done so.
(b)10 April
(i) A Heads of Delegation Cmomittee will presumably be set up to
exercise superior direction over the activities of the Second.
Session as a whole.*
Although Syria is not a member of the Preparatory Committe eand, conseuqently
stnot expected to 0it:on the Committees to be set up to study the Charter,
on which - in any case - Lebanon will represent the Syro-Lebanese Customs
Union, it is thought reasonable to have Syria on the Heads of Delegations
Committee. Otherwise, it would be necessary to divide the work into i
(1) Charter. and (2) Tariffs, in all respects; as the two subjects are so
closely interconnected., such a procedure would. be undesirable.
/(ii) The Tariff E/PC/T/C .6/88/Rev.1
Pace 5
(ii) The Tariff .Steering Committee mentioned in paragraph 2,
Section F of the Memorandum, should be set up immediately, to
centralize and guide the work on tariff negotiations, and
should be composed of representatives of all the Delogations
participating in the tariff negotiations.
(iii) Each Member will submit a schedule of the proposed concessions
which it would be prepared 'to grant to all other members in
the light of the concessions it has requested from them.
(Section F. paragraph 1 of the Memorandum mentioned above).
Delegations will require sometime to study the concessions
offered by other member3. Tentative tariff negotiations should
begin in accordance with Section F, paragraph 1, Third Stage, of
the - r the Memosandum on Multilateral Trade Agreement Negotiations as
soon as the Delegationo feel they have studied the concessions
sufficiently.
(iv) on rep8 Mayrt tohe paraty Cmittee would take up the
Draft Charter with a view to carrying to a.conclusion all
outstanding points. It is suggested that the Preparatory
.-Committee may find It convenient during its Second Session
when the Draft Charter has already been exhaustively considered
by the First Session and been re-examined by the Drafting
Cbmittee, notm to use a comittee structure similar to that
:-h: as employed in -cndon, but to avail itself.of a system
somewhat similar to that which has been used by the Drafting
Committee)i.e. to study' certain parts of the Charter in
: * plenery session,' setting up ad hoc groups and sub-committees
w-5nCesry to deal-vitspecific questions. This procedure
xgbtgo far to avoid' he unnecessary repetition of'dscussion
anvad argumenthad'ced at the First Session.
1v) It is E/PC/T/C.6/88/Rev.1
Page 6
(v) It is expected that by the time the experts on the' tN
D egations have studied.,the lists of proposed concessions,
he.'sTarff . temmerigCosittee will have plsannd as3 fr aS
possible, athe brod lines of the progress of the negotiations.
The Secretariat is preparing statistical material to
, ,,sfailitatng.e suchlan niz. Athough-one hundred and thirty-six
. a* .bilaterl ccbinstions a re possible, i is.obvious that they
*. , will ot beo arrie out.simultaneously and - further - that
a n-ber of them will have lesser importance. For the
. . rational planning of the negotiations, their relative
oimportanceand inter-ralticnwill have to be studied In
advance as far as this may be feasible.
pro (vi) As the negotiation=oceegd it will be necessary fo Seneral
reviews of what has been agreed to take place periodically
or, if possible, conti-culy. This would serve the purpose
or enablingthe secondary suppliers which did not participate
in negotiations concerning any product to inform themselves
of the position, reached. * .
(vii) Once a point were reached when substantial and satisfactory
*. .~ agreement had been attained, it would be timeto consider
Items 11, 12, 13 gd 15 of the Agenda -f the,
.Pre-ratory Co=ttee at its First Session, which were
referred to the Second Session. There would be final plenary
se insto approve the.finl report to the- -
Economic and Sccial, Coacil and to sign.the General Agreement
* on Tariffs ad .Trade, the ter.of which would also have bee,
F. studie in.the course f -the Second e2sion.
(viii u Te Fcuraton .oftheSecond- Sesaon hs been jinofially
estimated at not lessthan three tohs.ae
/3. A Memorandum
.~~~~~~~~~~~~~~~~~~~~~~ E/PC/T/C.6/88/Rev.1
Page 7. .
3. A memorandum which was drafted following conversations which took place
in Londona 13 nd 14 aJanury, betweenr senraepvet tiesof tohe Gverments of
France, United Kingdom and United Staotesm, f erica, is enclosed. This
memorandum was forwarded to the Secretariat on 18 February by the French
Delegate to the Drafting Commi.ttee
III
1. Quite apart from the Charter discussions, in respect of which its role
is already well defined,is It . proposed that the Secretariat will deal with the
following matters, among others, connected with the tariff negotiations at the
Second Session:
(a) Service the Tariff Steeriommng Cittee mentioned in Section F,
paragraph 2, of the Memorandum on Multilateral Trade Agreement Negotiations
and any Committee that mays be et up to deal with the text of the
General Agreement on Tariffs and Trade or any other Committee
established in connection with the tariff negotiations.
(b) Provide expert assistance to Delegations in exceptional cases when
this is required in order to facilitate the negotiations. Governments
anticipating that such assistance may be required, are asked to advise th,.
Secretariat as early as possible, since otherwise, the staff cannot be
made available.^
(c) Carry out general liaison among various negotiating groups and
provide a central point for confidential information on the progress of
the negotiations to be made available to Delegations.
(d) Provide statistical assistance to Delegations, which will facilitate
the speedy progress of the negotiations.
(e) Establish a stringent and thorough security service.
(f) Establish an Order of the Day Office and render various purely
administrative services in connection with the negotiations.
2. Particulars of a purely administrative nature were dealt with in a letter
/of 23 January E/PC/T/C.6/88/Rev.1
page 8
of 23 January addressed, to Delegates to the Drafting Committee, who were
requested to advise their Governments accordingly.
3. A memorandum on certain services connected with the bilateral tariff
negotiations is enclosed.
UR 1 /ENCLOSiE NO.. ENCLOSURE NO. 1 the United States ,:,F a ,andtthe.V ef iS- had
ited Kingdom had- ' .*ates, ;ne 4te i 80..-Pr*ed
d 14 January of considering the procedurean oport*iy nfon on '3.2.,. >
for conducting "atizatera3 iff negotiations at Geneva next April.
importance shoul be attachedr v i' il ~.~:~ .s:.-.~ .txh 2
eed at S .shou be attached.
to the s i Secn F othe so-called Procedural Me~radt.m
(;ixe 10 t;o te Report of tbo Fir Session of. th p atory -r
Comittee Qfthe United Natioam Cference .on rad&; anZEp:ysnt
as follows: * . * i - *'2
"Second Stage, At the opening of the Secqd !esIon. the
Prepeaioy omittee each member should submit a schedule of the
proposed concessions which it would be prepared to grant to al.
other members in the light of the concessions it would hee requested
from each of them."
The offi'ti Prepent id not seet a other way in which the
negotiations .could quickly 1. ot t.-nder. way and thay .m cohnd that
steps should. be taken by .t1Ae Secretariat of the Preparatory Co=itteeS
to call the special attention of Governmits ,conbernedc to this lpaesge.
in the ldemorandum..; . ., . . ..
It would. sretly si iz47, and shorteAthe negotiations if each,
country_.ould. submit. initially-. itsx beat, possible' sczedul_ -f ttiCf offers.
In doln , -tE should have no fear of. prpjuicing its 'position smilce th,'
initial, o~l'fr3 would- be .vetirelyy- coiditiozia upon, securing 'hat eich resaris
as..adeqlute bone its from.other countZiep, a=d-the achedul&e 'coul3.be thavn
Vi ,whie or .i4 -art if. such -benefiztas ho~uld.. not- be fbthcozn8g. "
,.Theo
f <,IictiaJ a preset, -.oqntepJ.td that te : ogendti~n. -n 'the''*
above quop4,paa. woul. noce-s ilaad< -bthe. fboitgprvdt~ sl:'4
steps: - '-I
.~~ ~~~e .*h cb -ifJAA i;adb pi '4alSg 1" c,. sbeth toeul
-- oloth cocessaons 'it wou1& be prepared to grant, subject to
receive c epti Lctot, j; ' ,5 < ,.v l E/PC/T/C. 6/88/Rev. 1
Page 10
(b) Each Delegation would thereafter make iea~ e a study of the concessions
whjh it might expect to receive as set out in the list from each
of thea otnher Delegtios.
as any two (eceg) Aons had sMdon d- .ch other's lists v -ibied tdie eai
enha qleas as sieds t ofaffory rq. i. (qqictX.ori)eding
further discussiaion, neogod tt opiondsbetw cnulbeeneo ee the tw
Delegations concernedi on thee fintihartof tiev. o eitethm
(d) Other bilks oaterals taln the ame basis swould ensu as the
stUhe'is60 or lstons osf ' c&sion were complete.
It wo uldessa benoecry fr lAll Deegationls ryeguaexchrl toeange
information ase to th alterations in their proposssed lit of concessions
arising from tdhe conUct of their several bilategoral inetiatons. Each
country would thereby be enabled to follow closely developments concerning
particularly tariff items iin, whch it wars ienteestdh,ps hePera t most
sartisfwaycory nsua of ering this wo uld beto arrange for the central
gexchanne omaf ifortion through the Secretariat.
In thish wayl te mutilateraal charcter onfgo the entiatios wouid
be preserved. while at methe sa time the process of bargaining between
two indiviodual cu wonltriesud proceed as rapidly as possibie. Where
more that one country "was interested in a particuelar itm, special
meetings could be arranged between groups of the countries interested.
Olfisiaaes prticularly nohtedi titl owI lolcng the above procedure
ilt eiudbu snece eary'o prevent unauthorized disclo sure f concessions
conditionally contemplatedn, sirce geat embarrassment Would be caused to
:lgatnioisif a 'poposed. oncession baeicm kwn nomi, tself withouttany
oknwledgoe n the partf ohos oe who arnleeof it, d vt' that it was conditional
upon satisfactby'oonia~ssions beiung bttined in retiz. I' ovUd, therefore,
be necessary for partticular atten the security trraniemenon o be paid to8 a gts
and fto the samfes custwy oZany dpocui lint'containing pro6sed.ts of
concessions.
d thoThe it was the intention of the Umeeting statesUdersto& : .o t nited tt
e number of "negotiating groupsGovernment to provide a cc4aderb1 6±' egotiatin4 groups". They
understoods that other countries would in very many cases be unable to do so.
/Tby E/PC/T/C.6/88/Rev.1
Page 11
They considered that the presence of a number of groups in the United. States
Delegation would be of considerable help to those who were not able to
provide so many since it would make it possible for a number of
simultaneous negotiations to take place at an early stage between the
United States and the other countries concerned., thus enabling a large
amount of the ground to be covered simultaneously at an early stage in
the process of negotiations.
... . . . . ....
. - -
/ECLOSURE
. I ! E/PC/T/C.6/88/Rev.1
Page 12-
ENCLOSURE NO. 2
ERbICIMX OFrBILATERAL TARIFF NEGOTIATIONS T E I &'.
Govmrzts should note that it will not be pfoossible ;r he
SeCtaat to provide either documents anguages or vlWeen cs for
s;' or ,a*, ag,, : ! .8 for;_; ;;,
tely hat part & the trif work which will concern Qxc siv3gy
bilateral ne tiations between Delegations. Naturally, this rule -
will not apply to the Tariff Steering Committee or to any other
cci:te established to deal with the tariff side of the work.-
Delegations will, therefore, have to bring their own interpreters,-
translators and typists. It should be kept in mind that the working
languages will be French and English.
The documents service at Geneva will probably be able to
produce documents provided that the Delegations have their own
stencils cut. |
GATT Library | rs348fj6556 | Revision to the Programme of Charter Discussions | United Nations Economic and Social Council, August 8, 1947 | United Nations. Economic and Social Council and Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment | 08/08/1947 | official documents | E/PC/T/DEL/66 Amend.1 and E/PC/T/DEL/46-71/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/rs348fj6556 | rs348fj6556_90210160.xml | GATT_151 | 183 | 1,150 | UNITED NATIONS NATIONS UNIES
ECONOMIC
AND
SOCIAL COUNCIL
RESTRICTED
CONSEIL E/PC/T/DEL/66 Amend.1
ECONOMIQUE 8 August 1947
ET SOCIAL
ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Revision to the Programme of
Charter Discussions
Since there was not time to take up the Report of the
Sub-committee on Articles 34, 35 and 38 on Friday, August 8th
as originally scheduled, there will be a meetIng of Commission
A on Monday at 10.30 for this purpose
The Tariff Agreement Committee which was scheduled for
that time is cancelled.
DEUXIEME SESSION DE LA COMMISSION PREPARATOIRE DE LA
CONFERENCE DU COMMERCE ET L' EMPLOI DE
L'ORGANISATINOS NATIONS UNIES
Modification au proramme des
deliberations relatives a le Charte.
La Commission A n'ayant pas eu le temps d'examiner le
vendredi 8 août, comme il etait prévu, le rapport du sous-
comité chargé de 1' examen des articles 34, 35 et 38, se
reunira a cet effet lundi a 10 h. 30-
La stance du Comite charge de l'étude de l'Accord sur
les Tarifs douanicre avail pour cette date
est annulée. |
GATT Library | pq849zn0593 | Revision to the Programme of Charter Discussions | United Nations Economic and Social Council, August 9, 1947 | United Nations. Economic and Social Council and Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment | 09/08/1947 | official documents | E/PC/T/DEL/66/Amend.2 and E/PC/T/DEL/46-71/CORR. 1 | https://exhibits.stanford.edu/gatt/catalog/pq849zn0593 | pq849zn0593_90210161.xml | GATT_151 | 138 | 939 | UNITED NATIONS
ECONOMIC
AND
SOCIAL COUNCIL
NATIONS UNIES
RESTRICTED
CONSEIL E/PC/T/DEL/66/Amend. 2
ECONOMIQUE August 9, 1947
ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Revision to the Programme of
Charter Discussions.
It is suggested that a meeting of Commission A should
be held (concurrently with the Tariff Agreemnt Committee)
Tuesday, August 12th at 1O.30 to conclude the discussion
c! the Technical Articles
DEUXIEME SESSION DE LA COMMISSION PREPARATOIRE DE DE LA
CONFERENCE DU COMMERCE ET DE L'EMPLOI DE L'ORGANISATION
DES NATIONIS UNIES
Modification au programme des
deliberations relatives à la Charte.
Le Secretariat propose que la ommission A tienne
stance (en même temps que le Comité charge de l'examen de
l'Accord tarifaire) le mardi 12 août, à 10 h. 30, pour
achever la discussion des Articles techniques.
ORIGINAL: ENGLISH |
GATT Library | dv297fm6537 | Rollback : Communication | The Uruguay Round Surveillance Body, [ca. 1947 - 1994] | Multilateral Trade Negotiations (Uruguay Round : 1986 - 1994) and Surveillance Body | NaT | official documents | RBC/, L/6111/ADD.13/CORR.1, TBT/28, L/6222, ADP/W/156=SCM/W/143, TBT/N.87.149-151, L/5640/ADD.14/REV.2, LIC/13/CORR.1, RBC, L/6219, LIC/M/19, L/5640/ADD.26/REV.2, L/5640/ADD.18/REV.1, L/5640/ADD.40/SUPPL.1, TBT/N.87.152-154, and BOP/W /108 | https://exhibits.stanford.edu/gatt/catalog/dv297fm6537 | dv297fm6537_91310077.xml | GATT_151 | 103 | 774 | RESTRICTED
RBC/
Special Distribution
The Uruguay Round
Surveillance Body
ROLLBACK
Communication
The following communication is circulated in accordance with
paragraph 4 of the agreed procedures for the surveillance mechanism
(MTN.TNC/2, Annex).
GATT SECRETARIAT
87-1513
1. Communication from: to:
2. Participant maintaining the measure:
3. Description of the measure (including date of entry into force and
reference to any relevant legislation or other document): RBC/
Page 2
4. Products covered, including tariff headings (CCCN where applicable,
otherwise national tariff lines):
5. Country or countries to which the measure applies:
6. Grounds for belief that the measure should be subject to the rollback
commitment:
~~~~~ |
GATT Library | wb001fn3659 | Rules of procedure | United Nations Conference on Trade and Employment, November 26, 1947 | 26/11/1947 | official documents | E/CONF.2/2/Rev.4 and E/CONF.2/1-8 | https://exhibits.stanford.edu/gatt/catalog/wb001fn3659 | wb001fn3659_90040009.xml | GATT_151 | 2,339 | 14,856 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF. 2/2/Rev.4
ON DU 26 November 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
RULES OF PROCEDURE
CHAPTER I - AGENDA
Rule 1
The Conference may amend the agenda at any time or give priority to
certain items.
CHAPTER II - REPRESENTATION AND CREDENTIALS
Representatives shall be duly accredited and may be accompanied by
as many alternate representatives, advisers, experts and persons of
status as may be required.
Rule 3
The credentials of representatives and the names of other members of
delegations shal l be submitted to the Executive Secretary without delay.
The credentials may take the form of a document signed by the Head of the
state or of a note issued by the Minister of Foreign Affairs or the
principal resident representative to the United Nations.
Rule 4
An alternate representative may at any time act as a representative
provided that the chairman of the delegation in question has given written
notice to that effect to the Executlve Secretary.
Rule 5
A Credentials Committee shall be appointed as soon as possible after
the commencement of the Conference. It shall consist of nine members who
shall be appointed
by the Conference upon the proposal of the President.
The Committee shall examine the credentials of representatives and report
to the Conference upon them without delay.
Rule 6
Pending the decision of the Conference upon the report of the
Credentials committee all representatives shall be entitled provisionally
to take their seats in the Conference.
CHAPTER III- OFFICERS
Rule7
The Conference shall elect a president and seven Vice-Presigent from
the chairman of the delegations. The Vice-Presidents shall be elected on
the basis of ensuring the representative character of the General Committee.
/RULE 8 E/CONF.2/2/Rev.4
Page 2
Rule 8
If the President Is absent from or is not presiding at a meeting or
any part thereof, a Vice-President nominated by him shall preside.
Rule 9
If the President ceases to be a representative of a delegation or is
so incapacitated that he can no longer hold office, a new President shall
be elected.
Rule 10
A Vice-President acting as President shall have the same powers and
duties as the President.
Rule 11
The President or a Vice-President when acting as President shall
participate in the proceedings of the Conference as such and not as a
representative of a delegation.
CHAPTER IV - GENERA.L COMMITTEE
Rule 12
There shall be a General Committee of eighteen members, no two of whom
shall be drawn from the same delegation, and which shall be so constituted
as to ensure its representative character. It shall comprise the President
of the Conference, the Vice-Presidents, the chairmen of the principal
committees of the Conference and the requisite number of other members elected
by the Conference. The President of the Conference or a Vice-President
appointed by him shall serve as Chairman of the General Committee.
Rule 13
If a member of the General Committee other than the chairmen of the
principal committees finds it necessary to be absent during a meeting of
the Committee, he may designate a member of his delegation as his substitute.
A Chairman of a Committee shall, in case of absence, be represented by the
Vice-Chairman of that Committee. A Vice-Chairman shall not have the right
to vote if he is a member of the same delegation as another member of the
General Committee.
Rule 14
The General Committee shall assist the President in the general conduct
of the business of the Conference and in the co-ordination of the work of
the committees.
CHAPTER V- SECRETARIAT
Rule 15
The Executive Secretary shall act in that capacity at all meetings.
He may appoint another member of the Staff to take his place at any meeting.
/Rule 16 E/CONF.2/2/Rev.4
Page 3
Rule 16
The Executive Secretary shall provide and direct such staff as is
required by the Conference, shall be responsible for making all necessary
arrangements for meetings and generally shall perform all other work which the conference may require.
Rule 17
The Executive Secretary or his deputy may at any time with the consent
of the President or the chairman of the body concerned make oral or written
statements concerning any question under consideration.
CHAPTER VI - CONDUCT OF BUSINESS
A quorum shall be constituted by a majority of the delegations to the
Rule 19
In addition to exercising the powers conferred upon him elsewhere by 14
these rules,the President shall declare the opening and closing of each
plenary meeting of the Conference, and at such meetings shall direct the
discussions, accord the right to speak, put questions to the vote, announce
decisions, rule on points of order and, subject to these rules of procedure,
have complete control of the proceedings. The President may also call a
speaker to order if his remarks are not relevant to the subject under
discussion.
of order. In this case the President shall immediately state his ruling.
If his ruling is challenged, the President shall immediately submit it to
the Conference for decision it stand unless over-ruled.
Rule 21
During the discussion of any matter a representative may move the
adjournment of the debate. Any such motion shall have priority. In addition
to the Proposer of the motion, one representatives may be allowed to speak.
in favour of and two representatives against the motion.
A representative may at any time move the closure of the debate whether
or not any other representative has signified his wish to speak. In addition
to the mover of the motion, not more than one representative may be granted
permission to speak in favour of the motion and not more than two
representatives may be granted permission to speak against the motion, after
which the motion shall be put to the vote immediately.
/Rule 23&'4 .: , P;s.:.... t L< .44 ~tk .<,; E/CONF. 2/2/Rev. 4
Page 4
Rule 23
During the course of a debate the President may annonunce the list of
speakers and, with the consent of the Conference, declare the list closed.
He may, however, accord a right of reply to any representative if a speech
delivered after he has declared the list closed makes this desirable.
Rule 24
The Conference may limit the time allowed to each speaker.
Rule 25
Proposals and amendments shall normally be introduced in writing and
handed to the Executive Secretary who shall circulate copies to all
representatives. No such proposal shall be discussed or put to the vote at
any meeting unless copies of it have been circulated to all representatives
not later than twelve hours before the commencement of the meeting. This
requirement may be waived by the Conference.
Rule 26
If two or more proposals are moved relating to the same questions the
Conference shall first vote on the most far-reaching proposal and then on
the next moat far-reaching proposal and so on. The Conference shall, after
each vote, decide whether or not it wishes to vote on the next proposal. The
most far-reaching proposal means the proposal the adoption of which would
result in the greatest change from the existing situation.
Rule 27
When an amendment is moved to a proposal, the amendment shall be put
to the vote first, and if it is adopted, the amended proposal shall then be
put to the vote.
Rule 28
When two or more amendments are moved to a proposal, the Conference shall
vote first on the amendment furthest removed in substance from the original
proposal, then, if necessary, on the amendment next furthest removed, and so
on until all the amendments have been put to the vote.
Rule 29
The Conference may, upon the suggestion of the President or a
representative, decide to put a proposal or resolution to the vote in parts.
If this is done, the text resulting from the series of votes shall be put to
the vote as a whole. .
CHAPER VII- VOTlNG
[Rule 30
Decisions of the Conference shall be made by a majority of the Members
Rules 30 to, 33 inclusive have not been adopted and will be further considered.
/of the United Nations E/CONF.2/2/Rev. 4
Page 5
of the United Nations present and voting
Rule 31
For the purposes of these rules the phrase "Members present and voting"
means Members casting an affirmative or negative vote. Members which abstain
from voting shall be considered as not voting.
The Conference shall normally vote by show of hand or by standing. If
any representative requests a roll call, a roll call shall be taken in the
English alphabetical order of the names of the Members.
Rule 33
After the President has announoed the beginning of a vote, no
representative shall interrupt the vote except on a point of order in
connection with the actual conduct of the vote.]
Rule 34 Alll electlons shall be decided by secret ballot.
Rule 35
If , when only one person or state is to be elected, no cadidate obtalns
in the first ballot a majority, a second ballot shall be taken, confined to
the two candidate obtaining the largest number of votes. If in the second
ballot the votes are equally divided, the President shall decide between the
candidates by drawing lots.
Rule 36
When two or more elective places are to be filled at one time under the
same conditions, those candidates obtaining in the first ballot a majority
shall be elected. If the number of candidates obtaining such majority is
less than the number of persons or states to be elected, there shall be
additional ballots to fill the remaining places, the voting being restricted
to the candidates obtaining the greatest number of votes in the previous
ballot, the number of the candidates being not more than twice as many as
the places remaining to be filled.
Rule 37 . .
If a vote Is equally divided upon matters other than elections, a second
vote shall be taken at the next meeting. If this vote also results in
equality, the proposal shall be regarded as rejected.
CHAPTER VIII - LANGUAGES
Chinese, English, French, Russlan and Spanish shall be the official
languages of the Conference. English and French shall be the working Languages
Rules 30 to 33 inclusive have not been adopted and will be further considered.
/Rul e 39 Page 6
Speeches made in either of the working languages shall be interpreted
into the other working language.
Rule 4
Speeches made in any of the other three official languages shall be
interpreted into both working languages.
Rule 41
Any representative may make a speech in a language other than the
official languages In this case he shall himself provide for interpretation
into one of the working languages. Interpretation into the other working
language by an interpreter of the Secretariat may be based on the
interpretation given in the first working language.
CHAPTER IX - RECORDS
Rule 42
Verbatim records of the plenary meetings of the Conerence and of the
meetings of its principal committees in the working languages shall be kept
by the Secretariat.
Summary records of the plenary meetings of the Conference and of the
meetings of its principal committees in the working languages shall be kept by
the Secretariat. They shall be sent as soon as possible to all representatives
who shall inform the Secretariat not later than twenty-four hours after the
circulation of the summary record of any changes they wish to have made.
Rule 44
Sub-committees may decide upon the form of their records.
CHAPTER X - PUBLICITY OF MEETINGS
Rule 45
The plenary meetings of the Conference and the meetings of its
Committees shall be held in public or private as. the body concerned may at
any time decide.
Rule 46
The meetings of sub-committees shall be held in private.
At the close of any private meeting the chairman, subject to the
concurrence of the body concerned, may issue a communique to the press through
the Executive Secretary.
CHAPTER XI - COMMITTEES AND SUB-COMMITTEES
Such committees and sub-committees as may be necessary for the
performance of the functions of the Conference may be established.
/Rule 49 E/CONF.2/2 Rev. 4
Page 7
Rule 49
Each committee and sub-committee shall elect its own officers.
Rule 50
A chairman of a committee or a vice-chairman when acting as chairman
shall participate in the proceedings of the committee as such and not as
a representative of a delegation.
The provisions of rules 19 to 37 shall be applied in the proceedings
of committees and sub-committees.
Rule 52
A majority of the representatives upon a committee or sub-committee shall
constitute a quorum.
Committees and sub-committees may, by agreement, decide to adopt rules
of procedure regarding interpretations or translations of a more simple
Character then those laid down in these rules.
Rule 54
It is recommended that proposals and amendments to the Charter shall
be handed in writing to the Executive Secretary up to Saturday, 6 December.
Meetings of different committees and sub-committees will be held so
as to allow members to partioipate in the debates they are interested and
have expressed their written desire to do it.
Results of discussions and eventual voting on proposals or amendments
to the Charter in committees and sub-committees have to be reported to the
plenary meetings of the Conference, i.e., mentioning the accepted and rejects
proposals or amendments.
Members have the right to reopen debate in plenary meetings on proposals
or amendments rejected by committees and sub-committees.
CHAPTER XII PARTICIPATION OF THE SPECIALIZED AGENCIES
AND NON-GOVERNMENTAL ORGANIZATIONS
Rule 55
Representatives of the specialized agencies may participate without
vote in the work of the Conference in accordance with the agreements of
relationship concluded between them and the Economic and Social Council.
Rule 56
The Conference shall accord to non-governmental organizations approved
by the Economic and Social Council the same rights and privileges as are
accorded to them by the Council itself.
CHAPTER XIII AMENDMENTS
Rule 57
These Rules of Procedure may be amended by a decision of the Conference
after a committee has reported on the proposed amendment. |
|
GATT Library | hg619sg0554 | Rules of Procedure Drafting Committee of the Preparatory Committee of the International Conference on Trade and Employment | United Nations Economic and Social Council, January 20, 1947 | United Nations. Economic and Social Council | 20/01/1947 | official documents | E/PC/T/C.6/3 and E/PC/T/C.6/1-20 | https://exhibits.stanford.edu/gatt/catalog/hg619sg0554 | hg619sg0554_90230026.xml | GATT_151 | 209 | 1,404 | United Nations
Nations Unies
RESTRICTED
ECONOMIC CONSEIL E/PC/T/C.6/3
AND ECONOMIQUE 20 January 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
RULES OF PROCEDURE
DRAFTING COMMITTEE OF THE PREPARATORY COMMITTEE OF THE
INTERNATIONAL CONFERENCE ON TRADE AND EMPLOYMENT
1. It is suggested that the Drafting Committee be guided by the Rules
of Procedure which were adopted by the Preparatory Committed at the First
Session insofar as these Rules are applicable to the present Meeting.
The text of these Rules is to be found as Annexure 4 (page 45) of the
Report of the Preparatory Committee.
2. In view of the restricted composition of the Delegations to the
Drafting Committee, the provisions of Rule 57 should be waived. A
Chairman or Vice-Chairman will then be enabled to participate in the
meetings both as such and as the representative of a Member.
3. It is also suggested that the provisions of Rule 49 be waived, as
the Drafting Committee is purely a working body and it should not be
necessary to keep verbatim reports of the proceedings.
4. Attention is drawn to the provisions of Rule 61. Should it be
possible to simplify the rules as regards interpreters or translators
on certain occasions, the work of the Drafting Committee may be
substantially expedited. |
GATT Library | wh430nx2360 | Rules of procedure United States: proposal regarding rule 30 | United Nations Conference on Trade and Employment, November 27, 1947 | 27/11/1947 | official documents | E/CONF.2/W.11, E/CONF.2/W/1-15, E/CONF.2/BUR.1-39, and E/CONF.2/BUR/W.1 | https://exhibits.stanford.edu/gatt/catalog/wh430nx2360 | wh430nx2360_90180158.xml | GATT_151 | 167 | 1,218 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/7 November 1947
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
RULES OF PROCEDURE
UNITED STATES: PROPOSAL REGARDING RULE 30
The Ad Hoc Committee recommends to the Committee of the Heads of
Delegations that it recommend to the Plenary Session of the Conference
that the Conference adopt a resolution along the following lines at the
same time that it adopts the Rules of Procedure.
"WHEREAS it is the view of this Conference that all the countries
represented herein should be given the fullest opportunities of
participation compatible with the decisions of the United Nations
in calling the Conference,
IT IS RESOLVED that the decisions of the Plenary Sessions, Committees
and Sub-Committees of this Conference shall be arrived at, so far as
possible, without resort to voting.
IT IS FURTHER RESOLVED that the Chairmen of the Plenary Sessions,
Committees and Sub-Committees shall be guided by this policy in their
administration of Chapter VII of the Rules of Procedure." |
|
GATT Library | gm792zy3415 | Schedule of Future Meetings Monday, 29 September 1947 | United Nations Economic and Social Council, September 27, 1947 | United Nations. Economic and Social Council and Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment | 27/09/1947 | official documents | E/PC/T/INF/294 and E/PC/T/INF/272-330 | https://exhibits.stanford.edu/gatt/catalog/gm792zy3415 | gm792zy3415_90200730.xml | GATT_151 | 132 | 944 | UNITED NATIONS
ECONOMIC
AND
SOCIAL COUNCIL
NATIONS UNIES
CONSEIL
UNRESTRICTED
E/PC/T/INF/294
27 September 1947
ECONOMIQUE
ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
Schedule of Future Meetings
Monday, 29 September 1947.
Secretaries of Delegations
10.30
Room VIII
To discuss questions arising in connection with
documents E/PC/F/210, E/PC/T/210 Add. 1, Rev. 1 and
E/PC/T/210 Add.1 Rev. 1. Corr. 1, and other matters
reisting to the transtation and production of tariff
Schedules.
Legal Drafting Committee
2.30
Room 216
To examine documents E/PC/T/214 and E/PC/T/214
Add, 1 and Add. 2 in the light of corrections received
by the Secretariat by noon Monday.
Wednesday,1l October 1947.
Tariff Negotiations Working Party
10.30
Room 218
Note:
No interpretation or verbatim records will be available
for any of these meetings. |
GATT Library | xw209gx7988 | Second Commitee: Economic Development. Sub-Committee A. Meeting of Sub-Committee on article 8 : Note by the Secretariat | United Nations Conference on Trade and Employment, December 8, 1947 | 08/12/1947 | official documents | E/CONF.2/C.2/A/1 and E/CONF.2/C.2/50 C.2/A/1-3 C.2/B/1-6 C.2/D/1-3 C.2/D/1-3 | https://exhibits.stanford.edu/gatt/catalog/xw209gx7988 | xw209gx7988_90040251.xml | GATT_151 | 426 | 2,913 | United Nations Nations Unies RESTRICTED
CONFERENCE CONFERENCE E/CONF.2/C.2/A/1
ON DU 8 December 1947
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOl ORIGINAL: ENGLISH
SECOND COMMITEE:ECONOMIC DEVELOPMENT
MEETING OF SUB-COMMITTEE ON ARTICLE 8
Note by the Secretariat
1. The Sub-coummittee on Article 8 established by Committee II at its
fifth meeting (document E/CONF.2/C.2/SR.5) consisting of the delegates
of Australia, China and the United Kingdom met at 3.00 p.m. on
8 December 1947. The following persons represented the Australian, Chineso
and United Kingdom delegations on the Sub-Committee: Mr. Morton, Mr. Lieu
and Mr. Shaokle. Mr. Lieu of China was elected Chairmen. In addition
Miss N. K. Fisher (United Kingdom) and Mr. C. L. Hewitt (Australia) were
present.
2. In addition to the Members of the Sub-Committee the following
representatives of other delegations were present:
Pakistan - Mr. M. H. Gazdar
United States - Mr. Hubert Havlik
Sweden - Mr. H. V. Heidenstam
Belgium - Mr. M. Muller
New Zealand - Mr. H. Thomas
Afghanistan - Mr. A. H. Aziz
3. The Sub-Committee had before it the following suggestions* as to the
commencement of Articlel 8:
(a) The Members recognize that [all countries have a comMon
interest in] the productive use of the world's human and material
resources will redound to the benefit of all countries and, as
such is of common concern to them all and that the indUstrial and
general ....
(b) Tha Members recognize that all countries hare a Common
[interest] concern in the productive use of the world's human
and material resources and that the industrial and general ..........
(c) The Members recognize that all countries [have a common interest
in] benefit by the productive use of the world's human and material
resources and that the industrial and general. .... ...
*[ ]= delete =add /(d) The Members E/CONF.2/C.2/A/1Page 2
(d) The Members recognize that [all coountries have a common
interest in the productive use of the world's human and material
resources] that it in the interests of all countries that the
world's human and material resources should be productively used,
and that the industrial and general....
4. It was agreed to suggetion (a) subject to further consideration
by the Chinese delegation as to whether they desired to have a reference
to "common concern" included in the Article. It was argeed that if the
Chinese delegation objected to the words "common concern" the words "and,
as such is of common concern to them all' should be deleted,
5. it Was agreed that Mr. Shackle (united) should report to the
Committee on the conclusions of the Sub-Committee. |
|
GATT Library | pg988zh3356 | Second Committe: Economic Development. Agenda for Eighth Meeting : To be held on Tuesday, 16 December 1947, at 4 p.m | United Nations Conference on Trade and Employment, December 13, 1947 | 13/12/1947 | official documents | E/CONF.2/C.2/15 and E/CONF.2/C.2/9-28 | https://exhibits.stanford.edu/gatt/catalog/pg988zh3356 | pg988zh3356_90040207.xml | GATT_151 | 243 | 1,684 | United Nations Nations Unies
CONFERENCE CONFERENCE
ON DU E/CONF.2/C.2/15
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 13 December
ORIGINAL: ENGLISH
SECOND COMMITTEE; ECONOMIC DEVELOPMENT
AGENDA FOR EIGHTH MEETING
To be held on Tuesday, 16 December 1947, at 4 p.m.
1. Additional paragraph proposed by Chile to follow present paragraph 3
of Article 12 at bottom of page 20 and top of page 21 of revised
agenda. (E/CONF. 2/C. 2/9)
2. Additional paragraph proposed by Costs Rice to follow present paragraph
3 of Article 12 (page 21 of E/CONF.2/C.2/9).
3. Article 11, paragraph 1, first sentence: amendments proposed by Italy,
Chile and Uruguay (page 5 of E/CONF.2/C.2/9).
4. Article 11, paragraph 1, second sentence: amendment proposed by Mexico
(page 6 of E/CONF.2/C.2/9).
5. New Article 11 A proposed by Chile (pages 12 and 13 of E/CONF.2/C.2/9).
6. Additions to paragraph 2 of Article 10 (page 3 of E/CONF.2/C.2/9) and
to paragraph 1 of Article 11 (pages 6 and 7 of E/CONF.2/C.2/9) proposed
respectively by Turkey and China. (See also E/CONF.2/C.2/11).
7. Article 11, paragraph 2: smendments proposed by Burma, Norway, Ohile
and Mexico (pages 8 and 9 of E/CONF.2/C.2/9).
8. Article 11, paragraph 3: amendments proposed by Mexico and Afghanistan
(pages 9 and 10 of E/CONF.2/C.2/9).
9. Article 11, additional paragraph proposed by Peru (pages 10 and 11of
E/CONF.2/C.2/9).
10. Article 11, paragraph 4: amendment proposed by Mexico (page 11 of
E/CONF.2/C.2/9) .
11. Article 15 (pages 61, 64 of E/CONF.2/C.2/9). (See also E/CONF.2/C.2/14). |
|
GATT Library | kd562tn9268 | Second Committe: Economic Development. Draft charter. Philippines: Proposed amendments | United Nations Conference on Trade and Employment, December 6, 1947 | 06/12/1947 | official documents | E/CONF.2/C.2/6/Add.12 and E/CONF.2/C.2/1-8 | https://exhibits.stanford.edu/gatt/catalog/kd562tn9268 | kd562tn9268_90040175.xml | GATT_151 | 509 | 3,445 | United Nations Nations Unies UNRESTRICTED
CONFERENCE CONFERENCE E/CONF. 2/C.2/6/
ON DU Add. 12
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI 6 December 1947
ORIGINAL; ENGLISH
SECOND COMMITTE: ECONOMIC DEVELOPMENT
DRAFT CHARTER
PHILIPPINES: PROPOSED AMENDMENTS
Article 13
(a) Insert the word "or" between the words "establishment" and
"development" in the third line of paragraph 1.
(b) Delete the words "or reconstruction" appearing in the third and
fourth lines of paragraph 1.
(c) Delete the words "or reconstruction" appearing in the second
and third lines of paragraph 2 (a).
(d) Delete the words "and its stage of economic development or
reconstruction" appearing in the seventh and eighth lines of
paragraph 2 (c).
(e) Delets the words "and to the current economic condition of
the applicant Member" appearing in the eleventh and twelfth lines
of paragraph 4 (b).
(f) Delete the words "or reconstruction" appearing in the twelfth
line of paragraph 4 (c) and insert the word "or" between the words
"establishment" and "development" appearing in the eleventh line of
paragraph 4 (c).
Mention of reconstruction is proposed to be omitted because it is
believed this subject would be more adequately covered by the proposed
amendment to Article 14.
Article 14
(a) Insert the following paragraphs 1 and 2 immediately after the
sub-heading of Article 14 - Transitional Measures:
"1. In order to assist in the speedy development of productive
facilities in undeveloped or underdeveloped countries, and for
the purpose of restoring the economies which were destroyed or
disrupted by the war, any Member shall be given general authority
to adopt any non-discrimatory measure which would confliot with
any provision of Chapter IV for such period as the Organization
shall fix in accordance with the procedure outlined in pargraph 2
hereof."
/"2. Such Member E/CONF.2/C.2/6/Add. 12
Page 2
"2. Such Member shall, before the expiration of one year
after the entry into force of this Charter, or within one
year after its adherence thereto, if adherence was registered
after the entry into force of the Charter, file an application
with the Organization and state its desire to take advantage of
the provisions of the preceding paragraph, the considerations
in support of its application, and the period of time it would
likely need for the purpose. If the Organization, after an
examination of the application and such other pertinent
information as it may require, shall determine that the applicant
in an undordeveloped and/or a war-devastated country, it shall,
within sixty days after the submission of the application or
after the submission of the last document required by the
Organization, grant the general authority sought, fixing in
such authority the period which, in the opinion of the Organization,
may be needed by the applicant, taking into account the degree of
its underdevelopment and/or devastation."
(b) Re-number the present paragraphs 1, 2 and 3 of Article,14 as
paragraph 3, 4 and 5, respectively.
The purpose of the foregoing proposed amendments is to permit the
underdeveloped or devastated countries to have a sufficient transition
period within which to attain speedy development or reconstruction of
their industries. |
|
GATT Library | fg805yz9311 | Second Committee: Agenda of Fifth Meeting : To be held on Friday, 5 December 1947, at 4:00 p.m | United Nations Conference on Trade and Employment, December 4, 1947 | 04/12/1947 | official documents | E/CONF.2/C.2/7 and E/CONF.2/C.2/1-8 | https://exhibits.stanford.edu/gatt/catalog/fg805yz9311 | fg805yz9311_90040188.xml | GATT_152 | 0 | 0 | ||
GATT Library | vz170rq0066 | Second Committee: Agenda of Fifth Meeting : To be held on Friday, 5 December 1947, at 4:00 p.m | United Nations Conference on Trade and Employment, December 4, 1947 | 04/12/1947 | official documents | E/CONF.2/C.2/7 and E/CONF.2/C.2/1-8 | https://exhibits.stanford.edu/gatt/catalog/vz170rq0066 | vz170rq0066_90040188.xml | GATT_152 | 77 | 499 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E/CONF.2/C.2/7
4 December 1947
ENGLISH: - FRENCH
SECOND COMMITTEE: AGENDA OF FIFTH MEETING
To be held on Friday, 5 December 1947, at 4:00 p.m.
Examination of Chapter III article by article
DEUXIEME COMMISSION : ORDRE DU JOUR DE LA CINQUIEME SEANCE
qui se tiendra le vendredi 5 décembre 1947 à 16 houres.
Examen du chapitre III portant séparément sur chaque article. |
|
GATT Library | wy137kp2155 | Second Committee: Agenda of Fourth Meeting : To be held on Wednesday, 3 December 1947, at 4:00 p.m | United Nations Conference on Trade and Employment, December 2, 1947 | 02/12/1947 | official documents | E/CONF.2/C.2/5 and E/CONF.2/C.2/1-8 | https://exhibits.stanford.edu/gatt/catalog/wy137kp2155 | wy137kp2155_90040158.xml | GATT_152 | 79 | 516 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies UNRESTRICTED
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
E/CONF. 2/C.2/5
2 December 1947
ENGLISH- FRENCH
ORIGINAL: ENGLISH
SECOND COMMITTEE: AGENDA OF FOURTH MEETING
To be held on Wednesday, 3 December 1947, at 4:00 pm.
Examinatlon of Chapter Ill article by article.
DEUXIEME COMMISSION : ORDRE DU JOUR DE LA QUATRIEME SEANCE
Qui se tiendra le mercredi 3 decembre 1947, à 16 h.
Examen du Chapitre III portant sTparTment sur chaque article. |
|
GATT Library | tm501yd8480 | Second Committee: Agenda of Third Meeting : To be held on Monday, 1 December 1947, at 10:30 a.m | United Nations Conference on Trade and Employment, November 29, 1947 | 29/11/1947 | official documents | E/CONF.2/C.2/1 and E/CONF.2/C.2/1-8 | https://exhibits.stanford.edu/gatt/catalog/tm501yd8480 | tm501yd8480_90040153.xml | GATT_152 | 57 | 383 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E/CONF.2/C .2/1
29 November 1947
ORIGINAL: ENGLISH
SECOND COMMITTEE: AGENDA OF THIRD MEETING
To be held on Monday, 1 December 1947, at 10:30 a.m.
1. General discussion on Chapter III of draft Charter
2. Examination of Chapter III article by article. |
|
GATT Library | md564gm0488 | Second Committee: Economic Development : Addenda and Corrigenda to the revised annotated agenda prepared by the Secretariat for the discussion of chapter III of the draft charter. (document E/CONF.2/C.2/9) | United Nations Conference on Trade and Employment, December 19, 1947 | 19/12/1947 | official documents | E/CONF.2/C.2/9/Add.4/Corr.3 and E/CONF.2/C.2/9-28 | https://exhibits.stanford.edu/gatt/catalog/md564gm0488 | md564gm0488_90040196.xml | GATT_152 | 872 | 6,216 | UNIRESTRICTED
United Nations Nations Unies E/CONF.2/C.2/9/
Add . 4/Corr .3
CONFERENCE CONFERENCE 19 December 1947
ON DU ORIGINAL: ENGLISH
TRADE AND EMPLOYMENT COMMERCE ET DE L'EMPLOI
SECOND COMMITTEE: ECONOMIC DEVELOPMENT
ADDENDA AND CORRIGENDA TO THE REVISED ANNOTATED AGENDA PREPARED BY THE
SECRETARIAT FOR THE DISCUSSION OF CHAPTER III OF THE DRAFT CHARTER
(Document E/CONF.2/C.2/9)
This supplement to the Revised Annotated Agenda includes all corrections
and additions made by governments up to and including 19 December 1947*
except the following:
Amendments proposed by Uruguay to Articles 13 and 14
(document :E/CONF.2/C.2/6/Add. 23)
Amendments proposed by Chile to Article 13
(documents E/CONF.2/C .2/9/Add.1 and E/CONF.2/C.2/9/Add.1/Corr.1)
Article 11
Paragraph 1. (page 6)
In the fourth line of the Chinese amendment insert the words
"and technology" after the words "modern equipment".
Paragraph 2. (page 9)
In the third line of sub-paragraph (c) of the Chilean amendment the
first word should read "interests" instead of "interest".
Additional. (page 10)
The additional paragraph proposed by Peru should be inserted between
present paragraphs 2 and 3 instead of paragraphs 3 and 4 as stated in the
present text.
Article 11.A
Paragraph 1. (page 12)
In the second line of the additional Article proposed by Chile the word
"powers" should read "power".
Article.12
Paragraph 1. (page 15)
This amendment presented by Venezuela should read "delete last sentence
as proposed by Czechoslovakia"
* The content of the following documents are incorporated in the
supplement: E/CONF. 2/C. 2/6/ Add.4/Corr.1, E/CONF. 2/C.2/6/.Add.18/Corr.1,
E/CONF.2/C.2/9/Corr.1., E/CONF.2/C.2/9/Add. 3.
/Paragraph 2. (page 17) Page 2
Paragraph 2. (page 17)
At the beginning of the explanation relating to the amendment submitted
by Argentina, the words "Preparatory Committee" should be deleted.
Paragraph 2 (a) (iii). (page 18)
The amendment submitted by the Pakistan delegation (E/CONF.2/C.2/6/Add.2)
should be inserted along those of Argentina and Sweden relating to the same
clause. This amendment should read:
"In the last sentence after the words 'satisfactory settlement'
insert the words 'if possible"'.
The explanation given by the Pakistan delegation is the following:
"the amendment is aimed to cover a case where a settlement is not reached."
Article 12 A
Title. (page 25)
The title of the additional Article proposed by Colombia should not
be underlined.
Article 13
All of the Article.
1. The delegation of Chile has submitted amendments which should be inserted
in Part C "Proposals affecting substantially the whole Article" of Article 13.
These amendments are contained in document (E/CONF.2/C.2/9/Add.1). Attention
is called to the corrigendum issued in this connection and numbered
E/CONF .2/C. 2/9/Add.1/Corr.1.
2. The amendments submitted by the Uruguayan delegation
(E/CONF.2/C.2/6/Add.23) after the publication of the Revised Annotated Agenda
should be inserted in Part C "Proposals affecting substantially the whole
Article". (page 35 and following).
Paragraph (a). (page 29)
The amendments proposed by the delegation of Turkey (E/CONF.2/11/Add.26)
and of Ecuador (E/CONF.2/C.2/9/Add.3) should appear not in Part A "Amendments
affecting specific paragraphs of the present draft" of the section dealing
with Article 13, but in Part C "Proposals affecting substantially the
whole Article."
The Turkish proposal states that "the remainder of the article"
following paragraph 2 (a) "should be amended similarly".
The Ecuadorian proposal is that "the principle underlying the amendment"
to paragraph 2 "is to allow Members freedom to take, at their own discretion,
such measures as in their Judgment are necessary and essential in order to
Give effect to the assistance referred to in paragraph 1 of Article 13. The
Organization is to intervene upon the request of any Member subsequent
to the adoption of such measure. The wording of all the other paragraphs of
/Article 13 requires E/CONF. 2/C.2/9/Add.4/Corr. 3
Page 3
Article 13 requires to be amended accordingly if the above principle is
accepted. The modification will be made in the appropriate Sub-Committee."
Paragraph 4 (b). (page 31)
The introductory sentence to the Cuban amendment should read "Add the
following to paragraph 4 (b)".
Article 14
All of the Article.
The Uruguayan delegation has submitted amendments to paragraphs 1 and 3
and proposes the deletion of paragraph 2 (E/CONF.2/C.2/6/Add.23).
Paragraph 2. (page 55)
In the amendment of the Philippines in line 9 replace the word
"consideration" by the word "considerations."
Document Symbols. (pagse 57, 58 and 59)
The document symbol in the title should read "E/CONF.2/" instead of
"E/CONF.2/11". Accordingly the document symbols referring to the individual
countries should read:
Costa Rica 11/Add.16
Argentina 11/Add.3
Article
Additional. (page 61)
The additional paragraph proposed by Chile (E/CONF.2/C.2/6/Add.4/Corr.1)
should read as follows: "The provisions of Article 16, paragraph 1, shall,
therefore, not apply to preferences between adjacent countries whose economic
and industrial development is insufficient or backward and which are or will
be parties to arrangements made to facilitate or accelerate their economic
or industrial development, permitting their economies to be complemented so
as to assure industralization plans which are of particular and reciprocal
interest to them and provide them with a sound and adequate market."
Paragraph 2. (page 63)
In the last line of the amendment proposed by Venezuela
(C.2/6/Add.18/Corr.1) the reference should be to Article 13 instead of to
Article 12.
Additional paragraph. (page 63)
The additional paragraph proposed by Turkey refers to Article 14 and not
to Article 15, and should, therefore, appear with the amendments referring
to Article 14 on pages 59-60. (E/CONF.2/C.2/9/Corr.1). |
|
GATT Library | wr286rs9664 | Second Committee: Economic Development : Addenda and Corrigenda to the revised annotated agenda prepared by the Secretariat for the discussion of chapter III of the draft charter. (document E/CONF.2/C.2/9) | United Nations Conference on Trade and Employment, December 19, 1947 | 19/12/1947 | official documents | E/CONF.2/C.2/9/Add.4/Corr.3 and E/CONF.2/C.2/9-28 | https://exhibits.stanford.edu/gatt/catalog/wr286rs9664 | wr286rs9664_90040196.xml | GATT_152 | 0 | 0 | ||
GATT Library | wt499by9773 | Second Committee: Economic Development : Addendum to revised annotated agenda prepared by the Secretariat for the discussion of chapter III of the draft charter. Peru: Proposed amendment | United Nations Conference on Trade and Employment, December 29, 1947 | 29/12/1947 | official documents | E/CONF.2/C.2/9/Add.5 and E/CONF.2/C.2/9-28 | https://exhibits.stanford.edu/gatt/catalog/wt499by9773 | wt499by9773_90040199.xml | GATT_152 | 129 | 906 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E/CONF .2/C.2/9/
Add. 5
29 December 1947
ORIGlNAL: ENGLISH
SECOND COMMITTEE: ECONOMIC DEVELOPMENT
ADDENDUM TO REVISED ANNOTATED AGENDA PREPARED BY THE SECRETARIAT
FOR THE DISCUSSION OF CHAPTER III OF THE DRAFT CHARTER
Peru: Proposed Amendment
Article 12 Paragraph 1
In line 14 insert the following sentence:
"They also recognize that such investment should be available
in reasonable terms for the receiving countries; that it should be
aimed at the promotion of production appropriate for these countries,
especially of that which increases their national income, and that it
should take into account the necessity of according a just, equitable
and non-discriminatory treatment to the personnel employed therein,
whose welfare should also be justly considered.." |
|
GATT Library | kc277bh6520 | Second Committee: Economic Development : Addendum to revised annotated agenda prepared by the Secretariat for the discussion of chapter III of the draft charter. Views of International Chamber of Commerce | United Nations Conference on Trade and Employment, December 11, 1947 | 11/12/1947 | official documents | E/CONF.2/C.2/9/Add.2 and E/CONF.2/C.2/9-28 | https://exhibits.stanford.edu/gatt/catalog/kc277bh6520 | kc277bh6520_90040194.xml | GATT_152 | 130 | 875 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies UNRESTRICTED
CONFERENCE E/CONF .2/C. 2/9/
11 December 1947
COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SECOND COMMITTEE: ECONOMIC DEVELOPMENT
ADDENDUM TO REVISED ANNOTATED AGENDA PREPARED BY THE SECRETARIAT
FOR THE DISCUSSION OF CHAPTER III OF THE DRAFT CHARTER
Views of International Chamber of Commerce
1. The International Chamber of Commerce in document E/CONF.2/8 has expressed
its views on the draft Charter. Particular reference to Chapter III is
contained in pages 8 and 9 of that document.
2. Suggestions by the International Chamber of Commerce regarding paragraph 2
(a) of Article 12 and the footnote to paragraph 2 of Article 12 in the draft
Charter, together with remarks on paragraph 4 (b) of Article 13 are contained
in page 1 of document E/CONF.2/14. |
|
GATT Library | vm656jd1372 | Second Committee: Economic Development. Agenda for Eleventh Meeting : To be held Saturday, 20 December 1947 at 4.00 p.m | United Nations Conference on Trade and Employment, December 19, 1947 | 19/12/1947 | official documents | E/CONF.2/C.2/18 and E/CONF.2/C.2/9-28 | https://exhibits.stanford.edu/gatt/catalog/vm656jd1372 | vm656jd1372_90040210.xml | GATT_152 | 89 | 685 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies UNRESTRICTED
CONFERENCE CONF.2/C.2/18
DU ENGLISH-FRENCH
COMMERCE ET DE L'EMPLOI ORIGINAL: ENGLISH
SECOND COMMITTEE: ECONOMIC DEVELOPMENT
AGENDA FOR ELEVENTH MEETING
To be hold Saturday, 20 December 1947 at 4.00 p.m.
1. Article 12: General discussion.
2. Article 12: Examination paragraph by paragraph.
DEUXIEME COMMISSION : DEVELOPPEMENT ECONOMIQUE
ORDRE DU JOUR DE IA ONZIEME SEANCE
qui so tiendra le samedi 20 décembre 1947, à 16 houres
1. Article 12 : discussion générale
2. Article 12 : examen de l'article paragraphe par paragraphe |
|
GATT Library | ws424zx5103 | Second Committee: Economic Development. Agenda for Fifteenth Meeting : To be held Tuesday, 30 December 1947, at 10.30 a.m | United Nations Conference on Trade and Employment, December 29, 1947 | 29/12/1947 | official documents | E/CONF.2/C.2/24 and E/CONF.2/C.2/9-28 | https://exhibits.stanford.edu/gatt/catalog/ws424zx5103 | ws424zx5103_90040216.xml | GATT_152 | 90 | 644 | United Nations CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
E/CONF.2/C.2/ 24
29 December 1947
ENGLISH - FRENCH
ORIGlNAL: ENGLISH
SECOND COMMTTEE: ECONOMIC DEVELOPMENT
AGENDA FOR FIFTEENTH MEETING
To be Held Tuesday, 30 December 1947, at 10.30 a.m.
1. Article 13: Examination of amendments (E/CONF.2/C.2/22).
2. Article 14: General discussion.
DEUXIEME COMMISSION: DEVELOPPEMENT ECONOMIQUE
ORDRE DU JOUR DE LA QUINZIEME SEANCE
qui. se tiendra le mardi 30 dTTcembre 1947àa 10 heures 30
1. Article 13 : Examen d'amendements (E/CONF.2/C.2/22)
2. Article 14 : Discussion TgTnrale. |
|
GATT Library | ng730wf7312 | Second Committee: Economic Development. Agenda for Fourteenth Meeting : To be held Monday, 29 December 1947, at 10.30 a.m | United Nations Conference on Trade and Employment, December 27, 1947 | 27/12/1947 | official documents | E/CONF.2/C.2/23 and E/CONF.2/C.2/9-28 | https://exhibits.stanford.edu/gatt/catalog/ng730wf7312 | ng730wf7312_90040215.xml | GATT_152 | 93 | 664 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E/CONF.2/C .2/23
27 December 1947
ENGLISH - FRENCH
ORIGINAL: ENGLISH
SECOND COMMITTEE: ECONOMIC DEVELOPMENT
AGENDA FOR FOURTEENTH MEETING
To be Held Monday, 29 December 1947, at 10.30 a.m.
1. Article 13: General discussion.
2. Article 13: Examination of amendments (E/CONF.2/C.2/22).
DEUXIEME COMMISSION : DEVELOPPMENT ECONOMIQUE
ORDRE DU JOUR DE LA QUATORZIEME SEANCE
qui se tiendra le lundi 29 dTcembre, à 10 h. 30
1. Article 13 : Discussion gTnTrale.
2. Article 13 : Examen des amendements (E/CONF.2/C.2/22). |
|
GATT Library | qm037pc0314 | Second Committee: Economic Development. Agenda for Ninth Meeting : To be held on Wednesday, 17 December 1947, at 10.30 a.m | United Nations Conference on Trade and Employment, December 16, 1947 | 16/12/1947 | official documents | E/CONF.2/C.2/16 and E/CONF.2/C.2/9-28 | https://exhibits.stanford.edu/gatt/catalog/qm037pc0314 | qm037pc0314_90040208.xml | GATT_152 | 144 | 955 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
E/CONF.2/C. 2/16
16 December 1947
ENGLISH - FRENCH
ORIGINAL: ENGLISH
SECOND COMMITTEE: ECONOMIC DEVELOPMENT
AGENDA FOR NINTHY MEETING
To be held on Wednesday, 17 December 1947, at 10.30 a.m.
1. Report of Sub-Committee A on Article 8 (See E/CONF.2/C.2/A.3)
2. Article 15 (pages 61 to 64 of E/CONF.2/C.2/9)
3. Article 12: general discussion. (E/CONF.2/C.2/9 pages 13 to 24)
4. Article 12: examination paragraph by paragraph.
DEUXIEME, COMMISSION : DEVELOPPEMENT ECONOMIQUE
ORDRE DU JOUR DE LA NEUVIEME SEANCE
qui sera tenue le mercredi 17 décembre 1947, à 10 heures 30.
1. Rapport de la Sous-Commission A sur l'article 8 (Voir E/CONF.2/C.2/A.3)
2. Article 15 (pages 53 et 56 du document E/CONF.2/C.2/9)
3. Article 12 : discussion générale (E/CONF.2/C.2/9 pages 12 à 26)
4. Article 12 : examen paragraph par paragraphe. |
|
GATT Library | ts630ff0996 | Second Committee: Economic Development. Agenda for Seventh Meeting : To be held on Saturday 13 December 1947 at 10:30a.m | United Nations Conference on Trade and Employment, December 12, 1947 | 12/12/1947 | official documents | E/CONF.2/C.2/12 and E/CONF.2/C.2/9-28 | https://exhibits.stanford.edu/gatt/catalog/ts630ff0996 | ts630ff0996_90040204.xml | GATT_152 | 0 | 0 | ||
GATT Library | tp584qm9754 | Second Committee: Economic Development. Agenda for Seventh Meeting : To be held on Saturday 13 December 1947 at 10:30a.m | United Nations Conference on Trade and Employment, December 12, 1947 | 12/12/1947 | official documents | E/CONF.2/C.2/12 and E/CONF.2/C.2/9-28 | https://exhibits.stanford.edu/gatt/catalog/tp584qm9754 | tp584qm9754_90040204.xml | GATT_152 | 158 | 1,004 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE L'EMPLOI
UNRESTRICTED
E/CONF. 2/C.2/12
12 December 1947
ENGLISH - FRENCH
ORIGINAL: ENGLISH
SECOND COMMITTEE: ECONOMIC DEVELOPMENT
AGENDA FOR SEVENTH MEETING
To be held on Saturday 13 December 1947 at 10:30 a.m.
1. Continuation of discussion on new Article 12A proposed by Colombia
(pages 25-28 of revised annotated agenda - E/CONF.2/C.2/9).
2. Amendments proposed to Article 11 and new Article 11A proposed by Chile
(pages 5-13 of revised annotated agenda - E/CONF.2/C.2/9).
DEUXIEME COMMISSION : DEVELOPPEMENT ECONOMIQUE
ORDRE DU JOUR DE LA SEPTIEME SEANCE
qui se tiendra le samedi 13 décembre 1947, à 10 houres 30.
1. Suite de l'examen du nouvel article 12 A proposé par la Colombie
(pages 24 à 26 de l'ordre du Jour annoté - E/CONF.2/C.2/9).
2. Amendements à l'article 11 et nouvel article 11 A proposé par le Chili
(pages 5 à 11 de l'ordre du jour annoté - E/CONF.2/C.2/9). |
|
GATT Library | tw907sc4624 | Second Committee: Economic Development. Agenda for Sixteenth Meeting : To be held Wednesday, 31 December 1947 at 10.30 a.m | United Nations Conference on Trade and Employment, December 30, 1947 | 30/12/1947 | official documents | E/CONF.2/C.2/26 and E/CONF.2/C.2/9-28 | https://exhibits.stanford.edu/gatt/catalog/tw907sc4624 | tw907sc4624_90040218.xml | GATT_152 | 75 | 586 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
UNRESTRICTED
Nations Unies E/CONF.2/C .2/26
CONFERENCE 30 December 1947
CONFERENCE ENGLIS-FRENCH
DU ORIGINAL: ENGLISH
COMMERCE ET DE L'EMPLOI
SECOND COMMITTEE: ECONOMIC DEVELOPMENT
AGENDA FOR SIXTEENTH MEETING
To be Held Wednesday, 31 December 1947 at 10.30 a.m.
Article 14: Continuation of discussion
DEUXIEME COMMISSION : DEVELOPPEMENT ECONOMIQUE
DIX-SEPTIEME SEANCE
Qui se tiendra le mercredi 31 dTTcembre 1947,àa 10 h. 30
ORDRE DU JOUR
Article 14: suite de la discussion. |
|
GATT Library | nf072yt8448 | Second Committee: Economic Development. Agenda for Tenth Meeting : To be held Thursday, 18 December 1947 at 4.00 p.m | United Nations Conference on Trade and Employment, December 17, 1947 | 17/12/1947 | official documents | E/CONF.2/C.2/17 and E/CONF.2/C.2/9-28 | https://exhibits.stanford.edu/gatt/catalog/nf072yt8448 | nf072yt8448_90040209.xml | GATT_152 | 110 | 733 | United Nations
CONFERENCE
ON
TRADE AND EMPLOYMENT
Nations Unies
CONFERENCE
DU
COMMERCE ET DE
E/CONF. 2/C. 2/17
17 December 1947
L'EMPLOI ENGLISH - FRENCH
ORIGINAL : ENGLISH
SECOND COMMITTEE: ECONOMIC DEVELOPMENT
AGENDA FOR TENTH MEETING
To be Held Thursday, 18 December 1947 at 4.00 p.m.
1. Continuation of discussion of Article 15
2. Article 12: general discussion
3. Article 12: examination paragraph by paragraph.
DEUXIEME COMMISSION : DEVELOPPEMENT ECONOMIQUE
ORDRE DU JOUR DE IA DIXIEME SEANCE
qui se tiendra le jeudi 18 décembre 1947, à 16 houres
1. Suite de la discussion de l'article 15.
2. Article 12 : discussion générale.
3. Article 12: examen de I'article, paragraphe par paragraphe. |
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